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Process Redesign / Business Process Re-engineering

The objective of Process Redesign is to radically change a business process (a group of logically related activities which, when performed, use the resources of the organization to produce a desired result) to achieve dramatic improvements.

Process Redesign begins with developing a general understanding of the current process. Next the business processes' key objectives and characteristics are documented. Work is done to fully understand the current process, including the development of activity and cycle times as well as fully documenting the process flow and various process measurements.

Once this is completed the focus of the team shifts to the future. Keeping the redesign projects key objectives and characteristics in mind, the team reviews the current process to ensure that the process is delivered in an effective (is the organization doing the right tasks or are there some tasks done which do not directly contribute to the success of this process), efficient (given that the task has to be done can it be completed in a manner that is more consistent with the general objectives (e.g. lower cost, higher quality, etc.).

Four major techniques are used to redesign a business process:
  1. Reduce activities (bureaucracy elimination, duplication of activities, elimination of non value added tasks;
  2. Change the way the result is accomplished (process simplification);
  3. Prevention of errors (standardize processing, upgrade skill);
  4. Introduce Innovation (automation, change customer-supplier relationship)