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Management Concept of Business Process Reengineering. What new insights does the theory yield?

Master's Thesis 2000 55 Pages

Business economics - Business Management, Corporate Governance

Excerpt

Table of Content

TABLE OF GRAPHICS

1 OBJECTIVES AND STRUCTURE

2 DEFINITION: BUSINESS PROCESS REENGINEERING
2.1 Dimension: Business
2.2 Dimension: Process
2.2.1 Core and Support Processes
2.2.2 Process Optimisation
2.2.3 Case Worker - Case Team
2.2.4 Standardisation - Triage
2.2.5 The Role of Information Technology
2.3 Dimension: Reengineering

3 DIFFERENTIATION OF BUSINESS PROCESS REENGINEERING
3.1 Business Reengineering
3.2 Total Quality Management
3.3 Lean Management
3.4 Business Process Optimisation

4 PROCESS MODEL OF BUSINESS PROCESS REENGINEERING
4.1 Requirements for Business Process Reengineering
4.1.1 Identification and assessment of business processes
4.1.2 Application of information technology
4.1.2.1 Information technology as Driver for Innovation
4.1.2.2 IT Tools for Process Design
4.1.3 Qualification of staff members
4.2 Methods for Business Process Reengineering
4.2.1 Hammer
4.2.1.1 Process Model
4.2.1.2 Project Organisation
4.2.2 Davenport
4.2.2.1 Process Model
4.2.2.2 Project Organisation
4.2.3 Assessment of the Methods of Hammer and Davenport

5 ASPECTS OF ORGANISATIONAL THEORY REGARDING BUSINESS PROCESS REENGINEERING
5.1 Boundaries of the operational organisation structure
5.2 Process Organisation
5.3 Aspects of the Organisational Behaviour

6 ASSESSMENT AND OUTLOOK
6.1 Bilance of Success
6.2 Reasons for Failure
6.3 New Developments
6.4 Conclusion

SUMMARY

LIST OF LITERATURE

Table of Graphics

Graphic 1: Process Management

Graphic 2: Process Orientation

Graphic 3: Business Reengineering and Quality Programme Objectives and Structure

1 OBJECTIVES AND STRUCTURE

The term "Business Reengineering" was coined by Michael Hammer and James Champy1 at the beginning of the 90s. A similar term was created by Jim Short and Thomas Davenport2 with "Business Process Redesign". The ideas of both management concepts are currently summarised in the term "Business Process Reengineering". Business Reengineering respective Business Process Reengineering was widely used, on the grounds of slug- gish of the American car industry and challenged to gain competition edge against Japan. Additionally the concept of Business Process Reengineering derived from practice. The authors have been working as consultants in well reputed companies (concerns) The pragmatic presentation throughout the various documentation and the transmission through management seminars led the American consultants Hammer, Champy und Davenport to a well known persons in the public.3

The objective of the theses is the outline of management concept of Busi- ness Process Reengineering. Within that scope there are the clarification of terms, the outline of process model and the classification into the existing management and organisational theory. The following questions are rea- soned- What new insights do the theory yield? What will endure, what is useful in increasing the performance of the company? Which elements of the theory are conditionally applicable and have to be considered differently and adapted or developed further?

The content of the term Process Reengineering is complex and comprises multiple layers. For that reason in second chapter the main dimensions Business, Process and Reengineering of the term will be argued. In the succeeding chapter the term Business Process Reengineering will be demarcated in relation to similar approaches.

The process model of the Business Process Reengineering will be illuminated in the fourth chapter. Herein will be pointed out which requirements have to be created in order to carry out the Business Process Reengineering project successfully. The methods will be outlined in detail and assessed on the basis of to the two most famous process models and its pertaining project organisations mentioned by Hammer and by Davenport.

The process thinking has an effect to the organisational structure. In the fifth chapter it will be pointed out how far the traditional organisation not meets the current needs. The forms of process organisation and aspects of organisational behaviour will be described in detail in this chapter.

An assessment of Business Process Reengineering, an outlook to future developments and a conclusion will be given in the last chapter.

Definition: Business Process Reengineering

In this chapter the concept of Business Process Reengineering will be set out regarding the three dimensions Business, Process and Reengineering

Business stands for the dimension of the orientation to and alignment along with new market realities of the enterprise. Process relates to the dimension of the value added thought.4 Reengineering comprises the strategy the management concept is built on.

1.1 Dimension: Business

The current companies face a worldwide competition. The globalisation of the markets forces the enterprise management to a fierce alignment to the market chances in order to achieve high yields respective margins.

The three strengths customer, competition and change have changed the business world.5 The customer requirements have tremendously increased comparing to the mass markets of the fifties, sixties and seventieth. Custom- ers expect individually treatment. That means the products and services have to be bespoken.6

Today the competition is global. In order to sustain one’s position within a global market the enterprise has to be leading related to all competition categories. The high yielding companies displace their competitors by delivering advantages in prise, quality and services.7

The speed of the technological change has dramatically increased. The production cycles have been shortened significantly.8

The customer as the demander is placed in the focus of market of goods and services and decides finally whether the produced and offered goods respec- tive Services are suitable to the market and transform into money. The goods and services have to deliver value and establish satisfaction on the customer side.

”High-quality, low cycle-time products and services are only useful if they fit the external environment and satisfy a customer demand.”9 The customer’s expectations for the product or service in terms of Purchasing (accessibility, availability etc.), Usability (functionality, reliability, endurance etc.) and Recycling (recycling, waste disposal etc.) have to be fulfilled. If the fulfilment exceeds the expectations premium prices could be realised.10

The customer satisfaction is achieved, if the three dimensions quality, time and cost are accomplished:11

Graphic 1: Process Management

illustration not visible in this excerpt

Source: with some little adaptions from GAITANIDES/SCHOLZ/VROHLINGS (1994), page 16

Quality ranges overall value creation processes including administrative activities. The goal is the production of impeccable products.

Adherence to delivery dates is deemed as paramount in assessment of customer satisfaction and customer values. The focus of time management is the cycle time.12 Time is for example at the creation of innovative products a crucial competition factor. The goal to increasing customer value is the reduction of the product development process.

Within business process reengineering the costs will be assigned to the process. So process cost transparency is established. The objective in terms of the enlargement of customer value is the process costs reducing.

Customer orientation means to take the view point of the customer.13 This will be accomplished most effectively through process orientation. ”Processes are the structure by which an organisation does what is necessary to produce value for its customers."14

The process result is measured by customer satisfaction score.

The production processes are enhanced related to its cycle time and quality. But the enhancements were not apparent by customer because bad coordina- tion of other functions. So a product can be more quickly produced but if the demand management system doesn’t work well and the good is not received earlier at the customer.15

Functional enhancements are not enough in order to make it transparent that the complete business process has been enhanced. The customer has to benefit from the process enhancement directly.

The most highly possible achievement of the customer benefit effect di- rectly the company goal, the maximisation of the profit. Customer satisfac- tion means achievement of revenue growth. When customer satisfaction sustains at midrange term it means the increasing of the capital yield. This context is expressed for the companies participating at stock market within the term "Shareholder-Value".

1.2 Dimension: Process

The substantial dimension of the concept Business Process Reengineering lies in the process thinking.

"We define a business process as a bundle of activities for that one or more different inputs are needed and that create customer value as outcome."16

Business processes are cross functional processes that start and end at customer side. Examples are:

At product development: from design to prototype, At sales: from customer request to customer order, At order management: from order to billing, At customer service: from customer request to problem solving.17

Most companies could aggregate its activities in less than twenty main processes. IBM sums up in 18, Ameritech 15, Xerox 14 and Dow Chemical 9 identified main processes.18 Texas Instruments, a four billion US$ revenue company, can be described with six business processes.19

Cross functional processes are horizontal aligned. They are running across the functional aligned organisational units. The vertical view of the func- tional organisation is supplemented respective replaced by a horizontal viewing direction.

1.2.1 Core and Support Processes

The processes can be divided in core processes and support processes. Core processes are these processes which create directly customer value. The output of these processes is apparent and has an effect on the customer satis- faction.

The core processes are similarly outcome of the internal competence of the enterprise (know-how, process engineering, human resources, resources, market knowledge, market relations and so forth). The competence of the enterprise is difficult to imitate respective to replace. For that reason these competence is named core competence.20

The crucial point for reaching business success is the bundling of forces in order to achieve efficient core processes. The core processes are designed from the customer point of view. The process definition and process imple- mentation have to be target oriented. The objective is to increase customer value. For example „service offering process“ or „order fulfilment process“ are core competences.

Support processes are processes that support the core processes. They can be regarded as support activities which do not immediately create customer value. Examples are "coaching employees", "ensuring cash flow“ or "ensuring information management".21

In terms of Business Process Reengineering the core processes are the focal point for the redesign since they affect the market.

The demander of the support processes are solely internal organisational units.22 The supporting processes are subjects for outsourcing or for the use of standardised systems (make or buy decision). The introduction of standard software for business administration is a typical decision in order to get more efficiency at the support process. Thereby it is assumed that regarding the support processes only little core competence is applied and therefore only little difference potential to the competition exists.

1.2.2 Process Optimisation

The process oriented value creation is the centre of Business Process Reengineering. It is distinguished by significant efficiency advantages in comparison to functional oriented work organisation structure.23 Due to reduction in the amount of interfaces interface problems occur more seldom. Typical interface problems are misunderstandings, information deficit or conflicts in interests.24

The cycle time, the time needed to carry out a designed process, is reduced in reducing the waiting time and idle period which occur at the functional work structure.25 Synchronisation of processes and simultaneous processing are the goal of Business Process Reengineering.26 During process design stage unnecessary work process steps are eliminated. The elimination of non-productive process steps shortens the cycle time and enhances the effi-ciency.27

The triangle cost, time and quality determines the process performance (see picture 3, page 3).

The process evaluation is not confined to the own company. It will extend to the supplier and to the final customer as far as an increased process effi- ciency for all involved partners yields additional benefit. The complete value chain, including pre-located processes at supplier site and post-located processes at the customer site will be integrated in the Business Process Reengineering. The target is to achieve dramatic cost reduction, quality im- provement and shorting of cycle time by reducing interface problems and due to improved coordination likewise in the own organisation.28 Examples are just-in-time production, factoring and mutual quality circles.

The three following components case worker respective case teams, standardisation / triage and information technology are the key elements in process improvement.

1.2.3 Case Worker - Case Team

The separated positions and tasks of the functional oriented organisation will be concentrated and reintegrated at an unique work place. A process should be carried out from beginning to the end by a sole person. The person is called „Case Worker“.29

The Case Worker is responsible for the whole process. He has the compe- tence to decide autonomously how the process should be accomplished. For process performing the Case Worker uses the functional staff. So coordina- tion efforts and conflicts regarding area of responsibility should be avoided.

If the process is large and it is not possible that the process is done by a sole person instead of the Case Worker the Case Team will do it. The team is an autonomous work group and is organising itself.30

If the process is complex a Case Manager will be put in place. The complex- ity and the breakdown structure do not allow that a sole Case Team is able to perform the process. Rather there is a need for different Case Teams. The Case Manager acts as buffer between complex business processes and the customer.31

The advantage of the integrated processes derives from elimination of the transition procedures. This results in the reduction of errors, delays and rework. The processes are normally up to ten times faster than the preceding fragmented process execution.32 The general and administrative costs could be reduced since there is less effort for supervision and control.

In order to implement a successful case management the following precon- ditions have to be accomplished. The role of the Case Manager has to be extended with power in order to make decisions and resolve customer prob- lems.33 The Case Manager should be enabled to get access to all information from all company departments34. The Case Manager has to be placed into the organisational structure between the different functional organisation units or he is placed into a matrix organisation.

To accomplish the tasks of the Case Worker and Case Team there are ac- cording to its high responsibility high ranking technical and personal skills required. Self responsible acting, process understanding, quality conscious- ness, good communication skills and so forth are basic prerequisites for the fulfilment of the tasks.35

In order to gain and to motivate the Case Workers durably for the responsi- ble positions it is necessary to set up remuneration, promotion and incentive systems.

Criteria for a successful remuneration system are the goals achieved in terms of Business Process Reengineering. The increasing of customer value will be the measure criteria for remuneration and supplement incentives.36

1.2.4 Standardisation - Triage

A result of the process analysis is the identification of processes with a high degree in standardisation. Some processes remain which have to be proc- essed according its situational circumstances since they cannot be standard- ised. On one side the main part of the processes should be standardised in order to retain the costs as little as possible. On the other side the different requirement of the market have to be considered. The customer asks for several variants of the same product. The new processes have to achieve the advantages of large amounts as they are gained in the mass production ("economy of scale") and simultaneously they have to offer a multiple range of variants.37

There will be a segmentation of processes in process variants. With it aside of standardised processes there are room for deviations. The control of quality, cycle time and costs can be carried out more efficiently. The advantages of the concept of triage should be implemented.38

The existing processes are analysed and evaluated. The normal processes can be processed as a standard process by the Case Workers. Cases with high complexity will be separated from the routine and forwarded to the subject matter experts. The differentiator for the segmentation of the proc- esses can be the degree of complexity, the target customer, order volume, risks and further more. The benefit of the principle of case segregation is the increased process performance indicated in fast process flow, high quality, low costs in relation to the simple cases respective routine processes. Con- sequently the amount of difficult cases which are solved by specialists has to be minimised. The effect is that only a relatively small amount of special- ists have to be sustained while keeping a large amount of Case workers for routine work.

1.2.5 The Role of Information Technology

Business Process Reengineering has only become possible with the progress in information technology (IT). The latter plays a bearing role in the conception and implementation of the business processes.

An efficient process management is based on a enterprise wide available data base and IT systems supporting the processes. Business Process Reengineering means to utilise information technology for innovation.

The question can be asked, what new things can we do with this technology?39 A mere computerisation of existing processes in terms of the automation doesn’t create essential enhancements.40

Some examples show the various possibilities in creation of work environ- ment through the recent information technology. The data base technology enables simultaneous access of the same information for the process partici- pants. Thereby a process is getting free from the constraint of an artificial sequence in the proceeding.41 Likewise interface problems can be reduced by in common used data.

A cross functional integration of the work flows is enabled.

Information flows accelerate by electronic mail systems inside and outside the enterprise. A decentralisation by means of work places at any locations comes along with a centralisation.42 Field staff is able to work remote while remains linked to the central office.

Virtual teams can be built up independently from any location of the team members. Group ware and network systems enable the permanent mutual communication. Thereby the efficiency of the team work can be significant enhanced.

The access to expertise through expert systems extends the consultancy spectrum of the Case Worker. Expert systems assist to the decision proc- ess.43

The Case Workers are provided with widely decision competences in order to react quickly to market requirements. Through analyses and model build- ing systems decisions can be meet faster and problems can be resolved di- rectly.44

1.3 Dimension: Reengineering

The dimension "Reengineering" coins the complete approach of Business Process Reengineering. In the beginning the company strategy is put into question. It is proved whether the right thing is been done.45 The renewal (Reengineering) can be related to the company objectives, to the at the market offered products and services, to the business processes as well as the operational and organisational structure of the organisation.

Reengineering that means the radical rebuilding of the enterprise organisa- tion and business processes of the company. The organisational structure will be broken up and the process flows will be renewed. The enterprise organisation will be submitted to a far-reaching process oriented Reorgani- sation.46

This renewal in terms of reengineering can imply a radical disruption with the past. The company can be rebuilt totally. Improvements of magnitude require destruction of the old and buildup of the new.47 The fundamental change of the organisational structure is part of the radical demand of the concept of Business Process Reengineering.

The term "Engineering" indicates that various methods from technical engineering are applied to the process redesign. At the operational level quantitative measureable input and output parameters are needed in order to build up improved process design.

The goal of Business Process Reengineering is not a rationalisation of the business process in terms of "faster, better, cheaper. It deems rather to un- dertake a new alignment of the business (Reengineering) thereby the enter- prise will be enabled to build up sustainable competition advantages over its competitors.48

Differentiation of Business Process Reengineering

1.4 Business Reengineering

Business Reengineering means the fundamental rethink of the business pur- pose of the company. The core of Business Reengineering is the discontinu- ous thinking. The rules and basic assumptions of the current business activi- ties were radically put into question49. A new approach for the essential ob- jectives of the company is intended in order to reach substantial economical improvements. In doing so the “zero approach” is taken50 that means it will be started with a "white paper approach". Business Reengineering trigger an organisational revolution, in order to gain the needed quantum leaps. A principle redesign of the enterprise is deemed as a program.

In contrast to Business Reengineering within the scope of Business Process Reengineering the redesign confines to the processes of the company. The business objective and the products and services offerings will not be changed basically.

1.5 Total Quality Management

The basi concept of Total Quality Management is continuously improve-ment. The objective is the quality improvement of the business processes. The quality will be measured according to customer satisfaction.

An essential measurement in between a Total Quality Management program is the training of the staff, in order to increase the quality awareness enter- prise wide. The goal of the quality program are the avoiding of errors (zero failure principle), the improved communication among staff members and in relation to suppliers respective to customers and increasing of self responsi- bility.51

A further part of the basic concept is the improvement of the customer and supplier relationship. Both are included in the process of Total Quality Management. The approach produces incremental improvement being strived for continuously. The principle of constant improvement by little steps prevails. In Japan this is known as "Kaizen".52

The common approach of Business Process Reengineering and Total Quality Management lies in the process orientation and the customer focus.53 An quality assurance system is a component of Total Quality Management and is applied to processes.54

The difference of Total Quality Management and Business Process Reengi- neering can be found in the target definition and in the procedure model. Business Process Reengineering wants to reach quantum leaps through radi- cal process redesign. Total Quality Management wants to improve business processes by means of little steps over a long period.55 The focal point lies on the process improvement through increasing of efficiency and effec- tively. The goal is to do the same work as currently but at a higher quality level.56 In doing so the existing structures and processes are not put into question. In contrast Business Process Reengineering includes the reshaping of operational and organisational structures. Each newly developed process should pass over multiple organisational borders in order to reach a signifi- cant change.57

The approach of Business Process Reengineering is "top-down", while the approach of Total Quality Management is "bottom-up". Business Process Reengineering is initiated by the management board within the scope of the strategically planning. During the design stage the workforce is not in- volved. In contrast Total Quality Management involves at an early time the staff members.

Within the scope of Total Quality Management the existing processes will be analysed in detail in contrast within the scope of Business Process Reengineering there is only a need to understand the core processes.58

Business Reengineering distinguishes from the quality movement through a different approach to the change management.59

1.6 Lean Management

Lean Management was getting known 1990 by the MIT study von Womack/Jones/ Roos.60 The objective of Lean Management is to leverage the productivity significantly.61 The enterprise organisation is flat that means it ha less hierarchical levels short decision paths. The staff members work in teams and do organise themselves widely.62

Project management is a integrative component of the lean management. The project leader possesses enough power to enable an effective cross function collaboration. 63

By means of focussing on core competences 64 an increased quality and a cost-efficient production is achieved. Services which can be delivered ex- ternal without compromising quality and with cost advantage will be or- dered to suppliers (Outsourcing). The functional departments will be aligned to the market requirements and to the customer wishes. The product ori- ented parallelisation of the complete value chain reduces interfaces und er- ror-prone circumstances. Customers and suppliers65 Strategies of Lean Management are standardisation of production processes, efficient con- sumption of operating resources, reducing of store, continuous improvement process66, process orientation and staff qualification.

The employee is regarded as the essential bearer of Lean Management. Through the creation of team work (for example production islands, partly autonomous teams)67 with widely reaching decision competences the mem- ber staff motivation is increased and thereby the production efficiency. 68

The fundamental difference of Lean Management to Business Process Re- engineering is the focus of Lean Management to the physical production process. In contrast all enterprise processes are applied independently from the physical production process at the concept of Business Process Reengi- neering. Furthermore Business Process Reengineering puts the company structures fundamentally into question. Lean Management in contrast con- siders solely the change related to the product orientation. This reshaping is principally not so radical as the reorganisation of company structures.

Common are in both approaches of Lean Management and Business Process Reengineering the process and customer orientation and the strong involve- ment of the employee into the provision of deliverables. Both concepts are coined by an integrative approach embracing all essential fields (organisa- tion, process optimisation, qualification of employees) and measures taken short term, midrange term and long range term effects (strategically, tacti-cally, operative target definition). From the organisational perspective the approaches differentiate gradually. They are varieties of the same organisa-tion philosophy and can be summarized into the term "market aligned de-centralisation".69 Both ideas complement each other, because Business Process Reengineering focuses on business process, Lean Management fo-cuses on the physical value creation process (production).

[...]


1 cp. HAMMER/CHAMPY (1996).

2 cp. DAVENPORT (1993).

3 Michael Hammer war 1990 Professor am Massachusetts Institute of Technology (MIT); Thomas Davenport Berater bei Ernst & Young im Center of Information Technology.

4 cp. MAJER/NACHBAGAUER (1999), page 466.

5 cp. HAMMER/CHAMPY (1996), page 30.

6 cp. HAMMER/CHAMPY (1996), page 34.

7 cp. HAMMER/CHAMPY (1996), page 35.

8 cp. HAMMER/CHAMPY (1996), page 37.

9 DAVENPORT (1993), page 116.

10 cp. GAITANIDES/SCHOLZ/VROHLINGS (1994), page 13.

11 cp. GAITANIDES/SCHOLZ/VROHLINGS (1994), page 14.

12 The cycle time is compost of working time, transfer time and waiting time. An indicatory value is the relation of working time and total cycle time. This relation should be from 1:10 to 1:30, cp. GAITANIDES/SCHOLZ/VROHLINGS (1994), page 15.

13 Consequent customer orientation means: "Only this is important for which the customer is willing to pay for.", HOPFENBECK (1997), page 574.

14 DAVENPORT (1993), page 7.

15 DAVENPORT (1993), page 9.

16 HAMMER/CHAMPY (1996), page 52.

17 cp. HAMMER/CHAMPY (1996), page 154.

18 DAVENPORT (1993), page 7.

19 cp. HAMMER/CHAMPY (1996), page 154.

20 cp. STAEHLE (1999), page 899.

21 cp. GAITANIDES/SCHOLZ/VROHLINGS (1994), page 17.

22 cp. GAITANIDES/SCHOLZ/VROHLINGS (1994), page 18.

23 cp. HAMMER/CHAMPY (1996), page 43.

24 The process of order management is prone of errors, since many persons are working independently at the same process. cp. HAMMER/CHAMPY (1996), page 42.

25 Within order management there are at least nine handover points resulting in waiting queues, stacks and lay time, cp. HAMMER/CHAMPY (1996), page 42.

26 So the parallelisation of the processes is demanded within the scope of simultaneous engineering. cp. THEUVSEN (1997), page 108.

27 There are possibilities of the process improvements along with value creation chain as time competition, cp. KLEPZIG/SCHMIDT (1997), page 64 and 65.

28 cp. FERK (1996), page 68-69.

29 cp. HAMMER/CHAMPY (1996), page 72.

30 See teamwork in. STEINMANN/SCHREYÖGG (1993), page 495.

31 for example. a customer service manager represents the interface to the customer for the topic services, cp. HAMMER/CHAMPY (1996) page 73 and page 86.

32 cp. HAMMER/CHAMPY (1996), page 74.

33 cp. HAMMER/CHAMPY (1996), page 75.

34 cp. HAMMER/CHAMPY (1996), page 86.

35 cp. HAMMER/CHAMPY (1996), page 98.

36 cp. HAMMER/CHAMPY (1996), page 100-101.

37 cp. HAMMER/CHAMPY (1996), page 77.

38 Triage: "...an approach to determine the variant which is the best to fit for the given situa- tion". HAMMER/CHAMPY (1996), page 77. An example is the process division real estate financing according to the volume of the credit along with the quote of securities in three process variants which each covers 75%, 15% and 10% of the cases, cp. SCHMIDT (1995) page 71.

39 cp. HAMMER/CHAMPY (1996), page 114.

40 Ati IBM Credit a computerisation of the existing process would have generated a ten percentage improvement. A ninty percentage improvement was achieved through Business Process Reengineering, cp. HAMMER/CHAMPY (1996), page 113.

41 A clerk can calculate the prime of an insurance while at the same time another clerk can prove the creditworthiness. Both use at the same time the same data record of the customer,. cp. HAMMER/CHAMPY (1996), page 123.

42 cp. HAMMER/CHAMPY (1996), page 124.

43 At a chemical company by means of a team of experts customer service consultants are enabled to offer alternative products which prior only could be offered by the best consultants. cp. HAMMER/CHAMPY (1996), page 124.

44 cp. HAMMER/CHAMPY (1996), page 127.

45 cp. SCHMIDT (1996), page 67.

46 cp. GAITANIDES/SCHOLZ/VROHLINGS (1994), page 4.

47 HAMMER/CHAMPY (1996), page 50.

48 Objectives of the redesign using for example a catering company, cp. OSTERLOH/FROST (1997), page 97.

49 cp. HAMMER/CHAMPY (1996), page 13.

50 cp. "Zero-Base Budgeting" here it is started at zero that means all prior assumptions are pushed away and the budgeting starts from scratch. Within Business Reengineering the question is asked: "If I have to start this company today based on my current knowledge and the current technique, how it will be look like?" HAMMER/CHAMPY (1996), page 47.

51 cp. HOPFENBECK (1997), page572-573.

52 cp. HOPFENBECK (1997), page572.

53 HAMMER/STANTON, 1995, page 133.

54 ISO 9001 to 9004 certifications can be issued after successful audits, cp. SCHMIDT (1995), page 347.

55 cp. HAMMER/STANTON (1995), page 133.

56 cp. HAMMER/CHAMPY (1996), page 69.

57 cp. HAMMER/STANTON (1995), page 40.

58 cp. HAMMER/STANTON (1995), page 43.

59 cp. HAMMER/CHAMPY (1996), page 69.

60 cp. THEUVSEN (1997), page 103.

61 "Lean" means reducing staff, production area, time to develop new products and further more. The lean production reveals at the car production at Toyota. At Japanese factories the productivity lies at 17 (Std./Auto) , while it was 25 at American factories and at European at 36, cp. HOPFENBECK (1997), page 561.

62 At the Japanese factories 69 persons are working in teams, while at American are working 17 and at European 0,6. cp. HOPFENBECK (1997), page 561.

63 cp. SCHMIDT (1995), page 357.

64 Core competence means the integration of skills and technologies with the target to create visible customer benefit. cp. HOPFENBECK (1997), page 561-562.

65 At Toyota suppliers were integrated into the product development process but Toyota doesn’ t integrate them vertically within the creation value chain to diminish transaction costs. Instead of the integration "Just-In-Time" systems were launched. cp. CLARKE/CLEGG (1999), page 246.

66 The concept of Total Quality Management are elements of Lean Management.

67 Often cited examples are the practical proved reorganisation processes respective work organisational experiments within the production at Volvo and General Foods Corp. in Kansas in the 70s. General Foods transferred all production work to working teams with 7 to 14 staff members. The teams were got along without a super ordinate. cp. STAEHLE (1999), page 723. At Volvo in 1973 the production was restructured from assembly line to a working group system. The autonomous groups were composed of 15-25 employees. Each group takes over one coherent working task. Thereby each group takes responsibility of material provision, quality assurance, and maintenance. cp. STEINMANN/SCHREYÖGG (1993), page 495. The intensity of the value creation interweavement within the production is increasing (segmentation of production). cp. THEUVSEN (1997), page 106.

68 An indicator showing this is the amount of the improvement suggestions submitted by staff members. The amount per employee is 62 in Japanese factories, in Amerikan and Eurpean 0,4. cp. HOPFENBECK (1997) page 561.

69 cp. THEUVSEN (1997), page 112. According Theuvsen Lean Management is the broader ranged management concept in comparision to Business Reengineering, since it can be applied within all areas and activities of the company. cp. THEUVSEN (1997), page 113.

Details

Pages
55
Year
2000
ISBN (eBook)
9783668168800
ISBN (Book)
9783668168817
File size
554 KB
Language
English
Catalog Number
v317776
Institution / College
University Of Wales Institute, Cardiff
Tags
Business Process Reengineering Quality Management

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Title: Management Concept of Business Process Reengineering. What new insights does the theory yield?