1、Basis of BPR,天馬行空官方博客： ；QQ:1318241189；QQ群：175569632,2020年8月28日,Business Process Re-engineering,2,What is BPR,What the term BPR means? Where it has come from? What distinguishes it from other manage-ment philosophies? Why it has captured the imagination of so many managers?,2020年8月28日,Business Proces

2、s Re-engineering,3,How the traditional organization works,A triangle is used to represent an organization - the majority of people work lower down the organization and the management hierarchy extends all the way to the pinnacle. The organization is made up of a number of sub-organization in the for

3、m of groups of specialists known as functions, each of which has its own management hierarchy.,2020年8月28日,Business Process Re-engineering,4,Functional Hierarchy,R Each department is responsible for undertaken one part of the whole tasks; This chain of linked department allows for specialization; Thi

4、s model is so widely established that it is rarely questioned.,2020年8月28日,Business Process Re-engineering,6,The Strengths,fewer specialist may service the needs of a number of areas; taking the latest thinking in particular areas into the organization; developing careers which enhance specialist exc

5、ellence in a particular field, such as Marketing, Production, IT or Human Resources;,2020年8月28日,Business Process Re-engineering,7,The Weaknesses,The focus of the organization can be the boss not the customer; No one has the control over the horizontal process and co-ordination is weak; No single poi

6、nt of contact; Unproductive work exists because of functional boundaries which result in many tasks being done simply to satisfy the internal demands of the its own organization.,2020年8月28日,Business Process Re-engineering,8,Get rid of unnecessary steps,When adopt a process approach you may find: Man

7、y of the steps in your work have nothing to do with delivering the required outcomes; It is difficult to identify why some steps exist at all; Often it is for no better reason than because they always have; Getting rid of all these unnecessary steps means quicker customer service at considerably low

8、er cost. Doing this usually cuts across the functional department.,2020年8月28日,Business Process Re-engineering,9,Process Oriented Approach,R a continuous operation or series of operations. Process has an input and an output; made up of a sequence of tasks through which this input passes to become an

9、output,2020年8月28日,Business Process Re-engineering,12,Value Chain Model of M. Porter,Company Infrastructure,Human resources,Technology Development,Procurement,Support Activities,Primary Activities,Inbound Logistics,Operations,Marketing Sales,Outbound Logistics,Customer Service,M a r g I n,M a r g I n

10、,Value-adding Activities,2020年8月28日,Business Process Re-engineering,13,Scale and Scope of Process,The scale of the process depends on what it is performing, which could be a very simple set of tasks or a highly complex set of interrelated activities; The scope of a process is concerned with the exte

11、nt to which it crosses organizational units ( functions or departments ); A process with a broad scope is likely to cross a number of functions or department; If the scale and scope are wide ranging, a great pay-off might be expected.,2020年8月28日,Business Process Re-engineering,14,New Product vs. New

12、 Process,In the past century the economic winner were those who invented new products; But, in the 21st century sustainable competitive advantage will come more out of new process technologies and much less out of new products technologies; What used to be primary (inventing new products) becomes se

13、condary, and what used to be secondary (inventing and perfecting new process) becomes primary,2020年8月28日,Business Process Re-engineering,15,Levels of process,Strategic Processes,Operational Processes,Enabling processes,2020年8月28日,Business Process Re-engineering,16,Levels of process,Strategic process

14、es are those process by which the organization plans for and develop its future, such as strategy planning, products/service development, new process development ; Operational processes are those by which the organi- zation carries out its regular day-to-day functions, such as sales, order entrain,

15、scheduling, production ; Enabling processes are those by which enable strate-gic and operational processes to be carried out, such as HRM, accounting, MIS, ;,2020年8月28日,Business Process Re-engineering,17,What is BPR,BPR is an improvement philosophy. It aims to achieve step improvements in performanc

16、e by redesigning the processes through which an organization operates, maximizing their value-added content and minimizing everything else. This process can be at an individual process level or to the whole organization. Critical analysis radical redesign of existing business process achieving break

17、through in performance measures,2020年8月28日,Business Process Re-engineering,18,Business philosophy comparisons,Focus BPR: process, minimizing of non value - added activities; TQM: quality, getting things right first time JIT: inventories, waste elimination, throughput; CE: new product development, re

18、ducing time to market, increasing quality;,2020年8月28日,Business Process Re-engineering,19,Business philosophy comparisons,Improvement scale: BPR: radical improvement; TQM: continuous improvement; JIT: continuous improvement; CE: radical improvement;,2020年8月28日,Business Process Re-engineering,20,Busin

19、ess philosophy comparisons,Organization: BPR: process based; TQM: not change organizational structure, with common goals, across functions; JIT: change shop-floor and team structure; CE: process based (product development),2020年8月28日,Business Process Re-engineering,21,Business philosophy comparisons

20、,Customer focus: BPR: outcomes driven; TQM: internal and external satisfaction; JIT: initiator of action, pulls production; SE: internal partnership;,2020年8月28日,Business Process Re-engineering,22,Process focus: BPR: create better processes from a clean sheet or systematic design; TQC: control and me

21、asurement of improving quality JIT: workflow/throughput, efficiency SE: ensuring that marketing, R,Business philosophy comparisons,2020年8月28日,Business Process Re-engineering,23,Techniques: BPR: Process maps, benchmarking, self- assessment, creative thinking; TQM: Process maps, benchmarking, self- as

22、sessment; JIT: Visibility, Kanban; SE: program teams, CAD/CAM,Business philosophy comparisons,2020年8月28日,Business Process Re-engineering,24,Continuous Improvement vs. Radical Change,BPR is concerned with radical change rethinking the fundamental principle of working process. Cut the non value-added

23、activities radical performance improvement The goal of BPR, however, might be achieved through continuous incremental improvement based on small changes throughout the org. Small change strategy is far more effective than the complete overhaul approach.,2020年8月28日,Business Process Re-engineering,25,

24、Expectations of improvement,Scope of BPR,Broad,Narrow,Low,High,Unrealistic expectation,Appropriate goals,Missed opportunities,Scale of potential bottom-line improvement,2020年8月28日,Business Process Re-engineering,26,A Example: Ford Accounts Payable Department,Supplier,Purchasing Department,Accounts P

25、ayable,Purchase Order,Purchase Order Copy,Invoice,Payment,Goods,Goods Inward,Receiving Documents,Original Process,2020年8月28日,Business Process Re-engineering,27,BEFORE BPR,A number of paper documents were processed sequentially by 3 functions who participated in the process indirectly to perform many

26、 steps. Purchasing issue a order to supplier and send a copy to accounts payable function. Upon arrival, the inventory function sends a copy of receiving doc to payable function. When the invoice arrives, the payable function matches it against the order and the receiving doc before issuing payment

27、to the supplier. Much efforts are needed to resolve discrepancies, and a total 14 data items must be checked.,2020年8月28日,Business Process Re-engineering,28,A Example: Ford Accounts Payable Department,Supplier,Purchasing Department,Central Database,Purchase Order Copy,Electronic Payment,Goods,Goods I

28、nward,New Process,PO sent electronically,Accounts Payable,2020年8月28日,Business Process Re-engineering,29,AFTER BPR,With only 25% work force, the 3 functions parti-cipate in the process directly by accessing a shared database, eliminating many inter- steps and paper doc. Purchase order is entered into

29、 the database. Upon arrival, the inventory function accesses the database. If a match is found the database is updated. The payable function check the database routinely and prepare payment for the suppliers. Matching is checked by computer and only 3 deta items need to be checked in the process.,20

30、20年8月28日,Business Process Re-engineering,30,A Example: Ford Accounts Payable Department,Outcome of BPR: No invoice was required. The number of date items to be checked was reduced from 14 to 3, and checked automati-cally by computer. Achieved a 75% reduction of employees in Accounts Payable Departme

31、nt.,2020年8月28日,Business Process Re-engineering,31,Summay,Traditional organizational structures have been built around functions and hierarchy which have served enterprises well in the past. How-ever, they have proven slow in responding to the needs of todays competitive environment. BPR challenging

32、many of the assumptions on which organization have been built and puts process firmly on the management agenda. By redesigning these process it is possible to effect step improvement in the performance of these processes.,2020年8月28日,Business Process Re-engineering,32,Information Technology and Busin

33、ess Process,Business process have existed and evolved long before the advent of modern computer. Many organizations are attempting to leverage the advancing IT to facilitate the cooperation between functional units and increase the organizations flexibility and responsiveness. Such efforts often inv

34、olve the fundamental redesign of business processes that cross functional units.,2020年8月28日,Business Process Re-engineering,33,Information Technology and Business Process,As the database technology matured, many organization began ti build systems centered around business process that cross function

35、al units. Telecommunication provide opportunities for improving collaboration among personnel from different functional units in their efforts to accomplish a common business process.,2020年8月28日,Business Process Re-engineering,34,Information Technology and Business Process,To effectively leverage IT

36、 in BPR, certain characteristics of a business process may be changed to achieve dramatic improvement in critical measures of performance. These characteristics is related to how different functions are coupled to each other for producing a common outcomes. The identification of different patterns b

37、ased on these descriptive process characteristics can help set strategic direction and guidelines in efforts to alter the current coupling patterns of business processes through BPR.,2020年8月28日,Business Process Re-engineering,35,Functional Coupling of Business Process,The way various functions are c

38、ooperated in accomplishing a process - i.e., the functional coupling of a process - can be differentiated along two dimensions: degree of mediation and degree of collaboration.,2020年8月28日,Business Process Re-engineering,36,The Degree of Mediation of a Business Process,Many functions are involved in

39、a typical process; Each participating function has inputs and outputs which would either directly facilitates the process outcome or serve as inputs to other functions. The extent of such sequential flow of input and output among these functions in a business process constitutes the degree of mediat

40、ion dimension of a process.,2020年8月28日,Business Process Re-engineering,37,R,K,P,Q,P,T,Q,P,T,Q,T,P,Q,T,P,1,2,3,4,5,High,Low,The Degree of Mediation,2020年8月28日,Business Process Re-engineering,38,The Degree of Collaboration Dimension of a Business Process,The second dimension is related to the degree o

41、f collaboration between functions through information exchange and mutual adjustments when participating in the same process. The frequency and intensity of information exchange between two functions can range from none (completely insulated) to extensive (highly collaborative).,2020年8月28日,Business

42、Process Re-engineering,39,A,B,C,A,B,C,A,B,C,A,B,C,Low Degree of Collaboration High,Low Degree of Mediation High,insulated,collaborative,indirect,direct,2020年8月28日,Business Process Re-engineering,40,insulated,collaborative,indirect,direct,A,B,C,A,B,C,A,B,C,A,B,C,Low Degree of Collaboration High,Low D

43、egree of Mediation Hight,Coupling Pattern: Function participate in the process sequentially with no mutual information exchange Environment: Participating functions are sequentially dependent and face low level of uncertainty in I/O requirements. Example: Sales function (A) sends customer order to i

44、nventory function (B) for shipment,Coupling Pattern: Function participate in the process sequentially with mutual informa-tion exchange Environment: Participating functions are sequentially dependent and face high level of uncertainty in I/O requirements. Example: Engineering function (A) provides m

45、anufacturing design to production (B) with frequent consultation between A and B.,Coupling Pattern: Function participate directly in producing the process outcome with no mutual information exchange Environment: Participating functions are sequentially independent and face low level of uncertainty i

46、n I/O requirements. Example: Recruiting workers (A) and equip-ment requisition (B) participate directly in establishing a new plant with no consultation between A and B.,Coupling Pattern: Function participate directly in producing the process outcome with mutual information exchange Environment: Par

47、ticipating functions are sequentially independent and face high level of uncertainty in I/O requirements. Example: Advertising (A) and production (B) directly participate in launching a new product with frequent consultation between A and B.,2020年8月28日,Business Process Re-engineering,41,Functional I

48、ntegration,Reducing Degree of Mediation through IT redesigning business process from an indirect pattern to a direct pattern permitting two or more functions to proceed independently the use of shared computing resources is the key point of reducing the mediation level of a process. shared informati

49、on is not depleted upon usage and may retain its value to additional functions after access by the initial user.,2020年8月28日,Business Process Re-engineering,42,Enhancing Degree of Collaboration through IT,Collaborations between functions are not always necessary IT technologies have great potential f

50、or improving collaboration between functions involved in a business process. Telecommunication Internet e-mail groupware other OA applications,2020年8月28日,Business Process Re-engineering,43,A,B,C,A,B,C,A,B,C,Path X,Primarily through application of communication technology,Path X*,Path Y,Primarily thr

51、ough application of shared information resources,Path Y*,Path Z,Application of communication technology and shared information resources,Low Degree of Collaboration High,Low Degree of Mediation High,III,II,I,IV,2020年8月28日,Business Process Re-engineering,44,A,B,C,A,B,C,A,B,C,Path X,Primarily through

52、application of communication technology,Path X*,Path Y,Primarily through application of shared information resources,Path Y*,Path Z,Application of communication technology and shared information resources,Low Degree of Collaboration High,Low Degree of Mediation High,III,II,I,IV,Example of HP 135 sal

53、espersons were trained to use laptop computer to retrieve inventory information from corporate database during customer meetings. They also may communicate with their peers and superiors to exchange information. A high degree of collaboration was achieved between marketing inventory and sales functi

54、ons. Results: meeting time decrease 46% travel time was cut by 13% time with customer increase 27% sales increase 10%,Example of TI Product development is conducted at different countries: India, Malaysia, Japan, U.S. Global network and advanced computing resour-ces enable design teams in different

55、locations to sustain a high level of collaboration without sequential flow. Results: Time needed to develop a calculator decrease 20% soon after design drawing began to be sent electronically, and a further decrease of 17% has been achieved since then.,2020年8月28日,Business Process Re-engineering,45,P

56、rocess Reengineering: Charting a Strategic Path,A strategic approach to Process Reengineering There are many paths for process reengineering and a guideline are needed in selecting a strategic path. It is possible to chart the “right” reengineering path for the “wrong” process. To ensure that the ri

57、ght processes are selected, the first step of the BPR efforts calls for the Identification of those candidate process that are critical to the firms strategic objectives.,2020年8月28日,Business Process Re-engineering,46,Process Reengineering: Charting a Strategic Path,Identifying the critical process V

58、alue Chain: tracing from the “upstream” process associated with inbound logistics to the “downstream” process of marketing sales and services. Critical Success Factors (CSF): each process can be evaluated as to its strategic relevance.,2020年8月28日,Business Process Re-engineering,47,Assessing Reengine

59、ering Potential for a process,Two horizontal paths (X and X*) are suitable for processes with insufficient collaboration and the potential for collaboration enhance-ment is high Two vertical paths (Y and Y*) are suitable for processes with high potential for mediation reduction where many sequential steps can be eliminated.,2020年8月28日,Business Process Re-engineering,48,Collaboration Enhancement: LowMediation Reduction: Low,Strategic Path: remain in a given reg