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INDIAN INSTITUTE OF MANAGEMENT RAIPUR1

PACIFIC BELL: CENTREX REENGINEERING CASE ANALYSISGROUP 3ROHIT KRISHNAN (14PGP041)SINDHU NA (14PGP042)SRAVANA KUMAR (14PGP045)SANTOSH KUMAR S (14PGP094)INDIAN INSTITUTE OF MANAGEMENT RAIPUR2Director of Process reengineering Michael Littlejohn

ABOUT THE COMPANYCentrex Flagship project Features : automatic callback, call forwarding, call holding call waiting, conference calling etc.

Called for 3 Rs : RestructuringRefocusing Reengineering

1990 - long term initiative - Competitive Readiness Services offered: Local Exchange Service, toll service, network access, directory advertising selected information services

1.1 million Centrex LinesINDIAN INSTITUTE OF MANAGEMENT RAIPUR3AS-IS PROCESSHighly complex, labour intensive and error proneMultiple handoffs were required13 individuals of various speciality groups Cost effectiveness and quality of the provisioning process have to improve An error at any point would lead to reworkCustomers were not satisfied with the lead timesINDIAN INSTITUTE OF MANAGEMENT RAIPUR4OBJECTIVES - CENTREX REENGINEERING PROJECT

INCREASE SPEEDMINIMISE COSTERROR FREE PROCESSCUSTOMER SATISFACTION 100%INDIAN INSTITUTE OF MANAGEMENT RAIPUR5THE REENGINEERED PROJECT

Current StateProposed Future StateTime : Delivery of service5 15 daysSame dayCost : Per dayBaseline75-80% reductionQuality defects per day60Customer satisfaction93%100%Flow Through Scenario Virtual Team Scenario More Radical Scenario INDIAN INSTITUTE OF MANAGEMENT RAIPUR6REGIONAL BUSINESS UNITSNone had implemented the entire proposed designINDIAN INSTITUTE OF MANAGEMENT RAIPUR7Make a Difference - 1992Implemented windows based front end within 60 days of the start of pilotMaintained old job rolesProblemInformation sharing, Reliance on paper based documentsLed to Delay in fulfilling ordersNone had implemented the entire proposed designImplemented new rolesProblemCosts to provision too high

Valley Central RBU embraced roles during 4th quarter 1992Was successful hereRollout in 5 months10% productivity improvementProblemNorth Coast RBU Union problemLA , San Francisco Bay RBU didnt embrace Centrex RE

ORANGE COUNTYSACRAMENTOOTHER RBUsINDIAN INSTITUTE OF MANAGEMENT RAIPUR8PACE OF CHANGE HAS BEEN LESS THAN ANTICIPATEDOpposition from Union membersNorth Coast Regional Business Unit

Difference between BPR and normal changeBPR Expensive

Changes made during pilot testsVirtual team work Manual work

Decentralization7 Decentralized Units

INDIAN INSTITUTE OF MANAGEMENT RAIPUR9Advantages

Time, Cost, Quality, and Customer Satisfaction.

The lead time for simple line order was reduced from 5 days to 3 days.

The error has been significantly reduced.

Customer satisfaction had increased.

The no. of people involved had reduced.

The process became less complex.

Problems

The reengineering team did not propose the BPR by looking in to all the RBUs.

Unavailability of the IT- based systems such as groupware and single system image.

Scope limitations(only simple centrex systems for trial)

The trial members were given access to additional systems from their work stations but the data from those systems was not integrated.

RBUs working in silos

Unresolved labour issues

INDIAN INSTITUTE OF MANAGEMENT RAIPUR10Possible Alternatives

Adhoc solutions for RBUs

Inclusivity of Labour Unions

Better Estimation of lead times

INDIAN INSTITUTE OF MANAGEMENT RAIPUR11THANK YOU