1.INTRODUCTION
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 .
Business Process Re-engineering (BPR) is the fundamental rethinking and radical redesign of business
processes to achieve dramatic improvement in critical contemporary measures of
performance such as cost ,quality, service and speed. BPR is boon to those industries
where the business is young and slow. BPR is required to take quantum leaps in
productivity to take competitive advantage . Mahindra and Mahindra has
successfully taken the advantages by implementing BPR in its Nagpur tractor
division.
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.PRINCIPLES
OF BPR
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Externally,
focus on end customers and generation of greater value of customers.
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Internally , focus on harnessing more of the
potential of the workforce and applying it to those activities ,which identify
and deliver value to the customers.
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To remove
non value added activities ,undertake parallel activities ,speed up
response time.
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Encourage learning and development by building
creative working environments.
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Think and execute as much activities as possible
horizontally, concentrating on flows and processes through organization.
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Keep the no. of core processes in an
organization to minimum.
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Encourage involvement and participation.
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Ensure that the continuous improvement is built
into the implemented solution.
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Give priority to the delivery of value rather
than maintenance of management control.
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Build learning , renewal and short feedback
loops into the process.
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.Methedology
for BPR
The Re-engineering of an organization is defined as 16 step process. Some
of the steps are the selection of executive and operational manager
Re-engineering, setting up educational services, specification of processes, a
cost-benefit study of implementation plans, and automation of processes. The
BPR methodology is as follows:
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Commitment by top management.
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Selection of the executive and operational
managers.
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Selection of Re-engineering team.
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Initial education phase.
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Identification of the organization.
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Specification of each process.
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Development of alternative implementation plants
for each processes.
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Cost benefit study for each plant.
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Selection of appropriate plant.
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Infrastructure definition base on selective
plans.
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Setting of priorities for the implementation of
processes and infrastructure.
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Second education phase.
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Pilot implementation of one or more processes.
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Re-examination of the Re-engineering effort.
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Implementation of the remaining processes.
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Automatic linkage to the environment.
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Change
in rules due to BPR
As BPR tend to produce the flat organization with least no.
of level of authority and responsibility, the traditional role of every
employee is going to be changed.
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Traditional
Hierarchy
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Proposed
Hierarchy
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A. Worker
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A. Cell member
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Actual production
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Production is a part of his role
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Directive
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Participative
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Depend upon a higher level for decision
making.
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Decision making is part of his job
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Specialized skill
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Multi skill
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Ultimate goal is to complete production
target.
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He is process owner as well as machine owner.
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Not bothering about quality or his performance
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He will himself check and ensure the quality
and performance.
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B.
Department head
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B. Cell
leader
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Responsible for the department
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Function as a leader of cell.
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Guidance to all personnel in cell
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Ultimate decision maker in the cell.
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Co-coordinating activities in the cell.
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Will look after the production to be according
to the demand.
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C.
Section head
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C.
Module manager
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Responsible for the section.
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Leader of the module.
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Guidance to all personnel in the
module.
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Ultimate decision maker in the module.
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Organizes and allocates resources necessary to
the module.
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Provides necessary strategic direction.
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D.
Production manager
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D. Production
manager
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Responsible for the production in the shop.
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Leader of the production unit.
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Guidance to all personnel in the production
unit.
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Ultimate decision maker.
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Organizes an allocates resources necessary to
the production unit.
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Provides necessary strategic direction.
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CHANGE
IN WORKING ENVIORNMENT DUE TO BPR
BPR also helps in improving the
working environment in the industry . The changes takes place because focus is
more on the improvement of methods
rather then technical changes. The reason behind this being ,ushering
new technology needs a lot of investment
in terms of money for new equipment
,machine ,raining of new personnel etc. So in bringing about changes in methodologies of doing work, the working
environment naturally get changed .
The training programs are initiated. The workers are taught to inspect
the parts they produce. This makes the workforce quality concious.This eliminates the non-value added activity of
inspection. The inspector who is now rendered, is utilized elsewhere for
performing some new value added
activity. Another advantage of this is the a number of rejects reduced
drastically and quality of parts improved as the worker himself kept a check on
his production activity. The decision of putting "methodology before
technology" has been the reason
behind the successful implementing of BPR in Mahindra and Mahindra.
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BPR In
Mahindra And Mahindra
The major reason behind the need for quantum leaps in productivity arise due to liberalization of Indian economy
.Foreign companies have entered the potential Indian market with there world
class products. In 1994 Lucas Engineering system, UK base consultant was
commissioned to re-engineering Mahindra and Mahindra's business processes to
have competitive advantages for next 15 to 20 years and to face post
liberalization scenario. Mahindra and Mahindra's business consists of only 7 processes .
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Development
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Material acquisition (supplies module)
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Finance
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People system
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Manufacturing support
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Manufacturing operation
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Customer interface
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Achivements
in Mahindra & Mahindra after implementation of BPR.
The results achieved by Mahindra & Mahindra by implementation of BPR
are really worth taking note of. They show that what BPR can achieve if
implemented properly and with proper channels.
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Work in progress costs reduced from Rs. 3.42
lacks to Rs. 0.9 lacks.
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Productivity in terms of equivalent tractors
increased from 0.21 to 0.42.
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The inventory levels came down from 21 days to
12 days.
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Lead time has been reduced from 64 hrs. to 18
hrs.
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Now value added activities decreased from 70 to
44.
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No. of departments handling the casting reduced
from 9 to 1.
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Overhead gantries have been cut from a span of
15-16 to 8-10.
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Distant traveled by signal casting through whole
line is reduced due to improved layout.
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There is change in worker profile and job
content as well. There is muliskilling of workers in each cell including
inspection testing in first level maintenance.
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Conclusion
Present economic scenario is a mark
by increasing competition almost every sector of company. The expectations of
he customers are on the rise and the manufacturers have to design and produce
goods in as many varieties as possible to cater the demands of the customer.
This challenge can be bared by improving the old processes to most effective
processes by using BPR which is today’s latest most radical revolutionary and
extremely powerful management tool.
BPR is
required to take quantum leaps in productivity to take quantitative advantage .By observing the
results got till now everyone is sure that within coming years or so M&M
will stand firm in front of its competitor by achieving the position of world-class
manufacturer and global competitor.
References
1. Business
process Re-engineering
By: M.S.Jayaraman
Ganesh
Natrajan
A.V.Rangaramanujan
2. The
Re-engineering revolution Handbook
By: Michael Hammer & Tom Peters
3. Business
process redisign
By: Rajneesh Kapoor
4. BPR Manuals
Mahindra & Mahindra
5. Industrial
engineering and production management.
By: martand Telsang.
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