Reengineering and TQM

Compiled and Presented by:

Ms. Kumkum Bharti

Introduction

Propounded by: Hammer & Champy

It
is
about
achieving
dramatic,
breakthrough
improvements often by the application of new
technologies

Opposite to Kaizen
Reengineering is the fundamental rethinking and
radical redesign of business processes to achieve
dramatic improvements in critical contemporary
measures of performance, such as cost, quality,
service and speed.

It involves identifying and abandoning outdated

rules and fundamental assumptions.
assumptions

Reengineering capitalizes on:

Individualism
Self-reliance
Willingness to accept risk
Propensity to change

Three emerging forces:

Customer
2. Competition
3. Change
Apart from this:
Reengineering focuses on:
1. Changing business practices
2. Why this has been done this way or why we
do it ?
3. Reinventing the process
1.

Characteristics of reengineering
1.
2.
3.
4.
5.
6.

Process centered
Redesign general
Dramatic
Radical
Customer oriented
Creative use of information technology

Reengineering will not work for:

1.
2.
3.

A co. that cannot change the way it thinks

about IT
A co. that equates technology with
automation
A co. that works for problems first and then
seeks technology solutions

At organization level, factors favorable are:

1.
2.
3.
4.
5.
6.

Competition
Environmental demands
Advancement of technology
Reduction of profitability
Decline of market share
Declining of share price

Companies do not reengineer, people do

5 roles to be addressed:
1.
2.
3.
4.
5.

Leader
Process owner
Reengineering team
Steering committee
Reengineering czar

Methodology of reengineering consists of

1.
2.
3.
4.
5.

Developing process vision & determining

process objectives
Defining the process to be reengineered
Understanding and measuring existing
process
Identifying information technology leverage
Designing, building and implementing a
prototype of the new process

Success mantra is applicable only when

1.
2.
3.
4.
5.
6.
7.
8.
9.

Fundamental understanding of the processes

Creative thinking rethinking of basic
organizational and people issue
Use of information technology
An aggressive performance target
Commitment by top management
Picking up the right process
Empowering people and getting them to take
initiative
Precise vision
Focused values on customer needs

Success mantra is applicable only when

10.
11.
12.

Reorganization into cross functional teams

with end-to-end responsibility for a person
Redesign of core processes using IT to
enable improvements
Improvements of business processes across
the organization using benchmarking.

Contd

BPR involves the radical redesign of core

business processes to achieve dramatic
improvements in productivity, cycle times,
and quality.
It means starting from scratch and rethink
existing processes to deliver more value to
the customers
Adopt new value system that places increased
emphasis on customer needs.

Followed into two key areas:

1.
2.

Redesign functional organizations into cross

functional teams
Use
technology
to
improve
data
dissemination and decision making

Advantages of Reengineering
1.
2.
3.
4.
5.
6.
7.
8.
9.

Reduced cost and cycle time

Improved quality
Reduction of waste
Improved use of technology
Improved customer satisfaction
Better plant utilization
Reduction in paperwork
Reduction in non-value added activities
Improvements in entire organization

Criticism of Reengineering
1.

2.

3.

Throwing out everything that exists and

recommends a workable of completely fresh
ideas
It offers neither the time nor the
opportunities for an organization to adopt
smoothly to changing conditions
It imposes changes swiftly from consultants
or experts