Business process Re-engineering

Prepared by:
Kalpesh Patel (221121)
Srinivas Patil (221125)
Avradip Paul (221127)
 BUSINESS PROCESS

Business processes are simply a set of

activities that transform a set of inputs into
a set of outputs (goods or services) for
another person or process using people and
tools. We all do them, and at one time or
another play the role of customer or supplier
Why Re-engineering
• Businesses to stay competitive in today's
marketplace
• Customers are demanding for better and better
products and services
• Organisation often inwardly focused
• Vertical chains of command
• Lack of trust
• Limited training
What is Business process
Re-engineering
Fundamental re-thinking and radical re-
design of business processes to achieve,
dramatic improvement in critical,
contemporary measures of performance,
such as cost, quality, service and speed…
……………Michael Hammer
Objectives

Lower the cost

Increase quality &

Increase the quantity of service

Key areas
Emphasize customer satisfaction
 Use performance improvement programs and problem
solving techniques
Focus on business processes
Use teams and teamwork
 Bring about changes in values and beliefs
 Work to drive decision making down to lower levels in
the organization
 Require senior level commitment and change
management for success
Characteristics
Process based
Fundamental rethink
Radical improvement
Integrated change
People centred
Mindset change
Process-based
Replace traditional management
philosophy
Look at business from outside in
Concentrate on end-to-end management
of processes
Fundamental Rethink
A zero-based approach to the redesign of key
processes
Three key issues
The extent current structure detracts from creation
and delivery of value
The retarding effect that structure can have
The unresolved cross-functional conflicts and
tensions
Radical improvement
Avoid scaling down ambitions
Emphasis on achieving dramatic and
sustainable leaps in performance
Re-engineering not appropriate if
alternative approach will achieve same
gains
Integrated Change
Major change adds pressure
Personal ambition and competing
initiatives - divert attention and resources
The approach should deliver a balanced
and holistic solution
People and training put in place
People Centred
Understanding of business goals
Knowledge of processes
Ability to make decisions and take risks
on behalf of organisation
Coaching of staff
Mindset Change
Discard prior conditioning
Build and communicate a shared
understanding of the organisation’s future
Create an environment and infrastructure
that promotes learning and imagination to
guide decisions
A five-step approach to Re-engineering
Develop the business vision and process objectives
- Cost reduction
- Time reduction
- Quality improvement
Identify the business processes to be redesigned
Understand and measure the existing processes
- avoid the repeating of old mistakes
- provide a baseline for future
improvements
• Design and build a prototype of the new
process

• Identify IT levers
Process
Role of Information technology
Shared databases, making information available at many
places
Expert systems, allowing generalists to perform specialist
tasks
Telecommunication networks, allowing organizations to
be centralized and decentralized at the same time
Decision-support tools, allowing decision-making to be a
part of everybody's job
Wireless data communication and portable
computers, allowing field personnel to work
office independent
Interactive videodisk, to get in immediate
contact with potential buyers
Automatic identification and tracking,
allowing things to tell where they are, instead
of requiring to be found
High performance computing, allowing on-
the-fly planning and revisioning
Critics of the BPR approach
label BPR was used for major
workforce reductions
Lack of management support for
the initiative and thus poor
acceptance in the organization.
Exaggerated expectations
regarding the potential benefits
from a BPR initiative and
consequently failure to achieve
Cont……
• Implementation of generic so-called best-
practice processes that do not fit specific
company needs.
• Underestimation of the resistance to
change within the organization.
• Over trust in technology solutions.
• Performing BPR as a one-off project with
limited strategy alignment and long-term
perspective.
• Poor project management.
Success
Procter and Gamble
General Motors
American Airlines
Southwest Airlines
Dell
Ford
Case Study:
Re-engineering Process
successfully implemented at a
hospital in Singapore for
improving the services provided
to the customers (Patient) and
increase the efficiency without
sacrificing the quality
Patient type and Utilization
Location Capacity Total Entries Average minutes per entry Utilization (%)

Entrance 1 45.65 80.69 33.26

Pre Op 20 63.65 3012.29 92.43 (Bottle

Recovery
neck)
16 50.85 31.49 0.99

Exit 1 50.85 0.00 0.00

OT (CLR) 1 5.20 199.75 10.24

OT (CTS) 1 2.75 286.62 8.18

OT (ENT) 1 4.90 286.56 14.26

OT (GES) 1 18.45 279.87 69.09

OT (GYN) 1 6.10 194.34 11.58

OT (Others) 1 6.60 1478.34 88.87

OT (OTO) 1 6.10 1790.40 100.00

OT (PLS) 1 2.25 350.80 8.56
 18.25

No 1 to 8- Surgeons
12.37
% No 9- Anaesthetist

6.26

4.11

1.55 2.23
1.10 1.29 0.90
Simulation Models
Model 1- Shift Model
Model 2- Shift Model with Increased Staff
Model 3- Declassified Operating Theatres Model

The three suggested models for Re-engineering were

similarly run for 168 hours with a warm-up period of 48
hours, with 20 replications
 Utilization (%)

Location
Original Model Model 1 Model 2 Model 3

Entrance 33.26 59.16 55.76

23.00
Pre Op 92.43 96.40 96.06
69.36
Recovery 0.99 1.05 0.97
1.90
Exit 0.00 0.00 0.00
0.00
OT(CLR)/OT1 10.24 9.23 10.29
92.44
OT(CTS)/OT2 8.18 10.34 9.18
91.13
OT(ENT)/OT3 14.26 13.05 15.85
92.49
OT(GES)/OT4 69.09 78.37 69.21
93.94
OT(GYN)/OT5 11.58 10.46 9.42
92.77
OT(Others)/OT6 88.87 91.04 83.37
94.27
OT(OTO)/OT7 100.00 100.00 100.00
94.15
OT(PLS)/OT8 8.56 7.34 7.45
94.12
 Original Model 1 Model 2 Model 3
Model

Efficiency 45.60 45.30 44.50 64.80

(%)

 Source
BUSINESS PROCESS REENGINEERING AT THE HOSPITALS:
A CASE STUDY AT SINGAPORE HOSPITAL
Arun Kumar and Linet Ozdamar
School of Mechanical & Production Engineering
Nanyang Technological University
50 Nanyang Avenue, SINGAPORE-639798