Business process Re-engineeringPrepared by: Kalpesh Patel (221121)

Srinivas Patil (221125)

Avradip Paul (221127)

BUSINESS PROCESS

Business processes are simply a set of activities that transform a set of inputs into a set of outputs (goods or

services) for another person or process using people and tools. We all do them, and at one time or another play

the role of customer or supplier

Why Re-engineering• Businesses to stay competitive in today's

marketplace• Customers are demanding for better and better

products and services• Organisation often inwardly focused• Vertical chains of command• Lack of trust • Limited training

What is Business process Re-engineering

Fundamental re-thinking and radical re-design of business processes to achieve, dramatic improvement in critical, contemporary measures of performance, such as cost, quality, service and speed………………Michael Hammer

Objectives

Lower the cost

Increase quality &

Increase the quantity of service

Key areasEmphasize customer satisfaction Use performance improvement programs and problem

solving techniquesFocus on business processesUse teams and teamwork Bring about changes in values and beliefs Work to drive decision making down to lower levels in

the organization Require senior level commitment and change

management for success

CharacteristicsProcess basedFundamental rethinkRadical improvementIntegrated changePeople centredMindset change

Process-basedReplace traditional management

philosophyLook at business from outside inConcentrate on end-to-end management

of processes

Fundamental RethinkA zero-based approach to the redesign of key

processesThree key issues

The extent current structure detracts from creation and delivery of value

The retarding effect that structure can have The unresolved cross-functional conflicts and

tensions

Radical improvementAvoid scaling down ambitionsEmphasis on achieving dramatic and

sustainable leaps in performanceRe-engineering not appropriate if

alternative approach will achieve same gains

Integrated ChangeMajor change adds pressurePersonal ambition and competing

initiatives - divert attention and resourcesThe approach should deliver a balanced

and holistic solutionPeople and training put in place

People CentredUnderstanding of business goalsKnowledge of processesAbility to make decisions and take risks

on behalf of organisationCoaching of staff

Mindset ChangeDiscard prior conditioningBuild and communicate a shared

understanding of the organisation’s futureCreate an environment and infrastructure

that promotes learning and imagination to guide decisions

A five-step approach to Re-engineeringDevelop the business vision and process objectives - Cost reduction

- Time reduction

- Quality improvementIdentify the business processes to be redesignedUnderstand and measure the existing processes - avoid the repeating of old mistakes

- provide a baseline for future improvements

• Design and build a prototype of the new

process

• Identify IT levers

Process

Role of Information technologyShared 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

Critics of the BPR approachlabel BPR was used for major workforce reductions

Lack of management support for the initiative and thus poor acceptance in the organization.

Exaggerated expectations regarding the potential benefits from a BPR initiative and consequently failure to achieve the expected results.

Cont……• Implementation of generic so-called best-

practice processes that do not fit specific company needs.

• Underestimation of the resistance to change within the organization.

• Over trust in technology solutions. • Performing BPR as a one-off project with

limited strategy alignment and long-term perspective.

• Poor project management.

SuccessProcter and GambleGeneral MotorsAmerican AirlinesSouthwest AirlinesDellFord

Case Study: Re-engineering Process successfully implemented at a hospital in Singapore for improving the services provided to the customers (Patient) and increase the efficiency without sacrificing the quality

Patient type and Utilization

Location Capacity Total Entries Average minutes per entry Utilization (%)

Entrance 1 45.65 80.69 33.26

Pre Op 20 63.65 3012.29 92.43 (Bottle neck)

Recovery 16 50.85 31.49 0.99

Exit 1 50.85 0.00 0.00

OT (CLR) 1 5.20 199.75 10.24

OT (CTS) 1 2.75 286.62 8.18

OT (ENT) 1 4.90 286.56 14.26

OT (GES) 1 18.45 279.87 69.09

OT (GYN) 1 6.10 194.34 11.58

OT (Others) 1 6.60 1478.34 88.87

OT (OTO) 1 6.10 1790.40 100.00

OT (PLS) 1 2.25 350.80 8.56

No 1 to 8- Surgeons

No 9- Anaesthetist%

1.551.10

2.23

4.11

1.29

6.26

12.37

0.90

18.25

Simulation ModelsModel 1- Shift ModelModel 2- Shift Model with Increased StaffModel 3- Declassified Operating Theatres Model

The three suggested models for Re-engineering were similarly run for 168 hours with a warm-up period of 48 hours, with 20 replications

Location

Utilization (%)

Original Model Model 1 Model 2 Model 3

Entrance 33.26 59.16 55.7623.00

Pre Op 92.43 96.40 96.0669.36

Recovery 0.99 1.05 0.971.90

Exit 0.00 0.00 0.000.00

OT(CLR)/OT1 10.24 9.23 10.2992.44

OT(CTS)/OT2 8.18 10.34 9.1891.13

OT(ENT)/OT3 14.26 13.05 15.8592.49

OT(GES)/OT4 69.09 78.37 69.2193.94

OT(GYN)/OT5 11.58 10.46 9.4292.77

OT(Others)/OT6 88.87 91.04 83.3794.27

OT(OTO)/OT7 100.00 100.00 100.0094.15

OT(PLS)/OT8 8.56 7.34 7.4594.12

Original

Model

Model 1 Model 2 Model 3

Efficiency

(%)

45.60 45.30 44.50 64.80

Source BUSINESS PROCESS REENGINEERING AT THE HOSPITALS: A CASE STUDY AT SINGAPORE HOSPITAL Arun Kumar and Linet Ozdamar School of Mechanical & Production Engineering Nanyang Technological University 50 Nanyang Avenue, SINGAPORE-639798