Business Process Reengineering Essay

Whenever we order our drinks at the coffee bean divulges on a daily basis, we be actu eithery triggering a ancestry play. When the waiter at the coffee shop takes the order at our table, he depart spell our orders to the kitchen by yelling our orders from one end of the coffee shop to an otherwise. well-nigh of the time, the kitchen helper pass on hear the order and start to prepare. The waiter entrust then go around taking a few other orders. After he is done with taking orders, he provide earn the drinks from the kitchen and serve it to the guests. Customers allow then pay up for the drinks. In the solution there isnt enough convince for big nones, the waiter will view as to go back to the counter to break the notes into smaller variations in order to return the correct amount of change to the customers. In any(prenominal)(a) cases, he might deliver the wrong order as he doesnt note ingest the orders in pen and paper, he simply passes on the order to the kitch en by shouting. Restaurant scenarioMany years implement the road, the coffee shop has earned enough to pay for a regaining and overhaul. The brag of the coffee shop has decided to upgrade the coffee shop to a restaurant. He realises that he pack to retrain his staff to rifle the restaurant as the methods of operating a restaurant differs from the methods of operating the coffee shop. He also realise that he digest incorporate some equipment to help him process orders more(prenominal) efficiently. In summary, he needs to change the way the restaurant does things (processes) and how he does things (Method/tools apply to carry out the task). The boss has to do a total revamp of the methods and processes of how he was previously used to in the coffee shop. This is what is meant by business process reengineering. In definition, business process is an governingal change in its methods used to plan an arrangement to rectify efficiency and effectiveness (Mehta, 2011). Reengineer ing is the organizational change characterized by forceful process transformation.Concepts BPR focus & Objectives In order for companies to operate more efficiently, nullify waste, retain their customers and drive sales, understanding and applying BPR is essendial for this change to happen. Firstly, we have to correspond out the organizations goals, objectives, primary business function, the people they have and the tools they use. The second objective would be to analyse the current process and redesign/revamp them. By doing so, companies will be able to achieve better(p) ROI and eliminate waste. This will help the company to gain competitive service over others in its efficiency and also profits (Muharram, 2007). Perspective of BPRBPR is a frame lap up designed for companies to adopt. This frame school helps to optimize processes by making it more contourd. A good example to explain this point would be the inequality between a vertical and cross functional organization.Hori zontal organizationIn a horizontal organization, the customer interacts only with one society but in a vertical anatomical expression, customers might have to switch with different departments. Figure 3 shows a customer mess halling with his bankers bill manager for the application of a contribute. In the process, the customer does not need to deal with the different departments involved in the application of a loan. This allows the loan application to be more streamlined (Zigiaris, 2000). A vertical structure is not as efficient as customers will have to deal with several departments to process their requests. In a call centre environment, when the customer logs a call for a IT do, the calling department will set his call and log the case.He will then be transferred to the technical department who will assist him with 1st train troubleshooting. In the lawsuit he cannot solve the problem, the matter will be escalated to a level 2 support and also a product specialist. Af ter his issue has been resolved, he will be transferred to the payment department where he will pay for the IT services he has used. After making payment, he will receive an email from the feedback department where they will ask the customer for feedback for the case.This slows down the complete process of resolving the problem from end to end. One of the principal(prenominal) goal in BPR is to optimize the processes that takes place within the organization and compact lead time. In order to do so, businesses has to look at its processes from a clean state perspective. For a company to be able to streamline their processes, they have to come value to their customers through their processes. Processes should maintain its ability to add value to customers. For those processes that do not, we can automate them and put the focus on adding value. This will result in higher customer satisfaction, better efficiency, ejection of watse and greater ROI(Park, 2008).BPR Methodologies There are several techniques to business process redesign and reengineering. We will discuss a few in this section. Hammer and Champy A major overhaul in the organizations process and structure is one of the keys to ensuring that cost is lowered and service quality is being improved. The office of implemeting these is via the use of information technology. Besides reorganization and using IT to power the business, redesigning the work process and optimizing it, helps the organization to reduce time taken, lower costs and improve quality (Rouse, 2009). A Case ruminate of Ford Motor associationFord used to employ 500 accounts payable staff in the past. These 500 staff are running the tasks of tracking faults between leverage orders, receipts and invoices. After Ford decided to reengineer their process, the number of staff compulsory reduced from 500 to 125. Their reengineering efforts include * Creating an online database where all purchase orders issued by the buyers are being captur ed * Goods are being checked when received. The shipment being sent has to match with that in the database. This allows the staff to check if the goods were actual orders being indented. This governing body of checking eliminates the need to check for faults between purchase orders. * Goods being received will be marked as received and the database is being updated real-time. (Hammer & Champy, 2000)Perspective of process reengineering by Hammer and Champy 1. Organize around outcomes, not tasks. 2. Identify all the processes in an organization and prioritize them in order of redesign urgency. 3. conflate information processing work into the real work that produces the information. 4. Treat geographically dispersed resources as though they were centralized. 5. Link parallel activities in the work flow instead of just integrating their results. 6. Put the decision point where the work is performed, and build control into the process. 7. Capture information once and at the source.(Rou se, 2009) The methodology preached by Hammer and Champy clearly reflects what was being discussed in the BPR focus and objectives at the start of this report. Its focus is to eliminate waste and also to focus on deliverables that will add value to customers. In order to do so, IT systems can be employed in order to automate processes which do not add value. This point of automation is being reiterated in the case study of Ford Motors. This concept of rethinking and redesigning the business process radically helps us to improve many areas of the business such as lowering costs, improving customer service, ensure quality is being maintained and speed up the entire workflow.