Mahindra and Mahindra – Implementing BPR

Submitted by:-Harshal Chichghare

73Krishna Kaushal 77Kartikeya Sharma 78Kumar Raunak 79Nikhil Garg 82

Introduction•The Mahindra Group ‘s history dates back

to 1945•In October 1947, the first batch of 75

jeeps was released for the Indian market.•Over the next few decades, the group

promoted many companies in areas as diverse as hotels, financial services, auto components, information technology , infrastructure development and trading to name a few.

•However, the two main operating divisions were the automotive division and the farm equipment division.

•Mahindra employed over 17,000 people, had 33 sales offices with a network of over 500 dealers across the country.

•The Kandivili plant was the production hub for farm equipment division. In 2001, this division marked its 16th year as the market leader, with its product being used by over 600,000 indian farmers.

About BPR

Reasons for Implementing BPR

BPR PrinciplesPRINCIPLE EXPLANATION

Organize around processes, not tasks

Keep interdisciplinary teams that concentrate on completing a process.

Have output users perform the process

Have one department responsible for one complete process.

Have those who produce information process it

One person generating a certain information also processes it till end.

Treat geographically dispersed resources as centralized

An organization’s data should be centrally located and made available to all.

Link parallel activities in the workflow instead of just integrating their results

Improve communication through inter-linkage to better all processes.

Empower workers and use built-in controls

Give more authority to those working directly to enable quicker decision making.

Capture information once and at the source

Store all data electronically to avoid inefficiency, resource wastage and data discrepancy errors.

Effects of BPR

The effect of BPR

Work units change from functional to process teams

Jobs change from simple tasks to multi-dimensional

Roles change from control to empowered

Advancement criteria changes from performance to ability

Executives change from scorekeepers to leaders

Performance measures change from activity to results

BPR seeks to remove the belief that by focusing on the efficiency of the tasks involved in carrying out a piece of work, the organization is doing its best to complete the task in a timely and cost-effective manner. Instead, it requires the organization to focus on the outcomes of its processes in the way a customer would.

Phases involved in BPR

BPR success factors

BPR SUCCESS FACTORS

Strong and consistent top management sponsorship.

Addressing cultural transformation through effective change management.

Proven methodology including a vision process.

Reengineering team composition (in both breadth and Knowledge).

Compelling business case for change (with measurable objectives).

Strategic alignment with company strategic direction.

Line ownership (pair ownership with accountability).

Reengineering is usually opted when companies are in trouble, have foreseen one or are avoiding landing into one. BPR exercises generally fail because the concerned companies do not ensure the presence of critical success factors.

Such factors are:

M&M’s experience with BPR

Results of implementing BPR

The Future