Presentation Re-Engineering Process and its Implementation

Group BMuhammad Ahsan

•What is BRP? (Business Re-Engineering Process)

Re-Thinking and Re-Designing of Busniss process to achive improvement's in performance such as; "Quality,Service,Cost and Speed etc

•Benifits Of BRP?

•Increase Effectiveness•Reduce Cost•Meaningful jobs for Employees•Improvment in Organizational Approch•Growth of Business

Example

Example Cont....d

Case Study

Contents

• Mission And Vision• Company Objectives• Aims• Company Profile• Problem Definition• Underlying Assumption• Re-Engineered Solution• Conclusion

MISSION STATEMENT:-

"We take pride in making the best Mexican style fast food providing fast, friendly, & accurate service. We are the employer of choice offering team members’ opportunities for growth, advancement, & rewarding careers in a fun, safe working environment. We are accountable for profitability in everything we do, providing our shareholders with value growth.

VISION STATEMENT:-

Taco bell will grow into the Largest fast food provider in Mexican style in market. The brands will have an established presence in Asia, South America and Africa, with restaurant locations being found with in the top 25 major cities on these continents.In Shortly “To provide Food Wherever and Whenever Peoples are Hungary”.

Mission & Vision

Company Objectives

Aims

This brief presentation will attempt to shed light on the following aspects,

• Review Performance of Taco Bell

• Examine reasons for reduce productivity

• Review overall effects after Re-Engineering

Company Profile

The Franchise, is an eatery that needNo introduction . It specializes in Mexican

Style food, including various types of Tacos, Salads, burritos etc.

• The first Taco Bell restaurant was opened in 1962 in Downey, California.

• It had grown to 1000 units by the time it was taken over by PepsiCo in 1978.

• By year-end 1996, there were more than 6800, Taco Bell units 17 Countries and Territories, with system wide sales of $4.7 billions.

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Company Profile cont’d

Taco Bell in itself, is a subsidiary(Helpful) of Yum's Brands, a Fortune 500 company, which boasts other famous franchises like Pizza Hut, KFC etc. Yums! Brand’s Global system sales totaled more than $22 billion in the year of 2001.

Problem DefinitionIn 1983, analysis showed that the Taco Bell’s total

Cumulative growth since 1978 was a shocking –ive16% compared to +ive 6% of the total industry.This Prompted the management to pinpoint immediately what was going wrong and where. This Led them to identify the following factors;

• Lack of Business Vision for the Company,• Reliance(Trust) on obsolete management and

operational practices, which focused more upon the Processes instead of Customers.

• Top-Down structures, with multiple levels of management.

• Following traditional approaches, which assumed what customers wanted without even asking them.

All the above factors were resulting in slower and costlier service.

Problem Definition Cont...’d

Having Identified some of the key areas that needed improvement, Taco Bell’s started RE-ENGINEERING itself out of trouble waters. It started concentrate more upon its customers that what they wanted.

The more they listened, the more they found out, that what the customers wanted was really very simple…, good food, served fast in a clean environment and at a price they could afford!!!

Basic Assumption( ( انداذہ The older system at Taco Bell was based upon traditional

operational practices, which were basically insufficient for the economic and business climate of the 21st century. The complete setup was based upon the certain assumption, Which are the following;

• Assuming that the restaurant knew what the customers wanted without even asking them. This led them to falsely believe that customer wanted fancier Decoration, Broader Manus, Out door Play ground etc. instead of Quality food in affordable price.

• Investing in large kitchen areas, Which is some instance covered the 70% of the total area in the mistaken belief that it would improve customers satisfaction.

• Operating the restaurant along the lines of a manufacturing company instead the retail outlet. Doing away with this concept led to the development of novel ideas like K-Minus and TACO.

Basic Assumption( Cont.…d ( انداذہ

• Believing that the only segment they could target was the one within the restaurant premises. This translated into $78 million, whereas outside the Restaurant, total market came to about $600 billion in USA alone.

• Limiting themselves to the goal of becoming the value leader in the quick service restaurant industry instead of value leader for all food for all meal occasions.

Re-Engineered Solution

Re-Engineering the setup at Taco bell involved several Steps including;

• Complete Re-Organization of Human Resource• Dramatic Re-Design of Operational System• Doing away with entire levels of management • Creation of job like “Marketing Manger”• Replacing area supervisors with market managers and

reduce theirs numbers.• Eliminating District manager and promoting Restaurant

managerTaco Bell follow only one rule during Re- Engineering….

“Enhance those things that brings the value of customers and Change or eliminate those that Don’t”

Re-Engineering Cont...dThey also change their restaurant structure by:• Limiting the kitchen area by from 70% to 30%• Increase the Customers area by from 30% to 70%• Doubling the seating capacity in the area availableAdditionally Re-Engineering led Taco Bell to introduce two

new Methodologies, namely K-Minus and TACO(Total Automation of Company Operation)

Re-Engineering Process

TACO(Total Automation of Company Operation

K-Minus

Re-Engineering Solution Cont...d

K-Minus:-K-minus mean Kitchen less restaurant, based on nature of the company. All of their food was cooked outside the restaurant at central location. This stemmed from the concept that food should be retailed instead of being manufactured.

TACO(Total Automation of Company Operation):-It provide each restaurant with an MIS facility and empowered the employees with Computer know-how. It eliminated paper work and allowed more time to be spent on the customers.

Such programs serve as agents of change for more innovative ideas like new and varied points of Distribution(like street corners, concession stands etc.)

ConclusionThis case study bring forth of following conclusions;• Re-Engineering business is very much reality and is

not limited to the confines of textbook. If done properly, it can virtually turn around any business; be it consumer goods(Kodak),Restaurant(Taco Bell) or financial institutions(IBM Credit)

• Customers must be starting point for every thing in Re-Engineering

• Resistance to change should be anticipated and appropriate steps should be taken to deal with it.

• Every company that seeks to be Reengineered should seek a phrase that’s makes it’s corporate vision clear like “We want to be number one in the share of Stomach”(Taco Bell).

Taco Bell

Taco Bell

Special Dishes

The End