Business process Re-engineering
Prepared 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 areas
Emphasize customer satisfaction
Use performance improvement programs and problem
solving techniques
Focus on business processes
Use 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
Characteristics
Process based
Fundamental rethink
Radical improvement
Integrated change
People centred
Mindset change
Process-based
Replace traditional management
philosophy
Look at business from outside in
Concentrate on end-to-end management
of processes
Fundamental Rethink
A zero-based approach to the redesign of key
processes
Three 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 improvement
Avoid scaling down ambitions
Emphasis on achieving dramatic and
sustainable leaps in performance
Re-engineering not appropriate if
alternative approach will achieve same
gains
Integrated Change
Major change adds pressure
Personal ambition and competing
initiatives - divert attention and resources
The approach should deliver a balanced
and holistic solution
People and training put in place
People Centred
Understanding of business goals
Knowledge of processes
Ability to make decisions and take risks
on behalf of organisation
Coaching of staff
Mindset Change
Discard prior conditioning
Build and communicate a shared
understanding of the organisation’s future
Create an environment and infrastructure
that promotes learning and imagination to
guide decisions
A five-step approach to Re-engineering
Develop the business vision and process objectives
- Cost reduction
- Time reduction
- Quality improvement
Identify the business processes to be redesigned
Understand 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 technology
Shared 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 approach
label 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
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.
Success
Procter and Gamble
General Motors
American Airlines
Southwest Airlines
Dell
Ford
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
Recovery
neck)
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
18.25
No 1 to 8- Surgeons
12.37
% No 9- Anaesthetist
6.26
4.11
1.55 2.23
1.10 1.29 0.90
Simulation Models
Model 1- Shift Model
Model 2- Shift Model with Increased Staff
Model 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
Utilization (%)
Location
Original Model Model 1 Model 2 Model 3
Entrance 33.26 59.16 55.76
23.00
Pre Op 92.43 96.40 96.06
69.36
Recovery 0.99 1.05 0.97
1.90
Exit 0.00 0.00 0.00
0.00
OT(CLR)/OT1 10.24 9.23 10.29
92.44
OT(CTS)/OT2 8.18 10.34 9.18
91.13
OT(ENT)/OT3 14.26 13.05 15.85
92.49
OT(GES)/OT4 69.09 78.37 69.21
93.94
OT(GYN)/OT5 11.58 10.46 9.42
92.77
OT(Others)/OT6 88.87 91.04 83.37
94.27
OT(OTO)/OT7 100.00 100.00 100.00
94.15
OT(PLS)/OT8 8.56 7.34 7.45
94.12
Original Model 1 Model 2 Model 3
Model
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
