changing the processes, people's jobs and the business strategy,
it is critical that people change their mindset first. This will not
happen because they are told to change or need to change or are
forced to change. To make sure change is lasting and becomes part of
the business culture, there is a change formula that contains four
Change = Vision of
the future x discontent for the present x path of low risk x
Each of the elements
must have high numbers for change to be lasting. Since each element
is multiplied, if any one of the elements has a value of zero,
lasting change will not happen. The higher the value of each
element, the greater the rate of change that will take place. Vision
of the future is understood by answering two questions: Why is the
company doing this? What's in it for
me (the employee)? Discontent for the present doesn't mean the
company isn't successful or making money. It is important to get
into a proactive mode before the competition,
marketplace or customer causes pain and fear. A discontent for the
present attitude is having a Continuous Improvement/Kaizen focus
and attitude. Path of low risk is reassuring the people throughout
the organization that the risks of change have been minimized and
the chance for success maximized. Getting into a res«/te-mode
versus an activities-mode lets people see the benefits to them and
the company. The results build people's enthusiasm, confidence,
buy-in, and ownership.
There are two key
business objectives. They are:
Meeting the customer's needs 100% of the time with a flexible and
synchronous flow process. This means answering the following
• Did we focus on
the external and internal customers?
• Were the
customers first in our thoughts about how we operate the
• Did we adjust
the factory to the customer, instead of adjusting the customer
to the factory?
Making money (profit) by using the company's critical resources in
the most productive and cost-effective manner.
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companies have accomplished the first objective, but not both
objectives at the same time. If your company hasn't achieved both
objectives simultaneously, the time is ripe to take a major and
quantum leap forward in improving every aspect of how you work with
your customers and significantly improve the processes. Meeting
these two objectives simultaneously is the reason your company needs
to reengineer the existing business management processes.
Reengineering simply means determining if each process is:
Under control—producing the expected and desired business and
Simple—each process is simple and easily understood versus
Reliable—removing all the variability, non-value-adding
activities, and unnecessary costs.
What Is Reengineering?
does reengineering really mean? Reengineering is a process through
which manufacturing companies identify the most productive way to
manage their business. Its purpose is to align the company business
strategy, competitive factors, processes, technology, and their
people with the needs of the marketplace and their customers.
Reengineering is not trying to figure out who is to blame, or what
is wrong or right. Remember, if you called up your
customer and explained who was at fault internally for a missed
shipment, guess what? They don't care who is at fault. They only
want a high quality product, on time, where they receive value for
the dollars spent. Reengineering is finding the most logical,
simplest, and most cost effective way to meet your customer's needs
and your business objectives. The company compares how the business
is being currently managed to what it would take to manage it in an
Ideal world, then takes the necessary steps to get there.
Who Is Involved?
Who is involved in the
reengineering process? The owners of the process. They know more
about the process than anyone else. Too often, success has not been
achieved in the past because the focus on process improvement was
done in a vacuum and without the involvement of the process
owners. Crossfunctional involvement is needed to reengineer a
process. Internal customers and suppliers have to be involved. The
reengineering objective is not to focus on a given silo and
suboptimizing the silo. All the departments must be involved in
addressing most of the processes, from receipt of customer order
until shipment. This means putting together a group of individuals
from various functions and different levels within the
organization. An action team needs to be formed. The action team's
main objective is achieving results, not just doing a bunch of
activities. The action team has the responsibility and
accountability for the complete redesign of the process, which
includes the strategic and operational elements of the process.
To be Continued
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