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Process Reengineering and Optimization Tools – Part 2


Seven Principles of Re engineering ("Michael Hammer")

  • Organize around outcomes, not task : This principle says people should be organized around outcome rather than task. Michael Hammer gives example of case manager who handles end-to-end process and is accountable for it. We can associate this to a production line. Production line is like a single process, where as works working around it are completing a single task each. Problem with task approach is, if one single worker doesn't work as expected or makes mistake, not only process output is defected but also makes the task of other resources redundant.

Organized around tasks
1st Principle

  • Have those who use the output of process perform the process:This is essential as at each step of passing on information we are losing both information, time and resource.
    2nd Principle

  • Subsume information-processing work into the real work that produces the information: Essentially it says don't just pass the information from one department to another but use it as an when create or received.

3rd Principle
  • Treat geographically dispersed resources as though they were centralized: This is more relevant to processes which has nation wide presence like opening of bank account, order payment process of a retail chain, ticketing process and many more. If in any of these cases process is not centralized and resources are not treated like single entity it would fail.

4th Principle

  • Link Parallel activities instead of integrating their results


5th Principle

  • Put the decision point where the work is performed, and build control into the process Perfect example to relate call centers or customer care centers, these guys have no  or very minimal decision making powers, hence customer problems are not resolved also you need extra decision makers and again have to contact customer to resolve their issue. Over all we loss both customer satisfaction and resource.

6th Principle

  • Capture information once and at the source

7th Principle
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