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Business process re-engineering (19 slides)

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  1. Introduction
  2. Understanding the critics
  3. Meaning of business process re-engineering (BPR)
  4. Methodology of BPR
  5. Queries regarding BPR
  6. Uses of BPR
  7. Benefits of Information Technology (IT)
  8. Case studies: Procter and Gamble
  9. Problems encountered by BPR
  10. Conclusion
  11. Indicative bibliography

The purpose of re-engineering is to "make all your processes the best-in-class." BPR echoes the classical belief that there is one best way to conduct tasks. In the early 1900's, Henri Fayol originated the concept of re-engineering: "To conduct the undertaking toward its objectives by seeking to derive optimum advantage from all available resources." In 1990, Michael Hammer, accused managers of having focused on the wrong issues. He claimed that most of the work being done does not add any value for customers, and this work should be removed, not accelerated through automation. BPR was a way to dehumanize the work place, increase managerial control, and to justify downsizing, i.e. major reductions of the work force.

[...] BPR is a business tool with a high price and gradual returns BPR has been used by corporations as an excuse for job cuts which has tarnished the name with employees. Specifically, in 1995, Pacific Bell called for 10,000 job cuts, followed by Apple Computer Incorporated. Both used the word reengineering to explain the job cuts. One of the hazards of BPR is that the company becomes so wrapped up in "fighting its own demons" that it fails to keep up with its competitors in offering new products or services. [...]

[...] Business Process Reengineering is a management approach aiming at improvements by means of elevating efficiency and effectiveness of the processes that exist within and across organizations. It is a fundamental and radical approach by either modifying or eliminating non-value adding activities. BPR METHODOLOGY Project Kick-off Document the Current Processes Establish Key Performance Measures Develop and Test Future Processes Prioritize and Commit to Future Processes Plan the Implementation Implement the Future Processes QUERIES REGARDING BPR Why Do Some BPR projects fail? [...]

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