turnaround management.pptx
TRANSCRIPT
TURNAROUND MANAGEMENT
BUSINESS PROCESS REENGINEERING
Meaning:
• BPR stands for “Business Process Reengineering”. It refers to the analysis and redesign of workflows both within and between the organisation and the external entities
• BPR is not- downsizing, restructuring, reorganisation, automation, new technology, etc. It is the examination and change of five components of the business- Strategy, Processes, Technology, Organisation, and Culture.
Definition:
• Business Process Reengineering has been defined as: “fundamental rethinking and radical redesign of business processes to bring about dramatic improvements in performance”.
Elements of BPR:
• Fundamental• Radical• Process• Dramatic
Features of BPR:
• Several jobs• Employees empowered• Step in business process• Multiple versions• Reconciliation• Hybrid centralized/decentralized• Process- oriented• Creative use of IT
Objectives of BPR:
• Costumer focus• Speed• Compression• Flexibility• Innovation• Productivity
Need of BPR:
• Rapid change• Well informed• Intense competition• Customer• Change• Technology• Fragmented piecemeal system
Steps in BPR implementation:
• Develop the business• Identify the process to Redesigned• Understand and Measure the existing process• Identify IT levers• Design and build a Prototype of the New
Process
Central Thrust of BPR:
• By eliminating the redundant stages • By drastically simplifying and rationalizing
work• By coordinating the entire process• By eliminating unwanted steps• By simplifying the system• By maintaining continuous effort
Advantages of BPR:
• Increase effectiveness• Helps to improve efficiency• Reduce cost • Meaningful job for employees• Improvement in organisational approach• Growth of business• Simplification of processes• Enterprise integration
Disadvantages of BPR:
• Long and complex process• Not suitable for small businesses• Resistance• Not an effective way to focus • Gradual and increamental• Culturally biased • Business processes not redesigned
IT and BPR:
• Manage BPR project• Link between various BPR drives• Provide platform• Cost benefit• Study complete supply chain• Judge impact of reengineered processes
TQM and BPR:ATTRIBUTE TQM BPR
MEANING Reducing or eliminating errors
Innovation
CHANGE Incremental change and gradual improvement
Radical redesign and drastic improvement
PARTICIPATION Bottom -up Top-down
FLEXIBILITY/ STANDARDIZATION
Standardization of processes
Flexibility in operations
EXISTING/ NEW PROCESS Changing existing process Changing new process
TOOLS Usage of statistical process control
Enabling role of IT
FOCUS Current practice Start again
INVESTMENT Small Large
SPEED Small steps Long steps
PARTICIPATION Each employee Selected few