Business Process Reengineering or BPR is the cornerstone around which an ERP project should be based. No one can properly evaluate, short-list and then choose an ERP system without having identified the corporate processes and the way they should be changed to achieve corporate goals. So, no BPR means no proper ERP selection and ERP implementation. We often say that the ERP system is a powerful tool, but it requires process maps to be well-defined before the implementation.
BPR and process mapping are closely entangled. We need process mapping:
- To understand how things are done now (“As-Is” or “Current State”).
- To describe how things should be done in the future (“To-Be” or “Target State”).
So, if processes are not mapped first, how can we reengineer them?
BPR is meant to fundamentally rethink corporate processes in order to improve customer service and reduce costs. The ultimate goal is to make companies more efficient and effective in the market.
BPR is itself a complex process that is meant to:
- Produce “As-Is” and “To-Be” process maps.
- Provide the client with a “common language” to describe and understand business processes, thus establishing a company knowledge base.
- Areas of improvement.
- Areas where processes are not clear.
- Complexities and constrains that can be removed.
- Unnecessary (non-value adds) steps that need to be removed.
- Understand and describe all process steps.
- Identify issues concerning resource allocation and training.
- Evaluate performance indicators already in use.
- Establish new performance indicators when needed.
- Identify key factors of efficiency and effectiveness that must be supported by the process (and the new system).
Process mapping is the tool that support a BPR cycle.
Process mapping make visible:
- Process sources (Supplier, Customer, Departments).
- Processes that links sources, inputs and output all together.
- The ownership of any single process.
- Transactional volumes of each activity.
BPR should also:
- Be focussed on reality in the “As-Is” phase.
- Take into account best practices when defining the “To-Be” scenario.
Process mapping in the “As-Is” phase should describe “how things are really getting done” not “how they should be done according to internal regulations”.
Process mapping should therefore help companies in:
- Making the relationship between market and business process more visible.
- Reaching the real business process owners at all levels, shop-floor included.
- Revisiting all process thru a structured walkthrough.
BPR should consider the existing best practices concerning the client’s business segment and take them into account before suggesting any type of improvement.
BPR would also needs an adequate alignment with the IT infrastructure to be properly implemented. IT infrastructure and existing IT system could be:
- Made more powerful by interfacing it with “Best-of-Breed” systems or by adding customised programs.
- Replaced by a more adequate system or group of systems.
We have a wide experience in reengineering corporate processes. We performed these activities in manufacturing, construction and retail companies.
Do you need help in radically rethinking your company processes? Do not waste time! Call us today or send a message to email@example.com .