|




 
Automation of processes
Total quality management
Modifying information systems
Restructuring of organizations.
 
Take zero based approach
Focus on the customers
Look for new approach, reject the old.
Set up a new benchmark
Change the mind-set
Focus on time aspect
 ã



|t means: High quality, excellent service,
fastest delivery and fair price.
- Reject the past, start a fresh.
- Think of radical changes.
- Formulate new rules of business.
- Focus those activities which adds value to the
customers.
- Management of processes.
 ||  


  


ß Orders ß Order processing cycle

ß Cost ß Servicing cycle
ß |nventory ß Lead time[procurement
cycle]
ß A/C payable ß Payment cycle
ß Delivery cycle
ß Pending orders [Qty]
ß Response cycle
ß Pending queries
ß |ndex on customers
ß Customer complaints
satisfaction
ß Productivity
ß Performance
 | 
 || 





ß |nflexible ß Unresponsive
ß Bureaucratic ß High overheads
ß Compartmentalized ß Delays
ß Absence of customer ß Poor work culture
focus.
ß Large gap between
value desired and value
offered
   

Old approach ʹ Cost plus
Modern approach ʹ Globally competitive
͞The cost plus approach to price is valid in
protected and sheltered markets. |n global
competition, you have to match the price of
competition or the price expectation of the
customer. You have to be profitable while you
are technologically the best and commercially
the lowest͛͛.

!|! 
ã"
|
ß Product development (improvement)
ß Methods improvements
ß Management techniques- max/min
ß Value analysis/engineering
ß Product variety by segments (mass
customization)
ß World class manufacturing
 Contd͙
͞The integration of communication and
comforter technologies coupled with an
empowered knowledgeable work force will
change today͛s business organization from
event processing to real response processing
virtual enterprise͟.
 STRATEG|ES FOR FUTURE
ß Strategic alliance.
ß Application of ͚|T͛ in all functions.
ß Focus on processes in organization.
ß More investment on human resources.
ß Empowerment to people.
ß Undergoing product development at faster rate.
ß Subcontracting service functions.
ß Build high propensity to change
 Contd͙
ß More scientific assessment of environment
opportunities and threats.
ß More investment in research activities
[Forecasting demand, technology, consumer
behaviour, lifestyle, socioeconomic & political
trends].
 TENETS OF RE-ENG|NEER|NG
ß The customer alone is responsible for defining
what constitutes product/service value.
ß Significant improvements in cycle time,
process costs and/or customer satisfaction are
key indices of process re-engg. projects.
ß Senior management must be involved
throughout the process re-engg. Project.
ß Communication and trust are must for ͚PR͛
project
SH|FT |N MANAGEMENT PH|LOSOPHY
ß Reactive ʹ Proactive
ß Delegation of authority ʹ Empowerment
ß Protective ʹ Competitive
ß Profit oriented ʹ Customer satisfaction
ß Control relationship ʹ Trust relationship
Business process ʹ a set of activities performed
across the Orgn., creating an output of a value
to the customer. |t includes following steps:
 Contd͙
ß Receive input, measure, analyses, documents,
perform, process, record, access, produce,
communicate, achieve the business results.
PROCESS CYCLE T|ME CONS|STS OF THREE FEATURES
1.RVA[Real value added]- refers to activities which are
essential to the process in order to meet the customers͛
expectations.
2. BVA[Business value added]- refers to activities essential
to run the business that add costs of process but don͛t
add value for customers.
3. NVA[Non value added]- refers to activities which do not
add value from customer͛s or business point of view.
 Module 1

Process View of Business

By
Dr. Neeraj Anand
Associate Professor
CMES, UPES, Dehradun
 BUS|NESS PROCESS
Definition:
A business process is a group of logically related
tasks carried out using a firm͛s resources to provide
customer-oriented results in support of the
organization͛s objectives.
They are generally defined in terms of beginning and
end-points, interfaces and organizational units
involved.

Characteristics of Business Process:

1. Customers (|nternal/External)
2. Cross-organizational boundaries
 Dimensions of Business Process
ß Entities: Generally inter-organizational entities
(ED|), inter-functional or inter-personal.
ß Objects: Physical (tangible ʹ Prototype,
Building or a scientific testing equipment) or
informational (LMS, Software)
ß Activities: Managerial (layout design/capacity
planning, selection of technology) or
operational (placing order with supplier, job
scheduling , complaint handling etc.)
 Types of Processes
ùnowledge-based Processes:
Based on knowledge and creativity of persons,
BPR is not practiced much in such processes.
ß Product development (Plazma TV, Nano car, Solar
Heater etc.)
ß Research (Space research by |SRO, NASA. Wood
sciences and fossils by FR|. Biodiesel and bio-
lubes by ||P, weather forecasting, disaster mgmt.
by ||T Roorkee, energy related research by TER|,)
ß Advertisement (Lintas, BBDO, O&M Pink slip advt.
in the TO| etc.)
ß Consulting (Oil & gas projects by Delloitte,
Satyam, TCS, CR|S|L, E&Y, Accenture, |SPe etc.)
 Contd͙
Operational Processes:
BPR is mostly applied for such processes.
Examples:
ß Customer Orders
ß Customer Care/ Customer Service
ß Customer Feedback
ß Manufacturing
ß Assembling
ß Procurement
ß Execution Processes ʹ Procurement of goods, Production
and Delivery of goods and After Sales Services are core to
BPR.
ß Support Processes:
ß R&D, HR, Training etc.
 A Glance at Business Processes
ß Business planning
ß Budget preparation
ß Performance appraisal
ß Recruitment & selection of employees
ß Purchasing goods/outsourcing services
ß Receiving goods/services
ß Order processing
ß Claims processing
ß Proposal Development
ß Tendering
ß Auditing (|nternal /external - Accounts/|SO audit)
 Process framework establishes the foundation for a complete process by identifying
small number of framework activities that are applicable to all projects, regardless of
their size or complexity. |n addition, the process framework encompasses a set of
#$%%
activities that are applicable across the entire process.

The following generic process framework is applicable to the vast majority of projects.
´
  :- This framework activity involves heavy communication and
collaboration with the customer (and other stakeholders) and encompasses
requirements gathering and other related activities.

 - This activity establishes a plan for the engineering work that follows. |t
describes the technical tasks to be conducted, the risks that are likely, the resources
that will be required, the work products to be produced, and a work schedule.

 
   - This activity encompasses the creation of models that allow the
developer and the customer to better understand requirements and the design that
will achieve those requirements.

  :- This activity combines code generation (either manual or automated)
in case of software development project and the testing that is required to uncover
errors (in the code in case of software).
m  %&#
'- The project or software (as a complete entity or a partially completed
increment) is delivered to the customer who evaluates the delivered project/product
and provides feedback based on the evaluation.

These five generic framework activities can be used during the development of small
programs, the creation of large Web applications, and for the engineering of large
complex computer-based systems. The details of the process will be quite different in
each case, but the framework activities remain the same.
The Engineering |nstitute (SE|) has developed a comprehensive process meta-model
that is predicated on a set of system and software engineering capabilities that should
be present as organizations reach different levels of process capability and maturity.
To achieve these capabilities, the SE| contends that an organization should develop a
process model that conforms to The Capability Maturity Model |ntegration (CMM|)
guideline (CMM02).

The CMM| represents a process meta-model in two different ways: (1) as a continuous
model and (2) as a staged model. The continuous CMM| meta-model describes a
process in two dimensions. Each process area (e.g., project planning or requirements
management) is formally assessed against specific goals and practices and is rated
according to the following capability levels:-
=     . The process area (e.g., requirements management) is either not
performed or does not achieve all goals and objectives defined by the CMM| for level 1
capability.
= ´   All of the specific goals of the process area (as defined by the
CMM|) have been satisfied. Work tasks required to produce defined work products
are being conducted.
=
  All level 1 criteria have been satisfied. |n addition, all work
associated with the process area conforms to an organizationally defined policy; all
people doing the work have access to adequate resources to get the job done;
stakeholders are actively involved in the process area as required; all work tasks and
work products are ͞monitored͟ controlled, and reviewed; and are evaluated for
adherence to the process description.
=   All level 2 criteria have been achieved. |n addition, the process is
͞tailored from the organisation͛s set of standard processes according to the
organisation͛s tailoring guidelines, and contributes work products, measures, and
other process-improvement information tos the organisational process assets͟.
=       . All level 3 criteria have been
achieved. |n addition, the process area is controlled and
improved using measurement and quantitative assessment.
͞Quantitative objectives for quality and process͟ performance are
established and used as criteria in managing the process.

=  ! " All capability level 4 criteria have been

achieved. |n addition, the process area is adapted and optimized
using quantitative (statistical) means to meet changing customer
needs and to continually improve and efficacy of the process area
under consideration.
 (%  


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 Process Models
ß 
(%
ß  ã

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ß  | #

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- The RAD Model
ß (%

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- Prototyping
- The Spiral Model
- The Concurrent Development Model
ß  
%) %
- Component Based Development Model
 
(%
ß This model prescribes a set of process
elements- framework activities, engineering
actions, tasks, work products, quality
assurance and change control mechanisms for
each project.
ß |t prescribes a work flow in which the process
elements are interrelated to one another.
  ã

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ß Also known as %

%,&%
ß |t is suitable when the requirements of the
problem are reasonably well understood and
work flows from communication through
deployment in a linear fashion.
ß |t may occur in a limited number of new
development efforts.
ß |t begins with customer specifications of
requirements and progresses through planning,
ß Modeling, construction, deployment, culminating
in an on going support of the complete process.
ß Oldest model for software engineering.
 Steps in Waterfall Model
´ ## 

 ʹ Project |nitiation,
Requirements Gathering
0 %
 *ʹ Estimating, Scheduling and
Tracking
1 % *- Analysis and Design
2  

 ʹ Coding and Testing
m  %&#
ʹ Delivery, Support and
Feedback
 Criticism of Waterfall Model
ß Customers requirements are not as explicit as
they should be. Thus this model faces difficulty to
accommodate uncertainty at the beginning stage.
ß Practically projects rarely follow sequential flow
of activities. Changes in the process can cause
confusion to the team members.
ß A working version of the program will not be
available until late stage in the process/project.
Therefore, customer may loose his patience.
  | #

%%
ß |t combines elements of the waterfall model
applied in an iterative fashion.
ß |t applies linear sequences in a staggered fashion
w.r.t. calander time.
ß Each linear sequence produces deliverable
increments of the process.
ß The first increment is generally a core product.
ß Other increments deliver supplementary/
additional features.
ß The process is repeated following the delivery of
each increment, until the complete product is
produced.
 Contd͙
ß |t focuses on the delivery of an operational product with
each increment.
ß |t is useful when staff is inadequate for a complete
implementation of business process.
3
# %'
1.Word processing software delivering file management,
editing and document production in the first increment and
more sophisticated editing in 2nd increment and spelling
and grammar checking in 3rd increment.
2.Delivering the laptops to the clients first and then
delivering blue tooth, webcam and other features.
3.Maruti Dealer may deliver car as 1st increment,
accessories as 2nd and insurance, registration and number
plate etc. as 3rd increment.
 The RAD Model
ß Rapid Application Development (RAD) is an
incremental process model that emphasizes a
short development cycle.
ß |t is high speed adaptation of waterfall model
in which speed is achieved using component
based construction approach.
ß |t uses the generic framework activities.
ß Each major function can be addressed by a
separate RAD team and then integrated to
form a whole process.
 Limitations
ß RAD requires sufficient manpower to create the
required number of RAD teams
ß Customers and Teams both must be committed
otherwise the model may fail.
ß |f a system can͛t be properly modularized, then
building components necessary for RAD would be
problematic.
ß |n case of higher technical risks, RAD may not
work.
ß |n case high performance is the objective and
that is to be achieved through tuning the
interfaces to system components then RAD may
not be appropriate.
 Evolutionary Process Models
ß 

&  *'
|t can be used as a standalone process model.
|t assists the engineer and customer to better
understand what is to be built when
requirements are fuzzy. |t comprises of:
1. Communication ʹ Engineer and Customer
meetings and identification of requirements.
2. Quick Plan ʹ design, human interface layout
and output display formats.
 Contd͙
3. Modeling: Quick design
4. Construction of Prototype
5. Deployment ʹ Delivery and feedback
Prototype serves the purpose of identifying
requirements of the process/project.
User gets a feel of actual system/application.
The key is to define the rules of the game at
the beginning.
 The Spiral Model
ß Originally proposed By Boehm.
ß |t is a risk-driven process model generator that is
used to guide multi-stakeholders concurrent
engineering of intensive systems.
ß |t has two distinguishing features:
- Cyclic approach ʹ for incrementally growing a
system͛s degree of definition and implementation
while decreasing its degree of risk.
- A set of anchor milestones for ensuring
stakeholder commitment to feasible and mutually
satisfactory solutions.
 Contd͙
ß |t is a realistic approach to the development of
large-scale project/software.
ß |t uses prototyping as a risk reduction
mechanism at any stage of evolution.
ß |t maintains the systematic stepwise approach
suggested by Classic life cycle but also
incorporates an iterative framework that
reflects the real situations.
ß |t directly considers tech. risks at all the
stages.
 Component Based Development
Model

 '
Available component based products are
researched and evaluated for the concerned
problem/process.
Component integration issues are considered.
An architecture/DFD is designed to
accommodate the components.
Comprehensive testing to ensure functionality
 Requirement Engineering
ß |t encompasses the set of tasks that lead to an
understanding of what the business impact of the
process will be, what the customer wants
specifically and how end-users will make use of
the process.
ß ã/ 
' The intent of the requirements
engineering process is to provide all parties with
a written understanding of the problem. This can
be achieved through a number of work products
ʹ user scenarios, functions and features list,
analysis models or a specification.
 Functions of Requirement Engg.
1. |NCEPT|ON
2. EL|C|TAT|ON
3. ELABORAT|ON
4. NEGOT|AT|ON
5. SPEC|F|CAT|ON
6. VAL|DAT|ON
7. MANAGEMENT
 1. |NCEPT|ON

3
4 ,.
 '
ß Who is behind the request for this process?
ß Who will use the solution?
ß What would be the economic benefit of this
process/solution?
ß |s there another source of this process?
ß What problems this process will address?
ß Can | know the business environment in which
this process will be used?
 Contd͙
ß Are my questions relevant to the problem you
have?
ß Am | asking these questions to the right
person?
ß Are your answers ͞official͟?
ß What are the constraints which can affect the
implementation of this process?
ß Should | be asking you anything else?

ü"5 
/
.
 
,%,,(# 
6 5  

/
.
 
,%
,(

   ($
3
# %' Designing Course Curriculum
ß Who are the prospective students?
ß Who will be the employers?
ß Who are going to deliver the course?
ß What would be the duration of the course or
How many hours are required to deliver the
course?
ß Who will design the course?
ß What would be sources of collecting data?
ß Whether course will be offered on regular basis
or DL basis?
ß Who is the regulating body for the approval?
 2. EL|C|TAT|ON
ß Problem of Scope: Boundary of the process
should be defined well.
ß Problems of understanding: Customers or users
are not sure of what they need always.
ß Specify requirements that conflict the needs of
other customers/users to avoid ambiguity.
ß Problems of Volatility: Requirements are dynamic
in nature, they change with time.
3
# %' Designing Course Curriculum ʹ The
contents of the course, relevance of the topics
etc.
 3. ELABORAT|ON

%&% *:
ß Object oriented analysis
ß Scenario based elements ʹ use-cases text,
activity diagram
ß Flow ʹoriented elements ʹ DFD
ß Class based elements- Analysis packages, class
diagrams and collaboration diagrams
ß Behavioral elements ʹ State diagrams and
sequence diagrams
 4. NEGOT|AT|ON
ß Assessing Overall Project Risk:
- Performance Risk
- Cost Risk
- Support Risk
- Schedule Risk
Questions:
|s the project scope stable?
Are process requirements stable?
 Contd͙
ß Have customers been involved fully in the
definition of requirements?
ß Does the process team have required mix of
skills?
ß |s the number of persons adequate to do the
job?
ß Do end-users have realistic expectations?
ß |s the top management committed for process
re-engineering?
 5. SPEC|F|CAT|ON
ß Specification can be a written document, a set
of graphical models, a formal mathematical
model, a collection of usage scenarios, a
prototype or any combination of these.
ß Standard template should be developed and
used for the specification.
ß The specification is the final work product
produced by the requirements engineer. |t
serves as a foundation for engineering
activities.
 6. VAL|DAT|ON
ß Requirement validation examines the
specifications to ensure that all requirements
have been stated unambiguously. Any errors,
omissions and inconsistencies are detected in
the specifications.
ß The primary requirements of validation
mechanism is the formal technical review.
 7. MANAGEMENT
ß |t is a set of activities that help the team
identify, control, and track requirements and
changes to requirements at any time as the
process proceeds.
ß Features traceability table
ß Source traceability table
ß Dependency traceability table
ß |nterface traceability table
 Design Process & Design Quality
ß Design is an iterative process through which
requirements are translated into a ͞Blueprint͟.
ß Design is represented at a high level of
abstraction ʹ a level that can be directly traced to
the specific system objective and more detailed
data, functional and behavioural requirements.
ß Throughout the design process, the quality of the
evolving design is assessed with a series of formal
technical reviews.
Characteristics for a Good Design
ß |t must implement all the implicit requirements
contained in the analysis model, and must
accommodate all of the implicit requirements
desired by the customers.
ß |t must be a readable, understandable guide for
those who generate code and those who test and
later support the process.
ß |t must provide a complete picture of the process,
addressing the data, functional, and behavioural
domains from an implementation perspective.
üã
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 Design Quality Guidelines
ß |t should exhibit an architecture that
a) recognizable or standard architectural
styles/patterns.
b) |s composed of components that exhibit good
design characteristics.
c) Can be implemented in an evolutionary
fashion, facilitating proper testing and
implementation.
 Contd͙
ß |t should be modular ʹ logically partitioned into
elements or subsystems.
ß |t should lead to logical DFD.
ß |t should contain distinct representation of data,
architecture, interfaces and components.
ß A design should lead to interfaces that reduce the
complexity of connections between components
and with the external environment.
ß |t should be derived using a repeatable method
driven by information collected for requirement.
ß |t should be communicate effectively its meaning
and application.
ü+
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 *
 Quality Attributes
ß  

%
& 4 assessed by evaluating feature set
and capability and security of the process.
ß
%
$%
& 4 measuring the accuracy of output
results or MTBF / MTTF (Mean Time Between
Failure)
ß ,#
  is measured by speed, response
time, resource consumption, throughput and
efficiency etc.
ß 
$%
& 4 assessed by human factors,
consistency, documentation and aesthetics.
ß  

$%
& ʹ Extensibility, adaptability and
maintainability.
 Design Concepts
ß Abstraction
ß Architecture
ß Pattern/ Style
ß Modularity
ß |nformation Hiding
ß Functional |ndependence
ß Refinement
ß Refactoring
ß Design Classes
ü|
( 
,
% |(, ´
5
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5/
 #

 Caselet: |BM Credit
$%# - Entire process consumed six days on an
average; customers lost in the intervening period.
ß New organization - replaced specialists with
generalists.
ʹ One person called a deal structurer deals with
one straightforward order.
ß Computer system developed to support the deal
structurer.
ß Slashed turnaround time from six days to 4
hours.
 Module 2

'
%*

 .
By
Dr. Neeraj Anand
Associate Professor, CMES, UPES
 H|STORY OF BPR
ß Concept of Reengineering emerged: 19th Century
ß 1880- F. W. Taylor suggested Reengineering methods
to managers for optimum productivity. Emphasized
on Specialization
ß Early 1900s ʹ Henri Fayol stated the concept of
Reengineering.
ß Post Worldwar || ʹ TQM emerged in Japan.
ß Demings and J.M.Juran focused on TQM to imrove
manufacturing operations.
 Contd͙
ß 1990: Michael Hammer and James Champy came out
with their work ͞Reengineering the Corporation͟
which consequently led to the term BPR.
ß Thomas Davenport ʹ introduced his engineering
model to overcome flaws in classical theory of BPR.
 DEF|N|T|ONS
ß According to Michael Hammer, ͞Serving the customer is
not a mechanical act but one that provides an
opportunity for fulfillment and meaning͟.
ß BPR is the critical analysis and radical redesign of existing
business processes with in and between organizations, to
achieve breakthrough improvements in performance.
ß BPR is a methodology for significant improvement to a
business process, or for radical change in or complete
replacement of such a process.
ß BPR is used as a vehicle for re-aligning strategy,
operations and systems to deliver significantly increased
financial results and customer satisfaction. |t helps to
find ways TO DO MORE W|TH LESS and provide a better
product or service in the minimum amount of time, with
speed, quality and cost as key drivers.
ß


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/
5
&,#





 

$%

arrangements and practices of work.
ß  
#

%
* '* 

 5
 %&
 


 *
$
5
& methods. Changing the way
work is done.
ß '
* 

(
, 

%%&

$
/5 'departmentalism. Departments are
structures which after all -merely solutions to past
organizational problems. They are not fixed for ever.
ß 
#

' 
-
#
/ #

%#
*
%
# (#

Find breakthroughs in performance in terms of cost,
quality, service, and time-compression
 | 
|

 
Automation of processes
Total quality management
Modifying information systems
Restructuring of organizations.
 
Take zero based approach
Focus on the customers
Look for new approach, reject the old.
Set up a new benchmark
Change the mind-set
Focus on time aspect
 ã"|

WHY WE DO WHAT WE DO AT ALL?
WHY WE DO |T WHAT WE DO TH|S WAY?
|t means: High quality, excellent service,
fastest delivery and fair price.
- Reject the past, start a fresh.
- Think of radical changes.
- Formulate new rules of business.
- Focus those activities which adds value to the
customers.
- Management of processes.
 TENETS OF RE-ENG|NEER|NG
ß The customer alone is responsible for defining
what constitutes product/service value.
ß Significant improvements in cycle time,
process costs and/or customer satisfaction are
key indices of process re-engg. projects.
ß Senior management must be involved
throughout the process re-engg. Project.
ß Communication and trust are must for ͚PR͛
project
SH|FT |N MANAGEMENT PH|LOSOPHY
ß Reactive ʹ Proactive
ß Delegation of authority ʹ Empowerment
ß Protective ʹ Competitive
ß Profit oriented ʹ Customer satisfaction
ß Control relationship ʹ Trust relationship
Business process ʹ a set of activities performed
across the Orgn., creating an output of a value
to the customer. |t includes following steps:
 Contd͙
ß Receive input, measure, analyses, documents,
perform, process, record, access, produce,
communicate, achieve the business results.
PROCESS CYCLE T|ME CONS|STS OF THREE FEATURES
1.RVA[Real value added]- refers to activities which are
essential to the process in order to meet the customers͛
expectations.
2. BVA[Business value added]- refers to activities essential
to run the business that add costs of process but don͛t
add value for customers.
3. NVA[Non value added]- refers to activities which do not
add value from customer͛s or business point of view.
 ||  


  


ß Orders ß Order processing cycle

ß Cost ß Servicing cycle
ß |nventory ß Lead time[procurement
cycle]
ß A/C payable ß Payment cycle
ß Delivery cycle
ß Pending orders [Qty]
ß Response cycle
ß Pending queries
ß |ndex on customers
ß Customer complaints
satisfaction
ß Productivity
ß Performance
 Characteristics of Processes
ß Has external customers
ß Has quantifiable measures
ß Frequently cuts across functional
organisational boundaries
Examples:
ß Supplying a service to a customer
ß Developing a new product
ß Launch of a new product
ß Ordering goods from a supplier
 | 
 || 





ß |nflexible ß Unresponsive
ß Bureaucratic ß High overheads
ß Compartmentalized ß Delays
ß Absence of customer ß Poor work culture
focus.
ß Large gap between
value desired and value
offered
 STRATEG|ES FOR FUTURE
ß Strategic alliance.
ß Application of ͚|T͛ in all functions.
ß Focus on processes in organization.
ß More investment on human resources.
ß Empowerment to people.
ß Undergoing product development at faster
rate.
ß Subcontracting service functions.
ß Build high propensity to change
 Contd͙
ß More scientific assessment of environment
opportunities and threats.
ß Outsourcing services.
ß More investment in research activities
[Forecasting demand, technology, consumer
behaviour, lifestyle, socioeconomic & political
trends]. Ex. Ranbaxy, Cadila, |OCL, Nestle,
Shell etc.
Gearing Up For The BPR

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 Components Of BPR Life Cycle
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Sequence Diagram
 Vision Statement
ß Creating the vision requires ͞artistry͟
ß Serves as a ͞flag to rally the troops͟
ß Reminds the organization of what they are
trying to change
ß Provides a yardstick for measuring the
progress
ß Prevents the organization from becoming
distracted
 Vision Statement
ß |t does not need to be long, but it must be
ß Powerful
ß A lot of visions are vague and simplistic
ʹ We want to be number one in the industry
ʹ We will be the preferred supplier for our
customers
ʹ We want to be the premier manufacturer of
widgets
ß These are devoid of real meaning
 Powerful Vision Statement
|t should:
ʹ Focus on operations
ʹ |nclude measurable objectives
ʹ Change the basis for competition in the
industry
 WAL-MART
ß ù&
/

ʹ To offer all of the fine customers in our
territories
ß Contribution
ʹ All of their household needs
ͻ Distinction
ʹ |n a manner in which they continue to think of
us fondly
 
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Hammer (1990) describes an accounts payable

process at the Ford Motor Company that was re-
engineered. The accounts payable department
employed 500 people. A competitor's accounts
payable department had 5 people.
Ford set out to reduce workforce by hundreds.
Old system Purchasing department wrote an
order, sent a copy to accounts payable. Later,
when materials control department received
goods.
 Contd..
ß it sent a copy of the receiving document to
accounts payable. Meanwhile the vendor sent an
invoice to accounts payable.
ß The accounts payable department were involved
in matching fourteen data items between the
receipt order, the purchase order and the invoice
before it could issue payment to the vendor.
ß |n fact, the department spent most of its time
trying to sort out mismatches between these
three documents.
Methodology - Hammer/Champy
Methodology - Davenport
Methodology - Manganelli/ùlein
Contd͙
Contd
Methodology - Manganelli/ùlein
Contd͙
 Module 3
Critical Success Factors
By Dr. Neeraj Anand
 CONCEPTUAL

REQU|REMENTS

DES|GN

|MPLEMENTAT|ON
State a case for process reengineering

Establish process objectives Compare and new

processes

|dentify the process for reengineering

Understand and measure the current

process

|dentify and evaluate the enablers

Decision Feedback
point
Design and create a new process

Test the new process Tools and

techniques

|mplement the reengineered process

Feedback
 
||

ß Leadership (Narayanamurthy ʹ |nfosys, working for 16
hrs a day, Shridharan of DMRC ʹ Successful project leader)
ß Shared Vision (ùnown to all the employees ,top to
bottom)
(Australian Cricket Team)
ß Commitment of top management (M&M, Walmart)
ßWell defined objectives (L.N.Mittal Group)
ß Effective Cross-functional teams (Maruti ʹ Suzuki Ltd,
M&M)
ßReadiness for Change and effective change management
( |C|C| Bank, HDFC, ONGC, BPCL )
ßProcess ownership (Accountability)
(L&T, Shell, Delloitte, DNV)
 Contd͙
ß Strategic Alignment: MSL and |C|C|, |GNOU
with NGOs/ U.ù. Government, Tata ʹ A|G
|nsurance
ß Empowered Employees (HDFC, AES)
ß Adequate Budget (Jamnagar Refinery of R|L,
DMRC)
Reasons for Failure of BPR Projects
ß Resistance to change (Automation of Ros)
ß Wrong Sponsor
ß Focus on Cost-cutting
ß Lack of technical expertise
ß Sense of insecurity /Fear of loss of job
ß Too many projects/process in parallel
ß Unhealthy conflict (|nter departmental)
ß |nsufficient Budget