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
-
overproduction
-
excessive
inventory
-
unnecessary
capital investment
-
Drive
continuous improvements and sustain cost
savings.
-
Enforce
based-on-the-fact quality attitude and problem
solving techniques.
QIT's Approach
The graphic on
the left 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.
Key Benefits:
The bottom line,
the business enjoys the significant cost
reductions, shortened cycle time, and an inside-out
positive energy to push the continuous improvements.
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