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D.PERIYASAMY (14MI08) ME- CIM ERP ASSIGNMENT 1 A Study on Reengineering Process at Hero Motor Corp Ltd. Introduction Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality, service and speed.‖ BPR advocates that enterprises go back to the basics and re examine their very roots. It doesn‘t believe in small improvements. Rather it aims at total reinvention. As for results: BPR is clearly not for companies who want a 10% improvement. It is for the ones that need a ten-fold increase. According to Hammer and Champy, the last but the most important of the four key words is the word-‗process.‘ BPR focuses on processes and not on tasks, jobs or people. It endeavors to redesign the strategic and value added processes that transcend organizational boundaries. Business process re- engineering (BPR) began as a private sector technique to help organizations fundamentally rethink how they do their work in order to dramatically improve customer service, cut operational

A Study on Reengineering Process at Hero Motor Corp Ltd OK

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D.PERIYASAMY(14MI08)ME-CIM ERP ASSIGNMENT 1A Study on Reengineeing Po!e"" #t $eo Moto Co% &td.IntroductionReengineeringis thefundamental rethinkingandradical redesignof businessprocesses toachieve dramatic improvements in critical, contemporary measures of performance such as cost,quality, service and speed.BPR advocates that enterprises go back to the basics and re examine their very roots. It doesnt believe in small improvements. Rather it aims at total reinvention. sfor results! BPR is clearly not for companies "ho "ant a #$% improvement. It is for the onesthat need a ten&fold increase. ccording to 'ammer and (hampy, the last but the most importantof the four key "ords is the "ord&)process. BPR focuses on processes and not on tasks, *obs orpeople. It endeavors to redesign the strategic and value added processes that transcendorgani+ational boundaries. Business process re&engineering,BPR- beganas aprivatesectortechniquetohelporgani+ations fundamentallyrethinkho"theydotheir "orkinorder todramatically improve customer service, cut operational costs, and become "orld &classcompetitors. BusinessProcessRe&engineering,BPR-isbasicallythefundamentalre&thinkingand radical re&design, made to an organi+ation.s existing resources. It is more than *ust businessimprovising. It is anapproachfor redesigningthe"ay"orkis donetobetter support theorgani+ations mission and reduce costs. Reengineering starts "ith a high&level assessment of theorgani+ation.s mission, strategic goals, and customer needs. /ithin the frame"ork of this basicassessment of mission and goals, re&engineering focuses on the organi+ation.s business processes0the steps and procedures that govern ho" resources are used to create products and servicesthat meet theneedsofparticularcustomersormarkets. Re&engineeringrecogni+esthat anorgani+ation.s business processes are usually fragmented into sub processes and tasks that arecarried out by several speciali+ed functional areas "ithin the organi+ation.Organization Wide Commitment:1here is no doubt that ma*or changes to business processeshaveadirect impact onprocesses, technology,*obroles, and"orkplaceculture. 2ignificantchanges to even one of those areas require resources, money, and leadership. 3ike any large andcomplex undertaking, implementing reengineering requires the talents and energies of a broadspectrumof experts. 2ince BPRcan involve multiple areas "ithin the organi+ation, it isextremelyimportant toget support fromall affecteddepartments. 4ettingenterprise "idecommitment involves the follo"ing! top management sponsorship, bottom&upbuy&infromprocess users, dedicated BPR team, and budget allocation for the total solution "ith measures todemonstrate value. Reengineering efforts can by no means be exercised "ithout a company&"idecommitment to the goals to be achieved. 1op management must recogni+e the need for change,develop a complete understanding of "hat is BPR.Introduction to Automobile IndustryHistory of two wheelers:1he motors on mini&bikes, scooters, and mopeds, or motori+edvelocipedes, are usually air&cooled and range from 56 to 56$ cubic cm ,#.6 to #6 cubic inches- indisplacement7 the multiple&cylinder motorcycles have displacements of more than #,8$$ cubiccm. 1he automobile "as the reply to the #9th&century dream of self&propelling the horse&dra"ncarriage. 2imilarly, the invention of the motorcycle created the self&propelled bicycle. 1he firstcommercial design "as a three&"heeler built by :d"ard Butler in 4reat Britain in #;;"iththeflagshipcompany'ero(ycles7 =r. 2atyanand=un*al, =r. Bri*mohan3all=un*al and =r. ?. P. =un*al continue to carry the torch and are actively involved in the day&to&day operations of the 'ero 4roup. 1he saga is being continued "ith the same +eal by the secondand third generations of the family and by the large "orking force of the 'ero 4roup. 1he 'ero4roup is a thriving example of three generations of a family "orking and striving together toensure quality, satisfaction and extensive gro"th. 'ero =oto(orp 3td. ,@ormerly 'ero 'onda=otors 3td.- is the "orld.s largest manufacturer of t"o&"heelers, based in India.Review of Literature study on assessing readiness for business process reengineering by Abdolvand et al., (2008)reportedreadinessindicatorsinsixcategoriesthefirst fivecategories, egalitarianleadership,collaborative "orking environment, top management commitment, supportive management, anduse of information technology are positive indicators. 1he sixth category, resistance to changehas a negative role. Eierman & Sc!ltz, ("##$) described Business Process Reengineering ,BPR-is the radical, cross&functional redesign of the standard operating practices used by organi+ationsto produce or achieve certain outcomes. Research on critical success factor of BPR byAmad etal., (200%) revealed that seven factors "ere found to be critical to BPR implementation success.1hefactors areteam"orkandqualityculture, qualitymanagement systemandsatisfactoryre"ards, effective change management, less bureaucratic and participative, informationtechnologyAinformation system,effective paper management and adequate financial resources.ccordingtoAttaran&Wood, ("###)Businessprocessreengineeringisthehottest trendinmanagement. Bone "ell, it delivers extraordinary gains in speed, productivity, and profitability.But process redesign is not al"ays successful and almost al"ays accompanied by pain or at leastunpleasant side effects. 1he contemporary business environment in "hich an organisation existsis becoming increasingly dynamic. 1he pressing need to improve the existing business processesin an organisation, results in the appearance of a ne" field called Business ProcessReengineering &ar'anovic, (2000). study on (oordination and transformation in business processes by (old)!l & *ind, (2008-derives characteristics of the transformative as "ell as the coordinative vie". 1hese are used asthe basis for pinpointing important characteristics of an integrative vie".study on impact ofreengineeringbyCan&+eel, ("##8)discussedaframe"ork"hichvie"sthecausesandimpact from t"o aspects, namely, external and internal dimensions. Reengineering is becomingan increasingly popular option for corporations seeking radical process change. (entral to thesuccess of reengineeringis thecoordinationof informationtechnology,I1- throughout theorgani+ation Can & *and, ("###). Al,&a-ari et al., (200") in their stud discussed that despitethe "idespread adoption of business process re&engineering ,BPR-, it has in manycasesrepeatedly failed to deliver its promised results. 1he lack of integrated implementation approachto exploiting BPR is seen as one of the important reasons amongst others, behind BPR failures.Cet, a relative void in the literature remains the scarcity of suitable models and frame"orks thataddress the implementation issues surrounding BPR. ccording toA!rand et al., ("##.)numerousdefinitionsandlistsofkeycomponentstosuccessfulreengineeringhaveconfusedmanagers as to "hat reengineering is in theory and in practice.Research MethodologyNeed and Significance of the Study:In a "orld of rapid flux, organisation must change their priorities from a traditionally popularfocusonplanning, control andmanagedgro"th, toemphasi+espeed, innovation, flexibility,quality service and cost. 1he study is limited to Dreengineering for business excellence"ith the advent of the internet and e&commerce, business is getting closer to the customers.Scope of Study:1his study focuses on ho" reengineering help in business excellence.1he study also looked at the Problems faced by businesses in implementation of reengineering process.1he study also looked at the success and failure factors of reengineering.'()e!ti*e" o+ Study,i-1o assess the Impact of Business Reengineering Process ,BPR-on organi+ationalperformance.,ii-1o determine 'o" Business Reengineering Process,BPR- can affect the Eualitymanagement,iii- 1o determine ho" Business Reengineering Process ,BPR- can affect I1 infrastructure.,iv-1o determine ho" Business Reengineering Process ,BPR- can affect technology./01ote-i-: /o ". 1here is no significant relationship bet"een change of management F culture and reengineering./"".1here is a significant relationshipbet"eenchange of management andculture andreengineering./o 2. 1here is no significant effect of reengineering on I1 Infrastructure./" 2. 1here is a significant effect of reengineering on I1 Infrastructure./o 2. 1here is no significant effect of reengineering on technology competence./" 2. 1here is a significant effect of reengineering on technology competence./o 3. 1here is no significant effect of reengineering on Euality management./" 3. 1here is a significant effect of reengineering on Euality management./o $. 1here is no significant relationship bet"een Business Reengineering Process and organi+ational performance./"$.1here is a significant relationship bet"een Business Reengineering Process andorgani+ational performance.Re"e#!, De"ign1he study design is descriptive in nature. Bescriptive study is a fact &finding investigation "ithadequate interpretation. It is the simplest type of research and is more specific. =ainly designedto gather descriptive information and provides information for formulating more sophisticatedstudies.Too-" o+ D#t# Co--e!tion1he research instrument used in the study is a closed ended questionnaire and @ield survey "as carried out and the responses received "ere recorded.1he study is confined to a single industry. Go comparison has been made "ith the other industry.1here "as a time constraint. 1herefore, the sample taken "as small.1he research "as dependent on the information provided by the respondents "hich maybe insufficient and incomplete.1. GenderGENDER RESPONDENTS=ale ;>@emale #