BPR case study Presentation Honeywell

7/27/2019 BPR case study Presentation Honeywell

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BPR Implementation at

Honeywell

A Case Study

Presentation



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.



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



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



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.



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.



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”.



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.



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.



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.



• 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



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.



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.



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



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



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



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



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.



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



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



Questions…

BPR case study Presentation Honeywell

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