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The business process reengineering

Summary

In this article we are discussing the two strategies related to the business process it is actually a critical decision that every good and progressing business has to ingest short or long run.

The BPR (Business process reengineering) and the business modeling (creating a new process) and the difference among, is this issue in this statement.

Business Process Modeling (BPM) represents the activity of processes of an business. Goal to implement a business process model is analyze and increase the venture' activities about the core business. It really is commonly performed in an venture by expert business analysts and business line managers, who seeks ongoing process improvement and efficiency. Three major types of operations involved in a small business are:

  1. Management Processes
  2. Operational Processes
  3. Supporting Processes

Business Process Reengineering (BPR) is some sort of method of management practitioners to improve business efficiency. The basics of Business Process Reengineering are to check out the business functions from a "clean slate" point of view and to see how to reconstruct these processes to improve the efficiency of the business. Reengineering is redesigning, revising and rethinking of business operations to attain cost, quality and rate or service focused efficiency. Business Process Reengineering (BRP) includes sequence ways of promote the advancement and resulting quality in competition, market and profitability of the organization. A straightforward business process reengineering is best described in pursuing four phases of the pattern i. e.

  1. Identification of the Process
  2. Review, Upgrade and Analyze 'AS IS '
  3. Design 'TO BE'
  4. Testing and Implementation

DEFO model, and all the methodologies related to BPR are reviewed then their implementation phases, results then your dialogue on results and the conclusion where the difference between both of these have been outlined.

1. Launch / Background

Business processes will be the essential part of almost any business. They are manufactured by the help of business model and show the direction towards which a small business flows.

In this article, two basic business models are discussed in detail, difference in the way is explained and what and what direction to go with these models has been defined. The two business model which are talked about here are:

  1. Business Process Reengineering
  2. Business Process and Model

1. 1 Business Process Reengineering

Business Process Reengineering (BPR) is some sort of approach to management practitioners to boost business efficiency. The fundamentals of Business Process Reengineering are to check out the business functions from a "clean slate" perspective and to find out how to reconstruct these processes to improve the efficiency of the business enterprise.

Reengineering is redesigning, revising and rethinking of business processes to achieve cost, quality and velocity or service oriented efficiency. Business Process Reengineering (BRP) includes sequence ways of promote the development and resulting superiority in competition, market place and profitability of the organization.

A simple business process reengineering is best described in pursuing four phases of the circuit i. e.

1. 2 Business Process Modeling (Creating a fresh process)

Business Process Modeling (BPM) represents the experience of processes of your business. Purpose to implement a business process model is analyze and increase the business' activities regarding the core business.

It is often performed within an business by expert business experts and business line managers, who seeks ongoing process improvement and efficiency.

Three major types of operations involved in a company are:

  1. Management Processes
  2. Operational Processes
  3. Supporting Processes

These functions can be further sub divided into numerous sub operations and sequence of activities. These sub operations have their own traits and also donate to achieve the aims and goal of the major process.

2. Problem Area / Scope

This report handles the difference between two business techniques i. e. Business process reengineering and business design (creating a fresh process).

2. 1 Problem Area

Report investigates the next problematic areas:

  • How to deal with business process reengineering?
  • How to implement it in an enterprise?
  • How to create a business design for a fresh process?
  • What is the difference between your approaches?
  • How to boost a business using these models?

2. 2 Scope

Report deals mostly with the business enterprise process models specially centering the way of both models i. e. Business Process Reengineering and Business Modeling (creating a fresh process).

Business Process is a vast field with numerous methods and explanations. Report only deals with the business enterprise Process Reengineering and Business Modeling (creating a new process) and how will it really impact the working of any enterprise.

3. Methods

Five methodologies are summarized after the basic BPR understanding. A few BPR methodologies from modern literature are the following;

Methodology #1

  1. Develop eyesight & strategy
  2. Create desired culture
  3. Integrate & Improve enterprise
  4. Develop technology solutions

Methodology #2

  1. Determine Customer Requirements &Goals for the Process
  2. Map and Measure the Existing Process
  3. Analyze and Modify Existing Process
  4. Design a Reengineered Process
  5. Implement the Reengineered Process

Methodology#3

  1. Set Direction
  2. Baseline and Benchmark
  3. Create the Vision
  4. Launch Problem Solving Projects
  5. Design Improvements
  6. Implement Change
  7. Embed Ongoing Improvement

Methodology #4

  1. Motivating Reengineering
  2. Justifying Reengineering
  3. Planning Reengineering
  4. Setting up for Reengineering
  5. As Is Explanation & Analysis
  6. To-Be Design and Validation
  7. Implementation

Methodology #5

  1. Preparation
  2. Identification
  3. Vision
  4. Technical & Community design
  5. Transformation

4. Results

Process reengineering surfaced as an intelligent and very successful strategy to refresh the current running processes in an business; because business can be used as one common term, Business Process Reengineering BPR is currently a famous term plus approach in an business who is attempting to revive the existing processes whether it's a service group or consumer product company.

4. 1 Reengineering Process

"Reengineering is the primary rethinking and radical redesign of business operations to achieve remarkable improvements in decisive, contemporary options of performance such as cost, quality, service and velocity".

BPR advocates that enterprises get back to the basics and reexamine their very ancestry. As for results: BPR is evidently not for companies who would like a 10% improvement, it is perfect for those that need a ten-fold increase. The very last but the most important of the four key words is the word-'process. ' BPR more targets processes rather than on tasks, jobs or people. It endeavors to redesign the proper and value added procedures that surpass organizational boundaries.

4. 2 Implementing Reengineering Process

According to numerous in the BPR field reengineering should apply energies in right route and concentrate on processes rather than be limited by thinking about the organizations.

Currently people in an organization think individually about this office. So companies should name the operations rather using the department names that they certainly such that they express the start and end says. These brands should imply to all the task that gets done between your start and end details. i. e, "order fulfillment can be called order to payment process".

Talking about the importance of processes just as companies have group charts, they should also have what are called process maps or workflow diagrams to provide an image of how work flows through the enterprise.

Process mapping assists in identifying your current 'As-Is' business functions and can be used to give a 'To-Be' roadmap for reengineering your product and service business enterprise functions; needless to say it logically helps to have a thorough look overall process cycle and undoubtedly it can also be used to keep an eye on the reengineering as well. It is the significant hyperlink that your reengineering team can apply to better understand and radically increase your business operations and bottom-line performance. Possessing determined and mapped the operations, deciding which ones have to be reengineered and in what order is the million-dollar question. Generally they make their alternatives predicated on three requirements:

  1. Dysfunction: which procedures are performing the worst or which process is the "bottle-neck"?
  2. Importance: which are the most critical and influential in terms of customer satisfaction;
  3. Feasibility: which will be the processes that are likely to be efficiently reengineered?

This section gives an overview of fabricating a new business process; this section offers a guide to creating an initial, 'as is' or baseline model, quite simply - the existing situation.

4. 3 The different parts of Business Process

An 'as is' or baseline model provides an overall picture of how the process works, now. Any structural, organizational and technical weak points and bottlenecks can then be revealed, along with possible advancements at another stage.

You will need the following information before you learn to create a fresh business process:

  • The desired end result of the process.
  • The start and end items (customer need and customer fulfillment).
  • The activities that are performed.
  • The order of activities.
  • The people who perform the activities.
  • The documents and forms used and exchanged between functions and from customers and suppliers.

4. 4 First phase

The first period of the procedure calls for a great deal of positioning and repositioning of incidents and activities, so ensure you use a method that is versatile and easily improved. Use visual products; if you're working with several users, it must be communicated to each individual.

4. 5 Second phase

Once you have established an agreed sequence of happenings, you can create it as a flowchart on generic software or on specialised proprietary software.

At this stage, need to check your model with the users by carrying out 'live' observations of the collection should maintain practice.

4. 6 Symbols and notation

The diagrammatical representation of Business Process is commonly 'notation'.

There is not a definitive system for Business Process creation notation, although initiatives persist to standardize one.

The Business Process Notation system is an example of an attempt to establish a typical BP notation system.

Organizations may develop their own notation systems or use the notation of these chosen own/different way.

4. 7 Methodology

A combined technique has been extracted from the five methodologies recently presented and an IDEF0 model originated and with regard to briefness, we have shown only the major activities in the IDEF0 model in Body 1. In the next section, we offer with the facts of the strategy.

4. 7. 1 Activity #1: Prepare for Reengineering:

"If you neglect to plan, you plan to fail". Planning and planning are vital factors for any activity or event to be successful and certainly in reengineering it is performed too. Before executing reengineering, the question, 'Is BPR necessary?' There must be a noteworthy dependence on the procedure to be reengineered. The validation of the need marks the start of the prep activity. This activity begins with the development of executive consensus on the value of reengineering and the link between move forward business goals and reengineering tasks. A cross-functional team is established with a casino game plan for the process of reengineering. While creating the cross-functional team, steps should be studied to ensure that the business continues to function in the absence of several key players. Another essential aspect to be looked at while creating the strategic goals for the reengineering work is to make it your first top priority to understand the objectives of your customers and where your existing process falls in short supply of reaching those requirements. Create or research the existing perspective of the organization as a well-defined vision will sustain a company's deal with through the strain of the reengineering process.

4. 7. 2 Activity #2: Map and Analyze As-Is Process

Before the reengineering team can check out redesign the procedure, they should understand the existing process. Although some organizations that happen to be in dire straits might go the other way, strive a new process design while totally overlooking the existing processes, most organizations need to map the existing processes it can help to analyze and improve onto it to design new processes. The top feature of BPR is usually that the improvement should provide remarkable results.

Many people do not understand the value of an 'As-is' examination and rather prefer to spend a larger chunk of their valuable time on building the 'To-Be' model immediately.

The main target of this phase is to identify bottle necks (anything that prevents the procedure from obtaining desired results and specifically information copy between organizations or people) and value adding procedures. Creation and records of Activity and Process models initiates it. Then, the amount of time that each activity will take and the cost that each activity requires in conditions of resources is determined through simulation and activity founded costing (ABC). All the footing required having been completed; the techniques that need to be reengineered are revealed.

4. 7. 3 Activity #3: Design To-Be process

The objective of this phase is to create a number of alternatives to the present situation, which meet the tactical goals of the venture. Benchmarking is step one in this phase. "Benchmarking is the looking at of both the performance of the organization's procedures and the way those processes is conducted with those relevant peer organizations to acquire ideas for improvement. " Other organizations need not be opponents or even from the same industry. Impressive and effective methods should be loved whatever the source.

Having identified the potential improvements to the prevailing processes, the development of the 'To-Be' models is performed using the many modeling methods available, bearing in mind the ideas of process design. Then, like the 'As-Is' model, simulations are performed and ABC to analyze factors like the time and cost included. This activity can be an iterative process and it takes a lot of tolerance and time.

4. 7. 4 Activity #4: Implement Reengineered Process

The implementation stage is where reengineering work meet up with the most confrontation and hence it is by far the most difficult one. If we expect that the surroundings would be conducive to the reengineering work we are unfortunately mistaken. The question that confronts us would be, ' If BPR claims such breath taking results then why wasn't it used much previous?' When so much time and effort is allocated to analyzing the existing functions, redesigning them and planning the migration, it could indeed be practical to perform a culture change program all together with all the current planning and prep. This course of action must support the organizational framework, information systems, and the business policies and strategies with the redesigned operations. The IDEF models that were created in the 'As-Is' can be mapped to the people created through the 'To-Be' and an initial list of change requirements generated. Additional requirements for the engineering of the 'To-Be' components can be added and the result organized into a Work Malfunction Structure (WBS). Recent advancements in BPR software technology allow automatic migration of the WBS activity/human relationships into a process modeling environment. Using prototyping and simulation techniques, the change plan is validated and its own pilot versions were created and confirmed.

4. 7. 5 Activity #5: Improve Process Continuously

A process can't be reengineered overnight. An extremely vital part in the success of each reengineering effort is based on increasing the reengineered process continually. Monitoring, first and important step here. A couple of things need to be supervised - the progress of action and the results. The improvement of action is assessed by viewing how much more informed folks feel, how much more determination the management shows and exactly how well the change clubs are accepted in the broader point of view of the business. This can be achieved by performing 'attitude research' and discrete 'fireside chats' with those at first not directly associated with the change. For monitoring the results, the monitoring should include such actions as employee behaviour, customer expectations, supplier responsiveness etc. Communication is strengthened throughout the organization, ongoing measurement is initiated, team reviewing of performance against evidently defined targets is done and a responses loop is established wherein the procedure is analyzed and redesigned. Thus constant improvement of performance is guaranteed by way of a performance tracking system and request of problem fixing skills. Continuous improvement (TQM) and BPR will always be considered mutually exclusive to one another. But on the other hand, if performed concurrently they would go with each other wonderfully well. In fact TQM can be used as a tool to handle the various problems encountered during the BPR effort and continuously increase the process.

5. Discussion

This is my 2nd statement another record was made before on a single topic but scheduled to not handling the references correctly it acquired the complaint of plagiarism; I went to discuss this thing with my instructor and my course coordinator and finally made this 2nd one. To write this type of statement one must analyze the books related to this issue and then if we use the chunk of this books or discuss any idea from it the referrals must be taken attention in a organized way otherwise it can create a problem.

A zealous customer emphasis, superior process design and a solid and motivated authority are vital substances to the recipe for the success of any business firm. It is the key that each firm should acquire to perform these prerequisites to success. It advocates requiring hard work and activates people involved to not and then change what they do but focuses on at altering their basic thought process itself. And on the other palm the new process is more or like same to the BPR however in new modeling there is absolutely no past or existing process to be looked at and in modeling the greater focus is on the model if the model is understandable attainable then further its implementation and business can be created accordingly.

6. Conclusion

So by determining both of the aspects the question again lingers that what is the difference among and based on the all analysis and research and by taking a look at the real life case studies, I arrived to a spot to state that everything depends on the situation the enterprise is going through or the nature of the organization.

As the HP company reduced their assembly time by doing the reengineering, but the main thing was the company spent countless time and lots of money first to seriously the point and take the decision that the company can do the reengineering and then by doing strong process flow research and by learning the work break down structures the business took the decision which type of reengineering approach should be used.

The bottom-line is it always will depend on the company's characteristics, the business enterprise situation it is going through. The venture management's experience how they have a situation and how right they certainly the studies rather homework essential to take the right decision.

As we look the specialized facet of both process reengineering and creating a fresh process; both of the factors needs sensible management and specialized expertise and yes the enough cash to go through them.

In reengineering we have to mold the existing procedures but creating a fresh process is to create a complete new idea which will be the part of main process stream of the organization. But I think it's an extended question sometimes the reengineering is more difficult then to make a new process because if one process is reengineered the enterprise must do other alters as well to align the reengineered area with the whole stream and this might cost more than the business expects. Its true that reengineering became a success all-over the earth among every industry service or development. But many companies could not make it with it.

New process is sometimes necessary like it is necessary if there is a complete new selection of products, technology change etc. a thorough study to fix the new process in the prevailing process stream.

7. Recommendations

Business process reengineering is an effective tool for management practitioners. It helps running a business improvement and additional enhances business process efficiency.

Continuous improvement process includes the process reengineering and encompasses all the guidelines with in the process re creating and reengineering.

This method can give huge returns. This technique began as a private sector strategy to help organizations fundamentally rethink that they do their work to be able to dramatically improve customer support, cut operational costs, and be world-class challengers.

References

  1. Feldmann Clarence. G, (1998), The Practical Guide to Business Process Reengineering using IDEF0. , Dorset House Posting, New York.
  2. Modelling and examination of business process reengineering 2002, vol. 40, no. 11, 2521±2546 GUNASEKARAN and B. KOBU
  3. Business Process Reengineering, The Creation and Execution of a Strategy Brian Fitzgerald and Ciaran Murphy 1996.
  4. Bnet. com
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