CHAPTER 11

PROCESS
REDESIGN /
ENGINEERING
Prepared by:
Chapter 11
Process Redesign
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O • The approach to ensuring that a particular set of interconnected activities are
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performed correctly, and in the most efficient and effective manner possible.
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R • The main movements influencing process redesign over recent years are ‘lean
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production’ and ‘process re-engineering’. The first has its roots in reviews of causes
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by information technology for traditional processes to be fundamentally redesigned.
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Chapter 11

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I Lean Production
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• An approach to management that focuses on cutting out waste, whilst ensuring
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quality. It aims to cut costs by making the business more efficient and responsive to
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I • Over production • Excess conveyance • Excessive inventory
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E • Waiting • Extra processing
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Chapter 11

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BPR?
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S Business Process Re-engineering/Redesign (BPR)
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• BPR is a management strategy focuses on the analysis and design of workflows and business
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• It challenges managers to re-think their traditional methods of doing work and to commit to
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functional teams.
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Chapter 11
7 Phases of Redesign Process
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Chapter 11
7 Phases of Redesign Process
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1. Discover and Define
C This involves first identifying a problem or unacceptable outcome, followed by
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S determining the desired outcome.
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R “I want to put together a cool product brochure.”
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2. Establish Redesign Team
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G The team should comprise as a minimum the following:
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• Senior managers as sponsor.
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• Steering committee of senior managers to oversee - Five to ten people
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overall re-engineering strategy. - Only work on one redesign at a time
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N • Process owner.
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E • Team leader. - Made up of both insiders and outsiders
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Chapter 11
7 Phases of Redesign Process
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3. Analyze and Document Process(es)
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E Seeing the process as it is provides a baseline from which to measure, analyze, test
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4. Innovate and Rebuild
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E The team rethink and redesign the new process in an iterative approach involving all
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the stakeholders, including senior management.
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5. Re-organize and Re-train
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This includes piloting the changes and validating their effectiveness. Training and/or
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Chapter 11
7 Phases of Redesign Process
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R 6. Measure Performance
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E It is necessary to develop appropriate metrics for measuring the performance of the
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7. Continuous Redesign and Improvement
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E In a rapidly changing, ever more competitive business environment, it is becoming more
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I likely that companies will re-engineer one process after another.
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Chapter 11
Assumption Busting (named by Hammer and Champy)
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O This aims to identify the rules that govern
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adoption of these rules.
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E Ex.
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G Problem: People with disability do not
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Assumption : People with disability do not
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N Reverse : People with disability can work
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Chapter 11
Assumption Busting (named by Hammer and Champy)
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S Problem: Private companies do not promote employees without masteral degree.
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E Assumption : Employees with masteral degree are more knowledgeable about work.
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Reverse : Employees without masteral degree can attend seminars and trainings to gain more
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Chapter 11
Assumption Busting (named by Hammer and Champy)
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Application of the Technique
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In practice the author and his colleagues have found this technique to be of greatest value
when applied by a cross-functional group of process operators and supervisors who are given
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a specific problem to fix. In using the technique, care must be exercised in the use of terms
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Other Applications of Assumption Busting
E It is of particular benefit when applied by partners within a supply chain. The trading
N relationships and practices that exist in a modern supply chain are the product of a number of
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Chapter 11
BPR – The People and The Leader
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O - For an organization to focus on its core processes almost certainly requires an
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- BPR has profound impacts on employees from the top to the bottom of an organization. In
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Chapter 11

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