Business Process Reengineering Essay Example for Free

Business Process Reengineering EssayWhenever we regularize our drinks at the coffee shops on a daily basis, we atomic number 18 actually triggering a business process. When the server at the coffee shop takes the arrangement at our table, he allow pass our strays to the kitchen by let loose our orders from one end of the coffee shop to another. Most of the time, the kitchen helperer go out hear the order and activate to prepare. The waiter will thusly go around taking a few other orders. aft(prenominal) he is done with taking orders, he will collect the drinks from the kitchen and serve it to the customers. Customers will then stand up for the drinks. In the event there isnt enough revision for big notes, the waiter will concur to go back to the counter to break the notes into smaller variations in order to return the mark amount of change to the customers. In or so cases, he might deliver the wrong order as he doesnt note down the orders in pen and paper, he jus t passes on the order to the kitchen by shouting. Restaurant scenarioMany years down the road, the coffee shop has earned enough to patch up for a renovation and overhaul. The boss of the coffee shop has unflinching to upgrade the coffee shop to a restaurant. He realises that he need to retrain his provide to operate the restaurant as the methods of operating a restaurant differs from the methods of operating the coffee shop. He also realise that he can incorporate some equipment to help him process orders more(prenominal) efficiently. In summary, he needs to change the way the restaurant does things (processes) and how he does things (Method/tools used to carry out the task). The boss has to do a total revamp of the methods and processes of how he was antecedently used to in the coffee shop. This is what is meant by business process reengineering. In definition, business process is an organizational change in its methods used to design an organization to improve efficiency and effectiveness (Mehta, 2011). Reengineering is the organizational change characterized by drastic process transformation.Concepts BPR focus Objectives In order for companies to operate more efficiently, reduce waste, guard their customers and drive sales, understanding and applying BPR is essential for this change to happen. Firstly, we have to map out the organizations goals, objectives, simple business function, the people they have and the tools they use. The second objective would be to analyse the current process and design/revamp them. By doing so, companies will be able to achieve better ROI and legislate waste. This will help the company to gain competitive advantage over others in its efficiency and also profits (Muharram, 2007). positioning of BPRBPR is a framework designed for companies to adopt. This framework helps to optimize processes by making it more streamlined. A unspoilt example to explain this establish would be the difference between a vertical and c ross in operation(p) organization.Horizontal organizationIn a horizontal organization, the customer interacts only with one party scarcely in a vertical structure, customers might have to deal with different plane sections. Figure 3 shows a customer dealing with his account manager for the application of a loan. In the process, the customer does not need to deal with the different departments involved in the application of a loan. This allows the loan application to be more streamlined (Zigiaris, 2000). A vertical structure is not as efficient as customers will have to deal with several departments to process their requests. In a handle centre environment, when the customer logs a call for a IT issue, the calling department will answer his call and log the case.He will then be transferred to the technical department who will assist him with 1st level troubleshooting. In the event he cannot solve the problem, the matter will be escalated to a level 2 support and also a product sp ecialist. After his issue has been resolved, he will be transferred to the payment department where he will pay for the IT services he has used. After making payment, he will receive an email from the feedback department where they will ask the customer for feedback for the case.This slows down the entire process of resolving the problem from end to end. bingle of the main goal in BPR is to optimize the processes that takes place within the organization and reduce lead time. In order to do so, businesses has to look at its processes from a clean state perspective. For a company to be able to streamline their processes, they have to add look on to their customers through their processes. Processes should maintain its ability to add value to customers. For those processes that do not, we can automate them and put the focus on adding value. This will result in high customer satisfaction, better efficiency, elimination of watse and greater ROI(Park, 2008).BPR Methodologies There are several techniques to business process redesign and reengineering. We will discuss a few in this section. rooster and Champy A major overhaul in the organizations process and structure is one of the keys to ensuring that cost is lowered and service quality is being improved. The means of implemeting these is via the use of information technology. Besides reorganization and using IT to power the business, redesigning the work process and optimizing it, helps the organization to reduce time taken, lower costs and improve quality (Rouse, 2009). A Case study of cut through Motor CompanyFord used to employ viosterol accounts payable staff in the past. These 500 staff are running the tasks of tracking faults between purchase orders, receipts and invoices. After Ford decided to reengineer their process, the number of staff needed reduced from 500 to 125. Their reengineering efforts include * Creating an online database where all purchase orders issued by the buyers are being captured * Goods are being checked when received. The shipment being sent has to match with that in the database. This allows the staff to check if the goods were actual orders being indented. This system of checking eliminates the need to check for faults between purchase orders. * Goods being received will be marked as received and the database is being updated real-time. (Hammer Champy, 2000)Perspective of process reengineering by Hammer and Champy 1. Organize around outcomes, not tasks. 2. Identify all the processes in an organization and prioritize them in order of redesign urgency. 3. Integrate information processing work into the real work that produces the information. 4. Treat geographically outspread resources as though they were centralized. 5. Link parallel activities in the workflow instead of just integrating their results. 6. portion the decision point where the work is performed, and build control into the process. 7. Capture information once and at the source.(Rouse, 2009 ) The methodological analysis preached by Hammer and Champy clearly reflects what was being discussed in the BPR focus and objectives at the start of this report. Its focus is to eliminate waste and also to focus on deliverables that will add value to customers. In order to do so, IT systems can be employed in order to automate processes which do not add value. This point of automation is being reiterated in the case study of Ford Motors. This concept of rethinking and redesigning the business process radically helps us to improve many areas of the business such as lowering costs, improving customer service, consider quality is being maintained and speed up the entire workflow.