Assignment No.
01
Talha Alam Khan
IM-045
Business Process Re-Engineering
Question 1:
Why did the management introduce World Class Manufacturing (WCM) Program?
Answer 1:
The management introduced World Class Manufacturing (WCM) Program to examine lagging
performance results. The target of World Class Manufacturing Program was to reduce defects, production
in short cycles and materials management. The main reason for which the WCM Program was introduced
was to reduce defects by a factor of 10 (1,000%) and cycle time by a factor of 5 (500%).
Question 2:
How did the TotalPlantTM, the factory focused program, help in achieving Honeywell business objectives?
Answer 2:
Evaluation of all-salaried workforce on the basis of ‘pay for performance’, work empowerment by
increasing the authority level of workers, compensation for creativity and a system wide view helped
Honeywell vastly improve its quality and performance for its customers. In a little over three years, teams
helped reduce defect rates by 70%, customer rejects by 57%, cycle time in parts by 72%, inventory
investment by 46% and customer lead times by over 70%.
Question 3:
What were the key steps taken by Honeywell for successful BPR?
Answer 3:
They key steps taken by Honeywell for successful BPR were:
1. Training: In 1990, the entire plant was shut down and everyone was taken to another location for
an intensive six hour training session. During this session, the need for radical change was
articulated.
2. All salaried workers were evaluated on a pay for performance basis.
3. Organizational restructuring was done to manage white spaces and reduce them. This would help
link the internal supply chain and increase the efficiency
4. A culture of continuous improvement was introduced.
5. Factory focused program, The TotalPlantTM was introduced to unify business and control
information.
Question 4:
Briefly explain the principles of TotalPlantTM paradigm with at least one practical example for each
principle.
Answer 4:
1. Process Mapping: To model the business flow in a graphical form so that every individual can see
how the business process works, what are the boundaries and how the improvements can be
made?
2. Fail-Safing: To identify a defect, analyze its root cause and develop a methodology or solution to
prevent that defect from recurring.
3. Teamwork: To reduce white spaces, to understand the roles of other employees and to familiarize
the workers with each other in order to know how others work and how will they help improve
the company.
4. Effective Communication Skills: To increase flow of required information to relevant employee
without its misinterpretation and to reduce faulty interactions between people which lead to
conflicts, hurt feelings and damage relationships.
Question 5:
What is the role of IT in successful execution of BPR?
Answer 5:
Information Technology supports office processes that are integrated into the total system. Computer
technologists, engineers and systems analysts keep systems running properly. IT system is essentially
needed in successful execution of BPR in order to maintain the flow of information to relevant employees.
It is also used to track the productivity of employees, business progress and keep sensitive information
from approach of irrelevant people. The IT department has made great strides to align its services with
the needs of the business.
Question 6:
What separates success from failure in BPR? Explain different obstacles that can cause hurdles in
implementing BPR.
Answer 6:
Execution separates the success from failure in BPR. The biggest obstacle to execution is the middle
management ranked employees. Middle management employees are expert in their domains but have
little expertise in other department’s working process and principle. Behavioral change is also a big hurdle
in implementing BPR as it is in human nature to avoid change. Proper execution of BPR is also a hurdle. If
BPR is executed in a wrong manner, it can be a disaster instead of improvement.
Question 7:
How question everything leads to fail safing approach? State with example.
Answer 7:
Question everything leads to fail safing approach as to find the root cause of an error or defect, ‘Five Why’
is used which is a tool to question the process until the root cause is identified.
Question 8:
What is the fundamental step(s) should be taken to make ‘change’ acceptable in organization?
Answer 8:
The fundamental step to make change acceptable in organization is that the top management needs to
communicate to its people why the change is necessary and how it will impact everyone’s current job
and future with the company. Top management needs to convey to its people that BPR is not being used
to replace workers, but to improve quality, reduce cycle time and create value for customers. Patience
is also needed. Change takes time.