Acc 442 lecture notes package 1 PDF

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Acc 442 lecture notes package 1...

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T/F: Business process rengineering is defined as gradual, incremental changes to business processes FALSE

T/F: A drawback to clean slate reengineering is that it can inhibit innovation and creativity. FALSE

T/F: Using an ERP system to reengineer is an example of technology enabled reengineering. TRUE

The BPR principle of __________ transfers the cost and accountability for work to the beneficiary of a process. self-service

The ___________ process reflects how work is currently accomplished and the ______ process shows an improved or reengineered process. "as is", "to be"

How does reengineering relate to ERP? Business process reengineering entails radical, dramatic changes like those that take place during an ERP implementation.

Explain the pros and cons of clean slate and technology enabled reengineering. CLEAN SLATE REENGINEERING PROS • Clean slate reengineering tends to foster innovation and creativity • Creativity can result in a sustainable competitive advantage CONS • Very costly • Requires that internal experts devote time to documenting processes, developing requirements, and creatively designing a superior process • can take many months—if not years—to accomplish

TECH ENABLED REENGINEERING PROS • the system provides a roadmap for transformation by eliminating many of the difficult decisions needed when designing processes from scratch • since other companies have implemented the same system, the risk of whether the process designs are feasible is reduced.

CONS • When many companies in an industry use the same ERP system, this situation can theoretically level the playing field.

What is the difference between BPI and BPR? BPR is radical and revolutionary, BPI is incremental and evolutionary.

List and describe several problems with business process. TABLE 3-1 (Page 46)

• Authority ambiguity: Having two or more people provide approval may be unnecessary, reeks of bureaucracy, and increases the cycle time of the process. • Bottlenecks: When a number of information flows lead to a single activity, the process may be hindered by insufficient resources dedicated to the roles and events downstream. Bottlenecks can limit the performance or capacity of the entire system, delaying or completely stopping the process. • Cycle time: The cycle time is the time consumed during the entire process flow; it should be at the heart of performance measurement, providing focus on the length of time the process takes from start to finish. • Data duplication: When multiple groups involved in a process begin maintaining their own separate information systems, variations of the same data often appear in multiple places. • Handoffs: The transfer of responsibility from one role to another creates the opportunity for mistakes, miscommunication, and delay. • Intermediaries: Words such as "pass it by me" include an intermediary and often an unnecessary step. • Manual steps: Technology and systems could be implemented in place of manual steps, which add to cycle time and create errors. • Old ways: Technology and systems are available but not used because employees have not been trained (or have been trained and do not want to use new systems). Employees revert to "the old ways of doing things."

• Quality control: Quality control refers to the process of another person checking work rather someone checking his or her own work. Is the quality control really needed? Can the work be mistake-proofed to make it impossible for the defect to pass on? Prevention is better than detection. • Paper records: Question whether the current process is adding, maintaining, or eliminating paper records. Storing data in electronic form is optimal since the data then becomes easier to share. • Rework: The necessity of spending time fixing errors or remediating problems. Management should investigate the source of the errors and make modifications to the process to eliminate the potential for errors. • Role ambiguity: A lack of clarity about the expectations, norms, and behaviors associated with a particular job can lead to process inefficiencies. • Segregation of duties violations: Employees should not be in the position both to perpetrate and to conceal fraud. The activities in a process that should be segregated among employees include: 1) custody of assets; 2) authorization or approval of related transactions affecting those assets; and 3) recording or reporting of related transactions.

Describe the steps in the BPI lifecycle SEE FIGURE 3-6 (Page 53)

• First, the organization must identify goals and objectives of the process improvement plan. A process improvement team should also be assembled and high-level support should also be obtained. • The next step is to compile a process inventory, which identifies key business processes in the organization, including their sub-processes and activities. From this process inventory, the BPI team can determine and prioritize a list of processes in need of change. Then the first process will be selected for improvement. • Next, the BPI team must obtain information about the process from process owners and experts. The process documentation should include all activities, decisions, and resources required and should be verified with stakeholders to make sure it correctly reflects the existing process. • The next step is to analyze the process to pinpoint any problems. It will be useful to again elicit feedback from users to make sure all problem areas are noted. Additionally, consider potential benefits to be realized from improving the process. • Once the current process has been analyzed and measured, is it time to make improvements. The team should use brainstorming techniques, while challenging everything. New prototypes of process flows, policies and procedures, and reporting requirements should be developed. The team should also be aware of where mistakes can occur in the new process and design internal controls. Team members should use technologies and tools to automate steps where appropriate and create

new metrics to show if the process works as planned. • Practicing the new process is one way to build a detailed understanding of the process and see how it will work. Often, it is useful to pilot the new process, especially if difficulties are expected. The team should also be available to answer questions and provide support to those stakeholders whose jobs changed. • Lastly, the company should embrace the new mindset and drive continuous improvement....