Session 12-BPR
Session 12-BPR
◦Reengineering Work.
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The fundamental rethinking and radical redesign of core business
processes to achieve dramatic improvements in critical performance
measures such as quality, cost, and cycle time.
Source: Adapted from Hammer and Champy, Reengineering the Corporation, 1993
check order, how much
accept / reject how much does it cost?
does it cost?
confirm order deliver
bill
acquire necessary
parts
can we
produce it?
customer wants
to order are parts
something when?
avalilable?
produce
Precondition
Processes in an enterprise must be known
Processes in an enterprise must be analysed
Processes in an enterprise must be documented
Video-1
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Purchasing
Vendor
Purchase order
Receiving Goods
Copy of
purchase
order
Receiving
Accounts document
Payable
Invoice
? ? Payment
After
• Reengineer “procurement”
• The new process cuts head count in AP by 75%.
• Matching is computerized.
• Accuracy is improved.
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Broken Processes: Which processes are in the deepest
trouble?
Video - 2 21
BPR TOOL COMPANY DESCRIPTION
ActionWorks Action The product suite consists of a business process
TechnologiesAla builder, process engine, and front-end executive
meda, CA dashboard.
AllFusion CA, Islandia, NY Modeling tool that helps analyze, document, and
Process improve complex business processes. Provides
Modeler an integrated view of workflows to complete
tasks and activities.
BizFlow HandySoft, Delivers process management solutions in the
Vienna, VA areas of: collaboration, administration
application, and integration.
BPSimulator Technology The activity-based analysis software enables
Economics Inc, teams to track cycle times and costs of multiple
Rockville, MD business processes.
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Flow chart technique (Flowcharter, Flowmark)
Data Flow Diagrams (CASE Tool, 4Keeps)
Role activity diagram (RADitor)
Role interaction diagrams (RADitor)
Gantt Chart (Project Scheduler7, Workflow BPR)
IDEF (Design IDEF, IDEF Tools)
UML (Magic Draw UML, Visual UML)
Simulation (Metis, Arena)
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It is a graphical representation which uses symbols to represent such
things as operations, data, flow direction, and equipment, for the
definition, analysis, or solution of a problem.
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Data Flow Diagrams (DFDs) describe the processes showing how
these processes link together through data stores and how the
processes relate to the users and the outside world.
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Context DFD Level 1 DFD
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1. Order Planning
2. Order Generation
3. Cost estimation and pricing
4. Order receipt and entry
5. Order selection and prioritization
6. Scheduling
7. Fulfillment
Procurement
Manufacturing
Assembling
Testing
Shipping
Installation
8. Billing
9. Returns and Claims
10. Post sales Services
Cost Time Quality Error rates
Cost per (negative
Cycle time
execution outcomes,
wrong info)
Waiting time /
Resource time spent in Missed
utilization non-value- promise
added tasks
Waste
Before Re-engineering After Re-engineering Business Impact
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M&M is an Indian multinational car manufacturing corporation headquartered
in Mumbai, Maharashtra, India.[3] It is one of the largest vehicle manufacturers
by production in India and the largest manufacturer of tractors in the world.[4]
Mahindra & Mahindra was set up as a steel trading company in 1945
in Ludhiana as Mahindra & Mohammed by brothers K.C. Mahindra and J.C.
Mahindra and Malik Ghulam Mohammed.[7]
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Process of Change leads to
Focus on Product Units instead of Functional units
Decentralization of Decision Making
Reducing Cycle times
Creation of sense of ownership among workers
Technological adoption in manufacturing systems
Key Learning
Handling Project
Change Management
Strong and Robust Backbone i.e. IT Infrastructure
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