1. GROUP 2 HARDIK SEMLANI (08FT-79) HIMANSHU GOYAL (08FT-81) KANIKA NAGPAL (08FT-082) MANASI GUPTA (08FT-085) RUBIN JAMES (08FT -099) Business Process Reengineering and Manufacturing

2. Reengineering Required when efficiency comes at the cost of effectiveness & profitability Fundamental rethink and radical redesign of business processes to achieve dramatic improvements  critical contemporary measures of performance eg. cost, quality, service and speed Radical change which brings new innovations, new designs and their effective implementation Not to be confused with process improvements It signifies complete transformation of processes.

3. Reengineering Methodology Prepare and disseminate a clear message about the need for re- engineering Identify and map the processes Decide which processes require re-engineering and prioritize them Analyse and develop an understanding of the current process Redesign the process Implement and make the transition Evaluate success Repeat the cycle

4. Process Perspective of Reengineering Process - set of tasks required to transform a set of inputs into a set of outputs for a customer (External or Internal) Companies organized around functional expertise, rather than processes Functionally oriented system,  responsibilities - separated among many different departments.  Incentive systems needed – diff. for diff. responsibilities of various functions. Information systems in place– dept. silos still exist Process orientation - solves the inherent communication and incentive problems of separate functional dept. Appropriate personnel from each of the functions -> reassigned to work as a team  sole responsibility – provide necessary support

5. Implementing Process Focus Identification of core process by Executive Reengineering team plus Assignment of process to different teams Process mapping by Process Reengineering Teams Information gathering from customers and other organizations Enabler identification and New process design proposal Review and analysis of process designs Implementation of new process designs

6. Technology Needs: The availability of new information technology and other process technologies can greatly enhance the ability for a company to take a process focus. The speed of the process flow increases, timeliness of information improves, work can be accomplished in a number of different locations, authority can be more easily decentralized, and communications between the company can be vastly enhanced. The use of expert systems provide the capability of lower-skilled generalists to do the work of a number of specialists. Analytical Tools: Process mapping and related tools are the most prevalent methods used in process design (eg. Process Flowcharts) An important analysis of the current process design requires the determination of value-added activities. A value-added activity or task is one, when viewed by the customer, is necessary to provide the output that the customer expects. Another common tool for analyzing process designs is an enhancement of the simple process map to one that includes both time and function attributes. The major objective is to illustrate the cumulative time required for completing activities in a sequence and to indicate the functional expertise required at each step.

7. Kodak Eastman In 1987  Kodak’s arch-rival, Fuji came up with a new 35mm single-use camera  Kodak has no competitive offering Kodak’s Traditional Product Development Process  Slow: would take 70 weeks to produce a rival to Fuji’s camera! Result: the new process, “Concurrent Engineering”  Reduce turnaround time to 38 weeks

8. Key Redesign Strategy Apply innovative use of CAD/CAM + integrated product design database  Allow engineer to design at computer workstations  Database collect each engineer’s work and combines into overall design  Each morning, problems are resolved immediately  Manufacturing can begin tooling design just 10 weeks into product design instead of 28 weeks in the past

9. IBM Credit Co. Finances the computers, software, and services that the IBM Corporation sells Sales Representative Credit Dept. Specialist – credit worthiness Biz Practices Dept. Modification of std. loan cavets Price Dept. Pricer – interest rates Admin Quote prepared

10. Avg. process time – 6 days Potential of losing customer No means of tracking Control Desk Installation  Tracking possible  Turn around time increases Specialist --> Generalist  Replace multiple specialists with one generalist

11. Basis of old design  Each bid is unique – False  Most requests – simple and straight forward Generalists provided with sophisticated systems  Credit rating database  Standard models – plug data  Clauses in file  Specialist support 6 days -> 4 hrs Radical change to process  90% improvement in cycle time  100 times increase in productivity

12. Thank You