ERP
Why BPR? ERP (BPR)
BPR ERP EDI PDM SCM CRM B 2 B
The fundamental rethinking and radical redesign of core business processes to achieve dramatic improvements in quality, cost, and cycle time (Hammer and Champy, 1993)
(Business Process) 80 IBM (Davenport et al., 1990)
(Non-Value-Added Activities)
28 26
BPR in IBM Hardware sales: $44 billions in 1990, $33.7 billions in 1992, $30.6 billions expected in end of 1993 1993 Hardware development Software development Production(Manufacturing) Information Technology Real estate and procurement Finance Sales Services Brand management Human resources Customer fulfillment development $62.7 billions revenue in 1993 $75.9 billions in 1996 Growth in service area: $7.4 billions in 1992 $9.7 billions in 1993 $15.9 billions in 1996
IBM Credit 14 5 6 45 Ford Motor1 500 125 Kodak 70 30
Process Reengineering vs. Process Ecology Engineering many engineers prefer to start from scratch in order to create clean, elegant designs. Process ecology ecology means not environmentalism, but rather a broad, multi-faceted analysis of how the different aspects of some environment relate to each other. Engineers emphasize design, ecologists focus on description of changes. Ecology emphasizes the interaction of a diverse group of organisms.
BPR (Quick Response) (empowerment) (interaction) (cross-functional)
BPR BPR
(worker) (performer) (professional) (Process owner)
v.s.
BPR v.s. TQM BPR TQM TQM BPR BPR
BPR v.s. TQM BPR R Q R Q Q Q = R =
( ) Liberty Mutual 62 15 20 15% 21 30%
( ) Amoco 750 3 250
( ) Matthew Thornton 1990 150 27 40 63,000 500 Ex. 10 200 12
Ex. Ex. HP Circuit City American Airline
(Intensification) (Extension) (Augmentation) (Conversion) (Innovation) (Diversification)
IT (Hammer, 1993)
BPR (Kim,1994) BPR (data architecture) (process architecture) (information architecture)
Business Process Modeling
(Process Model) (Modeling)
Business Process Redesign Phases The entire process occurs in an environment where change is constantly managed and the evaluation phase is not a last step, but an ongoing activity that continually refines and adjusts the new processes.
BPR Phase : Plan Ensure top leadership support and sponsorship for the project Communicate the need for change to the entire organization Define the scope and boundaries of the project Select team members who have the proper skills and attributes for the project Begin change management activities
BPR Phase : Analyze Conduct benchmarking studies Interview employees and managers and senior management Gather customer data Understand as-is processes Continue change management
BPR Phase : Design & Improve Generate new ideas and brainstorm solutions Create a vision of the ideal process Design new processes and enabling technologies Prepare cost benefit analysis Get approvals for designs from leadership Manage change
BPR Phase : Implement Complete detailed design Communicate new solutions to employees Develop a training plan Implement and manage the change
BPR Phase : Evaluate Define key measures Establish a continuous improvement program Issue final report Document knowledge and lessons learned, including change in the organization
BPR Framework BPR BPR Principles Principles G u i d e BPR BPR Process Process E n a b l e BPR BPR Methods Methods & Tools & Tools Goal Orientation Process-Orientation Define Vision & Mission Acquire As-Is System Descriptions IDEF0 Activity Value-Focus Paradigm-shift Concurrency Modularity Identify Improvement Opportunities Develop To-Be System Designs IDEF1x Data IDEF3 Proces IDEF4 Object Virtual-Resources Non-Redundancy Perform Trade-Off Analyses Develop Transition Plan ABC Simulation Model-Based Implement To-Be Systems Maintain Systems Application Generation ARIS
Meta-Model for BPR BPR Work Breakdowns Phase Task Step require create Input Deliverable are involved in apply to BPR Team Structures Role serve as Participant use BPR Methods and Tools BPR Concept and Principle BPR Method apply to supported by BPR Tool
Data Modeling Method Cost Modeling Method Process Modeling Method BPR Methods Company Goals Product Data Model Market Data Model Rough Business Process Model
BPR BPR : (animation) (activity-based costing) IDEF IDEF0 IDEF1X IDEF3 ARIS Toolset INCOME
IDEF (Integrated Computer-Aided Manufacturing ICAM) IDEF Integrated DEFinition Function Modeling IDEF
IDEF IDEF0 IDEF1 IDEF1X IDEF2 IDEF3 IDEF4 IDEF5 IDEF6 IDEF8 IDEF9 IDEF10 IDEF11 IDEF12 IDEF13 IDEF14 Function Modeling Information Modeling Data Modeling Simulation Model Design Process Description Capture Object-Oriented Design Ontology Description Capture Design Rationale Capture User Interface Modeling Scenario-Driven IS Design Implementation Architecture Modeling Information Artifact Modeling Organization Modeling Three Schema Mapping Design Network Design
IDEF0( ) IDEF0 (AS-IS) (TO-BE) (Boxes) (Arrows) (Input) (Output) (Control) (Mechanisms) IDEF0
IDEF0
IDEF1X ( ) IDEF1X IDEF1X (Entity) (Attribute) (Key) (Relationship)
IDEF1X
IDEF3( )
IDEF3
ARIS (ARchitecture of integrated Information Systems ARIS) IDS August-Wilhelm Scheer ARIS (Control) (Data) (Function) (Organization) (Requirement Definition) (Design Specification) (Implementation Description)
ARIS-HoBE(House of Business Engineering) ARIS-HoBE ( IT ) (process- oriented) BPR CPI (Continuous Process Improvement)
ARIS Modeling Method ARIS (Value Added Chain diagram) (Core Process) (Extend Event-Driven Process Chain eepc) (Element) (Function Tree)
ARIS Modeling Method
ARIS-Toolset (extended Event-driven Process Chain diagram, eepc) ARIS-Toolset(4.1 ) ARIS-Toolset
- (Organization diagram) Management Production Procurement Personnel Accounting Sales Advance production planning Procurement stock Smith Ewing Stock of Manufactured Products intermediate stock Components management Monroe Poter Apprentice Sales Planning Main Street. 22-28 Manager Sales Planning Deputy sales planning Philips John Operative eployee sales planning James Room3.1
- (Function tree) ARIS (hierarchical) Order handling Order preparation Order entry Order processing Shipping Reservation Order confirmation Invocing Inventory reservation Production schedule reservation
- (eerm diagram) customer order eerm Customer Order customer eerm (Entity) (Attribute) (Relationship) order header order item time product
- Value Added Chain Diagram (Function Trees)
(Value Chain) (Value Chain) Porter
(Event-driven Process Chain eerm (Entity type) ARIS
(Event-driven Process Chain eepc (AND) (OR) (XOR Exclusive OR) AND XOR XOR
Interview techniques ARIS Toolset ARIS Simulation
(Reference Model) 30
ARIS (Industry-Specific Reference Models) Mechanical Engineering Paper Industry Consumer Goods Industry Plant Engineering (Procedural Models) Process Oriented Implementation of SAP R/3 Business Process Engineering ISO 9000 Certification ARIS Workflow Implementation Benchmarking
SAP R/3 Reference Model EPC Visio Business Modeler(VBM) SAP Business Process Model SAP Reference Model VBM Component View Process Flow View Component View SAP (Module) Process Flow View Value Chain Scenario Process Model