Business Process Reengineering Essay

Fundamental rethinking and radical design to achieve prominent cash advance in appeal, quality, service and delivery (Hammer & Champy, 1993 Manganelli & Klein, 1994). It means that business cognitive process reengineering invites m either steps that change the entire business process. This is done to reduce the greet of payoff of a product or service, increasing the quality, and satisfying customers by offering an excellent service and delivery. BPR back be done in four ways that atomic number 18i. Business transformationBy using this way, the whole governing is changed. This includes the business process, business management and business strategies.ii. Redesign business processIn this way, only the business processes be changed. Usu tout ensembley, the number processes leave alone be reduced. The non determine added processes are eliminated.iii. Business process change managementThis is the process for managing human/employee lieu of change. It includes the steps tak en to change the management team up or a project draw.iv. Redesign strategies and value added processesIt means that the organization changes the business strategies and creates or improves their value added activities.Objectives of Business Process Reengineering (BPR)There are many objectives of business process reengineering. The main objective is of course to increase the effectiveness and efficiency of the whole business. Listed down the stairs are the specific objectives of business processreengineering i. To save time and costTime can be saved once the non value added activities are upstage from the process as there is fewer sue process to be done. This totallyow go bad to cost saving as the cost incurred during the production will also decrease. As the cost decreases, the profit margin will be higher and it will lead to a greater income for the bon ton.ii. To improve the quality of workBy implementing business process reengineering, the fragmentation of work can be re duced. This is contributed by the fewer process involved in production. This will reduce the errors that total in production as fewer machines or human are involved. The performance of the business process reengineering can be improved through feedback stock by the users of the goods or services.iii. To satisfy customersThis is also one of the objectives of implementing business process reengineering. Customers will always be the main priority. BPR will ease the customer in many ways. For instance, nowadays we no longer have to stand in a queue line while waiting to be served if we go to any bank as the number system had been introduced. This is one character of the contribution of business process reengineering for customers gratification.Advantages of Business Process Reengineeringi. Lower costReengineering proves to be cost effective as the cost of operating after implementing BPR will decrease significantly. ii. Better use of existing staffThe existing staff expertise can be r etained enhance through training them at the point of writ of execution of BPR. iii. Increase effectiveness and efficiencyAs the employees are aware of the processes that they involve in that has been reduced, it also reduces the time lag amongst different process.Implementation of BPRKey StepsSelection of strategic added value processesSimplify new processOnce the engineering take place, organization should stop and execute the selection of idea from the above step. The top management cannot live in limbo between yes or no and what are going to do with the idea.Organize a team & workflowAssign responsibilitiesTrain the process teamManager will act as a coaches for the workers as they do not orders but they will guide, direct, coordinate and empower the job to the workers. This involved the top management and subordinates in working together as a team. Critical success factors required to compete are identified and prioritized. Participative business makeovers reject the top- down approach to reengineering in favor of a middle ground, where the managers and workers come together to redesign business processes. The BPR team will be split into two parts, a design team made up of senior managers, and an execution team composed of people who will actually do the workIntroduce the redesigned processThese initiatives seek to provide understanding of the markets, competitors, and the position of the organization within the industry ImplementationBPR Success factorsRevising reward and motivation systemNew reward and incentive intention must be revised as supporting BPR effort to encouraging people to endorse BPR such as introduce new job titles in order to motivate the workers to the new system implementation. The workers are a resource for an organization to manage the operation effectively. The BPRwill successfully be implemented if the workers are highly motivated to the changes made.Effective communicationIt is demand throughout the changes process at all leve ls in order to ensure patience and understanding among all employees. Communication breakdown between top management and the workers tend to happen due to the significant changes in the new system. By improving a bettor way of communication could lead the company to successfully implemented BPR in the organization.EmpowermentThe organization should establish a culture which staff at all levels feel more responsible and accountable to their respective job scope. Empowerment will make the staff feel more appreciative of their work when the organization give them the authority which in other means recognized and appreciate their work towards the success of the organization. The staff also will be able to puzzle their goals and monitor their own performance thus supporting the implementation of BPR.Management of riskBPR involves radical changes to several systems in organization. Continuous risk assessment is needed throughout the implementation process to ensure the BPR success. The calculation of risk will help the organization in decision making regarding BPR implementation.Aligning BPR strategy with incorporated strategyAs corporate strategy determines objectives and guidance on how the organizational capabilities can be best utilised to gain competitive position, BPR strategy guides the qualifying of tasks into integrated process. It also must accompanied by strategic planning in order to be successful in the long run.Kaizen Costing existenceKaizen costing also has a Japanese heritage. It comes from the combination ofthe Japanese characters kai and zen which mean change and good, respectively. The word Kaizen translates to continuous improvement or change for the improve and aims to improve productivity by making gradual changes to the entire manufacturing process. Masaki Imai known as the Lean Guru and the father of Continuous Improvement (CI) Masaaki Imai has been a pioneer and leader in spreading the Kaizen philosophy all over the world.Understand Kai zen CostingTo understand Kaizen costing, one first needs to grasp standard costing methodology. The representative standard costing approach works by designing a product first, and computing costs by taking into account material, labour and overhead. The resulting encounter is set as the product cost. The standard cost is set and revised on a yearly basis. Cost deviation analysis involves checking to see whether the intercommunicate cost estimates tally with the final figures. Manufacturing procedures are assumed to be static.In example, approach centres around recognizing that employees who work on a particular job are aware of how that particular task can be greatly improved. Employees are treated as worthy sources of viable solutions, an approach that differs greatly from the standard cost system that views employees as labourers with variable performance levels.GoalsIn order to properly implement Kaizen principals for process improvement, there are four goals towards reachin g successful implementation of Kaizen 1. To ensure that actual production cost are less than the prior year cost. 2. To reduce the difference between profit estimates and target profits (every surgical incision in the company makes an effort to introduce operational changes on a daily basis). 3. Analyzing every part of the process and generating ideas on how they can be gain improved. 4. Kaizen costing takes into account aspects such as time-saving strategies, employee efficiency and wastage reduction.AdvantagesFocus on customersKaizen permits no middle ground its either you provide best products and customer triumph or not. All the activities should aim at providing customer with whatever he wants and should help the firm long term objective of customers gladness at the same time building up good relationship. It is a responsibility of each and every person working in a Kaizen company to make sure that the product is up to the mark and it satisfies customers need. Make improveme nts continuouslyIn order to search for excellence just does not end. We should work on the improvement implemented and see if we can make it even more effective. Acknowledge problems openlyEvery company has certain problems related to finance, competition, change in demand etc. Kaizen companies are no exception, but by fostering an appropriately supportive, constructive culture it becomes easier for any team to get its problem in the open. The whole organization works as a team to solve the problem. The problems are openly shared by the management with the employees which avoids rumours. It simply means scrap WITH YOUR PROBLEMS DONT RUN AWAYFROM THEM. Promote opennessThere seems to be less operating(a) ring fencing i.e. only the senior managers have hidden cabins. Otherwise the workplace is generally open and in many companies even the dress code and canteen for everyone is the same Create work teamsEach singular in a Kaizen company belongs to work team headed by a leader. Worki ng in various overlapping teams draws employees into corporate life and reinforces the mutual understanding. Cross- functional teamsKaizen states that no individual or team has all the required skill and knowledge to complete a task. Cross-functional teams help in getting all the valuable informations from the view of all the related people. It calls forletting ideas to flow as wide as running on moon. DisadvantagesReluctant to change most(prenominal) employees do not like changes as it will lead them to a new style of workingToo much suggestion may lead to confusion and time wastage.By giving the opportunities to help in getting all the suggestion from the view of all the related people, they may be torment to focus what are the best way to follows and also required a lot of time in considering which ways is the beneficially to them.Real life example A Case Study of New Kaizen Activities at Tahara plant (Toyota)This type of costing was used by Japanese automobile companies (Toyota ). The manufacture line at Tahara plant was reorganized in 1995 clearly following the new concept realized first at Toyota Kyushu. However it was the assembly section itself that conceived this new assembly line, taking the initiative in product design and reconstruction of the assembly line. It began in 1991 where the change in 1995 of the Hilux Surf (sports proceeds) being assembled and the assembly of another sports utility (Land Cruiser Prado) from 1996 were planned.On the basis of discussions held in the Committee above mentioned, the director of this assembly plant suggested to his assembly sections manager (section top dog) to prepare the revision of this sports utility by searching for an ideal assembly line. He then started to conceive it and organize engineers, try team staff, chief leadership and group leaders so that everyone would collaborate in order to realize an ideal assembly line about which he did not have any clear conception. thusly he fixed the orientatio n toward the reconstruction of his assembly line as followsConstruct an assembly shop where the workers can work easily and executetheir trading operations rhythmically Organize a human centered Toyota Production SystemForm a kaizen mind of everyone so that he/she willingly does kaizen.The section chief thought that if the assembly shop were organized in such a way, it would also contribute to increase production efficiency assuring quality and security, and then to reduce costs. There were many problems to solve, which necessitated the collaboration of the product manager of these models, Product Engineering Design Sections, Production Engineering Division as well as those of Araco and Hino (Araco designs the body of Land Cruiser Prado Hino, that of Hilux Surf whereas Toyota develops their chassis). In fact, the conception of new assembly line could not be developed without modifying vehicle structures and parts designs of these models. equality between BPR and Kaizen approach.Re- engineeringKaizenType of processWork best cross organizational boundaries as complex interrelationship of variables. Work best with well defined boundaries. compass point of changeIncremental or radical and usually bear upon an entire integrated process. Incremental or radical but usually only affect a limited sub process at a time. SpeedGenerally implemented in a big bang changeoverGenerates straight noticeable and measurable changesAcceptanceHigh risk of things reverting back to the way they were soon after the consultants leave. Since the people that actually do the work are the ones making the changes acceptance are very high. CostOften involves expensive technologies, computers, and other system. Most lean changes are inexpensive or even free. applied scienceReengineering project is often led by computer consultants.Most lean methods minimize or even eliminate reliance on technology with a preference toward visual methods and simplification.Similarities of Business Process R eengineering and Kaizen Approach i. They increase the effectiveness and efficiency of the way the organization operates. ii. These two approaches focus on lowering cost.iii. Customers satisfaction is always the goal for these two strategic management accounting approaches.ConclusionThe Business Process Reengineering is the process of redesigning the business processes and the associated systems and organizational structures to achieve a dramatic change in the whole business process and performance. On the other hand, Kaizen is a small improvements and changes for a better for business process and performance. It must be accompanied by change of method. Business Process Reengineering is a project with a defined beginning and ending. Kaizen is a never ending process.