BUSINESS PROCESS RE – ENGINEERING

Q.1. What do you mean by BPR? Explain with suitable examples.

Answer. The Fundamental Rethinking and radical redesign of business

processes to achieve dramatic improvement in critical success factors is called
BPR.
Factors such as Cost Reduction, Quality Enhancement, Service Improvement
and Cycle time Reduction are reengineered.
After studying and analyzing the situation and demand designers of the
businesses bring the changes in their new designs as well as in their current
structure.
Continuous Process improvement and BPR consists of striking difference
between each other which depends upon the start, magnitude and rate of
resulting changes.
The initial and basic stage for BPR is to define the scope and objectives of re –
engineering project then have learn from others like customers, employees
competitors and non – competitors, new technologies and try to gain basic
knowledge from their analyzation, so that perfect and clear vision is created for
the future and design new business processes.
After defining and learning, plan of action can be created by keeping the gap
between the current processes, technologies and structures and till where to
carry the action. Then finally implementation of the solution can take place.

Eg: -

The BPR is matter of scope project – learn from others – create to be process –
plan transition – implementation.
Q.2. Explain the various principles of BPR in detail.

Answer. BPR is the Fundamental rethinking and radical redesign of business

processes to achieve dramatic improvement in critical success factors.
BPR possess some Principles of Re – Engineering.

Principles of BPR are as follows: -

1) Organize around outcomes, not tasks: - Allotting one or a team to complete

the task is better than using the traditional assembly line approach with many
people taking many different steps is the basic principle of BPR.
Expected result should always be organized rather than organizing around the
task, perfectly and properly stating precisely the objective to achieve by
reengineering and than as per the situation internally organizing the method and
activity to achieve the objective.
Eg: - In an automobile company a department for customer ser4vice will look
after the customer demand, fulfilling their desired requirement, taking order and
delivering.

2) How those who use the output of the process to perform the process : -
Other principle of BPR is that, in reengineered system any department manager
can make their own purchases which is required for the department using a
shared database of approved vendors.
This system is better for every department manager as in normal reengineered
system if any department manager wants to purchase something then he has to
give purchase application to the purchasing department, then it is up to them to
approve it or not.
Thus this system is accordingly better although it contains costly paper work for
traditional purchasing procedures, but it is safe for purchasing and negotiating
with the sellers.

3) Merge information processing work into the real work that produces the
information: - Occurrence of error can be comparatively reduced when the
information processing work is merged into the real work that produces the
information.
When the inspection of goods is carried, then the inspection report should also
be prepared simultaneously.

4) Treat geographically dispersed resources as though they were

centralized: - Decentralized divisions maintain their own information systems
and this leads to the biggest occurrence of inefficiency.
5) Link parallel activities during the process, rather than at the end of the
process: - When manufacturing designs and engineering projects are large and
complex then it is possible that many different activities are carried out by
different teams working together with shared database combine together to get
final result.
Different advanced technologies and techniques should be used to make the
convenience for interacting with each other.
Eg: - Video conferencing network, Tele conferencing network, etc.

6) Put the decision point where the work is performed and build control
into the process: - The essential and important factor for any decision making is
speed and this is only possible if correct and right representing is done.
Employees with complete and proper power cam take decisions with speed.

7) Capture information once at the source: - It is better and time consuming to

store information regarding any product once in different places of database
rather than creating, maintaining and using same information in different places.
Q.3. Explain the strategic impact of IT on BPR with suitable examples.

Answer. Usage of different types of IT is introduced in BPR for betterment of the

business. IT possesses huge impact on BPR.
Impacts of IT on BPR are as follows: -

Automational: - This means because of IT every process or level of

manufacturing and organizing in every business is now becoming automated, all
are working with automatic system, which requires less man power and thus due
to this need of human labor in the process are day by day going on decreasing
which leads to unemployment and poverty.
Eg: - When a packaging department of soap company became automated many
workers were excluded from their work as there was no need of that much
amount of workers employed and they became unemployed.

Informational: - Trying to store the data of process information accordingly and

properly to understand the meaning and purpose of system and process.

Sequential: - This leads to change in the order of process in which it is carried

out. With the help of IT, business are taking place in the new sequence it make
the business comparable.
Eg: - In the customer care department of a food company with the help of IT the
process sequence was changed, it became totally hi – tech, all the customer
complain and demand were recorded instantly, etc.

Tracking: - With the help of IT it became easier to look after the work going on in
the BPR. And with the help of this status of process can be closely monitorized.

Analytical: - Study and analyzation of information has improved and can be

done at advanced level. Thus proper and correct analyzation of information leads
to speed and proper decision making.
Eg: - With the help of advanced IT system any organization like Nokia, Reliance,
etc are able to collect and analyze the information and according to that they take
their decisions regarding improvement of their product for customers.

Geographical: - To achieve efficiency system are arranged in perfect in perfect

and easy way at different places which are at distances in the process.

Integrative: - In BPR process of reengineering and the work to be completed are

arranged and coordinated together.
Intellectual: - The information and the knowledge about the product quality,
method, etc gained from the system are stored and arrangements are interfered
to get better results.

These are the impact of IT on BPR which are mostly of benefit with the
organization to gain profit.
Q.4. What are the various BPR methodologies and techniques?

Answer. The Hammer/Champy Methodology: - Hammer Champy define BPR

as a fundamental rethinking and radical redesign of mission critical business
processes. According to Hammer Champy the big hurdle for successful
implementation of BPR is the resistance of the peoples.

Hammer Champy Methodology consists of Six Steps:

• Introduction into Business Reengineering

• Identification of Business Processes
• Selection of Business Processes
• Understanding the selected Business Processes
• Redesign of the selected Business Processes
• Implementation of Redesigned Business Processes

The Davenport Methodology: - According to Davenport IT possesses the most

important role for innovating Business Process. According to Davenport within a
business process organizational and Human Resource issues must be
centralized and highlighted rather than technology issues and behavior issues.
Davenport treated important some traditional management functions like
planning, directing, monitoring, decision making and communication, for
managing the changes.

Davenport Methodology consists of Six Steps:

• Visioning and goal setting

• Identification of Business Processes
• Understand and measure processes
• Information Technology
• Process Prototype
• Implementation

The Manganelli/Klein Methodology: - As per Manganelli Klein concentration

should be on Business Processes those directly support the strategic goals of the
company and customer requirements. Business Processes such as knowledge
process which is for product development. According to them organizational
impact, time, risk and cost cause binder to the progress.

Manganelli Klein Methodology consists of Five Steps:

 • Preparation
• Identification
• Vision
• e – design ( technical design, social design)
• Transformation

Kodak Methodology: - This methodology is being applied to Kodak facilities

around the world.
Kodak Methodology has been influenced by the Hammer/Champy
methodology.

Kodak Methodology consists of Five Steps:

• Project Initiation
• Process understanding
• New process design
• Business transition
• Change Management

Techniques of BPR

1) Indicative Thinking: - This technique is use to point out or bring out the
problem or the system which has to be redesigned. Thus this technique is use to
highlight the change in BPR.

2) Flow Charting: - Through this method problems and systems needed change
are soughted out and are placed in an appropriate group.

3) Creative Process Redesign: - Analyzing the current processes and then

designing new business processes.

4) Process Benchmarking: - Benchmarking is to form a standard or criterion of

a product and this is carried out when sufficient number of cases are reported
and available for the purpose of comparison of the reengineered processes.

5) Simulation: - After understanding the changes the work of Reengineering is

started to give a better look.

6) Re – engineering Software: - This makes redesigning easy. Through this a

perfect plan of action can be generated for Re – engineering. BPR is carried out
in speed.
Q.5. Discuss the various steps in BPR implementation in the organizations.

Answer. Steps in BPR implementation in the organizations:

1) First and basic step for implementing the Business Re – engineering

Process is to involve or handle the project to the senior managers in the
operational area, who in Process Re – engineering projects gives
business performance in terms of financial gains as well as customer
satisfaction.
2) For the success of BPR second step is to develop alignment in business
strategy of the organization and IT strategy of the organization so that
both strategy should have better relation, these strategy have field of
activity internally as well as externally.
3) To prepare business case in the next step as business case is the intense
and important as it precisely states the project and its uses for assessing
the outcome of the project to the customers, associates and business
result. It explains the vision and plan for the future and has specific
commitments in terms of objectives to be attained.
Business Case states the time and money required for the project and
pay back period for the same.
4) Introducing Methodology for Reengineering to the team members is
another step because methodology decides the need of the project, and
this makes team members able to understand every aspect more clearly.
So all team members should be trained in methodology.
5) BPR projects create strong impact on processes and organizational
structure---------------------pg 85
6) With the help of external consultants and selected staff within the
organization, senior management implements Process Reengineering
Processes. As external consultants are not sufficient and organizational
staff are involved in execution of the Reengineering. But operational staff
are also not sufficient so the end users are used as they contribute their
knowledge of the existing system. They own the solution, which is sought
to be developed --------------------pg 86
7) Finally the important point is that the Re – engineering team which
implements the BPR project should be a compact team.
Team should consists of members who has knowledge of process inside
out, members doesn’t have knowledge of the process, all members
representing the impacted organizations, technology experts, external
person like consultants, customers, business associates, etc
 Q.6. What are the various barriers that need to be managed for BPR
success?

Answer. Barriers are problems which are unknown, severe, unexpected

and has to be face to complete the project. Barriers create risk factors in
Business Re – engineering projects.

Barriers are clarified into Hard Barriers and Soft Barriers.

They are as follows:

Hard Implementation Barriers: - The Barriers which causes things and

regulation problems are called Hard Barriers.
Eg: - IT problems, resource problems, legal obstacles, etc.

The IT software and hardware which are not suited to support a process
based organization is also a barrier. The organization want to invest their
major in hardware and software after thinking that current legacy systems
will provide the process requirements as well will face this Barrier as
typical.
Lack of space for a work team to meet on regular basis is one of the
typical resource problems.
Various electronic communication equipments are used for easy access of
team members when they are not in direct contact with each other.
As support of work place regulation is necessary for work time flexibility.
Another major barrier is Legal obstacles. This is a big problem when
federal and state regulation obstructs Business Re – engineering Projects.
Eg: - HP was not able to gain as much profit and success after
Reengineering because there was several Legal aspects which does not
allow to carry the work as it was planned.

Soft Implementation Barriers: - The people problems are termed as

Soft Barriers. People means employees and employees always refrain
from accepting the changes in the organization.
Resistance is indirect way for subordinates to say no to the change.
So people resist organizational changes, these resistance to Business
Reengineering change is classified as:
• Internal Resistance
• Internal Group Resistance
• External Resistance

Internal Individual Resistance: - This shows out people’s behavior in the

organization not accepting the project contents and management.
This can be concealed or can be done openly.
Rather than checking for underlying reasons for resisting behavior, management
shortcuts individual resistance with destructive personality explanations.
Internal Group Resistance: - This shows out the group behavior within the
organization. This can be organized formally or informally.

External Resistance: - This is carried out by people outside the organization.

This Resistance takes place by customers, suppliers, public when they are
against the plans which interfere with their interests.

Resistance can be looked from two point of views:

TYPE A Resistance against Business Reengineering Implementation

This Resistance is against reasonable thinking and actions. The people who are
affected by the perspective of the initiators and project team demonstrate this
type of Resistance.
When people resist organizational change, manager has to be careful for the four
causes, i.e.

1] Low tolerance for the change.

2] A misunderstanding of the change and its implications.
3] A desire not to loose something of value.
4] A belief that the change does not make sense in the organization.

TYPE B Resistance against Business Reengineering Implementation

This Resistance is against indoctrination and power usage. This type is when
people resist to the change but they are not accepting their resistance.

Main Barriers comes in a way when people are not informed about how the
change is going to take place and how much it is going to affect them personally
and because of this there come Resistance.
Q.7. Are BPR and TQM are interrelated with each other? Discuss.

Answer. TQM concentrates on step by step improvements, i.e. progressive

improvement and maintaining that improvement.

BPR concentrates on revolutionary and impressive improvements by

organizing around the outcome which is determined by decisive factors of
success.

TQM is a developing access towards the improvement.

BPR is a radical approach towards the improvement.

We should always start with developing approach for improvement in the

processes and products by using TQM approach.

After processes are made, radical approach of BPR can be used to

further reengineer the processes.

After processes are reengineered, to maintain the gains reengineered

processes it is needed again to follow the developing approach for the
improvement i.e. TQM.

Hence after looking at the above points it is clear that if both BPR and TQM
when implemented in right perspective they compliment each other.
The common factors in both the approaches are the issue of cultural change
and change management. Thus it should be sure that organization should
consist of right culture for correct and successful implementation of BPR and
TQM.
Thus it is clear that TQM and BPR are interrelated with each other because
creatively integrating both the concepts leads to successful and profitable
business.