7/28/2019 Pramod Mohan KambleFinal Winter Project
1/50
r
Mahatma Gandhi Missions
Institute of Management Studies &
ResearchAt Junction NH 4, Sion Panvel Expressway, Kamothe, Navi Mumbai 410 209
PROJECT REPORT
ON
EFFECTIVENESS OF BPR AND BPR IMPLEMENTATION AT
MAHINDRA AND MAHINDRA
SUBMITTED TO
MGMS INSTITUTE OF MANAGEMENT STUDIES &
RESEARCH
NAVI MUMBAI
BY
Mr. PRAMOD MOHAN KAMBLE.
Roll No:-91.
Batch No:-2012-2013
IN PARTIAL FULFILLMENT OF
MASTER OF MANAGEMENT STUDIES (MMS),
UNIVERSITY OF MUMBAI
2012-2013
7/28/2019 Pramod Mohan KambleFinal Winter Project
2/50
TABLE OF CONTAINTS
Cha ter No. Title Pa e No.Declaration rom student IIICertificate from Company/Organization IV
Certi icate rom Guide IVAcknowledgement V
I INTRODUCTION 11.1 Business Process Reen ineerin 31.2 Need of Study 4
1.3 Objectives 51.4 Com an Profile 6II PROJECT DETAILS 102.1 The Principles of BPR 112.2 Techni ues of BPR 14
Implementing Business ProcessReengineering
15
2.3 Implementing Business ProcessReengineering
15
2.4 BPR Performance measure 18
2.5 Difficulties in implementing BPR 19
2.6 The Cost of BPR 20
III DATA PROCESSING ANDANALYSIS
22
3.1 Steps of BPR Implementation 23
3.2 BPR Critical Success Factors For Manufacturing Industry
28
3.3 Problems Faced by Mahindra andMahindra
30
3.4 Comments on the benefits M&Mreaped as a result of BPR program
32
3.5 Condition of Mahindra and Mahindraafter Im lementin BPR
34
V FINDINGS 36-37
VI CONCLUSION 38-39
VII RECOMMENDATIONS 40-41VIII BIBILOGRAPHY 42-43
7/28/2019 Pramod Mohan KambleFinal Winter Project
3/50
DECLARATION
I, Mr. Pramod Mohan Kamble
Here by declare that this project report is the record of authentic work
carried out by me during the period from and has not been submitted to
any other University or Institute for the award of any degree etc.
Signature
(Pramod Mohan kamble.)
Date:
III
7/28/2019 Pramod Mohan KambleFinal Winter Project
4/50
CERTIFICATE
This is to certify that Mr. Pramod Mohan Kamble of MGMs Institute of
Management Studies & Research has successfully completed the project work
titled EFFECTIVENESS OF BPR AND BPR IMPLEMENTATION AT
MAHINDRA ANA MAHINDRA in partial fulfillment of requirement for the
completion MMS as prescribed by the University of Mumbai.
This project report is the record of authentic work carried out by him
during the period
He has worked under my guidance.
Signature
Name: Prof. : Dr. R.S. Gosh
Project Guide (Internal)
Date:-
Counter signed by:-
Signature
Name: Dr. R.S. Gosh
Director
Date:-
IV
7/28/2019 Pramod Mohan KambleFinal Winter Project
5/50
Acknowledgement
It is indeed a matter of great pleasure and proud privilege to be able to present this report on
EFFECTIVENESS OF BPR AND BPR IMPLEMENTATION AT MAHINDRA AND
MAHINDRA The completion of this report is a milestone in student life and its execution is
inevitable in the hands of guide. I would also like to express our deep 0regards to the
directorDr.. It is due to her enduring effort patience and enthusiasm which has given a space
of direction and purposefulness to this Simmer internship. I am highly indebted the guide
Prof. for her invaluable guidance and appreciation for giving form and substance to this
internship. I would like to tender sincere thanks to the staff members for their cooperation I
would wish to thank my friends who have help me all the time in one way or the other.
Really it is highly impossible to repay the debt of all the people who have directly or
indirectly help us for the project.
V
7/28/2019 Pramod Mohan KambleFinal Winter Project
6/50
Chapter Scheme
Chapter No. Title Page no.
1.
2.
3.
4..
5.
6.
7.
Introduction
Project Details
Data Processing
and Analysis
Findings
Conclusions
Recommendation
Bibliography
1
10
22
36
38
40
42
VI
7/28/2019 Pramod Mohan KambleFinal Winter Project
7/50
Chapter 1
INTRODUCTION
1
7/28/2019 Pramod Mohan KambleFinal Winter Project
8/50
Chapter 1
Introduction
This project dives the insight information about the how company uses the Business Process
Reengineering for their different units to overcome the problems which they are facing.
There are lots of problems faced by the companies while implementing the BPR in the
company such as lack of top management commitment for the project.
As more organizations undertake business process reengineering (BPR), issues in
implementing BPR projects become a major concern. This field research seeks empiricallyto explore the problems of implementing reengineering projects and how the severity of
these problems relates to BPR project success.
Recent surveys show that business process re-engineering (BPR) has had widespread
adoption in western countries This has been motivated by case studies where drastic
improvements in quality, Productivity, cost reduction and competitiveness have been
reported.
The rate of failure in reengineering attempts, though, has been reported to be equally high. Itis estimated that over 70 percent of all re-engineering attempts fail to produce bottom-line
improvements.
In today's world of competition 'change' is the keyword .In industries where changes are
going on at alarming speed ,it is needed to switch over from rigid ,heretical business style to
quick, responding and flexible manufacturing. BPR is required to take quantum leaps in
productivity to take competitive advantage. Mahindra and Mahindra have successfully taken
the advantages by implementing BPR in its tractor division.
2
7/28/2019 Pramod Mohan KambleFinal Winter Project
9/50
1.1 What is Business Process Reengineering?
Business process re-engineering (BPR) is the fundamental rethinking and radical
redesign of business processes to achieve dramatic improvement in critical contemporary
measurers of performance such as cost, quality, service and speed. BPR plays vital role
where the business is young and growing. BPR helps in focusing on end customer by
providing competitive advantages to the enterprise.
Business Process Reengineering involves changesin structures and in processes within the business
environment. The entire technological, human, and
organizational dimensions may be changed in
BPR. Information Technology plays a major role
in Business Process Reengineering as it provides
office automation; it allows the business to be
conducted in different locations, provides
flexibility in manufacturing, permits quicker
delivery to customers and supports rapid and
paperless transactions. In general it allows an efficient and effective change in the manner in
which work is performed.
3
7/28/2019 Pramod Mohan KambleFinal Winter Project
10/50
1.2 Need Of Study:
During the team creation of Business Process Reengineering, business and
manufacturing waste that occur in the processes can be easily identified. The business
dynamics today is governed by factors like new technologies, new competitors and again,
new rules of competition. In such an ever-changing business environment,. The need for
BPR thus can be assigned to three Cs viz.; Change, Customer and Competition.
Why companies Reengineer?
The answer is:
To fight increasing competition.
Rapid change in everything itself warrants product development in lesser time, faster
product life cycles and hands-on environmental scanning.
To get Products/services to market faster
the customer is well informed today and further; the organizations need to delight the
customer rather than just satisfying.
To build closer relationships with customers/supplier
intense competition demands the business processes at par with the best practices
prevalent in the industry. Also, the business models have to be focused on individual
market segment the organization is targeting
To reverse declines in market share/profits
To study concept of business process reengineering process.
To dramatically reduce cost.
To reduce Time.
To improve customer service.
To remove the unwanted process (Eliminate the bottleneck process)
Customer satisfaction.
To increase Manufacturing Inefficiencies\
To increase productivity
To reduce production cycle
4
7/28/2019 Pramod Mohan KambleFinal Winter Project
11/50
1.3 Objectives
When applying the BPR management technique to a business organization theimplementation team effort is focused on the following objectives:
Increase Efficiency
As all employeesare aware of the processes to which they belong , they have a greater sense
of responsibility. All processes are completely monitored under the strict control of the
management. The net result of this is that employees deliver high quality products to their
customers.
Reduces Cost
With the proper management of processes, improved efficiency and quick delivery of
products to the buyers, the overall product costs are reduced resulting in cost saving for the
organization in the long run.
Meaningful Job for Employees
As the time lag of product processing between different departments gets reduced due to the
application of business process reengineering, there are more meaningful tasks to be
performed by employees. This leads to increase their levels of motivation and the desire to
perform well.
Improvement in Organizational Approach
According to the traditional approach of managing an organization there is no flexibility or
adaptability to change. The management formulated strict rules for employees of the
organization. Whereas now, when most organizations have implemented business process
reengineering there is an increase in flexibility and adaptability for change. This has created
better environment for people to work, thus leading to employee satisfaction.
Growth of Business
5
7/28/2019 Pramod Mohan KambleFinal Winter Project
12/50
7/28/2019 Pramod Mohan KambleFinal Winter Project
13/50
In this way, the diversity of our expertise allows us to bring our customers the best in many
fields.
Business Interest of Mahindra Group:
A. Automotive Sector: Mahindra Group is the market leader in utility vehicles in India
since inception. Mahindra also manufactures and markets utility vehicles and light
commercial vehicles, including three-wheelers. Some of the famous automobile
brands of Mahindra are: Scorpio and Bolero. Recently, Mahindra joined hands with
French automobile major Renault to enter passenger car segment. It has launched a
car called Mahindra Renault Logan. Qunto is the new compact Experience all the
features packed into this new compact SUV.
B. Farm Equipment Sector: Mahindra is the largest producer of tractors in India and is
among the top five tractor brands in the world. It has its own state-of-the-art plants in
India, USA, China and Australia, and a capacity to produce 1,50,000 tractors a year.
C. Trade & Financial Services: Mahindra Intertrade Limited and its subsidiaries have
specialized domain knowledge in imports and exports of commodities, domestic
trading, marketing and distribution services. Mahindra Finance is one of the largest
Non Banking Finance Companies in India with an asset base of about Rs. 5000
crores. Mahindra Insurance Brokers offer Life and Non-life Insurance plans to retail
and
corporate customers. Mahindra Steel Service Centre is the first steel service centre in
the organized sector in India.
D. Infrastructure Development: Mahindra Group has interests in real estate, special
economic zones, hospitality industry, infrastructure development, project engineering
consultancy and design. Mahindra Holidays & Resorts is the leader in the lifetime
holiday market in India. Mahindra Gesco is fastest growing Construction Company
in India. Mahindra World City is developing and promoting India's first Integrated
Business City. Mahindra Acres Consulting Engineers is a multidisciplinary
E. Information Technology: Mahindra Group entered into IT sector in 1986 when itformed a joint venture with British Telecommunications plc. The company was
called Mahindra-British Telecom. The Company has recently changed its name to
Tech Mahindra. Tech Mahindra is a leading provider of Telecommunication solution
and service industry world-wide. It is India's 8th largest software exporter.
F. Specialty Businesses: Mahindra Group companies such as Mahindra AshTech,
Mahindra Defence, Spares Business Unit and Mahindra Logistics are into Specialty
Businesses. Mahindra AshTech undertakes turnkey contract execution for Ash Slurry
System and Travelling Water Screens. Mahindra Defence Systems looks after the
requirements of India's defence and security forces. Mahindra Logistics provide
7
7/28/2019 Pramod Mohan KambleFinal Winter Project
14/50
complete logistics solutions to complex transportation needs of clients across the
world.
Since 1945, they have built our company around the core idea that people will succeed if
they are just given the opportunity. Employees across the Group constantly challenge
conventional thinking to create solutions that make a significant difference in the lives oftheir customers. Thats why everything they buildbe it a tractor, financial service, solar-
powered lamp, or softwareis designed to empower you to reach your potential. Internally,
they follow three basic tenetsaccepting no limits, thinking alternatively, and driving
positive change in everything we do. These brand pillars guide all our actions and business
decisions from deciding whether or not to enter a new field or planning a portfolio of
services.
they hope youll take what they do and make it your own.
They accept no limits, and ask the same of everyone else. In return, they work relentlesslyto provide the tools, information, and inspiration to push past limitations and comfort zones.
This challenger spirit galvanized us to meet the oil crisis in the 1970s by re-engineering our
fuel efficient tractor engines for utility vehicles. It led us to take on the challenge of
designing the Scorpio utility vehicle at a cost that many industry experts thought was
impossibly low. Theyve created completely new business models to enter areas others had
written off or ignored, like our leading hospitality business and our rural financial services.
And they just registered our highest ever profits despite the worst global recession since the
Great Depression. This determination influences every aspect of our culture and our
employees. As a result, each Mahindra business constantly pushes the envelope and raisesthe bar as they strive to deliver better value to our customers.
They supported the 2010 FIFA World Cupthe worlds biggest sporting event.
About 26 billion people (aggregated) watched the FIFA Football World Cup, held in South
Africa in 2010. This event brought 32 teams to ten different locations across South Africa
for a period of one month. FIFA needed a single IT platform to manage all aspects of the
event. Mahindra Satyam stepped up to create an easy-to-use online Event Management
System to coordinate the event, both locally and globally. Our cloud-based system handledevery detail from volunteer management, transportation services, and venue management to
authorization, multilingual ticketing, hospitality, and conferences. Our 24 member team
provided round-the-clock support to customers, the first time such support was available at
this scale of sporting event. They answered almost 200,000 calls during last-minute ticket
sales.
Results $1.6 billion in sponsorship revenue for FIFA
8
7/28/2019 Pramod Mohan KambleFinal Winter Project
15/50
3.12 million purchasable tickets for 64 games
Ticket sales of over 97 percent
Broadcast to 214 countries on 317 channels
Their motivation to give the best every day comes from their core purpose: we
will challenge conventional thinking and innovatively use all their resources to drive
positive change in the lives of our stakeholders and communities across the worldto
enable them to Rise. Our products and services support our customers ambitions to improve
their living standards; our responsible business practices positively engage the communities
we join through employment, education, and outreach; and our commitment to sustainable
business is bringing green technology and awareness into the mainstream through our
products, services, and light-footprint manufacturing processes.
1. Good corporate citizenship:
We will continue to seek long term success in alignment with the needs of the communities
we serve. We will do this without compromising on ethical business standards.
2. Professionalism:
We have always sought the best people for the job and given them the freedom and the
opportunity to grow. We will continue to do so. We will support innovation and wellreasoned risk taking, but will demand performance.
3. Customer first:
We exist and prosper only because of the customer. We will respond to the changing needs
and expectations of our customers speedily, courteously and effectively.
4. Quality focus:
Quality is the key to delivering value for money to our customers. We will make quality adriving value in our work, in our products and in our interactions with others. We will do it
'First Time Right.'
5. Dignity of the individual:
We will value individual dignity, uphold the right to express disagreement and respect the
time and efforts of others. Through our actions, we will nurture fairness, trust, and
transparency.
Major Achievements of Mahindra Group
Mahindra & Mahindra made the first indigenous Jeep in the country in 1949.
9
7/28/2019 Pramod Mohan KambleFinal Winter Project
16/50
Fourth largest tractor company in the world.
Largest manufacturer of tractors in India.
Largest manufacturer of MUVs, offering over 20 models
Chapter 2
Project details
10
7/28/2019 Pramod Mohan KambleFinal Winter Project
17/50
CHAPTER 2
PROJECT DETAILS
2.1) THE PRINCIPLES OF BUSINESS PROCESS REENGINEERING
The key principles of Business Process Reengineering that should present the working life
of any organization a spring to operate business process reengineering are as follows.
A. Customer focus:Customer service oriented processes aiming to eliminate customer
Complaints.
B. Speed:Dramatic compression of the time it takes to complete a task for key business
Processes. For instance, if process before BPR had an average cycle time 5 hours, after
BPR the average cycle time should be cut down to half an hour.
C. Compression:Cutting major tasks of cost and capital, throughout the value chain.
Organizing the processes a company develops transparency throughout the operational
level reducing cost. For instance the decision to buy a large amount of raw material at
50% discount is connected to eleven cross checking in the organizational structure from
Cash flow, inventory, to production planning and marketing. These checking become
Easily implemented within the cross-functional teams, optimizing the decision making
and cutting operational cost.
D. Flexibility: Adaptive processes and structures to changing conditions and
competition
11
7/28/2019 Pramod Mohan KambleFinal Winter Project
18/50
Being closer to the customer the company can develop the awareness mechanisms to
Rapidly spot the weak points and adapt to new requirements of the market.
E. Quality:Obsession with the superior service and value to the customers. The level of
quality is always the same controlled and monitored by the processes, and does not
depend mainly on the person, who servicing the customer.
F. Innovation: Leadership through imaginative change providing to organization
Competitive advantage.
G. Productivity: Improve drastically effectiveness and efficiency.
Principles of Reengineering
Organize around outcomes, not tasks
Combine several specialized task performed by different people should be combined into
a single job
The new job created should involve all the steps in a process that creates a well-defined
outcome
It provides a single knowledgeable point of contact for the customer
E.g. banks
Have those who use the output of the process perform the process
Work should be carried out where it makes the most sense to do it.
This results in people closest to the process actually performing the work.
Relocating the work in this fashion eliminates the need to co-ordinate the performers and
12
7/28/2019 Pramod Mohan KambleFinal Winter Project
19/50
users of a process.
E.g. purchase
Merge information-processing work into the real work that produces the information
People who collect information should be responsible for processing it.
It greatly reduces the errors by cutting the number of external contact points for a
process
E.g. Account payable department
Treat geographically dispersed resources as though they were centralized
Parallel processing of work by separate organizational units that perform the same job
Link parallel activities instead of integrating their results
Link parallel activities that must come together instead of integrating their results
E.g. quality and quantity check
Put the decision point where the work is performed, and build control into the process
Decision making should be made part of the work performed
Control should be made part of each process
Capture information once and at the source
Information should be collected and captured in the company online information system
only once at the source it was created
Guidelines for implementation of BPR:
Codification of reengineering
Clear goals and consistent feedback
High executive involvement in clinical changes
13
7/28/2019 Pramod Mohan KambleFinal Winter Project
20/50
2.2) TECHNIQUES OF BUSINESS PROCESS REENGINEERING
The techniques of BPR are as follows:-
1) Empowerment: This is the transfer or delegation of responsibility and authority.
Without this, empowerment fails. This works best if these four forces are operating
simultaneously.
a) The delegator (manager) has established a clear vision, what the goals are and has
communicated to the subordinates.
b) The delegator has established high personal and business standards and has
consistently demonstrated those standards through his actions.
c) The delegator has established close relationship with subordinate and has trusted
them to make decision.
d) The delegator is willing to let subordinates make mistakes, and only intervenes to
prevent disaster.
2) Employee Participation and Involvement: In decision-making and problem solving
processes.
3) Creativity and innovation: Valuing and respecting contrary ideas, and encourage
employee with good initiative.
4) Management By Score Keeping: This borders around performance appraisal and
feedback interview. When performance is measured and reported back, the rate of
improvement accelerates.
5) Team Building: When several people work together to achieve a well-defined goal,
the result of many far exceeds the result of a few. This is referred to as synergy, the most
important benefit of team performance.
14
7/28/2019 Pramod Mohan KambleFinal Winter Project
21/50
6) Managers Skill Development Or Appraisal: For effective implementation of BPR,
periodic skill development is essential for all Cadres of managers.
2.3) IMPLEMENTING BUSINESS PROCESS REENGINEERING
Having the management commitment for change, another very important factor for
implementing BPR, is the enabling role of Information Technology. The way that businesses
are organized around departments is very logical since, for instance, there were physical
barriers in the communication of the accounting department with production department.
(The warehouse could be in another location in the other part of the city). So it wasn't
possible for a cross-functional team to communicate efficiently. In the 90s when
telecommunication technologies were becoming abundant and low costing BPR was
becoming a world-wide applicable managing technique for business upgrade, enabled by the
technology. Employees can easily operate as a team using intranets/extranets, workflow and
groupware applications, eliminating distances. We can work together even though we are
located in different places.
Empowering people: Empowerment means giving people the ability to do their
work the right information, the right tools, the right training, the right environment,
and the authority they need. Information systems help empower people by providing
information, tools and training.
Providing Information:Providing information to help people perform their work is
a primary purpose of most information systems although they provide information inmany different ways. Some systems provide information that is essential in
informing a business process, such as the prices used to create a customers bill at a
restaurant. Other systems provide information that is potentially useful but can be
used in a discretionary manner, such as medical history information that different
doctors might use in different ways.
Providing Tools:In addition to providing the right information, empowering people
means giving them the right tools. Consider the way planning analysts produce
15
7/28/2019 Pramod Mohan KambleFinal Winter Project
22/50
consolidated corporate plans based on plans of individual divisions and departments.
If the plans are submitted on paper, it is a major task to add up the numbers to
determine the projected corporate bottom line. When the plan is changed during a
negotiation process, the planning analyst has to recalculate the projected results.
Providing Training: Since information systems are designed to provide the
information needed to support desired work practices, they are often used for training
and learning. As shown by an expert system and a decision simulator, they
sometimes provide new and unique training methods.
IBM developed an expert system for fixing computer disk drives. The expert system
was an organized collection of the best knowledge about fixing these disk drives, and
it fostered rapid and efficient training. Before the system was developed, technicians
typically took between 1 and 16 months to become certified, but with the expert
system, training time dropped 3 to 5 months.
Eliminating Unproductive Uses of Time: Information systems can reduce the
amount of time people waste doing unproductive work. A study of how professionals
and managers at 15 leading U.S. corporations spent their time concluded that many
professionals spent less than half of their work time on activities directly related to
their functions. Although the primary function of salespeople is selling, the time
breakdown for salespeople averaged 36 percent spent on prospecting and selling, 39
percent spent on prospecting an selling, 3 percent on servicing accouts, 19 percent on
doing administrative chores, and 6 percent on training. Better use of information
systems could save much of their unproductive time performing chores such as
collecting product or pricing information, determining order status for a customer,
resolving invoice discrepancies, and reporting of time and expenses.
Eliminating Unnecessary Paper: One common way to improve data processing is
to eliminate unnecessary paper. Although paper is familiar and convenient for many
purposes, it has major disadvantages. It is bulky, difficult to move from place to
place, and extremely difficult to use for analyzing large amounts of data. Storing data
in computerized form takes much less physical space and destroys fewer forests, but
that is only the beginning. It makes data easier to analyze, easier to copy or transmit,
16
7/28/2019 Pramod Mohan KambleFinal Winter Project
23/50
and easier to display in a flexible format. Compare paper telephone bills with
computerized bills for a large company. The paper bills identify calls but are virtually
impossible to analyze for patterns of inefficient or excessive usage
Eliminating Unnecessary Variations in the Procedures and Systems: In many
companies, separate departments use different systems and procedures to perform
essentially similar repetitive processes, such as paying employees, purchasing
supplies, and keeping track of inventories. Although these procedures may seem
adequate from a totally local viewpoint, doing the same work in different ways is
often inefficient in a global sense. Whenever the systems must change with new
technology, new regulations, or new business issues, each separate system must be
analyzed separately, often by someone starting from scratch.
Minimizing the Burden of Record Keeping: Data Handling, and General Office
WorkSince processing data is included in most jobs, improving theway people process data is an obvious place to look for information system
applications.
Focus on basic data processing tasks: Reducing the burden of record keeping means
being more efficient andeffective with the six components of data processing. Those
components are capturing, transmitting, storing, retrieving, manipulating, and
displaying data.
Capture data automatically when generated: Capturing data automatically at the
time of data generation is especially important in minimizing the burden of record
keeping.
17
7/28/2019 Pramod Mohan KambleFinal Winter Project
24/50
2.4) BUSINESS PROCESS REENGINEERING PERFORMANCE
MEASURES
1) Top Management Commitment
The degree of visibility and support that management takes in implementing a total quality
environment is critical to the success of BPR implementation..
2) Customer Involvement and Satisfaction
Customer satisfaction is achieved by ensuring that drawings and specifications are
communicated to the rest of the parties should there be any changes. The parties affected by
the changes can then promptly adjust their information
And help to reduce the amount of time wasted.
3) Employee Involvement and Empowerment
This is done by allowing its project managers to take full responsibility and make decisions
for their project. Project managers are allowed to make financial decisions but must ensure
that the project budget is not exceeded.
They should refer the issue back to the top management of Organization if they are not sure
of the appropriate decision. Employees are encouraged to present improvement and cost
saving suggestions to management and to a certain degree, are allowed to self-implement
solutions.
4) CustomerSupplier Relationship
As for evaluating suppliers in order to identify if the organization should offer more jobs to
them in the future Organizations monitor the work performance in terms of work done intime, quality and cost.
18
7/28/2019 Pramod Mohan KambleFinal Winter Project
25/50
BUSINESS PROCESS REENGINEERING PERFORMANCE MEASURES
2.5) THE DIFFICULTIES IN IMPLEMENTING BPR
The implementation of BPR into an organization requires fundamental organizational culture
change. Changing an organizations culture is a very difficult task, which often faces
resistance. The challenge of implementing BPR results from the fact that BPR is not a
slogan, nor a tool, nor a program it is an organization paradigm. The concept of BPR is
broad enough to be the frame-work or foundation of an organizations culture. Therefore
19
7/28/2019 Pramod Mohan KambleFinal Winter Project
26/50
implementing BPR might deal with replacing, and not only modifying, the organizations
culture. The major obstacles in implementing BPR are:
1. Inadequate knowledge and information about BPR
2. Doubts of employee are about managements intentions.
3. Failure of Management to maintain interest and commitment over a long period
of time.
4. Difficulty in measuring the effectiveness of BPR
5. Poor internal communication
6. Difficulty in assessing customer expectations and satisfaction.
7. Insufficient training Resources.
8. Poor Information Technology
9. Higher Cost of Implementation
2.6) THE COST OF BPR
Duration
The BPR technique, in general, is not a time consuming process. The duration of each BPRproject varies from 6 -to 10 months.This variation relates to the kind of business and the
Extend to which BPR is going to be implemented. Moreover, it depends on the techniques
and methodology that each consulting company (that usually participates in the procedure) is
using.
Implementation Cost
The implementation of a BPR project consists of two stages:
20
7/28/2019 Pramod Mohan KambleFinal Winter Project
27/50
1. The process management and redesign study and consulting stage.
2. The implementation of the redesigned process using IT tools including employee training
and introduction of the new processes to the company organizational structure.
Stage Description Cost in
Euro
1 The process management and redesign study and consulting. From 4000 to 7000
2 The implementation of the redesigned process using IT tools From 5000 to 9000
Including employee training and introduction of the new
Processes to the company organizational structure Total From 9000 to16000
Conditions for implementation (infrastructures required etc.)
Infrastructure requirements:
An operating transactional and accounting computerized system inclosing the commercial
part of the transactions.
A network that connects all key personnel.
Workstations with Windows NT or Windows 1995 system, XP or latest version.
An exchange server (MS outlook, or MS back office)
21
7/28/2019 Pramod Mohan KambleFinal Winter Project
28/50
CHAPTER 3
DATA PROCESSING AND ANALYSIS
22
7/28/2019 Pramod Mohan KambleFinal Winter Project
29/50
3.1) IMPLEMENTATION PROCEDURE OF BPR
Steps / Phases of a BPR project
A BPR project consists of specific steps aiming to a successful outcome.. The necessary
Steps in a rapid re-engineering methodology are the following as they presented.
STEP ZERO - preparation and coordination of the project.
Duration:Two days Participants:BPR team, BPR consultants..
Objectives:
To establish a strong management support
To explain to the members of the BPR implementation team the implementation
details of the project and their role in the successful outcome in the BPR effort.
Actions taken:
Explain to the top-level management the necessity to commit to the BPR project.
Allocate the most capable employees to the BPR implementation team and assign
roles for each one of them.
23
7/28/2019 Pramod Mohan KambleFinal Winter Project
30/50
Run an 8-hour workshop having as participants the members of the BPR
implementation team. The consultants will present the project step by step, as well
as, the role of the implementation team in the success of the project.
STEP 1 - Business diagnosis & measurements
Duration: 4 weeks Participants: BPR team, BPR consultants, personnel involved with
processes
Objectives:
To diagnose & identify problematic areas in the current processes
To measure the performance characteristics of the current processes based on
measurable factors such as average cycle time, delays, number of mistakes or
number of customer complaints.
Actions taken:
Record physical on the site measurements for each step of a process related to time,
resources spent or efficiency.
Input all measurements in the process management tool for further evaluation and
analysis.
Identify added value processes that have a major impact on customer service.
STEP 2 - Selection of processes for change and modeling.
Duration:7 weeks Participants:BPR team, BPR consultants.
Objectives:
To identify the strategic processes that are feasible to change
24
7/28/2019 Pramod Mohan KambleFinal Winter Project
31/50
To redesign and model the selected processes
Actions taken:
Set the characteristics of the processes that are more important to the organizational
Goals.
Based on the characteristics identify the processes that will change based on the
added value they provide and their feasibility for change.
Redesign processes based on the characteristics that serve the organizational goals
Simulate the processes in running environment using the process management tool
Model the new process using the diagramming tool of the process management tool
STEP 3 - Technical design of the solution
Duration:10 weeks
Participants:BPR team, BPR consultants, IT experts.
Objectives:
To automate modeled business processes (step 2) using networks and workflow tools
To redesign and model the selected processes
Actions taken:
Establish network connections between process team members.
Prepare intranet applications to exchange forms and documents between team
members
Prepare workflow application that will implement each step in the redesigned
process automatically.
25
7/28/2019 Pramod Mohan KambleFinal Winter Project
32/50
STEP 4 - Personnel adjustment & training.
Duration: 10 weeks
Participants: Process team members, process coordinator, trainers.
Objectives:
To train Personnel in the new ways of working using IT in the redesigned processes.
To redesign and model the selected processes
Actions taken:
Adjust each position according to skills needed in the new process.Provide training
in the operation of new processes, so employees will feel comfortable in thechanging job environment
STEP 5 - Management of change & employee empowerment.
Duration: 1 week
Participants: BPR team, BPR consultants, process team, executive management.
Objectives:
To establish a positive attitude for the change between employees
To minimize the resistance to change between employees by empowering their
position based on performance appraisal and bonus systems.
Actions taken:
Establish executive management determination for change and determinate any
attempts of resistance to change.
26
7/28/2019 Pramod Mohan KambleFinal Winter Project
33/50
Facilitate the change process outlining the positive effects of change
STEP 6 - Introduction of new processes into business operations.
Duration: 2 weeks
Participants: The whole business organization
Objectives:
To set the time and date of operating under the new processes, emphasizing the fact
that working under the old processes is not an acceptable practice.
Actions taken:
Prepare and test all background resources (IT, documents, equipment)
Set time and date for operating under the new processes.
Do not allow any non-conformities in the operations of new proces
27
7/28/2019 Pramod Mohan KambleFinal Winter Project
34/50
3.2) BPR CRITICAL SUCCESS FACTORS FOR MANUFACTURING
INDUSTRY
28
7/28/2019 Pramod Mohan KambleFinal Winter Project
35/50
1. Top management commitment
2. Process management
3. Education and training
4. Empowerment and involvement
5. Information and analysis
6. Customer satisfaction
1. Top management commitment
Research suggests that most quality tools associated with BPR do not generally produce
an advantage, but a certain tacit behavioral feature such as executive commitment can
produce an advantage. Many a time BPR initiatives have failed to fulfill their potential
due to lack of senior management commitment to the quality process. Thus, for BPR,
commitment by the management is essential. Without it; there is no need to proceed further.
2. Process management
Process management focuses on managing the construction process so that it operates as
expected, without breakdowns, shortage/missing materials, tools, etc. It is needed to reduce
rework and waste due to misspecification of processing parameters. This provides clarity of
ownership and less reliance on inspection. In the context of construction, specific activities
like planning the sequence of field tasks, analysis of layout, access, temporary facilities,
Innovative use of materials, innovative use of construction equipment and tools, and the
use of pre-assembly or pre-fabrication items are carried out. Also, constructability is
included
in the contract document. Pre-work, demobilization, execution are a part of process
management.
3. Education and training
29
7/28/2019 Pramod Mohan KambleFinal Winter Project
36/50
Education and training forces employees to not only possess the adequate knowledge
and skills to perform their jobs, but also to possess specific values, knowledge, and skills
associated with BPR issues and activities. Reasons cited for the failure of BPR initiative
include the lack of appropriate training and inadequate knowledge. Thus employees will be
motivated to engage in quality-oriented behavior when their roles and the relevance of their
training to overall quality goals are clarified.
4. Empowerment and involvement
Empowerment and involvement enhances the individual's self-esteem and improves
his/her ability to solve problems and to make low-risk decisions. Worker motivation,
responsibility, and accountability are generic concepts that can benefit any business
organization. The causes of ongoing quality problems like lack of team work, conflict, and
lack of worker involvement are overcome by personally participating in quality
improvement activities, which leads to the success of BPR.
5. Information and analysis
Information and analysis consist of evaluation for various policies and strategies, quality
audit, analysis of quality costs, department/function performance evaluation, and employee
and supplier performance evaluation
6. Customer satisfaction
A construction organization may outperform the competition by being able to anticipate and
respond quickly to customers demands with new ideas and technologies and to produce
constructed facilities that satisfy or exceed customers expectations. Despite the use of the
latest process improvement techniques and capable management, a firm's neglect of Its
customers may lead to disaster. Without customer focus, the BPR programme will lack the
foundations on which to build further.
30
7/28/2019 Pramod Mohan KambleFinal Winter Project
37/50
3.3) Problems Faced by Mahindra and Mahindra:
Factors
Manufacturing Inefficiencies: The Company Facing some problems in the
manufacturing department the some machines were not working and giving the less
output than required.
Poor productivity: The poor manufacturing efficiency leads to the poor productivity
for which BPR is the very essential tool.
Long production cycle: The Finished product required the longer time to produce in
the different department.
Sub-optimal output.
Unhealthy work culture
Corruption was widespread
Decision to focus on enhancing productivity and delivering world-class quality at theleast possible cost.
Ambition to become the largest tractor manufacturer in the world.
The three Cs (customers, competition, change)
M & M faced resistance from unions while implementing BPR
Fear of Downsizing
31
7/28/2019 Pramod Mohan KambleFinal Winter Project
38/50
Analyze the BPR implementation exercise at M & M
Implementation started in mid 1990s
Resistance from the unions
Re-engineering the layout and method of working
Cellular Manufacturing
Multi-tasking through multi-machine manning
Reduction in non-productive activities
Implementation of TPM & Kaizen
32
7/28/2019 Pramod Mohan KambleFinal Winter Project
39/50
3.4) Comments on the benefits M&M reaped as a result of BPR program
Around a 100 officers produced 35 engines a day as compared to the 1200 employees
producing 70 engines in the pre-BPR days
Igatpuri Plant: Employees declined by 400 but productivity went up by 125 engines
per day
Nasik Plant: 125% improvement in productivity
Reduction in employee costs
Value added per employee increased from 0.3 million to 0.46 million
BPR was a way of reengineering our plants and making them viable in a
competitive environment
Better inventory control
Better sourcing
Better order distribution across plants
Online availability of data
Transparent access to data
Process transparency
Integrated sales and supply chain
33
7/28/2019 Pramod Mohan KambleFinal Winter Project
40/50
Drastic reduction in work in process cost
Near about two time increase in productivity
Lead Time reduces to 30%
Scrap Material reduces to Large Extent
3.4.1) Measures taken by manager in a shop floor to ensure BPR success:
Training and Motivating workforce
Identifying leaders
Creating a conducive environment and changing work culture
34
7/28/2019 Pramod Mohan KambleFinal Winter Project
41/50
3.5) Condition of Mahindra and Mahindra after Implementing BPR:
Highlights:
Improve PTLs capacity utilization from 45% to 55%
6 to 8% growth in the tractor segment
Mahindra & Mahindras Farm Equipment Sector (FES), a part of the U.S. $7.1 billion
Mahindra Group, maintained its leadership position in the tractor industry Total tractor sales
(domestic + exports) in October 2010 stood at 24281 units, as against 18772 units for the
same period last year, an increase of 29%. total cumulative sales (domestic + exports) stood
at 119938 units, as compared to 102639 units for the corresponding period last year, an
increase of 17%.Domestic sales is 23378 units, as against 17796 units for the same period
last year, thereby registering a growth of 31%. This is by far the highest ever monthly
domestic sales. The exports stood at 903 units, as against 976 units .
35
7/28/2019 Pramod Mohan KambleFinal Winter Project
42/50
Condition of Mahindra and Mahindra after Implementing BPR:
Mahindra and
Mahindra sales
Before
implementation of
BPR sales in units
After
implementation of
BPR sales in units
tractor segmentsales
18772 24281
cumulative sales 102639 119938
domestic sales 17796 23378
export 903 976
36
7/28/2019 Pramod Mohan KambleFinal Winter Project
43/50
CHAPTER-4
FINDINGS
37
7/28/2019 Pramod Mohan KambleFinal Winter Project
44/50
CHAPTER-4
FINDINGS
Some of the key findings during the project are as follows:-
Leadership and commitment by top management is the most critical factor for the
successful implementation of BPR in building construction. Once it is known exactly
where the organization is, the manager can take steps to improve the overall
effectiveness of total quality management.
This study also found out that the first five critical problems of BPR implementation
are -:
(1) Customer focus;
(2) Relationship with supplier, contractor and subcontractor;
(3) Leadership and commitment of top management;(4) Employee involvement and commitment; and
(5) Education and training.
These five priority factors should be given more attention in order to achieve
satisfactory level.
38
7/28/2019 Pramod Mohan KambleFinal Winter Project
45/50
CHAPTER-5
CONCLUSION
39
7/28/2019 Pramod Mohan KambleFinal Winter Project
46/50
CHAPTER-5
CONCLUSION
BPR is world-wide applicable technique of business restructuring focusing on business
Processes, providing vast improvements in a short period of time. The technique
Implements organizational change based on the close coordination of a methodology for
Rapid change, employee empowerment and training and support by information
Technology. In order to implement BPR to an enterprise the followings key actions need
to take place:
Selection of the strategic (added-value) processes for redesign.
Simplify new processes - minimize steps - optimize efficiency -.(modeling).
Organize a team of employees for each process and assign a role for process
Co-coordinator.
Organize the workflow - document transfer and control.
Assign responsibilities and roles for each process.
Automate processes using IT(Intranets, Extranets, Workflow Management)
Train the process team to efficiently manage and operate the new process
Introduce the redesigned process into the business organizational structure
A single point of contact is provided to customers.
A hybrid centralized/decentralized operation is used
It requires management skills o f a h ig h o r de r and is frequently undertaken by firms
with little or no formal training in management. To complete the structure fit for its purpose,
right first time, and to predetermined quality standards requires not only planning,
organizing, budgeting, controlling and careful adherence to an overall project management
system but a l s o a h ig h level of understanding o f h u man motivation and behavior
40
7/28/2019 Pramod Mohan KambleFinal Winter Project
47/50
within prescribed contractual obligations.BPR is a continuous process of incremental
improvements.
CHAPTER-6
RECOMMENDATIONS
41
7/28/2019 Pramod Mohan KambleFinal Winter Project
48/50
CHAPTER-6
RECOMMENDATIONS
The following some of the recommendations that will help the BPR to reach greater
heights:-
The performance of Business Process Reengineering must be carried out
permanently in the company to prevent all budget overrun, progress slow, reworks
may be happening from the existing projects and future projects.
The performance of Business Process reengineering must be concerned from the top
management to everybody in the company.
Examine the BPR methods being used to determine if the contractor is properly
controlling design and construction activities as per the standard requirements.
Also it is very important to provide the opportunity to the employees of the
organization to express their ideas or whatever they want to express.
Management should involve the workers representatives in all managerial activities
so that the transparency could be maintained and through this they can win the
confidence of the employees.
42
7/28/2019 Pramod Mohan KambleFinal Winter Project
49/50
Management should give due importance to mental relaxation & social cultural
development of the employees who strives hard for the company.
CHAPTER 7
BIBILOGRAHY
43
7/28/2019 Pramod Mohan KambleFinal Winter Project
50/50
CHAPTER 7
Bibliography
E- Books:
Cary, Howard B.; Helzer, Scott C. (2005),Modern Welding Technology, Pearson
Education Raj, Baldev; Jayakumar, T.; Thavasimuthu, M. (2002), Practical non-destructive
testing, Woodhead Publishing Annual book of American society for testing and material standards: volume 5
Wikipedia, online encyclopedia.