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Business Process Reengineering

Business Process reengineering (BPR) is a more radical approach to improvement than total quality management (TQM). Instead of tweaking the existing system in a series of incremental improvements, in process reengineering a business process is diagramed in detail, questioned, and then completely redesigned to eliminate unnecessary steps, to reduce opportunities for errors, and to reduce costs.

Definition. A business process is any series of steps that are followed to carry out some task in a business. Business process reengineering (BPR) is the analysis and redesign of workflow within and between enterprises.

Business Process Reengineering (BPR) can be defined as the elemental rethinking and radical redesigning of the business processes in order to achieve remarkable improvements in critical measures of performance like cost, service, quality, and speed. An organization where application of BPR is being done, is process-oriented, where all processes are identified and given specific names. Each individual is aware of the particular process on which he or she is involved and complete process measurement such as monitoring and control is performed. Business process Reengineering or BPR is also known by other names like Business Process Redesign, Business Process Change Management or Business Transformation.

Advantages of BPR

BPR brings numerous benefits to organizations and companies in which it is implemented. Some of the common benefits of BPR are:

(i)    Increase Effectiveness. As all employees are ware of the processes to which they belong they have a greater sense of responsibility. All processes are completely monitored under the strict control of the management. The net result of this is that employees deliver high quality products to their customers.

(ii)    Improving Efficiency. Proper management and control of all business processes reduces the time lag between different processes, which otherwise is quite high causing delays. This in turn deduces the time to market the product to the target customers and givesquicker response to buyers.

(iii)    Reduces cost. With the proper management of processes, improved efficiency and quick delivery of products tot eh buyers, the overall product costs are reduced resulting in cost saving for the organization in the long run.

(iv)    Meaningful job for employees. As the time lag of product processing between different departments gets reduced due to the application of business process reengineering, there are more meaningful tasks to be performed by employees. This leads to increase their levels of motivation and the desire to perform well.

(v)    Improvement in organization approach. According to the traditional approach of managing an organization there is no flexibility or adaptability to change. The management formulated strict rules for employees of the organization. Whereas now, when must organizations have implemented business process reengineering there is an increase in flexibility for change. This has created better environment for people to work, thus leading to employee satisfaction.

(vi)    Growth of business. Implementation of BPR results in the growth of the present business thus enabling the emergence of new business within the same organization.

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