What is Business Process Engineering?
Business Process Engineering is “the analysis and design of workflows and processes within and between organizations” (Davenport & Short 1990). Teng et al. (1994) defines Business Process Engineering as “the critical analysis and radical redesign of existing business processes to achieve breakthrough improvements in performance measures.
What does Business Process Engineering do?
- Identify and solve process related problems including
- excessive non-value-added time
- long lead-time
- high cost
- customer complaints
- excessive inventory
- unnecessary capital investment
- Drive continuous improvements and sustain cost savings.
- Enforce based-on-the-fact quality attitude and problem solving techniques.
The graphic on the right illustrates the basic model of QIT’s Business Process Engineering approach.
Phase I: Build a foundation to obtain improvement momentum – Research and our own experience in business process improvement proved that many business process re-engineering initiatives fail because the majority in the organization reluctant to make changes. And most of the time, people’s unwillingness stems from lacking of communication.
Our solution utilize a data-based feedback and system feedback approach to have the people in the organization to identify the improvement opportunity and to harmonized the directions of improvement energy. Tools from Organization Development and Change Management will be used to facilitate the communications.
Phase II: Define improvement opportunities – once the foundation is established, use Six Sigma tools and methodologies to define and quantify the problems and prioritize the objectives. Tools from Six Sigma will be adopted to guide the analysis.
Phase III: Design/Redesign processes and business models – based on the quantitative data and objectives defined in the second phase, use Lean concepts such as Value Stream Mapping and Pull strategy to optimize the current processes. Tools from Lean took kits will be applied to design the new processes.
Phase IV: Experiment and improve – in this phases, use Kaizen methodology from Lean tool kits to test and facilitate the deployment of the new designs. In the mean time, also apply Six Sigma methodology to monitor and verify the results, and fine-tune the designs. Six Sigma and Lean tools will persist in the experiments and the continuous improvements.
Phase V: Fully deployment of the best practices and retain the results – use “say what you do and do what you say” concept from ISO9000 to convert the best practices into written procedures and establish a routine internal audit mechanism. ISO9000 standard and document structures will be used to formalize the best practices.
Phase VI: New information technologies to automate process and data processing to increase productivity.
The bottom line, the business enjoys the significant cost reductions, shortened cycle time, and an inside-out positive energy to push the continuous improvements.
Learn more about QIT’s Solutions