Business Process Reengineering Essay

Fundamental rethinking and melodic theme design to achieve salient improvement in be, quality, service and delivery (Hammer & Champy, 1993 Manganelli & Klein, 1994). It means that job adjoin reenginee sm separate involves mevery an other(a)(prenominal) steps that vary the entire cable demonstrate. This is make to narrow the bell of production of a product or service, increasing the quality, and unanimous customers by offering an excellent service and delivery. BPR lot be done in four ways that atomic number 18i. agate line transformationBy using this way, the whole system is changed. This includes the business influence, business maintainment and business strategies.ii. design business influenceIn this way, only the business hacekprogrames atomic number 18 changed. Usu every last(predicate)y, the number processes solelyow be reduced. The non value added processes be eliminated.iii. Business process change worryThis is the process for managing human/employ ee side of change. It includes the steps interpreted to change the management squad or a project leader.iv. Redesign strategies and value added processesIt means that the organization changes the business strategies and creates or improves their value added characterizationivities.Objectives of Business Process Reengineering (BPR)There argon many objectives of business process reengineering. The primary(prenominal) objective is of course to emergence the effectiveness and efficiency of the whole business. Listed downstairs are the specific objectives of business processreengineering i. To save time and existTime can be saved once the non value added activities are removed from the process as there is fewer overwork process to be done. This volition lead to cost saving as the cost incurred during the production will to a fault decrease. As the cost decreases, the realise gross profit margin will be higher and it will lead to a great income for the bon ton.ii. To improve t he quality of workBy implementing business process reengineering, the atomisation of work can be reduced. This is contri justed by the fewer process composite in production. This will reduce the errors that occur in production as fewer machines or human are involved. The cognitive operation of the business process reengineering can be improved through feedback received by the users of the goods or services.iii. To satisfy customersThis is in addition one of the objectives of implementing business process reengineering. Customers will everlastingly be the main priority. BPR will ease the customer in many ways. For instance, nowadays we no longer have to stand in a queue line while waiting to be served if we go to any bank as the number clay had been offerd. This is one example of the constituent of business process reengineering for customers satisfaction.Advantages of Business Process Reengineeringi. Lower costReengineering proves to be cost effective as the cost of operatin g after implementing BPR will decrease significantly. ii. Better use of existing staveThe existing cater expertise can be retained enhance through fosterage them at the point of instruction execution of BPR. iii. Increase effectiveness and efficiencyAs the employees are aware of the processes that they involve in that has been reduced, it also reduces the time drop off between different process.Implementation of BPRKey StepsSelection of strategic added value processesSimplify new processOnce the engineering apportion place, organization should s excrete and execute the selection of idea from the to a higher place step. The top management can non live in limbo between yes or no and what are going to do with the idea. trick out a team & work flowAssign responsibilitiesTrain the process teamManager will act as a coaches for the workers as they do not effects but they will guide, direct, coordinate and empower the job to the workers. This involved the top management and subordina tes in working together as a team. Critical success factors inf exclusivelyible to compete are identified and prioritized. Participative business makeovers reject the top- down go up to reengineering in favor of a middle base, where the buss and workers come together to redesign business processes. The BPR team will be split into two parts, a design team made up of senior managers, and an execution team composed of people who will actu whollyy do the work reveal the redesigned processThese initiatives seek to provide understanding of the markets, competitors, and the position of the organization inwardly the industry ImplementationBPR Success factorsRevising reward and motivation systemNew reward and incentive scheme must be rewrite as supporting BPR effort to encouraging people to endorse BPR much(prenominal) as introduce new job titles in order of battle to impress the workers to the new system implementation. The workers are a resource for an organization to manage the operation effectively. The BPRwill successfully be utilize if the workers are exceedingly motivated to the changes made.Effective communicationIt is needed throughout the changes process at all levels in order to ensure patience and understanding among all employees. Communication breakdown between top management and the workers tend to give due to the significant changes in the new system. By improving a offend 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 feel more than responsible and accountable to their some(prenominal)(prenominal) job scope. Empowerment will make the staff feel more appreciative of their work when the organization give them the authority which in other means recognized and appreciate their work towards the success of the organization. The staff also will be able to set their goals and monitor their own performance thus supp orting the implementation of BPR.Management of riskBPR involves rootage changes to several systems in organization. Continuous risk assessment is needed throughout the implementation process to ensure the BPR success. The calculation of risk will help the organization in decision make regarding BPR implementation.Aligning BPR strategy with corporate strategyAs corporate strategy determines objectives and guidance on how the organizational capabilities can be exceed utilised to gain competitive position, BPR strategy guides the renewal of tasks into integrated process. It also must accompanied by strategic provision in order to be successful in the long run.Kaizen costIntroductionKaizen costing 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 continuous improvement or change for the better and aims to improve productivity by making tardy changes to the enti re manufacturing process. Masaki Imai known as the Lean Guru and the father of Continuous melioration (CI) Masaaki Imai has been a pioneer and leader in spreading the Kaizen philosophy all over the world.Understand Kaizen CostingTo understand Kaizen costing, one first needs to grasp banner costing methodology. The typical standard costing show up works by designing a product first, and computing cost by taking 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, betterment 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 viable solutions, an approach that differs greatly from the s tandard 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 gain successful implementation of Kaizen 1. To ensure that actual production cost are less 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.AdvantagesFocus on customersKaizen permits no middle ground its either you provide better(p)(p) products and customer satisfaction or not. all the activities should aim at providing customer with whatever he wants and should help the unwavering long term objective of customers satisfaction at the same time building up good relationship. It is a tariff of each and every person working in a Kaizen company to make sure that the product is up to the mark and it satisfies customers need. Make improvements unceasinglyIn order to search for excellence just does not end. We should work on the improvement implemented and see if we can make it notwithstanding more effective. Acknowledge problems openlyEvery company has certain problems link up to finance, competition, change in demand 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 DONT incline AWAYFROM THEM. Promote opennessThere seems to be less operable ring fencing i.e. only the senior managers have private cab ins. Otherwise the oeuvre is generally open and in many companies even the dress cipher and canteen for everyone is the same Create work teamsEach individual in a Kaizen company belongs to work team headed by a leader. working(a) in various overlapping teams draws employees into corporate life and reinforces the mutual understanding. Cross- functional teamsKaizen states that no individual or team has all the required cleverness and knowledge to complete a task. Cross-functional teams help in getting all the valuable informations from the view of all the related people. It calls for permit ideas to flow as wide as running on moon. Disadvantages indisposed(p) to changeMost employees do not like changes as it will lead them to a new style of workingToo much suggestion may lead to confusion and time wastage.By great(p) the opportunities to help in getting all the suggestion from the view of all the related people, they may be confuse to focus what are the best way to follows and al so required a lot of time in considering which ways is the beneficially to them.Real life example A effect Study of New Kaizen Activities at Tahara imbed (Toyota)This type of costing was apply by Japanese automobile companies (Toyota). The convention line at Tahara plant was reorganized in 1995 clearly following the new concept realize first at Toyota Kyushu. However it was the aggregation section itself that conceived this new company line, taking the initiative in product design and reconstruction of the assembly line. It began in 1991 where the revision in 1995 of the Hilux Surf (sports utility) being assembled and the assembly of another(prenominal) sports utility (Land 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 foreland) to prepare the revision of this sports utility by searching for an ideal assembly line. He and so star ted 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 introduction. Then he fixed the orientation course toward the reconstruction of his assembly line as followsConstruct an assembly sponsor where the workers can work easily and executetheir operations rhythmically Organize a human centered Toyota harvestingion SystemForm a kaizen mind of everyone so that he/she willingly does kaizen.The section chief image that if the assembly shop were organized in such a way, it would also contribute to increase 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 surface as those of Araco and Hino (Araco designs the body of Land Cru iser 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 fomite structures and parts designs of these models.Comparison between BPR and Kaizen approach.Re-engineeringKaizenType of processWork best cross organizational boundaries as complex interrelationship of variables. Work best with well defined boundaries.Degree of changeIncremental or radical and usually affect 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 noticeable and measurable changesAcceptanceHigh risk of things reverting back to the way they were curtly after the consultants leave. Since the people that actually do the work are the ones making the changes acceptance are very high. CostOften involves expensive technologies, computers, and other system. Most propensity changes are inexpensive or even free. applied scienceReengineering project is often led by computer consultants.Most lean methods minimize or even eliminate reliance on technology with a preference 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 always the goal for these two strategic management accounting 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 line of descen t and ending. Kaizen is a never ending process.