Business Process Reengineering (BPR) versus Six Sigma
Business Process Reengineering (BPR) and Six Sigma are both methodologies used to improve organizational performance, but they approach this objective differently.
Business Process Reengineering (BPR)
BPR is a strategic approach that involves fundamentally
rethinking and radically redesigning a business process to achieve dramatic
improvements in critical performance measures, such as cost, quality, service,
and speed. BPR aims not to improve existing processes but to re-invent
them. This can sometimes mean starting from scratch, which can involve high
risks and radical changes to systems and employee roles.
BPR may involve:
- Removing
unnecessary processes
- Automating
certain tasks
- Restructuring
departments or teams
- Implementing
new technology to improve process efficiency
Six Sigma
On the other hand, Six Sigma is a structured, data-driven approach to process improvement to reduce defects to a level of
six standard deviations (sigma) from the mean, which equates to 3.4 defects per
million opportunities. Motorola initially developed the approach, and it was later championed by companies like GE.
The Six Sigma methodology uses two sub-methodologies:
- DMAIC
(Define, Measure, Analyze, Improve, Control) for improving existing
processes
- DMADV
(Define, Measure, Analyze, Design, Verify) for creating new processes or
products at Six Sigma quality levels.
Unlike BPR, Six Sigma focuses on incremental improvements to
existing processes rather than radical changes. It employs statistical analysis
to identify the causes of errors and then seeks to reduce or eliminate those
causes.
In summary, the main differences between BPR and Six Sigma are:
- Objective:
BPR seeks radical change and fundamental rethinking of processes, while
Six Sigma focuses on incremental improvement of existing processes.
- Risk:
BPR involves high risks as it may require a complete redesign, while Six
Sigma is less risky as it focuses on small, manageable changes.
- Focus:
BPR tends to focus on processes and systems as a whole, while Six Sigma
emphasizes statistical analysis and reduction of variation and defects.
- Implementation:
BPR is more disruptive as it often requires significant changes to the
organization structure, roles, and technology, whereas Six Sigma is less
disruptive and typically involves smaller changes within the existing
setup.
In practice, organizations often use these methodologies
together. For example, they may use BPR to redesign a process fundamentally and
then apply Six Sigma to optimize the redesigned process.
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