BPR CASE STUDY PRESENTATION

SUBMITTED BY: ASHISH RATHORE(09) ARUNIM DAS(05)

Case study: Precision material Inc.1)IN THE “PRECISION MATERIALS” SITUATION, HOW WERE THE OBJECTIVES OF BPR IDENTIFIED?

OBJECTIVES OF BPR ARE IDENTIFIED BY DETERMINING THE CUSTOMERS EXPECTATION. BASED ON THIS IT IS SET AND COMMUNICATED TO ALL THE INVOLVED PARTIES . THROUGH A CUSTOMER SATISFACTION SURVEY, PRECISION MATERIALS IDENTIFIED THREE AREAS THAT NEEDS TO BE IMPROVED:• REDUCE ORDER RECEIPT –TO-SHIPMENT CYCLE TIMES• ELIMINATE ORDER-PROCESSING ERRORS

PROVIDE MORE TIMELY ORDER STATUS INFORMATION 

2)What were the generic ways that were identified that the cross functional teams could use to redesign the process? Existing process owner (those affected by potential change )are encouraged to build cross functional teams that looks for ways to: Eliminate unnecessary stepsIncrease the quality and speed of specific steps in the processComplete multiple steps simultaneously .Building cross-functional teams to complete this analysis is critical for achieving superior results . Success depends on team work that develop communication across each of the functions involved in the process .

3)What is benchmarking? How can it be used in BPR?

Benchmarking is the process of comparing one's business processes and performance metrics to industry bests or best practices from other companies.

4)What were the internal symptoms of the gaps in customer satisfaction that were identified? expectation Whether the customer for a process are internal or external to the company, its imperative to make it to your first priority to understand the expectations of your customers and where your existing meeting process falls short of meeting those requirements.

Building on this understanding ,specific goals for a process reengineering effort must set and communicated to all involved parties. Through a customer satisfaction survey, precision materials Identified three areas that needed improvement .These were then translated into companies performance improvement goals:Reduce order receipt-to-shipment cycle times.Eliminate order-processing errors.Provide more timely order status information.

This below graph show how internal process improvement is effectively combined with external benchmarking. Internal process-improvement teams can accelerate the organisations movement down the curve . However external benchmarking offers the ability to adopt an entirely new process technology and actually shifts the experience curve down .

5)What role was played by IT in the reengineered process? As we all know that IT is an enabler and thus it enables sales rep. to online approve capabilities of inventory and credit

approval; eliminated the number of functions each order(reducing the possibilities of

making mistakes); intercepted errors almost immediately, nearly eliminating time delays and rework costs. Results of using IT: Order Reciept-to-warehouse Cycle time = instantaneous and percentage of order handled without error is

95%. SHOWN IN FIG. HOW WITH THE PROCESS GET REENGINEERED AFTER ENABLING IT WITH IT:

Sales rep enters order into laptop

computer

System checks for entry error System checks Inventory System checks

customer credit

Bill of material sent to warehouse

Invoice with delivery status printed and given

to customer

Case Study: Deregulation, Reengineering and Cultural Transformation at Arizona Public Service

What environmental forces were affecting APS?

The major factors which were affecting APS were:1. Reduce the emissions of harmful gases such as sulphur dioxide

and carbon dioxide as demanded by the Government.2. The disposal of nuclear waste and public concern about safety

of nuclear generators.3. Health risks posed by electromagnetic fields.4. Reducing the transmission of electric utilities power and cost

per kilowatt/hour.5. Reducing the wastes without affecting the production rates.

In what ways did they motivate change?

The first motivation technique was to change the vision of the company placing APS as one of the top five utility companies by 1995 and adopting the mantra of “Top 5 by 95” as its slogan

The second motivation technique was to was to communicate the need of change individually to the employees.

The third technique was the focus program which included increased cooperation among the departments and increased understanding among employees. De Michele gave a platform to provide more empowerment to the employees which motivated employees

What were the three critical areas of change in APS’s change strategy? Describe how each was approached

The first critical area of change was in APS’s change strategy was1. Large no. of employees: Reducing the no. of employees would decrease

the costs quickly and also APS was overstaffed. 1,150 employees were fired and two officers were eliminated after the change strategy.

2. Lack of Goal: Before change APS needed a tangible goal for restructuring so that employees could focus on the initiative’s positive outcome. For that the vision of the company was changed placing APS as one of the top five utility companies by 1995 and adopting the mantra of “Top 5 by 95” as its slogan.

3. Relook at the existing positions of the company: Whether all employees were motivated and working and whether all the position in the company were important or not. For that DI Michele established job review committees to evaluate

What business objectives and measures of success does/should APS use? The business objective of APS is measured by:

1. To be top 5 organization in USA by 1995. 2. To achieve Overall customer satisfaction. It is measured by

independent customer survey. 3. Decrease in cost per kilowatt from 9 to 7 cents to eliminate the

planned rate increase. 4. Reduce the no. of employees from 9000 to 6000 to decrease

the costs of running of the organization.

How far Hammer & Chamby BPR methodology principles and approach you see in this case study?

There is a fundamental and radical change in the reengineering process of the APS organization in the approach adopted by the company such as motivating the employees, changing the vision and reducing the costs of running the organization and to achieve the overall customer satisfaction.