Business process re-engineering is the analysis and design of workflows and processes within an organization. According to Davenport (1990) a business process is a set of logically related tasks performed to achieve a defined business outcome.
Re-engineering is the basis for many recent developments in management. The cross-functional team, for example, has become popular because of the desire to re-engineer separate functional tasks into complete cross-functional processes Also, many recent management information systems developments aim to integrate a wide number of business functions.
Enterprise resource planning, supply chain management, knowledge management systems, groupware and collaborative systems, Human Resource Management Systems and customer relationship management.
To make it more Easy just we Split in following Main Clusters.
It starts with a high-level assessment of the organization’s mission, strategic goals, and customer needs. Basic questions are asked, such as “Does our mission need to be redefined? Are our strategic goals aligned with our mission? Who are our customers?” An organization may find that it is operating on questionable assumptions, particularly in terms of the wants and needs of its customers. Only after the organization rethinks what it should be doing, does it go on to decide how best to do it.
In Business Cluster we have to check followings
- The mission – clear definition – clear understanding – clear outcomes
- Strategic Goals
- Customer Need – Understanding and Analysis
- The Business Plan – in depth Analysis – Way of Implementation
- Scope for Corrections
- Deep Pre and Post Study of Business Strategy and Planning
Within the framework of this basic assessment of mission and goals, This Step focuses on the organization’s business processes—the steps and procedures that govern how resources are used to create products and services that meet the needs of particular customers or markets.
As a structured ordering of work steps across time and place, a business process can be decomposed into specific activities, measured, modeled, and improved.
- Work Flow Analysis
- Work Flow Designing
- Work Flow Control
- Work Flow Realignment
- Work Flow Execution
It can also be completely redesigned or eliminated altogether. Re-engineering identifies, analyzes, and re-designs an organization’s core business processes with the aim of achieving dramatic improvements in critical performance measures, such as cost, quality, service, and speed.
Re-engineering 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. Often, no one is responsible for the overall performance of the entire process.
Re-engineering 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, re-engineering focuses on re-designing the process as a whole in order to achieve the greatest possible benefits to the organization and their customers.
The Major Factors are
- Decisions – Line of Control – Authority – Responsibilities – Accountability – Supports
- Information – State of Information – Span of Control – Free Flow – Employs – Process
- Technology – ERP – New Machinery – New Technology – whatever is needed
This drive for realizing dramatic improvements by fundamentally re-thinking how the organization’s work should be done distinguishes re-engineering from process improvement efforts that focus on functional or incremental improvement.
How To Implement A BPR Project
The best way to map and improve the organization’s procedures is to take a top down approach, and not undertake a project in isolation. That means:
- It must be start with mission statements that define the purpose of the organization and describe what sets it apart from Same Industry.
- The vision statement which define where the organization is going, it should provide a clear picture of the desired future position.
- Build these into a clear business strategy thereby depriving the project objectives.
- Defining the behaviors that will enable the organization to achieve its’ Goals.
- Robust key performance Management System for measures to track progress.
- Relating efficiency improvements to the culture of the organization
- Identifying initiatives that will improve performance.
Once these building blocks are in place, the BPR exercise can be started.