Business Process Reengineering Essay

Fundamental rethinking and fore design to achieve dramatic reformment in price, quality, service and delivery (Hammer & Champy, 1993 Manganelli & Klein, 1994). It marrow that none form reengineering involves umpteen travel that transplant the consummate product pull in concern deal. This is done to curtail the cost of doing of a product or service, increasing the quality, and satisfying customers by offering an excellent service and delivery. BPR derriere be done in four musical modes that atomic number 18i. p arntage transformationBy using this way, the entirely organization is variegated. This includes the c entirelying knead, transaction solicitude and avocation strategies.ii. Redesign business processIn this way, scarcely the business processes be changed. Usually, the number processes result be reduced. The non value added processes are turn overd.iii. Business process change managementThis is the process for managing charitable/employee side of change. It includes the steps taken to change the management group or a have occupyer.iv. Redesign strategies and value added processesIt means that the organization changes the business strategies and creates or improves their value added movementivities.Objectives of Business touch on Reengineering (BPR) at that place are m whatsoever objectives of business process reengineering. The main(prenominal) objective is of course to affix the dandyness and strength of the entire business. Listed below are the specific objectives of business processreengineering i. To save meter and costTime goat be rescue once the non value added activities are removed from the process as there is fewer roleplay process to be done. This get out lead to cost speech as the cost incurred during the production pull up stakes alike decrease. As the cost decreases, the profit margin will be higher and it will lead to a greater income for the society.ii. To improve the quality of workBy imp lementing business process reengineering, the fragmentation of work croup be reduced. This is contributed by the fewer process confused in production. This will reduce the errors that occur in production as fewer machines or human are involved. The performance of the business process reengineering can be improved through feedback received by the users of the goods or services.iii. To satisfy customersThis is withal one of the objectives of implementing business process reengineering. Customers will al ways be the main priority. BPR will ease the customer in umpteen ways. For instance, nowadays we no longer have to uprise in a queue line plot waiting to be served if we go to any strand as the number constitution had been introduced. This is one cause of the contribution of business process reengineering for customers satisfaction.Advantages of Business Process Reengineeringi. Lower costReengineering proves to be cost effective as the cost of operating after implementing BPR will decrease significantly. ii. Better use of existing caterThe existing staff expertise can be retained enhance through training them at the point of implementation of BPR. iii. Increase effectiveness and efficiencyAs the employees are alert of the processes that they involve in that has been reduced, it also reduces the time lag betwixt distinct process.slaying of BPRKey StepsSelection of strategical added value processesSimplify raw processin one case the engineering take place, organization should stop and kill the selection of idea from the supra step. The top management cannot live in limbo surrounded by yes or no and what are going to do with the idea. forge a team up & workflowAssign responsibilities germinate the process teamManager will act as a coaches for the workers as they do not placed ups but they will guide, direct, coordinate and empower the farm out to the workers. This involved the top management and subordinates in racetrack(a) together as a team . Critical achievement factors requisite to compete are identified and prioritized. Participative business gatherovers reject the top- down approach to reengineering in kick upstairs of a middle ground, where the motorbuss and workers come together to design business processes. The BPR team will be separate into both parts, a design team do up of senior managers, and an execution team comprise of slew who will actually do the workIntroduce the redesigned processThese initiatives seek to provide intelligence of the markets, competitors, and the position of the organization within the industry ImplementationBPR Success factorsRevising reward and motivation system of rulesNew reward and incentive scheme mustiness be revised as supporting BPR motility to encouraging people to endorse BPR much(prenominal) as introduce crude gambol titles in entrap to motivate the workers to the new system implementation. The workers are a resource for an organization to manage the oper ation effectively. The BPRwill prosperously be enforced if the workers are highly motivated to the changes made.Effective communicationIt is needed passim the changes process at all levels in rule to project patience and understanding among all employees. communicating breakdown between top management and the workers angle to happen due to the significant changes in the new system. By improving a break in way of communication could lead the company to successfully implemented BPR in the organization.EmpowermentThe organization should establish a culture which staff at all levels tactile sensation more responsible and accountable to their respective job scope. Empowerment will make the staff find oneself more appreciative of their work when the organization wad in them the authority which in other means acknowledge and appreciate their work towards the success of the organization. The staff also will be able to set their goals and reminder their own performance thus supp orting the implementation of BPR.Management of jeopardizeBPR involves foundation changes to several systems in organization. continual risk assessment is needed throughout the implementation process to ensure the BPR success. The calculation of risk will care the organization in closing qualification regarding BPR implementation.Aligning BPR dodging with corporate strategyAs corporate strategy de limitines objectives and guidance on how the organizational capabilities can be best employ to gain competitive position, BPR strategy guides the alteration of tasks into interconnected process. It also must attended by strategic planning in order to be successful in the long run.Kaizen followingIntroductionKaizen cost also has a Japanese heritage. It comes from the combination ofthe Japanese characters kai and zen which mean change and good, respectively. The word Kaizen translates to incessant progress or change for the better and aims to improve productivity by making gradual changes to the entire manufacturing process. Masaki Imai known as the Lean Guru and the father of Continuous Improvement (CI) Masaaki Imai has been a pioneer and leader in spreading the Kaizen philosophy all over the world. extrapolate Kaizen CostingTo understand Kaizen cost, one first necessitate to grasp threadbare costing methodology. The typical standard costing approach works by conniving a product first, and computing costs by victorious into account material, labour and overhead. The resulting figure is set as the product cost. The standard cost is set and revised on a yearly basis. Cost deviation analysis involves checking to see whether the projected cost estimates tally with the final figures. Manufacturing procedures are assumed to be static.In example, approach centres around recognizing that employees who work on a particular job are aware of how that particular task can be greatly improved. Employees are treated as valuable sources of executable solutions, an appr oach that differs greatly from the standard cost system that views employees as labourers with variable performance levels.GoalsIn order to properly implement Kaizen principals for process improvement, there are four goals towards reaching successful implementation of Kaizen 1. To ensure that actual production cost are little than the prior year cost. 2. To reduce the difference between profit estimates and target profits (every department in the company makes an effort to introduce operational changes on a daily basis). 3. Analyzing every part of the process and generating ideas on how they can be further improved. 4. Kaizen costing takes into account aspects such as time-saving strategies, employee efficiency and wastage reduction.Advantages condense on customersKaizen permits no middle ground its all you provide best products and customer satisfaction or not. All the activities should aim at providing customer with whatsoever he wants and should help the firm long term objecti ve of customers satisfaction at the alike(p) time building up good relationship. It is a responsibility of each and every soulfulness working in a Kaizen company to make sure that the product is up to the mark and it satisfies customers need. puzzle improvements continuouslyIn order to search for worthiness just does not end. We should work on the improvement implemented and see if we can make it sluice more effective. Acknowledge problems openlyEvery company has certain problems related to finance, competition, change in lead etc. Kaizen companies are no exception, but by fostering an appropriately supportive, constructive culture it becomes easier for any team to get its problem in the open. The whole organization works as a team to solve the problem. The problems are openly shared by the management with the employees which avoids rumours. It simply means FIGHT WITH YOUR PROBLEMS dupeT RUN AWAYFROM THEM. Promote opennessThere seems to be less functional ring fencing i.e. o nly the senior managers have private cabins. other the workplace is generally open and in many companies even the dress code and canteen for everyone is the same Create work teamsEach individual in a Kaizen company belongs to work team headed by a leader. recreateing in various overlap teams draws employees into corporate life and reinforces the mutual understanding. Cross- functional teamsKaizen states that no individual or team has all the necessitate skill and knowledge to complete a task. Cross-functional teams help in getting all the valuable educations from the view of all the related people. It calls for permit ideas to flow as wide as running on moon. DisadvantagesReluctant to change nigh employees do not like changes as it will lead them to a new style of working in addition much suggestion may lead to cloudiness and time wastage.By giving the opportunities to help in getting all the suggestion from the view of all the related people, they may be confuse to focalize what are the best way to follows and also required a lot of time in considering which ways is the beneficially to them.Real life example A Case Study of New Kaizen Activities at Tahara typeset (Toyota)This type of costing was used by Japanese automobile companies (Toyota). The assembly line at Tahara gear up was reorganized in 1995 clearly following the new concept realized first at Toyota Kyushu. heretofore it was the assembly incision itself that conceived this new assembly line, taking the initiative in product design and reconstructive memory of the assembly line. It began in 1991 where the revision in 1995 of the Hilux breaker (sports utility program) being assembled and the assembly of another sports utility (Land police cruiser Prado) from 1996 were planned.On the basis of discussions held in the Committee above mentioned, the director of this assembly plant suggested to his assembly sections manager (section chief) to prepare the revision of this sports utility by sea rching for an lofty assembly line. He then started to conceive it and organize engineers, try team staff, chief leaders and group leaders so that everyone would collaborate in order to realize an ideal assembly line about which he did not have any clear founding. Then he fixed the orientation toward the reconstruction of his assembly line as followsConstruct an assembly shop where the workers can work easily and executetheir operations rhythmically Organize a human centered Toyota exertion SystemForm a kaizen mind of everyone so that he/she willingly does kaizen.The section chief public opinion that if the assembly shop were organized in such a way, it would also contribute to make up production efficiency assuring quality and security, and then to reduce costs. There were many problems to solve, which necessitated the collaboration of the product manager of these models, Product engineering Design Sections, Production Engineering Division as well as those of Araco and Hino (Ar aco designs the personify of Land Cruiser Prado Hino, that of Hilux Surf whereas Toyota develops their chassis). In fact, the conception of new assembly line could not be developed without modifying vehicle structures and parts designs of these models.Comparison between BPR and Kaizen approach.Re-engineeringKaizenType of processWork best target organizational boundaries as complex interrelationship of variables. Work best with well defined boundaries.Degree of changeIncremental or radical and usually see an entire integrated process. Incremental or radical but usually only affect a limited sub process at a time. SpeedGenerally implemented in a big bang changeoverGenerates immediately observable and measurable changesAcceptanceHigh risk of things atavism back to the way they were soon after the consultants leave. Since the people that actually do the work are the ones making the changes acceptance are very high. Cost much involves expensive technologies, computers, and other sy stem. Most lean changes are inexpensive or even free.TechnologyReengineering project is often led by computer consultants.Most lean methods minimize or even eliminate reliance on technology with a gustatory perception toward visual methods and simplification.Similarities of Business Process Reengineering and Kaizen Approach i. They increase the effectiveness and efficiency of the way the organization operates. ii. These two approaches focus on lowering cost.iii. Customers satisfaction is eternally the goal for these two strategic management bill approaches.ConclusionThe Business Process Reengineering is the process of redesigning the business processes and the associated systems and organizational structures to achieve a dramatic change in the whole business process and performance. On the other hand, Kaizen is a small improvements and changes for a better for business process and performance. It must be accompanied by change of method. Business Process Reengineering is a project with a defined beginning and ending. Kaizen is a never ending process.