BUSINESS PROCESS
RE-ENGINEERING
(BPR)
BY WALIMBE ABHAY H.
•INTRODUCTION TO BPR
•Definition:
•
According to hammer &
Champ, BPR is defined as “The
fundamental rethinking & radical
redesign of business process to
achieve dramatic improvement in
critical contemporary measures of
performance such as cost, quality,
service & speed. ”
FEATURES OF BPR
Workers make decisions.
Several jobs are combined into one.
Steps in the process are performed in
natural order.
Process has multiple versions.
Work is performed where it makes the
most sense.
Checks & controls are reduced.
Reconciliation is minimized.
A case manager provides a single
point of contact.
Work unit changes: functional to
process.
Structure changes: hierarchical to
flat.
Managers change: Supervisor to
coaches.
ORGANIZATION STRUCTURE
Classical IE Based BPR Based
Hierarchical management Flatterened & shortened chain
of command control
Vertical division of labour, Decentralization of
centralization of decisions responsibilities & of decision
making
Separation of categories by Blurring of status differences
status & trend towards more status
equity
Technical division of labour & Enlargement of task toward
atomistic & service strict task more professional division of
assignment work
Specialization & Multidisciplinary team
compartmentalization of working
knowledge
Classical IE Based BPR Based
Loose ties with supplier Connectivity with suppliers &
subcontractors
Loose ties with consumer Great sensitivity to market
demand, to buyers &
consumers & all stock
Standardized products & holders
Structural, technological &
production processes. organizational flexibility.
Overall routines & rigidities Continuous search for
innovation & value additions.
Production management is Human resource department
central becomes central
TQM , JIT & BPR
TQM seeks to create an atmosphere where
‘Doing right thing on right time in right
quality’ becomes the goal. Quality is
designed & built in each activity rather than
being inspected after the event.
JIT is a mfg. philosophy that calls for total
reorganization of operations in order to
minimize non value adding & wasted
activities & balance operations to demand.
BPR is a mean by which an organization can
bring radical change in level of cost, cycle
time, service & quality by application of
various tools & techniques that focus on
business as a set of related customer
oriented core business process rather than
a set of organizational functions.
BPR differs from TQM & JIT in
following ways:
BPR provides a new definition of operational
excellence which helps to destroy all the old
tenets. This provides internal drivers &
external focus so that customer & supplier
receive more attention.
BPR pushes TQM & JIT approaches both
upstream & downstream to customer &
supplier in order to either add value in supply
chain more effectively or to penetrate into
market more aggressively.
BPR requires corporate leaders not only to
discover new avenues but to eliminate non-
value added activities by challenging very
purpose, principles & the basic assumptions
on which the systems are founded.
Traditional TQM & JIT often fail to break
functional barriers & engage the individuals
in improving process.
BPR examines & analyses work
flow structure of a process &
reconstructs them with
capabilities of IT systems as
necessary.
Thus, it can be said
that BPR, as a strategic cross
functional initiative must be
integrated with others if it is to
succeed. So there is a strong
linkage between TQM, JIT & BPR &
all aiming towards enhancing
competitiveness of organization.
So, BPR is TPQM i.e. Total
productivity & quality
management which is in line with
CASE STUDY:
COMPANY: MAHINDRA &
MAHINDRA [Igatpuri and Kandivili
(MH)]
Problems before BPR started:
Manufacturing inefficiencies.
Poor productivity.
Long production cycle.
Sub-optimal output.
RE-ENGINEERING
PROCESS:
Examine customer’s needs.
Define strategic & tactical sets of
goals.
Strategic- subjective like
effectiveness, efficiency etc. Tactical-
objective like reduce lead time,
inventories, costs etc.
Identify & define relevant
applicable principles of specific
technique being used.
Establish new set of activities/
processes & define them in detail.
CHANGES REQUIRED ON
BEHAVIORAL SIDE IN RE-
ENGINEERING:
Team work & communication.
Introduce new changes with
patience & persuasion.
To lower resistance to new
philosophy & unfamiliar methods, 80
Hrs of training was prescribed for
every employee.
Courses in cultural orientation ,
personality profiles, team building &
interpersonal skills.
REWARDS OF BPR:
Factory lead time reduced.
WIP inventory turnovers doubled.
Delivered product defect rates
reduced by half.
senior staff began working on the
shop floors.
Around a 100 officers produced 35
engines a day as compared to the
1200 employees producing 70
engines in the pre-BPR days.
M&M realized that it would have to
focus on two issues when
implementing the BPR program:
reengineering the layout and method
of working, and productivity.
CONCLUSION:
BPR must be integrated with TQM &
JIT as there is strong linkage between
them & all aiming towards enhancing
the competitiveness of an
organization.
In today’s competitive environment
three forces viz.. Customer,
competition & change play a
significant role. The traditional
organization can not meet the
present challenges. So BPR plays an
important role to deliver goods &
services at competitive prize, quality
& on time delivery. The benefits of
re-engineering are very significant.
The industrial engineers are the
agents of the change & have several
REFERENCES:
Indian Management Journal,
July- Dec 97, vol36.
Industrial Engineering Journal-
1996, vol XXV.
Industrial Engineering Journal-
1997, vol XXVI.
Industrial Engineering Journal-
2000, vol XXIX.
Industrial Engineering Journal-
2003, vol XXXII.
Industrial Engineering Journal-
2004, vol XXXIII.
THANK YOU.
