22 May Business Process Reengineering
Business Process Reengineering
Business process reengineering (BPR) is identified as one of the most important solutions for organizational improvements in all performance measures of business processes. However, high failure rates 70% is reported about using it the most important reason that caused the failure is the focus on the process itself; regardless of the surrounding environment, and the knowledge of the organization. The other reasons are due to the lack of tools to determine the causes of the inconsistencies and inefficiencies.
BPR is defined as “a fundamental rethinking and radical redesign of business processes to achieve substantial improvements in all performance metrics such as cost, speed, quality, and service.” Each of private and public organizations are either subject to use BPR or looking for an alternative methods which achieve the same results. Although a lot of organizations embraced the concept of BPR programs, only a few of them success, while the other fail with a high failure rate (e.g. 70%) (Alhaji et al, 2013; Rao et al, 2012).
BPR Used since 1990 works on a large scale and had achieved many benefits, such as lower costs and increases production, improves products and increases customer satisfaction. There are many definitions for re-engineering processes and these definitions vary in focus.
BPR is defined as “A radical redesign of processes to gain significant improvements in cost, quality, and service” (Davenport et al, 1990). That means neglect all existing structures around the procedures, inventing new ways to end, accomplish work and get the job done in record time. Re-engineering is the re-renewal of the business process starts with assumptions and does not take anything for granted.
BPR is “an approach used to create a computer-based system for the management of the supply chain traceability information flows” (Hammer et al, 1993). It has emerged from key management traditional like systems thinking and scientific management. “The development of the Information system can be regarded as business process reengineering practice, either because it automates some human-based processes or because it replaces an existing legacy system” (Towers, 1994).
Also, BPR is defined as “Methodologies to change the internal business of the organization in response to environmental and requirements changes” (Covert, 1997). Business process “is a group of logically related tasks using the firm’s resources to provide customer-oriented results to support the organization’s objectives” (Vergidis, 2008).
Another definition is “the radical redesign fundamentally of a business process to gain dramatic improvements in performance measures such as quality, cost, speed, and service” (Abdi et al, 2011). This definition contains keywords: fundamental, radical, dramatic and process, which implied that before reengineering it is necessary to understand the process and the fundamental business operation, while it ignores the underlying rules and assumptions of the traditional/old business processes and to radically redesign the business process for dramatic performance can be measured in terms of time, speed, cost, and quality.
Business process reengineering (BPR) has been proposed as an effective managerial tool to deal with technological changes as well as the marketing changes in today’s competitive markets, which minimizes activities costing across the processes or the entire organization by analyzing and redesigning workflow and processes inside and outside the organization (Omidi et al, 2016).
BPR projects, by nature, entail major changes in business processes that may lead to organizational instability and failure (Abdolvand et. al., 2008). It is reasonable to expect business process re-engineering projects to have a significant and measurable effect on firm’s performance (Pattanayak et al, 2015).
BPR is known by many names, such as “core process Redesign”, “new industrial engineering” or “working smarter”.
BPR is commonly viewed as a top-down solution from a management perspective.
BPR can be done successfully if it considers all the success factors, use the organization processes and its environment knowledge around these processes.
The critical success factors (CSF) of BPR described by many authors, to improve the implementation of BPR generally in all sectors. These factors include for example, “top management,” “commitment and support,” “education of manpower,” and all of these factors play a significant role in the success of BPR.
BPR success factors including “egalitarian leadership,” “working environment,” “top management commitment,” “use of information technology”, and “managerial Support” (AbdEllatif et al, 2017).
The most favourable directions for BPR initiatives are addressed by several decision supports, that apply however just to peculiar features of the business strategy, such as the technical aspects of the process (Aldowaisan et al, 1996) or single units of the enterprise (Crowe, 1997). Reijers and Mansar (Reijers et al, 2005) provide a framework of best practices for BPR tasks according to the focus of redesign efforts. He et al. (He et al, 2009) have developed a Fuzzy Analytical Hierarchy Process to support the choice among different alternatives of possible BPR initiatives. Eventually, Cho and Lee (Cho et al, 2011) develop a web-based tool for choosing the most suitable approach for Business Process Management, according to the evaluation criteria dictated by the characteristics of the firm under investigation. A methodological approach, namely Process Value Analysis (PVA) (Borgianni et al, 2010), has been developed in the perspective of individuating the business segments needing major reengineering efforts. The methodology characterizes the main phases of an industrial process by quantitatively determining their contribution to avoid dissatisfaction and to provide unexpected value for customers. It takes into account also the resources spent to fulfil the planned customer requirements. This allows highlighting the value bottlenecks of the business process, so as to address the reengineering priorities. An akin objective is pursued through the methodology proposed by Jammernegg and Kischka (Jammernegg et al, 2005), that focuses nevertheless just on the enhancement of a peculiar segment of the business processes, i.e. supply chains. The PVA simulates the interplay between QFD and Kano model, although the phases constituting the business process are considered instead of engineering requirements. The methodology differs also from the already cited proposal advanced by Jagdev et al. (Jagdev et al, 1997), because it investigates the single constituent activities and phases of a business process instead of global characteristics (Borgianni et al, 2015).
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