Increasingly, companies around the world are reengineering their business process to
be more profitable and to improve their customer satisfaction. The technique used is
often known as Business Process Reengineering (BPR) which requires radical change
in the structure of the company and offers high achievement on some performance
dimensions. Statistics show that as many as 70% of large companies are involved in
BPR projects and many others plan to begin projects soon. It also shows that up to
70-75% of these BPR projects fail. There are a few reasons for this high rate of
failure. Lack of proper and well documented methodology is one main reason. It
could also be due to unrealistic scope and expectation of the project, underestimating
the time and cost involved, and the effect of company type on BPR projects.
In this study a well structured methodology for BPR is proposed. The methodology
includes several new concepts and tools orderly organised to ease the hardship of
reengineering. Information Technology (IT) has been used as a tool to redesign the
company in the form of a simulation tool. It has also been used as a tool within the
company to automate the activities involved in the business process.
The methodology was tested in industrial case studies and the results were quite
satisfactory. The effect of company type on BPR was also tested. For Make-to-stock
and Make/Assemble-to-order types of company, reengineering can have great impact.
The effect of IT on BPR has been tested. IT if implemented by itself can improve the
performance in the magnitude of 10-15%, and if implemented within the framework
of BPR can have impact of 40-50% on the business. The simulation package of TOPIX
was used for the first time in a manufacturing environment and it proved to be
satisfactory software for BPR.
A Doctoral Thesis. Submitted in partial fulfillment of the requirements for the award of Doctor of Philosophy of Loughborough University.