A PresentationOn the topic

Business Process Re-engineering

For The Subject

Total Quality Management

Presented By:Anchal(30) & Homi(42)

Business:“A business is an organization designed to

provide goods, services or both to the consumers.”

Process:“A process is a structured, measured set

of activities designed to produce a specified output for a particular customer or market. It implies a strong emphasis on how work is done within an organization.”(Davenport, 1993)

Business Process:“A set of logically related tasks performed to

achieve a defined business outcome.”(Davenport & Short,1990)

Some Basic Concepts

• Engineering is the discipline, art, skill and profession of acquiring and applying scientific, mathematical, economic, social, and practical knowledge to design and build structures, machines, devices, systems, materials and processes that safely realize improvements to the lives of people. Re-engineering is the act of redesigning the processes and products to make them better.

• “Business Process Reengineering (BPR) is basically the fundamental rethinking and radical re-design of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed.”(Hammer & Champy,1993)

BPR ProcessFive Steps:

a. Develop the Business Vision and Process Objectives: BPR is driven by a business vision which implies specific business objectives such as Cost Reduction, Time Reduction, Output Quality Improvement etc.

b. Identify the Processes to be Redesigned: Most firms use the High-Impact approach which focuses on the most important processes or those that conflict most with the business vision. Lesser number of firms use the Exhaustive approach that attempts to identify all the processes within an organization and then prioritize them in order to redesign urgency.

c. Understand and Measure the existing processes: For avoiding the repeating of old mistakes and for providing a baseline for future improvements.

d. Identify IT levers: Awareness of IT capabilities can and should influence process design.

e. Design and Build a Prototype of the New Process: The actual design should not be viewed as the end of BPR process. Rather it should be viewed as a prototype, with successive repetitions. When the new process will bring considerable change so that objectives are achieved, BPR process is said to be completed.

Reasons for failure of BPR

Sometimes due to some reasons BPR fails to complete its functions. These reasons may be: Trying to fix a process instead of changing it. Not focusing on business processes. Ignoring everything except process redesign e.g. re-

organization, reward system, labour relationships, re-definition of responsibility and authority.

Quitting too early. Allowing existing corporate cultures and management attitudes

to prevent re-engineering from getting started. Assigning someone who doesn’t understand re-engineering to

lead the effort. Failing to distinguish re-engineering from other business

improvement programs. Concentrating exclusively on design(forgetting

implementation). Trying to make re-engineering happen without making anyone

unhappy

S.No. Basis of Difference

Improvement Due to TQM

Innovation Due to BPR

1. Level of Change Incremental Radical

2. Starting Point Existing Process Clean State

3. Frequency of Changes

One-time/Continuous One-time

4. Time required Short Long

5. Typical Scope Narrow, within functions

Broad, Cross-functions

6. Risk Moderate High

Differences Between TQM and

BPR

Benefits• Brings Innovation in the

organization• Competitive Advantage.• Customer Satisfaction• Adaptation to changing needs.• Building of Brand value to the

Company• Building of Employee Morale• Continuous growth of Business.