Factors to be Considered While Selecting CPI or Process Reengineering

Factors to be Considered While Selecting CPI or Process Reengineering are as follows:

The employees of an organisation can provide valuable insights into improvement opportunities and whether CPI or process reengineering can accomplish improvement desired or needed.

(i) Changes in the market place:

If the market place for the products and/or services of a firm is undergoing rapid changes, then reengineering a broadly defined business process (e.g., new product/service development) may be more appropriate than continuous incremental improvements (i.e., CPI).

(ii) Geographic spread:

CPI is more appropriate when the process is limited to one or two physical locations (e.g., work groups/ departments) and data exchange is not critical. However, if the processes are used in multiple locations (particularly across states or countries) and critical data exchange is required, then reengineering is recommended.

(iii) Customer/supplier involvement:

CPI is most appropriate if a relatively low degree of “hands-on” customer and supplier involvement is necessary. A reengineering approach requires a greater degree of direct involvement with key customers and suppliers of a process being reengineered.

(iv) Cost and staffing allocation:

If top management is willing to provide only a limited financial resources and periodic, part-time involvement of those involved in the process to be improved, then CPI would be a better choice. Part-time reengineering efforts result in limited resources and increased frustration of team members and also disappointment for senior management persons.

(v) Level of urgency:

Organisations which are relatively low on the quality improvement “maturity curve” have less urgency about improvement and are satisfied with CPI. Reengineering is more appropriate when an existing process is failing and when the situation is critical and significant improvement must be achieved in a relatively short period of time.

Submitted by : Dr. Mason, Category : Business, Tag : Reengineering