Definition
BPR is the redesign of business processes for substantial improvement. Said simply, it is the redesign of the way work is performed. A process is any series or combination of tasks or activities which produce a result. The result could be a machined part, a drawing, or a requisition for materials.
Traditionally those activities may be performed in a sequential manner. In this situation each step is completed before the next one begins. A supply chain, in contrast, is the chain of processes of moving goods from the customer order through the raw materials stage, supply, production, and distribution of products to the customer.
Business Process Reengineering is approached by examining the strings of processes or cycles. Cycles are sequences of recurring successions of processes or events. The cycle time is the time from the beginning of the first step of the process until the beginning of the first step of the next process. Processes can be decomposed into smaller activities. Every business has basic cycles that govern the way that paper is processed, parts are manufactured, and decisions are made. They may be documented in the form of procedures or routings. Examples of business cycles are customer order, product development, production, and procurement.
A customer order cycle begins with the placement of an order by a customer. It ends when you are finally paid for goods or services rendered. But there are activities in between the two events that consume time. Some add value, such as packing and shipping, and some are non-value adding and delay time, such as moving the order around the building from mailbox to mailbox, sitting on a desk, or repetitive motions.
When a cycle ends, a lot of non-value adding time has been consumed that may constitute 90-95 percent of total time. Some of the time is lost in travel, some is lost in the processing backlog, and some may be lost diverting a customer's order to a credit department for release. If you can identify the non-value added time in the cycle, you can devise ways to eliminate the causes.
Long sequential strings of cycles make up the mainstream order flow and contribute to long throughput times. Poor physical logistics worsen the time delays; i.e. when distribution is physically separated from the main assembly plant, or engineering is separated from sales, etc. Component plants located overseas add even more to the overall throughput time of the service chain of events.
Mapping process flow is a fundamental step in reducing total cycle times. Mapping the flow and tracking time for each of the events provides a basis for analysis. The process is not difficult, however it is time consuming. It provides a step by step image of work flow, systems, procedures, and volumes. It reveals the relationships between the tasks.
Once cycles are mapped, the opportunities to compress time can be pursued. The goal in compressing time is not to devise the best way to perform a task, but rather to either eliminate the task altogether or perform it parallel with other tasks so that the overall system response time is reduced. A basic premise of reducing total cycle times is to separate activities between in-line and off-line.
Extending this approach to the entire supply chain and focusing in on the mainstream activities that add value is key. Each of the steps can be further decomposed into smaller activities. By providing the output, such as transferring information, from smaller activities much sooner to the subsequent smaller activities, time can be compressed.
The Issues
BPR
has unfortunately been associated with "downsizing" or "rightsizing"
both of which mean laying off workers. This has been used incorrectly
as an umbrella excuse for managers to justify downsizing actions. This
should not take away from the need to streamline processes and induce
velocity in product and information flow in a company.
Consulting firms coin phrases to promote their company: Time Based Competition, World Class Manufacturing, Lean Manufacturing, etc. The essence of the new approaches quite often amount to nothing more than "old wine, new bottles." Just like anything else, business process reengineering is no panacea, nor should it be embraced as a religion. It is an operational strategy that, if implemented properly, will provide a new dimension to competing: quickly introducing new customerized high quality products and delivering them with unprecedented lead times, swift decisions, and manufacturing products with high velocity.
Pragmatic Applications
BPR is an excellent tool to use in inducing velocity within an operation. Process mapping can reveal the constraints and bottlenecks in an operation. This identification can facilitate the streamlining of processes, increasing both productivity and throughput. We suggest initially identifying and mapping the critical path processes to discover the bottlenecks that affect the total throughput time, and reengineering those first. Bottlenecks will shift from one operation to the next as each one is resolved. This is an application of basic constraint theory, and will get results that have greater impact on the company.
Our Approach: Tools from a Toolchest
Rockford Consulting Group applies concepts and technologies as the situation warrants, that will result in the ultimate benefit to our clients. We treat strategies, technologies, and methodologies as tools in a toolchest, and use them when they offer practical solutions and achievable results. We believe that each client situation is unique, with its own unique set of solutions. (Please see our business process reengineering consulting services BPR Consulting Services)
Why Us?
Rockford Consulting Group can provide long-term assistance to many companies in a variety of industries. The firm has a cadre of the best supply chain consultants in the world today, providing high quality professionalism through the use of experience and innovation.
We subscribe to the Institute of Management Consultants Code of Professional Conduct. All consultants engaged on projects adhere to its principles. Whenever possible we will use consultants certified in their particular specialty area. Certification assures that consultants have substantial prior experience in their specialty, and their competencies have been tested by the IMC, and verified by a number of clients. This assures our clients that we are assigning the highest qualified consultants in the profession.
We provide technical expertise, team facilitation, leadership, and direction in deciding how you will meet the challenge. We refer you to our Qualification Statement for further details on our background, areas of specialization, concepts and technologies applied, staffing, operating policy, approach, companies and industries served, case studies and references. Equally as important, we train our clients to sustain new methods of manufacturing and the consequential benefits over time. Your company will benefit directly from this training.
We have achieved an efficiency in our approach to assignments that allows us to provide high quality technical and managerial advice in a much shorter amount of time than could be accomplished years ago. We are able to do this because of the extensive consulting experience that each of our specialists has.
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