14-11-2012, 06:21 PM
Reengineering Work:Don't Automate, Obliterate
BPR Reengineering Work Don--t Automate Obliterate.pptx (Size: 237.92 KB / Downloads: 22)
Introduction
“It is time to stop paving the cow paths. Instead of embedding outdated processes in silicon and software, we should obliterate them and start over. We should use the power of modern information technology to radically redesign our business processes in order to achieve dramatic improvements in their performance.”
Ford - Accounts Payable Processes
Cost cutting
- Ford’s North American accounts payable department employed more than 500 people
- Rationalizing processes and installing new
computer systems could reduce the head count by 20%
Look at Mazda
- Only 5 people
New goal
- 80% reduction in head count (100 people)
MBL - Insurance Application
Decision situation
- The long, multi step process involved
- Applications go through 30 discrete steps, 5 departments, involved 19 people
- Turnaround time: 24hrs(best), 5~25days (typical)
- Actual work done: 17 mins
Goal
- Improve customer service
- Demand a 60% improvement in productivity
The essence of reengineering
Strive for dramatic levels of improvement
Break away from conventional wisdom and the constraints of organizational boundaries
Be broad and cross-functional
Use information technology not to automate an existing process but to enable a new one