Using business process re-engineering for the development of production efficiency in companies making engineered to order products

Companies making products on an engineer to order (ETO) basis have traditionally found business opportunities through design and product development expertise and an ability to respond to demands for customisation with improved product performance. However, increasingly, customers are seeking lower prices and reduced lead times, which also require improved manufacturing efficiency. These companies are thus being driven to improve the integration of the design, manufacturing and procurement functions. Over the last decade, business process reengineering (BPR) has been developed to enable organisations to become process driven and customer-focussed. However, BPR has not been generally successful for a variety of reasons. One of these is the wide range of methodologies available for BPR projects and confusion with respect to the selection of an appropriate methodology. This paper describes an investigation with a number of collaborating companies, to investigate the methodologies employed and their interaction with other company factors. The research included comparative analysis and benchmarking against a general BPR methodology through in-depth investigations with four major companies, work on a shorter time-scale with a number of other companies and a questionnaire survey. The research has shown that some elements of BPR are not applicable to companies in this sector. It is also concluded that, rather than adopt a prescriptive model, organisations need to develop metrics for performance that more adequately reflect their competitive position and the type of project undertaken. r 2003 Elsevier Science B.V. All rights reserved.