Week6 - BPR Methodologies

Lecture 7: BPR Methodologies


In this lecture, we are focusing on the 5 phases model for BPR

Phase I – Triggering and executive visioning
Phase II – Project mobilization
Phase III – Process Redesign
Phase IV – Implementation and organizational change
Phase V – Monitoring and maintaining

1. Phase I – Triggering and Executive Visioning
In this phase, we are required to trigger the performance problem, competitive re-positioning, or pressure from a supply chain members.  Executive Visioning may result in creating need to cut costs and incremental improvement.

2. Phase II – Project Mobilization
During this stage, some processes are selected to redesign based on the identified process goals and the required IT infrastructure.It is also bounded by budgets and time limit.

3. Phase III – Process Redesign
There are five steps in this stage, they are:
1) Identifying Process Boundaries - Analysis of Value Chain Boundaries
2) Data Collection - Data collected to construct a Process Flow Diagram
3) Identifying Key Issues - SWOT analysis
4) Refine Process Redesign Goals - Cross-Leveling Process
5) Process-Level Analysis - Knowledge Value Added

4. Phase IV – Implementation and organizational change
While implementing the To-Be Process, there would be some adjustment on the staff skills. Also the organizational structure has to change to support the implementation.

5. Phase V – Monitoring and maintaining
After the To-Be process is implemented, there should be monitoring continuously on the operation. Moreover, maintaining the process may require modification in IT infrastructure.
                                                                                                                                         

There are some alternatives methodology for implementing BPR. They are all successful cases.
Alternative 1:

Here is the methodology used in the company Visible Systems Corporation, which has been successfully performing BPR [3].

The following is the table of Strengths and Weaknesses using that approach [2]:

Strengths	Weaknesses
Use of well-balanced reengineering team	Examination of process after defining desired state
Selection of process	No clear soultion how to solve problem
Modeling of process	No evaluation
Determination of process objective	No considering of using external consultants
Room enough for own creativity
Physical design is important
Implementation aspects are considered
Almost all preliminary conditions are considered

Alternative 2: 
Here is another methodology developed by Davenport & Short [4].

The following is the table of Strengths and Weaknesses using that approach [2]:

Strengths	Weaknesses
Focused attention and way of thinking by dimensioning processes	No own thoughts relization
Specific boundaries construction	No use of teams
Measuring of current processes	No explicit explanation of understanding
IT use is an essential part	Only management decides on desired states
Prototyping before full implementation	Hard to find new radical improvements
Organizational prototyping for examining consequences on organization	Strong focus on IT causing easier solutions to be overlooked
Selection of processes that will bw reengineered	No determining necessary logical elements
	No establishment of physical design
	No guiding and managing implementation
	No evaluation
	Only some preliminary conditions mentioned and those mentioned are not incorporated in methodology

To conclude, all the methodologies have both pros and cons. Methodology used can be changed depends on the situation. But, some of the small steps are essential to success.
                                                                                                                                         
Reference

[1] http://www.dtic.mil/cgi-bin/GetTRDoc?AD=ADA415002&Location=U2&doc=GetTRDoc.pdf
[2] http://www.met-online.nl/pdf/MET12-4-8.pdf
[3] Covert, M., 1997,  Successfully performing BPR, Visible Systems Corporation
[4] Davenport, T.H. and Short, J.E., 1990, The new industrial Engineering: information technology and business process redesign, Sloan Management Review


                                                                                                                                         

Comment on http://chankl-2107.blogspot.com/2012/02/week-6-basics-of-bpr.html


"The Reference link: http://www.businessballs.com/dtiresources/total_quality_management_TQM.pdf "

I find that your reference is very useful. The concept presents in that paper is very clear. With the help of the graphics, it is easier to understand TQM, Total Quality Management.

Week6 - BPR vs TQM, BPM

Lecture 6: Basics of BPR (2)

Total Quality Management and Business Process Reengineering
In this lecture, Total Quality Management (TQM) is introduced. It is a management approach for an organization to enhance customer satisfaction by improving the quality of products and services in an incremental manner.

Although there are some differences between BPR and TQM, they both are very important to the organizational environment. TQM is a management system that aims at long-term continuous improvements in customer satisfaction and real costs. BPR, on the other hand, is the rapid and radical redesign of strategic processes to optimize the workflow and productivity in an organization [1].

The following is the table of differences between BPR and TQM:

BPR	TQM
Revolution	Evolution
Quantum improvement	Incremental improvement
Top down approach	Bottom up approach
One-shot Project	Continuous Improvement
IT based	Possibly non-IT based

So, which one has more organizational benefits? In the lecture notes, it shows that the model combining BPR and TQM has the interdependence to provide the most effective and efficient business model.

Some may say that BPR programs should be followed by TQM’s long-term continuous improvements. BPR could later be used when another dramatic change is required [2]. TQM may be a natural extension of a successful BPR program, and BPR is the turning point of a TQM initiative.

Integrated approach to organizational change, combining tools from BPR and TQM is the most likely to have more organizational benefits. TQM enables the implementation of reengineering  by providing training and communication [3]. It is the breakthrough of TQM and BPR.

                                                                                                                                         

Business Process Management

Zairi (1997: 78) defines BPM as "an approach which is dependent on strategic elements, operational elements, use of modern tools and techniques, people involvement and, more importantly, on a horizontal focus which will best suit and deliver customer requirements in an optimum and satisfactory way" [4]



And gives out seven rules:
(1) Major activities have to be properly mapped and documented;
(2) BPM creates a focus on customers through horizontal linkages between key activities;
(3) BPM relies on systems and documented procedures;
(4) BPM relies on measurement activity to assess the performance;
(5) BPM has to be based on a continuous approach;
(6) BPM has to be inspired by best practice;
(7) BPM is an approach for culture change.


Implementing BPM is a strategy that aims at gaining competitive advantages. Ptocess Aligment is the core concept in the implementation of  BPM. It involves empowering employees towards common organizational goals.

                                                                                                                                         
Reference

[1]  Raymond Manganelli and Mark Klein, The Reengineering Handbook, Amacom, 1994
[2] Gary Salegna and Farzaneh Fazel, “An Integrative Approach for Selecting a TQM/BPR Implementation Plan,”
[3] http://asqcincinnati.org/Library/qm/TQMvsBPR.pdf
[4] http://www.tandfonline.com/doi/pdf/10.1080/14783360500249836
                                                                                                                                         

Comment on http://chankl-2107.blogspot.com/2012/02/week-5.html


"To characterize the specialties of business processes, the following 7 bullet points are generally adopted: 
• Definability: It must have clearly defined boundaries, inputs and outputs 
• Order: It is constituted by a sequence of activities 
• Customer: “Customer” means the recipient of the process' outcomes (person, organization, process) 
• Value-adding: It provides value to its customer 
• Cross-functionality: It may span across organizational/ departmental boundaries
• Repeated: It is repetitive 
• Sub-processes: A business process can normally be broken down into a finite series of sub-processes "

This seven categories are very useful for characterizing the business processes and redesign the business process. As we have to redesign the business process, it would be better to get understanding of the characteristic of the process. It would result in better redesign model of the business process.

Week5 - BPR and As-Is To-Be Model

Lecture 5: Basics of BPR (1)

BPR

From the lecture this week, we know that the BPR is the way of transforming the business from the restrictions of the traditional approach by cutting across functional divisions while Information system are the fundamental ingredient of redesigned business processes.

What is B?

B stands for business. It focuses on end-to-end business process which adds business value to customers. For the mean while, more value to customers would results more profits to the organization. It helps to maximize the effective activity coordination between each tasks. Outside-in perspective would be used to think more about customers through their eyes.

What is P?

P stands for process. It is the essential processes in the workflow of an organization. The process provides the output by processing the input.Business Process is the collection of business activities that creates value to the customers. It ties to functional area, even cross-functional area to fulfill customer needs. The traditional business process model is hierarchy-based with top-down approach. This means that the business process is from the top management to operational management. It breaks down the processes and decomposes into sub-processes. Each is responsible for a specific task. It is a scientifically-based management approach provided by Frederick W. Taylor.

But now, business process is a horizontal organization process which starts and ends with customers’ needs. The business structure is more flexible and customer-centric, which means that the process will more focus on the needs of customers and the customer responsiveness will therefore be enhanced. It also increases the productivity and competitiveness of an organization.

What is R?

R stands for reengineering. It gives out quantum improvements with the support of IT  to maximize the value adding in the process. The changes of working environment, such as people skills, organizational design and structure, should well fit the reengineered processes.

                                                                                                                                         

The main idea of BPR is the transformation from the current process (AS-IS) to an improved process (TO-BE).It is is an iterative process that starts during software selection. Transforming from your current state to your future state requires planning and adjustments. 

As-Is Business Processes

This is the important part of BPR. It helps to align and understand on how things currently operate. Documenting As-Is business processes helps develop clarity on what is working well and what is broken with the current business processes. It also helps define how employees are doing their work now and the gaps between the current and future states.It helps to discover the operational pain points with a lot of analysis [1].

To-Be Business Processes

This defines your future operational model and business processes base on how you want your business processes to look in the future. In conjunction with the as-is processes, it helps you identify the gaps between the current and future. This helps to drive business improvements and accountability [1].

Eric Kimberling have mentioned 4 Key steps between As-Is processes and To-Be processes [2].

1. Software Selection. The first step is ERP selection based on business requirements. The evaluation may depends on how you understand the current business states and how the ERP can improve the business.

2. ERP Business Blueprint. After the software is selected, it is important to design the business blueprint providing the first real tangible views of how future to-be processes will look by defining new model.

3. ERP Implementation and Configuration. After the ERP business blueprint is built, the software can help to implement and customize to meet the defined business process workflow. 

4. Organizational Change Management and Training. The final stage is organizational change management and training. It provides the tools that will enable employees to bridge the gap between the as-is and to-be processes. And the change management would help in the migration by conducting organizational impact analysis, stakeholder analysis, change agents, communications, and training.

                                                                                                                                         

Reference

[1] http://panorama-consulting.com/erp-and-business-processes-as-is-or-to-be/

[2] http://panorama-consulting.com/to-be-or-not-to-be-answers-to-the-long-standing-controversy-about-erp-system-business-processes/

                                                                                                                                         

Comment on http://chankl-2107.blogspot.com/2012/02/lecture-4-business-and-isit-strategies.html


"In my opinion, there is no definate universally superior perspective for all businesses in general.  Whether certain perspective is appropriate or not for particular company depends on many factors such as the structure, culture, targets and rules of the company itself and also the industry and global environment.  In fact, the situation varies from case to case, it is hard to select the most outstanding perspective which is expected to overwhelm the others.  And each perspective does have the unique advantage, as a result, managers have to evaluate and compare carefully before making the decision of adopting which approach for their firms.
 "

I agree with you that the selection of the perspective depends on many factors like the structure, culture, targets and rules of the company itself and also the industry and global environment. Just like what I think that the selection should be based on the analysis of the current situation, the expected outcome and the requirement of the business.