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Abstract:
The case examines the reasons behind automobile major Mahindra & Mahindra's decision to implement a Business Process Reengineering (BPR) program.
The case explores in detail the implementation procedure at the company and the benefits that accrued from the BPR program. In addition, the case discusses the concept of BPR, its benefits, and the steps that need to be taken to ensure the success of such initiatives.
Issues:
» Examine the benefits that a BPR program can offer to an organization when it is effectively implemented
Contents:
Page No.
M&M's Problem Plants
1
Background Note
1
About BPR
3
M&M's Experience with BPR
5
The Future
7
Exhibits
9
"In our never ending quest for quality and increasing productivity at all levels, the various projects initiated by the company - including BPR - are helping us achieve higher productivity, reduction in costs and improved quality."
- Keshub Mahindra, Chairman, Mahindra & Mahindra (M&M), in 1996
M&M's Problem Plants
In the mid-1990s, India's largest multi utility vehicle (MUV) and tractor manufacturer M&M was facing serious problems at its Igatpuri and Kandivili plants in Maharashtra. The plants were suffering from manufacturing inefficiencies, poor productivity, long production cycle, and sub-optimal output.
The reason: highly under-productive, militantly unionized, and bloated workforces. The company had over the years been rather lenient towards running the plants and had frequently crumbled under the pressure of union demands. The work culture was also reportedly very unhealthy and corruption was widespread in various departments.
Alarmed at the plant's dismal condition, Chairman Keshub Mahindra tried to address the problem by sacking people who allegedly indulged in corrupt practices. M&M also tried to implement various voluntary retirement schemes (VRS), but the unions refused to cooperate and the company was unable to reduce the labor force.
During this period, M&M
The case examines the reasons behind automobile major Mahindra & Mahindra's decision to implement a Business Process Reengineering (BPR) program.
The case explores in detail the implementation procedure at the company and the benefits that accrued from the BPR program. In addition, the case discusses the concept of BPR, its benefits, and the steps that need to be taken to ensure the success of such initiatives.
Issues:
» Examine the benefits that a BPR program can offer to an organization when it is effectively implemented
Contents:
Page No.
M&M's Problem Plants
1
Background Note
1
About BPR
3
M&M's Experience with BPR
5
The Future
7
Exhibits
9
"In our never ending quest for quality and increasing productivity at all levels, the various projects initiated by the company - including BPR - are helping us achieve higher productivity, reduction in costs and improved quality."
- Keshub Mahindra, Chairman, Mahindra & Mahindra (M&M), in 1996
M&M's Problem Plants
In the mid-1990s, India's largest multi utility vehicle (MUV) and tractor manufacturer M&M was facing serious problems at its Igatpuri and Kandivili plants in Maharashtra. The plants were suffering from manufacturing inefficiencies, poor productivity, long production cycle, and sub-optimal output.
The reason: highly under-productive, militantly unionized, and bloated workforces. The company had over the years been rather lenient towards running the plants and had frequently crumbled under the pressure of union demands. The work culture was also reportedly very unhealthy and corruption was widespread in various departments.
Alarmed at the plant's dismal condition, Chairman Keshub Mahindra tried to address the problem by sacking people who allegedly indulged in corrupt practices. M&M also tried to implement various voluntary retirement schemes (VRS), but the unions refused to cooperate and the company was unable to reduce the labor force.
During this period, M&M