Major Steps that Company Should Embark on for Reengineering its Process are as follows:
Hammer states that business process may be defined as a set of logically related tasks to achieve a defined business outcome. A set of processes forms a business system – the way in which a business unit or a collection of units carries out its business.
Assuming that a company has decided that its processes are ineffective and inefficient, the following are the major steps the company should embark on to redesign its process, according to Hammer:
(i) Develop business vision and process objectives:
This step involves prioritising objectives and setting targets for the future. A BPR vision statement describes the ideal state of a process.
(ii) Identify processes to be redesigned:
This involves identifying critical or bottleneck processes and envisioning the steps to avert shortcomings in them.
(iii) Understand and measure existing processes:
This involves identifying current problems and setting a base line.
(iv) Identify information technology levels:
This involves bringing those involved in the process to a brain-storming session to identify new approaches.
(v) Design and build a prototype of the process:
This includes implementing organisational and technical aspects.
Process reengineering in a manufacturing organisation:
A process is a group of activities that takes an input, adds value to it and provides an output to an internal or external customer. Processes enable the organisation to focus on the customer. Viewing the material transformation process in terms of those activities tied to transforming material into something of value to the customer is a process view. Such a view examines inventory in terms of customer value, not internal economies. Such a view can be the basis of reengineering processes.