Management

Organization & Markets

Advantages and Disadvantages of Business Process Reengineering

Supervisor: Submitted by: Period:

Prof. Dr. Breyer-Mayländer Tobias Kiefer (Matrikel-Nr.: 164282) Winter Semester 2003/2004

Organization & Markets

Business Process Reengineering

Table of Contents
1. Business Process 2. Business Process Improvement 3. Business Process Reengineering 3.1 Business Process Reengineering Formally Defined 3.2 Rethinking the Business Process 3.2.1 Combination of Jobs 3.2.2 Responsibility for the Workers 3.2.3 Delinearizing the Process 3.2.4 Multiple Versions of Processes 3.2.5 Reducing Checks and Controls 3.2.6 Additional Requirments 3.3 Advantages of BPR 3.3.1 Satisfaction 3.3.2 Growth of Knowledge 3.3.3 Solidarity to the Company 3.3.4 Demanding Jobs 3.3.5 Authority 3.4 Risks of Reengineering 3.4.1 Resistance to the change 3.4.2 Drawbacks to Business Process Reengineering 3.4.3 Higher Demands to the Workers References 4 5 7 8 9 10 11 11 12 12 13 14 14 14 14 14 15 15 16 16 16 18

Tobias Kiefer

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Organization & Markets

Business Process Reengineering

Table of Figures
Figure 1.1: Business Process Model Figure 2.1: Continous Process Improvement Model Figure 3.1: Business Process Reengineering Model 4 5 7

Tobias Kiefer

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Organization & Markets

Business Process Reengineering

1. Business Process
"If you have ever waited in line at the grocery store, you can appreciate the need for process improvement. In this case, the "process" is called the check-out process, and the purpose of the process is to pay for and bag your groceries. The process begins with you stepping into line, and ends with you receiving your receipt and leaving the store. You are the customer (you have the money and you have come to buy food), and the store is the supplier. The process steps are the activities that you and the store personnel do to complete the transaction. In this simple example, we have described a business process. Imagine

References: [5] Six Sigma Software, BPR Online Learning Center http://software.isixsigma.com/offsite.asp?A=Fr&Url=http://www.prosci.com/intro.htm [6] Hammer, Champy, Reengineering the Corporation, 2001, page 35 [7] Hammer, Champy, Reengineering the Corporation, 2001, page 107 [8] Hammer, Champy, Reengineering the Corporation, 2001, page 54 [9] Hammer, Champy, Reengineering the Corporation, 2001, page 55 [10] Hammer, Champy, Reengineering the Corporation, 2001, page 55 [11] Hammer, Champy, Reengineering the Corporation, 2001, page 56 [12] Hammer, Champy, Reengineering the Corporation, 2001, page 55 [13] Hammer, Champy, Reengineering the Corporation, 2001, page 56 [14] Hammer, Champy, Reengineering the Corporation, 2001, page 56 [15] Hammer, Champy, Reengineering the Corporation, 2001, page 57 [16] Hammer, Champy, Reengineering the Corporation, 2001, page 58 [17] Hammer, Champy, Reengineering the Corporation, 2001, page 59 [18] Hammer, Champy, Reengineering the Corporation, 2001, page 62 [19] Hammer, Champy, Reengineering the Corporation, 2001, page 80 [20] Hammer, Champy, Reengineering the Corporation, 2001, page 74 [21] Hammer, Champy, Reengineering the Corporation, 2001, page 74 [22] Hammer, Champy, Reengineering the Corporation, 2001, page 74 [23] Hammer, Champy, Reengineering the Corporation, 2001, page 221 [24] Hammer, Champy, Reengineering the Corporation, 2001, page 221 [25] Cartland, Business Administration 542, 1998, sample.doc, page 7 www.bus.iastate.edu/hndrcksn/MIS503/sample.doc [26] Cartland, Business Administration 542, 1998], sample.doc, page 7 www.bus.iastate.edu/hndrcksn/MIS503/sample.doc [27] Hammer, Champy, Reengineering the Corporation, 2001, pages 75, 76 [28] Hammer, Champy, Reengineering the Corporation, 2001, page 77