Business Process Management – A Comparison Between the Change Initiative Business Process Reengineering and the Continuous Improvement Method Six Sigma

Diploma Thesis , 2010 , 93 Pages , Grade: 2.0

Business economics - Business Management, Corporate Governance

On the one hand, it is often said that the manufacturing and service companies in the industrialised countries are well organised, the business processes are well managed, so the companies are able to work effectively and efficiently. On the other hand, a lot of companies, even big corporations, have gone bankrupt over the last years, because of their confusing and inefficient business process organisation, which also led the management to take wrong decisions. So how do these two statements match? Hence it has become more important for companies, especially for those which are globally organised, to focus on their business processes to either optimise or eliminate the one which adds no value. In this context it is an important approach to find out, in what way the most important methods of BPM, BPR, and Six Sigma can help organisations to face the challenges of today’s turbulent marketplaces.

Inhaltsverzeichnis (Table of Contents)

• 1. Introduction
  • 1.1 Background
  • 1.2 Objectives
  • 1.3 Research Problem
  • 1.4 Research Relevance
  • 1.5 Research Methodology
  • 1.6 Structure of the Work
• 2. Business Process Organisation within Companies
  • 2.1 What is a Business Process?
  • 2.2 Process Hierarchies
  • 2.3 Core Competencies and Core Business Processes
  • 2.4 Development of Business Process Strategies
• 3. Change Initiative – Business Process Reengineering (BPR)
  • 3.1 Conception
  • 3.2 History and Development
  • 3.3 BPR Objectives
  • 3.4 Role of Information Technology in BPR
  • 3.5 Implementation of BPR with Regard to BPR Implementation Phases
    • 3.5.1 Defining BPR Implementation Objectives
    • 3.5.2 Identification and Selection of Processes to be Reengineered
    • 3.5.3 Understanding the Selected Processes/Process Analysis
    • 3.5.4 Redesign of the Selected Processes
    • 3.5.5 Implementation/Transformation of Redesigned Processes
• 4. Continuous Improvement – Six Sigma
  • 4.1 Conception
  • 4.2 History and Development
  • 4.3 Six Sigma Objectives
  • 4.4 Implementation of Six Sigma with Regard to DMAIC Phases/Methodology
    • 4.4.1 Define Phase
    • 4.4.2 Measure Phase
    • 4.4.3 Analyse Phase
    • 4.4.4 Improve Phase
    • 4.4.5 Control Phase
• 5. Aspects of a Combined BPR and Six Sigma Implementation in Praxis
  • 5.1 Discussion about the Improvement Methodologies
  • 5.2 Preparation: Overcome Employee Resistance
  • 5.3 Starting with the Implementation of BPR
    • 5.3.1 Challenges in Implementing BPR
    • 5.3.2 BPR Team Structure
    • 5.3.3 Changes within the Reengineered Organisation
  • 5.4 Proceeding with the Implementation of Six Sigma
    • 5.4.1 Challenges in Implementing Six Sigma
    • 5.4.2 Six Sigma Team Structure
    • 5.4.3 Realisation of a Six Sigma Organisation
• 6. Critical Analysis
  • 6.1 Arguments For and Against BPR
  • 6.2 Arguments For and Against Six Sigma

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This Bachelor thesis aims to compare two popular business process management (BPM) methodologies: Business Process Reengineering (BPR) and Six Sigma. The objective is to analyze and contrast their approaches, implementation phases, and challenges, highlighting the benefits and drawbacks of each methodology.

• Business process management (BPM) and its significance within organizations
• Comparison and contrast of BPR and Six Sigma implementation phases
• Analysis of the challenges associated with each methodology
• The role of information technology (IT) in supporting BPR and Six Sigma implementations
• The potential for combining aspects of BPR and Six Sigma to optimize business processes

Zusammenfassung der Kapitel (Chapter Summaries)

The first chapter provides an introduction to the thesis, outlining the research problem, relevance, methodology, and the structure of the work. Chapter 2 discusses the concept of business process organization within companies, defining the role of business processes, exploring process hierarchies, and examining core competencies and core business processes.

Chapter 3 focuses on Business Process Reengineering (BPR), covering its conception, history, objectives, and the role of information technology. It further explores the implementation phases of BPR, including defining implementation objectives, identifying processes to be reengineered, understanding and analyzing processes, redesigning processes, and finally, implementing the redesigned processes.

Chapter 4 delves into the concept of Continuous Improvement – Six Sigma. It covers its conception, history, objectives, and implementation phases. The implementation is explained through the DMAIC (Define, Measure, Analyze, Improve, Control) methodology, outlining each phase in detail.

Chapter 5 examines the aspects of combining BPR and Six Sigma in practice, discussing the advantages and disadvantages of each methodology. It also explores how to overcome employee resistance and navigate the challenges of implementing both BPR and Six Sigma. The chapter concludes by examining the organizational structures and changes required for successful implementations of both methodologies.

Chapter 6 provides a critical analysis of both BPR and Six Sigma, presenting arguments for and against each methodology. This chapter explores the strengths and weaknesses of each approach, considering their applicability in different business environments.

Schlüsselwörter (Keywords)

Business Process Management (BPM), Business Process Reengineering (BPR), Six Sigma, DMAIC, Continuous Improvement, Organizational Change, Implementation Challenges, Information Technology, Process Redesign, Process Analysis, Core Competencies, Core Business Processes.

• College: University of Applied Sciences Essen
• Grade: 2.0
• Author: Dipl.-Kfm. (FH), BBA Yasir Ashraf (Author)
• Publication Year: 2010
• Pages: 93
• Catalog Number: V145664
• ISBN (eBook): 9783640564514
• ISBN (Book): 9783640564859
• Language: English
• Tags: Business, Process, Management, Comparison, Between, Change, Initiative, Business, Process, Reengineering, Continuous, Improvement, Method, Sigma, Six Sigma, Prozessmanagement, Geschäftsprozessreorganisation, Prozessverbesserung, Prozessoptimierung, Change Management, Geschäftsprozessmanagement, Prozesse optimieren