Professional Documents
Culture Documents
SESSION 2
8 AM 10 AM
SUMMARY OF SESSION
1
What is BPR
Why did BPR arise
Difference b/w BPR & Kaizen
IMPLEMENTATION OF
BPR
1. Five steps of BPR implementation
( Davenport & Short in 1990)
a.
b.
c.
d.
e.
Process
Process objects
Process Activities
PREPARATORY THOUGHTS
Success : Lack of awareness, training , focus & alignment b/w
org.goals , top leadership direction & BPRed processes
Failure rate : as high as 90 % ( bad luck, wrong timing, it doesn't work
here etc)
BPRs focus is on process & not task
Business process / Business system
Before BPR : Tasks & not processes were optimized
Process oriented thinking prerequisite to BPR
Handle resistance
Resistance may not be visible
Persuasion better than action
Firmness in action if reqd to drive three points : Importance, priority, Seriousness
Nike : "To bring inspiration and innovation to every athlete* in the world
2.
3.
Amazon: "To build a place where people can come to find and discover anything
they might want to buy online
4.
Starbucks : "To establish Starbucks as the most recognized and respected brand in
the world.
5.
Google : To organize all of the data in the world and make it accessible for
everyone in a useful way
6.
KFC : "To sell food in a fast, friendly environment that appeals to price conscious,
health-minded consumers.
7.
8.
Face book : People use Face book to stay connected with friends and family, to
discover whats going on in the world, and to share and express what matters to
them.
9.
2. IDENTIFICATION OF
PROCESSES TO BE
REENGINEERED
Understanding from end customer
point
Concerned team to understand the process and tasks in
detail ( VSM or PFD approach )
Understand how task is linked to process and therefore
understand end-2-end process
Understand how value is derived from the process and
how it matters to the end customer ( ask as if you were a
customer)
VSM
The purpose of value-stream mapping is to
highlight sources of waste and eliminate them
by implementation of a future-state value stream
that can become reality in a short period of time
Transportation
Inventories
Movement
Waiting
Over-production
Over-processing
Defects
Skills - the loss of ideas, creativity,
experience, etc. is wasteful
PFD
Pictorial representation
of process and tasks
Relationships b/w tasks
Order of tasks
Cross Functions involved
Type/Categorization of
tasks
SIPOC
Macro Map
Detailed PFD
VSM
Swim lane maps
MS Office : Visio
VA / NVA / BNVA
Valuethat
Add
Something
the
What is non-value-added
(waste)?
Any activity customers are
not willing to pay for
Activities that add time, effort
or cost but no value
An example of a required
non-value-added activity
are activities that the
business requires due to
policy or regulations (ex,
audits or activities due to
Sarbanes Oxley (SOX), ISO,
JCAHO, FDA, GMP. These
activities can be reduced
but not eliminated.
2. IDENTIFICATION OF PROCESSES
TO BE REENGINEERED
Resp :Top & Senior leadership
Two approaches for identification & prioritization
Exhaustive approach : All the processes are I&P based on
URGENCY
Eg : PQCDSM rating based process identification
High Impact approach : I&P those processes which are at
most CONFLICT with business vision & process objectives
Eg : Cost/effort vs. Impact / result ( 4 Quadrant approach )
HIGH IMPACT:
PRIORITIZE
4 Quadrant approach
AS IS process quantification
Advantages of quantification
1. Understand the baseline or AS-IS performance levels
Existing challenges
3. UNDERSTANDING &
MEASUREMENT OF EXISTING
PROCESSES
Any PFD technique can be used for depicting the process & tasks/activities,
their relationships, order, cross functions involved and type of activities
involved
4. IT AS AN ENABLER
Before :
First generation of computers : To replace manual tasks
Computing : Rare & less popular ( complex nature of computing)
General approach : How best to use in my present task ? ( Task orientation
than process orientation rules our minds !!)
After :
IT & BPR are inseparable
BPR relies on ECR approach : IT facilitates the same
IT in BPR reason for DRAMATIC & RADICAL "improvements
Best results : IT interface should be from the START, than POST
reengineering of process ( part of project charter)
IT in BPR : Enabled dynamic visualization and evaluation
4.
IT
AS
AN
ENABLER
Key 9 capabilities IT enables
Capability
Organization al Impact/Benefit
Transactional
Geographical
Automation
Analytical
Informational
Sequential
Knowledge
Management
Tracking
Example
4. IT AS AN ENABLER
Hundreds of success stories
Company
BPR
4. IT as an enabler
SUMMARIZE
Five steps of BPR implementation
& Short in 1990)
a.
b.
c.
d.
e.
( Davenport
ASSIGNMENT 2 BY
9PM SAT, 1 AUG
1. Paragraph explaining ( 500 600 alphabets)
a)
b)
c)
d)
e)
f)
VSM
CE Matrix
8 Wastes
Value add & Non Value add activities
Exhaustive approach
High Impact approach