Business Process Reengineering today is the latest, most radical, revolutionary and extremely powerful management tool.
BPR is defined as “ The fundamental rethinking and radical redesign of the business process to achieve dramatic improvements in critical contemporary measures of performance such as cost, quality, service, and speed.”
BPR offers process based approach to strategy rather than market based approach. The tool concentrates on process activities that convert inputs to output for the customer.
It will not believe in minor improvements through modifications. It is going to strike the very aspect of design.
The entire form or structure of the process may change during the reengineering and the reengineered process may not resemble the old one.
The entire process of reengineering revolves around how to give the customer what he wants at the right time and in the most cost effective manner.
BPR is a powerful tool that promises the higher order magnitudes of improvements in revenues, profits, productivity, cycle time and efficiency.
Advantages of Business Process Reengineering:
• Improvement in entire organization as a whole.
• Better systems and management improvements in the areas of- Product and services, Design and operations, improved system operations.
• Takes advantage of improved operations.
• Improved application of industrial engineering in the areas of- organizational strategies, management functions, plant utilization, quality improvement, creativity and innovation, confidence in competition.
• Improvement in customer satisfaction.