Week 8 - Scoping an Enterprise Process

Source / Reference:

1) "A BPR Case Study at Honeywell"  by D.J Paper, J.A. Rodger, P.C. Pendharkar 2001

http://www.bus.iastate.edu/nilakant/MIS538/Readings/BPR%20Case%20Honeywell.pdf 

2) Official Website of Honeywell 

http://honeywell.com/Pages/Home.aspx

Subject: 

How BPR change the fate of Honeywell?

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Response: 

I'm going to talk about a case study based on Honeywell, a Fortune 100 company that produces a variety of commercial and consumer products, engineering services and aerospace systems for customers. Honeywell has gained a lot of competitive advantages after it has run BPR.

Back in 1989, Honeywell has implemented a three-year world-class-manufacturing(WCM) program to examine lagging performance results. It has reduced defect rates by 70 percent, customer rejects by 57 percent, cycle time on parts by 72 percent, inventory investment by 46 percent, and customer lead times by over 70 percent. 

However, Honeywell was not satisfied with the improvements brought by WCM program. Therefore, they reconstructed a factory-focused program called TotalPlant which supports global delivery of its manufactured products, serve the needs of over 40 regional TotalPlants and delivery centers worldwide, and align with global suppliers. The totalPlant model is developed based on four principles of success - process mapping, fail-safing, teamwork, and communication. 

Total customer  satisfaction and world-class manufacturing are the two main focuses of Honeywell in training their employees as it is important for employees to realize that  fully utilizing the whole system is the goal. There are three basis supporting the training philosophy - be non-blaming and non-judgmental, focus on process and results, and consider the big picture. 

8 Steps of Process-Mapping:
1st - Select process: Products list is given by the team and customers are identified.  
2nd - Identify boundaries: Document the boundaries for each product.  
3rd - Form teams: Ensure cross functional representation.
4th - Develop "as-is" map: Include both information and product flow through the system.
5th - Identify cycle times: Measure both the distance and the time required of a product.
6th - Identify opportunities for improvement: Search for opportunities that would not add extra costs.
7th - Develop "should be" map: A road map.
8th -  Develop the implementation plan: Specify specific changes, responsible parties, timetables, cycle time goals.


8 Steps of Fail-Safing:
1st -  Identify problem: Analyze data using pareto chart..
2nd - Identify causes: Identify places in the process map where red flag conditions exist.
3rd - Generate solutions: Brainstorming.
4th - Evaluate and choose: Eliminate ideas which take longer time to implement.
5th - Create plan: Consider every single person that are involved.
6th - Implement solution: Record down everything.
7th - Check results: Compare the result with expectations.
8th - Act on results: Determine what can be improved, a continuous process. 

Moreover, Honeywell offers training dolalrs to make teaming a natural part of the work life and rewards teamwork. Honeywell also assist their employees solving conflicts on a positive way by providing conflict resolution training. The training focuses on listening skills and confronting skills. 

Process mapping is a systematic BPR methodology to guide team process improvement efforts along process paths. Fail-safing is a method to help process teams identify and correct defects quickly and permanently. Teaming is encouraged through communication of the vision and rewards based on value-added activities. In conclusions, these four mechanism has brought Honeywell a brighter future.