Description
fundamentals of business process and concept of re-engineering for process improvement
BUSINESS PROCESS RE-ENGINEERING
Course Content
1. Business Process Fundamentals • Definition of Business Processes • Business processes and functional processes • Importance of focusing on business processes 2.Understanding Business Processes • Customer focused analysis of business processes • Identifying value adding activities 3.Visualizing Business Processes • Introduction to flowcharting • Types of flowcharts – block diagrams, functional flowchart with time-lines
Course Content
4.Types of re-engineering • Process Improvement with cost reductions • Achieving best-in-class with competitive focus • Radical change by re-writing the rules 5.Organizing for Process Improvements • Setting up teams, choosing team leaders • Training teams for process improvements 6.Benchmarking • Origins of benchmarking – Xerox approach • Definition of benchmarking 7.Internal benchmarking • Benchmarking against the best in the unit • Benchmarking against the best in the group
Course Content
8.External benchmarking • Benchmarking the best in the industry • Benchmarking the best in any industry 9.Re-engineering and Information technology • Flowcharting information flows • Using IT to speed up processes 10.Organizing for re-engineering • Obtaining top management commitment • Creating cross-functional teams • Supporting teams with resources
Course Content
11.Re-engineering – focus phase • Identification of key processes • Identification of key people and getting their support • Identification of benefits possible and resources required 12.Re-engineering – design phase • Selection of processes to be re-engineered • Setting time frames, targets 13.Re-engineering – implementation phase • Communicating the benefits for the organization • Communicating the benefits for the individuals • Monitoring progress • Consolidating the gains
Turnaround Management
Turnaround management is an approach to reposition an organisation and ) develop it into a professional, high-performance organisation in a relatively short period of time
Turnaround Management
The focus is to move the organisation from a traditional, even a high quality deliverer of products and services ) to the one that is even more innovative, cost effective and responsive to core business needs.
Definition
A substantial and sustained positive change in the performance of a business, Turning an uneconomical resource into economical resources
Reasons for decline
Location of unit
a high wage island like Mumbai sellers to buyers market
Shift in the economy
Reasons for decline
Inadequate MIS
resulting into slow Management reaction
Cost push up Management decisions good, but did not foresee negative side effects
Reasons for decline… contd
All these resulted into
Low morale of employees Low team spirit
Tendency to pass the buck and avoid accountability
Reasons for decline… contd
Low customer confidence resulting into Customers switching over to competitor and finally, Getting into a vicious circle
Critical financial issues
The company starts reporting huge financial losses for sometime Paying suppliers is a problem
Paying taxes and other “non-immediate” bills is a problem
Critical financial issues
Important product / project is generating losses Lenders & suppliers are not extending support & not giving the breathing room
Critical non-financial issues
Good clients reluctant to continue Clients complain about low response Employees feel being left out High performers are leaving
Management not working as a team
Critical product / service issues
Competitive pressure Poor customer satisfaction Poor quality of products & services Rise in customer complaints Rising service costs
Symptoms of Industrial sickness
Frequent liquidity problems Fall in sale / profits Rapid raise in debtors Reduced working capital Unfavorable market development High managerial turnover Labour unrest Strike / lockout
Reasons for becoming sick
The reasons may differ from industry to industry and from place to place. But can be categorised into two Internal reasons External reasons
Internal reasons
Mismanagement
Underestimating the cost of new project Delay in project execution And cost escalation
Internal reasons
Under utilisation of resources
Diversion of funds Bureaucratic management
Bad industrial relations
Inadequate working capital
External reasons
Recessionary trends
Slowdown of economy Adverse rules and regulations
Adverse price control policies
External reasons
Tough competition and competitor eating into market share Change in technology and inability to keep pace Changes in customer behaviour
Delay in getting financial assistance
The Turnaround
Small or incremental turn around TQM methodology Substantial or Radical improvements Business Process Reengineering, BPR is required once in five years, at least, to cope with substantial / radical changes
Stages of Turning around
There are 3 stages of turnaround strategy 1. Pre-turnaround – profitability begins to decline, loosing ground in market place 2. Period of Crisis – making loss, decline in market share, cash crunch, etc. Needs to turnaround 3. Period of recovery – the turning point. Serious actions are taken
Steps in turning around
Change in leadership
Old ways which resulted into crisis situation needs to be changed The new leader needs to motivate employees and listen to their views
Steps in turning around
Redefining strategic Focus
Re-evaluating the company’s business and deciding which ones to retain and which ones to hive off
To go in for BPR for the core businesses
Steps in turning around
…. Contd.
Selling and divesting unnecessary assets – liquidating non core business, real estates to generate cash and repay debts Making careful acquisitions – should be area related to its core business, enabling the company to quickly rebuild or replace its weak units
Steps in turning around
…. Contd.
Improve profitability of core businesses It is necessory to take drastic steps
BPR is one of the methods.
doc_662049546.pptx
fundamentals of business process and concept of re-engineering for process improvement
BUSINESS PROCESS RE-ENGINEERING
Course Content
1. Business Process Fundamentals • Definition of Business Processes • Business processes and functional processes • Importance of focusing on business processes 2.Understanding Business Processes • Customer focused analysis of business processes • Identifying value adding activities 3.Visualizing Business Processes • Introduction to flowcharting • Types of flowcharts – block diagrams, functional flowchart with time-lines
Course Content
4.Types of re-engineering • Process Improvement with cost reductions • Achieving best-in-class with competitive focus • Radical change by re-writing the rules 5.Organizing for Process Improvements • Setting up teams, choosing team leaders • Training teams for process improvements 6.Benchmarking • Origins of benchmarking – Xerox approach • Definition of benchmarking 7.Internal benchmarking • Benchmarking against the best in the unit • Benchmarking against the best in the group
Course Content
8.External benchmarking • Benchmarking the best in the industry • Benchmarking the best in any industry 9.Re-engineering and Information technology • Flowcharting information flows • Using IT to speed up processes 10.Organizing for re-engineering • Obtaining top management commitment • Creating cross-functional teams • Supporting teams with resources
Course Content
11.Re-engineering – focus phase • Identification of key processes • Identification of key people and getting their support • Identification of benefits possible and resources required 12.Re-engineering – design phase • Selection of processes to be re-engineered • Setting time frames, targets 13.Re-engineering – implementation phase • Communicating the benefits for the organization • Communicating the benefits for the individuals • Monitoring progress • Consolidating the gains
Turnaround Management
Turnaround management is an approach to reposition an organisation and ) develop it into a professional, high-performance organisation in a relatively short period of time
Turnaround Management
The focus is to move the organisation from a traditional, even a high quality deliverer of products and services ) to the one that is even more innovative, cost effective and responsive to core business needs.
Definition
A substantial and sustained positive change in the performance of a business, Turning an uneconomical resource into economical resources
Reasons for decline
Location of unit
a high wage island like Mumbai sellers to buyers market
Shift in the economy
Reasons for decline
Inadequate MIS
resulting into slow Management reaction
Cost push up Management decisions good, but did not foresee negative side effects
Reasons for decline… contd
All these resulted into
Low morale of employees Low team spirit
Tendency to pass the buck and avoid accountability
Reasons for decline… contd
Low customer confidence resulting into Customers switching over to competitor and finally, Getting into a vicious circle
Critical financial issues
The company starts reporting huge financial losses for sometime Paying suppliers is a problem
Paying taxes and other “non-immediate” bills is a problem
Critical financial issues
Important product / project is generating losses Lenders & suppliers are not extending support & not giving the breathing room
Critical non-financial issues
Good clients reluctant to continue Clients complain about low response Employees feel being left out High performers are leaving
Management not working as a team
Critical product / service issues
Competitive pressure Poor customer satisfaction Poor quality of products & services Rise in customer complaints Rising service costs
Symptoms of Industrial sickness
Frequent liquidity problems Fall in sale / profits Rapid raise in debtors Reduced working capital Unfavorable market development High managerial turnover Labour unrest Strike / lockout
Reasons for becoming sick
The reasons may differ from industry to industry and from place to place. But can be categorised into two Internal reasons External reasons
Internal reasons
Mismanagement
Underestimating the cost of new project Delay in project execution And cost escalation
Internal reasons
Under utilisation of resources
Diversion of funds Bureaucratic management
Bad industrial relations
Inadequate working capital
External reasons
Recessionary trends
Slowdown of economy Adverse rules and regulations
Adverse price control policies
External reasons
Tough competition and competitor eating into market share Change in technology and inability to keep pace Changes in customer behaviour
Delay in getting financial assistance
The Turnaround
Small or incremental turn around TQM methodology Substantial or Radical improvements Business Process Reengineering, BPR is required once in five years, at least, to cope with substantial / radical changes
Stages of Turning around
There are 3 stages of turnaround strategy 1. Pre-turnaround – profitability begins to decline, loosing ground in market place 2. Period of Crisis – making loss, decline in market share, cash crunch, etc. Needs to turnaround 3. Period of recovery – the turning point. Serious actions are taken
Steps in turning around
Change in leadership
Old ways which resulted into crisis situation needs to be changed The new leader needs to motivate employees and listen to their views
Steps in turning around
Redefining strategic Focus
Re-evaluating the company’s business and deciding which ones to retain and which ones to hive off
To go in for BPR for the core businesses
Steps in turning around
…. Contd.
Selling and divesting unnecessary assets – liquidating non core business, real estates to generate cash and repay debts Making careful acquisitions – should be area related to its core business, enabling the company to quickly rebuild or replace its weak units
Steps in turning around
…. Contd.
Improve profitability of core businesses It is necessory to take drastic steps
BPR is one of the methods.
doc_662049546.pptx