Week 8 – Process Redesign (1)

Source / Reference:

1. EL SAWY, Omar A. (2001). Redesigning Enterprises Processes for e-business, Irwin/McGraw-Hill, New York, USA.

Subject:
How to scope an enterprise process?

 Response:

In business process redesign (BPR), there are several key phases. The table below showed the three main phases in BPR with software, namely, scoping the process, modeling, analysis, and redesign of the process, and planning process integration. In this article, we will focus on the first phase, scoping enterprise process.

There are seven chief activities in the phase of scoping the process.

1.      Operationalize process performance targets

To accomplish this step, BPR team should communicate with the process owners and sponsors to understand the trade-offs and priorities. BPR team leader should act as a coordinator in this step.

2.      Define process boundaries

In order to define the process boundaries, BPR team should hold a group meeting. The contents to be discussed are about customers, inputs, outputs, external entities and sub-processes, etc.

3.      Identify key process issues

A certain number of direct process participants such as customers, employees, and external entities and the inputs from them are needed for the sake of identification of key process issues. BPR core team needs to find out the key process issues with the help of inputs from the direct process participants.

4.      Understand best practices and define initial visions

Listing of known best practices should be responsible by a BPR team member based on the interaction with other members. Other team members should get to understand the known best practices through reading, visits, seminars, and consultants if they do not fully comprehend the practices.

5.      Familiarize participants with BPR software

The participants have to familiar with the selected BPR software and there are three types of familiarization for different kinds of participants. Conceptual Familiarization is get to know what the selected BPR software is, an overview of the software, all participant is suitable for this type. Another type is Test Drive which is to understand the use of basic functions of the software. This type is suitable for all BPR core team members. Last type is Learn to Use. The selected team members for modeling and redesign processes suitable for this type.

6.      Outline data collection plan and collect baseline data

There are the steps to achieve this activity. First step is to identify the sources of data which mean determine who will be the primary sources of data. Selection of case categorization criteria is the second step. Then, types of data needed and data collection methods have to be defined. Lastly, Members may start to collect the baseline data.

7.      Plan for modeling phase

The deliverable of this phase, which is the process scoping report, can effectively support the modeling phase.

Scoping the process is the foundation of BPR and it is very important to BPR. If this phase was not being done well, BPR may fail even though performances in other phases are good. The above activities guide the enterprise how to scope the process in a correct way.

Week 6 – Basics of BPR (2)

Source / Reference:

1. Exploring the relationship between information technology and business process reengineering, by Mohsen Attaran

2. The role of information technology in business process reengineering, by A. Gunasekaran

Subject:
How information technologies help BPR?

 Response:

In general, information technology (IT) increases the efficiency and the accuracy of the business processes. As less human mistakes are made in some complex or repetitive processes, the cost for correction can also be saved. Besides, the communication barriers between managerial staff and operational staff or among employee can be getting over due to ease of internet access. Apart from the capabilities of IT in general, IT help BPR in many different aspects, namely, order flow, strategic process, product, marketing/ sales, services, accounting and personnel.

1.      Order flow

The information and materials along the supply chain should be analyzed in order to reduce the lead-time of order flow. IT such as shared database, AI and Expert Systems, CIM may help to simplify and standardize the flow of material and information and improve the co-operative tasks in factory, thereby the overall system performance of reengineering is enhanced.

For example, the supply chain of Dell Computer is reengineered with the help of IT. Dell adopted internet based technology to reduce the delivery time. The delivery time of customized products reduced to 5 days or less.

2.      Strategic process

In order to support strategy formulation, huge amount of data and information process need to be handled. Technology like Netscape, multimedia may help to collect and process data.

3.      Product

The productivities can be increased and the cost can be reduced in the product design, process planning stages with the adoption of computer-based tools. Controller-based supervisory control, execution systems, and computer-aided design program are some of the example of IT that helps in this aspect.

For instance, Deere Company used CAD and CAM for design, production and materials management. Consequently, the inventory costs have been reduced and the chance of manufacturing overhead decreased.

4.      Marketing/ Sales

For the sake of understanding of customers’ expectation of products and services, marketing research need to be done. Multimedia and internet systems can be used to assist the collection of customer data and the exchange of information within the firm.

5.      Services

IT helps to cut cost and improve the services to customers. Information automation systems can facilitate the operations of distribution and logistics.

6.      Accounting

Collection of information about product price, making make-or-buy decisions and budgeting decisions, and deciding capital investment can be support by on-line shared database and computerized information system.

7.      Personnel

Human factors in BPR are very crucial. Technologies like CAD/CAM may help to reduce the stress of workers and also improve the cooperation of employees with business strategies.

The adoption of IT assists BPR in many different aspects. IT takes an important supportive role of BPR.