UNIVERSAL BUSINESS SCHOOL

KARJAT(Mumbai)

ASSIGNMENT 1: CASE STUDY ON HP

SUBMITTED TO: Mr.Sourabh Chowdhuri

By: Surbhi Jindal

Dated: 21st February 2015

Class:-PGDM1

Roll Num:-1416

HP Case study Solution

Q1- Analyze the case in detail and explain key success factors in

implementation of BPR at Hewlett Packard?

A-Business Process Reengineering

Executive Summary Hewlett-Packard follows a fixed sequence for the processes involved in launching a new

product. There is nothing wrong in following a fixed procedure unless the process is

flawless and company is successfully meeting its expectations. Hewlett-Packard has various

departments working independently in launching a new product.

When the respective department gets a new idea they start working on

their own. The marketing team is expert in conducting market research, and then they

decide the Marketing Mix of the new product that has to be launched. By the time, Research

and Development team has already done their job by selecting the technology they feel that

is most appropriate. Also the Product Design department has successfully generated the

design models in CAD/CAM software. Then the Marketing team can again recommend

changes in the design. Later on, the prototype of the new product is manufactured;

software and hardware tests are conducted well.

Problem Recognition The drawback was that they followed the old system of business processes where after

completion of one stage only one could move to another stage. Method Followed-They

followed the sequential method. Selling Price-After the marketing team analyzed the

market forces once only then did it recommend a selling price for a new product. R & D-

Then the research and development team scanned the technologies available and chose

one which was correct.

Designing- Once the objectives were created and the CAD /CAM lab was then

commissioned to design the new product. Marketing- The designs were then forwarded to

marketing for approval in case of any problems it was sent back to the drawing boards. The

procurement team was then alerted about the components needed, Software team loaded

the software, and Manufacture release tests were conducted to check how well the product

could be manufactured in the company’s plants. The Bill of material was needed by the

marketing department and the product was then forwarded to the sales and service team.

These problems gave rise to Greater lead time, Greater time utilized from pricing to

launching of the product. Time where new products can be launched quickly is lost.

Solution It is recommended to arrange a weekly meeting of cross functional teams from marketing,

manufacturing and research departments. The marketing team’s suggestions are

recommended on the spot to available technologies, which are tracked by a special team.

As work will begin on designing one product, the next weekly meeting will see birth of

another idea and another product. At any point, there will be several product designs in

various stages of completion, ensuring a continuous stream into the market.

The problems earlier raised were thrashed out by cross functional teams.

As the work begins on the designing of one product, the next weekly meeting saw the birth

of a new idea and works on the new product started simultaneously. The work on several

products carried out at the same time saved time. Continuously new products were

launched in the market. Launch of a new product was at the interval of 4 months.

Q2-What is meant by “Business Process Reengineering’’? A-Business Process Reengineering ‘’the fundamental rethinking and radical redesign of

Core business processes to achieve dramatic improvements in critical performance

measures such as quality, cost, and cycle time’’

The concept of BPR was first introduced in the late Michael

Hammer's 1990 Harvard Business Review article and received increased attention a few

years later, when Hammer and James Champy published their best-selling

book, Reengineering the Corporation. The authors promoted the idea that sometimes-

radical redesign and reorganization of an enterprise is necessary to lower costs and

increase quality of service and that information technology is the key enabler for that

radical change.

Hammer and Champy suggested seven reengineering principles to streamline the

work process and thereby achieve significant levels of improvement in quality, time

management, speed and profitability:

1. Organize around outcomes, not tasks.

2. Identify all the processes in an organization and prioritize them in order of redesign

urgency.

3. Integrate information processing work into the real work that produces the information.

4. Treat geographically dispersed resources as though they were centralized.

5. Link parallel activities in the workflow instead of just integrating their results.

6. Put the decision point where the work is performed, and build control into the process.

7. Capture information once and at the source.

The idea behind business process reengineering is to make your company more flexible, responsive, efficient and effective for all stakeholders including customers, employees and owners. In order for BPR to work, your business must be willing to make the following changes:

Change the focus from a management focus to a customer focus - the boss is not the boss, the customer is the boss.

Empower your workers that are involved in each process to have decision-making and ownership in the process.

Change your focus from managing activities to focusing on results. Get away from 'score keeping' and focus on leading and teaching so employees can

measure their own results. Change the company's orientation from a functional orientation to a process or

cross-functional orientation. This allows for an increase in organizational knowledge among its members and a greater degree of flexibility in accomplishing tasks.

Move from serial operations to concurrent operations - in other words, multitask instead of just doing one thing at a time.

Get rid of overly complex and convoluted processes in favor of simple, streamlined processes. Use the KISS Principle - keep it simple, stupid.

Stop trying to build an empire and protect the status quo, but rather invent new systems and processes that look towards the future

Q3-Discuss various categories of processes in BPR?

A- Business Process Re-engineering-It 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. It refers to the radical redesign of business processes. It aims at-

1) Eliminating repetitive paper intensive bureaucratic tasks

2) Reducing costs significantly

3) Improving product/service quality.

It is also called as business process redesign, business transformation, or business process change management.

1. External Process: Customer facing processes that deliver products and services of Value to the Customer examples:

Get Order-To get the orders Strategy Development-It converts market requirements into a business strategy, which identifies markets to be served and products and services to be offered.

Product Development- It uses this output as input in order to produce new product designs. To develop a product which has greater scope of acceptance in the market? Hp began product development and every week a new idea gave birth to a new product development.

Order fulfillment - It’s the company’s payoff. It converts an order request, a product design, and a factory into a product that is delivered into a customer’s hand. It delivers what a customer wants. HP developed products keeping in mind the customer.

Support Product- Use of technology to get the optimum level of product with help of the current technology. HP used all the available technology needed at that point of time for the product.

2. Management Process: Processes controlling and coordinating the organization's activities to ensure that business objectives are delivered. Examples:

Make Strategy- Use of various strategies which help in eliminating risks, reducing costs and achieving goals at a faster pace. HP Implemented cross functional teams working together.

Set Direction-To provide a vision and work unanimously towards achieving the same goals. HP took unanimous decisions.

Manage- To manage the teams, processes efficiently so that the goals of the company are met effectively in time as per planned along with the goals of the individuals.HP appointed separate team to have a check on the teams progress.

3. Support Processes: Processes provide infrastructural and other assistance to busine

IT-use of latest and available technologies needed at that time for that particular product. HP used technologies for the same.

Finance-Fundamental to the any service delivery capability is the effectiveness of the financial management advice and assistance with financial and corporate management systems development and implementation; and quality assurance reviews of existing systems implementations. HP implemented the pricing along with the cross functional teams.

HR Systems-Engineering in essence is creating the value, and reengineering is maximizing the value either in accordance to producer or user. The value according to the producer is the profitability and for the user satisfaction and benefit. HR reengineering is not an exception, it is a planned and programmed effort to maximize the value of HR , so organizational & competitive power may achieve maximum productivity & profitability for the organization, and maximum level of career satisfaction for the individual himself.

Operational process and procedures are the foundation for new operator orientation and training. Most organizations have no formal training program for new operators; typically new employees are mentored by another operator who may or may not transfer all the necessary knowledge to proper, safely, and efficiently operator the equipment. To ensure the necessary knowledge is transferred each time operational processes and procedures are critical.

Q4-Discuss Five elements of Business process Reengineering?

A- There are several reasons for organizations to reengineer their business processes:

(1) To re-invent the way they do work to satisfy their customers;

(2) To be competitive;

(3) To cure systemic process and behavioral problems;

(4) To enhance their capability to expand to other industries;

(5) To accommodate an era of change;

(6) To satisfy their customers, employees, and other stakeholders who want them to be dramatically different and/or to produce different results

(7) To survive and be successful in the long term; and

(8) To invent the "rules of the game."

Phase 1, it is stated that a BPR project begins with some sort of trigger, such as performance problem and pressure from a supply chain partner. It can also be driven primarily by an executive vision of how a particular aspect of the company should be. The discussion will be taken place at this phase and the proposals will eventually be made. Phase2, BPR mobilization occurs by selecting a project leader and forming a core BPR

team. The processes to be redesigned are selected and a preliminary assessment of IT infrastructure around those processes is made. A BPR plan and budget is proposed.

Phase 3, In this phase the business process is redesigned and performance comparisons

are made, sometimes through benchmarking with other companies. The process design is also readied for implementation.

Phase 4, the implementation and organizational transformation stage is the toughest

phase to execute. It includes designing the IS and modifying the IT infrastructure. Is also involves introducing and instituting the new process with its accompanying organizational design changes, training people and possibly re-skilling them and dealing with the political and human problems that occur whenever a large organizational change is made.

Phase 5, Ideally BPR is not a one-shot effort and the process needs to be monitored on a

continuous basis so that the process can be maintained and modified when conditions require.

The Participants in a BPR project There are a variety of participants in a BPR project as shown in above picture. At the heart of a BPR project is a core BPR team that messy manage the project and coordinate the different participants. The team includes a project leader. Any BPR project needs executive sponsors who are often champions for the project. Also, there is another important set of participants is the process owners. They need someone who has responsibility and accountability for a business process. It is pointless to reengineer a business process if the process owners are not involved and engaged in the project.