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The City of Albuquerque, New Mexico Water Utility Division is in the second year of a projected five year project to redesign the organization to become more effective and provide higher value to its water customers. The Water Utility Division (WUD) adopted a structured approach to business process reengineering (BPR) minimizing the time and cost of reengineering while maximizing involvement of utility personnel. The core of this BPR methodology is business simulation modeling. Business simulation models were developed by WUD's modeling team to provide a dynamic representation of the actual processes required to operate and maintain the water system. Models were developed that simulated how the utility could operate more effectively through adoption of best business practices. The models simulated a complete year of operation and were used to provide a direct comparison of the bottom-line benefits of reengineering and activity-based costing for sensitivity analysis of various operations and management scenarios. A 40% reduction in labor costs, during a demonstration pilot resulted from the application of the structured methodology planning for the utility. This paper provides an overview of the BPR methodology and software. The paper also discusses the manner in which business simulation modeling can be integrated into operations planning, design and implementation. Includes table, figures.

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Edition: Vol. - No. Published: 03/01/2000 Number of Pages: 13File Size: 1 file , 250 KB