ACCA Strategic Professional · Advanced Performance Management · Performance improvement models and techniques
Harbour Logistics Ltd's order-to-delivery process passes through nine departments, each of which checks and approves the order before handing it on. Delivery times are long and customers complain. The board decides to discard the existing process and redesign it from scratch around the customer outcome, aiming for dramatic improvement. Which approach is the board adopting?
The board is adopting business process re-engineering. BPR involves fundamentally rethinking and radically redesigning processes from scratch to achieve dramatic gains, whereas kaizen and TQM make small, incremental improvements to the existing process rather than discarding it.
- ABusiness process re-engineeringCorrect
- BKaizen continuous improvement
- CBenchmarking against competitors
- DTotal quality management through incremental fixes
Explanation
Business process re-engineering (Hammer and Champy) is the fundamental rethinking and radical redesign of processes to achieve dramatic improvements. Kaizen and TQM rely on small, ongoing, incremental changes to the existing process, so they do not match a decision to discard and start afresh.
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