GROUP MEMBERS

ADITI APTE BRINAL DMONTE CALVIN PINTO 10 FARHAN KAZI KENNETH MATHEWS 24

01 08 16

FLOW OF THE PRESENTATION

INTRODUCTION HISTORY STEPS IN IMPLEMENTING BPR KEY TARGETS BENEFITS ROLE OF HR IN BPR KAIZEN V/S BPR CASE STUDY CRITICISM & CONCLUSION

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 todays business performance

INTRODUCTION

Method used to redesign an organization to improve efficiency & effectiveness. Strategy in making improvements in the business processes.

BPR seeks improvements of cost, quality, service & speed.

HISTORY

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

Michael Hammer

STEPS FOR IMPLEMENTING BPR

Prepare for Reengineering Map and Analyze As-Is Process Design To-Be process Implement Reengineered Process Improve Process Continuously

STEPS FOR IMPLEMENTING BPR

Prepare for Reengineering :

Build Cross functional team Identify customers driven objective Develop Strategic purpose.

Map and Analyze As-Is Process :

Create activity model. Create Process Model. Simulate and perform ABC. Identify disconnects and value adding processes.

Design To-Be process:

Benchmark processes. Design To-Be Process. Validation To-Be Process. Perform Trade-off Analysis.

STEPS FOR IMPLEMENTING BPR (CONT)

Implement Reengineered Process:

Evolve Implementation Plan. Prototype and simulate transaction plans. Initiate Training programs. Implement transaction plan.

Improve Process Continuously:

Initiate ongoing. Review performance against target. Improve process continuously.

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, 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.

BENEFITS OF BPR
Improve Efficiency e.g reduce time to market, provide quicker response to customers.

Increase Effectiveness e.g deliver higher quality Achieve Cost Saving in the longer run Provide more Meaningful work for employees

Increase Flexibility and Adaptability to change

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, Recruitment of skilled staff for the BPR Smooth lay-off. Managing diversity Making old & new teams work together Acting as a catalyst to promote smooth acceptance of change

ROLE OF HR (CONT..)

Facilitating benchmarking of New Operating Procedures. Communicating to the give clarity Integrate HR plan to new processes. Developing competitive compensation packages

WHAT IS KAIZEN?

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

KAIZEN V/S BPR

Who leads? The people that actually do the
work Usually consultants, top management, and a crossfunctional Project Team

Duration

Never ending. Every subprocess should be kaizened repeatedly... forever

Kaizen works best for processes: 1. with well-defined boundaries 2. with most variables in the control of the kaizen team 3. that involve low technology 4. with short, highly-repetitive cycles

Is a "project" with a defined beginning and end

Re-engineering works best for processes: 1. that cross organizational boundaries 2. with complex interrelationships of variables 3. that involve complex, integrated technologies 4. with medium-length, somewhat repetitive cycle

Type of process

Degree of change

Changes can be incremental or radical - 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 - 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, computers, and other "systems"

Cost

COMPANY: MAHINDRA & MAHINDRA [IGATPURI AND KANDIVALI (MH)]

Problems

before BPR started:

Manufacturing inefficiencies. Poor productivity. Long production cycle. Sub-optimal output.

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

M&M'S EXPERIENCE WITH BPR

Senior staff began working on the shop floors. Around a 100 officers produced 35 engines a day as compared to the 1200 employees producing 70 engines in the pre-BPR days. After five months, the workers ended the strike and began work in exchange for a 30% wage hike. As the situation returned to normalcy, 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, and productivity.

CHANGES REQUIRED ON BEHAVIORAL SIDE IN RE-ENGINEERING:

To lower resistance to new philosophy & unfamiliar methods, 80 Hrs of training was prescribed for every employee.

Courses in cultural orientation , personality profiles, team building & interpersonal skills.

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