BUSINESS PROCESS

RE-ENGINEERING
(BPR)

BY WALIMBE ABHAY H.
•INTRODUCTION TO BPR

•Definition:
•

According to hammer &

Champ, BPR is defined as “The
fundamental rethinking & radical
redesign of business process to
achieve dramatic improvement in
critical contemporary measures of
performance such as cost, quality,
service & speed. ”
FEATURES OF BPR
 Workers make decisions.
 Several jobs are combined into one.
 Steps in the process are performed in
natural order.
 Process has multiple versions.
 Work is performed where it makes the
most sense.
 Checks & controls are reduced.
 Reconciliation is minimized.
 A case manager provides a single
point of contact.
 Work unit changes: functional to
process.
 Structure changes: hierarchical to
flat.
 Managers change: Supervisor to
coaches.
ORGANIZATION STRUCTURE
Classical IE Based
Hierarchical management
Vertical division of labour,
centralization of decisions
Separation of categories by
status
Technical division of labour &
atomistic & service strict task
assignment
Specialization &
compartmentalization of
knowledge
BPR Based
Flatterened & shortened chain
of command control
Decentralization of
responsibilities & of decision
making
Blurring of status differences
& trend towards more status
equity
Enlargement of task toward
more professional division of
work
Multidisciplinary team
working
 Classical IE Based
Loose ties with supplier
Loose ties with consumer
Standardized products &
production processes.
Overall routines & rigidities
Production management is
central
BPR Based
Connectivity with suppliers &
subcontractors
Great sensitivity to market
demand, to buyers &
consumers & all stock
holders
Structural, technological &
organizational flexibility.
Continuous search for
innovation & value additions.
Human resource department
becomes central
TQM , JIT & BPR
TQM seeks to create an atmosphere where
‘Doing right thing on right time in right
quality’ becomes the goal. Quality is
designed & built in each activity rather than
being inspected after the event.

JIT is a mfg. philosophy that calls for total

reorganization of operations in order to
minimize non value adding & wasted
activities & balance operations to demand.

BPR is a mean by which an organization can

bring radical change in level of cost, cycle
time, service & quality by application of
various tools & techniques that focus on
business as a set of related customer
oriented core business process rather than
a set of organizational functions.
BPR differs from TQM & JIT in
following ways:
BPR provides a new definition of operational
excellence which helps to destroy all the old
tenets. This provides internal drivers &
external focus so that customer & supplier
receive more attention.
BPR pushes TQM & JIT approaches both
upstream & downstream to customer &
supplier in order to either add value in supply
chain more effectively or to penetrate into
market more aggressively.
BPR requires corporate leaders not only to
discover new avenues but to eliminate non-
value added activities by challenging very
purpose, principles & the basic assumptions
on which the systems are founded.
Traditional TQM & JIT often fail to break
functional barriers & engage the individuals
in improving process.
BPR examines & analyses work
flow structure of a process &
reconstructs them with
capabilities of IT systems as
necessary.

Thus, it can be said

that BPR, as a strategic cross
functional initiative must be
integrated with others if it is to
succeed. So there is a strong
linkage between TQM, JIT & BPR &
all aiming towards enhancing
competitiveness of organization.
So, BPR is TPQM i.e. Total
productivity & quality
management which is in line with
CASE STUDY:

COMPANY: MAHINDRA &

MAHINDRA [Igatpuri and Kandivili
(MH)]

Problems before BPR started:

Manufacturing inefficiencies.
Poor productivity.
Long production cycle.
Sub-optimal output.
RE-ENGINEERING
PROCESS:

Examine customer’s needs.

Define strategic & tactical sets of
goals.
Strategic- subjective like
effectiveness, efficiency etc. Tactical-
objective like reduce lead time,
inventories, costs etc.
Identify & define relevant
applicable principles of specific
technique being used.
Establish new set of activities/
processes & define them in detail.
CHANGES REQUIRED ON
BEHAVIORAL SIDE IN RE-
ENGINEERING:
Team work & communication.
Introduce new changes with
patience & persuasion.
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.
REWARDS OF BPR:
Factory lead time reduced.
WIP inventory turnovers doubled.
Delivered product defect rates
reduced by half.
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.
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.
CONCLUSION:
BPR must be integrated with TQM &
JIT as there is strong linkage between
them & all aiming towards enhancing
the competitiveness of an
organization.
In today’s competitive environment
three forces viz.. Customer,
competition & change play a
significant role. The traditional
organization can not meet the
present challenges. So BPR plays an
important role to deliver goods &
services at competitive prize, quality
& on time delivery. The benefits of
re-engineering are very significant.
The industrial engineers are the
agents of the change & have several
REFERENCES:
Indian Management Journal,
July- Dec 97, vol36.
Industrial Engineering Journal-
1996, vol XXV.
Industrial Engineering Journal-
1997, vol XXVI.
Industrial Engineering Journal-
2000, vol XXIX.
Industrial Engineering Journal-
2003, vol XXXII.
Industrial Engineering Journal-
2004, vol XXXIII.
THANK YOU.