BPR is rethinking and redesign of business processes to achieve improvement in cost, quality, service and speed.
Factors that motivate for re engineering:
a). Customers
- Demanding
- Sophistication
- Changing Needs
b). Competition
- Local
- Global
c). Change
- Technology
- Customer Preference
Key Characteristics of BPR:
a). Process-based (BPR initiatives must add value above the existing process & must meet the needs of the customer)
b). People centred
c). Focus on End-customers
d). Radical improvement - (Process improvements will not happen over night they need to be gradually introduced)
e). Integrated change - (Process improvement must be realistic and practical.)
Implementing BPR Strategy:
1. Select the process and appoint process Team -
TIP -> Select a process - (Understand customer needs, Select core processes, Ask questions, Organize
meetings and don't assume anything)
TIP-> Appoint a process team - (Appoint BPR champion, Identify process owners,Establish executive
improvment team, Provide training to Executive team)
2. Understand the current process - (Develop a process overview, clearly define the process{Mission, scope, boundaries},Understand customers expectations, Identify improvement opportunities).
3. Develop and communicate vision of improved process
4. Identify Action Plan
5. Execute plan
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