Business process reengineering : framework design, BUTEC case -

Abstract

Business Process Reengineering (BPR) is fundamental rethinking of business processes (mainly core processes) to achieve breakthrough improvements in measures of performance such as cost, quality, time and flexibility. Companies undertake a BPR project as the gap becomes large between what a process is supposed to produce-deliver and what it is currently producing-delivering. BUTEC s.a.l. is an Engineering, Procurement and Construction (EPC) contractor operating in the MENA and GCC regions. BUTEC has recently decided to undertake a BPR endeavor that will affect some of its critical (support) processes. The objective of this project is to design a framework that BUTEC can follow in reengineering its processes, and to apply the framework to procurement, a pilot process that BUTEC carefully chose to prioritize. In this project report, we introduce BPR, present a literature review on some of the available methods-frameworks in the literature and select the framework to be used. Finally, we present the results of reengineering the procurement process. It is worthy to note that in the reengineering process itself, we focused mainly on the time dimension, being the most important strategically. Our findings show that the main reasons of delay are related to four aspects: people, product, process and third party (suppliers, planning department and consultants). The solution would be to divide the items to be ordered by procurement, into two categories, mainly critical and non-critical items, in order to design a process, manage resources and adopt supply chain practices for each category independently.