CHAPTER NO.

Approaches In Turnaround
Strategies

Reengineering Process Team

Meaning

BPR team is responsible for execution of strategies

and make BPR a success. BPR team has a diverse set
of members from within and outside the
organization. It is a cross-functional team, mixed in
depth, knowledge, skills and experience. Each
member has a particular task to work.
A BPR team consist of
1. Team Leader
2. Process Owners
3. Reengineering Teams
4. External Consultants

Determinants of Effective BPR

Capability of the team members
Their motivation and dedication
Their creditability
Their creativity
Team spirit and empowerment
Training of members
Effective team leadership
Proper organization of the team
Adequate size
Interchangeable accountability
Clarity of work assigned
Proper understanding of goals

BPR Leader
BPR leader also known as BPR head or manager is one of
the very important members of the reengineering team.
He sponsors, authorizes and motivates the overall
reengineering effort. He is the senior executive leader
or the CEO or head of any department or any other
important person from the top management team.
Qualities

Strong, Consistent and continuous involvement

Ability to delegate
Open to ideas and suggestions
Excellent Communication skills
Confidence
Commitment
Ability to motivate and inspire

Process Owners
A process owner can be defined as an individual
held accountable and responsible for the workings
and improvement of one of the organizations
defined processes and its related sub processes.
Qualities
Strong technical knowledge
Motivate team members
Encourage creativity
Listen to problems
Creativity
Responsible for outcome of BPR
Resolves process bottlenecks
Teamwork

Reengineering Teams
This team carries out the actual job of reengineering the
business process. They actually implement the BPR
strategies designed by leader and process owners and
communicate the outcome and feedback to process
owners.
Qualities
Cross function team members
Technical, professional and financial knowledge
Creativity and enthusiasm
Communicate for any bottlenecks to process owners
Team spirit
Positive attitude
Innovative
Open to ideas

External Consultants
External Consultants look at the process

initiatives from an outsider prospective and

hence are better foreseeing problems. It is a
joint initiative between the senior
management, the operational staff and the
external consultants.

Advantages of External
Consultants
Brings a number of useful ideas and skills
Impartial and independent opinion
Guidance beneficial at all stages of BPR
They are objective
Not involved in inter office politics
They have followed the process before
Bring information and best practices
Good communication paths
They can question at top management
They have ability to take greater risk

Disadvantages of External
Consultants
Resistance and non cooperation of staff
Threat secrecy of business strategies
High cost
Time consuming activity
Not suitable to small scale business
Loosing of control

KAIZEN
Kaizen is a system that involves every

employee from upper management to the

cleaning staff. Everyone is encouraged to
come up with small improvement
suggestions on a regular basis. This is not
once a month it is a continuous process.
It is a improvement in Quality,

Technology, Processes, Company culture,

Productivity, Safety, Leadership.

Benefits of Kaizen
Less waste
People are more satisfied
Improved commitment
Improved retention
Improved competitiveness
Improved consumer satisfaction
Improved problem solving
Improved teams

Distinguish between KAIZEN and

BPR
Attribute

Kaizen

BPR

Meaning

Continuous
improvement

Innovation

Effect

Not dramatic

Dramatic

Speed

Small steps

Long steps

Time frame

Continuous

Interrupted

Participation

Each employee

Selected few

Investment

Small

Large

methodology

Group work

Individual efforts

5 S Principles
Seiri (Sort)
Seiton (Straighten)
Seiso (Shine)
Seiketsu (Standardize)
Shitsuke (Sustain)

Seiri (Sort)

Seiketsu

JIT (Just in Time)

A philosophy of manufacturing based on planned
elimination of all waste and continuous
improvement of productivity.
JIT is used for the purposes of:
Removing cost
Improving quality
Improving performance
Improving delivery
Adding flexibility
Increasing innovation

Advantages of JIT
It keeps stock holding cost
Eliminates waste
Less working capital is required
Return on investment is high
Incorporates change in demand
Encourage right first time concept
High quality products and greater efficiency derived
Close relationship with suppliers and customers
Constant communication with customer
Overproduction is eliminated.

Disadvantages of JIT
Have to be high reliance on suppliers
Would not be able to meet the unexpected

increase in order
Transaction cost would be high
Not suitable for small organization

ERP (Enterprise Resource

Planning)
ERP is a business management software that

a company can use to collect, store, and

manage and interpret data from many
business activities includingProduct planning cost
Manufacturing or service delivery
Marketing and sales
Inventory management
Shipping and payment

Benefits of ERP System:

Integration across all business processes
Automation enhances productivity
Increase overall performance
Quality reports
Integrates across the entire supply chain
Gives a real-time view of data
Enhances customer service

ISO International Organization for

Standardization
ISO is a voluntary body for setting

standards.
It promotes development of
standardization and related activities to
facilitate international trade in goods and
services and cooperation on economic,
intellectual, scientific and technological
aspects.
ISO was founded on 23 February 1947

Some ISO standards

ISO 9001- Quality management system
ISO 14001 - Environmental management

system
ISO 20000 - IT service management system
ISO 50001 Energy management system

Flowcharts
A flowchart is a type of a diagram that

represents a workflow or process showing the

steps as boxes of various kinds, and their order
by connecting them with arrows.
A diagram of the sequence of movements or
actions f people or things involved in a
complex system or activity.

Benefits:
It provides an easy way of communication
Diagrammatic representation
It gives a step by step solution to a problem
Accuracy in logic flow
It represents a data flow
Mandatory in certain cases
It is useful for documentation purpose

Flowchart Symbol
Name

Symbol

Use in Flowchart

Oval

Beginning or end

Flow line

Direction of logic flow

Parallelogram

Either input operation or output

operation

Rectangle

Process to be carried out

Diamond

Decision to be made

Process Mapping
Process mapping is a workflow diagram to bring
forth a clearer understanding of a process or
series of parallel processes.
It is involved in defining
What a business entity does
Who is responsible
To what standard a business process should be

completed
How the success of a business process can be
determined

Steps of Process Mapping

Process identification
Information gathering
Interviewing and mapping
analysis

Benchmarking
A measurement of the quality of an
organization policies, products, programs,
strategies, etc. and their comparison with
standard measurement or similar
measurement of its peers.

Steps involved in
Benchmarking
Select a product, service or process to

benchmark
Identify the key performance metrics
Choose companies or internal areas to
benchmark
Collect data on performance and practices
Analyze the data and identify opportunities
for improvement
Adapt and implement the best practices,
setting reasonable goals and ensuring
company wide acceptance.

Types of Benchmarking
Internal
Competitive
Functional
Generic

Thank you