Mahindra & Mahindra: Implementing BPR

            
 
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Case Details:

Case Code : OPER008
Case Length : 12 Pages
Period : 1990 - 2001
Organization : Mahindra & Mahindra
Pub Date : 2005
Teaching Note : Available
Countries : Japan
Industry : Automobile

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Operations Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Excerpts

About BPR

The concept of BPR was popularized in the early 1990s by Michael Hammer and James Champy in their best-selling book, 'Reengineering the Corporation.' The authors said that radical redesign and reorganization of an enterprise was necessary to lower costs and increase the quality of service. According to them, IT was the key enabler for that radical change. Hammer and Champy felt that the design of the workflow in most large corporations was based on assumptions about technology, people and organizational goals that were no longer valid. They recommended seven principles of reengineering for streamlining work processes and, consequently, achieving significant levels of improvement in quality, time management and cost (Refer Table I)...

Operations Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

M&M's Experience with BPR

By the mid 1990s, BPR had become a popular tool globally, with many leading organizations implementing it. However, when M&M undertook the exercise, it was still a new concept in India.

M&M's workforce, as mentioned earlier, resisted this attempt to reengineer the organization. Soon after the senior staff began working on the shopfloors, the first signs of the benefits of BPR became evident. Around a 100 officers produced 35 engines a day as compared to the 1200 employees producing 70 engines in the pre-BPR days.

After five months, the workers ended the strike and began work in exchange for a 30% wage hike. As the situation returned to normalcy, BPR implementation gained momentum. M&M realized that it would have to focus on two issues when implementing the BPR program: reengineering the layout and method of working, and productivity...

The Future

Summing up the company's BPR experience, Anand Mahindra said, "Let me put it in a simple way. If we have facilities in Kandivili today, which are not just surviving but thriving, it is all due to BPR...

Exhibits

Exhibit I: M&M - Milestones
Exhibits II: M&M - Summary Of Operations


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