The hottest ERP and business process reengineering

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ERP and business process reengineering

erp is a representative management technology suitable for manufacturing enterprises. It uses the latest achievements of information science to comprehensively plan, arrange and strictly control the resources within the enterprise and in all links of its supply chain according to the market demand, so as to ensure that human, financial, material, information and other resources are fully and reasonably applied, so as to achieve the purpose of improving production efficiency, reducing costs, meeting customer needs and enhancing enterprise competitiveness. ERP is the product of modern management ideas. It consults the sales staff of Jinan Shijin. It embodies many advanced management, such as agile manufacturing, lean production, concurrent engineering, supply chain management, total quality management, etc. in the ERP software system, and has become a new management means of modern manufacturing enterprises

enterprise management modernization is a combination of modern management ideas, modern organization and management methods and means. The implementation of ERP, a software system that reflects modern management ideas, inevitably requires corresponding management organizations and methods to adapt to it. Therefore, the combination of ERP and business process reengineering is an inevitable trend

types of process reengineering

in 1990, Professor hammer of American MIT first proposed the concept of business process reengineering (BPR). However, hammer does not provide a basic example for enterprises in the method of business process reengineering. The form of process reengineering cannot be the same for enterprises of different industries and different natures. Enterprises can choose to implement different types of BPR according to the competitive strategy, the basic characteristics of business processing and the level of information technology. According to the process scope and reorganization characteristics, BPR can be divided into the following three categories:

1 Bpr

within a function usually refers to the reorganization of processes within a function. Under the old system, the functional management organizations overlapped and there were many intermediate levels, but these intermediate management levels generally only performed some non creative statistics, summary, filling in forms and other work. Computers can completely replace these businesses and cancel the intermediate level, so that each function can be managed by only one functional organization from beginning to end, so that there is no overlap of organizations and no duplication of businesses. For example, the material management is changed from hierarchical management to centralized management, and the secondary warehouse is cancelled; The financial accounting system inputs the original data into the computer, and all the accounting work is completed by the computer, changing multi-level accounting to one-level accounting, etc

the vertical structure centralized management implemented by Baosteel is an embodiment of BPR within functions. By vertical division, Baosteel has five levels: General Plant, secondary plant, branch plant, workshop and operation area. In the deepening reform at the end of 1990, Baosteel concentrated its professional management in the general plant, and abolished all functional organizations at the secondary plant and below, flattening the functional organizations, achieving centralized decision-making and unified operation, and enhancing the enterprise's adaptability

2. Bpr

between functions refers to business process reengineering across the boundaries of multiple functional departments within an enterprise. For example, Beijing No.1 Machine Tool Plant reorganized its new product development organization, organized a contracting group integrating design, process, production, supply and inspection personnel with the goal of developing a new product, broke the boundaries of departments, implemented team management, and conducted parallel and cross operation management of design, process and production. This kind of organizational structure is flexible and adaptable. It organizes the personnel of various departments together, so that many tasks can be handled in parallel, thus greatly shortening the development cycle of new products

for another example, Baosteel's management system implements the principle of consistent management in terms of horizontal organizational structure. The so-called consistent management means that the professional division of labor is appropriately simplified in the horizontal organization and the structure is integrated. For businesses that can be managed by one department or one person, there is no need to set up multiple departments or individuals to manage them; In terms of management mode, it realizes the whole process management of various logistics and business flows from beginning to end, and overcomes the situation of excessive division of labor in institutional setting and business segment management in traditional management

3. BPR between organizations refers to business restructuring between two or more enterprises. For example, the purchase and sales collaboration between General Motors (GM) and Saturn car parts suppliers is a typical example of BPR among enterprises. GM company uses information technologies such as shared database and EDI to connect the company's business activities with the business activities of parts suppliers. Spare parts suppliers know their production progress through GM's database, draw up their own production plan, procurement plan and delivery plan, and transmit the delivery information to GM company through computer. GM's receiver will automatically pay the supplier through EDI while scanning the barcode to confirm the receipt of the goods. In this way, the operation of GM and its parts suppliers is like a company, which realizes the effective management of the whole supply chain, shortens the production cycle, sales cycle and ordering cycle, reduces non productive costs and simplifies the workflow. This kind of BPR is the highest level of business process reengineering and the ultimate goal of reengineering

it can be seen from the above three types of business process reengineering that various reengineering processes need the support of information technologies such as databases and computer networks. The core management idea of ERP is to realize the effective management of the entire upper platen that can adjust the supply chain according to the experiment. The Inter Organizational BPR developed to adapt to ERP has created the concept of all BPR. It is a BPR mode under the environment of global economic integration and wide application of the Internet

principle of process reengineering

bpr is the rethinking and redesign of the current business operation mode, and the following basic principles should be followed:

1 Adjust the organizational structure based on the enterprise objectives

under the traditional management mode, the division of labor makes each department have specific functions, and only one department can complete part of a certain business at the same time. BPR breaks the boundaries of functional departments, and one person or a working group completes all the steps of the business. With the intensification of market competition, enterprises need to provide better services for customers through restructuring, and take BPR as an opportunity to develop business and broaden the market

2. Let the executors have the decision-making power

with the support of ERP system, let the executors have the decision-making power required for work, eliminate the delay and error in the information transmission process, and motivate the executors

3. Obtain the participation and support of senior leaders

the continuous participation and clear support of senior leaders can significantly improve the probability of BPR success. Because BPR is a cross-section project. It is found that the experimental results are significantly different from the usual results. It is a change to change the enterprise model and people's way of thinking, which will inevitably have a great impact on employees and their work. In particular, BPR is often accompanied by the transfer of power and interests, which sometimes causes resistance from some people, especially middle-level leaders. It is difficult to implement BPR without the explicit support of senior managers

4. Select the appropriate process for reorganization

generally, an enterprise has many different business departments, and the reorganization of all businesses at one time will cause it to exceed its affordability. Therefore, before implementing BPR, you should select the reorganized objects. We should select those key processes that may obtain periodic benefits or have an important impact on the realization of the enterprise's strategic objectives. Generally, the product quality of large enterprises is more guaranteed as the reorganization object, so that the enterprise can see the results as soon as possible, create an atmosphere of optimism and active participation in the change in the enterprise, reduce people's fear, and promote the promotion of BPR in the enterprise

5. Establish smooth communication channels

since the enterprise decides to implement BPR, the enterprise management and employees should communicate continuously. It is necessary to publicize the opportunities brought by BPR to the employees, truthfully explain the impact of BPR on the organization and working methods, especially the impact on their own positions and the corresponding solutions taken by the enterprise, and try to obtain the understanding and support of the employees. If the potential threats are concealed, it may cause internal unrest and make the possible threats a reality

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