Business Project Reenginering

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Steps/ Phases of a BPR project

There are seven steps that used by the business process re-engineering in order to accomplish a
successful outcome. Before start, a first step, BPR teams, and consultants need a tremendous of
preparation and coordination within two days. These are because to create a strong management
and explain the details of a project implemented to become successful. Allocation of the most
capable employees is also vital as it totally affects the progress of the project soon.
The first step of BPR project is business diagnosis and measurements. This phase is
helped to identify the problematic area and measure the current performance based on several
factors, for instance, a number of mistakes, the average of time cycle and complaints from the
customers. It took four weeks to diagram, record and input all measurements that are useful for
further evaluation and analysis. Thus, this step would identify a major impact on customer
services.
The second step is a selection process in order to change and modeling. BPR team would
set the most important characteristic process that aligned the organizational goals. They will be
identified the changes and feasibility based on the characteristic. Then, redesigned and
stimulated the process in running environment. The new process is modeled by using the
diagramming tools.
Thirdly, technical design of the solution which automated the modeled business process
and redesigned the selected process using networks and workflow tools. IT experts have
established the network connections and prepared intranet applications in order to exchanges
forms and documents among team members. Expertise is also prepared each step of workflow
application implemented automatically.

Next, BPR project is also prepared training and personnel adjustment to the process team
members, coordinators, and trainers. This step is valuable to train them in the new ways of
working. The position will be adjusted according to the skills needed in the new process. After
the adjustment, employees will be provided training based on their new operation process so they
will feel comfortable with the changing job environment.
The fifth step is employee empowerment and management of change. The objective of
this step is to establish a positive attitude among the employees. In addition, to minimize the
resistance to change based on bonus system and appraisal of performance. Executive
management has established the determination for change and determinate any attempts of
resistance to change.
The next step is new process is introduced into business operations. This step is involved
the whole business organization. This step took many preparation and test to all background
resources such as IT, equipment and document. Time and date will be set for operating under the
new process and any non-conformity in the operation is disallowed.
Lastly, BPR project will ensure continuous improvement. Even though the project is
accomplished, the process is run dynamically and continuously. The BPR teams will be
evaluated periodically the performance of business processes. They have also planned the time
and the resources for the next reengineering project.

Tools and techniques of BPR


BPR tools/techniques support the validation and verification of process models. These 15
techniques are also helped in analysis, redesign, and modeling of the strategies relationships
behind business processes.
Tools

Purpose

Purpose Analysis

Identifying the objectives of business process

Flow Charting

Identifying the current and future information and resources


flows.

Wastage Analysis

Identifying wastage in current processes

Ownership Analysis

Evaluating the changes in resources such as material,


information, and documents of ownership

Benchmarking

Identifying alternatives strategies, organization, procedures,


processes, and methods.

Resource

Consumption Identifying the product consume and resources

Analysis
Product Lifecycle Analysis

Identifying whether investment in particular products and


processes are worthwhile.

Segmentation

Segmenting the business process virtually or actually.

Input/Throughout/Output

To define a process

Diagrams
System Controls

Identifying appropriate control systems techniques for new


situation

Performance Measurements

Identifying and measuring the new process

Impact Analysis

Identifying and controlling

the appropriate things of

development
Risk Analysis & SWOT

Identifying the risk of the process. Then, monitoring or


preventing problems

Simulation

Testing the new design prior to implementation

Risks factors to process BRP projects


There are five risks in implementing business process reengineering projects.

1) Financial risks
Financial risk is which BPR projects are started with a view to getting high returns on
investment. However, the efforts do not necessarily yield the desired as the returns on
investment are often intangible and not quantifiable.
2) Technical risks
BPR projects are based on the use of Information Technology. Sometimes the IT
solutions are not available or do not work to satisfaction.
3) Functional risks
The reorganizational plan is important in the process reengineering as not all business
may be applicable to the organization.
4) General project risks
The entrusted BPR team may not accomplish the task to the desired level and the
organization assumption that BPR projects may not have the competence to implement
the solution it is seeking.
5) Political risks
The BPR initiative loses the support and guarantee of the top management either due to
change in leadership or due to change in perception.

Who Apply Business Process Reengineering?


Ford
Michael Hammer has suggested to Ford to eliminate the invoice. In this situation, a copy
of the purchasing order form or receipt is no longer send from buyer to the creditor
administration. Instead, registration an order made through an online database. The
storekeeper will check whether the purchasing orders correspond to the items that appear
at the store. The difference with the old system is no accessibility to this form. If the
order is matched he accepts them and registers in the computer system. If does not match
the items are returned. Hammer reported that Ford benefited drastically. Almost 75%
decreases in the workforce in the accounts payable department.

Taco Bell
Taco Bell is focusing more on the retail service aspect and centralizing the manufacturing
area. As the K-Minus program was created and all the meat, corn shells, beans, lettuce,
cheese, and tomatoes were prepared outside the restaurant in central commissaries. All
the prepared ingredients are assembled when a customer has ordered. By applying
business reengineering, Taco Bell increased quality control, accidents and injuries
become fewer and employee morale better. Taco Bell has gone being a $500 million
company to a 3$ billion company.

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