Business Process Re-engineering

Business process reengineering is a measure to rejuvenate the vital business processes of an organization to aim at improving the output and quality of the product and reduce cost simultaneously. The major aim of the business process reengineering is to analyze and design business processes for an organisation so that customer service is improved, operational cost is reduced, and the organization is prepared to face competition in the world.

At VJM & Associates LLP we analyze and evaluate the workflows of the company, and in the process, we find inefficient work strategy and recommend to change, replace, or eliminate the process.

Business Process and Re-Engineering

Know More about Business Process Re-engineering

Business Process Reengineering commonly known as BPR is a turn around management tool for any business. This was evolved first in the 1990s. The major aim of the business process reengineering is to analyze and design business processes for an organisation so that customer service is improved, operational cost is reduced, and the organization is prepared to face competition in the world.

The other terms normally used for business process reengineering are business process change management, business transformation, or business process redesign. As this name suggests this process is a total revamp of the processes followed in the business to achieve a better outcome and enhance the business attributes. Thus one can say that business process reengineering is redesigning and rethinking how a business should work so that the organizational goals are achieved with the lowest possible cost.

Through this process, the organization adopts a new system that emphasises customer requirements and needs with a reduction in cost. This can be achieved by redesigning organizational functions and using technology for decision making and data dissemination.

Following are the important steps that the management should adopt for business process reengineering are:
    • Defining objectives and framework of BPR, i.e., what is the key area of focus for implementation of BPR in organisation.
    • Refocusing the values of an organization towards customer satisfaction. At this stage, an organisation must identify needs of customers and the same need to be met first.
    • Post setting its objectives and goals of BPR, an organisation should proceed to study the existing process and what all shortcoming existing processes possess.
    • Formulate or redesign the business process so that shortcoming in existing processes can be met and desired objectives can be achieved.
    • Implementation of redesigned business processes.
    • BPR doesn’t end with implementation of redesigned business processes. Post implementation need of re-evaluation of new processes arises. Organisation should check outcomings of new processes and whether desired objectives are achieved or not.
    • BPR is a continuous process to make continual improvement.
  1. If effective and efficient use of Business process reengineering is done, the organization can have the following benefits:
  2. Relevant and pertinent focus to the business is identified
  3. The operational procedures are strategically built for improvement
  4. Elimination of inefficient and redundant procedures and activities and this also reduces complexities of process and costs of process.
  5. Integration and coordination between functions is initiated immediately
  6. The delays and lesser important operational and management phases are reduced. Which in turn increases adequacy and viability of an organization
  7. Short-sighted approaches are turned into long term benefits
  • Business Process Reengineering is a complex process as it aims at changing the existing processes of the organization fundamentally. The whole process can be time consuming and risky as well as expensive. 
  • VJM & associates LLP have identified the following major steps and we assist to implement the same in such a way that every step is a success.
  • Identify and communicate the need for change
  • The experts team dedicated to BPR analyses and studies the workflows of your business organization and different functions of the organization. Then the inefficient processes are identified and reported to the management
  • Here we not only identify the unessential process but also recommend how bringing change is inevitable. A comprehensive plan is chalked out considering the effects on even the lowest-ranked officers. But all these indispensable changes will definitely give a positive impact as we also assess the risks involved parallelly. While making the plans the risks involved are calculated and adhered to.
  • Putting together a team of experts
  • A highly skilled and motivated team of VJM & associates LLP along with the senior manager and operational manger of the organization discusses the existing workflows and changes that need to be brought up. The pros and cons surrounding every minute detail are discussed and solutions for any problems and issues are sought at this level
  • Detecting an inefficient process and defining key performance indicators (KPI)
  • Now it becomes important to identify and define the KPI. The whole aim of the business process reengineering is optimizing. Following are the normal standard KPI though they vary according to the process that is optimized:
  • Manufacturing 
  • Cycle time, changeover time, defect rate, inventory turnover, planned as well as emergency maintenance, etc
  • IT
  • Minimum time to repair, support ticket closure rate, application development, cycle time, etc
  • Once the KPI is identified we adopt business process mapping through any of the two ways namely process flowcharts, business process management software. Now all the steps in the process to be adopted are penned and are waiting for implementation
  • Reengineering the processes and comparing KPI
  • In this step, it is time to act. All the theories that are put on paper are now implemented. However, while doing this VJM & associates normally recommend that the process be implemented on a smaller scale. And once the KPI shows the signs of success then slowly and gradually the same be implemented on more and more organizational processes.
  1. While following the above mentioned major steps the sub-areas that need attention are briefed as under:
    • Working capital and cash flow management
    • Evaluation of viability and adequacy of operations
    • Identify, evaluate and analyze projections, plans, and business assumptions
    • Assessing the sensibility of business processes
    • Scrutinize restructuring plans and alternatives
    • Accommodate the development of exit strategies and debt restructuring
    • Negotiating the terms with creditors
    • Regulate and dispense crisis cash management
    • Assigning interim management responsibilities
    • Pinpointing the problems that have an impact on profitability
    • Developing and implementing  a turnaround plan 
    • Assisting in the measures to minimize Tax attributes through abiding by the law
    • Other issues such as insolvency, bankruptcy, NLO’s, etc
    • Adhering to tax compliances
VJM & Associates LLP cater to all the above-mentioned areas along with the Business process reengineering tasks. Different plans and policies are set for any of the above mentioned areas as applicable to the organisation during the period when BPR is getting implemented. these areas form the backbone of the organization. While the BPR is conducted VJM & Associates keeps in mind that the existing business of the organization does not collapse or get hampered in any way.
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FAQs on Business Process Re-engineering

Business process reengineering is a practice to redefine, redesign, rethink, and reorganise the work process of an organization aiming at the improvement in organization, customer satisfaction, and reduction in cost. In simple terms optimization of processes for the benefit of an organization

Following is the process of Business process reengineering

  • Defining objectives and framework of BPR
  • Refocusing the values of an organization towards customer satisfaction. 
  • study of existing processes to identify all shortcoming that existing processes possess.
  • Formulate or redesign the business process 
  • Implementation of redesigned business processes.
  • re-evaluation of new processes arises.
  • BPR is a continuous process to make continual improvement.

The automobile manufacturing Company FORD implemented the BPR in their accounts payable division when compared to the same department in their partner company MAZDA.

This was analyzed and followed and was a huge success.



The objective of business process reengineering is optimizing the inefficient processes in an organization with an aim of improvement in the organization along with customer satisfaction at a reduced cost. Also, these processes should be such that they can be repeated and should add value to the organization

We can consider any tool for BPR if it has following 5 features:

  1. Integrated enterprise models
  2. Analysis (problem-solving capability)
  3. Software functionality
  4. Visualization and Communication
  5. Intended Users

BPR analyses the company’s workflow finds such processes which are inefficient in terms of cost or are irrelevant to the goals of the organization and then identify the ways and means to eliminate, change or replace such process

The list of advantages of a well planned and successful BPR is endless such as faster processing time, higher employee retention, reduced cost, improved customer service, increased revenue, etc.

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