ABOUT THIS CONTENT
Notes from core MBA Operations class, these focused on re-engineering.Subject: Operations
Table of Contents
process – taking a set of inputs and producing a value added output
Re-engineering
- is about operational excellence
- must be led by someone who is oriented toward operations and who appreciates the relationship between operational performance and financial results
- centers on managing businesses around their processes
- calls for radical, major changes vs. incremental changes
- must be driven “top-down”
Underlying problem that re-engineering tackles is fragmentation of work (“Humpty Dumpty” school of org. design)
Typical businesses without re-engineering are characterized by:
- simple tasks
- easy/fast to learn tasks
- lower skill level required by workers
- workforce satisfaction is low
A simple process needs substantial tasks. Simple tasks require a complex process
Benefits of Using Case Teams
- One worker (or a few) take care of all customer needs
- Fewer handoffs ⇒ few errors
- More accountability
- Waiting time between stages is eliminated
- Greater customer satisfaction
Problems with Using Case Teams
- Waiting is shifted to pre-process
- ROFT not likely to improve and likely will be worse
Steps Needed to Re-engineer
- build a strong case for action
- why do we do it
- do we need it
- get top management support
- assemble a re-engineering team
- diagram (design) the clean slate process
- pilot test
- roll-out (implement)
Criticisms of Re-engineering
- panders to nationalistic sentiments
- not clear how much of the success of cited firms is due to re-engineering
- no concrete tools; not a science
- ignores organizational (resources, culture, people, etc.) constraints and realities
- not much new in terms of substance
- often says what to do or not to do but not HOW to do it
- very disruptive
- ignores value of specialization
Re-engineering vs. Total Quality Movement (TQM)
Re-engineering::
- radical, major improvements
- no tools
- disruptive
- asks why
Total Quality Movement:
- incremental improvements
- recipe
- sustainable
- doesn’t ask why, just how
Take-aways:
- Technology should be an enabler not a work determiner
- Re-engineering should be periodic, and quality improvements continuous; they complement each other
- Emphasis on re-engineering should not ignore capability
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This is very true, if you do not re-engineer and keep up to date with technology, then you will be left behind whilst other businesses flourish.