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.
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
7. Conclusion and Outlook
7.1 Results of the Work
7.2 Future Research Direction
Objectives and Research Focus
The primary objective of this thesis is to examine the implementation of Business Process Reengineering (BPR) and Six Sigma as distinct but potentially complementary methodologies. The work explores how these frameworks can be utilized within business processes to improve organizational performance, address competitive market challenges, and facilitate long-term process solutions through a combined application.
- Theoretical foundation and practical implementation of BPR.
- Methodological application of Six Sigma using the DMAIC cycle.
- Identification of implementation challenges and organizational resistance.
- Critical comparison of radical change versus continuous improvement.
- Development of a strategy for the combined application of both methodologies.
Excerpt from the Book
3.1 Conception
BPR is a managerial practice or approach and can be well understood as a change initiative, which can improve organisations’ performance through redefining business processes within organisations by ignoring the history and starting from scratch. The most common and widespread definition of BPR is as follows: it is a process or a methodology of “… the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measure of performance, such as cost, quality, service, and speed”.
The above mentioned quotation includes all the essential characteristics of BPR. The key word “fundamental rethinking” describes the beginning implementation steps of BPR. Fundamental rethinking is about analysing the existing business processes and the attempt to find out what the organisation is doing and why e.g. a specific process is performed in a certain way. Hence it emphasises to focus on process inputs, activities, and outputs. This first step is primarily necessary to filter out the outdated, inefficient, less value adding, and completely unnecessary procedures, particularly business processes.
The second key word in the reengineering definition is “radical redesign” which emphasises that for the implementation of BPR, there have to be taken steps for revolutionary changes in business processes. Furthermore, it shows that BPR is not a process of modification but a process of reinvention.
Summary of Chapters
1. Introduction: Outlines the background of Business Process Management and the relevance of BPR and Six Sigma in today's competitive market.
2. Business Process Organisation within Companies: Defines business processes and explores process hierarchies, core competencies, and the development of strategies.
3. Change Initiative – Business Process Reengineering (BPR): Explores the conceptual framework, history, and the five-phase implementation process of BPR.
4. Continuous Improvement – Six Sigma: Details the Six Sigma methodology, its history, and the practical application of the DMAIC cycle.
5. Aspects of a Combined BPR and Six Sigma Implementation in Praxis: Discusses the integration of both methodologies, including team structures and challenges such as employee resistance.
6. Critical Analysis: Provides a comparative examination of the arguments for and against both BPR and Six Sigma.
7. Conclusion and Outlook: Synthesizes the results of the research and identifies directions for future studies.
Keywords
Business Process Management, Business Process Reengineering, Six Sigma, DMAIC, Process Improvement, Radical Redesign, Continuous Improvement, Customer Satisfaction, Operational Efficiency, Change Management, Implementation Challenges, Process Hierarchy, Organizational Performance, Data-driven Improvement, Strategic Planning.
Frequently Asked Questions
What is the core focus of this thesis?
The thesis focuses on the comparative study and potential combination of two major process improvement methodologies: the radical change initiative BPR and the continuous improvement approach Six Sigma.
What are the central themes of the work?
The central themes include the definitions, implementation phases, comparative benefits, and practical challenges associated with BPR and Six Sigma in an organizational context.
What is the primary objective or research question?
The primary research goal is to describe how BPR and Six Sigma can be implemented within business processes and how a combined implementation can be structured to provide long-term benefits.
Which scientific methodology is used?
The research relies on a literature-based methodology, analyzing existing business theories, academic articles, empirical studies, and industry-specific practical examples.
What is covered in the main section?
The main section covers the theoretical aspects, implementation frameworks (such as DMAIC), team structures, and a critical analysis of the advantages and disadvantages of both methods.
Which keywords characterize this work?
Key terms include Business Process Reengineering, Six Sigma, DMAIC, process organization, and organizational change management.
Why should organizations consider combining BPR and Six Sigma?
Combining them allows organizations to benefit from the radical transformation of BPR to solve critical problems while utilizing the Six Sigma continuous improvement cycle to maintain long-term performance gains.
What role does IT play in BPR?
Information Technology acts as a fundamental enabler that allows companies to rethink existing processes rather than just automating them, facilitating better communication and decision-making.
How is the DMAIC cycle used in Six Sigma?
The DMAIC cycle (Define, Measure, Analyse, Improve, Control) serves as a systematic roadmap for Six Sigma projects to identify root causes and ensure sustainable process improvement.
What are the main risks identified when implementing these methodologies?
Common risks include high failure rates, employee resistance due to fear of job loss, significant financial investment requirements, and lack of commitment from leadership.
- Quote paper
- Dipl.-Kfm. (FH), BBA Yasir Ashraf (Author), 2010, Business Process Management – A Comparison Between the Change Initiative Business Process Reengineering and the Continuous Improvement Method Six Sigma, Munich, GRIN Verlag, https://www.grin.com/document/145664
