Publications / 2003 Proceedings of the 20th ISARC, Eindhoven, Holland

Performance Evaluation of Construction Business Process Reengineering

Min-Yuan Cheng, Chi-En Chang
Pages 321-326 (2003 Proceedings of the 20th ISARC, Eindhoven, Holland, ISBN 978-90-6814-574-8, ISSN 2413-5844)

This study endeavors to focus on developing an evaluation method for comparative analysis of process performance before and after reengineering. Business Process Reengineering (BPR) is a relatively recent concept that has stemmed from management and computer science roots. Process performance evaluations are crucial to managers in identifying the benefit of new process after reengineering. Currently, BPR lacks an effective method of measuring performance. The primary objective of this study is to define a structured process to evaluate the process performance based on the Process Value (PV). The PV, consisting of two major factors, namely process time and customer satisfaction, is developed to evaluate the procedural performance. Process time is an index used to measure the process efficiency, while customer satisfaction is applied for evaluating process effectiveness. Concept derived from the Queueing Theory is used to analyze the time performance of BPR, and Target Attainability Matrix is applied to quantify the customer satisfaction. Dividing process effectiveness with process efficiency, the PV is obtained to assess the reengineering results. The evaluation method has been successfully implemented to real operations in construction industry. It is used as a basis from which business managers can clearly understand the process performance difference before and after reengineering. In addition, the results provide a good reference for those interested in adopting BPR in the industry.

Keywords: Business Process Reengineering, Performance Evaluation, Queueing Theory, Process Value