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in both scientific management and more recently lean approaches. But BPR, unlike those two earlier approaches, advocated radical changes rather than incremental changes to processes. Shortly after Hammer’s article, other authors developed the ideas, again the majority of them stressing the importance of a radical approach to elimination of non-value-added work. This radicalism was summarized by Davenport who, when discussing the difference between BPR and continuous improvement, held that ‘Today’s firms must seek not fractional, but multiplicative levels of improvement – ten times rather than ten per cent’. BPR has been defined 8 as ‘the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed’. But there is far more to it than that. In fact, BPR was a blend of a number of ideas which had been current in operations management for some time. Lean concepts, process flow charting, critical examination in method study, operations network management and customer-focused operations all contribute to the BPR concept. It was the potential of information technologies to enable the fundamental redesign of processes, however, which acted as the catalyst in bringing these ideas together. It was the information technology that allowed radical process redesign even if many of the methods used to achieve the redesign had been explored before. For example, ‘Business Process Reengineering, although a close relative, seeks radical rather than merely continuous improvement. It escalates the effort of . . . [lean] ...and TQM to make process orientation a strategic tool and a core competence of the organization. BPR concentrates on core business processes, and uses the specific techniques within the . . . [lean] ...and TQM tool boxes as enablers, while broadening the process vision.’ 9 The main principles of BPR can be summarized in the following points. ● ● ● ● Chapter 18 Operations improvement 551 Rethink business processes in a cross-functional manner which organizes work around the natural flow of information (or materials or customers). Strive for dramatic improvements in performance by radically rethinking and redesigning the process. Have those who use the output from a process, perform the process. Check to see if all internal customers can be their own supplier rather than depending on another function in the business to supply them (which takes longer and separates out the stages in the process). Put decision points where the work is performed. Do not separate those who do the work from those who control and manage the work. Example 10 We can illustrate this idea of reorganizing (or re-engineering) around business processes through the following simple example. Figure 18.5(a) shows the traditional organization of a trading company which purchases consumer goods from several suppliers, stores them, and sells them on to retail outlets. At the heart of the operation is the warehouse which receives the goods, stores them, and packs and dispatches them when they are required by customers. Orders for more stock are placed by Purchasing which also takes charge of materials planning and stock control. Purchasing buys the goods based on a forecast which is prepared by Marketing, which takes advice from the Sales department which is processing customers’ orders. When a customer does place an order, it is the Sales department’s job to instruct the warehouse to pack and dispatch the order and tell the Finance department to invoice the customer for the goods. So, traditionally, five departments (each a micro-operation) have between them organized the flow of materials and information within the total operation. But at each interface between the departments there is the possibility of errors and miscommunication arising. Furthermore, who is responsible for looking after the customer’s needs? Currently, three separate departments all have dealings with the customer. Similarly, who is responsible for liaising with suppliers? This time two departments have contact with suppliers.
552 Part Four Improvement Figure 18.5 (a) Before and (b) after re-engineering a consumer goods trading company Eventually the company reorganized around two essential business processes. The first process (called purchasing operations) dealt with everything concerning relationships with suppliers. It was this process’s focused and unambiguous responsibility to develop good working relationships with suppliers. The other business process (called customer service operations) had total responsibility for satisfying customers’ needs. This included speaking ‘with one voice’ to the customer.
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sixth edition OperatiOns ManageMent
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Further reading in Operations Manag
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Pearson Education Limited Edinburgh
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Contents Guide to ‘operations in
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Contents ix Chapter 12 Inventory pl
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Guide to ‘operations in practice
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Guide to ‘operations in practice
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Making the most of this book and My
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Making the most of this book and My
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Preface xix Illustrations-based Ope
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To the Student . . . Making the mos
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About the authors Nigel Slack is th
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Publisher’s acknowledgements We a
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Part One INTRODUCTION This part of
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Chapter 1 Operations management 3 O
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Key operations questions Chapter 4
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Chapter 4 Process design Key questi
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88 Part Two Design Figure 4.2 The d
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90 Part Two Design Environmentally
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92 Part Two Design Figure 4.3 Diffe
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94 Part Two Design Professional ser
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96 Part Two Design Figure 4.4 Devia
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98 Part Two Design Figure 4.6 Proce
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100 Part Two Design Figure 4.8 Flow
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102 Part Two Design Given that an i
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104 Part Two Design From Little’s
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106 Part Two Design The relationshi
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108 Part Two Design Summary answers
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110 Part Two Design the grant appli
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Chapter 5 The design of products an
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114 Part Two Design hopeless lack o
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116 Part Two Design Core products a
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118 Part Two Design Figure 5.3 The
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120 Part Two Design Short case Squa
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122 Part Two Design Critical commen
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124 Part Two Design Reducing design
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126 Part Two Design Figure 5.7 A QF
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128 Part Two Design Purpose Basic f
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130 Part Two Design Interactive des
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132 Part Two Design Early conflict
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134 Part Two Design Summary answers
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136 Part Two Design similar. It was
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Chapter 6 Supply network design Key
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140 Part Two Design The supply netw
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142 Part Two Design a particularly
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144 Part Two Design and expanding o
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146 Part Two Design Figure 6.4 Offs
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148 Part Two Design Controversially
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150 Part Two Design Energy costs. O
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152 Part Two Design product and fas
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154 Part Two Design Figure 6.7 Cent
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156 Part Two Design The blue dotted
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158 Part Two Design Table 6.4 The a
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160 Part Two Design Figure 6.11 Rep
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162 Part Two Design Case study Disn
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164 Part Two Design plastic, and ap
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166 Part Two Design of a failing Di
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Supplement to Chapter 6 Forecasting
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170 Part Two Design Figure S6.2 Som
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172 Part Two Design Figure S6.3 Tim
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174 Part Two Design Table S6.3 Expo
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176 Part Two Design a comparative s
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178 Part Two Design Operations in p
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180 Part Two Design The basic layou
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182 Part Two Design In functional l
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184 Part Two Design Figure 7.5 The
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186 Part Two Design shown with thre
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188 Part Two Design Table 7.2 The a
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190 Part Two Design Combinatorial c
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192 Part Two Design The general fun
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194 Part Two Design Heuristic proce
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196 Part Two Design Figure 7.16 (a)
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198 Part Two Design the total work
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200 Part Two Design Working from th
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202 Part Two Design ● ● ● Hig
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204 Part Two Design Table 7.4 Stand
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Chapter 8 Process technology Key qu
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208 Part Two Design What is process
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210 Part Two Design be used where c
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212 Part Two Design Here we will ex
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214 Part Two Design E-business E-co
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216 Part Two Design Table 8.2 Examp
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218 Part Two Design Customer-proces
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220 Part Two Design ‘drive’ it.
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222 Part Two Design Figure 8.6 Diff
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224 Part Two Design Short case SVT
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226 Part Two Design Table 8.5 Prese
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228 Part Two Design Anticipating im
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230 Part Two Design Case study Roch
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232 Part Two Design Problems and ap
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234 Part Two Design Operations in p
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236 Part Two Design Human resource
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238 Part Two Design Table 9.2 Cause
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240 Part Two Design ● Group resou
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242 Part Two Design Job design Job
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244 Part Two Design ● ● ● ●
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246 Part Two Design Figure 9.7 A ty
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248 Part Two Design asked to contri
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250 Part Two Design ● ● ● Eff
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252 Part Two Design Table 9.3 Examp
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254 Part Two Design Qualified worke
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256 Part Two Design Case study Serv
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258 Part Two Design 3 4 5 Step 1 -
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260 Part Two Design them. This mean
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262 Part Two Design Work measuremen
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264 Part Two Design Figure S9.1 Tim
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Key operations questions Chapter 10
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Chapter 10 The nature of planning a
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270 Part Three Planning and control
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276 Part Three Make-to-stock Planni
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282 Part Three Last-in first-out se
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Chapter 12 Inventory planning and c
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Chapter 14 Enterprise resource plan
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● ● ● ● understand and beli
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The Deming Prize Chapter 20 Organiz
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Part Five CORPORATE SOCIAL RESPONSI
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Chapter 21 Operations and corporate
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Notes on chapters 653 3 Sources inc
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Notes on chapters 655 ground data:
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Notes on chapters 657 national Jour
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Glossary 659 Breakthrough improveme
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Glossary 661 Division of labour: an
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Glossary 663 Internal customers: pr
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Glossary 665 Partnership: a type of
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Glossary 667 Reliability: when appl
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Glossary 669 Transformation process
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‘blue sky’ research projects 45
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cumulative representation 317-22 cu
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failures (continued) estimates of o
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inventories (continued) de-coupling
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mitigation of ethical practice brea
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precedence diagrams 197-9, 481 prec
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esources 7-8 business continuity 59
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supply chains (continued) meaning 3
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