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INTRODUCTION  Hammer & Champy: “Reengineering is the fundamental rethinking & radical redesign of business process to achieve dramatic improvements in performance” Obeing & Craner: “Its about changing anything which provides a block to improving today’s business performance”  .

.   BPR seeks improvements of cost.INTRODUCTION  Method used to redesign an organization to improve efficiency & effectiveness. quality. service & speed. Strategy in making improvements in the business processes.

HISTORY    Michael Hammer first advocated the concept of BPR Similar idea was advocated by Thomas H. 65% of the fortune 500 companies implemented BPR Michael Hammer . Davenport & J. Short By 1993.

STEPS FOR IMPLEMENTING BPR Prepare for Reengineering Map and Analyze As-Is Process Design To-Be process Implement Reengineered Process Improve Process Continuously .

Create Process Model. Perform Trade-off Analysis. Identify disconnects and value adding processes.STEPS FOR IMPLEMENTING BPR  Prepare for Reengineering : Build Cross functional team Identify customers driven objective Develop Strategic purpose. Simulate and perform ABC.  Map and Analyze As-Is Process : Create activity model. Design To-Be Process.  Design To-Be process: Benchmark processes. . Validation To-Be Process.

 Improve Process Continuously: Initiate ongoing. . Review performance against target. Prototype and simulate transaction plans. Improve process continuously. Initiate Training programs. Implement transaction plan.STEPS FOR IMPLEMENTING BPR (CONT…)  Implement Reengineered Process: Evolve Implementation Plan.

then the customers would automatically want to buy that product or service again. Efficiency: How efficient is the company that is manufacturing the product before introducing it to the market to minimise costs? This is one of the key categories that is believed to be more important than any others. If a manufacturing company can master the skill of being efficient then they can automatically be more customer friendly and effective.KEY TARGETS  Customer Friendly: One of the main goals of introducing BPR is to get a competitive edge and that can only be gained by providing the customers more than what they expect.   . Effectiveness: How effective is the product or service that the business or manufacturing company providing the customer? If whatever product or service the business might be providing to the customer is successful.

BENEFITS OF BPR Improve Efficiency e.g reduce time to market.g deliver higher quality Achieve Cost Saving in the longer run Provide more Meaningful work for employees • • • Increase Flexibility and Adaptability to change . provide quicker response to customers. • • Increase Effectiveness e.

Managing diversity Making old & new teams work together Acting as a catalyst to promote smooth acceptance of change . Recruitment of skilled staff for the BPR Smooth lay-off.ROLE OF HR         Involvement of HR department during the discussions on BPR Identification of in house talent to take New responsibilities Training of existing staff for new skills.

.ROLE OF HR (CONT. Communicating to the give clarity Integrate HR plan to new processes.)     Facilitating benchmarking of New Operating Procedures. Developing competitive compensation packages .

business activities and even life in general. .WHAT IS KAIZEN?  Kaizen (Japanese word for "improvement") refers to a philosophy or practices that focus upon continuous improvement in manufacturing activities. depending on interpretation and usage.

with most variables in the control of the kaizen team 3.KAIZEN V/S BPR Who leads? The people that actually do the work Usually consultants. somewhat repetitive cycle Type of process . that involve complex. that involve low technology 4. highly-repetitive cycles Is a "project" with a defined beginning and end Re-engineering works best for processes: 1. with medium-length. integrated technologies 4.. that cross organizational boundaries 2. with short. forever Kaizen works best for processes: 1.. and a crossfunctional Project Team Duration Never ending. with complex interrelationships of variables 3. top management. Every subprocess should be kaizened repeatedly. with well-defined boundaries 2.

Degree of change Changes can be incremental or radical .and usually affect an entire integrated process Speed Generally implemented in a Big Bang changeover Acceptance Since the people that actually do the work are the ones making the changes acceptance is very high Most "lean" changes are inexpensive or even free High risk of things reverting back to the way they were soon after the consultants leave Often involves expensive technologies. and other "systems" Cost .but usually only affect a limited sub-process at a time Each kaizen event generates immediately noticeable and measurable changes Changes can be incremental or radical . computers.

Long production cycle. . Poor productivity. Sub-optimal output.COMPANY: MAHINDRA & MAHINDRA [IGATPURI AND KANDIVALI (MH)]  Problems before BPR started: • • • • Manufacturing inefficiencies.

trade and financial services.  M&M's core activities.  .M&M introduced a new organizational model. telecommunication and automotive components. each headed by a president. in which various divisions and companies were regrouped into six distinct clusters of related businesses.  The other activities of the group were organized into infrastructure. automotive and tractors were made autonomous business units.

and productivity. the workers ended the strike and began work in exchange for a 30% wage hike.   . BPR implementation gained momentum. M&M realized that it would have to focus on two issues when implementing the BPR program: reengineering the layout and method of working. After five months. As the situation returned to normalcy. Around a 100 officers produced 35 engines a day as compared to the 1200 employees producing 70 engines in the pre-BPR days.M&M'S EXPERIENCE WITH BPR   Senior staff began working on the shop floors.

80 Hrs of training was prescribed for every employee. team building & interpersonal skills. . personality profiles. Courses in cultural orientation .CHANGES REQUIRED ON BEHAVIORAL SIDE IN RE-ENGINEERING: To lower resistance to new philosophy & unfamiliar methods.

CRITIQUE        Massive lay-offs disregard the status quo poor project management. exaggerated expectations regarding the potential benefits overtrust in technology underestimation of the resistance never changed management thinking .