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FREE online courses on Business Needs and ERP - BPR and ERP - Process of Reengineering

 

How does one go about reengineering a business? The process will depend upon organizational goals.

 

If you wish to streamline a process, you will engage in detailed analysis of the current approach, seeking to understand, for example, the gaps in time between each value-added action. An order may enter the company and go to one department to be checked for availability; to another group to check that all the pieces of equipment being ordered actually work together; to sales, in the case of a custom order, to apply the correct price and relevant discounts; over to the accounts receivable department for a credit check, back to the order desk to identify the funding source; and so forth. Many companies have discovered numerous handoffs in their process and inevitably the customer order, in this case, waits for the next person to be ready to add their value to the paper. Eliminating those gaps when no value is added by grouping activities together or by automating some or all of the process, will shorten the overall process time and usually lower the cost.

 

At the other end of the continuum, to reinvent a process you may spend some time to understand the nature of the current process, but you will quickly move to look at the business problem. It is useful to start, in the case of a sales order, with the end of the cycle-a satisfied customer. Understanding what the customer wants and needed from you will begin the process of looking at how your company processes orders. In this case, you may discover the customer is very familiar with your product line and can be equipped with the ability to send in orders electronically. The entire process may be automated with a few individuals available to solve problems, should they occur. The system should detect these exemptions early rather than waiting until the customer takes receipt of the product.

 

The process for reengineering consists of four basic steps: choose a process, understand it to the extent needed, redesign it and implement the change.

 

Nothing about this simply stated process is easy. The entire process must be identified by executive management as essential to the company's success or survival; else why do it at all? Each step will take considerable deliberation and will be broken into several components. Along the way, the ultimate recipients of the changes must be kept involved and informed. The process requires a combination of attention to detail and creative out of the box thinking which is scarce.

 

 

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