Critical to Quality

Business Process Re engineering

Definition:
Business process – Steps designed to supply a product or deliver a service
Re engineering - Rethinking and redesigning the present business process to attain improvement.

Business process re engineering (BPR) is an approach to change management in which the related tasks required to obtain a specific business outcome are radically redesigned.

Purpose:
To analyze workflows among and between enterprises so as to optimize end-to-end processes and eliminate tasks that doesn't offer the client with worth

Summary:

Business process re-engineering Cycle:

   Ø  Identify process:   Identify business process to re engineered  

   Ø  Review update and analyze : Analyze and measure an

Existing process

   Ø  Design to be :Identify technology and generate alternative

Process designs

   Ø  Test and Implement to be : Evaluate and select process

redesign and implement the re engineered process

Companies use Business Process Re engineering to improve performance substantially on key processes that impact customers.

Business Process Reengineering can:

   Ø  Reduce costs and cycle time: It reduces cost and cycle times by eliminating unproductive activities along with the number of employees who work on them. Hence it helps the management in decreasing the managerial layers , accelerates communication, and eliminates the errors and process caused by departments

  Ø   Improve quality: It improves quality by reducing the manual intervention and automation of many processes. It also helps in providing feedback to the manual work done.

BPR and Total Quality Management (TQM)

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  Ø  Quality has been one among the strategic factors for organizations to achieve success within the business world. Many organizations adopting quality programs so as to meet customer requirement in a highly perfect manner. With the importance that quality has gained for the last few decades of 20th century an important management concept called TQM has emerged.

  Ø  Total Quality Management is an enabling ingredient that can contribute to the successful implementation of process re engineering. Business performance improvement techniques include, process improvement, quality management and process re engineering methodologies. The main difference is that quality management methodologies such as, Six Sigma, Total Quality Management and process improvement techniques like Lean , Kaizen, Total Productive Maintenance (TPM) among others focus on improving existing process whereas business process re engineering (BPR) brings about completely new processes.

Reasons to re engineer the business process are

      1)      Competition: The process will increase a firm potency by enhancing client service, reducing operational costs, and providing a competitive edge over the competitors. Firms got to pioneer with their product and services to be competitive within the marketplace. Sustaining Innovation relies on developing current technologies that in overall improve the performance of established product 

      2)      Globalization: The globalization of the economy and also by easing of the trade markets have developed new conditions within the market place that are characterized by instability and intensive competition within the business world. Removal of barriers, international cooperation, technological innovations cause competition to intensify. 

      3)      Demand: Customer requirements change at a faster pace, hence need of a product also changes according to the time. If product is not delivered within the specified time. It will hamper the business. Hence to meet the demand in the market supply should also be inline.

      4)      Quality: People can compromise on time and cost .However quality of the service or product needs to meet the customer requirement. Hence this is the driving factor for all organization transformations.

Conclusion:

In conclusion, successful BPR can potentially create substantial improvements in the way organizations do business and can actually produce fundamental improvements for business operations. These improvements can be sensed in terms of efficiency, profit and time saving.