The Business Process Re Engineering

Published Date: 02 Nov 2017

BPR seeks to help companies radically restructure their organizations by focusing on the ground-up design of their business processes. According to Davenport (1990) a business process is a set of logically related tasks performed to achieve a defined business outcome. Re-engineering emphasized a holistic focus on business objectives and how processes related to them, encouraging full-scale recreation of processes rather than iterative optimization of subprocesses.[1]

Business process re-engineering is also known as business process redesign, business transformation, or business process change management.

The role of information technology

Information technology (IT) has historically played an important role in the reengineering concept.[10] It is considered by some as a major enabler for new forms of working and collaborating within an organization and across organizational borders.

Early BPR literature [11] identified several so called disruptive technologies that were supposed to challenge traditional wisdom about how work should be performed.

Shared databases, making information available at many places

Expert systems, allowing generalists to perform specialist tasks

Telecommunication networks, allowing organizations to be centralized and decentralized at the same time

Decision-support tools, allowing decision-making to be a part of everybody's job

Wireless data communication and portable computers, allowing field personnel to work office independent

Interactive videodisk, to get in immediate contact with potential buyers

Automatic identification and tracking, allowing things to tell where they are, instead of requiring to be found

High performance computing, allowing on-the-fly planning and revisioning

In the mid-1990s, especially workflow management systems were considered as a significant contributor to improved process efficiency. Also ERP (Enterprise Resource Planning) vendors, such as SAP, JD Edwards, Oracle, PeopleSoft, positioned their solutions as vehicles for business process redesign and improvement

Integrated Logistics is defined as " the process of anticipating customer needs and wants; acquiring the capital, materials, people , technologies and information necessary to meet those needs and wants; optimizing the goods-or-service-producing a network to fulfill customer requests; and utilizing the network to fulfill customer request in a timely way."

Integrated logistics is a service-oriented process. It incorporates actions that help move the product from the raw material source to the final customer.

Integrated Logistics Management

The movement of raw materials and components to a manufacturing company must be managed. So must the movement of finished goods from the manufacturing plant to further processing, to the retail, or to the final consumer. The management of this movement is called integrated logistics management.

Mega Process Redesign (MPR)

At first a good process is established. As the business grows, the needs of the business change the process. The culture changes the process. The changes are not always for the better. It’s no one’s fault that the process evolved to the current state. Everyone tries to do their best. You are probably the first group of people to look at the complete process from start to finish

Why was it needed?

 

MPR is a well-known problem solving methodology that is used to design world class processes by reducing cycle time, eliminating waste and non-value-added activity. Waste is anything other than the absolute minimum resources of materials, infrastructure and manpower required to add value to the product or service. To increase effectiveness of current activities, design processes and find the causes of errors and eliminate them MPR well-practiced methodology across the organizations.

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Integrated logistics support

Integrated logistics support (ILS) is an integrated and iterative process for developing materiel and a support strategy that optimizes functional support, leverages existing resources, and guides the system engineering process to lower life cycle cost and decrease the logistics footprint (demand for logistics), making the system easier to support. Although originally developed for military purposes, it is also widely used in commercial product support or customer service organisations.

Integrated Logistics  explores how integration is crucial to sound logistics operations within successful and sustainable organizations. It helps create efficient, silo-free logistics systems and decision-making environments, integrating all activities involved in the cost-effective and uninterrupted movement of materials and information from their source to the point-of-consumption.  

Integrated Logistics helps professionals design (or redesign) responsive, integrated systems within cross-functional supply chain and logistics environments to deliver maximum value to all stakeholders while minimizing exposure to service interruptions.

Key characterstics are:

Integrate full systems. Understand, align and integrate all internal and external functions into one cohesive system that encompasses: production planning, procurement, materials management and handling, quality control, inventory control and order processing, warehousing, data exchange, finance, transportation and customer service.

Develop overall supply chain metrics needed to better understand the financial impact of supply chain strategies on the income statement, balance sheet, corporate profitability and return on investment.

Understand and apply diverse operational approaches to inventory management (i.e. Just in Time, Material Requirements Planning, Distribution Resource Planning), while considering the Total Cost of Ownership and the Economic Order Quantity approach to inventory decision-making.

Allocate physical and financial resources to the parts of the organization that best suit the entire logistics system.

Identify legal, ethical and human resource factors that impact decisions.   

Create micro and macro value chains.  

Computer Resources Support

Computer Resources Support includes the facilities, hardware, software, documentation, manpower, and personnel needed to operate and support computer systems and the software within those systems. Computer resources include both stand-alone and embedded systems. This element is usually planned, developed, implemented, and monitored by a Computer Resources Working Group (CRWG) or Computer Resources Integrated Product Team (CR-IPT) that documents the approach and tracks progress via a Computer Resources Life-Cycle Management Plan (CRLCMP). Developers will need to ensure that planning actions and strategies contained in the ILSP and CRLCMP are complementary and that computer resources support for the operational software, and ATE software, support software, is available where and when needed.

Design interface

Design interface is the relationship of logistics-related design parameters of the system to its projected or actual support resource requirements. These design parameters are expressed in operational terms rather than as inherent values and specifically relate to system requirements and support costs of the system. Programs such as "design for testability" and "design for discard" must be considered during system design. The basic requirements that need to be considered as part of design interface include:

Reliability

Maintainability

Standardization

Interoperability

Safety

Security

Usability

Environmental and HAZMAT

Privacy, particularly for computer systems

Legal

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