Business Process Re-engineering explained - Simplest Explanation Ever

This tutorial introduces business process re-engineering (BPR), a concept that gained prominence in the 1980s. It uses Ford's case study to illustrate how BPR can significantly reduce workforce and improve efficiency. BPR involves radical redesign of business processes, systems, and structures to enhance organizational performance. Key steps include process review, design, and implementation, with principles focusing on outcomes, centralization, and efficiency. However, BPR's drastic nature can lead to challenges like layoffs and cultural shifts, prompting some companies to adopt more gradual approaches.

What was the main issue Ford Motor Company faced in their accounts payable department in the 1980s?

• High material costs

• Insufficient vendors

• Too many employees

• Lack of technology

What is the primary goal of Business Process Re-engineering (BPR)?

• To slightly improve existing processes

• To increase the number of employees

• To radically redesign business processes

• To maintain current organizational structures

What does BPR aim to redesign besides business processes?

• Marketing strategies

• Organizational structures and systems

• Employee benefits

• Product lines

Which of the following is NOT a step in the BPR process as proposed by Hammer and Champy?

• Design process improvements

• Implement process improvements

• Identify the process for review

• Increase employee count

What is the first step in the BPR process according to Hammer and Champy?

• Implement process improvements

• Identify the process for review

• Design process improvements

• Review financial data

According to BPR principles, who should perform the process?

• The person who audits the process

• The person who designs the process

• The person who uses the output of the process

• The person who manages the company

What is the benefit of treating geographically dispersed resources as centralized?

• Reduced communication

• Increased individual autonomy

• Higher local control

• Improved efficiency and cost savings

Which principle of BPR focuses on integrating information processing into real work?

• Link parallel activities

• Integrate information processing

• Capture information once

• Organize around outcomes

What is a potential negative effect of implementing BPR?

• Improved communication

• Declining staff morale

• Enhanced corporate culture

• Increased employee satisfaction

Why might companies prefer gradual changes over BPR?

• BPR guarantees success

• Gradual changes are less disruptive

• BPR is less costly

• Gradual changes require fewer resources