Business Process Reengineering and Measuring of Company Operations Efficiency

Abstract

The main purpose of the presented research is to contribute to a better understanding of business process reengineering (BPR), supported with performance measurement (PM) indicators with the purpose to improve company operations efficiency. Existing literature on the subject warns about deficiencies in the concept of BPR, which can be extremely efficient with its radical workings. The concept of BPR should be studied in connection with the logical supplementary areas: manufacturing strategy and, on the other hand, performance indicators, meant for selected manufacturing strategy and BPR performance verification. BPR and PM literature is based primarily on case studies and there is a lack of rigorous wide-ranging empirical research covering all its aspects. This chapter presents the results of a survey research carried out in 73 medium- and large-sized Slovenian manufacturing companies. Seven crucial areas were identified based on a synthesis of PM literature, which must be practiced to achieve effective operations: cost, quality, time, flexibility, reliability, customer satisfaction, and human resources. Variables have been constructed within these areas, using Likert scales, and statistical validity, and reliability analyses.