INTRODUCTION TO ADMINISTRATIVE

BUSINESS PROCESS IMPROVEMENT

In todays information age, our business
process can become more dependent on the
information system that support them than
they are on the people who operate them (H.
James Harrington)

In The first Wave performance-improvement activities to reduce error rates and

maximize productivity in the product processess.(1970s - 1980s)

In The Second Wave of Improvement, Most of the methodologies have been

directed at Improving administrative business processes.

Business Process Improvement (BPI) methodology focus on improving

administrative and support processes not on manufacturing processes. Although the

concepts can be applied equally well to the product processes

BPI Principle :
1. Organize Arround Outcome, not task / Organisasikan pada keseluruhan
hasil, bukan pada penugasan
2. Process Modernization precedes automation, / Modernisasi proses melalui
proses automatisasi
3. Use of benchmarking and other technique to regularly asses the costs and
benefits of functional process
4. Establish process ownership (responsibility, accountability, and authority)
Menetapkan kepemilikan proses (tanggung jawab, akuntabilitas, dan otoritas)
5. Sub some information-processing work into the real work that produces the
information. Kelompokkan atau bagi beberapa pekerjaan pemrosesan informasi
ke dalam pekerjaan nyata yang menghasilkan informasi.
6. Put decision point where work is performed, and build control into the
process. Masukan titik keputusan dimana pekerjaan dilakukan, dan membangun
kontrol ke proses
7. Standardize similar processes. Standarisasi proses serupa
8. Customer Focus
9. Change now, dont wait for a perfect solution

Gols of BPI :
1. To find ways to do more with less and provide a better product or
service in the minimum amount of time.
2. To Create an Organizations that work betters and cost less, to
provide quality service and reduced cost.

Drivers of BPI :
1. Speed
2. Quality
3. Cost

What are the Critical Success Factors Of BPI ? :

1. Strategic Focus
2. Resourcess
3. Change Management
4. Top-Down Commitment
5. Bottom-up (functional) support

What are the Generic Steps to a BPI project ? :

1. Develop Strategic Vision
2. Identify and Select Proces
3. Reengineering Opportunities
4. Identify IT levers and cost performance metric
5. Design New Process
6. Develop a business case for Selection and Implementation of Change
Alternatives.
7. Formulate Implementation Plant and /or Pilot Program
8. Review, Approval, and Execution
9. Training and Change Management for the New Environment

Recommended Activities in Support of BPI :

Strattegic Planning ( Strategic Business and Strategic Information System )
Business Process Improvement
Prototyping and System Development
Implementation
Education, Training and Change Management