Business BPR are accounts payable and mutual benefit

Topics: BusinessOrganization


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Last updated: September 26, 2019

Business processre-engineering is fundamental rethinking and radical redesign of businessprocesses, resulting from available organizational resources. It is defined byMichael Hammer and James Champy. The examples of BPR are accounts payable andmutual benefit life. All process in account payable process go to the accountpayable. After that, the account payable follow up the payment to the vendor.

There are seven principles ofBPR. Organize the results, enable the output user to process, generate thosewho process information, centralize and disseminate data, integrate parallelactivities, empower workers using internal controls and make organizationalstructure more flat, and collect data on the spot.The objectives of BPR is toestablish an efficient, healthy, and productive corporate infrastructure. Increasethe satisfaction of the goods or services so that the customer will choose thegoods or services of the company than the competitor. Make it easier and funfor customers to do business with the company. Processing more customer demandand increasing the volume of each customer. Improving the sharing andusefulness of organizational knowledge so that the organization does not dependon the expertise of just a few people.

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There are ten steps in BPR. Bureaucraticelimination, value added assessment, simplification, duplication elimination,cycle time reduction, process upgrade, standardization, languagesimplification, proofing error, supplier partnership.Tools for analysing businessprocess are value chain, value stream map, workflow diagram, flowchart, systemmatrix. It is good for knowing the best alternative with the KPI that alreadydecided before.

The concept of value chainintroduced by Michael Porter is a series of activities for the operations of acompany. Value chain includes all activities within the company with the aimthat each value chain is implemented effectively and efficiently.

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