Which of the following is the best example of business process re-engineering to

Question

Which of the following is the best example of business process re-engineering to attain operational excellence? Explain your selection. (1) Acer Phones uses advanced statistical methods to remove the causes of defects at its manufacturing units. (2) Ericsson introduces continuous-improvement business philosophy at its customer care centers. (3) Cellkon pulls the pieces of an activity out of different departments to create a cross-functional work group. (4) Honeywell strives to incrementally reduce defects through an ongoing assessment process

Explanation / Answer

According Hammer and Champy, “Business Process Reengineering is the fundamental rethinking and radical re-design of business processes to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality service, and speed.” This definition has four important words,

Now analyze each option:

(1) Acer Phones uses advanced statistical methods to remove the causes of defects at its manufacturing units.

Acer Phones is applying Six Sigma, for removing defects. There are no dramatic changes in the performance.

(2) Ericsson introduces continuous-improvement business philosophy at its customer care centers.

Continuous-improvement projects like TQM and Lean system focus on improving the current process step-by-step or on incremental basis.

(3) Cellkon pulls the pieces of an activity out of different departments to create a cross-functional work group.

Cellkon aims for conducting the particular business process by cross-functional work group as compared to old ways of performing same in different departments. The business process will be conducted in completely new way.

Thus, Cellkon is applying BPR technique to improve operational efficiency.

(4) Honeywell strives to incrementally reduce defects through an ongoing assessment process

Honeywell is focusing on incremental improvement in the quality level. It is applying quality improvement tool.

Correct option: 3

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