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Business Process Re-Engineering

Transcript: Bibliography: Albadvi, A., Keramati, A. & Razmi, J., 2007. Assessing the impact of information technology on performance considering the role of intervening organizational infrastructures and business process reengineering. International Journal of Production Research, 45(12), pp. 2697-2734. Al-Mashari, M., & Zairi, M., 1999. Business process re-engineering implementation process: an analysis of key success and failure factors. Business process management, 5 (1), 87-112. Boudreau, M.-C., & Robey, D., 1996. Coping with contradictions in business process re-engineering. Information Technology & People, 9 (4), 40-57. Browne, J., O’Sullivan, D., 1995. Re-engineering the Enterprise. London: Chapman and Hall. Burke, G., Peppard, J., 1995. Examining business process re-engineering. London: Kogan Carr, D.K., Johansson, H.J., 1995. Best Practices in Reengineering. New York: McGraw-Hill, Inc. Childe, S. J. & Bennett, M. J., 1994. Frameworks for Understanding Business Process Rengineering. International Journal of Production Management, 14(12), pp. 22-34. Coulson-Thomas, C., 1997. Business Process Re-engineering: myth & reality. London: Kogan Page Limited. Dutta, S., Manzoni, J.-F., 1999. Process re-engineering, organisational change and performance improvement. London: McGraw-Hill. Goel, S., Chen, V., 2008. Integrating the global enterprise using Six Sigma: Business Process Reengineering at General Electric Wind Energy. International Journal of Production Economics, Volume 113, pp. 914-927. Grover, V., Kettinger, W. (1995). Business process change. Harrisburg, USA: Idea Group Pub. Guimaraes, T., & Bond, W., 1996. Empirically assessing the impact of business process re-engineering on manufacturing firms. Gestao & Producao, 3 (1), 8-32. Habib, N. M., 2013. Understanding critical success and failure factors of business process re-engineering. International review of management and business research, 2 (1), 1-10. Holland, D., & Kumar, S. 1995. Getting past the obstacles to successful re-engineering. Business Horizon , 79-85. Johansson, H. J., McHugh, P., Pendlebury, A. J. & Wheeler III, W. A., 1993. Business Process Reengineering: BreakPoint Strategies for Market Dominance. 1 ed. Surrey: Britain: John Wiley & Sons Ltd. Lockamy, A., Smith, W. 1997. A strategic alignment approach for effective business process reengineering: linking strategy, processes and customers for competitive advantage. International Journal for production economics , 141-153. Obolensky, N., 1996. Practical Business Re-Engineering: Tools and Techniques for Achieving Effective Change. London: Kogan Page Limited. Paton, R.A., McCalman, J., 2000. Change Management: A guide to effective implementation. London: SAGE Publications Ltd. Peppard, J., Rowland, P., 1995. The essence of business process re-engineering. New York: Prentice-Hall. Petrozzo, D.P., Stepper, J.C., 1994. Successful Reengineering. New York: Van Nostrand Reinhold. Internet:, (2014). [online] Available at: [Accessed 8 Nov. 2014]. The Economist, 2009. Business process re-engineering. [online] Available at: [Accessed 8 Nov. 2014]. Successful examples of BPR Four key steps to BPR: Mike Tighe Mark Laska Laura Ennis David Hannon Christopher Mulenga Ewelina Milena Jagiellowicz Causes of Failure: Problems in communication, leaders & support, ineffective BPR teams, poor project planning, lack of IT investment What is BPR? MT530 - Dr. Dónal O'Brien Why are companies using BPR? 1. Strategic processes 2. Operational processes 3. Enabling processes Thanks for your attention! We will gladly answer your questions now. Where is BPR appropriate? Business Process Re-Engineering 1. Corporate change 2. Overall performance: Streamline system Improve cost Example: Taco Bell K-Minus program 60-80% BPR Failure Rate Not every BPR implementation process has resulted in failure, e.g. Walmart, Ford Motors 5 critical success factors Al Mashari & Zairi (1991) Step 1: determine change Step 2: plan process of change Step 3: implementation of BPR Step 4: monitoring process Improvment Initiative - Examination of core business processes rather than o disparate business functions Benefits - Cost savings, improved productivity, competitive advantage Note of caution Reduce Staffing Needs Administrative tasks e.g. Order Management, Customer Service Previous levels of service with fewer staff Cost Reduction For key business processes e.g. Manufacturing, Design Use of new Information Technologies How to use BPR? When to use BPR?

Chapter 36- Business Process Re-engineering

Transcript: Prepared by: Judith E. Vidal Business Process Re-engineering Meet the Team "85% of the reasons for failure to meet customer expectations are related to deficiencies in systems and processes… rather than the employee." -Dr. W. Edwards Deming About "Business Process Re-engineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed." - Hammer and Champy, 1993 Re-engineering ignores what is and concentrates on what should be. Fundamental Disregarding all existing structures and procedures and inventing completely new ways of accomplishing work. Radical Business Process "A structured, measured set of activities designed to produce a specified output for a particular customer or market. It implies a strong emphasis on how work is done within an organization. " -Davenport 1993 Used for quantum leaps in performance. Dramatic Pricing Plan Objectives of BPR Innovation Productivity Quality Customer Focus Speed Compression Flexibility The heart of business re-engineering or process renovation is activity analysis. Approach of BPR 1.What activities are done, 2.How many people performed the activity, 3.The time and resources required to perform the activities, and 4.An assessment of the value of the activities to the organization, including a recommendation to select and keep only those that add value. Activity analysis normally should produce the following outcomes: Offices BPR Steps 1. State a Case for Action. 2. Identify the Process. 3. Evaluate Enablers. 4. Understanding the Current Process. 5. Create a New Process Design. 6. Implement the Re-engineered Process. 7. Continuous Improvement. Contact Advantages and Disadvantages - Cuts costs and Improves Functionality. - Boosts Competitiveness. - Satisfaction. - Growth of Knowledge. - Solidarity to the Company. - Requires Investment. - May Lower Worker Morale. - Resistance to Change. - Drawbacks to Business Process Re-engineering. - Higher Demands to the Workers. Thank You! Thank You!

Process Re-engineering

Transcript: But: Process Re-engineering & Lean thinking Limitations of BPR in healthcare Redesigned a $2 billion division 15% over budget --> 15% under budget Cut response times in half 33% late deliveries --> 5% late deliveries Reengineered their patient process using Lean Reduced Processes from 19 --> 11 Time spent in Endoscopy reduced from maximum of 375 minutes to 80 minutes Lead to 95% Positive Patient Satisfaction Advantages manager vs consultant responsiveness of system vs clinical priorities Kodak - 1989 Merely changing existing business practices Reinvent business model altogether Improves Multidisciplinary practices Maximises efficacy and efficiency Reduces costs Reducing time spent in hospital To Conclude... Should we be looking beyond BPR? Complex nature of healthcare industry Cut numbers in accounts payable dept by 75% Automated Processes Desire to change not strong enough/reliance on existing processes too strong Process under review too big or too small Process simplification is common: true BPR is not Carries unrealistic scope and expectation Re-engineering brought about short-term success but was not sustainable in the long run Endoscopy on one hand: does nothing to regenerate core strategies complexity of healthcare Advantages of BPR in Healthcare Business “Unless we change the rules, we are merely rearranging the deck chairs on the Titanic” Top- down approach may be resisted by staff Employee de-motivation Difficult to understand Clash of cultures between managers and clinicians Fails to consider the human aspects of processes Healthcare Successful Examples ...a radical redesign of processes to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality and speed... Father of Modern Endoscopy proven to increase efficiency and cut costs M. Hammer BPR in Healthcare: is it the real deal? Values in Healthcare MAIN CONCEPTS • Organise around outcomes rather than tasks. • Replace narrow specialists with multi-skilled workers, often working in self-managed teams. • Centralisation is key. • Link parallel activities instead of integrating their results. Clinical- achieve the best patient outcome Operational- effectiveness of service, measured primarily in terms of cost Experiential- experience of care (for patients and carers) Toyota pioneered the lean thinking transformation method Common Problems What is BPR/Lean? Toyota Production System Ford - Early 1980s M. Hammer, original pioneer of business process re-engineering Drives efficiency Drives competitiveness Drives cost down Drives positive culture Reduction of waste steps and emphasis of value adding steps This has been translated into healthcare with success and failure

Business Process Re-engineering

Transcript: Align and execute supply strategy changes between IADP and MMBP Apply triggers (from Bloodbank, Billings, Inventory Review, ...) to make timely changes to the supply strategy. DONE!! Business Operations Forum Bloodbank 32nm: Complete SNB pilot on 2+1 WIP 22nm: Phase 1: Run on IVB 4+1, 2+2 First run WW51 Phase 2: Run on IVB 4+2, 2+1 in WW3 Elegant Sku Watch Enhancements identified. Development and plans TBD Centralized Build Plan Change meeting Kicked off SNB team to design business process WIP Develop pilot plans WW3 Business Operations Forum Running for > 1 month. Continue to work on CPU indicators in Q1. Bloodbank (BB) The New Weekly Process to Actively Manage Pipeline Inventory Fab-process oriented wafer start changes,using Statement of Supply (SOS) excel file. Status: 32nm BB: Working on ATOM for > 1 year, pilot with Sandybridge started in Q4'12 SNB 2+1 pilot in progress 22nm BB is next pilot, with IVB MB/DT Upon assessing IVB modeling, it will be able to use the SOS excel file, just like ATOM and SNB. Implement in 2 phases based on complexity of the wafer Phase 1: IVB 4+1, 2+2 Phase 2: IVB 4+2, 2+1 Tool Selection Elegant Sku Watch 22nm Pilot Strategy Business Process Re-engineering The New Weekly Process Bloodbank Elegant Sku Watch Centralized Build Plan Meeting Business Operations Forum Goal: Identify issues/trends and drive appropriate Build Plan actions Create Biz Ops Review meeting weekly that identifies business issues and reviews key indicators Focus on business environment and impacts to SPO Identify watch items supply strategies & influence opportunities Team: SPO Staff, IADP Staff, CPU Planning, MMBP This meeting replaces Tuesday’s Supply Ops Friday’s Supply Ops agenda remains OM agenda, inventory, materials, product issues, etc. Next Steps/Status Finalize initial indicators and publish in Supply Ops by EOY BAB/demand, Allocation/Response and Inventory indicators defined. Work on FS, AT indicators Q1'13. Initial focus on CPU; goal to incorporate CS/Atom by EOY CPU discussions happening. Rest TBD High-Level Roadmap Pilot Strategy 22nm Timeline Status/Help Needed Centralized Build Plan Change meeting Supply Strategy Vision Start with SNB & IVB* * depends on IVB readiness; Bloodbank is priority All of IADP uses a single business process for setting supply strategies Strategies to achieve Vision Critical Path Proposed Workflow Tactical Finished Goods build plan changes based on real-time environmental data (bookings, billings...) and supply strategies Status: Rev 0 done on SNB MB in Q2'12 Enhancements desired prior to proliferation. This is lower priority at this point. MMBP provides Consumption Signals and Business Environment Preliminary Judged Demand, Judged Demand, Geo Demand, Upper Case, etc. Strategic Targets, potential price move, and Roadmap Impacts IADP chartered with proposing and driving Supply Strategies Finished Good Supply Strategy for ATM Request Die Supply Strategy for SDA Wafer Start Request (ADI + CW) Supply Strategies to be Ratified by MMBP/IA DP Mgmt Robust tool enabling IADP to effectively and efficiently generate Supply Strategies Reporting Capability for quick review & ratification at various levels of aggregation Product, Platform, Vertical, Component Total (CPU / CS NB+PCH) Next Steps Engage SNB experts on concept - WW51 Done SNB experts to build business process/triggers/attendees - WW52/1 Review business process design - WW3* Determine pilot and next steps - WW3 * WW2 is Reset week

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