Business Process Reengineering (BPR)

Reengineering is a drastic change in how the organization’s members to complete their work. The basic thing to do is ‘business process reengineering’, including cutting grooves that give rise to inefficiencies in the process of working or repetition. Do ‘reengineering’ means leaving the old ways of working and start again from scratch; creating a new way of working better. Some companies have implemented a new innovation paradigm is to achieve improvements in cost, quality, and efficiency. Even more companies are seeking opportunities to implement reengineering projects and methodologies that assist them in achieving the improvement efforts.

Hammer also introduced the essence and principles rengineering, include :

1. Focusing on the factors about the results (outcomes) rather than on the task, means that a company should have a carry out all steps in a process.
2. A company should establish specialized departments to handle specialized process anyway.
3. Grouping of information processing in the function that generates the information.
4. Treating four separate sources as if centralized.
5. Linking parallel activities and integrate the results. It is intended to enhance linkages between parallel functions that separate units can perform a single function.
6. Connecting the aspects of the decision to complete tasks and build in a process control system.
7. Obtaining information as well as the source.

Meanwhile, Davenport and Short (1990) as a pioneer development of BPR methodologies; He sets the framework for BPR which consists of five stages as follows :
1. Development of business vision and process objectives
2. Identification of processes that need to redesign
3. Understand and measure existing processes
4. Identification of IT capability
5. Design and create a prototype of a new process

References :
Davenport, T. & Short, J., (1990), “The New Industrial Engineering: Information Technology and Business Process Redesign” Sloan Management Review. Massachusetts Institute of Technology: Cambridge.
Hammer, M., Champy J., (1993), “Reengineering The Corporation”, New York, Harper Collins Publishers.

Business Process Improvement (BPI)

The Three Main Objectives of BPI :

1. Make the process work effectively, that is producing the desired results.
2. Make the process run efficiently, ie minimize the resources used.
3. Making process to be adaptable, that is able to adapt to the changing needs of consumers and businesses.

Reference :
Harrington, HJ, Dr., “Business Process Improvement : The Breakthrough Strategy for Total Quality Productivity and Competitiveness “, McGraw-Hill Inc., 1991.

Decision

The issue of decision-making is essentially a form of selection from a variety of alternative measures that may be selected, which is the process through specific mechanisms in the hope of producing the best decision. The decisions taken are usually made based on situational considerations, that decision was the best decision.

Decision is seen as a process because it consists of a series of related activities and not only regarded as a wise action. In other words, decision is a conclusion reached after consideration performed, which occurs after the selected one possibilities, while others are excluded. A model describing the decision making process, describe that these processes consist of three phases, namely :

1. Intelligence
This stage is the process of tracking and detection of the scope of the problems and the introduction of the problem. Data input is obtained, processed, and tested in order to identify the problem.

2. Design
This stage is the process of discovering, developing and analyzing alternative actions that could be done. This stage includes the process to understand the problem, lowering the solution and test the feasibility of the solution.

3. Choice
At this stage the process of selecting among various alternative actions that may be executed. Election results are then implemented in the decision making process.

Technology Manegement

With the Management of Technology, organizations can define an action plan to utilize technology. Successful organizations always take into account changes in technology as a strategic issue that affects the achievement of organizational strategic goals that require planning, both the medium and long term. It can be concluded that the purpose of management of technology, namely : the organization can use technology strategically, develop the technology in network management in an integrated functional and operational, and foster a competitive edge over the competition.

1. Systems are decomposable.
- Big systems can be broken into smaller ones
- But, interactions are very likely
2. Systems, environments, objectives are not static; i.e., systems evolve! Requirements are not static
3. Models should not contradict fundamental laws of nature.
4. Testing (validation) of models against basic laws of nature.
5. Scaling can be exploited to reduce the complexity.
6. Universality : different objects are described by the same model (but Never trust a Swiss Army knife model).
7. From problem to method, not vice versa.

Goal Programming

With the goal programming technique, the target or targets that are set to be approached with a minimum deviation according to their respective priorities. So today, the use of this method has been used in various fields and disciplines, such as resource planning, academic planning, financial planning and investment, transport planning and economic development planning. Application of goal programming in forestry and natural resource management, first used to analyze the forestry planning in the areas of timber production, wild animals and hunting camp for tourists.

In the Goal Programming Method, there are some basic understanding :
a. The Purpose (Objective) is a statement that reflects the decision maker wishes (maximize or minimize), can be expressed in terms of quantitative or narrative,
b. Criteria, is a measure used to express the decision-making achievement,
c. Level of Aspiration, is the value received or to refuse associated with the achievement of desired goals. This value is used to assess the level of goal achievement,
d. Target (Goal), is a purpose related to the aspiration level desired by decision makers,
e. Deviation of The Target (Goal Deviation), is the difference between the level of achievement of the targets to be achieved.

Statistical Process Control Steps

Cause and Effect Diagram

Cause and Effect Diagram Example