Case Study of BPR

Case Study of BPR
 What is it (the topic history and evolution)?
 What are the basic concepts or principles,
techniques, deliverables behind it?
 Where will it be applicable?
 Why do we have to care?
 When should someone use it?
 What are the similar approaches available in
this field and make a comparison?
 How one should go about in implementing it
(advantages and potential disadvantages)?
 Case study of Toyota (Kanban and E-Kanban)
What is BPR?
 A management approach aiming at
improvements by means of elevating
efficiency and effectiveness of the
processes that exist within and across
organizations.
 The use of information technology (IT) is
conceived as a major contributing factor
to accelerate benefits.
What is BPR?
 In 1990, Michael Hammer, published an
article in the Harvard Business Review
which management should improve nonvalue adding processes.
 This idea was rapidly adopted and by
1993, 65% of the Fortune 500 companies
had plans to adopt BPR concepts or
already applied BPR.
What are the basic concepts or principles,
techniques, deliverables behind it?
 Hammer's claim (1990): Most of the work
being done does not add any value for
customers, and this work should be
removed, not accelerated through
automation. Instead, companies should
reconsider their processes in order to
maximize customer value, while
minimizing the consumption of resources
required for delivering their product or
service.
What are the basic concepts or principles,
techniques, deliverables behind it?
 Hammer's claim (1990): Most of the work
being done does not add any value for
customers, and this work should be
removed, not accelerated through
automation. Instead, companies should
reconsider their processes in order to
maximize customer value, while
minimizing the consumption of resources
required for delivering their product or
service.
What are the basic concepts or principles,
techniques, deliverables behind it?
 Methodology
1. Envision new processes
2. Initiating change
3. Process diagnosis
4. Process redesign
5. Reconstruction
6. Process monitoring
Where is it applicable?

A firm which
- Emphasizing on organizational efficiency
- Having repetitive operations
- Functional departments becoming barriers to change.
- Spending too much time and money in ineffective
coordination and communication.
- Doing work that really benefits customers with a little
time.
- Spending a lot of overheads
- Business processes’ design not handling changing
business environments or not taking advantages of
emerging technologies.
Why do we have to care?
 Some managers focusing on the wrong
issues.
- Even though they consider significance of
information technology
- Applying unnecessary automation to
processes
- Instead of managing non-value adding
processes
 Due to high competitions in business,
organizations need improvements.
 Rapid developments in IT fields.
When should someone use it?
Even it is difficult to define specific answers,
some factors can be concerned.
 Is the competitive outperforming the company
by factors?
 Are there many conflicts in the organization?
 Is there an extremely high frequency of
meetings?
 Are there excessive uses of non-structured
communication? (memos, emails, etc.)
 Is a more continuous approach of incremental
improvements not possible? (such as Kaizen)
What are the similar approaches available
in this field?
 Kaizen refers to a workplace 'quality'
strategy and is often associated with the
Toyota Production System and related to
various quality-control systems.
 English - Continuous Improvement
- Continual Improvement
 Japanese - Change for the better
- Improvement
What are the similar approaches available
in this field and make a comparison?
 Comparison between BPR and Kaizen
Topic
Implemen- Style
tation
BPR
Harder
Kaizen Easier
Main
Requirement
Technology- Requires longoriented
term discipline
Peopleoriented
Enables radical
changes, but
requires major
change
management skills
How one should go about in implementing
it (advantages & potential disadvantages)?
 Advantages
- Increase of efficiency productivity (such as
higher performance, cost and cycle time
reduction)
 Disadvantages
- The disregard of people in an organization
(such as layoffs, work environment,
employee satisfaction)
- Investments, update, and maintenance of
systems
Case study of BPR
 Advantages
- Increase of efficiency productivity (such as
higher performance, cost and cycle time
reduction)
 Disadvantages
- The disregard of people in an organization
(such as layoffs, work environment,
employee satisfaction)
- Investments, update, and maintenance of
systems
Case study of Toyota
(Kanban and E-Kanban)
 Kanban (Before BPR)
Toyota
Kanban
Supplier
Unloading
Part arranging
Delivery part to TMT
Case study of Toyota
(Kanban and E-Kanban)
 E-Kanban (After BPR)
eKanban
Toyota
SCP
system Calculate Order Base on Veh.
Sequence
Vehicle Plan
Supplier
Supplier
- Kanban Printing
- PDS Printing
- Skid Label
Printing
ALC
L/
O
Part
arranging.
Delivery part to TMT
Case study of Toyota
(Kanban and E-Kanban)
 Cycle time reduction
- Faster operations (internet transfer information
immediately)
 Performance increase
- More accuracy by internet tracking (Kanban can
be lost and difficult to tract)
- More flexibility of logistics (easily adjust orders)
 Cost Reduction
- Inventory and part stock area reduction (more
JIT-Just in time)
- Manpower reduction (fewer processes)
Reference
1.Professor Chen’s BPR lectures
2.http://en.wikipedia.org/wiki/Business_proc
ess_reengineering
3.http://www.valuebasedmanagement.net/m
ethods_bpr.html
4.http://en.wikipedia.org/wiki/Kaizen
5.Toyota production system PPT (from
Toyota Motor Thailand)
6.An internal document of Toyota Motor
Thailand’s logistics section.