Business Process Re-engineering
The purpose of the BPR is to detect inefficiencies, or the causes that cause the reduction of business efficiency and identify the ideas to eliminate these causes and recover, therefore, efficiency, with the obvious economic benefits that follow. First of all, it must be said that business inefficiencies can be divided into two macro types:
- Organizational inefficiencies:
- Production inefficiencies
Excessive decomposition of the flow of value between different functions and departments, losing sight of the primary objective which is customer satisfaction Extreme fragmentation of work, with excessive specialization of the operators, lacking a global vision of the process Heaviness in the organizational structure (excessive amount of documents, authorizations and passages of responsibility) that slow down the lead time Increase in costs and timing, due to the redundancy of the activities carried out within the company The main productive inefficiencies may instead be:
- Loss of time
- Speed losses
The purpose of Business Process Reengineering is to collect data that can be useful to create an efficiency indicator (OE: Overall Efficiency) that identifies the efficiency (or efficiency) for two large business areas: production plants (OEE) and labor ( OLE). From here and with US it is possible to identify the ideas for improving efficiency and improving performance in order to recover competitiveness, without making major investments, but focusing attention on Value Added activities.