Business Process re-engineering - P2

Question 1

What is BPR?

Answer 1

Far-reaching on-off changes to improve operations or processes
Fundamental rethinking and radical redesign of business processes to acheive dramatic improvements in critical contemporary measures of performance such as cost, quality, service and speed

Question 2

What are the four stages of any BPR project?

Answer 2

Process identification
Process rationalisation - understand and measure the existing processes so that a baseline against which to measure improvement is set
Process re-design
Process re-assembly - implement the revised system

Question 3

What are the advantages of BPR?

Answer 3

Increased ability to meet customer needs and helps to give focus to the business
Cost advantages that assist the organisations competitive position
Encourage a long term strategic view of operational processes by asking radical question
Helps overcome the short-sighted approaches that sometimes emerge from excessive concentration on functional boundaries
Use technology to find innovative ways to improve processes
Reduce organisational complexity by eliminating unneccessary activities

Question 4

What are the criticisms of BPR?

Answer 4

Incorrectly seen as a means of making small improvements in existing practices
Seen as a single, one for all cost cutting exercise
Requires a far reaching and long term commitment by management
Business processes not redesigned but merely automated
Efficiency of one department was improved at the expense of overall process
Some companies become so focused on improving internal processes that they fail to keep up with competitors activities in the market.