Transcript Business Process Reengineering

Business Process Reengineering
Raymond Yap
Principal Consultant
Hutex Management
Consulting
http://www.hutex.com
Business Process Reengineering
“The FUNDAMENTAL rethinking and RADICAL
redesign of business PROCESSES to bring
about DRAMATIC improvements in critical,
contemporary measures of performance, such
as cost, quality, service and speed.”
-Hammer, Champy (1993)
Process: Where and Who?
CUSTOMER
PRODUCT/SERVICE
NEED
What is NOT Business Process
Reengineering






TQM
ISO9000
Automation
Downsizing
Restructuring
Change Management
Why BRP?




Do or Die
Minimize threat from rival firms
Attain sustainable competitive advantage
Leverage on unprecedented opportunity to
take giant leap forward
Some of the BPR Objectives






Improve Efficiency e.g reduce time to market,
provide quicker response to customers
Increase Effectiveness e.g deliver higher
quality
Achieve Cost Saving in the longer run
Provide more Meaningful work for employees
Increase Flexibility and Adaptability to
change
Enable new business Growth
Scope of BPR

Intra-functional
–

Inter-functional
–

Small scope within department, least impact
Horizontal view across departments, more impact
Inter-organizational
–
Broad view including entire supply & delivery chain,
most impact
4 Generic Steps in BPR




Create a Vision
Identify and understand Existing Processes
Redesign the processes
Implement the redesigned processes
Readiness Analysis



Is there a compelling business need for strategic
change?
Is the organization prepared to challenge it status quo?
Would it have the courage to create a new vision?
What’s the degree and quality of sponsorship and
commitment of senior management? Are they
prepared to be deeply involved? Do they have the
energy to follow through the entire change process?
Readiness Analysis



Is the organization prepared to commit resources (time,
energy, money) to undertake BPR project?
What is the overall organization’s attitude towards
change?
Is the organization prepared to overcome resistance to
change?
BPR Team Composition




Top management (e.g. CEO) as SPONSOR
Senior & middle management in EXECUTIVE
TEAM
Selected senior & junior mgmt/staff to form
PROCESS TEAMS
Enthusiastic and energetic individual as BPR
COORDINATOR
Case Example: Kodak

In 1987
–
–

Kodak’s Traditional Product Development
Process
–

Kodak’s arch-rival, Fuji came up with a new 35mm
single-use camera
Kodak has no competitive offering
Slow: would take 70 weeks to produce a rival to
Fuji’s camera!
Result: the new process, “Concurrent
Engineering”
–
Reduce turnaround time to 38 weeks
Case Example: Kodak

Key Redesign Strategy
–
Apply innovative use of CAD/CAM + integrated
product design database




Allow engineer to design at computer workstations
Database collect each engineer’s work and combines into
overall design
Each morning, problems are resolved immediately
Manufacturing can begin tooling design just 10 weeks into
product design instead of 28 weeks in the past
Minimize Risk and Ensure Success






Top Management Support and Commitment
Show some result quickly
Set Stretch Targets for redesign
Apply a holistic and disciplined approach to
manage change
Involve people in the change process
Communicate sufficiently to dispel uncertainty
and fear
Conclusion





BPR is a multi-discipline approach for strategic
change
Methodology provides missing “how to” that
must follow the “why”
BPR must be managed as a project
BPR must be owned by the organization, not
driven by consultants
BPR requires constant communication and
feedback