Business Process Redesign Or Reengineering

Business Process Redesign or Reengineering


     Business Process Redesign (BPR) or 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" (Hammer and Champy, Reengineering).  Since the BPR

idea has surfaced it has been under constant ridicule by the popular press.

They say it takes far too long, creates management headaches, fails 70% of the

time, and it's only for big companies with big checkbooks (Hydrel...).  However,

I feel that with the right plan, the right people, and total commitment from

those involved, BPR or Reengineering can work for any company.


The Hydrel Experience


     A good example of this is Hydrel, a manufacturer of in-ground and

underwater lighting equipment.  They were about to begin selling their products

in the international market, and were afraid their current systems could handle

the rapid increase in volume.  So the company president, Craig Jennings, hired

the D. Appleton Company (DACOM) to help reengineer the company's plans to handle

its growth rate.  After DACOM reviewed Hydrel's functional areas and the desires

of the top-level management, they concluded that the order management and

inventory control process had to be redesigned to meet the demands.

     Then they comprised three teams: process, quality, and information. But

before the three teams could work separately, they had to go through a process

to determine if the team members were on the right team, and if they could work

together.  So each of the three teams reviewed employee personalities using the

Pearson Personality Inventory (Hydrel...).  After using the PPI system they

found that all the teams were compatible, and began working on the job at hand.

     The process team attacked the reengineering of the "Manage Customer

Order" process which included all contact with prospects, customers, and sales

agents the moment a question came up.  Then they invited customers and suppliers

to air their own issues and ideas about their company.  All of them had

something to say about the company and were impressed with the reengineering

effort.  The Hydrel process team concluded its redesign work with a delivery

process that removes 37% of the order management activities (Hydrel...).  And

also designed a new computer system to carry out the new process.  The new

computer system will also be used by the quality team to update their new

metrics system.  The quality team developed a completely new system for the

reengineering process.  This new metrics system continually updates them on

changes in the market that deal with quality. This is important so they can deal

with the changes right away and stay competitive.  And finally the information

team came in to wrap up the whole process and implement the new computer system.

They design a system that fit the current demands but is able to grow and expand

a the same rate as the company.

     Due to total commitment from the right 
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