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Conclusion
Processes exist in every type of business environment, be it manufacturing or service, and the type of processes that are used and how well they perform are directly related to the success of every organization. Managers, therefore, need to understand how these processes work and measure their performance on a continuous basis. An integral part of managing processes is process analysis, which is used
Issues with Reengineering
In recent year. both manufacturing and service companies have adopted business process
reengineering in an attempt to be more responsive to the marketplace as well as to increase he overall efficiency of their operations, However, very few of these reengineering efforts have been successful. One reason for this is the inability of management to link the reengineering effort to the overa
Work Is Performed Where It Makes the Most Sense
This involves shifting work across traditional functional boundaries, No longer, for example, are all purchases made by the purchasing department. For small purchases, such as office supplies, it may be more efficient to have each department do its own purchasing.
Processes Have Multiple Versions
Unlike assembly lines, which are totally inflexible and therefore can produce only standardized products, reengineered processes have several versions to meet the unique requirements of different market niches as well as individual customers. An advantage of the multiple-version approach is that these processes rend to be relatively clean and simple in comparison to the traditio
The Steps in the Process Are Performed in a Natural Order
With reengineering processes no longer have to be forced into a sequential order. Instead, a natural sequence of events is permitted, based on what .needs to be done next. This allows many jobs to be performed simultaneously thereby reducing the throughput time.
Workers Make Decisions
Decision making becomes a part of every person job eliminate the need for the traditional and costly hierarchical organizational structure I have Th it. many layer of management. This i-, referred to as vertical work companion. benefits include faster customer lower overhead co-t-. and increasing worker empowerment.
Several Jobs Are Combined into One
Assembly lines are no longer used because of their inherent fragmentation of work. Specialists are replaced with "case worker ho have the responsibility) for overseeing the entire process. This is referred to as horizontal~1 work compression. By combining tasks and jobs under one person, errors that. information from one individual to another are eliminated in addition the
Characteristics of a Reengineered Process
Based on their man) years of experience with companies that have successfully reengineered
then procev cv to better meet the needs of the marketplace. Michael Hammer and James Campy have identified several character tics of reengineered process which are described below, that they have observed on a recurring basis.
Reengineering Defined
This process of rethinking and restructuring an organization is often referred to as reengineering. Reengineering means literally starting from the beginning with a clean sheet of paper in terms of how we design our organizations to bender serve our customers. It focuses on processes. not individuals performing individual tasks. A key element of reengineering is the notion of "discontinuou
Business Process Reengineering 7
For many years, dating well back into the 19th century companies were organized and structured both to maximize efficiency and also to control growth. However, with the emergence of a single world economy and increased competition from comers of the globe today's competitive priorities for success have shifted from efficiency to innovation, speed,
service, and quality To incre
