r

Mahatma Gandhi Missions

Institute of Management Studies & Research

At Junction NH 4, Sion Panvel Expressway, Kamothe, Navi Mumbai 410 209

PROJECT REPORT ON
EFFECTIVENESS OF BPR AND BPR IMPLEMENTATION AT MAHINDRA AND MAHINDRA

SUBMITTED TO MGMS INSTITUTE OF MANAGEMENT STUDIES & RESEARCH NAVI MUMBAI BY Mr. PRAMOD MOHAN KAMBLE. Roll No:-91. Batch No:-2012-2013 IN PARTIAL FULFILLMENT OF MASTER OF MANAGEMENT STUDIES (MMS), UNIVERSITY OF MUMBAI 2012-2013

TABLE OF CONTAINTS
Chapter No. Title Declaration from student Certificate from Company/Organization Certificate from Guide Acknowledgement INTRODUCTION Business Process Reengineering Need of Study Objectives Company Profile PROJECT DETAILS The Principles of BPR Techniques of BPR Implementing Business Process Reengineering Implementing Business Process Reengineering BPR Performance measure Difficulties in implementing BPR The Cost of BPR DATA PROCESSING AND ANALYSIS Steps of BPR Implementation BPR Critical Success Factors For Manufacturing Industry Problems Faced by Mahindra and Mahindra Comments on the benefits M&M reaped as a result of BPR program Condition of Mahindra and Mahindra after Implementing BPR FINDINGS CONCLUSION RECOMMENDATIONS BIBILOGRAPHY Page No. III IV IV V 1 3 4 5 6 10 11 14 15 15 18 19 20 22 23 28 30 32 34 36-37 38-39 40-41 42-43

1.2 1.3
1.4 2.1 2.2
2.3 2.4 2.5

I 1.1

II

2.6

III
3.1 3.2 3.3 3.4 3.5 V VI VII VIII

DECLARATION

I, Mr. Pramod Mohan Kamble Here by declare that this project report is the record of authentic work carried out by me during the period from and has not been submitted to any other University or Institute for the award of any degree etc.

Signature (Pramod Mohan kamble.) Date:

III

CERTIFICATE This is to certify that Mr. Pramod Mohan Kamble of MGMs Institute of Management Studies & Research has successfully completed the project work titled EFFECTIVENESS OF BPR AND BPR IMPLEMENTATION AT MAHINDRA ANA MAHINDRA in partial fulfillment of requirement for the completion MMS as prescribed by the University of Mumbai. This project report is the record of authentic work carried out by him during the period He has worked under my guidance. Signature Name: Prof. : Dr. R.S. Gosh Project Guide (Internal) Date:Counter signed by:Signature Name: Dr. R.S. Gosh Director Date:-

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Acknowledgement

It is indeed a matter of great pleasure and proud privilege to be able to present this report on EFFECTIVENESS OF BPR AND BPR IMPLEMENTATION AT MAHINDRA AND MAHINDRA The completion of this report is a milestone in student life and its execution is inevitable in the hands of guide. I would also like to express our deep 0regards to the director Dr.. It is due to her enduring effort patience and enthusiasm which has given a space of direction and purposefulness to this Simmer internship. I am highly indebted the guide Prof. for her invaluable guidance and appreciation for giving form and substance to this internship. I would like to tender sincere thanks to the staff members for their cooperation I would wish to thank my friends who have help me all the time in one way or the other. Really it is highly impossible to repay the debt of all the people who have directly or indirectly help us for the project.

Chapter Scheme

Chapter No.

Title

Page no. 1 10

1. 2. 3.

Introduction Project Details Data Processing and Analysis

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4.. 5. 6. 7.

Findings Conclusions Recommendation Bibliography

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38

40

42

VI

Chapter 1 INTRODUCTION

Chapter 1 Introduction

This project dives the insight information about the how company uses the Business Process Reengineering for their different units to overcome the problems which they are facing. There are lots of problems faced by the companies while implementing the BPR in the company such as lack of top management commitment for the project. As more organizations undertake business process reengineering (BPR), issues in implementing BPR projects become a major concern. This field research seeks empirically to explore the problems of implementing reengineering projects and how the severity of these problems relates to BPR project success. Recent surveys show that business process re-engineering (BPR) has had widespread adoption in western countries This has been motivated by case studies where drastic improvements in quality, Productivity, cost reduction and competitiveness have been reported. The rate of failure in reengineering attempts, though, has been reported to be equally high. It is estimated that over 70 percent of all re-engineering attempts fail to produce bottom-line improvements. 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. BPR is required to take quantum leaps in productivity to take competitive advantage. Mahindra and Mahindra have successfully taken the advantages by implementing BPR in its tractor division.

1.1 What is Business Process Reengineering?

Business process re-engineering (BPR) is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvement in critical contemporary measurers of performance such as cost, quality, service and speed. BPR plays vital role where the business is young and growing. BPR helps in focusing on end customer by providing competitive advantages to the enterprise.

Business Process Reengineering involves changes in structures and in processes within the business environment. The entire technological, human, and organizational dimensions may be changed in BPR. Information Technology plays a major role in Business Process Reengineering as it provides office automation; it allows the business to be conducted in different locations, provides flexibility in manufacturing, permits quicker delivery to customers and supports rapid and paperless transactions. In general it allows an efficient and effective change in the manner in which work is performed.

1.2 Need Of Study:

During the team creation of Business Process Reengineering, business and manufacturing waste that occur in the processes can be easily identified. The business dynamics today is governed by factors like new technologies, new competitors and again, new rules of competition. In such an ever-changing business environment,. The need for BPR thus can be assigned to three Cs viz.; Change, Customer and Competition. Why companies Reengineer? The answer is: To fight increasing competition. Rapid change in everything itself warrants product development in lesser time, faster product life cycles and hands-on environmental scanning. To get Products/services to market faster the customer is well informed today and further; the organizations need to delight the customer rather than just satisfying. To build closer relationships with customers/supplier intense competition demands the business processes at par with the best practices prevalent in the industry. Also, the business models have to be focused on individual market segment the organization is targeting To reverse declines in market share/profits To study concept of business process reengineering process. To dramatically reduce cost. To reduce Time. To improve customer service. To remove the unwanted process (Eliminate the bottleneck process) Customer satisfaction. To increase Manufacturing Inefficiencies\ To increase productivity To reduce production cycle 4

1.3 Objectives
When applying the BPR management technique to a business organization the implementation team effort is focused on the following objectives: Increase Efficiency

As all employees are aware of the processes to which they belong , they have a greater sense of responsibility. All processes are completely monitored under the strict control of the management. The net result of this is that employees deliver high quality products to their customers.

Reduces Cost

With the proper management of processes, improved efficiency and quick delivery of products to the buyers, the overall product costs are reduced resulting in cost saving for the organization in the long run. Meaningful Job for Employees

As the time lag of product processing between different departments gets reduced due to the application of business process reengineering, there are more meaningful tasks to be performed by employees. This leads to increase their levels of motivation and the desire to perform well. Improvement in Organizational Approach

According to the traditional approach of managing an organization there is no flexibility or adaptability to change. The management formulated strict rules for employees of the organization. Whereas now, when most organizations have implemented business process reengineering there is an increase in flexibility and adaptability for change. This has created better environment for people to work, thus leading to employee satisfaction.

Growth of Business 5

Implementation of BPR results in the growth of the present business thus enabling the emergence of new businesses within the same organization

1.4 Company Profile

Mahindra Group is one of the largest corporate groups of India. It is a US $4.5 billion conglomerate with employee strength of over 40,000. The group has diverse business interests such as automotive, farm equipments, infrastructure, information technology, hospitality, and financial services. Mahindra Group has global presence and it is ranked amongst Forbes Top 200 list of the World's Most Reputable companies and in the top 10 list of most Reputable Indian Companies. The origins of Mahindra Group can be traced back to October 2, 1945 when Mahindra brothers J.C. Mahindra & K.C. Mahindra joined hands with Ghulam Mohammad, and Mahindra & Mohammad was set up as a franchise for assembling jeeps from Willys, USA.

After India's independence in 1947, Mahindra & Mohammad changed its name to Mahindra & Mahindra. Ghulam Mohammad migrated to Pakistan post-partition and became the first Finance Minister of Pakistan. Since then, Mahindra Group has gone from strength to strength and today it evolved into a giant group Mahindra and Mahindra is Started in 1945 by J C Mahindra & K C Mahindra. In Oct. 1947 first batch of 75 jeeps released for Indian market. Founded in 1945 as a steel trading company, we entered automotive manufacturing in 1947 to bring the iconic Willys Jeep onto Indian roads. Over the years, weve diversified into many new businesses in order to better meet the needs of our customers. We follow a unique business model of creating empowered companies that enjoy the best of entrepreneurial independence and Group-wide synergies. This principle has led our growth into a US $14.4 billion multinational group with more than 144,000 employees in over 100 countries across the globe. Today, our operations span 18 key industries that form the foundation of every modern economy: aerospace, aftermarket, agribusiness, automotive, components, construction equipment, consulting services, defense, energy, farm equipment, finance and insurance, industrial equipment, information technology, leisure and hospitality, logistics, real estate, retail, and two wheelers. Our federated structure enables each business to chart its own future and simultaneously leverage synergies across the entire Groups competencies. 6

In this way, the diversity of our expertise allows us to bring our customers the best in many fields.

Business Interest of Mahindra Group: A. Automotive Sector: Mahindra Group is the market leader in utility vehicles in India since inception. Mahindra also manufactures and markets utility vehicles and light commercial vehicles, including three-wheelers. Some of the famous automobile brands of Mahindra are: Scorpio and Bolero. Recently, Mahindra joined hands with French automobile major Renault to enter passenger car segment. It has launched a car called Mahindra Renault Logan. Qunto is the new compact Experience all the features packed into this new compact SUV. B. Farm Equipment Sector: Mahindra is the largest producer of tractors in India and is among the top five tractor brands in the world. It has its own state-of-the-art plants in India, USA, China and Australia, and a capacity to produce 1,50,000 tractors a year. C. Trade & Financial Services: Mahindra Intertrade Limited and its subsidiaries have specialized domain knowledge in imports and exports of commodities, domestic trading, marketing and distribution services. Mahindra Finance is one of the largest Non Banking Finance Companies in India with an asset base of about Rs. 5000 crores. Mahindra Insurance Brokers offer Life and Non-life Insurance plans to retail and corporate customers. Mahindra Steel Service Centre is the first steel service centre in the organized sector in India.

D. Infrastructure Development: Mahindra Group has interests in real estate, special economic zones, hospitality industry, infrastructure development, project engineering consultancy and design. Mahindra Holidays & Resorts is the leader in the lifetime holiday market in India. Mahindra Gesco is fastest growing Construction Company in India. Mahindra World City is developing and promoting India's first Integrated Business City. Mahindra Acres Consulting Engineers is a multidisciplinary

E. Information Technology: Mahindra Group entered into IT sector in 1986 when it formed a joint venture with British Telecommunications plc. The company was called Mahindra-British Telecom. The Company has recently changed its name to Tech Mahindra. Tech Mahindra is a leading provider of Telecommunication solution and service industry world-wide. It is India's 8th largest software exporter. F. Specialty Businesses: Mahindra Group companies such as Mahindra AshTech, Mahindra Defence, Spares Business Unit and Mahindra Logistics are into Specialty Businesses. Mahindra AshTech undertakes turnkey contract execution for Ash Slurry System and Travelling Water Screens. Mahindra Defence Systems looks after the requirements of India's defence and security forces. Mahindra Logistics provide 7

complete logistics solutions to complex transportation needs of clients across the world.

Since 1945, they have built our company around the core idea that people will succeed if they are just given the opportunity. Employees across the Group constantly challenge conventional thinking to create solutions that make a significant difference in the lives of their customers. Thats why everything they buildbe it a tractor, financial service, solarpowered lamp, or softwareis designed to empower you to reach your potential. Internally, they follow three basic tenetsaccepting no limits, thinking alternatively, and driving positive change in everything we do. These brand pillars guide all our actions and business decisions from deciding whether or not to enter a new field or planning a portfolio of services. they hope youll take what they do and make it your own. They accept no limits, and ask the same of everyone else. In return, they work relentlessly to provide the tools, information, and inspiration to push past limitations and comfort zones. This challenger spirit galvanized us to meet the oil crisis in the 1970s by re-engineering our fuel efficient tractor engines for utility vehicles. It led us to take on the challenge of designing the Scorpio utility vehicle at a cost that many industry experts thought was impossibly low. Theyve created completely new business models to enter areas others had written off or ignored, like our leading hospitality business and our rural financial services. And they just registered our highest ever profits despite the worst global recession since the Great Depression. This determination influences every aspect of our culture and our employees. As a result, each Mahindra business constantly pushes the envelope and raises the bar as they strive to deliver better value to our customers. They supported the 2010 FIFA World Cupthe worlds biggest sporting event.

About 26 billion people (aggregated) watched the FIFA Football World Cup, held in South Africa in 2010. This event brought 32 teams to ten different locations across South Africa for a period of one month. FIFA needed a single IT platform to manage all aspects of the event. Mahindra Satyam stepped up to create an easy-to-use online Event Management System to coordinate the event, both locally and globally. Our cloud-based system handled every detail from volunteer management, transportation services, and venue management to authorization, multilingual ticketing, hospitality, and conferences. Our 24 member team provided round-the-clock support to customers, the first time such support was available at this scale of sporting event. They answered almost 200,000 calls during last-minute ticket sales.

Results

$1.6 billion in sponsorship revenue for FIFA 8

3.12 million purchasable tickets for 64 games Ticket sales of over 97 percent Broadcast to 214 countries on 317 channels

Their motivation to give the best every day comes from their core purpose: we will challenge conventional thinking and innovatively use all their resources to drive positive change in the lives of our stakeholders and communities across the worldto enable them to Rise. Our products and services support our customers ambitions to improve their living standards; our responsible business practices positively engage the communities we join through employment, education, and outreach; and our commitment to sustainable business is bringing green technology and awareness into the mainstream through our products, services, and light-footprint manufacturing processes. 1. Good corporate citizenship: We will continue to seek long term success in alignment with the needs of the communities we serve. We will do this without compromising on ethical business standards.

2. Professionalism: We have always sought the best people for the job and given them the freedom and the opportunity to grow. We will continue to do so. We will support innovation and well reasoned risk taking, but will demand performance. 3. Customer first: We exist and prosper only because of the customer. We will respond to the changing needs and expectations of our customers speedily, courteously and effectively. 4. Quality focus: Quality is the key to delivering value for money to our customers. We will make quality a driving value in our work, in our products and in our interactions with others. We will do it 'First Time Right.' 5. Dignity of the individual: We will value individual dignity, uphold the right to express disagreement and respect the time and efforts of others. Through our actions, we will nurture fairness, trust, and transparency.

Major Achievements of Mahindra Group

Mahindra & Mahindra made the first indigenous Jeep in the country in 1949. 9

Fourth largest tractor company in the world. Largest manufacturer of tractors in India. Largest manufacturer of MUVs, offering over 20 models

Chapter 2 Project details

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CHAPTER 2 PROJECT DETAILS

2.1) THE PRINCIPLES OF BUSINESS PROCESS REENGINEERING The key principles of Business Process Reengineering that should present the working life of any organization a spring to operate business process reengineering are as follows. A. Customer focus: Customer service oriented processes aiming to eliminate customer Complaints. B. Speed: Dramatic compression of the time it takes to complete a task for key business Processes. For instance, if process before BPR had an average cycle time 5 hours, after BPR the average cycle time should be cut down to half an hour. C. Compression: Cutting major tasks of cost and capital, throughout the value chain. Organizing the processes a company develops transparency throughout the operational level reducing cost. For instance the decision to buy a large amount of raw material at 50% discount is connected to eleven cross checking in the organizational structure from Cash flow, inventory, to production planning and marketing. These checking become Easily implemented within the cross-functional teams, optimizing the decision making and cutting operational cost. D. Flexibility: Adaptive processes and structures to changing conditions and competition 11

Being closer to the customer the company can develop the awareness mechanisms to Rapidly spot the weak points and adapt to new requirements of the market.

E. Quality: Obsession with the superior service and value to the customers. The level of quality is always the same controlled and monitored by the processes, and does not depend mainly on the person, who servicing the customer. F. Innovation: Leadership through imaginative change providing to organization Competitive advantage. G. Productivity: Improve drastically effectiveness and efficiency.

Principles of Reengineering
Organize around outcomes, not tasks Combine several specialized task performed by different people should be combined into a single job The new job created should involve all the steps in a process that creates a well-defined outcome It provides a single knowledgeable point of contact for the customer E.g. banks Have those who use the output of the process perform the process Work should be carried out where it makes the most sense to do it. This results in people closest to the process actually performing the work. Relocating the work in this fashion eliminates the need to co-ordinate the performers and

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users of a process. E.g. purchase

Merge information-processing work into the real work that produces the information People who collect information should be responsible for processing it. It greatly reduces the errors by cutting the number of external contact points for a process

E.g. Account payable department Treat geographically dispersed resources as though they were centralized Parallel processing of work by separate organizational units that perform the same job Link parallel activities instead of integrating their results Link parallel activities that must come together instead of integrating their results E.g. quality and quantity check Put the decision point where the work is performed, and build control into the process Decision making should be made part of the work performed Control should be made part of each process Capture information once and at the source Information should be collected and captured in the company online information system only once at the source it was created Guidelines for implementation of BPR: Codification of reengineering Clear goals and consistent feedback High executive involvement in clinical changes 13

2.2)

TECHNIQUES OF BUSINESS PROCESS REENGINEERING

The techniques of BPR are as follows:1) Empowerment: This is the transfer or delegation of responsibility and authority.

Without this, empowerment fails. This works best if these four forces are operating simultaneously. a) The delegator (manager) has established a clear vision, what the goals are and has

communicated to the subordinates. b) The delegator has established high personal and business standards and has

consistently demonstrated those standards through his actions. c) The delegator has established close relationship with subordinate and has trusted

them to make decision. d) The delegator is willing to let subordinates make mistakes, and only intervenes to

prevent disaster. 2) Employee Participation and Involvement: In decision-making and problem solving

processes. 3) Creativity and innovation: Valuing and respecting contrary ideas, and encourage

employee with good initiative. 4) Management By Score Keeping: This borders around performance appraisal and

feedback interview. When performance is measured and reported back, the rate of improvement accelerates. 5) Team Building: When several people work together to achieve a well-defined goal,

the result of many far exceeds the result of a few. This is referred to as synergy, the most important benefit of team performance. 14

6)

Managers Skill Development Or Appraisal: For effective implementation of BPR,

periodic skill development is essential for all Cadres of managers.

2.3) IMPLEMENTING BUSINESS PROCESS REENGINEERING

Having the management commitment for change, another very important factor for implementing BPR, is the enabling role of Information Technology. The way that businesses are organized around departments is very logical since, for instance, there were physical barriers in the communication of the accounting department with production department. (The warehouse could be in another location in the other part of the city). So it wasn't possible for a cross-functional team to communicate efficiently. In the 90s when telecommunication technologies were becoming abundant and low costing BPR was becoming a world-wide applicable managing technique for business upgrade, enabled by the technology. Employees can easily operate as a team using intranets/extranets, workflow and groupware applications, eliminating distances. We can work together even though we are located in different places. Empowering people: Empowerment means giving people the ability to do their work the right information, the right tools, the right training, the right environment, and the authority they need. Information systems help empower people by providing information, tools and training. Providing Information: Providing information to help people perform their work is a primary purpose of most information systems although they provide information in many different ways. Some systems provide information that is essential in informing a business process, such as the prices used to create a customers bill at a restaurant. Other systems provide information that is potentially useful but can be used in a discretionary manner, such as medical history information that different doctors might use in different ways. Providing Tools: In addition to providing the right information, empowering people means giving them the right tools. Consider the way planning analysts produce 15

consolidated corporate plans based on plans of individual divisions and departments. If the plans are submitted on paper, it is a major task to add up the numbers to determine the projected corporate bottom line. When the plan is changed during a negotiation process, the planning analyst has to recalculate the projected results.

Providing Training: Since information systems are designed to provide the information needed to support desired work practices, they are often used for training and learning. As shown by an expert system and a decision simulator, they sometimes provide new and unique training methods. IBM developed an expert system for fixing computer disk drives. The expert system was an organized collection of the best knowledge about fixing these disk drives, and it fostered rapid and efficient training. Before the system was developed, technicians typically took between 1 and 16 months to become certified, but with the expert system, training time dropped 3 to 5 months.

Eliminating Unproductive Uses of Time: Information systems can reduce the amount of time people waste doing unproductive work. A study of how professionals and managers at 15 leading U.S. corporations spent their time concluded that many professionals spent less than half of their work time on activities directly related to their functions. Although the primary function of salespeople is selling, the time breakdown for salespeople averaged 36 percent spent on prospecting and selling, 39 percent spent on prospecting an selling, 3 percent on servicing accouts, 19 percent on doing administrative chores, and 6 percent on training. Better use of information systems could save much of their unproductive time performing chores such as collecting product or pricing information, determining order status for a customer, resolving invoice discrepancies, and reporting of time and expenses.

Eliminating Unnecessary Paper: One common way to improve data processing is to eliminate unnecessary paper. Although paper is familiar and convenient for many purposes, it has major disadvantages. It is bulky, difficult to move from place to place, and extremely difficult to use for analyzing large amounts of data. Storing data in computerized form takes much less physical space and destroys fewer forests, but that is only the beginning. It makes data easier to analyze, easier to copy or transmit, 16

and easier to display in a flexible format. Compare paper telephone bills with computerized bills for a large company. The paper bills identify calls but are virtually impossible to analyze for patterns of inefficient or excessive usage

Eliminating Unnecessary Variations in the Procedures and Systems: In many companies, separate departments use different systems and procedures to perform essentially similar repetitive processes, such as paying employees, purchasing supplies, and keeping track of inventories. Although these procedures may seem adequate from a totally local viewpoint, doing the same work in different ways is often inefficient in a global sense. Whenever the systems must change with new technology, new regulations, or new business issues, each separate system must be analyzed separately, often by someone starting from scratch.

Minimizing the Burden of Record Keeping: Data Handling, and General Office Work Since processing data is included in most jobs, improving the way people process data is an obvious place to look for information system applications.

Focus on basic data processing tasks: Reducing the burden of record keeping means being more efficient and effective with the six components of data processing. Those components are capturing, transmitting, storing, retrieving, manipulating, and displaying data.

Capture data automatically when generated: Capturing data automatically at the time of data generation is especially important in minimizing the burden of record keeping.

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2.4) BUSINESS PROCESS REENGINEERING PERFORMANCE MEASURES

1) Top Management Commitment The degree of visibility and support that management takes in implementing a total quality environment is critical to the success of BPR implementation.. 2) Customer Involvement and Satisfaction Customer satisfaction is achieved by ensuring that drawings and specifications are communicated to the rest of the parties should there be any changes. The parties affected by the changes can then promptly adjust their information And help to reduce the amount of time wasted. 3) Employee Involvement and Empowerment This is done by allowing its project managers to take full responsibility and make decisions for their project. Project managers are allowed to make financial decisions but must ensure that the project budget is not exceeded. They should refer the issue back to the top management of Organization if they are not sure of the appropriate decision. Employees are encouraged to present improvement and cost saving suggestions to management and to a certain degree, are allowed to self-implement solutions. 4) CustomerSupplier Relationship As for evaluating suppliers in order to identify if the organization should offer more jobs to them in the future Organizations monitor the work performance in terms of work done in time, quality and cost. 18

BUSINESS PROCESS REENGINEERING PERFORMANCE MEASURES

2.5) THE DIFFICULTIES IN IMPLEMENTING BPR

The implementation of BPR into an organization requires fundamental organizational culture change. Changing an organizations culture is a very difficult task, which often faces resistance. The challenge of implementing BPR results from the fact that BPR is not a slogan, nor a tool, nor a program it is an organization paradigm. The concept of BPR is broad enough to be the frame-work or foundation of an organizations culture. Therefore

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implementing BPR might deal with replacing, and not only modifying, the organizations culture. The major obstacles in implementing BPR are: 1. Inadequate knowledge and information about BPR 2. Doubts of employee are about managements intentions. 3. Failure of Management to maintain interest and commitment over a long period of time. 4. Difficulty in measuring the effectiveness of BPR

5. Poor internal communication 6. Difficulty in assessing customer expectations and satisfaction. 7. Insufficient training Resources. 8. Poor Information Technology 9. Higher Cost of Implementation 2.6) THE COST OF BPR Duration The BPR technique, in general, is not a time consuming process. The duration of each BPR project varies from 6 -to 10 months. This variation relates to the kind of business and the Extend to which BPR is going to be implemented. Moreover, it depends on the techniques and methodology that each consulting company (that usually participates in the procedure) is using.

Implementation Cost
The implementation of a BPR project consists of two stages: 20

1. The process management and redesign study and consulting stage. 2. The implementation of the redesigned process using IT tools including employee training and introduction of the new processes to the company organizational structure. Stage Euro 1 The process management and redesign study and consulting. 2 The implementation of the redesigned process using IT tools Including employee training and introduction of the new Processes to the company organizational structure Total From 9000 to16000 From 4000 to 7000 From 5000 to 9000 Description Cost in

Conditions for implementation (infrastructures required etc.)

Infrastructure requirements: An operating transactional and accounting computerized system inclosing the commercial part of the transactions. A network that connects all key personnel. Workstations with Windows NT or Windows 1995 system, XP or latest version. An exchange server (MS outlook, or MS back office)

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CHAPTER 3 DATA PROCESSING AND ANALYSIS

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3.1) IMPLEMENTATION PROCEDURE OF BPR

Steps / Phases of a BPR project A BPR project consists of specific steps aiming to a successful outcome.. The necessary Steps in a rapid re-engineering methodology are the following as they presented.

STEP ZERO - preparation and coordination of the project.

Duration: Two days Participants: BPR team, BPR consultants.. Objectives: To establish a strong management support To explain to the members of the BPR implementation team the implementation details of the project and their role in the successful outcome in the BPR effort. Actions taken: Explain to the top-level management the necessity to commit to the BPR project. Allocate the most capable employees to the BPR implementation team and assign roles for each one of them.

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Run an 8-hour workshop having as participants the members of the BPR implementation team. The consultants will present the project step by step, as well as, the role of the implementation team in the success of the project.

STEP 1 - Business diagnosis & measurements

Duration: 4 weeks Participants: BPR team, BPR consultants, personnel involved with processes Objectives: To diagnose & identify problematic areas in the current processes To measure the performance characteristics of the current processes based on measurable factors such as average cycle time, delays, number of mistakes or number of customer complaints.

Actions taken: Record physical on the site measurements for each step of a process related to time,

resources spent or efficiency. Input all measurements in the process management tool for further evaluation and

analysis. Identify added value processes that have a major impact on customer service.

STEP 2 - Selection of processes for change and modeling.

Duration: 7 weeks Participants: BPR team, BPR consultants. Objectives: To identify the strategic processes that are feasible to change 24

To redesign and model the selected processes

Actions taken: Set the characteristics of the processes that are more important to the organizational Goals. Based on the characteristics identify the processes that will change based on the added value they provide and their feasibility for change. Redesign processes based on the characteristics that serve the organizational goals Simulate the processes in running environment using the process management tool Model the new process using the diagramming tool of the process management tool

STEP 3 - Technical design of the solution

Duration: 10 weeks Participants: BPR team, BPR consultants, IT experts. Objectives: To automate modeled business processes (step 2) using networks and workflow tools To redesign and model the selected processes

Actions taken: Establish network connections between process team members. Prepare intranet applications to exchange forms and documents between team members Prepare workflow application that will implement each step in the redesigned process automatically. 25

STEP 4 - Personnel adjustment & training.

Duration: 10 weeks Participants: Process team members, process coordinator, trainers.

Objectives: To train Personnel in the new ways of working using IT in the redesigned processes. To redesign and model the selected processes

Actions taken: Adjust each position according to skills needed in the new process.Provide training in the operation of new processes, so employees will feel comfortable in the changing job environment

STEP 5 - Management of change & employee empowerment.

Duration: 1 week Participants: BPR team, BPR consultants, process team, executive management. Objectives: To establish a positive attitude for the change between employees To minimize the resistance to change between employees by empowering their position based on performance appraisal and bonus systems.

Actions taken: Establish executive management determination for change and determinate any attempts of resistance to change. 26

Facilitate the change process outlining the positive effects of change

STEP 6 - Introduction of new processes into business operations.

Duration: 2 weeks Participants: The whole business organization Objectives: To set the time and date of operating under the new processes, emphasizing the fact that working under the old processes is not an acceptable practice. Actions taken: Prepare and test all background resources (IT, documents, equipment) Set time and date for operating under the new processes. Do not allow any non-conformities in the operations of new proces

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3.2) BPR CRITICAL SUCCESS FACTORS FOR MANUFACTURING

INDUSTRY
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1. Top management commitment 2. Process management 3. Education and training 4. Empowerment and involvement 5. Information and analysis 6. Customer satisfaction

1. Top management commitment Research suggests that most quality tools associated with BPR do not generally produce an advantage, but a certain tacit behavioral feature such as executive commitment can produce an advantage. Many a time BPR initiatives have failed to fulfill their potential due to lack of senior management commitment to the quality process. Thus, for BPR, commitment by the management is essential. Without it; there is no need to proceed further.

2. Process management Process management focuses on managing the construction process so that it operates as expected, without breakdowns, shortage/missing materials, tools, etc. It is needed to reduce rework and waste due to misspecification of processing parameters. This provides clarity of ownership and less reliance on inspection. In the context of construction, specific activities like planning the sequence of field tasks, analysis of layout, access, temporary facilities, Innovative use of materials, innovative use of construction equipment and tools, and the use of pre-assembly or pre-fabrication items are carried out. Also, constructability is included in the contract document. Pre-work, demobilization, execution are a part of process management.

3. Education and training

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Education and training forces employees to not only possess the adequate knowledge and skills to perform their jobs, but also to possess specific values, knowledge, and skills associated with BPR issues and activities. Reasons cited for the failure of BPR initiative include the lack of appropriate training and inadequate knowledge. Thus employees will be motivated to engage in quality-oriented behavior when their roles and the relevance of their training to overall quality goals are clarified. 4. Empowerment and involvement Empowerment and involvement enhances the individual's self-esteem and improves his/her ability to solve problems and to make low-risk decisions. Worker motivation, responsibility, and accountability are generic concepts that can benefit any business organization. The causes of ongoing quality problems like lack of team work, conflict, and lack of worker involvement are overcome by personally participating in quality improvement activities, which leads to the success of BPR.

5. Information and analysis Information and analysis consist of evaluation for various policies and strategies, quality audit, analysis of quality costs, department/function performance evaluation, and employee and supplier performance evaluation

6. Customer satisfaction A construction organization may outperform the competition by being able to anticipate and respond quickly to customers demands with new ideas and technologies and to produce constructed facilities that satisfy or exceed customers expectations. Despite the use of the latest process improvement techniques and capable management, a firm's neglect of Its customers may lead to disaster. Without customer focus, the BPR programme will lack the foundations on which to build further.

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3.3) Problems Faced by Mahindra and Mahindra:

Factors Manufacturing Inefficiencies: The Company Facing some problems in the manufacturing department the some machines were not working and giving the less output than required.

Poor productivity: The poor manufacturing efficiency leads to the poor productivity for which BPR is the very essential tool.

Long production cycle: The Finished product required the longer time to produce in the different department.

Sub-optimal output.

Unhealthy work culture

Corruption was widespread

Decision to focus on enhancing productivity and delivering world-class quality at the least possible cost.

Ambition to become the largest tractor manufacturer in the world.

The three Cs (customers, competition, change)

M & M faced resistance from unions while implementing BPR

Fear of Downsizing

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Analyze the BPR implementation exercise at M & M

Implementation started in mid 1990s Resistance from the unions Re-engineering the layout and method of working Cellular Manufacturing Multi-tasking through multi-machine manning Reduction in non-productive activities Implementation of TPM & Kaizen

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3.4) Comments on the benefits M&M reaped as a result of BPR program

Around a 100 officers produced 35 engines a day as compared to the 1200 employees producing 70 engines in the pre-BPR days

Igatpuri Plant: Employees declined by 400 but productivity went up by 125 engines per day

Nasik Plant: 125% improvement in productivity

Reduction in employee costs

Value added per employee increased from 0.3 million to 0.46 million

BPR was a way of reengineering our plants and making them viable in a competitive environment

Better inventory control

Better sourcing

Better order distribution across plants

Online availability of data

Transparent access to data

Process transparency

Integrated sales and supply chain

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 Drastic reduction in work in process cost

Near about two time increase in productivity

Lead Time reduces to 30%

Scrap Material reduces to Large Extent

3.4.1) Measures taken by manager in a shop floor to ensure BPR success:

Training and Motivating workforce

Identifying leaders

Creating a conducive environment and changing work culture

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3.5) Condition of Mahindra and Mahindra after Implementing BPR:

Highlights:

Improve PTLs capacity utilization from 45% to 55%

6 to 8% growth in the tractor segment

Mahindra & Mahindras Farm Equipment Sector (FES), a part of the U.S. $7.1 billion Mahindra Group, maintained its leadership position in the tractor industry Total tractor sales (domestic + exports) in October 2010 stood at 24281 units, as against 18772 units for the same period last year, an increase of 29%. total cumulative sales (domestic + exports) stood at 119938 units, as compared to 102639 units for the corresponding period last year, an

increase of 17%.Domestic sales is 23378 units, as against 17796 units for the same period last year, thereby registering a growth of 31%. This is by far the highest ever monthly domestic sales. The exports stood at 903 units, as against 976 units .

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Condition of Mahindra and Mahindra after Implementing BPR: Mahindra and Mahindra sales
Before implementation of BPR sales in units tractor segment sales cumulative sales domestic sales export 102639 17796 903 119938 23378 976 18772 After implementation of BPR sales in units 24281

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CHAPTER-4 FINDINGS

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CHAPTER-4 FINDINGS
Some of the key findings during the project are as follows: Leadership and commitment by top management is the most critical factor for the successful implementation of BPR in building construction. Once it is known exactly where the organization is, the manager can take steps to improve the overall effectiveness of total quality management.

This study also found out that the first five critical problems of BPR implementation are -:

(1) Customer focus; (2) Relationship with supplier, contractor and subcontractor; (3) Leadership and commitment of top management; (4) Employee involvement and commitment; and (5) Education and training.

These five priority factors should be given more attention in order to achieve satisfactory level.

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CHAPTER-5 CONCLUSION

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CHAPTER-5 CONCLUSION

BPR is world-wide applicable technique of business restructuring focusing on business Processes, providing vast improvements in a short period of time. The technique Implements organizational change based on the close coordination of a methodology for Rapid change, employee empowerment and training and support by information Technology. In order to implement BPR to an enterprise the followings key actions need to take place: Selection of the strategic (added-value) processes for redesign. Simplify new processes - minimize steps - optimize efficiency -.(modeling). Organize a team of employees for each process and assign a role for process Co-coordinator. Organize the workflow - document transfer and control. Assign responsibilities and roles for each process. Automate processes using IT(Intranets, Extranets, Workflow Management) Train the process team to efficiently manage and operate the new process Introduce the redesigned process into the business organizational structure A single point of contact is provided to customers. A hybrid centralized/decentralized operation is used

It requires management skills o f a h i g h o r d e r and is frequently undertaken by rms with little or no formal training in management. To complete the structure t for its purpose, right rst time, and to predetermined quality standards requires not only planning, organizing, budgeting, controlling and careful adherence to an overall project management system but a l s o a h i g h level of understanding o f h u m a n motivation and behavior 40

within prescribed contractual obligations.BPR is a continuous process of incremental improvements.

CHAPTER-6 RECOMMENDATIONS

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CHAPTER-6 RECOMMENDATIONS
The following some of the recommendations that will help the BPR to reach greater heights: The performance of Business Process Reengineering must be carried out permanently in the company to prevent all budget overrun, progress slow, reworks may be happening from the existing projects and future projects.

The performance of Business Process reengineering must be concerned from the top management to everybody in the company.

Examine the BPR methods being used to determine if the contractor is properly controlling design and construction activities as per the standard requirements.

Also it is very important to provide the opportunity to the employees of the organization to express their ideas or whatever they want to express.

Management should involve the workers representatives in all managerial activities so that the transparency could be maintained and through this they can win the confidence of the employees.

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 Management should give due importance to mental relaxation & social cultural development of the employees who strives hard for the company.

CHAPTER 7 BIBILOGRAHY

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CHAPTER 7 Bibliography

E- Books:

Cary, Howard B.; Helzer, Scott C. (2005), Modern Welding Technology, Pearson Education Raj, Baldev; Jayakumar, T.; Thavasimuthu, M. (2002), Practical non-destructive testing, Woodhead Publishing Annual book of American society for testing and material standards: volume 5 Wikipedia, online encyclopedia.

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