Pepsi-Cola Manufacturing International Ltd

1. Identify and discuss the business process redesign principles that have been applied by the BR project team.

In business process redesign, the organization need to be have a guidance or principles to make sure that their redesign process is on the right track. In Pepsi –Cola Manufacturing International Ltd (PCMIL), there are based on several principles to ensure they are on the right track on redesign process. The first principles is involvement breed acceptance, which means in moving to redesign process, the employees within the organization has become a part in the BPR team, to let them know process from the beginning, the problems face and utilization of the resources. In other words, people must own before they buy, that represents affected party in redesign process would not accept the changes unless they are having the clear vision and also experienced the intended redesign process. As seen in PCMIL, the entire organization is become as a part of the BR team, which is involved employees from the all levels, such as IT department and employees from the headquarters. Second principles being implemented in redesign process in PCMIL is people believe what you do, no what you say. To gain contribution from the employees, the top management need to show their enthusiasms in redesign process, to demonstrate they are serious in the redesign process.

Through the modeling behavior showed by the top management, the employees will be eager to join them in making the redesign process success. As in Pepsi-Cola Manufacturing International Ltd (PCMIL), the full support contributed by the top management showed that they are taking the redesign process as an serious event, which supporting by the team from the headquarters. With this role-model, employees will believe the vision communicated to them and will working together with the BR teams towards the vision. Progress in not linear, nor it smooth also the principle used in PCMIL redesign process, which means transforming process is logically follows it predecessor and each module of change is orderly and functions independently on other changes. Redesign process required systematic, one step at one time changes to ensure that the redesign process in on the right track. As in PCMIL, the first steps in redesign process is selecting the software to support the redesign process, then transform the process in a form of centralized, and also mapped out the process that will be integrate to make sure they are producing the desired output.

2. What were the warning signs of trouble that triggered the need for reengineering? Discuss.

Before the initiative of redesign being communicated by the top management, they can see the warning sign that indicate them to change. As for Pepsi-Cola Manufacturing International Ltd., bottleneck and disconnects in critical cross-organizational process telling them that they are need to redesign their work process. In PCMIL, there are several department that operating based on their function, which are moving towards the mutual goal, because of they are isolated with other departments, they are operating alone without having contact with other department that lead to miscommunication in achieving the goals. As seen in PCMIL, inconsistent and gaps in process knowledge documentation that cause problem in auditing process stimulate the PCMIL to reengineer their process. Besides that elusiveness of accountability also sign for the PCMIL to redesign their process.

As mentioned earlier, PCMIL consist of several departments which are working towards mutual goal, but when the auditing process being held, it is difficult for the auditor to identify which department is responsible for each process, because of improper documentation of the process knowledge. The redesign objective is to streamline the PCMIL processes for SOX activities and to ensure that they are complying with GCS requirement. To achieve this objective, the PCMIL need to automate their current process by using aid of technology. Automation of the existing bureaucracy also a sign for the PCMIL to redesign their process. With the help from headquarters team, the process in PCMIL has been listed out and assigning of responsibility for each process is smoothly completed. Besides that, with using the Interfacing’s Enterprise Process Center (EPC), which the system integrates all the process in PCMIL, the time-consuming problem can be solved and provided PCMIL with the centralized monitoring system for process as well as easy data accessibility, for the audit process.

3. Discuss the size of the reengineering project as determined by Pepsi-Cola Manufacturing International Ltd.

In redesign process, the organization need to sizing the project properly, to ensure that they are able to control and monitor the project. This is because if the project scope too broad, the organization or the BR team will be miss some part or element in the redesign process. There are four (4) factor the organization should consider in sizing the BPR project which are issues of scope, boundaries, timing and also resources. In determining the scope of BPR project, there are several rules that need to be followed by organization, which are limit the project to less than seven and more than four interrelated process, should not exceed the control of highest level of BR team’s members, the process involved directly related with the desired vision, and also the processes shared inputs and outputs. As for Pepsi-Cola Manufacturing Ltd., they are hoping to streamline their SOX activities, and the activities involved has been identified. For each process or activity, the BR team has the access to their information and knowledge and the integrated process produce the same outputs and required the same inputs from the processes.

In determine the boundaries of the BPR project, the PCMIL has identified the units responsible for performing the processes and supplying inputs and receiving outputs through the interface. With the mapped of critical processes, the BR Team in PCMIL can determine their scope and limitation in the redesign process. Allocation of time in completing the BPR project also should be relevant, and sufficient for the BR team to accomplish their mission. In Pepsi-Cola Manufacturing Industries Ltd., even they are no reveal the time consumed in completing the project, the successfulness of the project indicate that the project is consume a long period of time and being accepted in the PCMIL’s culture based on 100 non-technical user of the new design of work processes.

For resources, there are three (3) main keys which are financial, facilities and equipment and human. As what happen in PCMIL, the top management and employees are actively participated in the redesign process, it show that the process have the sufficient human resources, as well as the financial support from the top management. Besides that, PCMIL also provided the BR Team with equipment and facilities helps such as Interfacing Enterprise Process Center (EPC).

4. Identify the goals of the business reengineering. Were the goals achieved? Explain by providing the specific measurement used.

The goal of business reengineering in Pepsi Cola Manufacturing Ltd are to reduce preparation time, costs and risk of human error associated with GCS and SOX audits increase process clarity and transparency, improve visibility of risks, centralize processes that facilitate the management of the process life cycle, including process related information, also document roles and responsibilities to ensure segregation of duties and also establish a clear audit trail that facilitate the compliance side of continuous improvement, also to streamline their preparation for SOX activities and to ensure compliance with GCS requirement. Besides that, the integration of day-to-day operations, and also to centralized the process to facilitate in management of process lifecycle. The BR teams in PCMIL has achieved their desired goals as they has integrated the GSC initiative as an ongoing part of business operations. The implementation of GSC was successful, which seen when their employees easily adopt and use the system.

The redesign process being measured through the internal elements, which is the process, in term of quantity, the number of user getting increase and they are met with the Global Control Standard (GCS) in term of quality. By centralizing the EPC Process Library, the roles and responsibilities are clearly defined and documented, which visibility of process knowledge and consistent across the organization. It also accessible by the auditor and PCMIL employees. The redesign process also provided GCS audit with precise and detailed responses to process and control-related inquiries, decrease the number of risks occur during the audit process. The successfulness of the redesign process being measured by quality measurement, which the number of risk associated with audit is decrease, and also the designation of employees is clearly defined and consistency in documenting the process knowledge.

5. Select one of the processes in the case study. Draw the flowchart for (i) current process, and (ii) the reengineered process. i) Current process

ii) Reengineered process

a) Identify and write excellence criteria, current benchmark and vision goals for the process selected in (a)

|Excellence criteria |Current benchmark |Vision goals | |Generation of consistent and updated |Inconsistent, manually update the manual |Centralized system generate consistent and | |manual |process |update manual |

b) Develop two (2) quantity and two (2) quality measurement for the excellence criteria identified in (a)

|Quantity |Quality | |Number of manual produced |Percentage of inconsistent and outdated manual produced | | |Number of new processes integrate into the system | |Number of user access to the system | |

6. Discuss three (3) factors that have contributed to the success of the reengineering project.

i) Lead from the top, work the details from the bottom
The top management showed their commitment by fully support the redesign process. The BR team who is recognized by the management started with identify the problem occurs and the process which need to redesign. By gathering the data from the affected process as well as user (employees), the root cause of the problem and the correction measurement can be develop effectively to overcome the problem. As an example, inconsistent process knowledge produced in decentralized database has been transform to centralized database that produce consistent knowledge process document.

ii) Design the whole, implement in pieces
In the reengineering process, the redesign process will capture the total process, but in implementing phase, it should be done part by part to make sure that the redesign process is compatible with other process, which changes in one process will affect other process (interpedently). As example in PCMIL, the BR teams mapped out the critical process, and the corrective pelan to overcome the problem occur, but during the implementation, they are doing it part by part to see the affected process, and the output produce and making adjustment to the redesign process if necessary.

iii) Don’t let consultant do it for you or to you
In Pepsi –Cola Manufacturing Ltd. reengineering process, they are using the internal expertise with the assistance from the headquarters. This is because by using the internal knowledge, they are more familiar and clearly identify the target of the organization in the BPR project. They also know what is the best for their organization as well as the confidentiality of the organization information is secured.

Captured and documented process-related information

Collaboration with cross-functional processes

Validate and migrate PCMIL’s existing process into EPC

Define roles and responsibilities and integration with Risk Matrix

Generate process documentation and audit reports.

Informal and central documentation system

Inconsistent process knowledge

Lack of accessibility to the documentation

Decentralized and manually updates manual process.