Business Process Management Business Process Reengineering Business Process Analysis Business Proces

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Business Process ManagementBusiness
ProcessRe-engineeringBusiness
ProcessAnalysisBusiness Process . . .
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Traditional Organisation and Functional
Management

• Traditional Organisation Chart
• Source D Williamson, Introduction to Management
  Accounting
• People work in functional areas production
  people in the Production department(s), marketing
  people in Marketing, ICT (Information and
  Computer Technology) in ICT, etc.

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Traditional Organisation and Functional
Management

• Traditional Organisation Chart (contd)
• Chart shows
• a set of co-ordinated functional specialisms
• division of labour
• Traditional view identifies where people belong
• But is it flexible?
• Can it adapt/react quickly to change?
• Is only collaboration via Purchasing and Sales?

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Business Process Management

• BPRC NEWSLETTER 1, November 1995 (with my
  emphasis)
• The combined effects of developments in
  information technology and internationalisation
  of markets have led researchers and managers to a
  view that new practices and organisational
  structures are becoming necessary in a mature
  industrial age bringing about fusion rather than
  division of labour, and a view of industry as a
  set of seamless internal and external
  relationships

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Business Process Management

• BPRC NEWSLETTER 1, continued (with my
  amendments)
• aimed at delivering sustained customer
  satisfaction, rather than as a set of
  coordinated functional specialisms.
• The Business Process approach to resource
  management is emerging as a major innovative
  mechanism, enabling the organisation to adapt
  to the new competitive environment.

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Business Process Management

• BPRC NEWSLETTER 1 (with amendments), continued
• Business Process Management is also not
  restricted to the manufacturing sector.
• The ESRC Business Processes Resource Centre,
  Warwick Manufacturing Group, International
  Manufacturing Centre, University of Warwick

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Business Process Management 2

• What is it?
• Recent innovations in managing businesses by
  American and some UK companies.
• Global marketplace changes and so firms respond.
• Constantly introduce innovations in both
  technologies, for processing and producing goods
  and services, and in developing products, plus in
  cycles in manufacturing.
• Professor Arunachalam and Dr. Subrahmanian,
  Carnegie Mellon University, Pittsburgh

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Business Process Management 3

• What is it?
• Are too many business innovations in US today!
• But business has identified cost, quality and
  time as demands in the market
• So, we are looking at significant innovations
  used to improve business processes.
• and to help US businesses meet these demands
• Professor Arunachalam and Dr. Subrahmanian,
  Carnegie Mellon University, Pittsburgh

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Business Process Re-engineering

• Process Re-engineering (BPR) increasingly used to
  describe efforts to improve Business processes.
• Are different implementation models and methods
  because re-engineering is often interpreted in
  many ways.
• Re-engineering examples range from a firm
  re-engineering a production process to completely
  restructuring its entire organisation.
• Professor Arunachalam and Dr. Subrahmanian,
  Carnegie Mellon University, Pittsburgh

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Business Process Re-engineering 2

• From local BPR, analytical models have been
  developed to optimise existing processes, through
  using simpler procedures and using IT.
• An industry of consultants has grown up, plus
  tools for mapping process and simulation tools.
• Organisations established structures and
  processes have been totally replaced by new
  structures and flexible processes.
• Professor Arunachalam and Dr. Subrahmanian,
  Carnegie Mellon University, Pittsburgh

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Business Process Re-engineering 3

• This may include using cross-functional teams,
  retraining workers, and managing innovation, as
  integral parts of firms business processes,
• much more than just designing, manufacturing, and
  servicing products.
• It means re-engineering people the way they
  learn their jobs, the way they work and the way
  they collaborate with their workmates.
• Professor Arunachalam and Dr. Subrahmanian,
  Carnegie Mellon University, Pittsburgh

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Business Process Re-engineering 4

• Workers often have to learn new trades and learn
  new practices at work, take on new work ethics
  which go beyond their narrow specialisations.
• Successful innovations in industry in the past
  used division of labour but almost removed human
  ingenuity and innovation from the workplace.
• View of the workforce in making changes to the
  organisation has also changed with BPR.
• Professor Arunachalam and Dr. Subrahmanian,
  Carnegie Mellon University, Pittsburgh

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Business Process Re-engineering 5

• Production is now more efficient, streamlined and
  flexible, due to new technologies in
  manufacturing and process.
• Has resulted in achieving previously unachievable
  quality at unattainable speeds.
• Work-force now groups with competence across many
  areas of manufacturing, motivated by team-spirit,
  delegated power and vested authority no longer
  just skilled individuals
• Professor Arunachalam and Dr. Subrahmanian,
  Carnegie Mellon University, Pittsburgh

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Business Process Re-engineering 6

• Retraining programmes now seen as crucial in
  companies success in implementing BPR.
• There are resources in bigger companies to
  re-engineer processes and re-train their
  workforces
• Ability of suppliers in the value chain to
  practice BPR also crucial for companies success
  with BPR.
• Individual firms are seen as being responsible to
  implement BPR and train suppliers workforces.
• Professor Arunachalam and Dr. Subrahmanian,
  Carnegie Mellon University, Pittsburgh

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Business Process Re-engineering 7

• However,the government in the US is helping
  restructure the processes of US businesses!!
• It is providing initiatives and inducements to
  firms to provide continuing education and
  retraining.
• It is actively and innovatively filling in gaps,
  especially in processing and manufacturing, that
  it sees in US companies.
• This is considered essential to keep American
  products globally competitive.
• Professor Arunachalam and Dr. Subrahmanian,
  Carnegie Mellon University, Pittsburgh

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Business Process Re-engineering 8

• Multi-agency programs have been introduced in
  defence, dual-use, and civilian sectors,
• providing short-term research programs in high
  value but high risk manufacturing technologies.
• Professor Arunachalam and Dr. Subrahmanian,
  Carnegie Mellon University, Pittsburgh

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Business Process Re-engineering 9

• Why?
• Japanese firms were successful in capturing a
  significant part of the US automobile market in
  the 70's and 80's.
• They could adapt to changes in economic
  conditions, without large unemployment changes
• This has led to a rethink of the nature of
  American industrys business operations.
• Professor Arunachalam and Dr. Subrahmanian,
  Carnegie Mellon University, Pittsburgh

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Business Process Re-engineering 10

• Result serious look at new business models and
  the car industry in Japan being scrutinised by US
  companies and business theorists.
• Studied Japanese process innovations, quality
  management and lean production technologies.
• Introduction of IT into Japanese firms work
  practices, with US innovations, preserved
  Japanese organisational and cultural advantages.
• Professor Arunachalam and Dr. Subrahmanian,
  Carnegie Mellon University, Pittsburgh

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Business Process Analysis 1

• Business Process Analysis is continually changing
• in both details of every process matter, but also
  in overall objectives of organisations.
• Technology is a force driving re-engineering.
• Economic and cultural practices also relevant.
• Tomorrows BPR methods and tools are the
  knowledge and experience gained by individual
  companies and business theorists.
• Professor Arunachalam and Dr. Subrahmanian,
  Carnegie Mellon University, Pittsburgh

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Business Process Analysis 1

• BPR is proving to be a powerful approach for
  organizations wanting to be competitive.
• Professor Arunachalam and Dr. Subrahmanian,
  Carnegie Mellon University, Pittsburgh
• Business Process Analysis - A Letter from
  America, A report to Engineering and Scocial
  Science Research Council, UK Abstract
• http//bprc.warwick.ac.uk/bprv1-1f.html

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However

• Reported failure rates of about 40 to 70 percent
  for BPR applications in achieving stated goals
• This could be due both to perceived differences
  in defining re-engineering and to the level where
  it is implemented.
• The coverage and scope of BPR in different firms
  may explain differences in firms using BPR
  successfully or unsuccessfully, rather than how
  they apply BPR tools and methods.
• Professor Arunachalam and Dr. Subrahmanian,
  Carnegie Mellon University, Pittsburgh

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Any Questions ?
Powerpoint presentation adapted by M C Pratt, St
Martins College, from 1. BPRC NEWSLETTER 1,
November 1995. The ESRC Business Processes
Resource Centre, Warwick Manufacturing Group,
International Manufacturing Centre, University of
Warwick Web address http//bprc.warwick.ac.uk/n
ews1.html 2. Professor Arunachalam and Dr.
Subrahmanian, Carnegie Mellon University,
Pittsburgh, Business Process Analysis - A Letter
from America, A report to Engineering and Scocial
Science Research Council, UK Web address
http//bprc.warwick.ac.uk/bprv1-1f.html 3. Managin
g Activities, Powerpoint presentation by A
Mulengani, Northampton University College, 2001