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Instruments used in Business Process Reengineering

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by

Inken Kröger

on 29 November 2013

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Transcript of Instruments used in Business Process Reengineering

Instruments used in
Business Process Reengineering

Inken Kröger
Organizations Theory and Design
Identifying
the process

giving the employees and understanding of the process, relevant activities and the organizational change
Management accounting
process redesign and evaluation

- final shifting of responsibility to process teams
- improve and minimize points of intersection
- shifting of task performance to effective places to guarantee principle of causation
Positioning
Benchmarking
"learning from the best"
Change Management
BPR:
radical redesign of fundamental core processes
aim:
improving cycle times, productivity, quality and flexibility to increase customer value

Where are we
analyzing and define current situation:
-company's infrastructure
-organizational structure
-culture
Where do we want to be
defining operative and strategic aims of BRP
Internal Benchmarking
External Benchmarking
Company specific
Corporation specific
market-specific
Industry-specific
independent
visioning, identifying, analyzing
decentralize management accounting
"self- management- accounting" by the employees who are involved in the process
managing task 1
managing task 2
1. Preparing for a change
- internal or/ and external advisors train and coach employees
- information transparency
giving employees orientation, preventing demotivation
possibility to involve employees in implementation process
Activity based costing
overhead calculation where costs are matched with activities
(=cost drivers)
assigning activities to related cost driver
calculating activity cost based on cost driver usage
aim: assigning costs directly to the tasks in the process
Value chain
by Michael E. Porter
reflection of strategy and competitive advantage
identifying strength and weakness
IT infrastructure
implement IT infrastructure according to the costs-by-cause-principle
-understanding of enabling technologies
-proper selection of IT platforms and overall system architecture
-adapting a flexible IT structure
specific description of the core process and the integrated activities

graphics software and case tools: useful for process analysis
databases: improve customer satisfaction
tools:
process modeling
= graphical notation of process map, activities and intersection points
-> documentation of the process and information tool for employees, improves communication, discloses strengths and weaknesses, i.e. bottlenecks
tools:
- Business Process Modeling Notation (BPMN)
-Event-driven-process-chain
process simulation
-simulation of the process scenario: task times and flow times
-vertical procedures horizontal processes
Management
Sales
manufacturing
quality management
1. Identify
process
2. simulate
horizontal positioning
product 1
product 2
product 1
product 2
product 1
product 2
manufacturing
product 1
manufacturing
product 2
quality management
product 1
quality management
product 2
sales
product 1
sales
product 2
-risk analysis of scenario:
- SWOT analysis
- FMEA
SWOT
- popularity of brand
- customer value high product standards
- high employee satisfaction
-focus on personal service (local stores worldwide)
Strengths
Weaknesses
Opportunities
risks
- increase customer value and loyalty
- increase quality while reducing costs
-identify core products
-reach higher target
- high prices
- dependent on regular customers
-innovation lack
-small target
- loose customers who value traditional business strategy
- loose employees satisfaction
- unpredictable distribution problems due to process lacks
customer surveys
- Did the BPR increase customer satisfaction?
- does the customer notices any changes?
- which tasks need to be improved
performance measurement
-sales
-mark-up
-market share
-contribution margin

employee surveys
did the BRP influence employees satisfaction positively/ negatively?
- are employees more motivated due to more responsibility?
Thank you for your attention!
Sources
-http://www.economics.phil.uni-erlangen.de/lehre/bwl-archiv/lehrbuch/hst_kap3/org_vgl/org_vg_h.PDF
-http://www.bain.com/publications/articles/management-tools-benchmarking.aspx
-http://www.wi.hs-wismar.de/~laemmel/Lehre/WA/Artikel1006/grafunder_BusRE.pdf
-http://www.globalbenchmarking.ipk.fraunhofer.de/benchmarking/types-of-benchmarking/
-http://www.change-management.com/tutorial-change-process-detailed.htm
-http://www.accountingcoach.com/activity-based-costing/explanation
-http://www.netlib.com/bpr1.htm
-www.orghandbuch.de
-http://swotanalyse.net/
-Porter, Michael E.; Competitive advantage: creating and sustaining superior performance; The free press; 1985
-Davenport, Thomas H.: Process Innovation: Reengineering Work Through -Information Technology, E&Y, 1993

- control of enabled process
- improvement actions of process teams
evaluation
redesign
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