Reengineering Defined
Valfredo Pareto
Early 20th century Italian economist
80 / 20 role
80 % of the effective expanded in an process is caused by
20 % of the input
Ford’s concepts
We pay when we receive the invoice
We pay when we receive the goods
We pay when we use the goods
Key learning themes from the Re-engineering Experience
1 Process Orientation
2 Ambition
3 Role breaking Brake old traditional rules
4 Creative use of
information
Technology
Create new process model as per another
information technology.
IT acts as an enabler that allows
organization to do work in radically ways.
The truth of Re-engineering
Reengineering is not restructuring or downsizing.
Downsizing or restructuring means doing less with less whereas re
engineering means doing more with less.
Business reengineering is synonymous with innovation.
MB 010 – Business Process, Re Engineering
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.
In reengineering, in order to meet contemporary demand of quality,
service, flexibility & low cost, the process must be kept simple.
Characteristics of Re-engineering Process
Several jobs are combined into one
Several jobs combine into one may firmly distinct jobs as tasks we
integrated & compressed into one
Customer service representative
Performs the entire process & also serve as the single
point of contact for the customer
Case team / Case team members
Worker make decisions
Vertical Compression
Workers had to go to managerial hierarchy for an answer
Workers themselves now do that portion of a job that firmly
managers performed
The steps in the processes are performed in a natural orders
Freed form the tyranny of straight line sequences
Decline arising
Many jobs get done simultaneously
Reducing the amount of time that is elapsed between the
early and late steps of a process
Processes have Multiple versions
End of standardization
Traditional processors – Mass Production & Mass Market
Need of multiple versions of the same process
Work is performed where IT makes the most senses
Shifting of work across organizational boundaries
Checks and controls are reduced
Non value adding work
Checking of non value [-] adding work
No tightly checking
Reconciliation is minimized
Low inventory
Chain management
Negative inventory carrying costs
Infinite return on capital
Continuous replenishment
A case manager provided at single point of conflict
The steps of a process either are so complex or are
dispersed
Has to answer the customer’s question & solve
customer’s problems
CSR – Customer service representative
Hybrid centralized operations are prevalent
Ability to combine the advantage of centralization &
decentralization
Eliminate the bureaucratic machinery
Valfredo Pareto
Early 20th century Italian economist
80 / 20 role
80 % of the effective expanded in an process is caused by
20 % of the input
Ford’s concepts
We pay when we receive the invoice
We pay when we receive the goods
We pay when we use the goods
Key learning themes from the Re-engineering Experience
1 Process Orientation
2 Ambition
3 Role breaking Brake old traditional rules
4 Creative use of
information
Technology
Create new process model as per another
information technology.
IT acts as an enabler that allows
organization to do work in radically ways.
The truth of Re-engineering
Reengineering is not restructuring or downsizing.
Downsizing or restructuring means doing less with less whereas re
engineering means doing more with less.
Business reengineering is synonymous with innovation.
MB 010 – Business Process, Re Engineering
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.
In reengineering, in order to meet contemporary demand of quality,
service, flexibility & low cost, the process must be kept simple.
Characteristics of Re-engineering Process
Several jobs are combined into one
Several jobs combine into one may firmly distinct jobs as tasks we
integrated & compressed into one
Customer service representative
Performs the entire process & also serve as the single
point of contact for the customer
Case team / Case team members
Worker make decisions
Vertical Compression
Workers had to go to managerial hierarchy for an answer
Workers themselves now do that portion of a job that firmly
managers performed
The steps in the processes are performed in a natural orders
Freed form the tyranny of straight line sequences
Decline arising
Many jobs get done simultaneously
Reducing the amount of time that is elapsed between the
early and late steps of a process
Processes have Multiple versions
End of standardization
Traditional processors – Mass Production & Mass Market
Need of multiple versions of the same process
Work is performed where IT makes the most senses
Shifting of work across organizational boundaries
Checks and controls are reduced
Non value adding work
Checking of non value [-] adding work
No tightly checking
Reconciliation is minimized
Low inventory
Chain management
Negative inventory carrying costs
Infinite return on capital
Continuous replenishment
A case manager provided at single point of conflict
The steps of a process either are so complex or are
dispersed
Has to answer the customer’s question & solve
customer’s problems
CSR – Customer service representative
Hybrid centralized operations are prevalent
Ability to combine the advantage of centralization &
decentralization
Eliminate the bureaucratic machinery
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