Coimbatore Institute of Technology

(Autonomous Institution Affiliated to Anna University: Chennai)

Second Mid-Semester Examination
VIII semester B.E. Mechanical Engineering
Time: 2:00 p.m. to 4:00 p.m. 15MEE23 - BUSINESS PROCESS REENGINEERING Max marks: 40

Answer Key
Part – A Answer all questions 5 x 2 = 10

1 What is change management? Is there need for change management in organizations?

Ans Change management is a set of processes that are incorporated to ensure that significant changes
are implemented in a systematic and controlled way to effect organizational change.
Change management plays an important role in an organization. Identification of changes in the
organization or a project may together be initiated internally or externally, in what is more important
is how the organization responds to these changes

2 List the strategies of change management

Ans  Creating new organizational structures within the corporate boundaries where new
processes can be developed
 Spinning out an independent organization from the existing one
 Acquiring a different organization whose processes and values closely match the
requirements of the new task

3 What is benchmarking and how is it useful in business process reengineering?

Ans Benchmarking is a management tool that helps in identifying the important areas for improvement in
any business process so as to achieve maximum productivity and efficiency.
In identifying best practices, benchmarking methods analyse and integrate important performance
measures of business processes. Once the areas are identified for improvement, reengineering
methods are implemented to improve efficiency and productivity

4 How does ERP contribute in supply chain performance?

Ans Effective implementation of an ERP system is designed to allow different functions or entities to
share valuable information and collaborate in strategic planning sessions. In the context of
marketing operations, effective collaboration with other internal corporate functions and external
supply chain partners has resulted in decrease in order variation, curtailment of order size
fluctuations, and reduction in inventory levels.

5 Compare and contrast between industrial engineering and BPR

Ans Industrial Engineering is a branch of engineering that deals with the creation and management of
systems that integrate people, materials and machinery in productive ways.
Simplifying and streamlining major business processes, eliminating all redundant and non-value
adding steps, reducing the number of stages/transfer points of work and speeding up work flow—
often through the use of information technologies and systems.

Part – B Answer All questions 3 x 10 = 30

1 a. What are the benefits of change management? Illustrate by examples (5)

Ans The main factors for change management are the processes/methods in which changes are
to be implemented and the tools through which changes are incorporated. Most

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 organizations want change to be implemented with least obstruction to business entities and
minimum risk to business. For this, change must be applied with a structured and systematic
approach.
In general, change management helps an organization to reduce risk while implementing the
change, which is acceptable by the top management. Structured and systematic approach
towards change management strategies can benefit not only financial aspects of the
organization, but also information security, operations and risk management functions.

Any one case study can be explained

b. Discuss in detail the success factors of Business Process Reengineering. (5)

Ans 1. A taskforce should be set up to select and structure all processes, and to conduct process
review
2. Prices should cover the complete sequence of activities
3. Objectives should be set up from the customers’ viewpoint
4. Existing processes should be measured
5. One person should be appointed who is responsible for reengineering process, and
implementation management
6. The process should be engineered from a scratch rather than reengineered
7. A top-down approach to process mapping should be chosen
8. All functions should be involved
9. Performance measures should be set for each participating function
10. Decision making teams should be set up for each process, and the whole programme
11. There should be top-down commitment
12. Organization should have realistic expectations
13. The workers should be empowered
14. Organization should follow sound management practices
15. There should be right resources
16. There needs to be tolerance to change
17. Proper budget provisions should be made

(OR)
2 a. Discuss a case study in which methods of benchmarking are applied. (5)
Ans Competitive Benchmarking Competitive benchmarking is a process of comparing a firm’s
processes, or strategies, or performance measures, with another fi rm. Competitive
benchmarking helps the organization to know its position as compared to its competitors and
helps identify the areas for improvement. This can be in all areas, i.e., finance, products and
services, organization, technology, research and development, personnel policies, etc., or in
specified areas.

Functional Benchmarking Functional benchmarking looks at similar practices and processes

in organizations in other industries. This type of benchmarking is an opportunity for
breakthrough improvements by analysing high performance processes across a variety of
industries and organizations.

Generic Benchmarking Generic benchmarking, as a form of external benchmarking, is a

performance improvement process that looks at best practices implemented by well
established firms. The core area of generic benchmarking is identifying and adapting the
best practice to improve productivity by improved performance measures.

A case study can be explained

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 b. What are the factors that affect business process innovation? (5)
Ans Organizational innovation: This area involves changing organization processes like
knowledge management, work force management, change management, customer
employee relationship, value chain management, finance, etc. The main goal of
organizational innovation is to keep a step ahead of changing market conditions, new
technologies, and human resource issues.

Strategy innovation: This area involves questioning existing business processes or models in
order to meet continuously changing market needs, adding additional values and creating
new markets. To survive in today’s competitive world, technological and social changes are
utmost important. These changes can be implemented if new approaches towards strategy
are adopted.

Technology innovation: As technology is a major driving factor in business, technology

innovation is directly related to business innovation. It involves innovation derived from
research and technology developments that are independent of product and service
initiatives.

Process innovation: Increase in profitability, cost reduction, improvement in efficiency,

improvement in employee customer relations, employee satisfaction, etc., can be achieved
by process innovations. They also deliver enhanced product or service value to the
customer. Building business process management system (BPMS) is the primary focus of
process innovations.

Product innovation: According to Phillip Kotler, a product is anything that can be offered to a
market for attention, acquisition, use, or consumption that might satisfy a need or want.
Thus, a product may be a physical good, retail store, person, organization, place or idea.
Product/service innovation is the result of bringing to life a new way of solving the customer’s
problem—through new product or service development—that benefi ts both the customer
and the sponsoring company.

• Marketing innovation: To achieve maximum profi t, it is necessary that a proper marketing

strategy is adopted by the business organization. So, marketing innovation plays a vital role
in business innovation, and, thus, in the success of the business. It focuses on how the
industry adapts to new technology and continuous changing customer needs. It is part of
business exchange.

3 a. Summarize the differences between TQM and BPR. (5)

Ans TQM
TQM and BPR have a cross-functional relationship. TQM is concerned about improving
productivity through quality improvements while BPR is about making process improvements
through radical redesign and use of advanced technologies.
• TQM is focusing on continuous improvements while BPR is concerned about product
innovations.
• TQM emphasis on the use of statistical process control while BPR emphasis on the use of
information technology.
• Both top down and bottom up approaches can be used in implementing TQM, but BPR can
be implemented only through a top-down approach.

BRP

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 • Customer focus -The main objective of BPR is to increase the level of customer
satisfaction.
• Speed – With the use of advanced technologies, the processing speed is expected to be
improved as most of the tasks are automated.
• Compression – It explains the ways of reducing the cost and capital invested in primary
activities, throughout the value chain. It can be done by combining the interrelated activities
or by performing parallel activities in a particular process.
• Flexibility – It is about the adaptive processes and structures used to changing conditions
and competition. By being closer to the customer, the company would be able to develop the
awareness mechanisms to tackle the areas that require improvements.
• Quality – The level of quality can always be maintained with the expected levels of
standards and can be monitored by the processes.
• Innovation – Leadership through innovation provides changes in the organization to
achieve competitive advantage.
• Productivity-It can be improved drastically with effectiveness and efficiency.

b. Explain in detail the five levels of the process maturity model an organization goes through (5)
as it becomes more competent
Ans The following characterizations of the five maturity levels highlight the primary process
changes made at each level:

1) Initial The software process is characterized as ad hoc, and occasionally even chaotic.
Few processes are defined, and success depends on individual effort.

2) Repeatable Basic project management processes are established to track cost, schedule,
and functionality. The necessary process discipline is in place to repeat earlier successes on
projects with similar applications.

3) Defined The software process for both management and engineering activities is
documented, standardized, and integrated into a standard software process for the
organization. All projects use an approved, tailored version of the organization's standard
software process for developing and maintaining software.

4) Managed Detailed measures of the software process and product quality are collected.
Both the software process and products are quantitatively understood and controlled.

5) Optimizing Continuous process improvement is enabled by quantitative feedback from the

process and from piloting innovative ideas and technologies.

(OR)
4 a. Explain software reengineering phases and tasks in detail. (4)
Ans Software Re-Engineering is the examination and alteration of a system to reconstitute it in a
new form. The principles of Re-Engineering when applied to the software development
process is called software re-engineering. It affects positively at software cost, quality,
service to the customer and speed of delivery. In Software Re-engineering, we are improving
the software to make it more efficient and effective.
a) Boost up productivity: Software reengineering increase productivity by optimizing the code
and database so that processing gets faster.
b) Processes in continuity: The functionality of older software product can be still used while
the testing or development of software.

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 c) Improvement opportunity: Meanwhile the process of software reengineering, not only
software qualities, features and functionality but also your skills are refined, new ideas hit in
your mind. This makes the developers mind accustomed to capturing new opportunities so
that more and more new features can be developed.
d) Reduction in risks: Instead of developing the software product from scratch or from the
beginning stage here developers develop the product from its existing stage to enhance
some specific features that are brought in concern by stakeholders or its users. Such kind of
practice reduces the chances of fault fallibility.
e) Saves time: As we stated above here that the product is developed from the existing stage
rather than the beginning stage so the time consumes in software engineering is lesser.
f) Optimization: This process refines the system features, functionalities and reduces the
complexity of the product by consistent optimization as maximum as possible.

b. What is the role of IT in BPR? Identify the key activities where IT can play a facilitation role. (6)
Ans Information technology can play the role of an enabler and an implementer in BPR efforts. It
is to be understood that IT is one of the several enablers in BPR process. Hence, there is
need to analyse its relevance to the BPR process and make a cost vs. benefit analysis. IT
can influence process redesigning instead of just complimenting or supporting it. The
capabilities are positively impacted by improving technology. It can provide the opportunity to
utilize newer and better technology to improve business processes. For this, it is required to
have a knowledge of IT’s present and future capabilities and ways to incorporate them in the
redesigning process. As an implementer in the BPR process, IT can play a facilitation role
with respect to several key activities, like:
• Identifying and selecting processes for redesign
• Identifying enablers for process design
• Defining business strategy and process vision
• Understanding structure and flow of current process
• Measuring performance of current process
• Designing and prototyping the new process
• Implementing and operationalising new processes and associated systems
• Communicating ongoing results of the BPR effort
• Building commitment to BPR

5 Suppose you are managing a grocery store and would like to provide a first-rate shopping (10)
experience to your customers. Outline how you would go about determining factors that are
important to them, how well you are doing in meeting their needs and expectations, and how
you can improve your operations to give them total customer satisfaction. Specifically,
discuss which of the tools that you learned can be used and how.
Ans 1. The store owner who remembers — and appreciates — repeat customers
2. The online merchant that sends personalized video message to each new customer
3. The online store that proactively addresses shipping issues
4. The associate who comes up with the perfect greeting
5. The employees who go out of their way to cheer up a shopper
6. The retailer who finds a way around stockouts
7. The cashier who forges a local connection with shoppers
8. The retail worker who knows his regulars
9. The sales employee who takes the time to find the perfect fit
10. The associate who puts her product knowledge to good use
11. The retailer offering a sincere apology
12. The retailer who makes an effort to upsell and educate customers
13. The kind hearted janitor who went above and beyond for a guest

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 (OR)
6 Describe the process used by your bank for approving a home mortgage. In particular, (10)
highlight the activities that are done or could be done in parallel. What are the pros and cons
of doing these activities in parallel?
Ans While finding a new home can be exciting, navigating the mortgage process can be
overwhelming for some. Knowing what steps you need to take can help the process go more
smoothly. Once you have an accepted offer, here’s what you need to know to make sure
your mortgage application stays on track:

Submit your application. Now that you’ve found the home you want to buy and a lender to
work with, the mortgage process begins. At this stage, your lender will have you fill out a full
application and ask you to supply documentation relating to your income, debts and assets.
Order a home inspection. Schedule a home inspection as soon as you can. Doing so will
give you adequate time before your closing date to negotiate with the seller if the inspection
reveals any unforeseen issues.
Why do I need a home inspection?
A home inspection is an added expense that some first-time homebuyers don’t expect and
might feel safe declining, but professional inspectors often notice things most of us don’t.
This step is especially important if you’re buying an existing home as opposed to a newly
constructed home, which might come with a builder’s warranty. If the home needs big repairs
you can’t see, an inspection helps you negotiate with the current homeowner to have the
issues fixed before closing or adjust the price accordingly so you have extra funds to address
the repairs once you own the home.

During the inspection, be sure to ask questions and bring a checklist of things you want
information on. Note that a comprehensive inspection should not only bring defects and
problem areas to your attention, it should also highlight the positive aspects of a home as
well. When you receive the final report, prioritize the issues and decide whether you want to
negotiate those items with the sellers. Remember: Every deal is different and negotiable.

Be responsive to your lender. If you applied and qualify for a mortgage, you’ll receive
conditional approval. At this stage, your lender may require additional documentation. Make
sure to respond promptly to keep your application moving forward.
Purchase homeowner’s insurance. Your lender will require proof of insurance before the loan
can receive final approval.
5 things to know about homeowner’s insurance
Know about exclusions to coverage. For example, most insurance policies do not cover flood
or earthquake damage as a standard item. These types of coverage must be bought
separately.
Know about dollar limitations on claims. Even if you’re covered for a risk, there may be a limit
to how much the insurer will pay. For example, many policies limit the amount paid for stolen
jewelry unless items are insured separately.
Know the replacement cost. If your home is destroyed, you’ll receive money to replace it only
to the maximum of your coverage, so be sure your insurance is sufficient. This means that if
your home is insured for $150,000 and it costs $180,000 to replace it, you’ll only receive
$150,000.
Know the actual cash value. If you choose not to replace your home when it’s destroyed,
you’ll receive the replacement cost, less depreciation. This is called actual cash value.
Know the liability. Your homeowner’s insurance will generally cover you for accidents that
happen to other people on your property, including medical care, court costs and awards by

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 the court. However, there’s usually an upper limit to the amount of coverage provided – be
sure your coverage is sufficient if you have significant assets.
Let the process play out. Know what’s happening behind the scenes: Your lender will order a
home appraisal to ensure that the value of the home you’re buying is in line with the
purchase price. The appraiser will visit the home and compare it to other recently sold homes
in a similar price range. Your lender will also order a title search to make sure there are no
outstanding liens on the property. Learn more about the home appraisal process
Avoid taking on new debt. While your loan is in process, avoid opening new credit cards or
making other major financial changes. New loans or other changes that affect your debt-to-
income ratio could get in the way of your mortgage approval.
Lock in your rate. If you haven’t already locked in your interest rate with your lender, you’ll
want to do so. Your rate must be locked in no later than 10 days prior to your closing date.
Review your documents. Once your loan is approved and your inspection, appraisal and title
search are complete, your lender will set a closing date and let you know exactly how much
money you’ll need to bring to your closing.
Arrange to pay your down payment and closing costs. You’ll need to get a cashier’s check or
arrange to wire money to cover your down payment and closing costs. Estimate your closing
costs
Close on your home. At the closing, be sure to read all the documents you receive and ask
any questions you may have about the terms of the agreement. Then, after you’ve signed
everything, you can unlock the door and celebrate your new home!
*******************************************All The Best**************************************

Part A, Question No. 1 2 3 4 5

CO mapping CO3 CO3 CO4 CO4 CO5

Part B, Question No. 1 2 3 4 5 6

a b a b a b A b
CO mapping CO5 CO5
CO3 CO3 CO3 CO3 CO4 CO4 CO4 CO4

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