BUSINESS
PROCESS
REENGINEERING
12/07/2021 1
Group Members
Chanky Jain 33
Tapesh Joshi 35
Aditi Kadam 36
Gaurang Kamat 40
12/07/2021 2
What is a Process?
A specific ordering of work activities
across time and space, with a beginning,
an end, and clearly identified inputs and
outputs.
12/07/2021 3
What is Business Process?
A group of logically related tasks that use
the firm's resources to provide customer-
oriented results in support of the
organization's objectives
12/07/2021 4
What is Reengineering?
The reengineering of software was described as
"The examination and alteration of a system to
reconstitute it in a new form". Less formally,
reengineering is the modification of a software system
that takes place after it has been reverse engineered,
generally to add new functionality, or to correct
errors.
This entire process is often erroneously referred to as
reverse engineering; however, it is more accurate to
say that reverse engineering is the initial examination
of the system, and reengineering is the subsequent
modification.
12/07/2021 5
DEFINITION – BPR
BPR is the fundamental rethinking and
radical redesign of business processes to
achieve dramatic improvements in critical
contemporary measures of performance,
such as cost, quality, service, and speed.
12/07/2021 6
12/07/2021 7
BPR - OVERVIEW
BPR 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.
BPR is the main way in which organizations become
more efficient and modernize. BRP transforms an
organization in ways that directly affect performance.
12/07/2021 8
WHY RE-ENGINEERING?
Reengineering recognizes that an organization's business processes
are usually fragmented into sub processes and tasks that are carried
out by several specialized functional areas within the organization.
Reengineering maintains that optimizing the performance of sub
processes can result in some benefits, but cannot yield dramatic
improvements if the process itself is fundamentally inefficient and
outmoded.
For that reason, reengineering focuses on redesigning the process as
a whole in order to achieve the greatest possible benefits to the
organization and their customers.
12/07/2021 9
WHY RE-ENGINEERING?
12/07/2021 10
Contd…
Business process re-engineering (BPR) is
being attempted by many firms that are
looking for radical gains from the
successful redesign of their processes.
BPR is a high risk, time consuming
activity, with no guarantee of success, and
yet many businesses claim to be re-
engineering their processes.
12/07/2021 11
Contd…
The companies in their study with the
largest improvement were found to be
redesigning critical processes of their
business. Process improvement was found
to be minimal where narrow processes
that only changed the surface of the
business were defined.
12/07/2021 12
Contd…
In small firms, organizational structure is
typically informal, but highly centralized,
which provides strength in decision-making
and rapid implementation of decisions.
This also enables more rapid implementation
of change in the organization.
Further, it has been empirically confirmed that
small businesses differ from large
organizations in other matters such as
maturity and environmental uncertainty.
12/07/2021 13
Organization Structure
Classical IE Based BPR Based
Hierarchical management Flattened & shortened chain of command
control
Vertical division of labor, centralization of Decentralization of responsibilities & of
decisions decision making
Separation of categories by status Blurring of status differences & trend towards
more status equity
Technical division of labor & atomistic & Enlargement of task toward more professional
service strict task assignment division of work
Specialization & compartmentalization of Multidisciplinary team working
knowledge
Loose ties with supplier Connectivity with suppliers & subcontractors
12/07/2021 14
Loose ties with consumer Great sensitivity to market demand, to buyers
& consumers & all stock holders
Standardized products & production processes. Structural, technological & organizational
flexibility.
Overall routines & rigidities Continuous search for innovation & value
additions.
Production management is central Human resource department becomes central
12/07/2021 15
Objectives
Lower the cost
Increase quality &
Increase the quantity of service
12/07/2021 16
EFFECTS OF BPR
1. Less Cost
2. Better Service
3. Shorter Lead Times
4. Greater Competitiveness
5. Opportunity to gain market share
12/07/2021 17
Features of bpr
Workers make decisions.
Several jobs are combined into one.
Steps in the process are performed in natural order.
Process has multiple versions.
Work is performed where it makes the most sense.
Checks & controls are reduced.
Reconciliation is minimized.
A case manager provides a single point of contact.
Work unit changes: functional to process.
Structure changes: hierarchical to flat.
Managers change: Supervisor to coaches
12/07/2021 18
Process of BPR
& tand
efy
Process
cate Vision
ntrrent
Process
nvedPlan
E
x
c
ut
Pl
a
n
12/07/2021 19
I. Select the Process & Appoint Team
Two Important Tasks
◦ Select the process to be reengineered
◦ Appoint a process team
12/07/2021 20
Core Skills Required
Capacity to view the organization as a
whole
Ability to focus on end-customers
Ability to challenge fundamental
assumptions
Courage to deliver into unknown areas
12/07/2021 21
II. Understand the Current Process
Develop a process overview
Clearly define the process
◦ Mission
◦ Scope
◦ Boundaries
Quantify customer measurements
Understand customers expectations from
the process
12/07/2021 22
Understand the Current Process
Identify Improvement Opportunities
◦ Quality
◦ Rework
Document the Process
◦ Cost
◦ Time
◦ Value Data
12/07/2021 23
III. Develop & Communicate Vision of
Improved Process
Communicate with all employees so that
they are aware of the vision of the future
Always provide information on the progress
of the BPR initiative - good and bad.
Demonstrate assurance that the BPR
initiative is both necessary and properly
managed
12/07/2021 24
Develop & Communicate Vision of
Improved Process
Promote individual development by
indicating options that are available
Indicate actions required and those
responsible
12/07/2021 25
IV. Identify Action Plan
Develop an improvement plan
Appoint process owners
Simplify the process to reduce process
time
Remove no-value-added activities
Standardize process and automate
wherever possible
Up-grade equipment
Plan/schedule the changes
12/07/2021 26
V. Execute Plan
Qualify/certifythe process
Perform periodic qualification reviews
Define and eliminate process problems
Evaluate the change impact on the
business and on customers
Benchmark the process
Provide advanced team training
12/07/2021 27
Key areas
Emphasize customer satisfaction
Use performance improvement programs and
problem solving techniques
Focus on business processes
Use teams and teamwork
Bring about changes in values and beliefs
Work to drive decision making down to lower
levels in the organization
Require senior level commitment and change
management for success
12/07/2021 28
Characteristics
1. Process-based
Replace traditional management
philosophy
Look at business from outside in
Concentrate on end-to-end management
of processes
12/07/2021 29
2. Fundamental Rethink
A zero-based approach to the redesign of key
processes
Three key issues
◦ The extent current structure detracts from
creation and delivery of value
◦ The retarding effect that structure can have
◦ The unresolved cross-functional conflicts and
tensions
12/07/2021 30
3. Radical improvement
Avoid scaling down ambitions
Emphasis on achieving dramatic and
sustainable leaps in performance
Re-engineering not appropriate if
alternative approach will achieve same
gains
12/07/2021 31
4. Integrated Change
Major change adds pressure
Personal ambition and competing
initiatives - divert attention and resources
The approach should deliver a balanced
and holistic solution
People and training put in place
12/07/2021 32
5. People Centred
Understanding of business goals
Knowledge of processes
Ability to make decisions and take risks
on behalf of organisation
Coaching of staff
12/07/2021 33
6. Mindset Change
Discard prior conditioning
Build and communicate a shared
understanding of the organisation’s future
Create an environment and infrastructure
that promotes learning and imagination to
guide decisions
12/07/2021 34
TQM, JIT & BPR
TQM seeks to create an atmosphere
where ‘Doing right thing on right time in
right quality’ becomes the goal.
JIT is a mfg. philosophy that calls for
total reorganization of operations.
BPR is a mean by which an organization
can bring radical change in level of cost,
cycle time, service & quality.
12/07/2021 35
BPR differs from TQM & JIT in following ways:
BPR provides a new definition of
operational excellence which helps to
destroy all the old tenets.
BPR pushes TQM & JIT approaches both
upstream & downstream to customer &
supplier.
BPR requires corporate leaders
Traditional TQM & JIT often fail to break
functional barriers.
12/07/2021 36
BPR examines & analyses work flow
structure of a process.
BPR is TPQM i.e. Total productivity &
quality management which is in line with
our concepts
12/07/2021 37
Role of Information technology
Shared databases
Expert systems, allowing generalists
Telecommunication networks
Decision-support tools
Wireless data communication and portable
computers
Interactive videodisk
Automatic identification and tracking
High performance computing
12/07/2021 38
Case Study
Mahindra & Mahindra
12/07/2021 39
Circumstances that lead M&M to
implement BPR Factors
Manufacturing Inefficiencies
Poor productivity
Long production cycle
Sub-optimal output.
Unhealthy work culture
Corruption was widespread
(contd.)
12/07/2021 40
Decision to focus on enhancing
productivity and delivering world-class
quality at the least possible cost.
Ambition to become the largest tractor
manufacturer in the world.
The three C’s (customers, competition,
change)
12/07/2021 41
Why M & M faced resistance from
unions while implementing BPR?
Fear of Downsizing
Several jobs were combined into one
Management accepting the Union demands
every time
Lenient approach of management towards
running the plant
Inflexibility of the workers
Idle time available to workers due to
unorganized processes
12/07/2021 42
BPR Implementation Events
Resistance from the unions
Re-engineering the layout and method of
working
Cellular Manufacturing
Multi-tasking through multi-machine manning
Reduction in non-productive activities
Implementation of TPM & Kaizen
12/07/2021 43
Platform Concept
Focus on customer requirement
Concurrent engineering: Formation of cross
functional teams
Formation of 3 full-time teams
◦ Horizon1: Improvements in existing products
◦ Horizon2: Up-gradation of existing products
◦ Horizon3: Development of new products
12/07/2021 44
Benefits of BPR in M&M
Around a 100 officers produced 35 engines a day as compared to the 1200
employees producing 70 engines in the pre-BPR days.
Igatpuri Plant: Employees declined by 400 but productivity went up by 125
engines per day
Nasik Plant: 125% improvement in productivity
Value added per employee increased from 0.3 million to 0.46 million
Reduction in employee costs
◦ 1994: 12.4%
◦ 1996: 10.1% 12/07/2021 45
Summary
“Today the atmosphere is so different that
every morning all the workers recite the
company oath, which is a sea change from
the situation 10 years ago when workers
used to play cards on shop floor during
working hours.” - Anand Mahindra
12/07/2021 46
