Session 11 - Chapter 09 - ERP text and Cases - (Business Process Reengineering) Rajesh Ray.pdf

Session 11 - Chapter 09 - ERP text and Cases - (Business Process Reengineering) Rajesh Ray.pdf

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Business Process Reengineering -., . l In this chapter we will discuss the following concepts: BPR definition and need for BPR Pros and cons of BPR BPR - Reasons for failure and key to success Reengineering phases Process redesign vs. process improvementlBPR vs. TQM Role of information technology in BPRIbusiness engineering BPR and ERP Benchmarking Best practices BUSINESS PROCESS REENGINEERING (BPR) c t r .M 1 I I !I I.' J 'I "f To discuss business process design, let us first understand what is meant by a "Business Process" and what "Reengineering" is. Business Process According to Davenport: "A business process is a set of logically related tasks that use the resources of an organisation to achieve a defined business outcome."! A business process can also be defined as a collection of activities in a particular sequence that has one or more "inputs" and generates one or more results that represent added value for an organisation. A process has a clear beginning and an end, and clearly identified inputs and outputs. Processes are cross-functional and not restricted within a single function. ~ ,I I ' ;\1 'Davenport, T. and Short, J., The new industrial engineering: information technology and business process redesign, Sloan Manage- ment Review, #32, 1990
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Business Process Reengineeting Examples of process are: Enquiry to order - Order acquisition process Components to finished products - Assembly process Requirements to samples - Product development process As shown in Figure 9.1, a simple process like delivering against a customer order may have several steps and each of them can perform a part of this process. For example: Sales department first enters the order Production department manufactures against that order Quality department does the quality check and give the final approval to deliver it to the customer Warehouse does picking and packing of the order Distribution team transports the goods Finance team finally do the billing Fig; 9.1 A Business ProcessRunning Across Multiple Departments of the Organisation So, business process has some fundamental principles, which are given below: Reengineering According to Michael Hammer, the father of BPR, "Reengineering is the fundamental rethinking and radi- cal redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed".' 2Hammer, M., Beyond Reengineering, NY: Harper Business, 1996
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128 Enterprise Resource Planning Three important concepts in reengineering are 1. Fundamental Rethinking: BPR is not about doing small changes; it is all about new way of thinking to do the process. 2. Radical redesign: The new process should look very different from the old one. , 3. Dramatic improvements: A reengineered process can bring significant improvement in the process performance in terms of cost, time or service performance.
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  • Fall '19
  • process improvementlBPR

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