Presentation for BPR for Sem 8

1. Mahindra & Mahindra
A BPR SUCCESS STORY
Presentation by
Ivan Samson Kasookar
(0815040)
Hiten Dodeja
(0815047)

2. VISION
• To create a fully collaborative environment in which
suppliers can deliver exactly what the company needs, when
it needs it, and at a competitive cost.
MISSION
• To create India's largest automobile and automobile-related
products distribution network by providing dealers and
customers with the largest choice of unique world-class
products and services.

3. “Let me put it in a simp
way. If we have facilit
in Kandivali today
which are not just
surviving but thriving
it is all due to BPR”
ANAND MAHINDRA

4. Topics to be covered
1. Introduction of M&M
2. Why BPR was needed?
3. The first steps
4. Barriers
5. Firm steps
6. Implementation of BPR
7. Results

5. Introduction Of
Mahindra And Mahindra
•Started in 1945 by J C Mahindra & K C
Mahindra
•In Oct. 1947 first batch of 75 jeeps
released for Indian market
•Diversified business in other segments viz.
hotels, financial services, auto components,
information technology etc.

6. Continued….
•Current Price in the stock market at Rs 676
•Automotive divisions ( UVs & LCVs)
•Farm equipment division (tractors and farm implements)
•In 1996, Nagpur and Kandivali plants received ISO 9001
•In 2001 it was 4th largest manufacturer of tractors in the
world

7. Continued….
•Tractors were exported to countries viz. US, SA, Zimbabwe,
Nepal, Sri Lanka and most of the European countries
•Acquired Kinetic Scooters having 80% stake to strengthen
its two wheeler segment
•Amalgamation with Punjab Tractors Limited to strengthen
its three wheeler segment

8. Why BPR was needed?
•Manufacturing Inefficiencies
•Poor productivity
•Long production cycle
•Sub-optimal output.
•Unhealthy work culture- militantly organized Unions
•Corruption was widespread.
•Management lenient & often crumbled under
pressure

9. Continued….
Three C’s
1. Customer
2. Competition
3. Change

10. The First Steps
•1994 – Major Restructuring Program was initiated as a part of
BPR.
•Program was Developed by UK based Lucas Engineering System
•People involved in corrupt practices were sacked
•Voluntary Retirement Schemes were introduced.
•But the unions refused to co-operate and the workforce could not
be reduced.

11. BARRIERS
Hard Barriers Soft Barriers
These are Legal These are People
obstacles and Problem
Technology
issues

12. Hard Barriers
•Legal Obstacles
•IT Integration Problems
•Existing Bureaucratic structure

13. Soft Barriers
These are People Problems
1. Employee and union Resistance
Fear of downsizing
Several jobs combined into one
Fear of Job losses – Key personnel
Inflexibility of Workers
2. Management Issues
Lenient Approach
Management accepting union demands everytime
Management skepticism about BPR
Management lacking commitment

14. Firm Steps
•M&M's management was not surprised to learn that the
unions expressed extreme displeasure at the decision to
implement BPR and soon went on a strike.
•However, this time around, the management made it clear
that it would not succumb to union demands.
•Soon, the workers were surprised to see the company's
senior staff come down to the plant and work in their place.
•Around 100 officers produced 35 Engines a day as
compared to 1200 Employees producing 70 Engines in
pre-BPR days.

15. Continued….
•After five months the workers ended the strike and
began work in exchange of 30% wage hike.
•And BPR gained momentum

16. Implementation of BPR
Stage 1:- Restructuring of M&M Group
Regrouped in six distinct clusters of related
businesses as SBU each headed by a President
• Infrastructure
• Trade & Financial services
• Tele communication
• Automotive components
• Automotive Div (UV, LCV, 3 wheelers)
• Farm Equipment division (Tractors)

17. Continued….
Stage 2:- Re-engineering the entire layout & processes of
working
• Cellular Manufacturing
– Multi-tasking through Multi-machine manning
– Reduction in non-productive Activities
• Implementation of TQM and Kaizen
• Formation of 3 cross functional teams
– Horizon 1: Improvement in existing Product
– Horizon 2: Upgradation of existing Product
– Horizon 3: Development of new Product

18. Results
• Igatpuri Plant: Employees declined by 400 but
productivity went up by 125 engines per day
• Nasik Plant: 125% improvement in productivity
• Reduction in employee costs
• 1994: 12.4%
• 1996: 10.1%
• Improve plant’s capacity utilization from 45% to 55%

19. Continued….
•Value added per employee increased from 0.3 million
to 0.46 million i.e., increase of 53.33 % per
employee.
•Better inventory control
•Better sourcing
•Better order distribution across plants
•Online availability of data
•Transparent access to data
•Process transparency
•Integrated sales and supply chain

20. Factors responsible for success
of BPR…
 Barriers were identified correctly.
 Sustained top management commitment and
leadership.
 Formation of exclusive core team.
 Personal involvement of CEO.
 Cultural resistance had been effectively
tackled.

21. “In our never ending quest for
quality and increasing
productivity t all levels, the
various projects initiated by the
company including BPR are
helping us to achieve higher
productivity, reduction in costs
Keshub Mahindra and improved quality.”
Chairman (1996)
Mahindra and Mahindra

22. THANK
YOU

23. References
•Dr. S. Balasubramanian, “Successful BPR
implementation strategy”
•www.wikipedia.org
•ICMR Case study on “BPR at M & M”