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
organizations experiences with radical change for the
purpose of uncovering how they achieved success.
The organization we examine is Honeywell Inc. in Phoenix,
Arizona.

BPR- Business Process

Reengineering
Business process reengineering (BPR) is the
analysis and redesign ofworkflowwithin
and between an organization.
Radically change the way of business
Aims 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
startsWCM 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 to finish.
In 1990, entire plant went through
intensive six hour session.

 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.

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 principles and 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 to be 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
results whereas 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 road map to help teams work together to
prevent errors from occurring 100 percent
of the time.

PDCA cycle

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 meet stringent 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

Lessons from 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