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A Project Report On Business Process Reengineering (BPR) Submitted By, Dhaval Navaldia(38) Pratik Gamit(39) Dhara Golakia(40) Khushboo Jariwala(41) Under the guidance of

Mr. Hiren Patel

S.R.LUTHRA INSTITUTE OF MANAGEMENT Affiliated to GTU, Surat

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Sr. no 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

Topic BPR-Overview Objectives of BPR Benefits of BPR Characteristics of BPR Goals of BPR Criticism ( limitation) against BPR BPR Key Steps Common Problems with BPR How to avoid BPR failure Risks in BPR Recommendations Conclusion

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Overview:
Business process reengineering (BPR) is the redesign of business processes and the associated systems and organizational structures to achieve a dramatic improvement in business performance. The business reasons for making such changes could include poor financial performance, external competition, market opportunitiesetc. BPR is not 2 Business Process Reengineering

Management information System downsizing, restructuring, reorganization, automation, new technology, etc. It is the examination and change of five components of the business: 1. Strategy 2. Processes 3. Technology 4. Organization 5. Culture BPR's main objective is to break away from old ways of working, and effect radical (not incremental) redesign of processes to achieve dramatic improvements in critical areas (such as cost, quality, service, and response time) through the in-depth use of information technology. Also called business process redesign. BPR derives its existence from different discipline, and four major areas can be identified as being subjected to change in BPR Organization Technology Strategy People

Before moving to the definition of BPR, let us first understand what is business and process. What is BUSINESS? In Simple terms, business (also called a company) is a legally recognized company designed to produce goods/product/services according to customers demand. What is PROCESS? 3 Business Process Reengineering

Management information System Hammer and Champy define a business process as a collection of activities that takes one or more kind of input and creates an output that is of value to the customer. Now let us define BPR: Michael Hammer defines business process reengineering in his book Reengineering the Corporation as: Fundamental rethinking and radical redesign of business processes to bring about dramatic improvements in performance.

OBJECTIVES OF BPR:
The main objectives of BPR are: Customer focus: Customer service oriented processes aiming to eliminate customer complaints. Speed: Dramatic compression of the time takes to complete a task for key business processes. For instance, if process before BPR had an average cycle time 5 hours, after BPR the average cycle time should be cut down to half an hour. Flexibility: Adaptive processes and structures to changing conditions and competition. Being closer to the customer the company can develop the awareness mechanisms to rapidly spot the weak points and adapt to new requirements of the market. Quality: Obsession with the superior service and value to the customers. The level of quality is always the same controlled and monitored by the processes, and does not depend mainly on the person, who servicing the customer. Innovation: Leadership through imaginative change providing to organization Competitive advantage. Productivity. Improve drastically effectiveness and efficiency

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Management information System The other sub objectives are: Improve efficiency Increase effectiveness Cost Saving in longer run Enable new business growth

BENEFITS OF BPR:
Enterprise Integration: 1. Departments are consolidated (strengthen) 2. Several jobs are combined into one job. Worker Empowerment: 1. There is both horizontal and vertical reorganization 2. There are fewer rules 3. Division of work and coordination is maintained Number of steps in process are reduced: 1. This is simplification 2. Inspections, checks and controls are reduced or eliminated. Satisfaction: 1. The work becomes more satisfying because the worker get a greater sense of completion, closure, and accomplishment from their job.

CHARACTERISTICS OF BPR:
BPR assumes that the current processes in a business are inapplicable and suggest completely new processes to be implemented by starting over. Such a perspective enables the designers of business processes to disassociate themselves from today's process, and focus on a new process. The BPR characteristics are as follows: 5 Business Process Reengineering

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Several jobs are combined into one. Decision-making becomes part of the job of employees (employee empowerment). Steps in the processes are performed in natural order, and several jobs get done simultaneously. Work is performed where it makes the most sense. Controls and checks and other non-value-added work are minimized.

GOALS OF BPR:
1. Customer Friendliness: Meeting customers requirement closely Providing Convenience

2. Effectiveness: Outcome-based approach Gaining loyalty of customers Image and branding

3. Efficiency: Cost Time Effort

THE 3 RS of REENGINEERING:
REDESIGN
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RETOOL

REORCHESTRATE

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(synchronize)
Simplifying Standardize Empowering Employee ship Groupware Measurements Networks Intranets Extranets Workflow Processes I.T Human Resources.

CRITICISM (LIMITATION) AGAINST BPR:

Reengineering assumes that the factor that limits an organization's performance is the ineffectiveness of its processes (which may or may not be true) and offers no means of validating the assumption.

Reengineering assumes the need to start the process of performance improvement with a "clean slate," i.e. totally disregard. According to Eliyahu M. Goldratt (and his Theory of Constraints) reengineering does not provide an effective way to focus improvement efforts on the organization's constraint.

Other criticism brought forward against the BPR concept includes: It never changed management thinking, actually the largest causes of failure in an organization Lack of management support for the initiative and thus poor acceptance in the organization.

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Management information System Exaggerated expectations regarding the potential benefits from a BPR initiative and consequently failure to achieve the expected results. Underestimation of the resistance to change within the organization. Over trust in technology solution Performing BPR as a one-off project with limited strategy alignment and longterm perspective. Poor project management.

WHEN ORGANIZATION USE BPR

BPR KEY STEPS:

Business Process Reengineering Understand the Current process Develop and communicate Vision of Improved Execute Plan Identify action plan process

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1) Select the process and Appoint process Team Two Important Tasks 1. Select the process to be reengineered 2 Appoint a process team Select the Process Review business strategy and customer requirements Select core processes Understand customers needs No assumption Select the Process Select correct path for change Ask - questionnaires, meetings, focus

Appoint the Process Team Identify process owners Develop executive improvement team Provide training to executive team 9 Business Process Reengineering

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2.) Understand the Current Process Develop a process overview Clearly define the process o Mission o Scope o Boundaries Set business and customer measurements Understand customers expectations from the process Identify Improvement Opportunities o Quality o Rework Document the Process o Cost o Time o Value o Data 3.) Develop & Communicate Vision of Improved Process Communicate with all employees so that they are aware of the vision of the future Always provide information on the progress of the BPR initiative - good and bad. Demonstrate assurance that the BPR initiative is both necessary and properly managed Promote individual development by indicating options that are available Indicate actions required and those responsible 4.) Identify Action plan 10 Business Process Reengineering

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Develop an improvement plan Appoint process owners Simplify the process to reduce process time Remove no-value-added activities Standardize process and automate where possible Up-grade equipment Plan/schedule the changes 5.) Execute Plan Qualify/certify the process Perform periodic qualification reviews Define and eliminate process problems Evaluate the change impact on the business and on customers Benchmark the process Provide advanced team training

COMMON PROBLEMS WITH BPR:

Management information System Allocation of resources Poor timing and planning Keeping the team and organization on target

HOW TO AVOID BPR FAILURE:

BPR must be accompanied by strategic planning, which addresses leveraging Information technology as a competitive tool. Place the customer at the centre of the reengineering effort. Case teams must be comprised of both managers & those who will actually do the work. The Information technology group should be an integral part of the reengineering team from the start BPR projects must have a timetable, ideally between three to six months, so that the Organization is not in a state of "limbo". BPR must not ignore corporate culture and must emphasize constant communication and feedback.

RISK IN BPR:
Employee resistance to change 12 Business Process Reengineering

Management information System Inadequate attention to employee concerns Inappropriate staffing Inadequate technologies Mismatch of strategies used and goals Lack of oversight Failure of leadership commitment

OUR RECOMMEDITIONS..

Top management support BPR must be accompanied by strategic planning, which addresses leveraging IT Before implementing BPR management should create fair amount of awareness BPR must not ignore corporate culture and must emphasize constant Place the customer at the centre of the reengineering effort; concentrate on

as a competitive tool. amongst employee in order to achieve positive response and acceptance. communication and feedback. reengineering fragmented processes that lead to delays or other negative impacts on customer service. There should be uniformity and standardization of goal and objective to BPR must be accompanied by strong communication process During BPR process employee should be provided a required skill set training. Include key personnel and function as early as possible Start with small.

achieve in BPR project.

OUR CONCLUSION..

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Management information System Change is inevitable in todays competitive world. Organization has to be ready for continuous change for success. However, the most important factor which makes organization successful in the race is how fast and consistently they can adopt change. Thus, BPR helps to be flexible with organization and also helps to easily accept the change according to the situation.

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