3rd DAAAM International Conference on
Advanced Technologies for Developing Countries
- ATDC’04
June 23-26, 2004
Split, Croatia
ATDC'04
METHODOLOGY REENGINEERING BUSINESS PROCESS
Zoran Milanović, Ivica Veža and Nikola Letilović
Abstract
Into a today world globally market, modern informational and telecommunications technology,
result is to big modification into a way do business. The product and service gets wholly new meaning
and dimensions, and in accordance with them change respect toward last user, toward own employeers,
and change respect toward production. Because of the the said change, company need some
modification such us reorganize production system, if that company want survive in modern market.
One of possibility ways is reengineering business process, and in practice is represent methodology
reengineering business process.
1.
Introduction
Real-life organizations structure into a large company and corporation hardly may do with
consumer satisfied, and slowly reaction on their desire and change which are occur on the market, and
that mean to are biggest and nethermost change of course necessarily into a area manipulation and
management on all level.
To satisfied request customer for some the product or service organization must be execute
consequent activities in order to create that product (service) with minimum expense commerce, with
large profit, on satisfied workers. Then, commercial process must be in-depth elaboration, stable,
adaptive each request customer, i.e. must be effective.
For resumption such target necessarily is into a company know flow business process, theirs
internal rule and validity, and way on which be exactly that may describe accept all detail which
influence on flow business process, over wherefore we have accept about often presence dual business
orientation company in which with one side do we have core business on at the same time outsourcing
of all possible rest activities for which is company favourably to buy of company which produce that
like us core business.
Essential, it very important to have wholly clear conception business process in some company,
whereby via unquestionably graphically languages escape obstruction toward obviously one business
process. Obstruction result mostly because of the various aspect view on the same process, and
because of the various adeptly segment. Scheer [2] sets new standard for the action control business
process which contain the following segment:
 constantly method enhancements,
 initiation calculation efficiency and profitably for standard software,
 hasten process in relation with opposition,
 analysis weakly points in the case present to the view tight throttle into a process work,
 initiation control into a work process,
 collecting information for estimation cost work process.
Tool expression exactly real-time for which yourself may somewhat create without separately
effort. Adaptability valuetion and target this approach give ideally solution for all company which
work agreeably with process and which want constantly improve standard servisne equipped.
2. Reengineering business process
Notion business process reengineering (BPR) is first set in year 1990. in one article write from
Michael Hammer [1] and publish in Harvard Business Review. Into a year 1993. Michael Hammer and
James Champy [1] publish the book with caption: ”Reengineering the Corporation – A Manifesto for
Business Review" where method BPR define on the following way:"Reengineering business process is
change thinking and remodel business process with target improvement key parameter of business like
us: product quality, services hasten and business expenses”.
Method BPR occur like mood solving problem into a organization like logical answer on
difficulties which sets modern market, his dynamic and acquiring. Modification into a company never
come without reason and mostly are cause crisis situation whether format (crisis liquidness, crisis
result, negative trend reality in relation with expectance profit, strategic crisis and similar). Minimum
visible crisis is strategic crisis, whereby in despite of currently good situation with profit can indication
crisis which we have be capable recognize and eliminate duly. These indication are recognizable over
dissatisfaction clients, decline interest on the market, low quality the products, and into a business
process over frequently mistakes, over overdue reactions, over making tight throttles, over indefinitely
flow over business process. Elaborate and implementation project method BPR can obtain the
following enhancements:
 enhancement quality proizvoda/service,
 shorten time from entry to exit,
 bigger satisfaction kupaca/client,
 bigger satisfaction employees,
 priority in relation with opposition,
 bigger profit company,
 decrease expense operate.
Fundamental target reengineering each commercial process is obtain high-quality finally
products (services) on less expenses, and capital notion which ties on method BPR are processes and
modifications.
2.1 Basis starting-point and main features reengineering business process
Basic starting-point reengineering business process is process access, i.e evolution process
orientation into a company whose are attribute the following:
 transaction phase into a process naturally, logical and rationalization precedence,
 knowledge to process have more ways in which can execute,
 transaction business where for it has a mostly meaning,
 attempt to more businesses make one business,
 include all employees into a process decision,
 decrease classic format control.
The following basic starting-point of method BPR is orientation on base – main function and
setting highly target which reengineering business process want realize.
Basic features of method BPR are the following:
 basis variation way thinking
Understand return to basis thinking about process which lead into a some company.
 completly or total new define business process
In this case not practice improve established business process than him totally leave and
evolution modern process organization.
 drastic change
Here understand change result by method BPR on established business process, which are such
character to expect big improve into a business result area.
 orientation toward process, and not toward structure or function
Method BPR starting from thinking that are men basis organizations and hers most important
resource, and that their knowledge and experience is necessarily into a new design business process.
Process does watch entirely and leave individually view on the product which accrue like result all
process into a company. Method BPR set-off significance team work, good communications, and
significance change into a way thinking all employees into a meaning an unlimited into a review full
process.
2.2 Phase reengineering business process
Reengineering business process does lead into a few phase [3] (figure 1.):
Define vision and strategy:
 define process which is necessarily redesign,
 define priority and order redesign,
 define targets method BPR .
In this phase must be completely clearly define which does improve want obtain with method
BPR (shorten time from entry to exit, new the product, decrease expense business…)
(II) Conceptual shema of development method BPR:
 elaborate business process organizations (AS – IS analysis),
 consider possibility solve,
 TO – BE conception,
 simulation AS – IS and TO – BE conception.
After elaborate AS – IS analysis, in this phase is very easy practicable comparison with other
business organizations (benchmarking) which does to work at same function. Also can exactly define
our finally set up targets and wishes.
III) Implementation method BPR:
 preparation and lesson employees on future state,
 presentation redesign business process,
 adaptation modifications,
 feedback information about result modification.
IV) Watch redesign business process:
 measurement organizations modification,
 analysis organizations modification.
I)
Vision and
strategy
Conceptual
plan
Implementation
method BPR
Watch redesign
business
process
Figure 1. Show phase reenginering business process
Presentation method BPR in company often is necessary modify or totally leave traditional vertical
hierarchical structure. Reengineering business process execute redesign established or presentation
completely new business process with target enhancements of all possible component business, on
exact information which may obtain and watch in each moment simulation really business process.
2.3 Business process
In each present-day company does have to manipulate business process on way to with easiness
can see problem, to duly can reaction on mistake, and to can presentation necessarily enhancements.
To make this we have completely clear review business process and completely control over their
manipulation, i.e. necessarily would be necessarily:
 exactly define process,
 constantly manage process,
 improve noneffective process,
 provide realization modification.
As they in all business organization not exist on all level identical consciousness about totality
process, often do we have presence nonflexibility in certain segment business process, and as result
this phenomenon and aggravating adoption certain modification which give answer on the following
question:
 about feature business process,
 about tight throttle business process,
 about potentially for improve,
 about necessarily personal resource,
 about uniformity load between personal resource,
 about conection between whole database.
Prerequisite for obtain quality answer on mentioned question is initiation simply, and for all
obvious model for description business process. Essentially, necessarily is leave traditionally vertical –
hierarchy structure and substitute is with process organization which insist horizontality connection
activities which execute whereby represent figure 2.
Managem ent
Organizational unit
Organizational unit
Organizational unit
Pos ition type
Pos ition type
Pos ition type
Pos ition type
Pos ition type
Pos ition type
Pos ition type
Pos ition type
Pos ition type
Pos ition type
Pos ition type
Pos ition type
Figure 2. Represent process through section
Process organization does base on following working or business process as a criterion for
forming organization unit or working team, instead on business function. On this way employees unite
according to process until function hierarchy care for untroubled flow over process. For operation
process responsible is master process, and employees from certain business function exceed in process
teams which execute concrete business function in a particular business process.
Process organization structure personify process and team orientate organization inside which
does show great number simple processes that are focusing on unite execute function particular
business process.
2.4 Modeling business process
First step at manipulate production process is their document, and choice work methodology,
medium and tool which would it execute. Here will it be apply tool under name ARIS [2,3], and
modeling will it be performance into a few phase thus:
 reconsideration and modeling organization structure,
 reconsideration and modeling business process (AS - IS).
Method top down lowering to level smallest detail model business process.
 versification business process,
 see tight throttle by simulation,
 modeling improve business process (TO - BE).
Model established state necessarly have to be really, clearly and easily to be surveyed, because
thus may see and decline much illogicality and previous any reorganization company, i.e can improve
established state, and such improve model does can define in phase make model established state.
After to establish good database business process and visual assign weak point in process, necessarily
is realize analysis business process on way to proceed certain measurement. Exactly answer about
efficiency process, its weak point and tight throttle, and about expense operate, load employee and
similar, give would us simulation which will it be really if we are detailed elaborate business process.
2.5 Kind description business process
Such as already mention, to understand business process necessarily is describe and document
them precision and simply. Have more possibilities expression business process and it thus:
 text expression,
 cybernetics expression,
 network diagram,
 process diagram (flowchart).
Text expression is with complexly process and very impractical,vast and complicated in
practice. Often does use in combination with process diagram at detailed description certain function
and event in business process.
Cybernetics expression is figurative expression in which each process has a its input and exit,
and between them occur certain activities which work men to use some method and equipment.
Network diagram is similar Gantt chart and expression movement business process and
lengthening all operation. Today is often in apply with large and complexly project.
Process diagram (flowchart) is diagram commercially activities and consist chain
interconnection logical symbol that are not standard then each software or any other tool has a its
prescribe symbol which represent process (figure 3).
Figure 3. Show model process diagram (flowchart)
Usual is that process diagram (because of the complicated business process) show in more
level on way that we work separation process. If one process consist more process under level, make
new process diagram to complete show wholle system on simple way, and that can describe own
notion business need on efficient way. Flowchart is tehnique which is today used very often by
manufacturing project, show business process, and from reengineering business process. Scheer [3] is
develop model flowchart using software tool under caption ARIS [2,3] (figure 2.). Characteristically
for this model is that we can on very lucid, precise and simply way describe business process through
prism event which following after certain function for which obtain exacatly executors.
3.
Conclusion
Bigger opposition on the market, constantly trend grow assortment products and services,
shorten time from claim to accomplishments liability (from input to output in business process),
constant stress creation bigger profit and conquest bigger portion on the market, and acquiring standard
quality cause are need for reengineering business process. Basic model commerce is such to exist
process which does occur, men which them execute and technology which them support. If in company
dominate traditionally vertical organization structure base on function and structure can redesign in
process orientate structure, on way to all process document, analyse and optimized.
Exactly say, use tool ARIS [2,3] possible is reengineering business process on way to making
one database business process, practice certain measurement and simulation established state and
recognize weak point established business system. In next step does very easy can propose new
solution during business process whereby does eliminate all beforehand unclosed weak point business
methodical. Use simulation in this phase too can easy to see how near site optimum solution flux
business process. This approach does empty footstep and tight throttle in company decrease on
negliglible small value, expense operate does reduce on minimum, and following all important
parameter commerce is simply and quality with probability to duly to see problem whether kind.
References
[1]
[2]
[3]
Hammer, M., Champy, J: Reengineering the Corporation. A Manifesto for Business
Revolution. Harper Business, New York, 1993.
Scheer, A. W., Abolhassan, F., Jost, W., Kirchmer, M.: Business Process Excellence: ARIS in
Practice, Springer, Berlin, Heidelberg, New York, 2002.
IDS Scheer: ARIS Methods Manual: Version 5, Saarbrucken, 2000.
Zoran Milanović, dipl.ing., Croatia osiguranje, Trg Hrvatske bratske zajednice 8, 21000 Split, Croatia, Telephone
+385 (0)21 302939, telefax +385 (0)21 302823, e-mail: zoran.milanovic@split.crosig.hr
Prof. Ivica Veža, Faculty of Electrical Engineering, Mechanical Engineering and Naval Architecture, R.
Boškovića bb, 21000 Split, Croatia, Telephone +385 (0)21 305777, Telefax +385 (0)21 463877, e-mail:
iveza@fesb.hr
Nikola Letilović, dipl.ing., Enel, Trg Hrvatske bratske zajednice 8, 21000 Split, Croatia, Telephone +385 (0)21
406280, Telefax: +385 (0)21 406281, e-mail: nletilovic@enel.hr