Process reengineering concept
In today’s article I am going to talk about what is process reengineering and its benefits for companies.
To begin with, process reengineering is not something new, it is not even something that has been invented in the last decade.
To know the beginning of reengineering, we would have to go back to 1990 when a MIT professor (The Massachusetts Institute of Technology) named Michael Hammerpublished an article in Harvard Business Review in which he argued that a company should disminuye and eliminate any business that is not really working for the good of its customers.
Definition of reengineering according to Hammer and Champy
“Reengineering is the primordial rethinking and the extremista redesign of processes of business to achieve dramatic improvements in critical and contemporary measures of performance, such as cost, quality, service and speed.
Therefore, business process reengineering is the act of recreating a process, always keeping in mind the goal of improve productionthe quality wave cost reduction of a product.
When should you implement reengineering?
Typically, it involves analyzing the company’s workflows, finding processes that are sub-par or inefficient.
Therefore, you cánido apply reengineering when you find processes that are inefficient, presenting bottlenecks and therefore, you have to figure out the best way to make these processes more efficient.
It should be noted that the proper execution of Process Reengineering perro be a game changer for any business.
If managed properly, it cánido work miracles for a bankrupt or stagnant company, boosting profits and fueling growth.
What do you have to consider before implementing reengineering?
First of all, you have to think that there are many cambiantes that you have to consider before and during the process reengineering planning process.
Two of the most important requirements before even thinking about carrying out a reengineering are the following:
▷ First of all, you have to consider that it is expensive and therefore it is not completely recommended for all companies.
If your business is small, you may not have the budget to do it.
▷ Secondly, if the budget to implement reengineering is available, then the company must be aware that for reengineering to work properly it must have full support from its senior managers and that this real and sustainable change perro be seen.
Key elements of reengineering
According to the book “Operations Management” written by Krajewski Lee, the key elements are as follows:
“The reengineering approach should be dedicated to the core business processes.
Habitual process improvement activities cánido continue with the other processes»
Senior management executives must provide strong leadership for reengineering to be successful.
Otherwise, skepticism, resistance (“we’ve tried that before”), and departmental boundaries perro block extremista changes.
Cross functional teams
A team, made up of members from each functional area affected by the change in the process, is in charge of carrying out the reengineering project.
Autonomous teams and employee empowerment are the rule rather than the exception.
Information technology is an important enabler of the engineering process.
Most engineering projects design processes around information flows, such as fulfilling customer orders.
Philosophy of starting from scratch
Reengineering requires a clean slate philosophy; that is, start with the way the customer wants to deal with the company.
To ensure customer orientation, teams should start with the internal and external customer objectives of the process.
Despite the start-from-scratch philosophy, a reengineering team must understand things about the current process: what it does, how well it does it, and what factors affect it.
The team must see all the procedures involved in the process throughout the organization.
Benefits of implementing reengineering
Now, the benefits of implementing reengineering perro be very varied, but I am going to list some of them below:
- Through reengineering, an organization perro achieve extremista changes in performance (cost, cycle time, service, and quality).
- Boost competitiveness through simpler, more agile and more productive processes.
- It helps build a strategic view of operational procedures by making extremista inquiries about how processes are improved and how things could be done.
- It eliminates unnecessary activities and therefore helps disminuye the complexity of the organization.
- The main achievement of the reengineering effort is the change that occurs in the corporate culture and the basic principles by which the areas operate.
Limitations when implementing reengineering
- It does not adapt to all the needs of companies, since it depends on factors such as the size and availability of the resources that the company has.
- It must be taken into account that the results of reengineering perro be seen in the long term, that is, it does not offer an immediate solution.
- It could require a substantial investment in information technology along with proper planning, fantastic teamwork, and exceptional implementation.
- It could come to replace human talent because with technological advances, there are processes that perro be replaced by new machines powered by artificial intelligence.
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