1. Business Process Reengineering
CEM 515
For: Dr. Abdulaziz Bubshait
By: Hassan Al-Bekhit

2. Presentation Outline
 General Introduction
 Business Process Reengineering
BPR Symbols
 Understand and be able to implement a BPR Strategy
 Understand the main challenges in implementing a BPR
Strategy
 Conclusion: Summary

3. Spectrum of Change
 Automation
 Rationalization
of procedures
 Reengineering
 Paradigm shift

4. Automation
 refers to computerizing
processes to speed up
the existing tasks.
 improves efficiency and
effectiveness.

5. Rationalization of Procedures
 refers to streamlining of
standard operating
procedures, eliminating
obvious bottlenecks, so
that automation makes
operating procedures
more efficient.
 improves efficiency and
effectiveness.

6. Business Process Reengineering
 refers to radical redesign of
business processes.
 Aims at
 eliminating repetitive,
paper-intensive,
bureaucratic tasks
 reducing costs
significantly
 improving
product/service quality.

7. Paradigm Shift
 refers to a more radical
form of change where
the nature of business
and the nature of the
organization is
questioned.
 improves strategic
standing of the
organization.

8. Business Process Reengineering
 “Reengineering 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.”
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9. Key Words
 Fundamental
 Why do we do what we do?
 Ignore what is and concentrate on what
should be.
 Radical
 Business reinvention vs. business
improvement
4

10. Key Words
 Dramatic
 Reengineering should be brought in “when a need
exits for heavy blasting.”
 Companies in deep trouble.
 Companies that see trouble coming.
 Companies that are in peak condition.
 Business Process
 a collection of activities that takes one or more kinds
of inputs and creates an output that is of value to a
customer.
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11. BPR & The
Organization

12. BPR is Not?
 BPR may sometimes be mistaken for the following five tools:
 1. Automation is an automatic, as opposed to human,
operation or control of a process, equipment or a system; or the
techniques and equipment used to achieve this. Automation is
most often applied to computer (or at least electronic) control of
a manufacturing process.
 2. Downsizing is the reduction of expenditures in order to
become financial stable. Those expenditures could include but
are not limited to: the total number of employees at a company,
retirements, or spin-off companies.

13. BPR is Not?
 3. Outsourcing involves paying another company to
provide the services a company might otherwise have
employed its own staff to perform. Outsourcing is
readily seen in the software development sector.
 4. Continuous improvement emphasizes small and
measurable refinements to an organization's current
processes and systems. Continuous improvements’
origins were derived from total quality management
(TQM) and Six Sigma.

14. Reengineering & Continuous
Improvement--Similarities
Reengineering Continuous Improvement
Similarities
Basis of analysis Process Process
Performance measurement Rigorous Rigorous
Organizational change Significant Significant
Behavioral change Significant Significant
Time investment Substantial Substantial
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15. Reengineering & Continuous
Improvement--Differences
Reengineering Continuous Improvement
Differences
Level of change Radical Incremental
Starting point Clean slate Existing process
Participation Top-down Bottom-up
Typical scope Broad, cross-functional Narrow, within functions
Risk High Moderate
Primary enabler Information technology Statistical control
Type of change Cultural and structural Cultural
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16. What is a Process?
 A specific ordering of work activities across time
and space, with a beginning, an end, and clearly
identified inputs and outputs: a structure for
action.

17. What is a Business Process?
 A group of logically related tasks that use the
firm's resources to provide customer-oriented
results in support of the organization's
objectives

18. Why Reengineer?
 Customers
 Demanding
 Sophistication
 Changing Needs
 Competition
 Local
 Global

19. Customer Demands
• expect us to know everything
• to make the right decisions
• to do it right now
• to do it with less resources
• to make no mistakes
• expect to be fully informed

20. Why Reengineer?
 Competition
 Local
 Global
 Change
 Technology
 Customer Preferences

21. Business Process Reengineering
WHY ?
Integrate people, technology, & organizational culture
To Respond to rapidly changing technical & business
environment and customer’s needs to achieve Big
performance gains

22. Why Organizations Don’t
Reengineer?
 Complacency
 Political Resistance
 New Developments
 Fear of Unknown and Failure

23. Performance
 BPR seeks improvements of
 Cost
 Quality
 Service
 Speed

24. BPR Symbols

25. Business Process Flowchart
Symbols
An Activity
A Document
A Decision
Data (input as outputs)

26. Business Process Flowchart
Symbols
A Predefined Process
Start The Start of a Process
End The End of a Process
Representing a Relation

27. Business Process Flowchart
Symbols
Continuation of the process at the same page
at an equal symbol with the same number. Used
when a relation arrow crosses another relation arrow
Off-Page Connector - Process will continue on the
next page
Integration Relation - A relation to another module is
identified and described

28. Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)

29. Data Flowchart Symbols
Manual Data Item
A Database File
Representing a Relation
Continuation
Off-Page Connector

30. Rules For Data
Symbols

31. Rules For Data Symbols
Start Symbol used to identify the start of a business process
Generate
Purchase Activities must be described as a verb
Order
OK? Yes Decisions have only two possibilities (Yes & No)
No
Crossing lines are not allowed
End If one side of the decision has no further processes
defined this symbol has to be used

32. Rules For Data Symbols
I Continuation symbol within the same number must be
present twice on the same page
Purchase
Order Name the document
Off- Page Connector is used to continue a process at the
A next page or to let the process to flow over at the
previous to the next page. If more than one is needed use
A, B, C, D …
Posting
of Bonus Name the data

33. Rules For Data Symbols
Predefined Processes always have a relation to level and
Sub-Process stream by a number in the line below a sub-process
Delivery description
BC 4.04 A predefined process must be described in a different
flowchart. To make the relation clear between the
predefined process and the belonging flowchart a unique
alpha numeric number should be assigned to this
predefined process.

34. Version Management
 For different versions of a business process or
data flow some mandatory information must be
on the flowchart.
 Name of the business process
 Unique number of the business process
 Revision number
 Date of last change
 Author
 Page number with total pages

35. Implementing a BPR
Strategy

36. The C’s related to
Organization Re-engineering Projects
The 3C’s of The 4C’s of effective
organization Re- teams:
engineering:
- Customers - Commitment
- Competition - Cooperation
- Change - Communication
- Contribution

37. Key Steps
Select The Process & Appoint Process Team
Understand The Current Process
Develop & Communicate Vision Of Improved Process
Identify Action Plan
Execute Plan

38. 1. Select the Process & Appoint
Process Team
 Two Crucial Tasks
 Select The Process to be Reengineered
 Appoint the Process Team to Lead the
Reengineering Initiative

39. Select the Process
 Review Business Strategy and Customer
Requirements
 Select Core Processes
 Understand Customer Needs
 Don’t Assume Anything

40. Select the Process
 Select Correct Path for Change
 Remember Assumptions can Hide Failures
 Competition and Choice to Go Elsewhere
 Ask - Questionnaires, Meetings, Focus Groups

41. Appoint the Process Team
 Appoint BPR Champion
 Identify Process Owners
 Establish Executive Improvement Team
 Provide Training to Executive Team

42. Core Skills Required
 Capacity to view the organization as a whole
 Ability to focus on end-customers
 Ability to challenge fundamental assumptions
 Courage to deliver and venture into unknown
areas

43. Core Skills Required
 Ability to assume individual and collective
responsibility

44. Use of Consultants
 Used to generate internal capacity
 Appropriate when a implementation is needed
quickly
 Ensure that adequate consultation is sought
from staff so that the initiative is organization-
led and not consultant-driven
 Control should never be handed over to the
consultant

45. 2. Understand the Current Process
 Develop a Process Overview
 Clearly define the process
 Mission
 Scope
 Boundaries
 Set business and customer measurements
 Understand customers expectations from
the process (staff including process team)

46. 2. Understand the Current Process
 Clearly Identify Improvement
Opportunities
 Quality
 Rework
 Document the Process
 Cost
 Time
 Value Data

47. 3. Understand the Current Process
 Carefully resolve any inconsistencies
 Existing -- New Process
 Ideal -- Realistic Process

48. 3. Develop & Communicate Vision
of Improved Process
 Communicate with all employees so that they
are aware of the vision of the future
 Always provide information on the progress of
the BPR initiative - good and bad.
 Demonstrate assurance that the BPR initiative is
both necessary and properly managed

49. 3. Develop & Communicate Vision
of Improved Process
 Promote individual development by indicating
options that are available
 Indicate actions required and those responsible
 Tackle any actions that need resolution
 Direct communication to reinforce new patterns
of desired behavior

50. 4. Identify Action Plan
 Develop an Improvement Plan
 Appoint Process Owners
 Simplify the Process to Reduce Process Time
 Remove any Bureaucracy that may hinder
implementation

51. 4. Identify Action Plan
 Remove no-value-added activities
 Standardize Process and Automate Where
Possible
 Up-grade Equipment
 Plan/schedule the changes

52. 4. Identify Action Plan
 Construct in-house metrics and targets
 Introduce and firmly establish a feedback system
 Audit, Audit, Audit

53. 5. Execute Plan
 Qualify/certify the process
 Perform periodic qualification reviews
 Define and eliminate process problems
 Evaluate the change impact on the business and
on customers
 Benchmark the process
 Provide advanced team training

54. Information
Technology & BPR

55. Benefits From IT
 Assists the Implementation of Business
Processes
 Enables Product & Service Innovations
 Improve Operational Efficiency
 Coordinate Vendors & Customers in the Process
Chain

56. BPR Challenges

57. Common Problems with BPR
 Process Simplification is Common - True BPR is
Not
 Desire to Change Not Strong Enough
 Start Point the Existing Process Not a Blank
Slate
 Commitment to Existing Processes Too Strong
 REMEMBER - “If it isn’t broke …”

58. Common Problems with BPR
 Process under review too big or too small
 Reliance on existing process too strong
 The Costs of the Change Seem Too Large
 BPR Isolated Activity not Aligned to the
Business Objectives
 Allocation of Resources
 Poor Timing and Planning
 Keeping the Team and Organization on Target

59. How to Avoid BPR Failure
 To avoid failure of the BPR process it is recommended that:
 BPR must be accompanied by strategic planning, which
addresses leveraging Information technology as a competitive
tool.
 Place the customer at the centre of the reengineering effort,
concentrate on reengineering fragmented processes that lead to
delays or other negative impacts on customer service.
 BPR must be "owned" throughout the organization, not driven
by a group of outside consultants.
 Case teams must be comprised of both managers as well as those
who will actually do the work.

60. How to Avoid BPR Failure
 The Information technology group should be an
integral part of the reengineering team from the start.
 BPR must be sponsored by top executives, who are not
about to leave or retire.
 BPR projects must have a timetable, ideally between
three to six months, so that the organization is not in a
state of "limbo".
 BPR must not ignore corporate culture and must
emphasize constant communication and feedback.

61. Summary
 Reengineering is a fundamental rethinking and
redesign of business processes to achieve
dramatic improvements
 BPR has emerged from key management
traditions such as scientific management and
systems thinking
 Rules and symbols play an integral part of all
BPR initiatives

62. Summary
 Don’t assume anything - remember BPR is
fundamental rethinking of business processes