BPR vs BPI.pdf - BUSINESS PROCESS REENGINEERING METHOD VERSUS KAIZEN METHOD Cristiana BOGD\u0102NOIU Faculty of Financial Accounting Management Craiova

BPR vs BPI.pdf - BUSINESS PROCESS REENGINEERING METHOD...

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BUSINESS PROCESS REENGINEERING METHOD VERSUS KAIZEN METHOD Cristiana BOGDĂNOIU Faculty of Financial Accounting Management Craiova Spiru Haret University, Romania [email protected] Abstract: The essence of this paper is the comparison of the Business Process Reengineering method (BPR) and Kaizen method. The BPR method is defined by Hammer and Champy as “the fundamental reconsideration and radical redesign of organizational processes, in order to achieve drastic improvement of current performance in cost, service and speed”. At it’s turn, the Kaizen method is an management concept for incremental change. The key elements of Kaizen are quality, effort, involvement of all employees, willingness to change and communication. When BPR is compared with Kaizen method, the BPR is harder to implement, technology – oriented, enables radical change. On the other hand, Kaizen method is easier to implement, is more people – oriented and requires long term discipline. Key words: business processe reengineering, Kaizen method, incremental improvement, technology, standardization. 1. Introduction Quite often it is necessary for an organization to revise and re-examine it's decisions, goals, targets etc., in order to improve the performance in many ways and this activity of re-engineering is called as Business Process Re-engineering which is also known as Business Process Re-design or Business Process Improvement. 2. Business Process Reengineering (BPR) Business Process Reengineering began as a private sector technique to help organizations fundamentally rethink how they do their work in order to dramatically improve customer service, cut operational costs, and become world-class competitors. A key stimulus for reengineering has been the continuing development and deployment of sophisticated information systems and networks. Business Process Reengineering involves changes in structures and in processes within the business environment. The entire technological, human, and organizational dimensions may be changed in BPR . Information Technology plays a major role in Business Process Reengineering as it provides office automation, it allows the business to be conducted in different locations, provides flexibility in manufacturing, permits quicker delivery to customers and supports rapid and paperless transactions. In general it allows an efficient and effective change in the manner in which work is performed. 2.1 What is the Business Process Reengineering The globalization of the economy and the liberalization of the trade markets have formulated new conditions in the market place which are characterized by instability and intensive competition in the business environment. Competition is continuously
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increasing with respect to price, quality and selection, service and promptness of delivery.
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