BusinessProcessAnalysis-ALetterfromAmericaProfessorV.ArunachalamDistinguishedServiceProfessor,DepartmentsofMaterialScienceandEngineeringRoboticsandEngineeringPublicPolicyCarnegieMellonUniversityPittsburgh,PA,15217andDr.EswaranSubrahmanianSeniorResearchScientist,EngineeringDesignResearchCenterCarnegieMellonUniversityPittsburgh,Pa,15217August,1995AreporttoEngineeringandScocialScienceResearchCouncil,UKToenablethereadertoaccessthisBPRCreportspeedilyandflexibly,ithasbeenorganisedintothefollowingseparatesections:ContentsPageAbstractIntroductionReengineeringCorporationsandReengineeringTheChryslerCorporationCaterpillarJetPropulsionInnovationinDefense:HughesAircraftInnovationinTechnologiesGovernmentInitiativesMethodsandToolsforBPAITandBPRJapanandReengineeringHumanResourcesinBPRProblemsinReengineeringAFewmorelinesReferencesAreporttoEngineeringandScocialScienceResearchCouncil,UKSection1:AbstractThisreportisontherecentinnovationsimplementedbyAmericancompaniesinthewaytheymanagetheirbusinessandbytheUSgovernmentinsupportingtheindustrialandtechnologicalbaseinthecountry.Americancorporationsvisibletooutsidersaregenerallyverylarge,withannualbudgetsrunningwellabovethenationalbudgetsofmanycountries,andwitharangeofdiverseoperationstranscendingdivisional,organisationalandnationalbarriers.Inrespondingtochangesintheglobalmarketplace,theyarecontinuallyintroducinginnovationsinprocessandproducttechnologiesandinproductdevelopmentandmanufacturingcycles.Itisdifficulttoenumerate,letalonediscuss,alltheinnovationsthatareseeninUSbusinesstoday.Instead,weshallfocusoninnovationsthataresignificantandgenericforimprovingbusinessprocesses.ThisisrelevantasmorethanfiftypercentofUSfirmsaremediumorsmallsized,andthegeneralcompetitivenessofUSindustrydependsonthemaswell.Inthisreport,wedonotdiscusstherecenttrendsinfinancial,merger,RODandmarketingstrategiesandprocesses.Instead,wediscussonlythoseissuesrelatedtobusinessprocessesthatimpacttheabilityofUSbusinesstomeettheidentifiedmarketdemandsincost,qualityandtime.Aphrase,nowincreasinglyinvogue,todescribetheeffortsinprocessimprovementsisBusinessProcessRe-engineering(BAR).HammerandChampdefineBARas"theradicalrethinkingofthebusinessprocessestoachievedramaticimprovementsincriticalcontemporarymeasuresofperformanceascost,qualityandspeed."Thischaracterisationofre-engineeringisofteninterpretedinmultiplewaysresultingindifferentmodelsandmethodsofimplementationofbusinessprocessre-engineering.ReportedfailureratesofaboutfortytoseventypercentforBARapplicationsinachievingstatedgoalscanindeedbeattributedtothedifferencesinperceiveddefinitionofwhatconstitutesre-engineeringandthelevelofimplementation.Inpractice,implementationsofre-engineeringspanfromre-engineeringlocalprocesstoacompleterestructuringtheentireorganisation.Businessprocessre-engineeringforlocalimprovementshaveledtothedevelopmentofanalyticalmodelsforoptimisationofexistingprocessesthroughsimplerproceduresandincorporationofInformationtechnology.Activitybasedaccounting,anAmericaninvention,isalsousedinconjunctionwithprocessre-engineeringprojectsefforts.ThedrivetowardsBARinAmericanindustrieshasspawnedanindustryofconsultantsandprocessmappingandsimulationtools.Abriefreviewofthestate-of-theartinanalyticalmethodsandtoolssuchasIDEFO,SAT,BPMATandDesignProcessMatrixisalsoprovidedinthisreport.Attheotherend,thereareexamplesofwellestablishedorga...
