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Business Process Re-Engineering In Automobile Industry: A Case Study Of Ford Motor Company

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Business Process Re-Engineering In Automobile

Industry: a case study of ford motor company.

Abstract: Business Process Re-engineering (BPR) is an essential change in the processes and structure of any company. That change can be related to work force, business processes, IT infrastructure, etc. In this case study, the focus towards BPR was restricted to the changing regime of FORD Motor Company since 1900s. A critical evaluation of Ford was made with the help of Situation-Actor-Process and Learning-Action-Performance (SAP-LAP Analysis), Strength, Weakness, Opportunities and Threat (SWOT Analysis), Political, Economic, Social, Technological, Environmental, Social (PESTEL Analysis) and Data Envelopment Analysis (DEA).The results revealed that Ford is a very dynamic company which changes as per the requirement of the market. Repeated BPR activities helped the company in remaining the world leader till date.

Key words: Business Process Re-engineering, SAP-LAP, SWOT, PESTEL, DEA, Ford Motor

I. INTRODUCTION

Ford Motor Company was founded in 1903. It was ranked fourth in the fortune 500 companies for the year 2000. It has eight automotive brands (Aston- Martin, Jaguar, Volvo, Lincoln, Mercury, Ford, and Mazda) and four service divisions (Ford Credit, Hertz, Quality Care, and Quik-Fit). Ford has its presence in more than 200 countries and territories, with a workforce of 400,000 approximately and 140 manufacturing plants [1]. The Ford Motor Company, at least until World War II, was also occupied in ”human engineering”. Gradually, Ford was able to go from a creative idea to near to optimum assessment of demand, to engineering, manufacturing, and logistics, to the relationship with the customers. Ford used e-commerce internally to start with, which they called it internet inside. Then, they used internet in traditional B2B applications and B2C applications, and also to facilitate the ongoing relationship with customers. Ford also applied technology inside their vehicles, through Telematics initiatives, which created the internet on wheels. In due course of time, Ford allied with the best technology partners.

Business Process Re-engineering implementation can be characterized as the implementation of purposeful and basic change in business processes to achieve sudden improvements in performance.

Dr. Sanjeev Tandon

Army Institute of Management & Technology, Gr. Noida, India

[email protected]

Dr. Surabhi Goyal

[email protected]

Kavita Sharma

M. S. Abhilash

performance of the company. After re-engineering of vital business processes, new ways of company management are required.

This paper gives an understanding through a contextual investigation research into the relationship between strategic planning and BPR of an automobile major Ford. Organizations have experienced major change. The impetus for these changes comes as a reaction to competitive pressures and proactive action to improve corporate responsiveness [2]. Change of overall process is very complicated as it includes the manipulation of interactive relationships among organizational sub-components such as management, people, structure, technology and rewards. Drawing from a huge number of literature on implementation with innovation, socio-technical design and the management information systems, this case study is focusing on the accompanying inquiries:

1. What are the issues with Ford which are identified with execution of business procedure re-engineering?

2. What is the relative seriousness of these issues?

3. How do these issues of Ford identify with the achievement of BPR?

4. What is the impact of BPR on the overall performance of the Ford Motor?

This study discusses about the implementation of BPR concept at various stages of business life of Ford. Following sections will discuss about the objective, review of literature, research methodology, data analysis tools, implementation, recommendations and conclusion of the study.

II. REVIEW OF LITERATURE

companies have also benefited from reengineering; Richard L. Florida of Carnegie Mellon University found that 60 percent of 2,000 companies he surveyed showed improved returns from restructuring work [9]. Accounting and Finance departments [10][11], production and supply logistics[12], human resources departments[13], and government agencies, such as, the US Department of Commerce Patent and Trademark Office[14], and the Metropolitan Transportation Authority in Los Angeles have undergone BPR. By identifying procedures and applications software programs of the re-engineered accounts payable systems that was described in Michael Hammer’s seminal article in the Harvard Business Review [4], internal controls assures that organizations realize the benefits of re-engineering is demonstrated.

III. OBJECTIVES OF THE STUDY

This study was conducted with special reference to the BPR in the automobile industry. In this study, the focus was restricted to the changing regime of FORD Motor Co.

The research encircles the following objectives:

1. To critically evaluate the BPR activities of FORD Motor Company.

2. To analyze the impact of BPR on the efficient performance of the company in a time span of last 25 years.

On the basis of this statement, the hypothesis framed is as follows:

H0-There is no impact of BPR activities on the overall efficient performance of the company.

The data will be tested on this assumption and results will be extracted.

IV. RESEARCH METHODOLOGY

The study revolves around the historical challenges, their respective solutions and impact on the performance of Ford Motor Company in its history of more than 25 years. The study is descriptive in nature.

i. Problem definition: To develop a deep understanding of essence of the process of BPR to maximize attainment of business goals.

ii. Research Design : The research design employed to satisfy the objectives in this research is descriptive research.

iii. Data Collection Methods:

Secondary Data: The data was collected through various magazines, books, journals and websites (e-journals), Ford Motor Annual reports, financial statement from stock exchanges, research papers and Ford website. For analyzing the data, SAP-LAP analysis, SWOT analysis, PESTEL analysis and DEA analysis are being used.

A. SAP-LAP ANALYSIS

For analyzing the collected data, SAP-LAP framework has been used. This framework is developed by Prof Sushil Kumar, IIT, Delhi. According to him,“SAP-LAP paradigm is the inquiry in management which is equally applicable in non formal service sector” [15]. This framework can be used for case analysis, managerial investigation and problem solving. It comprises of three basic elements i.e. situation, actor and process. The interplay of situation actor process (SAP) leads to learning action performance (LAP) [16] (Refer Figure 1).

Figure 1: SAP-LAP Model

(Note: Retrieved from Dubey, D K Sen and A ATalankar, 2012.

http://www.vsrdjournals.com/ME/Issue/2012_12_December/Web/1_Sandeep_Kumar_Dubey_1065_Research_Article_VSRDIJ MAPE_December_2012.pdf)

process, customer interface process, performance management process, technology transfer process, innovation and investment process, distribution process and so on.[16].

The interface of "actor" and "process" defines the structure, systems and strategies that need to be transformed for organizational change. The interface of "process" and "situation" defines the incident to be taken care of and adaptation and response of the process to the changing environment.

The interaction and synthesis of SAP leads to Learning-Action-Performance (LAP). The researcher needs to learn about the SAP and bring out key learning issues of interest. Based on the learning, the action is to be taken on situation, actor or process or the relevant interfaces. On the basis of efficient and effective actions, performance is generated. Here, the “situation” examines all the time lines like the past, present and the expected future; the “actor” explores various views, roles and capabilities, freedom of choice; the “process” explains how the inputs are converted into outputs, and other alternative ways of doing the process; “learning” refers to the key issues related to the SAP; “action” refers to what can be done to improve SAP; “performance” indicates the impact of system’s performance on SAP.

B. DEA ( DATA ENVELOPMENT ANALYSIS)

Over the past few decades, data envelopment analysis (DEA) is being used for evaluating the relative efficiencies of decision making units (DMUs) within a homogenous set. DEA is an approach to estimate the manufacture function of organizations and organizational units and enables the assessment of their efficiency. The envelopment surface will differ depending on the scale assumptions that underpin the model. Two scale are generally employed: constant returns to scale (CRS), and variable returns to scale (VRS). CRS reflects the fact that output is proportionately changing with inputs are changed; VRS reflects that production technology may exhibit increasing, constant and decreasing returns to scale.

This model includes 2 inputs and 3 outputs of Ford Motor Company. The inputs and outputs are discussed below. The inputs are:

1. Number of employees from 1991-2015.

2. Selling and administrative expenses for the period 1991-2015. The outputs are:

The data related with these variables were shown in Table 1.

C. Adopted Model

This model will adopt theOutput orientated DEAconsidering both CRS (Constant Returns to Scale) and VRS (Variable returns to Scale). This method is majorly used to get more flexible and reliable results. The CRS assumption is used when all DMUS are operating at an optimal level. The use of the CRS specification when all firms are not operating at the optimal scale results in measures of TE (Technical Efficiency) which are mystified by scale efficiencies (SE). SE is calculated by estimating both the CRS and VRS models and looking at the difference [17]. VRS model is basically the CRS with an additional constraint added to the Linear programming (LP) problem [18]. The analysis was done on 25 years data of Ford between 1991 and 2015. The highest efficiency degree that can be achieved is 100 per cent.

According to Farell, if a given firm uses quantities of inputs, defined by the point P, to produce a unit of output, the TE of that firm could be represented by the distance QP. This is usually expressed in percentage terms by the ratio QP/0P, which represents the percentage by which all inputs could be reduced. The TE of a firm is most commonly measured by the ratio TE = 0Q/0P, which is equal to one minus QP/0P. It values between zero and one, and hence provides an indicator of the degree of TE of the firm. A value of one indicates the firm is fully efficient. Another type of efficiency is allocative efficiency (AE). The AE of the firm operating at P s defined to be the ratio AE = 0R/0Q , RQ represents the reduction in production costs that would occur if production occur at the allocatively (and technically) efficient point Q’, instead of at the TE, point Q.

The total economic efficiency is defined to be the ratio, EE = 0R/0P, where RP can also be interpreted in terms of cost reduction. The DEA mathematical model is as follows:

Max h = Σruryrj0/ Σi ν ixi jsubject to

Σruryrj/Σi ν ixi j< 1, j = 1,Λ, n (for all j) In simpler words:

Efficiency = Σweighted outputs/Σweighted inputs

D. SWOT Analysis

SWOT analysis is a contraction for strength, weakness, opportunities and threats. It is a structured planning method that evaluates Abovementioned four elements of a project or business venture [20]. SWOT analysis can be done for companies well as for product, place, industry, or person. It involves specifying the business objective or project and identifying all the factors that are favorable and unfavorable to achieve that objective.

E. PESTEL Analysis

A PESTEL analysis is a tool used for external environment players. It can be used to analyze and monitor the external environment of the company. The strategic management tool gauges the macro environmental factors. The results make decision taking much easier.

The different macro-environmental factors can affect business strategies. The aim is to assess how exactly the factors influence business performance. PESTEL judges 6 types of environmental influences. They are political, economic, social, technological, environmental and legal. These are not independent factors but are interdependent.

V. DATA ANALYSIS AND INTERPRETATION

With the help of data collected and various statistical tools mentioned above, a detailed data analysis of internal and external environment was done. All inferences were tested on the basis of hypothesis framed and results were combined and concluded. To recall, the first objective of the study was

“To critically evaluate the BPR activities of FORD Motor Company”

This objective was analysed with the help of results obtained from SAP-LAP analysis, SWOT analysis and PESTEL analysis.

A. SAP-LAP Analysis

SAP-LAP framework of BPR in Ford Motor is discussed in annexure 1. The table discusses the working, people, process, issues, actions and performance of the company. It will help in drawing conclusions about the hypotheses framed in the beginning of the study.

INFERENCES DRAWN FROM THE FINDINGS OF SAP-LAP ANALYSIS

Basis Ford Motor Performance

Industry Profile Ford Motor is a fifth largest distinctive car manufacturing company in the world. Product Focus Ford motor is a renowned manufacturer of cars, SUVs, Trucks, Vans and

IPR Profile Ford legal profile includes 3591 trademarks, 5780 patent grants and 412 patent applications

Relationship between Sales and Growth of the Company

They are not mutually correlated due to dependence of revenue more on segmented automobiles than the newer technologies.

Financial Position The last fiscal year revenue counts to $12.37 billion.

Several Issues The ability to manage growth, intense competition among Indian and overseas motor companies and much of too dependency on America's best-selling F-Series truck and SUV sales for profits. The performance of average worker with difference to the management of international operations and reduced demand for technology used in existing products are also the issues of Ford.

Prospective Solutions for the Issues

Product-wise, Ford has achieved its goal of delivering 25 new products from 2012 to the close of 2015. It also transformed its Valencia plant into one of the most advanced and productive automotive plants, where each worker got specialized in one task with one tool. Also, Ford launched a key restructuring effort including the closing of five plants, the abolition of 35,000 jobs, over $9 billion in cost cutting, and the shuttering of several car lines including the Mercury Cougar and the Lincoln Continental.

Future Plans Ford initiated many steps to provide better services like a new environmental initiative called the Partnership for a Cleaner Environment (PACE) with limited suppliers. They planned and implemented best practices for energy, greenhouse gas emissions and water use reduction. They introduced various motivational sprees for employees and simultaneously continued safety measures for them. Ford raised awareness of supply chain sustainability through training of new purchasing personnel and global supplier technical assistance staff.

B. Interpretation of SAP-LAP Analysis

This analysis was done to make a detailed discussion of the changing phases of Ford. On the basis of above mentioned criteria (Refer table 1), few inferences have been drawn:

2. Although quite an old company, Ford believed in dynamism and that too at global level. Thousands of IPRs and changing organizational structures are examples of it.

3. One of the major backbone of Ford is its products and brand loyalty. Customers trust Ford technologies and products by the name. It is because of this reason the sale is not dependent on the IPRs.

4. Although Ford had been through tough times like, plant shut down, retrenchments, shutting down the production of major segments of cars, supply chain issues, but the top management of the company had always kept a futuristic endeavor and they kept on experimenting new strategies. 5. They also have shown interest in CSR (Corporate Social Responsibility) by providing aids to the

employees and the society at large. They are also working for producing more eco-friendly automobiles for future consumption.

This shows that Ford Motor is surely a long run successful player of automobile industry. Various BPR inclusions whether related to Supply Chain or Information Technology or Human Resource have been made but they never refrained themselves from changes.

On the basis of the findings and interpretation done, it can be said that the null hypothesis of the study is rejected and there is a positive relationship between Ford Motor performance and BPR. Ford has in fact used this strategic option more rigorously.

SWOT ANALYSIS OF FORD Strengths

 Experienced organizations

 Global reach (more than 200 countries & territories)

 Human engineering

 Use of e commerce internally

 Proven expertise in manufacturing, research and development and automobile marketing

 Strong position in the American auto market.  Implemented best practices for

environmental issues

 Dependence of revenue

 Dependency on other best selling cars sale & profit

 incapability to match the production targets or sales volume of the top five automakers: Toyota, Volkswagen, General Motors, Renault-Nissan and Hyundai Kia

 Reduction in demand for technology

 Adversely affected by the global recession & Euro crisis

 High cost structure

Opportunities

 Green technology formula

 Demonstration of sustainability model.

 Increase their number of research and development centres.

 A proper employee retention strategy shall be framed .

 Growing auto markets, particularly in expanding economies such as China, Mexico and India.

 Increased levels of e-commerce, which

might increase the demand for light commercial vehicles used for delivery.

 Growth through product development

 Expanding automobile sector

 Improving business scenario due to expansion of consumer base

 Lower fuel prices could reduce the demand for costlier fuel vehicles such as hybrids and electrics.

 Aggressive competitive rivalry

 New entry of high-tech firms

 Fluctuating oil prices

 Increasing usage of public transport and increased fuel costs

 Production problems in local plants due to labor and similar issues

C. Interpretation of SWOT Analysis

The data collected for SWOT analysis was extracted from secondary sources like company website, annual reports and various research papers published. On the basis of observations mentioned in SWOT analysis (Refer table 2), it was seen that Ford Motor is a global company having its reach in almost all countries. The company is enjoying brand loyalty as well as an arena of new potential customers. They are also following the best practices for human engineering. On the contrary, the revenues of Ford are highly dependent on the performance of its close competitors. They are also not much apt of handling environmental issues which they need to work upon as soon as possible. As far as opportunities are concerned, they are entering into green technology supported by increased R & D activities and increasing global reach. Still company needs to prepare themselves for some unseen threats like fuel price fluctuations, aggressive cut-throat competition and increased use of public transport.

D. PESTEL Analysis

Figure 2: PESTEL Analysis of Ford Motor Company

E. Interpretation of PESTEL Analysis

growth. Also, it among the top most fortune 500 companies increasing its goodwill as well as investor support. Socially, the company is taking aggressive steps in doing CSR activities and maintaining the ecological level around the globe. Technically, Ford is now adapting newer researches and also gearede up in having more R & D centres to pace up the sales of the company. Environmentally, although emitting pollution is one of the issues of the company but then they are putting efforts by going for R & D in more fuel efficient vehicles and their economic pricing. Last, on legal aspect, Ford is very vigilant about the varied rules, regulations and laws of various countries in which they are dealing. They also look after their IPRs very well. So, on overall basis, FORD is doing well in their external business environment.

The second objective of the study was

“To analyze the impact of BPR on the efficient performance of the company in a time span of last 25 years”

On the basis of this objective, a hypothesis is framed saying

H0 - There is no impact of BPR on the overall performance of the company.

This hypothesis will be tested through DEA analysis. In this analysis, an output oriented DEA model is taken and TE of both CRS and VRS are recorded and compared. The results are compared and inefficiencies were taken out to extract out the reasons behind it.

F. DEA Analysis

The results of DEA analysis of Ford motor Company is mentioned in Table 3.

DEA ANALYSIS OF FORD MOTOR COMPANY Output orientated Malmquist DEA

DISTANCES SUMMARY

Year CRS VRS

4 0.675 0.737

5 0.888 0.889

11 0.908 0.944

18 0.794 0.899

20 0.913 0.929

22 0.945 0.968

24 0.919 0.99

25 0.88 0.995

Mean 0.929 0.974

Maximum 1 1

Minimum 0.675 0.737

G. Interpretation of DEA Analysis

On the basis of the results extracted through DEA (refer table 3), it can be seen that in most of the years, FORD had given efficient performance as per the inputs added and out derived. Still, as per CRS, there were 13 times that Ford Motor was unable to match its benchmark and as per VRS, there were 5 years where Ford did not performed well. The minimum being Year 4. On an average, the performance of Ford is almost near to efficiency.

to counteract declining demand.This results into upgradation in the overall working of the organization. This was done in the name of Business Process Re-engineering.

V. CONCLUSION

This study revolves around the BPR changes experienced by Ford. Since 1903 till 2015, many changes happened in Ford. Whether it is expansion or diversification or contraction, Ford did everything to stay in competition. Like any other company, there were issues with Ford, but strong and well organized BPR strategies helped them to emerge as winners of all time. Thus, driving the company to become one of the top leaders of automobile industry globally. To end this, on the basis of literature reviews done, some recommendations are as follows:

To sum up, Ford Motor Company is a growth oriented company which excels into varied departments of its own outshining competition. With the help of BPR initiatives, Ford has demonstrated sustainability model consistently. But, in the era of competition, Ford has to innovate Green Technology formula to emerge as a winner. Ford has miles to go yet.

[1] Naseer and Greenhalgh (2000). Ford Motor Company’s CEO Jack Naseer on transformational change, e-business and environmental responsibility. Interview by Leonard Greenhalgh. Academy of Management executive. 14(3), pp- 46-51. [2] Grover V, Jeong, S. Ryul, Kettinger and others (1995). The implementation of business process re-engineering. Journal of Management Information System. 12(1), pp- 109-144.

[3] Davenport, T. H. (1993). Process innovation; reengineering work through information technology . Boston, Harvard Business School Press.

[4] Hammer and Champy, “ Reengineering the Corporation : A Manifesto of Business Revolution ,” Harper Business Publications (1991).

[6] Committee of sponsoring Organizations of Treadway Commission (COSO) (1992). Internal controls- Integrated Frameworks. American Institute of certified public Accountants. New Jersey. Ed. 2.

[7] Currid, Cheryl and company (1991). Computing strategies for re-engineering in your organization. Prima Publishing, Rocklin, California.

[8] Klimas, Anthony J. (1997). Re-engineering in the real world. Management Acounting . 78(11), pp. 30-36.

[9] Gleckman, H. (1993). A Technology payoff, a sweeping reorganization of work itself is boosting productivity. Business Week . 3323, pp. 57-68.

[10] Hildebrand, C. (1994). Financial affairs. CIO . 7(11), pp. 62-68.

[11] Schmidt, D. (1994). The Credit manager’s Re-engineering Primer. Business Credit.. 96(1), pp. 29-32.

[12] Kallock, Roger W. (1994). Moments of truth are a call for action. Transportation and Distribution. 35(2), pp. 57. [13] Shahooth K, Battall A.H. (2006). Using Data envelopment analysis to measure cost efficiency with an application on Islamic banks. Sci. J. Adm. Dev . 4, pp. 134-156.

[14] Sushil (2012). Flowing stream strategy: Leveraging strategic change with continuity. Springer .

[15] Sanders, Robert L. (1997). If marx has been a Business Process re-engineer. ARMA Records Management Quaterly. 31(2), pp. 58-64.

[16] Smith B. (1994). Business Process re-engineering: More than a buzzword. HR focus . 71(1). Pp. 17-19.

[17] Ramaj T. (2015). Data Envelopment Analysis: An application to measure Technical Efficiency of Hotel units in Elbasan, Albania. Journal of Multidisciplinary Engineering Science and Technology. 2 (8), pp. 2141-2146.

[18] Sushil (1997). Flexibility System management: an evolving paradigm. System Research and behavioural science . 14(4), pp. 259-279.

[19] Banaeian, N. (2004). Application of Data Envelopment Analysis to Evaluate Efficiency of Commercial Greenhouse Strawberry. Research Journal of Applied Sciences Eng. Technology . 3(3), pp. 185–193.

[20] Negi and Zseni (2016). SWOT analysis of dry Toilets. 3 International Conference rd on Environmental and Economic

Impact on Sustainable Development. 203. Extracted from

http://www.witpress.com/Secure/elibrary/papers/EID16/EID16023FU1.pdf

ANNEXURE: 1

SAP-LAP ANALYSIS OF FORD MOTOR COMPANY

Situation Issues

1. How company entered into automobile industry?

1. Henry Ford builds a quadric-cycle. In June 1903, he established Ford Motor Company. Five years later, Ford introduced the model T and sold over 15 million units in next 2 decades.

2. How is the present performance of the

company? 2. In 2014, Ford sold approximately 6,323,000 vehiclesthroughout the world.

3. What is expected from the company? 3. The annual revenues are at $ 140.6 M. with operatingmargin of 6.8% in 2015. 4. A variety of new technologies have joined stereo lithography.

5. With the 3D printing machines running nearly 24*7, the facility has become a kind of virtual sandbox for

6. With about 199,000 employees and 67 plants worldwide, the company’s core business includes designing, manufacturing, marketing, financing and servicing a full line of Ford cars, trucks, SUVs and electrified vehicles, as well as Lincoln luxury vehicles. Actor

1. What are the world views? 1. Ford is fifth biggest automobile manufacturer in world.

2. What roles and capabilities are exhibit? 2. Firm’s intensive growth strategies aligned to its genericstrategy for competitive advantage.

3. In what domains is freedom of choice available?

3. Ford is aggressively pursuing opportunities through Ford Smart Mobility, the company’s plan to be a leader in various domains like connectivity, mobility, autonomous vehicles, the customer experience, and data and analytics.

4. Vision of Ford? 4. Ford is present in Motorsports like Formula One, Rally,Sports cars, Touring cars & sponsorship of events 5. Capitalizing on the models exclusively designed for the type of markets e.g. ford Ikon for India

6. People working together as a team. Process

1.What is being done? 1. In the 2014 Euro NCAP assessments, earned a five-starsafety rating for the Ford Mondeo.

2. What are the variables and parameters 2. On April 30, 2015, Ford entered into an Amended andRestated Relationship Agreement with Ford Credit.

3. What can be changed?

3. In 2015, Ford also entered into collective bargaining agreements with Argentina, Brazil, France, Germany, India, Mexico, New Zealand, Romania, Taiwan, Thailand and the United Kingdom.

5. How is it being done?

5. Substantial pension and post-retirement health care and life insurance liabilities impairing liquidity or financial condition.

6. What, why and how else?

6. Ford was honored by the Ethisphere Institute – for the sixth year in a row – as one of the World’s Most Ethical Companies.

Synthesis Learning

1. What are the key issues related to situation? 1. The ability to manage growth, intense competitionamong varied motor companies.

2. What are the key issues related to actors? 2. Ford is too dependent on America's best-selling F-Series truck and SUV sales for profits

3. What are the key issues related to process?

3.The average worker performed several tasks in the production of each component, and used a variety of tools in the process.

4. The ability to manage the international operations and reduction in the demand for technology.

1. What can be done to improve situation?

1. Product-wise, delivering 25 new products from the end of 2012 through the end of 2015, and it's recently focused on performance vehicles such as the Focus RS, Focus ST, Fiesta ST, and the newly available 2015 Mustang helped Ford in achieving the goal.

2. What can be done to improve actors? 2. Ford transformed its Valencia plant into one of the mostadvanced and productive automotive plants on the planet. 3. What can be done to improve process? 3. Each worker specialize in one task with one tool..

4. The company takes a $2.1 billion charge to cover the cost of replacing Firestone tires on its vehicles

5. Ford launched a major restructuring effort that included the closure of five plants, the elimination of 35,000 jobs, over $9 billion in cost cutting measures, and the shuttering of several car lines including the Mercury Cougar and the Lincoln Continental.

Performance

1. What will be its impact on situation? 1. Began pilot of a new environmental initiative called thePartnership for a Cleaner Environment (PACE).

2. How will the actors be affected?

2. Raised awareness of supply chain sustainability internally through training of new purchasing personnel and global supplier technical assistance staff.

3. How will the performance of the process be

affected? 3. Earned the highest possible Overall Vehicle Score offive stars in the New Car Assessment Program (NCAP) of the U.S. National Highway Traffic Safety Administration (NHSTA) for 15 Ford Motor Company vehicles.

4. Safety measures improved substantially

5. Kicked off a series of mobility experiments as part of Ford Smart Mobility.

ANNEXURE: 2

DEA VARIABLES FOR THE STUDY

Inputs Outputs

Number of Employees (in'000)

Selling, administrative

expenses Automativerevenues EPS expensesTotal

1991 332 3993 72051 0.93 75820

1992 325 4434 84407 -2.4 86182

1993 322 4968 91568 -7.81 90136

1994 338 11280 107137 2.27 101311

1995 347 7860 110496 4.97 11420

1996 372 6625 118023 3.58 115507

1997 364 7082 122935 3.73 115989

1998 345 7616 119083 5.75 112398

1999 375 11010 135022 18.17 128594

2000 352 9838 140765 3.69 135489

2001 359 9778 130736 -3.02 138222

2002 350 9758 134273 -0.55 162077

2003 328 10152 138442 0.27 163970

2004 325 11455 147134 1.21 168042

2005 300 24588 153413 0.88 178408

2006 200 19148 141727 -6.73 177038

2007 245 21169 152691 -1.4 177751

2008 205 21065 127635 -6.5 159296

2009 117 13029 103868 0.91 119,715

2010 164 11909 119280 1.9 122,296

2011 164 10884 128168 5.33 129,321

2012 171 11494 126567 1.47 127,961

2013 181 13176 139369 1.83 134,108

2014 187 14117 135782 0.81 143,745

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Business Process Reengineering: A Crucial Approach for Enhanced Organizational Sustainability

• First Online: 04 February 2024

Cite this chapter

• Jean Dagher 20 &
• Laura Fayad 20  

Part of the book series: Contributions to Environmental Sciences & Innovative Business Technology ((CESIBT))

99 Accesses

This study investigates Business Process Reengineering (BPR) in contemporary management as a visionary strategy for managers wishing to reengineer their distressed firms for enhanced organizational sustainability through advancing organizational performance. It presents a unique setting for businesses withdrawn from the case of Lebanon and introduces novel dynamics on the implementation and outcomes of BPR initiatives. This article follows a qualitative exploratory method through interviews with 42 managers in distressed Lebanese micro, small, and medium enterprises (MSMEs), to identify noteworthy common themes about BPR activities, organizational performance indicators, and their relationships. The results pinpoint the key role of BPR activities namely cultural change and technology implementation in MSMEs. Furthermore, the most significant improvements of BPR can be achieved in financial success and employee retention indicators. Organizations can leverage these organizational performance indicators to drive sustainable practices. The lessons learned highlight the contextual relevance of the Lebanese MSMEs; the crisis dynamics’ impact on BPR implementation and outcomes; the importance of proper management of BPR to face potential challenges and risks; the significance of psychological and emotional effects; and the potential impacts of cultural change and technology implementation. This study further provides future research opportunities in organizational, cultural, management, digital transformation, or other contexts.

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Acknowledgements

We would like to express our gratitude to all those who have contributed to the successful completion of this study. We would like to thank the managers of Lebanese micro, small, and medium enterprises (MSMEs) who generously shared their valuable time and insights with us during the interviews. Moreover, we would like to express our gratitude to our families and friends for their support, encouragement, and patience during the writing of this article.

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Dagher, J., Fayad, L. (2023). Business Process Reengineering: A Crucial Approach for Enhanced Organizational Sustainability. In: El-Chaarani, H., El Dandachi, I., El Nemar, S., EL Abiad, Z. (eds) Navigating the Intersection of Business, Sustainability and Technology. Contributions to Environmental Sciences & Innovative Business Technology. Springer, Singapore. https://doi.org/10.1007/978-981-99-8572-2_2

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Business Process Re-engineering (BPR) is an essential change in the processes and structure of any company. That change can be related to work force, business processes, IT infrastructure, etc. In this case study, the focus towards BPR was restricted to the changing regime of FORD Motor Company since 1900s. A critical evaluation of Ford was made with the help of Situation-Actor-Process and Learning-Action-Performance (SAPLAP Analysis), Strength, Weakness, Opportunities and Threat (SWOT Analysis), Political, Economic, Social, Technological, Environmental, Social (PESTEL Analysis) and Data Envelopment Analysis (DEA).The results revealed that Ford is a very dynamic company which changes as per the requirement of the market. Repeated BPR activities helped the company in remaining the world leader till date.

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South Asian Journal of Social Sciences and Humanities

wameedh Khdair

The aim of the research is to know the effect that the business process re-engineering had on the performance of employees of the south refineries company – Iraq. With the addition of some observations that contribute to leaving a good impact for the purpose of seeking to develop the concept of engineering for workers. As the results were relied upon to conduct analyzes through SPSS statistical analysis program on the 350 employees in the company. The results indicated a set of concepts and indications, the most important of which are the application of the engineering concept was present in the company at a rate of 60% and the existence of a direct relationship between the dimensions of business process re-engineering and the level of job performance. The purpose of the research See the relationship between HR aspects, such as teamwork, management competency, organizational structure, IT and efficient communication for achieve beneficial outcomes by reducing costs, time and increas...

Dr. Sri Lalitha

ABSTRACT In today‘s ever changing world, the only thing that doesn‘t change is ―change‖ itself. In a world of competition driven by the three C‘s: Customer, Competition and Change, companies are looking out for new solutions for their business problems. Recently, some of more successful business corporations in the world seem to have hit upon incredible solution: Business Process Reengineering (BPR). The reason behind so many success stories of Organizations like WalMart and Taco Bell‘s sales is the same concept of BPR. Reengineering is the fundamental rethinking and radical redesign of process of business for remarkable improvements in critical, contemporary measures of performance such as Cost, Quality, Service and Speed to meet Customer‘s requirement. The purpose of this paper is to clear out the confusion on BPR by reviewing various literatures of different authors. It also discusses co-existence of BPR with TQM, Organizational Process Understanding, Reengineering challenge and redesign of Organization. KEY WORDS: Business Process Reengineering, TQM, Redesign

International Journal of Scientific Management and Development

The purpose of this study was to assess the impact of re-engineering based on four measures of financial performance, ability to build production and innovation, customer satisfaction and employee communications, supply chain and related indicators in each dimension before and after the implementation of the Regional Electricity Company is a province. For the purposes of this study, the type of applied research, the descriptive nature of the survey. Population survey of managers, supervisors and experts are. Data analysis using a paired test to compare the situation before and after the re-engineering and implementation of the Friedman test was conducted to rank the variables. Results show the success of the performance impact of after the engineering re than before its implementation on the regional electric company crosses the province harder to arrange their impact: financial performance, customer satisfaction and employee communications, supply chain, capable of making, and innovation.

Firtian Judiswandarta , ULE, P ALAMINA

Matthias E Elom

This study, Business Process Reengineering and Organizational Performance, spawns from the need to explore the relationship between business process reengineering and organizational performance of Innoson Technical and Industrial Company, Emene, Enugu. The main objectives are: to ascertain the degree to which each of the three decomposed variables of business process reengineering of creative rethinking, radical change and fundamental thinking relate to profitability, market share and business sustainability dimensions of performance of Innoson Technical and Industrial Company, Emene, Enugu. The study was a survey type of research of which correlational research design was employed to ascertain the degree of the magnitude of the relationship between the studied variables. Structured questionnaire was administered on the sample of two hundred and sixty one (261), out of which, two hundred and fifty (250) copies of questionnaire were successfully returned, hence used for the analysis. Data collected from the respondents were analyzed with Pearson Correlation Coefficient. The study found a significant relationship between creative rethinking and profitability of Innoson Company (r=0.60), a significant relationship between radical change and market share of Innoson Company (r= 0.91), and significant relationship between fundamental thinking and business sustainability of Innoson Company of Innoson Company (r=0.62). The implication of the findings is that effective implementation of business process reengineering thrive high performing organizations in meeting the demands of changing business environment. From the findings, the study concludes that organizations could enhance their performance, if business process reengineering is conducted effectively and recommended that the management of Innoson Technical and Industrial Company should pay adequate attention to issues relating to business process reengineering, taking into cognizance its pertinent role in radical improvement on cutting down operational costs, cycle time reduction, quality enhancement and service improvement that predict organizational performance.

Jan Bennett

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Please note you do not have access to teaching notes, business process reengineering in a british company: a case study.

Logistics Information Management

ISSN : 0957-6053

Article publication date: 1 October 2000

A case study conducted in a British company (Company A) on reengineering business processes is presented. It gives an example on how a case study ought to be written in order to go beyond the standard for writing an industrial report to one that is acceptable by academic peers. A good case study ought to contain information that readers can use in replicating the experiences gained and lessons learnt in future endeavours under similar settings. When a collection of good case studies is available to a practitioner or researcher he could formulate his plan for the future and avoid “re‐inventing the wheel”. This is most important to research in operations management because it lends a hand in the building up of a theory in POM to make an impact in its natural settings.

• Case studies

Gunasekaran, A. , Chung, W.W.C. and Kan, K. (2000), "Business process reengineering in a British company: a case study", Logistics Information Management , Vol. 13 No. 5, pp. 271-285. https://doi.org/10.1108/09576050010378496

Copyright © 2000, MCB UP Limited

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