BasisofBPR

BasisofBPRWhatisBPRWhatthetermBPRmeans?Whereithascomefrom?Whatdistinguishesitfromothermanage-mentphilosophies?Whyithascapturedtheimaginationofsomanymanagers?12/14/20222BusinessProcessRe-engineeringWhatisBPRWhatthetermBPRmHowthetraditionalorganizationworksAtriangleisusedtorepresentanorganization-themajorityofpeopleworklowerdowntheorganizationandthemanagementhierarchyextendsallthewaytothepinnacle.Theorganizationismadeupofanumberofsub-organizationintheformofgroupsofspecialistsknownasfunctions,eachofwhichhasitsownmanagementhierarchy.12/14/20223BusinessProcessRe-engineeringHowthetraditionalorganizatiFunctionalHierarchyR&DManagementfocushastraditionallybeenonthefunctionalhierarchy.ProductionSales12/14/20224BusinessProcessRe-engineeringFunctionalHierarchyR&DManagemFunctionalHierarchyTherearemanydifferentdepartmentsandpeoplearerecruitedintoonefunctionaldepartment;Eachdepartmentisresponsibleforundertakenonepartofthewholetasks;Thischainoflinkeddepartmentallowsforspecialization;Thismodelissowidelyestablishedthatitisrarelyquestioned.12/14/20225BusinessProcessRe-engineeringFunctionalHierarchyThereareTheStrengthsfewerspecialistmayservicetheneedsofanumberofareas;takingthelatestthinkinginparticularareasintotheorganization;developingcareerswhichenhancespecialistexcellenceinaparticularfield,suchasMarketing,Production,ITorHumanResources;12/14/20226BusinessProcessRe-engineeringTheStrengthsfewerspecialistTheWeaknessesThefocusoftheorganizationcanbethe‘boss’notthecustomer;Noonehasthecontroloverthe‘horizontal’processandco-ordinationisweak;Nosinglepointofcontact;Unproductiveworkexistsbecauseoffunctionalboundarieswhichresultinmanytasksbeingdonesimplytosatisfytheinternaldemandsoftheit’sownorganization.12/14/20227BusinessProcessRe-engineeringTheWeaknessesThefocusoftheGetridofunnecessarystepsWhenadoptaprocessapproachyoumayfind:Manyofthestepsinyourworkhavenothingtodowithdeliveringtherequiredoutcomes;Itisdifficulttoidentifywhysomestepsexistatall;Oftenitisfornobetterreasonthanbecausetheyalwayshave;Gettingridofalltheseunnecessarystepsmeansquickercustomerserviceatconsiderablylowercost.Doingthisusuallycutsacrossthefunctionaldepartment.12/14/20228BusinessProcessRe-engineeringGetridofunnecessarystepsWhProcessOrientedApproachR&DBPRemphasizesa“process”viewwhichcutsacrossthefunctionalhierarchiestoreachthecustomer.ProductionSalesCustomer12/14/20229BusinessProcessRe-engineeringProcessOrientedApproachR&DBPWhatprocessfocusmeansAprocessfocusmeanslookingatthewayacustomerorderisfulfilled,anewproductcreated,oramarketingplandeveloped,withoutconcernforfunctionalboundariesorspecialization.12/14/202210BusinessProcessRe-engineeringWhatprocessfocusmeansAprocWhatisaprocessProcess:Acontinuousandregularactionorsuccessionofactions,takingplaceorcarriedoninadefinitemanner,andleadingtotheaccomplishmentofsomeresult;acontinuousoperationorseriesofoperations.Processhasaninputandanoutput;madeupofasequenceoftasksthroughwhichthisinputpassestobecomeanoutput12/14/202211BusinessProcessRe-engineeringWhatisaprocessProcess:AcoValueChainModelofM.PorterCompanyInfrastructureHumanresourcesTechnologyDevelopmentProcurementSupportActivitiesPrimaryActivitiesInboundLogisticsOperationsMarketingSalesOutboundLogisticsCustomerServiceMargInMargInValue-addingActivities12/14/202212BusinessProcessRe-engineeringValueChainModelofM.PorterScaleandScopeofProcessThescaleoftheprocessdependsonwhatitisperforming,whichcouldbeaverysimplesetoftasksorahighlycomplexsetofinterrelatedactivities;Thescopeofaprocessisconcernedwiththeextenttowhichitcrossesorganizationalunits(functionsordepartments);Aprocesswithabroadscopeislikelytocrossanumberoffunctionsordepartment;Ifthescaleandscopearewideranging,agreatpay-offmightbeexpected.12/14/202213BusinessProcessRe-engineeringScaleandScopeofProcessTheNewProductvs.NewProcessInthepastcenturytheeconomicwinnerwerethosewhoinventednewproducts;But,inthe21stcenturysustainablecompetitiveadvantagewillcomemoreoutofnewprocesstechnologiesandmuchlessoutofnewproductstechnologies;Whatusedtobeprimary(inventingnewproducts)becomessecondary,andwhatusedtobesecondary(inventingandperfectingnewprocess)becomesprimary12/14/202214BusinessProcessRe-engineeringNewProductvs.NewProcessInLevelsofprocessStrategicProcessesOperationalProcessesEnablingprocesses12/14/202215BusinessProcessRe-engineeringLevelsofprocessStrategicProLevelsofprocessStrategicprocessesarethoseprocessbywhichtheorganizationplansforanddevelopitsfuture,suchasstrategyplanning,products/servicedevelopment,newprocessdevelopment…;Operationalprocessesarethosebywhichtheorgani-zationcarriesoutitsregularday-to-dayfunctions,suchassales,orderentrain,scheduling,production…;Enablingprocessesarethosebywhichenablestrate-gicandoperationalprocessestobecarriedout,suchasHRM,accounting,MIS,…;12/14/202216BusinessProcessRe-engineeringLevelsofprocessStrategicproWhatisBPRBPRisanimprovementphilosophy.Itaimstoachievestepimprovementsinperformancebyredesigningtheprocessesthroughwhichanorganizationoperates,maximizingtheirvalue-addedcontentandminimizingeverythingelse.Thisprocesscanbeatanindividualprocesslevelortothewholeorganization.Criticalanalysisradicalredesignofexistingbusinessprocessachievingbreakthroughinperformancemeasures12/14/202217BusinessProcessRe-engineeringWhatisBPRBPRisanimprovemeBusinessphilosophycomparisonsFocusBPR:process,minimizingofnonvalue-addedactivities;TQM:quality,gettingthingsrightfirsttimeJIT:inventories,wasteelimination,throughput;CE:newproductdevelopment,reducingtimetomarket,increasingquality;12/14/202218BusinessProcessRe-engineeringBusinessphilosophycomparisonBusinessphilosophycomparisonsImprovementscale:BPR :radicalimprovement;TQM :continuousimprovement;JIT :continuousimprovement;CE :radicalimprovement;12/14/202219BusinessProcessRe-engineeringBusinessphilosophycomparisonBusinessphilosophycomparisonsOrganization:BPR :processbased;TQM :notchangeorganizationalstructure, withcommongoals,acrossfunctions;JIT :changeshop-floorandteamstructure;CE :processbased(productdevelopment)12/14/202220BusinessProcessRe-engineeringBusinessphilosophycomparisonBusinessphilosophycomparisonsCustomerfocus:BPR :outcomesdriven;TQM :internalandexternalsatisfaction;JIT :initiatorofaction,pullsproduction;SE :internalpartnership;12/14/202221BusinessProcessRe-engineeringBusinessphilosophycomparisonProcessfocus:BPR :createbetterprocessesfroma‘clean sheet’orsystematicdesign;TQC :controlandmeasurementofimproving qualityJIT :workflow/throughput,efficiencySE :ensuringthatmarketing,R&D,and productionworktogether;Businessphilosophycomparisons12/14/202222BusinessProcessRe-engineeringProcessfocus:BusinessphilosoTechniques:BPR :Processmaps,benchmarking,self- assessment,creativethinking;TQM :Processmaps,benchmarking,self- assessment;JIT :Visibility,Kanban;SE :programteams,CAD/CAMBusinessphilosophycomparisons12/14/202223BusinessProcessRe-engineeringTechniques:BusinessphilosophyContinuousImprovementvs.RadicalChangeBPRisconcernedwithradicalchangerethinkingthefundamentalprincipleofworkingprocess.Cutthenonvalue-addedactivitiesradicalperformanceimprovementThegoalofBPR,however,mightbeachievedthroughcontinuousincrementalimprovementbasedonsmallchangesthroughouttheorg.Smallchangestrategyisfarmoreeffectivethanthe‘completeoverhaul’approach.12/14/202224BusinessProcessRe-engineeringContinuousImprovementvs.RadExpectationsofimprovementScopeofBPRBroadNarrowLowHighUnrealisticexpectationAppropriategoalsMissedopportunitiesScaleofpotentialbottom-lineimprovement12/14/202225BusinessProcessRe-engineeringExpectationsofimprovementScoAExample:FordAccountsPayableDepartment

SupplierPurchasingDepartmentAccountsPayablePurchaseOrderPurchaseOrderCopyInvoicePaymentGoodsGoodsInwardReceivingDocumentsOriginalProcess12/14/202226BusinessProcessRe-engineeringAExample:FordAccountsPayabBEFOREBPRAnumberofpaperdocumentswereprocessedsequentiallyby3functionswhoparticipatedintheprocessindirectlytoperformmanysteps.Purchasingissueaordertosupplierandsendacopytoaccountspayablefunction.Uponarrival,theinventoryfunctionsendsacopyofreceivingdoctopayablefunction.Whentheinvoicearrives,thepayablefunctionmatchesitagainsttheorderandthereceivingdocbeforeissuingpaymenttothesupplier.Mucheffortsareneededtoresolvediscrepancies,andatotal14dataitemsmustbechecked.12/14/202227BusinessProcessRe-engineeringBEFOREBPRAnumberofpaperdAExample:FordAccountsPayableDepartmentSupplierPurchasingDepartmentCentralDatabasePurchaseOrderCopyElectronicPaymentGoodsGoodsInwardNewProcessPOsentelectronicallyAccountsPayable12/14/202228BusinessProcessRe-engineeringAExample:FordAccountsPayabAFTERBPRWithonly25%workforce,the3functionsparti-cipateintheprocessdirectlybyaccessingashareddatabase,eliminatingmanyinter-stepsandpaperdoc.Purchaseorderisenteredintothedatabase.Uponarrival,theinventoryfunctionaccessesthedatabase.Ifamatchisfoundthedatabaseisupdated.Thepayablefunctioncheckthedatabaseroutinelyandpreparepaymentforthesuppliers.Matchingischeckedbycomputerandonly3detaitemsneedtobecheckedintheprocess.12/14/202229BusinessProcessRe-engineeringAFTERBPRWithonly25%workfAExample:FordAccountsPayableDepartmentOutcomeofBPR:Noinvoicewasrequired.Thenumberofdateitemstobecheckedwasreducedfrom14to3,andcheckedautomati-callybycomputer.Achieveda75%reductionofemployeesinAccountsPayableDepartment.12/14/202230BusinessProcessRe-engineeringAExample:FordAccountsPayabSummayTraditionalorganizationalstructureshavebeenbuiltaroundfunctionsandhierarchywhichhaveservedenterpriseswellinthepast.How-ever,theyhaveprovenslowinrespondingtotheneedsoftoday’scompetitiveenvironment.BPRchallengingmanyoftheassumptionsonwhichorganizationhavebeenbuiltandputsprocessfirmlyonthemanagementagenda.Byredesigningtheseprocessitispossibletoeffectstepimprovementintheperformanceoftheseprocesses.12/14/202231BusinessProcessRe-engineeringSummayTraditionalorganizationInformationTechnologyandBusinessProcessBusinessprocesshaveexistedandevolvedlongbeforetheadventofmoderncomputer.ManyorganizationsareattemptingtoleveragetheadvancingITtofacilitatethecooperationbetweenfunctionalunitsandincreasetheorganization’sflexibilityandresponsiveness.Sucheffortsofteninvolvethefundamentalredesignofbusinessprocessesthatcrossfunctionalunits.12/14/202232BusinessProcessRe-engineeringInformationTechnologyandBusInformationTechnologyandBusinessProcessAsthedatabasetechnologymatured,manyorganizationbegantibuildsystemscenteredaroundbusinessprocessthatcrossfunctionalunits.Telecommunicationprovideopportunitiesforimprovingcollaborationamongpersonnelfromdifferentfunctionalunitsintheireffortstoaccomplishacommonbusinessprocess.12/14/202233BusinessProcessRe-engineeringInformationTechnologyandBusInformationTechnologyandBusinessProcessToeffectivelyleverageITinBPR,certaincharacteristicsofabusinessprocessmaybechangedtoachievedramaticimprovementincriticalmeasuresofperformance.Thesecharacteristicsisrelatedtohowdifferentfunctionsarecoupledtoeachotherforproducingacommonoutcomes.TheidentificationofdifferentpatternsbasedonthesedescriptiveprocesscharacteristicscanhelpsetstrategicdirectionandguidelinesineffortstoalterthecurrentcouplingpatternsofbusinessprocessesthroughBPR.12/14/202234BusinessProcessRe-engineeringInformationTechnologyandBusFunctionalCouplingofBusinessProcessThewayvariousfunctionsarecooperatedinaccomplishingaprocess--i.e.,thefunctionalcouplingofaprocess--canbedifferentiatedalongtwodimensions:degreeofmediationanddegreeofcollaboration.12/14/202235BusinessProcessRe-engineeringFunctionalCouplingofBusinesTheDegreeofMediationofaBusinessProcessManyfunctionsareinvolvedinatypicalprocess;Eachparticipatingfunctionhasinputsandoutputswhichwouldeitherdirectlyfacilitatestheprocessoutcomeorserveasinputstootherfunctions.Theextentofsuchsequentialflowofinputandoutputamongthesefunctionsinabusinessprocessconstitutesthedegreeofmediation

dimensionofaprocess.12/14/202236BusinessProcessRe-engineeringTheDegreeofMediationofaBRKPQXPTXQPTXQTXPQTXP12345HighLowTheDegreeofMediation12/14/202237BusinessProcessRe-engineeringRKPQXPTXQPTXQTXPQTXP12345HighLTheDegreeofCollaborationDimensionofaBusinessProcessTheseconddimensionisrelatedtothedegreeofcollaborationbetweenfunctionsthroughinformationexchangeandmutualadjustmentswhenparticipatinginthesameprocess.Thefrequencyandintensityofinformationexchangebetweentwofunctionscanrangefromnone(completelyinsulated)toextensive(highlycollaborative).12/14/202238BusinessProcessRe-engineeringTheDegreeofCollaborationDiABCABCABCABCLowDegreeofCollaborationHighLowDegreeofMediationHighinsulatedcollaborativeindirectdirect12/14/202239BusinessProcessRe-engineeringABCABCABCABCLowDegrinsulatedcollaborativeindirectdirectABCABCABCABCLowDegreeofCollaborationHighLowDegreeofMediationHightCouplingPattern:FunctionparticipateintheprocesssequentiallywithnomutualinformationexchangeEnvironment:ParticipatingfunctionsaresequentiallydependentandfacelowlevelofuncertaintyinI/Orequirements.Example:Salesfunction(A)sendscustomerordertoinventoryfunction(B)forshipmentCouplingPattern:Functionparticipateintheprocesssequentiallywithmutualinforma-tionexchangeEnvironment:ParticipatingfunctionsaresequentiallydependentandfacehighlevelofuncertaintyinI/Orequirements.Example:Engineeringfunction(A)providesmanufacturingdesigntoproduction(B)withfrequentconsultationbetweenAandB.CouplingPattern:FunctionparticipatedirectlyinproducingtheprocessoutcomewithnomutualinformationexchangeEnvironment:ParticipatingfunctionsaresequentiallyindependentandfacelowlevelofuncertaintyinI/Orequirements.Example:Recruitingworkers(A)andequip-mentrequisition(B)participatedirectlyinestablishinganewplantwithnoconsultationbetweenAandB.CouplingPattern:FunctionparticipatedirectlyinproducingtheprocessoutcomewithmutualinformationexchangeEnvironment:ParticipatingfunctionsaresequentiallyindependentandfacehighlevelofuncertaintyinI/Orequirements.Example:Advertising(A)andproduction(B)directlyparticipateinlaunchinganewproductwithfrequentconsultationbetweenAandB.12/14/202240BusinessProcessRe-engineeringinsulatedcollaborativeindirectFunctionalIntegrationReducingDegreeofMediationthroughITredesigningbusinessprocessfromanindirectpatterntoadirectpatternpermittingtwoormorefunctionstoproceedindependentlytheuseofsharedcomputingresourcesisthekeypointofreducingthemediationlevelofaprocess.sharedinformationisnotdepleteduponusageandmayretainitsvaluetoadditionalfunctionsafteraccessbytheinitialuser.12/14/202241BusinessProcessRe-engineeringFunctionalIntegrationReducingEnhancingDegreeofCollaborationthroughITCollaborationsbetweenfunctionsarenotalwaysnecessaryITtechnologieshavegreatpotentialforimprovingcollaborationbetweenfunctionsinvolvedinabusinessprocess.TelecommunicationInternete-mailgroupwareotherOAapplications12/14/202242BusinessProcessRe-engineeringEnhancingDegreeofCollaboratABCABCABCDBABCDBPathXPrimarilythroughapplicationofcommunicationtechnologyPathX*PathYPrimarilythroughapplicationofsharedinformationresourcesPathY*PathZApplicationofcommunicationtechnologyandsharedinformationresourcesLowDegreeofCollaborationHighLowDegreeofMediationHighIIIIIIIV12/14/202243BusinessProcessRe-engineeringABCABCABCDBABCDBPathXPrimarilABCABCABCDBABCDBPathXPrimarilythroughapplicationofcommunicationtechnologyPathX*PathYPrimarilythroughapplicationofsharedinformationresourcesPathY*PathZApplicationofcommunicationtechnologyandsharedinformationresourcesLowDegreeofCollaborationHighLowDegreeofMediationHighIIIIIIIVExampleofHP135salespersonsweretrainedtouselaptopcomputertoretrieveinventoryinformationfromcorporatedatabaseduringcustomermeetings.Theyalsomaycommunicatewiththeirpeersandsuperiorstoexchangeinformation.Ahighdegreeofcollaborationwasachievedbetweenmarketinginventoryandsalesfunctions.Results:meetingtimedecrease46%traveltimewascutby13%timewithcustomerincrease27%salesincrease10%ExampleofTIProductdevelopmentisconductedatdifferentcountries:India,Malaysia,Japan,U.S.Globalnetworkandadvancedcomputingresour-cesenabledesignteamsindifferentlocationstosustainahighlevelofcollaborationwithoutsequentialflow.Results:Timeneededtodevelopacalculatordecrease20%soonafterdesigndrawingbegantobesentelectronically,andafurtherdecreaseof17%hasbeenachievedsincethen.12/14/202244BusinessProcessRe-engineeringABCABCABCDBABCDBPathXPrimarilProcessReengineering:ChartingaStrategicPathAstrategicapproachtoProcessReengineeringTherearemanypathsforprocessreengineeringandaguidelineareneededinselectingastrategicpath.Itispossibletochartthe“right”reengineeringpathforthe“wrong”process.Toensurethattherightprocessesareselected,thefirststepoftheBPReffortscallsfortheIdentificationofthosecandidateprocessthatarecriticaltothefirm’sstrategicobjectives.12/14/202245BusinessProcessRe-engineeringProcessReengineering:ChartinProcessReengineering:ChartingaStrategicPathIdentifyingthecriticalprocessValueChain:tracingfromthe“upstream”processassociatedwithinboundlogisticstothe“downstream”processofmarketingsalesandservices.CriticalSuccessFactors(CSF):eachprocesscanbeevaluatedastoitsstrategicrelevance.12/14/202246BusinessProcessRe-engineeringProcessReengineering:ChartinAssessingReengineeringPotentialforaprocessTwohorizontalpaths(XandX*)aresuitableforprocesseswithinsufficientcollaborationandthepotentialforcollaborationenhance-mentishighTwoverticalpaths(YandY*)aresuitableforprocesseswithhighpotentialformediationreductionwheremanysequentialstepscanbeeliminated.12/14/202247BusinessProcessRe-engineeringAssessingReengineeringPotentCollaborationEnhancement:Low

MediationReduction:LowStrategicPath:remaininagivenregionwithnochangesinmediationandcollaborationlevels.ProcessCharacteristics:ithasasuitablemediationpattern,furtherreductioniseitherunfeasibleoruneconomicalandasufficientlevelofcollabora-tiontohandletheuncertaintyencountered.TypicalCandidates:processeswithstepsthataresequentiallydependent,orwithstandardizedphysicalI/Oflowandlittleneedforinformation.Example:Amailsurveymustbecompletelydesignedbeforeprinting.FDAapprovalisrequiredbeforemarketinganewdrug.12/14/202248BusinessProcessRe-engineeringCollaborationEnhancement:LowCollaborationEnhancement:Low

MediationReduction:HighStrategicPath:FollowpathYorY*toreducelevelofmediation.ProcessCharacteristics:ithasasuitablemediationpattern,furtherreductionisnotneeded.However,thedegreeofmediationintheprocesscanbereducedtosimplifytheprocess.TypicalCandidates:complicatedoperationalprocesseswithinformationalI/Oprocess.Example:ThereengineeringaccountspayableprocessatFORD.ThereengineeredmortgageapprovalprocessatBank.12/14/202249BusinessProcessRe-engineeringCollaborationEnhancement:LowCollaborationEnhancement:High

MediationReduction:LowStrategicPath:FollowpathXorX*toenhancecollaboration.ProcessCharacteristics:ithasasuitablemediationpattern,furtherreductioniseitherunfeasibleoruneconomical.Howeverthelevelofcollaborationisinsufficientandcanbeenhancedtohandletheuncertaintyencountered.TypicalCandidates:managerialprocesswithparti-cipatingfunctioninseparatedepartmentinanorga-nizationfacingincreasingenvironmentuncertainty.Example:improvedcollaborationbetweenengine-eringandproduction.12/14/202250BusinessProcessRe-engineeringCollaborationEnhancement:HigCollaborationEnhancement:High

MediationReduction:HighStrategicPath:FollowpathZtoenhancecollabo-rationandreducemediationsimultaneously.ProcessCharacteristics:Thedegreeofmediationcanbereducedtosimplifyit.Thecollaborationisinsufficientandcanbeenhancedtohandletheuncertaintyencountered.TypicalCandidates:Processwithcomplicatedstepsattached.Complexoperationalprocessesinanenvironmentofincreasinguncertainty.Example:Improvedprocessofnewproductdevelopment:collaborationwasenhancedbyIT,andmediationlevelreducedbyteamwork.12/14/202251BusinessProcessRe-engineeringCollaborationEnhancement:HigBasisofBPR

BasisofBPRWhatisBPRWhatthetermBPRmeans?Whereithascomefrom?Whatdistinguishesitfromothermanage-mentphilosophies?Whyithascapturedtheimaginationofsomanymanagers?12/14/202253BusinessProcessRe-engineeringWhatisBPRWhatthetermBPRmHowthetraditionalorganizationworksAtriangleisusedtorepresentanorganization-themajorityofpeopleworklowerdowntheorganizationandthemanagementhierarchyextendsallthewaytothepinnacle.Theorganizationismadeupofanumberofsub-organizationintheformofgroupsofspecialistsknownasfunctions,eachofwhichhasitsownmanagementhierarchy.12/14/202254BusinessProcessRe-engineeringHowthetraditionalorganizatiFunctionalHierarchyR&DManagementfocushastraditionallybeenonthefunctionalhierarchy.ProductionSales12/14/202255BusinessProcessRe-engineeringFunctionalHierarchyR&DManagemFunctionalHierarchyTherearemanydifferentdepartmentsandpeoplearerecruitedintoonefunctionaldepartment;Eachdepartmentisresponsibleforundertakenonepartofthewholetasks;Thischainoflinkeddepartmentallowsforspecialization;Thismodelissowidelyestablishedthatitisrarelyquestioned.12/14/202256BusinessProcessRe-engineeringFunctionalHierarchyThereareTheStrengthsfewerspecialistmayservicetheneedsofanumberofareas;takingthelatestthinkinginparticularareasintotheorganization;developingcareerswhichenhancespecialistexcellenceinaparticularfield,suchasMarketing,Production,ITorHumanResources;12/14/202257BusinessProcessRe-engineeringTheStrengthsfewerspecialistTheWeaknessesThefocusoftheorganizationcanbethe‘boss’notthecustomer;Noonehasthecontroloverthe‘horizontal’processandco-ordinationisweak;Nosinglepointofcontact;Unproductiveworkexistsbecauseoffunctionalboundarieswhichresultinmanytasksbeingdonesimplytosatisfytheinternaldemandsoftheit’sownorganization.12/14/202258BusinessProcessRe-engineeringTheWeaknessesThefocusoftheGetridofunnecessarystepsWhenadoptaprocessapproachyoumayfind:Manyofthestepsinyourworkhavenothingtodowithdeliveringtherequiredoutcomes;Itisdifficulttoidentifywhysomestepsexistatall;Oftenitisfornobetterreasonthanbecausetheyalwayshave;Gettingridofalltheseunnecessarystepsmeansquickercustomerserviceatconsiderablylowercost.Doingthisusuallycutsacrossthefunctionaldepartment.12/14/202259BusinessProcessRe-engineeringGetridofunnecessarystepsWhProcessOrientedApproachR&DBPRemphasizesa“process”viewwhichcutsacrossthefunctionalhierarchiestoreachthecustomer.ProductionSalesCustomer12/14/202260BusinessProcessRe-engineeringProcessOrientedApproachR&DBPWhatprocessfocusmeansAprocessfocusmeanslookingatthewayacustomerorderisfulfilled,anewproductcreated,oramarketingplandeveloped,withoutconcernforfunctionalboundariesorspecialization.12/14/202261BusinessProcessRe-engineeringWhatprocessfocusmeansAprocWhatisaprocessProcess:Acontinuousandregularactionorsuccessionofactions,takingplaceorcarriedoninadefinitemanner,andleadingtotheaccomplishmentofsomeresult;acontinuousoperationorseriesofoperations.Processhasaninputandanoutput;madeupofasequenceoftasksthroughwhichthisinputpassestobecomeanoutput12/14/202262BusinessProcessRe-engineeringWhatisaprocessProcess:AcoValueChainModelofM.PorterCompanyInfrastructureHumanresourcesTechnologyDevelopmentProcurementSupportActivitiesPrimaryActivitiesInboundLogisticsOperationsMarketingSalesOutboundLogisticsCustomerServiceMargInMargInValue-addingActivities12/14/202263BusinessProcessRe-engineeringValueChainModelofM.PorterScaleandScopeofProcessThescaleoftheprocessdependsonwhatitisperforming,which