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Business Process Reengineering Examples – Understand and Learn from them

Do you know what business process reengineering is?

I t’s the radical reconsideration of a business process to achieve dramatic improvement in cost, quality, service and speed performance. Business process reengineering is the analysis and redesign of company processes. Check out some business process reengineering examples below.

You should observe some points when implementing business process reengineering, such as:

• A change of focus from management to the customer
• Managers must give power to their team’s
• Focus on results
• It’s not positive to score points, but to lead and teach
• Simple and optimized processes are better than complicated and intricate processes
• If a process continually doesn’t work, it’s time to come up with a new one, looking to the future.
• Always identify goals and purposes
• Keep the company mission in mind

Only by following these recommendations will business process reengineering work as expected.

Now that you understand what Business Process Reengineering is, let’s look at some examples and case studies.

Also see: What is process reengineering methodology?

Business process reengineering examples: BPR that works

There’s nothing better than tried and true BPR examples to really understand the subject. With this in mind, we’ve separated some business process reengineering examples that have been successful.

Business process reengineering examples : Fast food company

An example of business process reengineering that we can cite is that of a fast food company.

Completely redesigning the delivery of products can give you unexpected results. In this type of restaurant, the process goes like all others, the customer orders, the order goes to the kitchen, which prepares the meal and then delivers to the consumer.

Business process analysts realized that it would be more advantageous if the meal portions were previously prepared in a separate center, and delivered to the restaurants daily.

When the customer orders, staff place everything together and deliver it. This is a complete change in the process, resulting in greater control, fewer accidents, greater employee satisfaction, and increased ability to focus on customer needs, all without losing quality.

CURIOSITY : The next time you go to a hamburger fastfood restaurant, note that your cup is always placed in the center of the tray, reducing the risk of it falling over.

To relax before you check out the next Business Process Reengineering case study, watch this fun video:

Business process reengineering examples : company selling commemorative cards

In a company that offers products such as Christmas, anniversary, commemorative cards, etc., renewing the stock and changing the design of the cards is constantly fundamental.

On average, it takes three months for new items to reach the shelves. Across market research , it’s possible to realize that there would ideally be new products every month.

At first glance, it’s easy to say that the delay was at the production stage. When analyzing and mapping the process, it’s verified that the creation stage was the most time consuming.

Oftentimes the creative team receives the concept and several employees begin to perform the same task (duplicate actions), or an idea takes days to get off the paper. With this information, we can redesign the process completely, defining a cross-functional team from concept and creation, with incredible results in speed, costs and effectiveness.

This is an example of business process reengineering that shows the importance of studying the process and then modifying it.

Also see: Process mapping examples.

Process reengineering is about finding new solutions to old processes, check out this video because, often, we’re unable to see obvious process change solutions:

Business process reengineering examples : Creation, application and proofreading

One of the most distressing tasks for teachers and students, whether in universities or schools, is test creation, their use by students and subsequent marking.

One of the great problems teachers face is the student’s writing, which is often unintelligible, brought on by the students’ weariness to write by hand.

The solution? The application of evidence through electronic forms in notebooks where students can type, as well as having access to other tools that assist in their answers, such as spreadsheets.

To prevent students from querying improperly, these devices don’t have a wi-fi or internet enabled connection. They’re simple (and low-cost) devices in which the students upload the tests via pen-drive and then the teacher collects them. The teacher then connects the data to a system that helps them correct the tests (without needing to interpret the writing), share comments with students, access performance statistics, and access a database of questions that helps to develop the tests.    

See this infographic that summarizes the steps of Business Process Reengineering in a schematic way:

Business process reengineering examples : Creative Quartets

The process of creation in advertising agencies is divided, in brief, into 6 stages:

• The customer service team interviews the customer and passes the information to the planning team
• The planning team makes the necessary studies. Then develops strategy and delivers the request for the creation of pieces for the creative pair (editor and designer)
• After developing the requested pieces the creative pair alongside the planning and customer service teams carry out a presentation meeting. Eventual adjustments are then made to the campaign
• Customer service presents the campaign to the customer, often in conjunction with the creative pairing and planning team. Then receives customer feedback
• The process resumes, if the client requests adjustments or disapproves of the campaign

You should’ve noticed that these processes have four agents: the creative pair, a customer service professional, and a planning agent.

Conflicts between creation, planning and customer service are very common. Customer service complain of deadlines and not understanding the scope as much as the others. Creatives and planning, defend their points of view and claim that they’re doing the correct work and that customer service must convince clients of this.

To end this conflict in teamwork , an agency has developed creative quartets in which the 4 professionals work in their area of expertise, but divide a table and everyone are jointly abreast of all steps from the process, from the initial briefing to receiving customer feedback.

With this closeness, it became easier for each one to understand the difficulties of the others, generating a synergy that made this process much more productive and agile, becoming an example of successful process reengineering.

Know more: Definition of process management

Check out this schematic chart with important information on Business Process Reengineering:

Business process reengineering examples : Cereal products

The process of transforming food into cereal products begins on the farm with the harvest. This is followed by primary processing, packing and transportation to the processing plants (depending on the grain).

This large company analyzed its process and discovered a serious logistical problem. It lost almost 20% of the grains harvested during transportation from farms to the factories, located near the biggest consumption centers, due to the precariousness of the roads.

After a study, this Business Process Reengineering case came to the conclusion that it would be more profitable to move the factories nearer to the farms. Afterwards, they transport final products to large centers with much fewer losses.

The old factory sheds were transformed into distribution centers, helping to reduce the impact of the initial investment, they already had docks and other ready-made logistics infrastructure.

Know more: Watch this video with more in-depth details on what is Business Process Reengineering, take advantage of it now:

Business process reengineering examples : Non-integrated system

It might also be that your company has a disconnected system. This forces each team member or customer to go through several departments and people to solve a problem.

People lose information, they constantly repeat data, which frustrates everyone. You can solve this by a general change in the company’s system. Integrate systems with effective software that makes all information clear and available.

These are just a few business process reengineering examples, and how BPR can help companies with problems. Business Process Reengineering case studies, like these, are key to being inspired and provoking thoughts of innovative solutions for your business.

It’s important to remember that you shouldn’t make changes before mapping and modeling processes. For this, HEFLO is the best tool in the market, which allows you to understand exactly what your company needs.

Now that you’ve read about Business Process Reengineering examples, also check out examples of how to reduce costs in your company and get onto it now!

3 Comments . Leave new

Nice article. Well explained these terms and infographics really help me to understand this concept.

Thank you very much.

Good article. How can this be applied in small (tiny) organizations, mainly in trading businesses?

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• Business Management
• Process Automation
• Process Documentation
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• Process Mapping
• Process Modeling
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Toyota: a case study

Oct 30, 2014

710 likes | 2.04k Views

Toyota: a case study. Background. Toyota Motor Company was founded in 1937 by the Toyoda family. Business was relatively unsuccessful until Eiji Toyoda introduced the method of lean production after studying Ford’s Rouge plant in Detroit in 1950.

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• lean production
• production system
• product development
• lean production method
• production smoothing enables suppliers

Presentation Transcript

Background • Toyota Motor Company was founded in 1937 by the Toyoda family. • Business was relatively unsuccessful until Eiji Toyoda introduced the method of lean production after studying Ford’s Rouge plant in Detroit in 1950. • This lean production method became known as the Toyota Production System. • The production executive, Taiichi Ohno, successfully helped Toyoda improve his company using this new production method and mode of thinking.

Environment • Cultural • Company as a community: lifetime employment, access to company facilities, seniority-based wages (in return for 1/3 work force layoff in 1946) ; as a return, employees must be more flexible and actively promote interests of company >> Implications: labor = Fixed cost • Economic • Postwar conditions put Japan into a country lacking significant capital, so that Japan had to rely mostly on producing its own technology. • Political • The Ministry of Int’l Trade and Industry (MITI) encouraged Japanese firms to enter the automobile industry despite established competitors from the West by imposing high tariffs discouraging imports and prohibiting foreign ownership. • Japan’s work force, under Western influence after WWII, grew more powerful and more demanding, thus limiting producers’ efforts to reduce labor costs.

Environment (cont.) • Demographical • The domestic market was very small and un-uniform. Thus, goods had to be very tailored to specific consumer taste. E.g. luxury cars for officials, small cars for city residents, etc. • Technological • Commitment to innovation and improvement • Large skilled-labor pool to draw from • Social • Commitment by employees to work

Country Differences? • Western “careers” vs. Japanese “community” • Focus on long-term growth as opposed to short-term profits • More interpersonal relationships with employees, suppliers, and customers

Organizational Structure • Multi-regional lean enterprise • Primarily network structure • Network of suppliers • Network of dealers/distributors • Frequent interaction between all levels of the organization

Strategy – Lean Production • Final assembly plant • Moved from “move the metal” mentality to kaizen • Introduced idea of stopping assembly lines in order to correct problems before continuing • As a result, quality improved and yields are close to 100% • Product development and engineering • Focused on leaders that knew all steps of a process rather than those with highly specialized knowledge; also, skill-building • More emphasis on proactive thinking by employees • Thus, increased productivity, product quality, and responsiveness to changing consumer demand • “quality circles”

Lean Production – in more detail • 2 organizational features: • “Transfer max number of task and responsibilities to those workers actually adding value to the car on the line” • “has in place a system for detecting defects that quickly traces every problem, once discovered, to its ultimate cause” • Thus, need tight teamwork and open communication among workers (comprehensive info display system on electronic displays visible from all work areas) • 4 areas of importance: • Leadership: Toyota’s large-project leader w/power vs. Western coordinator • Teamwork: from many functions, ties with department, and general interest in promoting team, not department • Communication: conflicts resolved in beginning, more people => less people • Simultaneous Development

Competitive Advantages • Reliability • Product variety • Production plants in North America build 2-3 products at a time, as opposed to one by Western firms. • Firms keep models for an average of four years, as opposed to an average of close to ten years by Western companies. • Western companies sell almost twice as many cars of the same model as Japanese firms do.

Suppliers – Lean Production Supply Chain • Organized suppliers into functional tiers • First-tier suppliers: worked together in a product-development team • Second-tier: made individual parts • Encouraged cooperation and communication among first-tier suppliers • In –house supply operations turned into a network of “quasi-independent first-tier supplier companies” • Substantial cross-holdings between Toyota and suppliers, as well as among suppliers themselves even though each supplier is an independent company • Cross- sharing of personnel through • Toyota sending personnel to suppliers to compensate for greater workload • Toyota transferring senior managers to suppliers for top positions • Developed the “just-in-time” (JIT) system, or kanban

Suppliers – Lean Production Supply Chain (cont.) • “market price minus” system, not “supplier cost plus” system • Value analysis reduces costs • Declining prices over life of model due to learning curve • Production smoothing enables suppliers to maintain a constant volume of business • Focus is on long-term relationships that underscores cooperation, teamwork, and gradual mutual improvement, rather than price through bidding as a way to choose a supplier

Consumers • The market began to fragment in the 1960s as cars increased in popularity and became essential household goods. • Marketing executive Shotaro Kamiya focused on building a sales network modeled after Toyota’s supplier network. • Distributors with a “shared destiny”: wholly owned companies or ones in which Toyota held equity • “aggressive selling”: promoted long-term relationship between assembler, dealer, and buyers • Dealer => production system => build-to-order system • Buyers => product development process • Direct calls to households with large database of households and buying preferences • Focus on repeat buyers • Also focus on brand loyalty => “Toyota family” • 5 distribution channels in Japan: Toyota, Toyopet, Auto, Vista, and Corolla • Closer and more familiar relationship between buyer and salesperson • Focus on customer-specified order

Marketing • Door-to-door selling/very customized • Emphasis on “pull” marketing: giving consumers what they want • Tight relationship with previous buyers to keep clients • Sales personnel received intensive training before starting their jobs • Up-to-date and detailed database of consumers helps keep track of trends, interests, and tastes

Competitors • American companies upon which Toyota originally developed many of its own production processes from • GM • Ford • Etc. • Korean companies with planned production • Other Japanese companies, especially Nissan and Honda

Problem • Obstacle: inward focus of Japanese lean producers • Lack the ability to think and act globally rather than from a narrow national perspective • Backlash to Japanese direct investment in North American and Europe, a prominent reason of which is that it creates friction as a result of Japanese corporation biases, mainly two classes of citizenship in their organizations • E.g. keiretsu

Possible Solutions • Appoint native managers to head their manufacturing operations in North America and Europe • Designate native supplier companies as source for certain categories of components • Governments: restrictions on visas for Japanese employees at new facilities and in Europe, strong pressures to attain high levels of domestic content asap • Author suggests: build a truly global personnel system in which new workers from North America, Europe, etc. where a company has design, engineering, and production facilities, are hired in at an early age and given the skills, including language and exposure to management in different regions, needed to become full citizens of the company • Same for suppliers • Need increased transparency

Conclusion – Watch for quality • fear of repetition of Ford’s experience in Britain after 1915 • Wholesale substitution of domestic managers and suppliers, to deal with investment friction, will degrade performance of production system toward the existing level • Evidence that plants that perform best are those with very strong Japanese mgmt presence in early years of operations and those that have moved slowly and methodically to build up their domestic supply base • Need managers and suppliers that understand lean production and are committed to it, mostly Japanese

Financial figures • In fiscal 2003, ended March 31, 2003, Toyota’s consolidated net revenues increased 9.2%, to ¥15.50 trillion, operating income rose 16.3%, to ¥1.27 trillion, and net income was up 34.9%, to ¥750.9 • ROE reached 10.4%, surpassing the short-term target of 10%. • As of March 31, 2003, treasury stock repurchased by the Company totaled ¥1.38 trillion, or 416 million shares, and total shares issued and outstanding—excluding treasury stock—had decreased to 3.45 billion shares. • In fiscal 2003, the Company paid its highest-ever annual dividend—¥36.00 per share, up ¥8.00 from the previous fiscal year.

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