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BPR Implementation at

Honeywell

 A Case Study 

Presentation

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Summary

• Global competition is driving organizations to become leaner and more

streamlined.

• Many organizations have turned to business process reengineering (BPR)

as a means to radically change the way they conduct business.

• We thereby embark on a case study to deeply explore one organization’s

experiences with radical change for the purpose of uncovering how they

achieved success.

• The organization to be examined/under discussed is Honeywell Inc. in

Phoenix, Arizona.

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BPR- Business Process Reengineering

• Business process reengineering (BPR) is the analysis

and redesign of workflow within and between an

organization.

• Radically change the way of businessAims at

• Eliminating paper-intensive,

bureaucratic task

• reducing costs significantly

• improving product/service quality

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Common problems with BPR

• Desire to change not strong enough

• Process under review too big or too small

• Reliability on existing process too strong

•

The costs of the change seem too large

• BPR isolated activity not aligned to the business

objectives

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Honeywell Starts with… 

• In year 1989, Honeywell management starts-

WCM program-World Class Manufacturing program

Three goals:

• Defect reduction,

• Short-cycle production, and

• Materials management.

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Steps taken… 

• System-wide view of the plant.

• Supported a focused-factory environment.

• Teams of multi-skilled workers were charged with

building entire products or modules from start tofinish.

• In 1990, entire plant went through intensive six hour

session.

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Steps taken… 

• To support factory focused paradigm all salaried

workforce was evaluated on pay for performance

basis.

• Manufacturing was moved to a handsomely

landscaped site.

• Factory focused paradigm= “TotalPlant”. 

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An Elephant story… 

The moral of the story is each blind man’s perception is based 

completely on his individual perception rather than on the reality 

of the situation.

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HoneyWell ‘s TotalPlant 

Based on four major principle

• Process Mapping

• Fail Safing• Team work

• Communication

Every team member must be educated in all four of the principlesand empowered to use what they have learned to solve business

and manufacturing process problems.

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Process Mapping

• Process mapping is a tool that allows one to model

the flow of any business process in a graphical form.

• How the process actually works across functional

boundaries.

• Enables all employees to see how the business

process actually works and how it can be changed tobe more effective.

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• The training philosophy at Honeywell focuses on

educating employees about the importance of total

customer satisfaction and world-class manufacturing.

• Process thinking helps to justify overall resultswhereas functional thinking concentrates only on

individual performance, not enterprise performance

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Fail Safing

• It is a method to identify a defect, analyze it to

understand its root cause, and then develop a

solution that will prevent that defect from occurring

again

• Fail-safing guarantees that a process will be defect-

free.

•

The PDCA (plan, do, check, act) cycle offers a roadmap to help teams work together to prevent errors

from occurring 100 percent of the time.

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Teamwork & Effective Communication

• The manufacturing vision creates the first step

toward a new work environment that fosters

teamwork.• It proposes that the workforce take ownership for

the success of the overall business

• Communication of the TotalPlantTM vision is

paramount to success.

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Information Technology

• Every IT system is aligned with manufacturing otherwise it is

not value-added.

•

It produces automation and control devices that must meetstringent levels of quality because its customers will accept

nothing less.

• The role of the worker is that of monitoring the devices to

make sure they are performing within strict tolerances.

• The IT department has made great strides to align its services

with the needs of the BPR

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SWOT

Strengths

• HoneyWell Corporation had strong market position and very

rigid and rugged business process.

•Top management uses the conceptual methodology like WCMand TotalPlant management for the implementation of BPR

• Main focused on the company oriented goal rather than

individual or subsystem goals

•Execution

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Weaknesses

• Work teams were based on Piecemeal or event type

of work rather than process

• “White spaces”- are gaps between different links inthe internal-supply chain

•

Lack of authority to make decisions where the workwas actually being done

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Opportunity

• HoneyWell can implement this kind of BPR to its all the group

companies.

• They can build the trust in the employee as well as with customer.

• Changes in the process can be carried out from the bottom level

also, if it is difficult to implement it from top to bottom.

• Customer satisfaction and company environment can be

improved with BPR

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Threats

• It’s very difficult to handle the most flexible element in the

organisation i.e. people’s behaviour 

• Improper training and development program can lead to

bad results for the organisation as an output of the BPRimplementation.

• Vision statement may vary from top management to the

bottom level workers.

•

Behavioural change is the most difficult type of change.

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Lessons form this Case

• People are the key enablers of change

• People need a systematic methodology to map processes

• Management attitude and behaviour can squash projects

•

Bottom-up or empowered implementation• BPR must be business-driven and continuous

• Execution is the real difference between success and failure

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Conclusion

• Execution separates the HoneyWell from other companies

• Change is a fundamental aspect of BPR

• Support from the top management is critical but actual

implementation should be carried out from the bottom-up

• Top management needs to convey to its people that BPR is

not being used to replace workers, but to improve quality,

reduce cycle time, and create value for customers

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Questions…