MERP Chapter 4e Chapter 3

Definition: A business process is a sequence of linked activities that an organization employs to create a product or service.
- Comprises a set of procedures that fulfill a business objective.
Types of Business Processes:
- Generic vs Unique: Some processes are standardized, while others are tailored to specific organizational needs.
- Supporting vs Core: Supporting processes aid core operations, which are critical for delivering value.
- Simple vs Complex: Processes can range in complexity; complex processes typically involve multiple steps and departments.
- Short vs Long-Running: Some processes are brief, while others may be extensive and ongoing.
- Formal vs Informal: Processes may be rigidly defined or adapt flexibly to changing circumstances.

Cost Efficiencies: Streamline employee work to save on costs.
Customer Satisfaction and Differentiation: Enable better service and clear differentiation in the market.
Standardization: Ensure consistent performance across locations or units.
Value-Added Activities: Focus on processes that contribute positively to the organization.
Improved Agility and Speed: Maintain nimble processes to adapt to market changes swiftly.
Scalability: Design processes to handle expected future workloads to facilitate company growth.

"As Is" Process: The current flawed procedure that requires improvement.
"To Be" Process: The envisioned future design for the new or improved business process.

Bottlenecks: Information flow leads to single activities, limiting performance and causing delays.
Cycle Time: The duration from beginning to end must be optimized for satisfaction and output.
Data Duplication: Results from unintegrated systems leading to inefficiencies.
Handoffs: Responsibility transfer can result in miscommunication and delays.
Inflexibility: Inability to adapt to changing requirements.
Intermediaries: Unnecessary steps causing bureaucratic delays.
Lack of Consequences: Absence of penalties for non-compliance with standards.
Lack of Visibility: Management lacks a clear overview of the processes.
Manual Steps: These increase error rates and cycle times.
Old Ways: Resistance to new technology leads to continual outdated practices.
Paper Records: Reliance on outdated records should be eliminated.
Quality Control Issues: Inefficient checks add time; processes should be as mistake-proof as possible.
Rework: Need to find and eliminate sources of errors.
Role Ambiguity: Lack of clarity hinders process efficiency.
Scalability Issues: Processes not designed to scale can hinder growth.
Segregation of Duties: Essential to prevent fraud; tasks should not enable concealment of wrongdoings.[

Definition: Fundamental and radical redesign of business processes for significant improvements in performance metrics.
Focuses on enhancing efficiency, customer orientation, and overall performance.
Types of BPR: Clean slate and technology-enabled approaches.

Involves starting from scratch (a "clean sheet") and fostering innovative process design.
Encourages fresh ideas and creates unique, competitive processes.

Involve those who need the output in the process execution.
Treat geographically dispersed resources as centralized for scale benefits.
Link activities in parallel instead of merely integrating end results.
Organize jobs around business processes rather than simple tasks.
Information processing should be integrated into real work, eliminating unnecessary roles.
Decision points should be accessible to those performing the work.
Capture data where it originates to ensure accuracy and audibility.

Utilizes technology (such as ERP systems) to guide process redesign.
Imposes specific constraints on how processes can be structured, leading to efficient designs.

Refers to the practice of replicating outdated processes in new ERP systems instead of optimizing them.
Customization of ERP software to fit old methods can drive up costs significantly.

Unclear Definitions: BPR is not merely downsizing, restructuring, or automating.
Unrealistic Expectations: Gains from BPR should be attainable and expectations carefully managed.
Insufficient Input: Ensure a mix of internal and external insights for the BPI project.
Prolonged Projects: Prolonged changes can undermine engagement and credibility.
Wrong Scope: Address the entire process, not just components; focus on strategically important processes.
Lack of Methodology: A structured approach aids in selecting methods and achieving goals.
Inadequate Resources: Commit sufficient time and funds to support BPR efforts.

Customer-Facing Processes: Should facilitate customer interaction for retention.
Core Competency Processes: Essential operations that need benchmark improvements.
High Volume, Low-Margin Processes: Indicators of harsh market competition.
Quality Control: Transition from reactive management to proactive failure prevention.
High Skill Intensive Processes: Labour-heavy approaches need efficiency assessment.
Obsolete Technology: Digital transformation is necessary to upgrade legacy systems and business models.

Essentials for identifying individuals/groups influential to the project's success.
Conduct assessments of risks associated with process redesign and devise mitigation strategies.
Assess the level of support for changes and the impact on the redesign process.