The business process reengineering

The caper knead reengineeringSummaryIn this report we be discussing the two approaches related to the concern operation it is base every(prenominal)y a critical purpose that every good and make headwaying enterprise has to take in short or long digest.The BPR (Business process reengineering) and the business pattern (creating a saucy process) and the deviance in mingled with, is the topic in this report.Business work at Modeling (BPM) represents the drill of processes of a business. Purpose to implement a business process model is analyze and improve the enterprise activities regarding the core business. It is ordinarily performed in an enterprise by quick-witted business analysts and business line managers, who seeks continuous process progression and efficiency. Three major types of processes involved in a business areManagement fulfilles useable ProcessesSupporting ProcessesBusiness Process Reengineering (BPR) is a kind of method of management practiti mavenrs to improve business efficiency. The fundamentals of Business Process Reengineering are to look at the business processes from a vindicated slate perspective and to find out how to reconstruct these processes to increase the efficiency of the business. Reengineering is planing, revising and repersuasion of business processes to fulfil exist, quality and amphetamine or service point efficiency. Business Process Reengineering (BRP) consists of sequence strategies to promote the innovation and resulting excellence in competition, market place and profitability of the enterprise. A dim-witted business process reengineering is better described in following four phases of the cycle i.e.Identification of a ProcessReview, Update and Analyze AS IS invention TO BETesting and ImplementationDEFO model, and all other methodologies related to BPR are discussed hence their implementation phases, results then the discussion on results and the conclusion in which the difference amid twain of these have been highlighted.1. Introduction / BackgroundBusiness processes are the essential part of any kind of business. They are created by the help of business model and show the direction towards which a business flows.In this report, two basic business models are discussed in detail, difference in the approach is explained and what and how to prompt with these models has been described. The two business model which are discussed here areBusiness Process ReengineeringBusiness Process and Model1.1 Business Process ReengineeringBusiness Process Reengineering (BPR) is a kind of method of management practitioners to improve business efficiency. The fundamentals of Business Process Reengineering are to look at the business processes from a clean slate perspective and to find out how to reconstruct these processes to increase the efficiency of the business.Reengineering is redesigning, revising and rethinking of business processes to achieve cost, quality and speed or service or iented efficiency. Business Process Reengineering (BRP) consists of sequence strategies to promote the innovation and resulting excellence in competition, market place and profitability of the enterprise.A simple business process reengineering is best described in following four phases of the cycle i.e.1.2 Business Process Modeling (Creating a new process)Business Process Modeling (BPM) represents the activity of processes of a business. Purpose to implement a business process model is analyze and improve the enterprise activities regarding the core business.It is commonly performed in an enterprise by technological business analysts and business line managers, who seeks continuous process improvement and efficiency.Three major types of processes involved in a business areManagement Processes usable ProcessesSupporting ProcessesThese processes rear end be further sub divided into numerous sub processes and sequence of activities. These sub processes have their own attri howeveres and also contribute to achieve the objectives and goal of the major process.2. Problem Area / ScopeThis report deals with the difference between two business processes i.e. Business process reengineering and business model (creating a new process).2.1 Problem AreaReport investigates the following problematic areasHow to deal with business process reengineering?How to implement it in an enterprise?How to design a business model for a new process?What is the difference between the approaches?How to improve a business using these models?2.2 ScopeReport deals primarily with the business process models specially focusing the approach of the two models i.e. Business Process Reengineering and Business Modeling (creating a new process).Business Process is a vast sector with numerous methods and explanations. Report only deals with the Business Process Reengineering and Business Modeling (creating a new process) and how does it impact the working of an enterprise.3. MethodsFive methodologie s are summarized after the basic BPR discovering. A few BPR methodologies from modern literature are as follows methodology 1Develop imaging strategyCreate in demand(p) culture compound Improve enterpriseDevelop technology solutionsMethodology 2Determine Customer Requirements Goals for the ProcessMap and Measure the Existing ProcessAnalyze and transmute Existing ProcessDesign a Reengineered ProcessImplement the Reengineered ProcessMethodology3Set DirectionBaseline and BenchmarkCreate the stackLaunch Problem Solving ProjectsDesign ImprovementsImplement ChangeEmbed Continuous ImprovementMethodology 4Motivating ReengineeringJustifying ReengineeringPlanning ReengineeringSetting up for ReengineeringAs Is Description AnalysisTo-Be Design and ValidationImplementationMethodology 5PreparationIdentificationVisionTechnical Social designwork shift4. ResultsProcess reengineering emerged as an intelligent and very successful technique to refresh the electric current running processes i n an agreement because business can be apply as a common term, Business Process Reengineering BPR is now a famous term plus technique in an organization who is trying to animize the current processes whether its a service organization or consumer product manufacturer.4.1 Reengineering ProcessReengineering is the elementary rethinking and radical redesign of business processes to achieve remarkable improvements in decisive, contemporary measures of mathematical process such as cost, quality, service and speed.BPR advocates that enterprises go back to the basics and reexamine their very ancestry. As for results BPR is clearly not for companies who want a 10% improvement, it is for the ones that shoot a ten-fold increase. The last but the well-nigh principal(prenominal) of the four key words is the word-process. BPR more focuses on processes and not on tasks, jobs or people. It endeavors to redesign the strategic and value added processes that surpass organizational boundaries.4 .2 Implementing Reengineering ProcessAccording to many in the BPR field reengineering should apply energies in right direction and focus on processes and not be limited to thinking about the organizations.Currently people in an organization think individually about the particular department. So companies should separate the processes rather using the department names that they do such that they express the beginning and end states. These names should imply to all the work that gets done between the start and finish points. i.e, order fulfillment can be called order to payment process.Talking about the importance of processes just as companies have organization charts, they should also have what are called process maps or workflow diagrams to upset a picture of how work flows through the enterprise.Process mapping assists in identifying your current As-Is business processes and can be used to provide a To-Be roadmap for reengineering your product and service business enterprise pl aces wishless to say it logically helps to have a native look on the whole process cycle and of course it can also be used to monitor the reengineering as well. It is the significant merge that your reengineering team can apply to better understand and radically improve your business processes and bottom-line execution of instrument. Possessing identified and mapped the processes, deciding which ones need to be reengineered and in what order is the million-dollar question. loosely they make their choices based on three criteriaDysfunction which processes are functioning the worst or which process is the bottle-neck?Importance which are the most critical and important in terms of customer satisfactionFeasibility which are the processes that are most likely to be successfully reengineered?This section will give an overview of creating a new business process this section provides a guide to creating an initial, as is or baseline model, in other words the current situation.4.3 Com ponents of Business ProcessAn as is or baseline model gives an overall picture of how the process works, now. Any structural, organizational and technological weak points and bottlenecks can then be identified, along with possible improvements at the next stage.You will need the following information before you start to create a new business processThe desired outcome of the process.The start and end points (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 phaseThe starting signal phase of the process will involve a lot of positioning and repositioning of events and activities, so make sure you use a method that is flexible and easily changed. Use visual aids if youre working with a group of users, it must be communicated to each user.4.5 Second phaseOnce you have formal an agreed sequence of events, you can create it as a flowchart on generic software or on specialized proprietary software.At this stage, need to check your model with the users by carrying out live observations of the sequence should be in practice.4.6 Symbols and notationThe diagrammatical representation of Business Process is commonly notation.There is no definitive system for Business Process creation notation, although efforts persist to standardize one.The Business Process Notation system is an example of an approach to establish a standard BP notation system.Organizations may develop their own notation systems or use the notation of their chosen own/different way.4.7 MethodologyA combined methodology has been extracted from the five methodologies previously presented and an IDEF0 model was developed and for the sake of briefness, we have shown only the major activities in the IDEF0 model in manikin 1. In the following section, we deal with the details of the methodology.4.7.1 Activity 1 Prepare for ReengineeringIf you fail to plan, you plan to fail. Planning and preparation are vital factors for any activity or event to be successful and obviously in reengineering it is done too. Before executing reengineering, the question, Is BPR necessary? There should be a noteworthy need for the process to be reengineered. The validation of this need marks the beginning of the preparation activity. This activity begins with the development of executive consensus on the importance of reengineering and the link between do business goals and reengineering projects. A cross-functional team is established with a game plan for the process of reengineering. While forming the cross-functional team, steps should be taken to ensure that the organization continues to function in the absence of several key players. Another important factor to be considered while establishing the strategic goals for the reengineering effort is to make it your first priority to understand the expectations of your customers and where your existing process falls short of meeting those requirements. Create or study the existing vision of the enterprise as a well-defined vision will sustain a fellowships resolve through the stress of the reengineering process.4.7.2 Activity 2 Map and Analyze As-Is ProcessBefore the reengineering team can plump to redesign the process, they should understand the existing process. While some organizations which are in dire straits might go the other way, attempt a new process design while totally ignoring the existing processes, most organizations need to map the existing processes it helps to analyze and improve on it to design new processes. The important feature of BPR is that the improvement should provide dramatic results.Many people do not understand the value of an As-is outline and rather prefer to spend a larger chunk of their valuable time on designing the To-Be model directly.The main objective of this phase is to identify bottle necks (anything tha t prevents the process from achieving desired results and in particular information transfer between organizations or people) and value adding processes. Creation and documentation of Activity and Process models initiates it. Then, the amount of time that each activity takes and the cost that each activity requires in terms of resources is calculated through simulation and activity based costing (ABC). All the footing required having been completed the processes that need to be reengineered are identified.4.7.3 Activity 3 Design To-Be processThe objective of this phase is to produce one or more alternatives to the current situation, which satisfy the strategic goals of the enterprise. Benchmarking is the initial step in this phase. Benchmarking is the comparing of both the performance of the organizations processes and the way those processes is conducted with those relevant peer organizations to obtain ideas for improvement. Other organizations need not be competitors or even from the same industry. Innovative and effective methods should be appreciated regardless of the source.Having identified the potential improvements to the existing processes, the development of the To-Be models is done using the various modeling methods available, bearing in mind the principles of process design. Then, similar to the As-Is model, simulations are performed and ABC to analyze factors like the time and cost involved. This activity is an iterative process and it takes a lot of patience and time.4.7.4 Activity 4 Implement Reengineered ProcessThe implementation stage is where reengineering efforts meet the most confrontation and hence it is by far the most difficult one. If we expect that the environment would be conducive to the reengineering effort we are sadly mistaken. The question that confronts us would be, If BPR promises such breath taking results then why wasnt it adopted much earlier? When so much time and effort is spent on analyzing the current processes, redesign ing them and planning the migration, it would indeed be practical to run a culture change program at the same time with all the planning and preparation. This plan must support the organizational structure, information systems, and the business policies and procedures with the redesigned processes. The IDEF models that were created in the As-Is can be mapped to those created during the To-Be and an initial list of change requirements generated. Additional requirements for the construction of the To-Be components can be added and the result organized into a Work Breakdown Structure (WBS). modern developments in BPR software technologies enable automatic migration of these WBS activity/relationships into a process modeling environment. Using prototyping and simulation techniques, the transition plan is validated and its buffer store versions are designed and demonstrated.4.7.5 Activity 5 Improve Process ContinuouslyA process cannot be reengineered overnight. A very vital part in th e success of every reengineering effort lies in improving the reengineered process continuously. Monitoring, first and important step here. Two things have to be monitored the progress of action and the results. The progress of action is measured by seeing how much more informed the people feel, how much more commitment the management shows and how well the change teams are accepted in the broader perspective of the organization. This can be achieved by conducting attitude surveys and discrete fireside chats with those initially not directly involved with the change. As for observe the results, the monitoring should include such measures as employee attitudes, customer expectations, supplier responsiveness etc. Communication is strengthened throughout the organization, ongoing measurement is initiated, team reviewing of performance against clearly defined targets is done and a feedback loop is set up wherein the process is reviewed and redesigned. Thus continuous improvement of pe rformance is ensured through a performance tracking system and application of problem solving skills. Continuous improvement (TQM) and BPR have always been considered mutually exclusive to each other. that on the contrary, if performed simultaneously they would complement each other wonderfully well. In fact TQM can be used as a tool to handle the various problems encountered during the BPR effort and to continuously improve the process.5.DiscussionThis is my 2nd report another report was made before on the same topic but due to not treatment the references correctly it got 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 kind of report one must study the literature related to the topic and then if we use the chunk of that literature or discuss any idea from it the references must be taken care in a systematic way otherwise it can create a problem.A zealous customer focus, superior pro cess design and a strong and motivated leadership are vital ingredients to the recipe for the success of any business corporation. It is the key that every organization should earn to accomplish these prerequisites to success. It advocates demanding hard work and activates the people involved to not only to change what they do but targets at altering their basic way of thinking itself. And on the other hand the new process is more or like same to the BPR but in new modeling there is no previous or existing process to be considered and in modeling the more focus is on the model if the model is understandable attainable then further its implementation and business can be created accordingly.6. ConclusionSo by defining both of the aspects the question again lingers that what is the difference in between and according to the all study and research and by looking at the real life case studies, I came to a point to say that it all 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 hours and a lot of money first to come on the point and take the decision that the company will do the reengineering and then by doing intense process flow analysis and by studying the work break down structures the enterprise took the decision which type of reengineering technique should be used.The bottom-line is it always depends on the companys nature, the business situation it is going through. The enterprise managements experience how they take a situation and how right they do the studies rather homework necessary to take the right decision.As we look the technical aspect of both process reengineering and creating a new process both of the sides needs sound management and technical expertise and yes the enough funds to go through them.In reengineering we have to mold the existing processes but creating a new process is to come up with a total new idea which will be the part of main process stream of the enterprise. But I think its a long debate sometimes the reengineering is more difficult then to create a new process because if one process is reengineered the enterprise has to do other alters as well to align the reengineered side with the whole stream and this may cost more than the company expects. Its true that reengineering turn up to be a success all-over the world among every industry service or production. But many companies could not make it with it.New process is sometimes necessary like it is necessary if there is a total new range of product line, technology change etc. then a thorough study to fix the new process in the existing process stream.7. RecommendationsBusiness process reengineering is an effective tool for management practitioners. It helps in business improvement and further enhances business process efficiency.Continuous improvement process includes the process reengineer ing and encompasses all the parameters with in the process re designing and reengineering.This method can give huge returns. This method began as a private sector technique to help organizations fundamentally rethink how they do their work in order to dramatically improve customer service, cut operational costs, and become world-class competitors.ReferencesFeldmann Clarence.G, (1998),The Practical Guide to Business Process Reengineering using IDEF0., Dorset House Publishing, New York.Modelling and analysis of business process reengineering 2002, vol. 40, no. 11, 25212546 GUNASEKARAN and B. KOBUBusiness Process Reengineering, The Creation and Implementation of a Methodology Brian Fitzgerald and Ciaran Murphy 1996.Bnet.com