Reengineering is the radical rethinking and redesign of business processes to make dramatic improvements in performance, such as costs, quality, service, and speed. Business process reengineering is the analysis and redesign of workflow within a company.
Also, see Business Process Reengineering Methodology.
There are some items to pay attention to when implementing business process reengineering, like:
- The focus changes from the management to the client
- The manager should empower your workers
- Focus on results
- Do not keep scores, lead and teach
- Simple optimized processes are better than complex intricate ones
- If a process continuously does not work, invent a new one, that looks towards the future
- Always identify goals and purposes
- Keep the company’s mission in mind
Only when following this guide, the BPR is successful and meet goals.
Business process reengineering examples
There is nothing better than an example to understand a subject. Thinking of that, we separated some prosperous cases of companies that adopted BPR.
An example of business process reengineering that we can analyze is a fast food company. It can completely redesign the way to deliver products. The process in this kind of restaurant goes like any other. First, the customer makes the order. Second, the order goes to the kitchen. Finally, the staff prepares the food! By studying the process, we see that it would be more efficient if parts of the food were prepared beforehand, in another center, and delivered daily to the restaurants. When the client orders then, everything is assembled and delivered. This is a complete change in the process. As a result, there is more control, fewer accidents, more employee’s satisfaction, and more ability to focus on the client’s needs.
Process reengineering: a way to get results
In a company that offers products, such as cards (birthday, anniversary, Christmas, etc.), to renew their supply and change their design is crucial.
For example, it takes roughly three months to get new items to the shelves. Through a market survey, it is possible to see that it would be ideal if there were new cards every month. To an untrained eye, the production takes most of those three months. When analyzing and mapping the process, though, we realize that the creation was taking the longest.
It is common that the concept is delivered to the creation staff and many employees do the same action (duplicated tasks), or an idea just sits on somebody’s desk for days. With this information, we can redesign the entire process, setting a cross-functional staff to the concept/creation part of the process, with incredible results in speed, costs, and efficacy.
It’s a great business process reengineering example of how it is important to study the process to get good results.
See also: process mapping.
Classic business process reengineering examples
If you still have questions about this topic, check out more examples of business process reengineering in this video:
Also, see Business Process Improvement Examples.
These are just some examples of how business process reengineering can help a company in distress. Sometimes the best approach is to change the way things are done drastically. It can be difficult and find a lot of resistance by the team, but if done correctly it will improve the company in all the ways. Now that you read about business process reengineering examples, also see examples of Business Process Improvement.
Case Study: Business Process Reengineering General Motors Corporation
900 WordsJun 12th, 20104 Pages
Case study: Business Process Reengineering
General Motors Corporation
“General Motors is one of three leading automotive manufacturing companies in the United States. Based in Michigan in 1903 by Henry ford and grew to reach revenue of $150 billion and more than 370,000 employees by 1996. In the 1970's, the automobile market for the major auto makers - General Motors (GM), Ford, and Chrysler- was crunched by competition from foreign manufactures such as Toyota and Honda. In 1999, Ford acquired the Swedish Volvo model in an attempt to compete in the foreign market and expand to other regions.”
General Motors needs to use the business process reengineering for the information systems infrastructure to cut redundancies and requiring…show more content…
This helped Ford save millions on recalls and warranty repairs. Ford has accomplished this goal by incorporating barcodes on all their parts and scanners to scan for any missing parts in a completed car coming off of the assembly line. This helped them guarantee a safe and quality car. They have also implemented Voice-over-IP (VoIP) to reduce the cost of having meetings between the branches.
From this case study, I understood the level of commitment large firms have to maintaining their position in the market. These companies know the revolving nature of business in the sense of how easy it is to fall back if they did not keep up with the change. The Ford process also shows the need for quick and resourceful thinking when faced with situations that might seem to be unfavorable. The way Ford ventured into the foreign market by acquiring local manufacturers was a strategic decision that did not only enabled Ford to merge with different technologies, but it also saved it the additional cost of establishing production centers in Japan and Europe.