BUSINESS PROCESS

RE-ENGINEERING
ASSIGNEMENT 01
OVERVIEW OF MODULE 2 & 3

Name: Rutuja P. Valte

Roll No.: 20MBAOPE045
Division: Operations-A
PRN: 1062201023

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 Module 2: BPR In Manufacturing Industry

2.1. Introduction
Business process re-engineering (BPR) is the act of changing an organization’s major
functions with the goal of increasing efficiency, improving product quality, and/or decreasing
costs. This starts with an in-depth analysis of the business’ workflows and identifying key areas
that need improvement. People who do this kind of work, often referred to as BPR specialists,
are hired by companies to facilitate transitions to more standardized processes.
One of the most referenced business process reengineering examples is the case of Ford,
an automobile manufacturing company. In the 1980s, the American automobile industry was
in a depression, and in an attempt to cut costs, Ford decided to scrutinize some of their
departments in an attempt to find inefficient processes.
One of their findings was that the accounts payable department was not as efficient as it
could be: their accounts payable division consisted of 500 people, as opposed to Mazda’s (their
partner) 5. While Mazda was a smaller company, Ford estimated that their department was
still 5 times bigger than it should have been.
Accordingly, Ford management set themselves a quantifiable goal: to reduce the number
of clerks working in accounts payable by a couple of hundred employees. Then, they launched
a business process reengineering initiative to figure out why was the department so overstaffed.

2.2. Enablers of BPR in manufacturing:

2.2.1. Agile Manufacturing:
Agile manufacturing can be defined as the “capability of surviving and prospering in a
competitive environment of continuous and unpredictable change by reacting quickly and
effectively to changing markets, driven by ‘customer-defined’ products and services” (Cho et
al.,1996). Agile manufacturing is a new expression that is used to represent the ability of a
producer of goods and services to survive and thrive in the face of continuous change. These
changes can occur in markets, technologies, business relationships and all other facets of the
business enterprise (Devor et al., 1997). Agile manufacturing aims to meet the changing market
requirements by suitable alliances based on core-competencies, by organizing to manage
change and uncertainty, and by leveraging people and information.
In short, agile manufacturing does not represent a series of techniques much as it
represents a fundamental change in management philosophy (Maskell, 1994). It is not about

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small-scale improvements, but an entirely different way of doing business (Kidd, 1996) with a
primary emphasis on flexibility and quick response to the changing markets and customer
needs.

2.2.2. Lean Manufacturing:

Lean manufacturing was accepted as an innovative paradigm-that eliminates waste in any
form, anywhere and at any time, relentlessly strives to maintain harmony in the flow of
materials and information, and continually attempts to attain perfection.
There is sort of conflict for taking the credit of introducing lean manufacturing. Some say
it was Henry Ford who introduced it and some other believe that it was Toyota. Lean
management emphasises small batch sizes and, ultimately, single-piece flow (i.e., transfer
batch size =1). The term pull is used to imply that nothing is made until it is needed by the
downstream customer, and the application of a make-to-order (MTO) approach whenever
possible.
Waste (muda in Japanese) has seven types: waste from overproduction, waste of waiting
time, transportation waste, inventory waste, processing waste, waste of motion, and waste from
product defects. Efforts focused on the reduction of waste are pursued through continuous
improvement or kaizen events, as well as radical improvement activities.

2.2.3. JIT
Just-in-Time (JIT) is a way of producing products on order, not before anybody has
ordered the product. It also means that the product should be delivered “in time”. Just-in-Time
originally encapsulated the logistics aspects of the Toyota Production System. A brief summary
of JIT core principles is given below: —these encapsulate key focus areas for BPR: The use of
multiple small machines (rather than "efficient" expensive machines that have to be kept
busy). Group technology (commonly called "Cellular" manufacturing). It is based on the
principle that product focused manufacturing is much simpler, with reduced material flows, as
compared to factories where similar processes are grouped together, such as heat
treatment. Production smoothing (levelled schedules) is based on the principle — small is
beautiful as far as batch sizes are concerned, and that what is required is made when required
without inflating batch sizes. Labour balancing highlights line imbalance from the cycle time
of one operation to the next, and indicates the need to balance the manning for each operation
(and the opportunity to improve the slowest to achieve balance). Set-up reduction — the key

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factor in being able to reduce batch sizes. This should be applied to the bottleneck first and
perhaps stop there.

2.2.4. Collaborative Manufacturing:

Collaborative manufacturing is also known as e-manufacturing. The shift from made-to-
stock to made-to-order has resulted in new manufacturing environments that require IT
frameworks able to support this new dynamism. Collaborative manufacturing environments
demonstrate considerable potential in responding to this need. As such, the e-manufacturing
project aims to develop an appropriate framework for a common platform to enable distributed
planning and control in manufacturing.

2.2.5. Intelligent Manufacturing:

Manufacturers today face a lot of challenges. Customers are demanding more and more
customizations which results in having smaller production batches, frequent changes, and more
waste. Supply lines are also decreasing and there is increased outsourcing.
To compete, manufacturers need to optimize the productivity of their expensive equipment,
reduce waste, maximize yields, and reduce cycle times. New capabilities for processing sensor
data, along with Big Data, Machine Learning and Artificial Intelligence, cloud and edge
technologies are enabling a shift from reactive problem solving towards increasingly proactive
management of equipment, processes, product and factories.
Using sensors on equipment to acquire and process real-time data, intelligent
manufacturing allows manufacturers a complete, 360-degree high-fidelity virtual data-driven
integrated view of all operations—from suppliers and supply chains, through equipment,
processes, and manufacturing practices, to final product testing and customer satisfaction

2.3. Production Planning, Product design & development:

Production planning incorporates a multiplicity of production elements, ranging from the
everyday activities of staff to the ability to realize accurate delivery times for the customer.
With an effective production planning operation at its nucleus, any form of manufacturing
process has the capability to exploit its full potential. Production planning solutions focus on
minimizing WIP inventories and make more efficient use of manufacturing assets. A narrow
focus on only manufacturing efficiency can have a negative impact on the rest of the supply
chain. Optimal production planning demands constant, real-time revisions to production

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schedules to keep the plant running at peak performance, but frequent changes to
manufacturing plans or scheduling disrupts the overall supply-chain efficiency.
Production planning is very important for manufacturers as it affects other important
aspects of their business such as:
1. Supply Chain Management
2. Capacity planning
3. Material Requirements Planning
4. Production Scheduling
5. Production Lead Times
Without production planning, it is easy to use too much of a resource for one product and
not leave enough for another, or fail to schedule your resources properly, which results in
delays that affect your production scheduling. It’s just as easy to let resources go to waste.
These issues indicate a lack of efficiency in your production planning process.
No matter the product or service or the size of the operation, production planning is the
best way to ensure resources are used appropriately, products and services are high-quality and
nothing goes over budget. A production plan is a document that describes how production
processes will be executed, and it’s the final outcome of the production planning process. It
describes the human resources, raw materials and equipment that will be needed and the
production schedule that will be followed.

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 Module 3: BPR & Information Technology

3.1. Introduction

Change is the only constant thing in this world. Planed and consistent innovation in the
process and the structure of the Business is called as Business Process Reengineering (BPR). •
Information technology helps the process of Reengineering is different ways like
computerization of manual systems, expending specific location market to a virtual market and
effective and efficient alteration in the processes of the business. Business process
Reengineering needs some tools to take place these tools are called enablers, as it is the
processes of having something new at work, it may be about that how to do the work or how
to acquire the work, whatever the main concern of BPR, Information Technology is the main
enabler.

3.2. Role of Information Technology in Reengineering:

Some of the examples of using IT in the process are: the use of relational database,
technology of imaging, data exchange on electronic mode and funds management. The as the
degree of collaboration will be higher the effectiveness of the system will be more. On the other
hand, inter-functional process includes the teleconferences and other networks through
telecom. The use of IT in inter-personal process includes biometrics systems implementation
for the purpose of security.

Currently marketing is the core activity of any type of business; BPR is also having its
influence on marketing activities and information technology is the main enabler at each and
every step of processes reengineering. Information Technology has its own effect on Market
Mix like Product, Price, Promotion and Placement. Special software is available for making
CAD for Products Design. For doing marketing research regarding BPR information
technology is having multiple tools like email feedbacks, SMS responses and telephonic
interview.

Information technology is defined as possibilities offered to organisations computers,

software applications, and telecommunication for data; provide information and knowledge to
individuals and processes. For long, the industrial engineers have used in the processing
industry as analytical and modelling appliances. Common use of IT in the industry includes
production planning and control, process modelling, material management information
systems, and logistical.

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3.3. BPR Tools & Techniques:

The process of changing the core functions of the business resulting in new processes and
workflows is called business process reengineering (BPR). In BPR one does not just make
changes to the existing practices to suit the needs of the modern business practices, but totally
revamps the entire process from the ground up. Many businesses tend to bring in a third-party
consultant to the table to help them design and implement BPR. The result of this void is that
some authors and consultants alike have pursued the use of many different tools in the search
for the best reengineering application. These tools and techniques can be listed as below:

1. Process Visualization- For a process to be reengineered the “end state” is to be visualized

in prior to the defining and establishment of the systems needed to implement the new
innovation. The development of the vision of a process is the key to the successful
reengineering.

2. Process Mapping and Modelling- Operational method study is one of suitable tool to
reengineering. It involves the systematic investigation of the present way of doing a particular
job with an aim of doing the same job in a better way at reduced cost and/or time.

3. Change Management- It refers the management of organizational Change and is an

important tool for successful reengineering. This refers the human side of reengineering.
Generally, there will be resistance from employees to change as if it affects their level of
performance. So, change management is to be effectively used to overcome the resistance that
arises because of reengineering.

4. Process and Customer Focus- Sometimes the primary objective of reengineering is solely
to redesign the processes to improve the customer satisfaction. This provides a lead to improve
the process to improve the quality and/or minimise the costs. 5. Process Prototyping and
Simulation- Simulation has proven to be an effective tool in just about all facets of the
reengineering process. It allows BPR practitioners to determine which processes should be
reengineered and if proposed changes will have a productive impact.

3.4. Future role of IT in reengineering:

Organizations that effectively define and document business process improvements as part
of their enterprise software initiatives are much more likely to complete their projects on time
and on-budget. Additionally, they are more likely to receive the business benefits that they
expect from their ERP systems. Despite the well-documented criticality of business process
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reengineering, too many project teams, ERP vendors and consultants tend to overlook this
important detail.

While there are unprecedented opportunities to influence the greater enterprise, these
prospects go hand-in-hand with the challenges of meeting growing expectations from the
business. At a time when blockchain technologies, cognitive capabilities, and mixed reality
solutions are poised to redefine business models and processes, Information Technology’s
traditional reactive response will not enable the rapid-fire changes required to drive the
business forward.

When IT shifts its focus to broader goals, calculating ROI can get tricky. There may be
good outcomes, but it’s difficult to project with any accuracy what they might be. The
traditional operating model that IT has used to execute its mission is no longer up to the job.
Technological advances are creating entirely new ways of getting work done. Moreover, the
idea that within an organization there are special types of people who understand technology
and others who understand business is obsolete.

For years, IT has faithfully helped reengineer the business. Now is the time for IT to
transform itself with the same vision, discipline, and rigor. By building a modernized
infrastructure, powered by pervasive automation, and embracing new approaches to organizing
around, budgeting for, and measuring the impact of technology-enabled initiatives, CIOs will
be able to meet or exceed growing expectations from the business.