ReengineeringMarch19982SFRReengineeringAgenda•Objectives•ReengineeringIntroduction–definition–significance–Bain’sreengineeringpractice•ReengineeringProcess•Example•DefenseCo.•Exercise3SFRReengineeringObjectives•Explainwhatreengineeringisabout–whatisreengineeringandwhyisitimportant?•ConveyBain’sexperienceanduniqueapproach–howdoesBainaddvalue?•Overviewtheprocessandtools–whatdoesareengineeringprojectlooklike?4SFRReengineeringAgenda•Objectives•ReengineeringIntroduction–definition–significance–Bain’sreengineeringpractice•ReengineeringProcess•Example•DefenseCo.•Exercise5SFRReengineeringWhatIsIt?“IfIwerere-creatingthisbusinesstoday,givenwhatIknowandgivencurrenttechnology,whatwoulditlooklike?”Reengineeringmeansgoingbacktothebeginningandinventingabetterwayofdoingwork6SFRReengineeringDefinition•YetanotherTQMor‘XYZ’project•Repackagedcutbacks/downsizing•Automationofexistinginefficientprocesses•Reorganization/restructuringReengineeringisnot...•Thefundamentalrethinkingandradicalredesignofanentirebusinesssystem(coreprocesses)•Achievingsubstantiveimprovementincriticalperformancemeasures(cost,customerservice,capital,etc.)•Enablingdramaticbreakthroughs/fullpotentialby–articulatingavisionofimprovement–tearingdownorganizationalboundaries–leveraginguseofenablingtechnology•ProvidingaholisticapproachtobuildingcompetitiveadvantageandaframeworkforfuturedecisionmakingReengineeringis...SeeRelatedTopic:AlternativeProcessImprovementApproaches7SFRReengineeringReengineeringExample:TollCollectionNewProcess•7,500carsperhour•$2.00tollcollectedinonedirectionOldProcess•5,000carsperhour•$1.00tollcollectedinbothdirections8SFRReengineeringReengineeringExample:AutoAssemblyNewProcess•Bodyexitspaintshop,beginsfinalassemblyOldProcessDoorsub-assembly;offline,insequence•Lowerqualityfromscratchesanddings•Timelostworkingarounddoors•Difficulttoinsertbigitemslikeseatsandinstrumentpanel•Higherquality•Lesswastedeffort•Parallelworkflow•Assemblyworkersbuildinefficientlyarounddoors•Finishedcarrollsoffline•Bodyexitspaintshop,removedoorsatstartoffinalassembly•Assemblyworkersbuildoutcarwithoutdoors•Re-attachdoorsinsequence(atendofline)SeeAdditionalExample:TacoBellExample9SFRReengineeringAgenda•Objectives•ReengineeringIntroduction–definition–significance–Bain’sreengineeringpractice•ReengineeringProcess•Example•DefenseCo.•Exercise10SFRReengineeringSignificanceofReengineering•LeviStrauss&Co.–$850millionreengineeringprogramhalted–additional$14millionallocatedforatwo-year‘education’efforttocalmunhappyemployeesUnsuccessfulReengineeringPrograms(~2/3ofallprograms)•PacificTelesis/PacificBell–$XBsavedoverYyears•FederalExpress–packagedeliveryshortenedfrom4daysto1day•GeneralElectric–productivitydoubledinorderfulfillment•TexasInstruments–orderfulfillmentwentfrom25weeksdownto4weeks•UnitedAirlines–planeturnaroundshortenedfrom40minutesto25minutesSuccessfulReengineeringPrograms(~1/3ofallprograms)Reengineeringeffortshaveenormouspotential,butareverydifficulttoimplementsuccessfully.OurclientshireustoensurethattheirreengineeringeffortissuccessfulExamplesfromPublicSources:11SFRReengineeringReengineeringSuccessFactors•Objective,outsider’sperspective•Creative“outofthebox”thinking•Experienceinreengineeringandcorporatetransformation•Coachingandtraining•Dedicated...
