Department of Management Studies II Assignment Test (Elective Subject: Quality Management)
Department of Management Studies II Assignment Test (Elective Subject: Quality Management)
Department of Management Studies II Assignment Test (Elective Subject: Quality Management)
IBM Credit is a wholly owned subsidiary of IBM and, if it were independent, would ranks as one of the
largest service companies in U.S. Before taking a reengineering effort, IBM Credit’s operations had
many bureaucratic rules and procedures. When IBM people called in for a credit request, they would
reach one of the fourteen people at the credit center, who would log the request. From there, there a
series of specialists who would each play a role in processing the credit request?
Typically it would take six days to fourteen days to get the final approval. Upon an in depth analysis, it
was found that there was only ninety minutes of work that was required to process the request. The
rest of the time was spent in moving the request through the channels, where it would rest on the next
person’s desk.
This credit process was reengineered by replacing the current group of specialists by a team of
generalists, each of whom would see a credit request all the way through the system. As a result the
time needed to process the requests reduced from six days to four hours, there was a slight reduction
in the number of people working in the department, and there was an increase in the number of deals
being processed, by a multiple of 100.
1. What is BPR? Explain through flow chart process in IBM before implementing BPR and
improvements after implementing the same. [7 Marks]
2. Briefly explain your understanding; whether Re-engineering to be followed in the organisations?
Justify with reasons. [8 Marks]