HP case study sloution

1. UNIVERSAL BUSINESS SCHOOL
KARJAT(Mumbai)
ASSIGNMENT 1: CASE STUDY ON HP
SUBMITTED TO: Mr.Sourabh Chowdhuri
By: Surbhi Jindal
Dated: 21st February 2015
Class:-PGDM1
Roll Num:-1416

2. HP Case study Solution
Q1- Analyze the case in detail and explain key success factors in
implementation of BPR at Hewlett Packard?
A-Business Process Reengineering
Executive Summary
Hewlett-Packard follows a fixed sequence for the processes involved in launching a new
product. There is nothing wrong in following a fixed procedure unless the process is
flawless and company is successfully meeting its expectations. Hewlett-Packard has various
departments working independently in launching a new product.
When the respective department gets a new idea they start working on
their own. The marketing team is expert in conducting market research, and then they
decide the Marketing Mix of the new product that has to be launched. By the time, Research
and Development team has already done their job by selecting the technology they feel that
is most appropriate. Also the Product Design department has successfully generated the
design models in CAD/CAM software. Then the Marketing team can again recommend
changes in the design. Later on, the prototype of the new product is manufactured;
software and hardware tests are conducted well.
Problem Recognition
The drawback was that they followed the old system of business processes where after
completion of one stage only one could move to another stage. Method Followed-They
followed the sequential method. Selling Price-After the marketing team analyzed the
market forces once only then did it recommend a selling price for a new product. R & D-
Then the research and development team scanned the technologies available and chose
one which was correct.
Designing- Once the objectives were created and the CAD /CAM lab was then
commissioned to design the new product. Marketing- The designs were then forwarded to
marketing for approval in case of any problems it was sent back to the drawing boards. The
procurement team was then alerted about the components needed, Software team loaded
the software, and Manufacture release tests were conducted to check how well the product
could be manufactured in the company’s plants. The Bill of material was needed by the
marketing department and the product was then forwarded to the sales and service team.
These problems gave rise to Greater lead time, Greater time utilized from pricing to
launching of the product. Time where new products can be launched quickly is lost.

3. Solution
It is recommended to arrange a weekly meeting of cross functional teams from marketing,
manufacturing and research departments. The marketing team’s suggestions are
recommended on the spot to available technologies, which are tracked by a special team.
As work will begin on designing one product, the next weekly meeting will see birth of
another idea and another product. At any point, there will be several product designs in
various stages of completion, ensuring a continuous stream into the market.
The problems earlier raised were thrashed out by cross functional teams.
As the work begins on the designing of one product, the next weekly meeting saw the birth
of a new idea and works on the new product started simultaneously. The work on several
products carried out at the same time saved time. Continuously new products were
launched in the market. Launch of a new product was at the interval of 4 months.

4. Q2-What is meant by “Business Process Reengineering’’?
A-Business Process Reengineering ‘’the fundamental rethinking and radical redesign of
Core business processes to achieve dramatic improvements in critical performance
measures such as quality, cost, and cycle time’’
The concept of BPR was first introduced in the late Michael
Hammer's 1990 Harvard Business Review article and received increased attention a few
years later, when Hammer and James Champy published their best-selling
book, Reengineering the Corporation. The authors promoted the idea that sometimes-
radical redesign and reorganization of an enterprise is necessary to lower costs and
increase quality of service and that information technology is the key enabler for that
radical change.
Hammer and Champy suggested seven reengineering principles to streamline the
work process and thereby achieve significant levels of improvement in quality, time
management, speed and profitability:
1. Organize around outcomes, not tasks.
2. Identify all the processes in an organization and prioritize them in order of redesign
urgency.
3. Integrate information processing work into the real work that produces the information.
4. Treat geographically dispersed resources as though they were centralized.
5. Link parallel activities in the workflow instead of just integrating their results.
6. Put the decision point where the work is performed, and build control into the process.
7. Capture information once and at the source.

5. The idea behind business process reengineering is to make your company more flexible,
responsive, efficient and effective for all stakeholders including customers, employees and
owners. In order for BPR to work, your business must be willing to make the following
changes:
 Change the focus from a management focus to a customer focus - the boss is not the
boss, the customer is the boss.
 Empower your workers that are involved in each process to have decision-making
and ownership in the process.
 Change your focus from managing activities to focusing on results.
 Get away from 'score keeping' and focus on leading and teaching so employees can
measure their own results.
 Change the company's orientation from a functional orientation to a process or
cross-functional orientation. This allows for an increase in organizational
knowledge among its members and a greater degree of flexibility in accomplishing
tasks.
 Move from serial operations to concurrent operations - in other words, multitask
instead of just doing one thing at a time.
 Get rid of overly complex and convoluted processes in favor of simple, streamlined
processes. Use the KISS Principle - keep it simple, stupid.
 Stop trying to build an empire and protect the status quo, but rather invent new
systems and processes that look towards the future

6. Q3-Discuss various categories of processes in BPR?
A- Business Process Re-engineering-It is the fundamental rethinking and radical
redesign of business processes to achieve dramatic improvements in critical contemporary
measures of performance such as cost, quality service and speed. It refers to the radical
redesign of business processes. It aims at-
1) Eliminating repetitive paper intensive bureaucratic tasks
2) Reducing costs significantly
3) Improving product/service quality.
It is also called as business process redesign, business transformation, or business process
change management.
1. External Process: Customer facing processes that deliver products and services of Value
to the Customer examples:
 Get Order-To get the orders Strategy Development-It converts market
requirements into a business strategy, which identifies markets to be served and
products and services to be offered.
 Product Development- It uses this output as input in order to produce new
product designs. To develop a product which has greater scope of acceptance in the
market? Hp began product development and every week a new idea gave birth to a
new product development.
 Order fulfillment - It’s the company’s payoff. It converts an order request, a
product design, and a factory into a product that is delivered into a customer’s hand.
It delivers what a customer wants. HP developed products keeping in mind the
customer.
 Support Product- Use of technology to get the optimum level of product with help
of the current technology. HP used all the available technology needed at that point
of time for the product.
2. Management Process: Processes controlling and coordinating the organization's
activities to ensure that business objectives are delivered. Examples:
 Make Strategy- Use of various strategies which help in eliminating risks, reducing
costs and achieving goals at a faster pace. HP Implemented cross functional teams
working together.

7.  Set Direction-To provide a vision and work unanimously towards achieving the
same goals. HP took unanimous decisions.
 Manage- To manage the teams, processes efficiently so that the goals of the
company are met effectively in time as per planned along with the goals of the
individuals.HP appointed separate team to have a check on the teams progress.
3. Support Processes: Processes provide infrastructural and other assistance to busine
 IT-use of latest and available technologies needed at that time for that particular
product. HP used technologies for the same.
 Finance-Fundamental to the any service delivery capability is the effectiveness of
the financial management advice and assistance with financial and corporate
management systems development and implementation; and quality assurance
reviews of existing systems implementations. HP implemented the pricing along
with the cross functional teams.
 HR Systems-Engineering in essence is creating the value, and reengineering is
maximizing the value either in accordance to producer or user. The value according
to the producer is the profitability and for the user satisfaction and benefit. HR
reengineering is not an exception, it is a planned and programmed effort to
maximize the value of HR , so organizational & competitive power may achieve
maximum productivity & profitability for the organization, and maximum level of
career satisfaction for the individual himself.
Operational process and procedures are the foundation for new operator
orientation and training. Most organizations have no formal training program for new
operators; typically new employees are mentored by another operator who may or may
not transfer all the necessary knowledge to proper, safely, and efficiently operator the
equipment. To ensure the necessary knowledge is transferred each time operational
processes and procedures are critical.

8. Q4-Discuss Five elements of Business process Reengineering?
A- There are several reasons for organizations to reengineer their business processes:
(1) To re-invent the way they do work to satisfy their customers;
(2) To be competitive;
(3) To cure systemic process and behavioral problems;
(4) To enhance their capability to expand to other industries;
(5) To accommodate an era of change;
(6) To satisfy their customers, employees, and other stakeholders who want them to be
dramatically different and/or to produce different results
(7) To survive and be successful in the long term; and
(8) To invent the "rules of the game."
Phase 1, it is stated that a BPR project begins with some sort of trigger, such as
performance problem and pressure from a supply chain partner. It can also be driven
primarily by an executive vision of how a particular aspect of the company should be. The
discussion will be taken place at this phase and the proposals will eventually be made.
Phase2, BPR mobilization occurs by selecting a project leader and forming a core BPR
team. The processes to be redesigned are selected and a preliminary assessment of IT
infrastructure around those processes is made. A BPR plan and budget is proposed.

9. Phase 3, In this phase the business process is redesigned and performance comparisons
are made, sometimes through benchmarking with other companies. The process design is
also readied for implementation.
Phase 4, the implementation and organizational transformation stage is the toughest
phase to execute. It includes designing the IS and modifying the IT infrastructure. Is also
involves introducing and instituting the new process with its accompanying organizational
design changes, training people and possibly re-skilling them and dealing with the political
and human problems that occur whenever a large organizational change is made.
Phase 5, Ideally BPR is not a one-shot effort and the process needs to be monitored on a
continuous basis so that the process can be maintained and modified when conditions
require.
The Participants in a BPR project
There are a variety of participants in a BPR project as shown in above picture. At the heart
of a BPR project is a core BPR team that messy manage the project and coordinate the
different participants. The team includes a project leader.
Any BPR project needs executive sponsors who are often champions for the project. Also,
there is another important set of participants is the process owners. They need someone
who has responsibility and accountability for a business process. It is pointless to
reengineer a business process if the process owners are not involved and engaged in the
project.