How does the concept of continuous process improvement relate to process reengineering? Identify and discuss the five key elements or steps involved in process reengineering
What will be an ideal response?
Answer: Continuous process improvement, also known as business process reengineering, refers to both incremental and breakthrough improvements in the way an organization does business. The fundamental premise of process reengineering is that form influences function; that is, the way a process is designed influences its function, which has an important influence on key outcomes.
A common approach to process reengineering has five key elements or steps.
1. First, the objective step focuses on determining what a process is supposed to achieve.
2. Second, the design step examines the critical sequences and seeks to maximize the objective and minimize the number, complexity, and time required to complete the critical sequences involved in the process.
3. Third, the capabilities step determines the range of abilities needed to execute the design.
4. Fourth, the infrastructure step focuses on the information and other structural elements required for supporting the design and capabilities to meet the objective.
5. Fifth, the metrics step determines the key metrics that help monitor and determine how well the redesign is doing in meeting the objectives.
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