Business Reengineering Process vs. Continuous Process Improvement
INTRODUCTION The concept of Business Process Reengineering (BPR) is to rethink and breakdown existing business process. This allows a company to reduce cost and improve productivity through newer, more efficient process. It is important to remember however, though there are instances where these is necessary, BPR is not without its disadvantage. This makes it vital to weight your decision carefully. One of the most obvious adverse effects of a company’s decision to reengineer is lowered employee morale. Most people are vary of changes and do not manage to adapt to it easily. These aspect need to keep in mind when trying to make decision to go through with the activity.
DEFINITION BUSINESS REENGINEERING PROCESS (BPR) AND CONTINUOUS PROCESS IMPROVEMENT (CPI)
According to Hammer and Champy, BPR is the fundamental rethink and radical redesign of business process to achieve dramatic improvement in performance such as cost, quality, service, speed etc.
In BPR the organization need to go back to the basic and re-examine their roots. It doesn’t believe in small improvement rather it aims at total reinvention. BPR focus more on process and not on task, job or people. For example, we do not redesign personnel but we redesign the hiring process.
The entire technological human and organization unit maybe change in BPR. It is important to us to understand that a significant business process can involve multiple organizational units. When we doing BPR it not only affects the process but also affect the people completing the process, the skill factor required and the organizational procedure for managing those people. In BPR when we change the process, we will also change the culture of our organization.
CPI seeks incremental improvement that is not drastic. CPI takes a long term incremental approach when in cooperating CPI. The goal of CPI is to improve business process by introduce some moderate changes that are generally incremental in nature. In order to improve
DEFINITION BUSINESS REENGINEERING PROCESS (BPR) AND CONTINUOUS PROCESS IMPROVEMENT (CPI)
According to Hammer and Champy, BPR is the fundamental rethink and radical redesign of business process to achieve dramatic improvement in performance such as cost, quality, service, speed etc.
In BPR the organization need to go back to the basic and re-examine their roots. It doesn’t believe in small improvement rather it aims at total reinvention. BPR focus more on process and not on task, job or people. For example, we do not redesign personnel but we redesign the hiring process.
The entire technological human and organization unit maybe change in BPR. It is important to us to understand that a significant business process can involve multiple organizational units. When we doing BPR it not only affects the process but also affect the people completing the process, the skill factor required and the organizational procedure for managing those people. In BPR when we change the process, we will also change the culture of our organization.
CPI seeks incremental improvement that is not drastic. CPI takes a long term incremental approach when in cooperating CPI. The goal of CPI is to improve business process by introduce some moderate changes that are generally incremental in nature. In order to improve
References: Khashi’ah Yusof (2009), Analysis and Design for accounting students, 3rd edition, pg 74 – 77, Mc Graw Hill Education Kim Langfield (2012), Management Accounting, 6th Edition, pg 744 – 745, Mc Graw Hill Education. http://www.yourarticlelibrary.com/different-between-continous-improvement-and-process-reengineering/21131 http://www.entrepreneurial-insights.com/business-competitives-business-process-reengineering-bpr/ Criatiana Bogdanoui (2012), Business process reengineering method versus kaizen method, Faculty of financial Accounting Management Craiova, Romania J. Chris White (2014), Reengineering and Continuous Improvement, Retrieved from www.qualitydigest.com