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Business Process Reengineering

Competition is continuously increasing with respect to price, quality and selection, service and promptness of delivery. Removal of barriers, international cooperation, technological innovations cause competition to intensify. All these changes impose the need for organizational transformation, where the entire processes,organization climate and organization structure are changed

Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance such as cost, quality, service and speed.̧

Process is a structured, measured set of activities designed to produce a specified output for a particular customer or market. It implies a strong emphasis on how work is done within an organization.

Each process is composed of related steps or activities that use people, information, and other resources to create value for customer

BPR characteristics - outcomes include the following

  Several jobs are combined into one.
  Decision-making becomes part of the job of employees (employee empowerment).
  Steps in the processes are performed in natural order, and several jobs get done simultaneously.
  Processes have multiple versions. This enables the economies of scale that result from mass production, yet allows customization of products and services.
  Work is performed where it makes the most sense.
  Controls and checks and other non-value-added work are minimized.
  Reconciliation is minimized by cutting back the number of external contact points and by creating business alliances.
  A single point of contact is provided to customers.
  A hybrid centralized/decentralized operation is use