Business Process Redesign or Reengineering (BPR)

What is Process?

Process is the group of planned and organized activities performed with a view to achieve some objectives. Processes have a timeline and personnel identified for each activities. Every process has its end.

 

What is Business Process Redesign?

Business process redesign (Reengineering) is about fundamental rethinking of activities involved in the process from beginning. Focus is on processes rather than individual departments. All the departments involved in the process work together in harmony to achieve business objectives, goals, mission and customer satisfaction. Strategies, objective, goal and mission are questioned are its appropriateness and harmony.  Assumptions about customer needs and behavior are re-considered. Business process redesign is different from improvements which only considers about the betterment of existing work practices.

 

How Business Process Redesign is Performed?

Business process redesign or reengineering is about indentifying processes, reviewing it for appropriateness by critically analyzing all the activities involved in the process in detail. After getting understanding of the process, non-value added activities (Activities which are not adding value to the customer) are eliminated. other value adding  activities are challenged for cost, quality, service and efficiency. Amendment are made where necessary and new activities are designed which do not existed before. Decisions such as whether to carryout activity in-house or outsource to external business organization is taken. Timing and order of activities are also decided.

 

Nature of Business Process Redesign.

Business process redesign is continuous activity. Processes are continuously monitored and tested for amendments to be made where required. Business Process redesign can be undertaken for various processes across the whole business. Whole business means all the internal and external of business example from customer enquiries to delivery to customer and from receipt of raw material to manufacturing of products.

 

Essentials of Business Process Redesign

1. It also requires the support of information technology. To gather and analyze information efficiently and cost-effectively. Re-designed process need to be verified for its practicality. Information technology makes it possible to put process into visuals before it is implemented as wrongful implementation of the process can be very costly in terms of time, money and reputation.

 

2. Business process redesign requires decentralization, so that employs involved in the process an take decisions, they are in better position to development viable process as they aware of the risk and challenges faced in executing the process in day to day operations. It permits fast implementation of processes because information does not have travel upwards.

 

3. Horizontal communication (Communication between departments) is necessary to employees involved in the process know the consequence of their work on each other and whole business.

 

4. Multi-skilled workers more likely to understand and take the ownership of whole process. They can understand the information needs of other workers. Workers may have to be re-trained to carryout activities in different manner.

 

5. Team working is necessary rather than separate department pursuing their  own objectives. This involves re-structuring of the business which are operating in traditional tall and departmental business structures. Personnel from each departments which are expected to carry out the process are involved in process redesign.