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PACIFIC BELL: CENTREX

REENGINEERING CASE
ANALYSIS
GROUP 3
ROHIT KRISHNAN (14PGP041)
SINDHU NA (14PGP042)
SRAVANA KUMAR (14PGP045)
SANTOSH KUMAR S (14PGP094)
INDIAN INSTITUTE OF MANAGEMENT RAIPUR

ABOUT THE COMPANY


Director of Process
reengineering
Michael Littlejohn
1990 - long term initiative Competitive Readiness
Called for 3 Rs :
Restructuring
Refocusing
Reengineering

Services offered:
Local Exchange Service,
toll service,
network access,
directory advertising
selected information
services
Centrex Flagship project
Features : automatic callback, call
forwarding, call holding call waiting,
conference calling etc.
1.1 million
Centrex Lines
INDIAN INSTITUTE OF MANAGEMENT RAIPUR

AS-IS PROCESS
Highly complex, labour intensive and error prone
13 individuals of various speciality groups
Multiple handoffs were required
An error at any point would lead to rework
Customers were not satisfied with the lead times
Cost effectiveness and quality of the provisioning
process have to improve
INDIAN INSTITUTE OF MANAGEMENT RAIPUR

OBJECTIVES - CENTREX
REENGINEERING
PROJECT
INCREASE
SPEED

MINIMISE
COST

CUSTOMER
SATISFACTION
100%

ERROR FREE
PROCESS

INDIAN INSTITUTE OF MANAGEMENT RAIPUR

THE REENGINEERED
PROJECT
Flow Through
Scenario

Virtual Team
Scenario

More Radical
Scenario

Current State

Proposed Future State

Time : Delivery of service

5 15 days

Same day

Cost : Per day

Baseline

75-80% reduction

Quality defects per day

Customer satisfaction

93%

100%

INDIAN INSTITUTE OF MANAGEMENT RAIPUR

REGIONAL BUSINESS
UNITS
None had implemented the entire proposed design

Implementation of Work Roles

Pilots
2

INDIAN INSTITUTE OF MANAGEMENT RAIPUR

Make a Difference - 1992


Implemented windows based front end within 60 days of
the start of pilot
Maintained old job roles
Problem
Information sharing, Reliance on paper based documents
Led to Delay in fulfilling orders
Valley Central RBU embraced roles during 4th quarter 1992
Was successful here
Rollout in 5 months
10% productivity improvement
Problem
North Coast RBU Union problem
LA , San Francisco Bay RBU didnt embrace Centrex RE
None had implemented the entire proposed design
Implemented new roles
Problem
Costs to provision too high

INDIAN INSTITUTE OF MANAGEMENT RAIPUR

ORANGE
COUNTY

SACRAMENTO

OTHER
RBUs
7

PACE OF CHANGE HAS


BEEN LESS THAN
ANTICIPATED
Opposition from Union members
North Coast Regional Business
Unit

Difference between BPR


and normal change
BPR Expensive

Decentralization
7 Decentralized Units

Changes made during


pilot tests
Virtual team work
Manual work

INDIAN INSTITUTE OF MANAGEMENT RAIPUR

Advantages

Problems

Time, Cost, Quality, and Customer Satisfaction.

The reengineering team did not propose the


BPR by looking in to all the RBUs.

The lead time for simple line order was reduced


from 5 days to 3 days.

Unavailability of the IT- based systems such


as groupware and single system image.

The error has been significantly reduced.


Customer satisfaction had increased.
The no. of people involved had reduced.
The process became less complex.

Scope limitations(only simple centrex


systems for trial)
The trial members were given access to
additional systems from their work stations
but the data from those systems was not
integrated.
RBUs working in silos
Unresolved labour issues

INDIAN INSTITUTE OF MANAGEMENT RAIPUR

Possible Alternatives

Adhoc solutions for RBUs


Inclusivity of Labour Unions
Better Estimation of lead times

INDIAN INSTITUTE OF MANAGEMENT RAIPUR

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THANK YOU

INDIAN INSTITUTE OF MANAGEMENT RAIPUR

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