V Business process reengineering (often referred to by the

acronym BPR) is the main way in which organizations

become more efficient and modernize. Business process
reengineering transforms an organization in ways that directly
affect performance.

V Refers to radical redesign of business processes

V Reduction in costs of sales

V Reduction in delivery time

V Reduction in the inventory

V Reduction in defects

V Increased profitability

V Increased probability of accomplishing strategic objectives

V Greater ability to quickly react to changes in the business

environment
V BPR is done so as to reengineer the business ie to help
company achieve the lower cost , higher efficiency & better
management proper utilization of resources

V In SCM we strategize business to cut cost & take decision

V So BPR also helps us to take cost effective decision in

business so this is where BPR could be used in SCM & to take
decisions related to cost
V ë RD M
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V H SPI
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V MHINDR & MHINDR
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V Production facilities operating with traditional batch
manufacturing process

V arge in-process inventories: poorly defined process flow

V  workforce conditioned to narrow roles & responsibilities

V Manufacturing inefficiencies

V Poor productivity

V ong production cycle

V amine customer¶s needs

V Define strategic & tactical set of goals

V Strategic: subjective like increase in effectiveness, efficiency,

responsiveness etc.

V
actical: - objective like reduce lead time, inventories, cost etc

V ëactory lead time reduced

V WIP inventory turnovers doubled

V Delivered product defect rates reduced by half

V round a 100 officers produced 35 engines a day as compared

to the 1200 employees producing 70 engines in the pre-BPR
days
V M&M realized that it would have to focus on two issues when
implementing the BPR

V Program: reengineering the layout and method of working,

and productivity
V O
 

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R
V Has cut jobs in G capital by 11000

V Cut jobs in G locomotive by 5600

V Company has cut dividend by 75% for the year

V Job cuts in G engines by 1000

V Reduction in salaries
V
hey are investing $3billion for innovative cost cutting
strategies

V the innovations will:

a) Reduce by 15 percent the cost of procedures and processes
with G technologies and services.
b) Increase by 15 percent access to services and technologies
essential for health, reaching 100 million more people every
year.
c) Improve quality and efficiency by 15 percent for customers
through simplifying and refining healthcare procedures and
standards of care.