BPM企業(yè)流程重建論文(英文版)

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BusinessProcessAnalysis-ALetterfromAmerica

ProfessorV.Arunachalam

DistinguishedServiceProfessor,

DepartmentsofMaterialScienceandEngineering

RoboticsandEngineeringPublicPolicy

CarnegieMellonUniversity

Pittsburgh,PA,15217

and

Dr.EswaranSubrahmanian

SeniorResearchScientist,EngineeringDesignResearchCenter

CarnegieMellonUniversity

Pittsburgh,Pa,15217

August,1995

AreporttoEngineeringandScocialScienceResearchCouncil,UK

ToenablethereadertoaccessthisBPRCreportspeedilyandflexibly,ithasbeenorganisedintothefollowingseparatesections:

ContentsPage

Abstract

Introduction

Reengineering

CorporationsandReengineering

TheChryslerCorporation

Caterpillar

JetPropulsion

InnovationinDefense:HughesAircraft

InnovationinTechnologies

GovernmentInitiatives

MethodsandToolsforBPA

ITandBPR

JapanandReengineering

HumanResourcesinBPR

ProblemsinReengineering

AFewmorelines

References

AreporttoEngineeringandScocialScienceResearchCouncil,UK

Section1:Abstract

ThisreportisontherecentinnovationsimplementedbyAmericancompaniesinthewaytheymanagetheirbusinessandbytheUSgovernmentinsupportingtheindustrialandtechnologicalbaseinthecountry.Americancorporationsvisibletooutsidersaregenerallyverylarge,withannualbudgetsrunningwellabovethenationalbudgetsofmanycountries,andwitharangeofdiverseoperationstranscendingdivisional,organisationalandnationalbarriers.Inrespondingtochangesintheglobalmarketplace,theyarecontinuallyintroducinginnovationsinprocessandproducttechnologiesandinproductdevelopmentandmanufacturingcycles.Itisdifficulttoenumerate,letalonediscuss,alltheinnovationsthatareseeninUSbusinesstoday.Instead,weshallfocusoninnovationsthataresignificantandgenericforimprovingbusinessprocesses.ThisisrelevantasmorethanfiftypercentofUSfirmsaremediumorsmallsized,andthegeneralcompetitivenessofUSindustrydependsonthemaswell.Inthisreport,wedonotdiscusstherecenttrendsinfinancial,merger,RODandmarketingstrategiesandprocesses.Instead,wediscussonlythoseissuesrelatedtobusinessprocessesthatimpacttheabilityofUSbusinesstomeettheidentifiedmarketdemandsincost,qualityandtime.

Aphrase,nowincreasinglyinvogue,todescribetheeffortsinprocessimprovementsisBusinessProcessRe-engineering(BAR).HammerandChampdefineBARas"theradicalrethinkingofthebusinessprocessestoachievedramaticimprovementsincriticalcontemporarymeasuresofperformanceascost,qualityandspeed."Thischaracterisationofre-engineeringisofteninterpretedinmultiplewaysresultingindifferentmodelsandmethodsofimplementationofbusinessprocessre-engineering.ReportedfailureratesofaboutfortytoseventypercentforBARapplicationsinachievingstatedgoalscanindeedbeattributedtothedifferencesinperceiveddefinitionofwhatconstitutesre-engineeringandthelevelofimplementation.

Inpractice,implementationsofre-engineeringspanfromre-engineeringlocalprocesstoacompleterestructuringtheentireorganisation.Businessprocessre-engineeringforlocalimprovementshaveledtothedevelopmentofanalyticalmodelsforoptimisationofexistingprocessesthroughsimplerproceduresandincorporationofInformationtechnology.Activitybasedaccounting,anAmericaninvention,isalsousedinconjunctionwithprocessre-engineeringprojectsefforts.ThedrivetowardsBARinAmericanindustrieshasspawnedanindustryofconsultantsandprocessmappingandsimulationtools.Abriefreviewofthestate-of-theartinanalyticalmethodsandtoolssuchasIDEFO,SAT,BPMATandDesignProcessMatrixisalsoprovidedinthisreport.

Attheotherend,thereareexamplesofwellestablishedorganisationalstructuresandprocessesbeingtotallyreplacedbynewstructuresandflexibleprocesses.Suchtotalre-structuringeffortsmaywellincludeuseofcrossfunctionalteams,retrainingandactivitiesrelatedtothemanagementofinnovationasintegralpartsofthebusinessprocesses,wellbeyondtheconventionalactivitiesofdesign,manufacture,andserviceofproducts.ThedifferencebetweensuccessfulandunsuccessfulfirmsthatuseBARappearstoliemoreonthescopeandcoverageoftheBAReffortsthanonthemereapplicationoftoolsandmethods.WeillustratetheaboveinferencesbydiscussingthevariousmodelsusedbysomeUSfirmsandtheexperienceofafewselectindustriesinadoptingBAR.Thereareexamplesofalaboratoryre-engineeringitselfandothersfromdefenceindustriesre-engineeringthemselvestoaccommodateendingoftheColdWaranddecliningdefencebudgets.

Re-engineeringdependsonpeople:thewaytheylearntheirjobs,workandcollaboratewiththeircolleagues.Often,thisinvolveslearningnewtradesandworkpractices,andembracinganewworkethicthattranscendsthenarrowspecializationthattheworkersfindthemselvesin.Pastindustrialinnovations,successfulastheyhadbeen,practiceddivisionoflaborontheworkforcetoadegreethatalmosteclipsedtheneedforhumaningenuityandinnovation.BPRhasbroughtchangesinthewaytheworkforceisperceivedforeffectingorganizationalchanges.MostsuccessfulexamplesofBPRarethereforefromthecorporationsthatpracticeretrainingprograms.Whilebiggercorporationshavetheresourcestore-engineertheirprocessesandre-traintheirworkforce,theirsuccessesalsodependonhoweffectivetheirsuppliersinthevaluechainareinpracticingBPR.TheproblemofimplementingBPRandthetrainingoftheworkforceinsupportingfirmsisgenerallybelievedtobetheresponsibilityoftheindividualfirms.Contrarytogeneralbelief,theUSgovernmentisnotapassiveobserveroftherestructuringofbusinessprocessesthatarenowunderwayinthecountry.Itisinterveningactivelybyprovidinginitiativesandinducementstoallfirmsforcontinuingeducationandretrainingprograms.

TheUSgovemmentisalsointerveningactivelyinaninnovativefashiontofillthegapsseeninUScompanies,speciallyinprocessingandmanufacturingstages.TheseareconsideredessentialtokeepAmericanproductsgloballycompetitive.TheUSfederalanduniversitylaboratories,largeandsuccessfulastheyare,havebeensingularlyineffectiveintransferringthesetechnologiestoUSindustries.Existinglawsinplaceandconcernsaboutpatentrightsandpublicknowledgehavediscouragedclosecollaborationbetweenthelaboratoriesandindustries.TheUSgovernmenthasintroducedmulti-agency(Defense,Commerce,NASA,NSFandARPA,andTransportation)programsindefense,dual-useandciviliansectorssupportingshorttermprogramsofresearchinhighrisk,highvaluemanufacturingprocesstechnologies.Themajorconditionofsupportofsuchprogramsisthattheprogramshouldbecommerciallyrelevanttoindustryandjointlypursuedbylaboratoriesandindustries,withleadershipandmatchingfinancialcontributionsfromindustry.Inthisreport,wediscussestheseinitiatives,knownasATP(AdvancedTechnologyProgram)andTRP(TechnologyRe-investmentProgram)andtheirperformancetodate.

ThesuccessofJapanesefirmsincapturingasignificantpartoftheUSautomobilemarketinthe70'sand80'sandtheirabilitytoadapttochangingeconomicconditions,withoutunduechangesinunemployment,triggeredtherethinkingofthenatureofbusinessoperationsinAmericanindustry.AserioussearchfornewmodelsofbusinessbeganwiththescrutinyofJapaneseautomobileindustrybyUScompaniesandbusinesstheorists.Thisinvolvedstudiesonprocessinnovations,qualitymanagementandleanproductiontechnologiesaspracticedbytheJapanese.Meanwhile,JapanesefirmsareintroducinginformationtechnologyintheirworkpracticesthatnotonlypreservesmuchoftheirorganizationalandculturaladvantagesbutalsoincorporatesafewUSinnovations.Inthissensebotharelearningfromeachother.

ThedefinitionofBusinessProcessAnalysisiscontinuallychanging.Itis,intheeconomicjargon,bothmacroandmicro:detailsofeveryprocessmatterasalsotheoverallorganizationalobjectives.Technologyisnottheonlydrivingforceforre-engineering.Economicandculturalpracticesarerelevantaswell.KnowledgegeneratedbyindividualcompaniesandbusinesstheoristsandtheexperiencegainedbyitsapplicationwillbetheBPRtoolsandmethodsfortomorrow.Evenwithalimitedrepertoireoftechniquesandrelativeinexperienceinapplyingthemtobusinesspractices,BPR,currently,isprovingtobepowerfulapproachfororganizationswantingtobecompetitive.

Section2:Introduction

TheUnitedStatesofAmericaisbrandedasaSuperpowerwhenitcomestomilitarystrength,butthecontextcanindeedbewider.Inpracticallyallareasofhumanendeavoritstandsontop:ithasthelargestGNP,biggestindustrialandmanufacturingbaseandanimpressive,efficientandenviablescientificandtechnologicalinfrastructure.Itsoutputinastraditionalanareaasagricultureorinasmodernafieldasinformationtechnologyisprodigious.Itisnotonlyagranaryfortheworldbutalsoademonstrationandprovinggroundforharnessingnewtechnologiesorinnovationsforcreatingwealthorimprovingthequalityoflife.Amongtheworld’s500largestcorporations,themagazineFortunelists151asAmericanowned,largerthananyothercountry.In1994alone,thesecorporationsearnedaprofitofmorethan$140billion,arecordamongothercompetitors.

Asimpressiveasthisis,itwasactuallybetter,especiallyaftertheSecondWorldWarandinthe1950sand60s.Sincethen,thisleadhaserodedawayinsomekeymanufacturingindustriessuchasironandsteel,automobilesandconsumerelectronics.Meanwhile,thedeficitintradebalanceintheseareasbetweentotalvalueofexportsandthetotalvalueofimportsbytheUShasactuallyincreased.Sincetheseventies,moreareashavebeenlosttocompetition;manynewcountries,consideredinthepastaslessadvanced,areemergingasstrongcompetitors.

Formerly,theUStendedtoignorethesechallengesandattributedthecompetitivenessofothercountries,mostnotablyofJapan,totheirlowwages,homogeneityofpopulation,authoritarianculture,work-ethicandlowtechnologycontents.Italsorationalizedthelossbyarguingthatastheworld’slargesttechnologicalpower,itwasforeverlookingfornewmanufacturingopportunitiesrelegatinglesstechnology-intensiveorlabor-intensivemanufacturingtoothercountries.

However,thedangersignswerevisibleinmanyareas.Theautomobileindustrywas,andstillis,veryspecialtotheUS.InadditiontoprovidingmobilitytomillionsofAmericansandlinkingthisvastcountry,itremainsthecoreofAmericanmanufacturingandalsothecrucibleformanufacturingandmanagerialinnovations.Themovingassemblylineandmanagementpracticesempoweringandintegratingmanufacturingcenterswithcustomersandsuppliersarealltheconsequencesofautomobilemanufacture.Butwhenthisindustrywasovertakenbyforeigncompetitorswiththeirdeliveryofaffordableandreliablecarsofhigherqualityontime,concernswerevoicedabouttheproductivityandcompetitivenessofUSmanufacturinganddemandsweremadeforurgentremedialsteps.AmajorstudyonU.Sindustrialproductivityin1986byadistinguishedgroupofsixteenexperts,includingaNobellaureateeconomistfromtheMassachusettsInstituteofTechnology{Berger,B.,et.al.1989},detailedtheweaknessesprevalentinUSindustries,notjustinmacroeconomicsterms,butintermsofthecustomersatisfaction,qualityofproducts,efficiencyofproduction,speedofmanufactureandintroductionofnewproductsandcosts.Thisstudyof200companieswasthefirsttoidentifythesegapsintheUSsystemandtracedtheirorigintotheageofmassproduction,antitrustlaws,useofworkersasmereskilledoperators,overemphasisonproductsratherthanonprocessesandtoanenvironmentthathaslongceasedtoexist.

Thisgroupfoundthesestrategiestobeoutdatedinthefaceofincreasedglobaltrading,emergenceofnewtechnologiesandtheirspeedyassimilationbymanycountriesandthegrowthofsophisticationamongconsumers.Thankstonewtechnologies,manufacturingandprocesstechnologiesweremakingproductionmoreflexible,streamlinedandefficientbringinginaqualitypreviouslythoughtasunachievableandataspeedconsideredunattainable.Thework-forcewasnolongeracollectionofskilledindividualsbutgroupswithcompetencetranscendingmanyareasofmanufacturing,andmotivatedbyteam-spirit,delegatedpowerandvestedauthority.Allthese,accordingtothisstudy,weremissingintheAmericanindustrialandmanufacturingscene.Eveninthe1960s,themanagementguru,PeterDrucker{1969},inadeeplyperceptivebook,TheAgeofDiscontinuity,lamentedthelackofanychangeinthestructureofindustrialorganizationsinstepwiththeimpressivegrowthofeconomyandtechnologies.Smallmid-coursecorrectionswereintroducedinthewellestablishedbutoutdatedstructurestoprovidecontinuitywhenradicalreformsandpath-breakingrestructuringwereinorder.

ThisreportdiscussesonemajorbusinessprocessinnovationthatisnowsweepingtheUnitedStatesconsumingthetraditional,butincreasinglyinefficient,waysofdoingbusiness.Reengineeringhasbeenthebannerofthischangeinbusinesspractices.Thisinnovationistrulyahome-grownone,andasweshalldiscusslater,notanimport.AswithallthingsAmerican,itssweepisvast,itsopportunitiesareimmenseandthedangersoffailurereal.Inthisreport,wefirstprovidethescopeofthisinnovationitsimpactonbusinessandthemutationsitisundergoingthroughcasestudies.Thisisfollowedbyasummaryofanalyticaltoolsusedinthisinnovation.Subsequently,weexamineitsconsequencesingovernmentalpoliciesandhumanresourcestrategies.WethenbrieflysummarizethedifferencesinthepracticeofreengineeringbetweenJapanandtheUnitedStates,sincetheU.S.isconcerned--somewouldsayexcessively--withthewayJapanconductsitsbusiness.Insummary,weseeanevolution,evenwithinashortperiodofafewyears,asreengineeringischangingrapidlylosingsomeofitshard-doctrinalstancesandlearningtoworkwithnewtechnologies.Butmorechangesareneeded,someurgentlyso,inareassuchashumanresources.Rightly,orwrongly,BusinessProcessReengineeringhascometobeidentifiedwithBigPeopleReduction!Thisimagehastobeshedifreengineeringistobeacceptedbythemajority.

Section3:Reengineering

Reengineeringisnotthefirstandtheonlyinnovationinthebusinessprocesses.Initially,conceptsandpracticessuchasTotalQualityManagement(TQM),concurrentengineering(sometimesreferredtoassimultaneousengineering),‘justintime’inventories,‘time-compression’andleanproductionhavebeenintroducedasremedialmeasures.StudiesbyKimClarkandFujimoto{ClarkKandFujimoto,P.,1991}onthecomparativeperformanceofautomobilemanufacturinginthreecontinentsortheadaptationofDeming’steachingsonqualitymanagement{Deming,1986}orKaizan,itsJapaneseversion,havehelpedUScorporationstointroduceimprovementsintheirmanufacturing.These,evenwhensuccessful,areonlyoflimitedapplicabilityanddonotsubstitutearadicalrestructuringthatDruckeradvocatedorthegroupfromMITrecommended.TheparadigmshiftsinmanufacturingtechnologiesasidentifiedbyJaikumar{1988}havestillnotbeenaccommodatedbytherequiredrevolutionarystructuralchangesofindustrialorganization.Majorityoftheimprovements,aswenotedearlier,inspiteofeffectingcontinuousimprovementsinmanyareasofproduction,havecontinuedtopreserveorganizationalstructureswiththeirdivisions,rulesofbusiness,commandandcontrolsystemsintact,insteadofchange.Thecorporateculturestillregardsorganizationalhierarchiesassacrosanctmorethanitsrelationshipwiththecustomers.Itisinthisbusinesspracticecontextthatre-engineeringhasemergedasamoreholisticalternative.

ADefinition

Thegoalofreengineering,or,tobeexact,BusinessProcessReengineering(BPR)isitsaimtodestroytheorganizationasitexistsandrecreateanewonethatfocusesexclusivelyonbusinessprocesses.InSchumpeterianterms,BPRisacreativedestructionprocessremovingfunctionbasedverticallystructuredhierarchiesbyefficient,process-centeredindependentandempoweredhorizontalstructures.Asapointofreference,wedefineBPR,offeredbyHammerandChampy{Hammer,M.andChampy,J.,1993}intheirbookReengineeringCorporations,astheradicalrethinkingofbusinessprocessestoachievedramaticimprovementsincriticalcontemporarymeasuresofperformancesuchascost,qualityandspeed.

Thisdefinitioneffectivelyrulesouttheincrementalprocessimprovementsbroughtinbyqualitymanagementorconcurrentengineeringasreengineering.Nevertheless,theseimprovementscanbesubsetsoftheentirereengineeringprocessandtheincrementalimprovementstheybringinmayeventurnouttobeusefuldeterminants.WeshallthereforeciteinstancesofsuchimprovementsinthisreportaspartofanalysisofthereengineeringexperienceinAmericancorporations.

ModelingandSimulationofProcesses

Reengineeringconsistsofrestructuringalltheprocessesinthebusinesssothattheybecomeefficient,transparentandintegratedwithotherprocessesinthesystemseamlessly.Inturn,thisrequiresthateveryprocessintheexistingsystembefirstscrutinizedtoassessitsperformanceandtodelineateitscross-functionalrolebeforeitiseliminated,modifiedorreplacedbyanewprocess.Forsuchanalysis,versatileandefficienttoolsandsimulationtechniquesarecritical.ManymodelingapproacheshavebeenusedincludingarecentonebasedonSystemsEngineering{Bhasker,R.,et.al,1995}.While,mostbusinessprocessesarecomplexandarenoteasilyamenabletoanalyticmodelingwithoutapproximations,simulationmodelsandmethodscapturecomplexprocessesmoreeffectivelyandcanbesubsequentlyvalidatedandoptimized.Inthisreport,wethereforediscussvariousanalyticmethods,simulationtechniquesandtheirtoolsthatarenowavailableforBPR.

InformationTechnologyandReengineering

InformationTechnology(IT)isperhapsthemosteffectiveenablingtechnologyforreengineering.Ithelpsinmeetingtheobjectivesofreengineeringinthreeways:byprovidinginformationacrossfunctionallevelsandestablishingeasycommunication,improvingtheperformanceoftheprocessesitself,andalsobyhelpingthereengineeringeffortbymodeling,optimizingandassessingitsconsequences.TheveritablerichnessofthissingletechnologyhasledmanytointerpretreengineeringastheapplicationofITtobusinessprocesses.WeshalldiscusstheroleITplaysinsomeAmericanreengineeringefforts.

U.SCorporationsandReengineering

Inthisreport,weshallcitethreerecentexamplesofU.S.manufacturingfirmsthathavetransformedtheirorganizationsentirelythroughre-engineering.Inaddition,weshalldiscusstheexampleofaU.Sdefensecontractorventuringintoacivilianareasofbusinessandreengineeringtheentireprocesstointroduceanewandacompetitiveproductand,service.Americanbusinessisnotexclusivelymanufacturing;servicingcontributesamajorcomponenttotheGDPandtoemploymentgeneration.In1991,76percentofU.Soutputcamefromservices,andthevalueitaddedtotheU.Seconomyisabout70percent.Italsocontributessomekeyelementstomanufacturing:vendorsandcustomersareservedbythisindustry.Weshallthereforeincludesomeexamplesofreengineeringeffortsinthisareathathaveturnedouttobesuccessful.

Becauseoftheveryscopeandsizeoftheeffortsdemandedbyreengineering,theexamplesarestillveryfew,thoughtherearenumerousinstancesofcompaniesreengineeringaprocessortwo,nodoubthopingthatthevisiblesuccessoftheeffortswouldmakereengineeringmorepalatable.

TheRoleofTechnology

Reengineeringdoesnotclaimtosubstituteforeitherasoundbusinessstrategy,productortechnology.Itisonlyamechanismforradicallyimprovingtheperformanceofthebusinessprocessesforthevendors,customersandproducts.Butbycenteringthewholeconceptonprocesses,reengineeringisinextricablylinkedtotechnologies;notjusttoinformationtechnologythatprovidesthenecessarytoolsforthetransformation,butalsotoothertechnologiesthatarenecessarytotheprocesses.ThisisofsomeimportancetotheU.Sbecauseitscorporationstendtoconcentratemoreondevelopingproductsthanonprocesses{Mansfield,E.,1988}.Anti-trustlawsandconcernsaboutcartelsandmonopolieshavealsopreventedtheU.Scorporationsfromcooperatingwitheachother.ThisisasorepointwithmanyAmericancompanies.Theycomplainloudlyabouttheextenttowhichtheirforeigncompetitorsareabletogetsupportfromtheirgovernmentsortopursuecollaborationswithcompetitorswithintheirnationalboundaries,tojointlydevelopnewtechnologies.Atlast,theU.Sgovernmentiswakinguptothischallenge.TheperceiveddifficultyofacquiringsemiconductorchipmanufacturingequipmentfromJapaninducedtheU.Slawmakers,whonormallyfrownoncorporationscomingclosetoeachother,cooperateinsettingupanorganizationSEMETECHformanufacturingsemiconductorprocessingequipmentwithinthecountry{Randazzese,L.,1994}.GovernmentinterventionhasgrownfurtherwiththetwomajorU.SgovernmentR&Dorganizations,NationalInstituteofstandardsandtechnology(NIST)andAdvancedResearchProjectAgency(ARPA,formerlyDARPA)contractingresearchanddevelopmentprogramsonmanufacturingtechnologies.AmajorconditionforthissupportisthattheseprogramsbejointlypursuedbyresearchorganizationsandUScompanieswiththecompaniesplayingthemajorrole.Eventhoughthisinitiativemaynotfitintothestructureofreengineeringasisperceivedtoday,webelievethiscollaborationwillhaveprofoundimpactonthefuturestrategiesofUScorporationsduringrestructuring.Ineffect,U.S.Companieswillhavetheaddedbonusofchoosingfromnewsetsofprocesstechnologies.WeshallreportonsomeinstancesoftheinitiativestakenbytheU.Sgovernmentinthiseffort.

HumanResources

Theroleofhumanoperatorsisradicallyalteredinreengineering.Insteadofspecializedskills,abroadrangeofcompetenceiscalledfor.Akeywordinreengineeringisflexibility,andthisappliestohumansaswell.Functionallybasedverticalhierarchiesarereplacedbyhorizontalstructureswheretheposition-basedpowerisreplacedbyparticipation-basedauthority.Thisshiftprovidesthescopeforextensivedelegationofpowerandresponsibilityinreengineering;thisisoneofthereasonsforthepresentU.Sadministrationcomingforwardwithfiscalincentivesforworkerretraining,calledre-skilling.

Inspiteofthepromisesofempowerment,thereisagenuineconcernamongworkersaboutreengineering.Whileaflathierarchicalstructureswithminimumdesignationsappeartobegoodforgeneratingtheenthusiasmofworkers,italsofrightensthemasthereappearstobefewavenuesforpromotionandgrowth.Onlylateraldisplacementsarevisibleasalsothespectreofdownsizing.Weshalldiscusstheconsequencesofthisconcerninsomeinstancesofreengineeringandtheaftereffectofthisfeed-backamongtheproponentsofreengineering.

WhatisJapanDoing?

Companiesoptforreengineeringtorestoretheircompetitiveedgeintheirlineofbusiness.Butthisexperimentisperformedinmanycountrieswithtechniquessuitablyalteredtotakeintoaccountthedifferentenvironmentsinwhichtheyoperate.AmajorquestionusuallydiscussedamongtheU.SacademicsinbusinessmanagementistheperformanceofJapan.WeshallbrieflydiscusshowtheJapanesecorporationsrestructuretheirbusinessinrelationtowhatishappeningintheU.S.Thisisofsomerelevanceasrightly,or,wrongly,U.SperceivesJapanasitsprincipalcompetitorinmanyareasofhightechnology,whereitwantstoremainontop.Hence,tradedisputesarenoteasilyresolvedandaretakentothehighestlevelsofpoliticalleadershipseekingfavourablesettlement.

Section4:CorporationsandReengineering

Weshallfirstdiscussthreespecificexamplesofreengineering,mainlyinmanufacturing.Eachofthesecasesexemplifytheneedforradicalrestructuringoftheorganizationwithattendantemphasisoninformationtechnology,humanresources,opencommunicationflow,supplierre-engineeringandeducation.Thefirst,theChryslerCorporation,oneofthebigthreeoftheU.Sautogiants,probablyisthemoststudiedandvisibleexampleofradicalstructuringintheautoindustrythatincludedacompletelyredesignedworkplacetoaccommodatethenewprocessandphilosophy.ThesecondcaseisCaterpillar,onceanunchallengedearthmovingequipmentmanufacturer.In1984,thiscompanyfounditselfwithabilliondollarlossandintensecompetitionfromtheJapanesecompanies,KomatsuandHitachithatchallengeditspreviouslyassuredoldhome-market.Caterpillarhadtorestructureitswholeorganizationradically,andtheresultshavebeenverysuccessful:itreapedarecordprofitin1994.ButtheroutesfollowedinthisrestructuringbyCaterpillarandChryslerhavebeenverydifferent.Thethirdcaseisagovernmentspaceresearchlaboratory,JetPropulsionLaboratory,thathasrestructureditselfinthefaceofextensivecutsindefenseandspaceprograms.Weshallanalysethesecasesusingastructurethattracesthehistoryofthefirm,thefocusofre-engineeringandtheroutesadoptedforitsimplementation.Theseswillincluderestructuringbothattheorganizationalandworkplacelevels,useofinformationtechnologyandhumanresourcemanagement.

Section5:TheChryslerCorporation

ThehistoryoftheChryslerCorporation,oneofcollapseandrevivalthroughreengineering,hasprovidedamajorimpetusforthisbusinessinnovation.Afterawellpublicizedgovernmentbailoutwhenitsbankruptcywasimminentinthe70's,theinitialturnaroundofChryslerwasmainlyfueledbysales,themarketingstrategiesofLeeIacocaandthefortuitousdemandsforitsminivans.Allthes