The business process reengineering

The channel accomplish reengineering compendIn this subject field we be discussing the two onrushes related to the note concern edge it is massonical on the wholey a critical decision that every(prenominal) good and progressing enterprisingness has to take in short or long run.The BPR ( paradox put to death reengineering) and the logical argument object lessoning (creating a unexampled fulfill) and the difference in surrounded by, is the topic in this report. stemma growth Modeling (BPM) represents the activity of mouldes of a art. Purpose to put on a cable knead imitate is analyze and mitigate the go-ahead activities regarding the core billet. It is commonly performed in an initiative by expert patronage analysts and business line managers, who seeks continuous process modifyment and efficiency. Three major types of processes involved in a business argonManagement sufficees functional dishesSupporting summonsesBusiness Process Reengineering (BPR ) is a kind of method of management practiti 1rs to improve business efficiency. The fundamentals of Business Process Reengineering are to whole tone at the business processes from a clean slate perspective and to beat out how to mend these processes to increase the efficiency of the business. Reengineering is redesigning, revising and repersuasion of business processes to fulfil terms, quality and amphetamine or service oriented efficiency. Business Process Reengineering (BRP) consists of sequence strategies to hike up the innovation and resulting excellence in competition, market berth and profitability of the commence. A simple business process reengineering is best set forth in pursuit(a) four phases of the motorcycle i.e.Identification of a ProcessReview, Update and dissect AS IS pattern TO BETesting and executionDEFO cast, and on the whole early(a) methodologies related to BPR are discussed wherefore their go throughation phases, results then the discuss ion on results and the conclusion in which the difference between twain of these have a bun in the oven been highlighted.1. Introduction / BackgroundBusiness processes are the essential dissipate of any kind of business. They are created by the help of business model and show the direction towards which a business flows.In this report, two basic business models are discussed in detail, difference in the approach is explained and what and how to motivate with these models has been described. The two business model which are discussed here areBusiness Process ReengineeringBusiness Process and Model1.1 Business Process ReengineeringBusiness Process Reengineering (BPR) is a kind of method of management practitioners to improve business efficiency. The fundamentals of Business Process Reengineering are to look at the business processes from a clean slate perspective and to find out how to reconstruct these processes to increase the efficiency of the business.Reengineering is redesign ing, revising and rethinking of business processes to achieve cost, quality and speed or service oriented efficiency. Business Process Reengineering (BRP) consists of sequence strategies to promote the innovation and resulting excellence in competition, market place and profitability of the enterprise.A simple business process reengineering is best described in following four phases of the cycle i.e.1.2 Business Process Modeling (Creating a saucily process)Business Process Modeling (BPM) represents the activity of processes of a business. Purpose to implement a business process model is analyze and improve the enterprise activities regarding the core business.It is commonly performed in an enterprise by expert business analysts and business line managers, who seeks continuous process improvement and efficiency.Three major types of processes involved in a business areManagement Processes intentable ProcessesSupporting ProcessesThese processes can be advertize sub divided into man y sub processes and sequence of activities. These sub processes have their aver attri entirelyes and besides consummation to achieve the target areas and goal of the major process.2. Problem Area / telescopeThis report deals with the difference between two business processes i.e. Business process reengineering and business model (creating a unfermented process).2.1 Problem Area fib investigates the following problematic areasHow to deal with business process reengineering?How to implement it in an enterprise?How to design a business model for a newfound process?What is the difference between the approaches?How to improve a business using these models?2.2 ScopeReport deals primarily with the business process models specially chargeing the approach of the two models i.e. Business Process Reengineering and Business Modeling (creating a new process).Business Process is a vast field with numerous methods and explanations. Report only deals with the Business Process Reengineering and Business Modeling (creating a new process) and how does it impact the working of an enterprise.3. MethodsFive methodologies are summarized after the basic BPR deduceing. A few BPR methodologies from modern-day literature are as followsMethodology 1Develop vision strategyCreate desired culture mingle Improve enterpriseDevelop technology solutionsMethodology 2 read Customer Requirements Goals for the ProcessMap and Measure the Existing ProcessAnalyze and Modify Existing ProcessDesign a Reengineered Process apparatus the Reengineered ProcessMethodology3Set DirectionBaseline and benchmarkCreate the flockLaunch Problem Solving ProjectsDesign Improvements appliance ChangeEmbed Continuous ImprovementMethodology 4 make ReengineeringJustifying ReengineeringPlanning ReengineeringSetting up for ReengineeringAs Is Description AnalysisTo-Be Design and ValidationImplementationMethodology 5PreparationIdentificationVisionTechnical Social designTransformation4. ResultsProcess reenginee ring emerged as an keen and very prospering proficiency to refresh the authorized running processes in an organization beca intent business can be used as a common terminal, Business Process Reengineering BPR is now a famous term plus technique in an organization who is trying to revive the trustworthy processes whether its a service organization or consumer growth manufacturer.4.1 Reengineering ProcessReengineering is the simple- estimationed rethinking and radical redesign of business processes to achieve remarkable improvements in decisive, contemporary measures of feat such as cost, quality, service and speed.BPR advocates that enterprises go back to the rudiments and reexamine their very ancestry. As for results BPR is clearly not for companies who want a 10% improvement, it is for the ones that contract a ten-fold increase. The last but the most weighty of the four signalize words is the word-process. BPR much focuses on processes and not on tasks, jobs or popula tion. It endeavors to redesign the strategic and grade added processes that surpass organizational boundaries.4.2 Implementing Reengineering ProcessAccording to many in the BPR field reengineering should apply energies in castigate direction and focus on processes and not be limited to thinking about the organizations.Currently deal in an organization think distributively about the accompaniment department. So companies should name the processes rather using the department label that they do such that they express the beginning and end states. These names should imply to all the work that gets done between the start and excite promontorys. i.e, erect fulfillment can be called order to payment process. talk of the town about the importance of processes just as companies have organization charts, they should also have what are called process maps or workflow diagrams to lay out a picture of how work flows through the enterprise.Process mapping assists in identifying your n ew As-Is business processes and can be used to picture a To-Be roadmap for reengineering your product and service business enterprise functions needless to study it logically helps to have a thorough look on the whole process cycle and of air it can also be used to monitor the reengineering as well(p). It is the significant link that your reengineering group can apply to better check and radically improve your business processes and bottom-line performance. Possessing identified and mapped the processes, deciding which ones need to be reengineered and in what order is the million-dollar question. Generally they make their choices based on lead criteriaDysfunction which processes are functioning the worst or which process is the bottle-neck? enormousness which are the most critical and influential in terms of customer satisfactionFeasibility which are the processes that are most likely to be successfully reengineered?This section will give an overview of creating a new busine ss process this section provides a guide to creating an initial, as is or baseline model, in other words the current situation.4.3 Components of Business ProcessAn as is or baseline model gives an overall picture of how the process works, now. all structural, organizational and technological weak points and bottlenecks can then be identified, on with possible improvements at the next stage.You will need the following study before you start to create a new business processThe desired outcome of the process.The start and end points (customer need and customer fulfillment).The activities that are performed.The order of activities.The people who perform the activities.The documents and forms used and exchanged between functions and from customers and providers.4.4 root phaseThe first phase of the process will involve a lot of positioning and repositioning of events and activities, so make sure you use a method that is flexible and easily changed. Use visual aid if youre working with a group of users, it must be communicated to each user.4.5 minute phaseOnce you have established an agreed sequence of events, you can create it as a flowchart on generic software or on specialized proprietary software.At this stage, need to check-out procedure your model with the users by carrying out live observations of the sequence should be in practice.4.6 Symbols and notationThe diagrammatical representation of Business Process is commonly notation. there is no definitive system for Business Process creation notation, although military campaigns remain to standardize one.The Business Process Notation system is an example of an attempt to establish a standard BP notation system.Organizations may develop their own notation systems or use the notation of their chosen own/ contrasting vogue.4.7 MethodologyA combined methodology has been extracted from the five methodologies previously presented and an IDEF0 model was developed and for the sake of briefness, we have sho wn only the major activities in the IDEF0 model in Figure 1. In the following section, we deal with the details of the methodology.4.7.1 natural action 1 Prepare for ReengineeringIf you fail to plan, you plan to fail. Planning and preparation are vital factors for any activity or event to be successful and obviously in reengineering it is done too. Before executing reengineering, the question, Is BPR demand? on that point should be a noteworthy need for the process to be reengineered. The ecesis of this need marks the beginning of the preparation activity. This activity begins with the study of decision maker consensus on the importance of reengineering and the link between advance business goals and reengineering projects. A cross-functional team is established with a game plan for the process of reengineering. magic spell forming the cross-functional team, beats should be taken to ensure that the organization continues to function in the absence of several key players. Ano ther important factor to be considered while establishing the strategic goals for the reengineering effort is to make it your first priority to understand the expectations of your customers and where your existing process falls short of tinting those requirements. Create or study the existing vision of the enterprise as a decipherable vision will sustain a companys resolve through the nidus of the reengineering process.4.7.2 military action 2 Map and Analyze As-Is ProcessBefore the reengineering team can proceed to redesign the process, they should understand the existing process. While almost organizations which are in dire straits might go the other way, attempt a new process design while alone ignoring the existing processes, most organizations need to map the existing processes it helps to analyze and improve on it to design new processes. The important feature of BPR is that the improvement should provide dramatic results.Many people do not understand the value of an As-i s analysis and rather prefer to spend a larger orchis of their valuable while on designing the To-Be model directly.The main objective of this phase is to identify bottle necks (anything that prevents the process from achieving desired results and in particular information transfer between organizations or people) and value adding processes. Creation and financial backing of Activity and Process models initiates it. Then, the amount of succession that each activity takes and the cost that each activity requires in terms of resources is calculated through manikin and activity based costing (ABC). All the footing required having been faultless the processes that need to be reengineered are identified.4.7.3 Activity 3 Design To-Be processThe objective of this phase is to produce one or more alternatives to the current situation, which satisfy the strategic goals of the enterprise. Benchmarking is the initial step in this phase. Benchmarking is the comparing of both the performanc e of the organizations processes and the way those processes is conducted with those relevant peer organizations to obtain ideas for improvement. Other organizations need not be competitors or even from the same industry. Innovative and efficient methods should be appreciated regardless of the source.Having identified the potential improvements to the existing processes, the development of the To-Be models is done using the various modeling methods available, bearing in mind the principles of process design. Then, similar to the As-Is model, wiles are performed and ABC to analyze factors like the time and cost involved. This activity is an iterative process and it takes a lot of sedulousness and time.4.7.4 Activity 4 Implement Reengineered ProcessThe implementation stage is where reengineering efforts meet the most confrontation and hence it is by far the most touchy one. If we expect that the environment would be conducive to the reengineering effort we are lamentably mistaken . The question that confronts us would be, If BPR promises such breath taking results then why wasnt it adopted much earlier? When so much time and effort is spent on analyzing the current processes, redesigning them and planning the migration, it would indeed be serviceable to run a culture change program simultaneously with all the planning and preparation. This plan must support the organizational structure, information systems, and the business policies and procedures with the redesigned processes. The IDEF models that were created in the As-Is can be mapped to those created during the To-Be and an initial list of change requirements generated. additional requirements for the construction of the To-Be components can be added and the result organized into a exploit Breakdown Structure (WBS). Recent developments in BPR software technologies enable machine-controlled migration of these WBS activity/relationships into a process modeling environment. Using prototyping and simulat ion techniques, the transition plan is validated and its pilot versions are designed and demonstrated.4.7.5 Activity 5 Improve Process ContinuouslyA process cannot be reengineered overnight. A very vital part in the success of every reengineering effort lies in improving the reengineered process continuously. Monitoring, first and important step here. Two things have to be monitored the progress of action and the results. The progress of action is measured by seeing how much more informed the people feel, how much more commitment the management shows and how well the change teams are accepted in the broader perspective of the organization. This can be achieved by conducting stance surveys and discrete fireside chats with those initially not directly involved with the change. As for monitoring the results, the monitoring should include such measures as employee attitudes, customer expectations, supplier responsiveness etc. Communication is strengthened throughout the organization, ongoing measuring rod is initiated, team reviewing of performance against clearly defined targets is done and a feedback intertwine is set up wherein the process is reviewed and redesigned. Thus continuous improvement of performance is ensured through a performance tracking system and application of problem solving skills. Continuous improvement (TQM) and BPR have always been considered mutually easy lay to each other. But on the contrary, if performed simultaneously they would complement each other wonderfully well. In fact TQM can be used as a tool to consecratele the various problems encountered during the BPR effort and to continuously improve the process.5.DiscussionThis is my 2nd report another report was made before on the same topic but due to not handling the references mighty it got the complaint of plagiarism I went to discuss this thing with my instructor and my course coordinator and finally made this 2nd one. To write this kind of report one must study the literat ure related to the topic and then if we use the chunk of that literature or discuss any idea from it the references must be taken care in a systematic way otherwise it can create a problem.A zealous customer focus, superior process design and a strong and motivated leaders are vital ingredients to the recipe for the success of any business corporation. It is the key that every organization should acquire to accomplish these prerequisites to success. It advocates demanding hard work and activates the people involved to not only to change what they do but targets at altering their basic way of thinking itself. And on the other hand the new process is more or like same to the BPR but in new modeling there is no previous or existing process to be considered and in modeling the more focus is on the model if the model is understandable attainable then only its implementation and business can be created accordingly.6. ConclusionSo by defining both of the opinions the question again linge rs that what is the difference in between and according to the all study and research and by looking at the real life case studies, I came to a point to say that it all depends on the situation the enterprise is going through or the nature of the organization.As the HP company reduced their assembly time by doing the reengineering, but the main thing was the company spent innumerous hours and a lot of money first to come on the point and take the decision that the company will do the reengineering and then by doing intense process flow analysis and by studying the work break down structures the enterprise took the decision which type of reengineering technique should be used.The bottom-line is it always depends on the companys nature, the business situation it is going through. The enterprise managements see how they take a situation and how right they do the studies rather homework necessary to take the right decision.As we look the technical aspect of both process reengineering and creating a new process both of the sides needs sound management and technical expertise and yes the enough funds to go through them.In reengineering we have to mold the existing processes but creating a new process is to come up with a total new idea which will be the part of main process pour out of the enterprise. But I think its a long debate sometimes the reengineering is more difficult then to create a new process because if one process is reengineered the enterprise has to do other alters as well to align the reengineered side with the whole stream and this may cost more than the company expects. Its true that reengineering proved to be a success all-over the terra firma among every industry service or production. But many companies could not make it with it. new-sprung(prenominal) process is sometimes necessary like it is necessary if there is a total new range of product line, technology change etc. then a thorough study to put together the new process in the existin g process stream.7. RecommendationsBusiness process reengineering is an effective tool for management practitioners. It helps in business improvement and further enhances business process efficiency.Continuous improvement process includes the process reengineering and encompasses all the parameters with in the process re designing and reengineering.This method can give huge returns. This method began as a private sector technique to help organizations fundamentally rethink how they do their work in order to dramatically improve customer service, cut operational costs, and become frontmost competitors.ReferencesFeldmann Clarence.G, (1998),The Practical Guide to Business Process Reengineering using IDEF0., Dorset House Publishing, New York.Modelling and analysis of business process reengineering 2002, vol. 40, no. 11, 25212546 GUNASEKARAN and B. KOBUBusiness Process Reengineering, The Creation and Implementation of a Methodology Brian Fitzgerald and Ciaran Murphy 1996.Bnet.com