BPR: Can It Deliver For Your Organization?

By: Sangeeta
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Business process re-engineering aims to analyze and redesign company processes. It leads to dramatic improvement in cost, quality, service & performance. When you go for organizational development process re-engineering, you may expect significant improvements in organizations productivity and profits.

What does it Aim to Do?

The business process started to gain attention since 1990. The main idea behind it is that most businesses are busy automating ineffective processes in their attempt to enhance outputs, which is not a solution. Instead, they should be re-discovering the way output is being generated thus doing away with inefficiencies. BPR aims to remove the bottlenecks in the process and to make the best use of technology to upgrade it leading to better results operationally and financially as well. Following case-studies will help you understand it better:

BPR Case-Study-1:

Fast Food Restaurant
Existing Process: In this restaurant, the order-flow was as under:
1- Customer Places Order
2- Order Goes To Kitchen
3- Meal Is Prepared In Kitchen
4- Food is served to the consumer
BPR Suggestions:
1- Prepare meals portions in the separate center
2- Deliver them to kitchen daily
New Process: The order-flow has now changed under:
1- Customer places order
2- Order goes to the kitchen
3- Instead of cooking order, meal portions are now placed together
4- Food is served to the client
Benefits: After BPR following changes were realized:
• Rapid turnaround time
• Better control
• Better customer orientation and service
• Better quality of product and service

BPR Case Study-2: Cereal Product Company

Existing Process: It starts with harvesting
• It starts with harvest
• Then primary processing is done
• The packing is done to processing plants
BPR Suggestions:
• There was a loss of 20% of grains in the existing process when grains were transported from farm to factories.
• It was suggested that it’s better and more profitable that factories are moved closer to farm.
New Process:
• The factories were moved closer to farms
• Final products were then transported to large centers
Benefits: Following benefits were realized afterward:
• Lesser Losses
• Faster production
From the above two case studies, it is very clear that BPR may be able to deliver results for your organization as well.
So How Can BPR Deliver For Your Organization?
Usually, BPR follows following steps:

Step-1: Identifying & Communicating the Need for Change

First, you have to identify why change is needed? The entire management and the team within the organization have to be convinced about the change. If you want to succeed, you have to get buy-in from the relevant people inside the company. Your efforts might end up getting waste if the project didn’t take off.

Step-2: Get a Team of Experts

Once you have the buy-in from you should put in place relevant team to set the ball rolling. In most cases, your team should have a senior manager, an operational manager, and re-engineering experts. These experts have multi-discipline knowledge so they know it very well what may need to execute the project successfully.

Step-3: Now You Are Ready to Define KPIs and Go After In-efficient processes.

First, you have to identify key performance indicators. If you are a manufacturing company, then you may be looking to lower cycle time, changeover time, defect rate, inventory turnover, etc.

Step-4: It’s Time to Re-Engineer Process

Once you have completed all the analysis, you can start implementing the solutions and changes. Start with smaller ones first and again taken a look at the KPIs, if the new solution works better, it is time to scale-up and change the rest of the processes.

In The End

With organizational development processes re-engineering, you have an organization that delivers better results and is leaner.

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