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Business process reengineering

Business Process Reengineering Cycle Business process re-engineering is a business management strategy, originally pioneered in the early 1990s, focusing on the analysis and design of workflows and business processes within an organization. BPR aimed to help organizations fundamentally rethink how they do their work in order to dramatically improve customer service, cut operational costs, and become world-class competitors.[1] In the mid-1990s, as many as 60% of the Fortune 500 companies claimed to either have initiated reengineering efforts, or to have plans to do so.[2] BPR seeks to help companies radically restructure their organizations by focusing on the ground-up design of their business processes. Business process re-engineering is also known as business process redesign, business transformation, or business process change management. Overview[edit] Reengineering guidance and relationship of Mission and Work Processes to Information Technology. History[edit] Related:  {t} Operations

Six Sigma The common Six Sigma symbol Six Sigma is a set of techniques and tools for process improvement. It was developed by Motorola in 1986.[1][2] Jack Welch made it central to his business strategy at General Electric in 1995.[3] Today, it is used in many industrial sectors.[4] Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes. It uses a set of quality management methods, mainly empirical, statistical methods, and creates a special infrastructure of people within the organization ("Champions", "Black Belts", "Green Belts", "Yellow Belts", etc.) who are experts in these methods. The term Six Sigma originated from terminology associated with manufacturing, specifically terms associated with statistical modeling of manufacturing processes. Doctrine[edit] Six Sigma doctrine asserts that: "Six Sigma" was registered June 11, 1991 as U.S. Methodologies[edit] DMAIC[edit]

Lean manufacturing Overview[edit] The difference between these two approaches is not the goal itself, but rather the prime approach to achieving it. The implementation of smooth flow exposes quality problems that already existed, and thus waste reduction naturally happens as a consequence. The advantage claimed for this approach is that it naturally takes a system-wide perspective, whereas a waste focus sometimes wrongly assumes this perspective. Both lean and TPS can be seen as a loosely connected set of potentially competing principles whose goal is cost reduction by the elimination of waste.[5] These principles include: Pull processing, Perfect first-time quality, Waste minimization, Continuous improvement, Flexibility, Building and maintaining a long term relationship with suppliers, Autonomation, Load leveling and Production flow and Visual control. Origins[edit] Lean aims to make the work simple enough to understand, do and manage. A brief history of waste reduction thinking[edit] 20th century[edit]

Work in process Work in process,[1][2][3][4] work in progress,[5][6][7] (WIP) goods in process,[8] or in-process inventory are a company's partially finished goods waiting for completion and eventual sale or the value of these items.[9] These items are either just being fabricated or waiting for further processing in a queue or a buffer storage. The term is used in production and supply chain management. Optimal production management aims to minimize work in process. Barcode and RFID identification can be used to identify work items in process flow. Sometimes, outside of a production and construction context "Work in process" is used erroneously where the status "Work in Progress" would be correctly used to describe more broadly work that is not yet a final product. WIP in construction projects[edit] Work-In-Process in construction accounting identifies the value of construction projects which are currently being worked on by the construction firm. See also[edit] Lean manufacturing References[edit]

Total quality management Total quality management (TQM) consists of organization-wide efforts to install and make permanent a climate in which an organization continuously improves its ability to deliver high-quality products and services to customers. While there is no widely agreed-upon approach, TQM efforts typically draw heavily on the previously-developed tools and techniques of quality control. TQM enjoyed widespread attention during the late 1980s and early 1990s before being overshadowed by ISO 9000, Lean manufacturing, and Six Sigma. History[edit] In the late 1970s and early 1980s, the developed countries of North America and Western Europe suffered economically in the face of stiff competition from Japan's ability to produce high-quality goods at competitive cost. For the first time since the start of the Industrial Revolution, the United Kingdom became a net importer of finished goods. Development in the United States[edit] Features[edit] "Quality is defined by customers' requirements."" Joseph M. [edit]

Efficiency Efficiency in general, describes the extent to which time, effort or cost is well used for the intended task or purpose. It is often used with the specific purpose of relaying the capability of a specific application of effort to produce a specific outcome effectively with a minimum amount or quantity of waste, expense, or unnecessary effort. "Efficiency" has widely varying meanings in different disciplines. The term "efficient" is very much confused and misused with the term "effective". A simple way of distinguishing between efficiency and effectiveness is the saying, "Efficiency is doing things right, while Effectiveness is doing the right things." In science and technology[edit] In physics and engineering[edit] In economics[edit] In other sciences[edit] In computing: Algorithmic efficiency, optimizing the speed and memory requirements of a computer programStorage efficiency, effectiveness of computer data storageEfficiency factor, in data communications In nature[edit] See also[edit] File:

Effectiveness Effectiveness is the capability of producing a desired result. When something is deemed effective, it means it has an intended or expected outcome, or produces a deep, vivid impression.[1] Etymology[edit] The origin of the word "effective" stems from the Latin word effectīvus, which means creative, productive or effective. It surfaced in Middle English between 1300-1400 A.D.[2] Usage[edit] In mathematics, effective is sometimes used as a synonym of algorithmically computable. In heat transfer, effectiveness is a measure of the performance of a heat exchanger when using the NTU method. In medicine, effectiveness relates to how well a treatment works in practice, as opposed to efficacy, which measures how well it works in clinical trials or laboratory studies. In management, effectiveness relates to getting the right things done. In human–computer interaction, effectiveness is defined as “the accuracy and completeness of users’ tasks while using a system”.[4] Related terms[edit] References[edit]

Scientific management Frederick Taylor (1856-1915), lead developer of scientific management Scientific management, also called Taylorism,[1] was a theory of management that analyzed and synthesized workflows. Its main objective was improving economic efficiency, especially labor productivity. It was one of the earliest attempts to apply science to the engineering of processes and to management. History[edit] Its development began with Frederick Winslow Taylor in the 1880s and 1890s within the manufacturing industries. Although scientific management as a distinct theory or school of thought was obsolete by the 1930s, most of its themes are still important parts of industrial engineering and management today. Scientific management's application was contingent on a high level of managerial control over employee work practices. The field comprised the work of Taylor; his disciples (such as Henry Gantt); other engineers and managers (such as Benjamin S. Larger theme of economic efficiency[edit] Soldiering[edit]

Organization An organization (or organisation) is a social entity, such as an institution or an association, that has a collective goal and is linked to an external environment. The word is derived from the Greek word organon, itself derived from the better-known word ergon which means "organ" . Types of organization[edit] There are a variety of legal types of organizations, including corporations, governments, non-governmental organizations, international organizations, armed forces, charities, not-for-profit corporations, partnerships, cooperatives, universities, and various types of political organizations. A hybrid organization is a body that operates in both the public sector and the private sector simultaneously, fulfilling public duties and developing commercial market activities. A voluntary association is an organization consisting of volunteers. Organizational structures[edit] The study of organizations includes a focus on optimizing organizational structure. Committees or juries[edit]

Productivity Increasing national productivity can raise living standards because more real income improves people's ability to purchase goods and services, enjoy leisure, improve housing and education and contribute to social and environmental programs. Productivity growth also helps businesses to be more profitable.[1] Characteristics of production[edit] Economic well-being is created in a production process, meaning all economic activities that aim directly or indirectly to satisfy human needs. The degree to which the needs are satisfied is often accepted as a measure of economic well-being. The satisfaction of needs originates from the use of the commodities which are produced. Economic well-being also increases due to the growth of incomes that are gained from the growing and more efficient production. Main processes of a producing company[edit] Main processes of a producing company (Saari 2006,3) real process.income distribution processproduction process.monetary process.market value process.

Systems analysis Systems analysis is the study of sets of interacting entities, including computer systems analysis. This field is closely related to requirements analysis or operations research. It is also "an explicit formal inquiry carried out to help someone (referred to as the decision maker) identify a better course of action and make a better decision than he might otherwise have made."[1] Overview[edit] The terms analysis and synthesis come from Greek where they mean respectively "to take apart" and "to put together". Information technology[edit] The development of a computer-based information system includes a systems analysis phase which produces or enhances the data model which itself is a precursor to creating or enhancing a database (see Christopher J. Another view outlines a phased approach to the process. Scope DefinitionProblem analysisRequirements analysisLogical designDecision analysis Practitioners[edit] See also[edit] References[edit] External links[edit]

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