Business process reengineering (BPR) is a powerful strategy for organizations looking to improve performance and competitiveness. Honeywell's Industrial Automation and Control (IAC) business unit successfully implemented a comprehensive BPR initiative called TotalPlant™. This case study explores the key elements and outcomes of the TotalPlant™ reengineering process and its impact on Honeywell IAC.
The Context of Honeywell IAC
Honeywell, a diversified technology and manufacturing organization, serves customers globally with aerospace products, control technologies, automotive products, and specialty materials. The IAC business unit in Phoenix, Arizona, is responsible for designing and manufacturing process control equipment marketed as the TDC 3000X family of systems. IAC's customers include refineries, chemical plants, and paper mills worldwide .
Emergence of Performance Challenges
Facing declining performance, IAC management embarked on the TotalPlant™ reengineering initiative. This ISO 9000 certified quality program aimed to optimize global customer satisfaction by reducing defects, minimizing production cycles, and optimizing resource management. The initiative was built on four principles: process mapping, fail-safing, teamwork, and communication .
The Role of Process Mapping
Process mapping was a cornerstone of the TotalPlant™ initiative. It involved converting business activities into graphical forms to create a common visual language. This methodology enhanced employees' ability to see beyond their immediate work boundaries and facilitated radical changes in business processes. The process mapping consisted of eight major stages:
Selecting the Process: Identifying the process to be reviewed, all customers, and setting boundaries.
Developing an "As Is" Map: Outlining and documenting the existing process to identify product and information flow, decision points, and dependencies.
Calculating Cycle Times: Measuring the elapsed time between the start and conclusion of a process, and the distance traveled by the product.
Identifying Improvements: Analyzing non-value-added steps, extended approval processes, and highly variant cycle times to streamline or eliminate inefficiencies.
Developing a "Should Be" Map: Creating a map that describes the improved process.
Implementation Planning: Developing a process implementation plan, obtaining steering committee confirmation, and setting new goals and tracking results .
The Fail-Safing Process
Fail-safing aimed to create defect-free products by identifying and analyzing defects, understanding their root causes, and developing solutions. This five-step process involved:
Identifying Defects: Recognizing and analyzing defects and their root causes.
Developing Solutions: Creating and evaluating alternative solutions for ease of implementation, cost, and time.
PDCA Cycle: Implementing the Plan, Do, Check, Act cycle to move solutions forward and ensure desired results are achieved .
Emphasis on Teamwork
Teamwork was crucial to the success of TotalPlant™. Honeywell transitioned to a team environment gradually, integrating education and training around teams. Team members were empowered to address real problems using systematic tools, fostering an environment of creativity, innovation, and risk-taking. Managers were trained to support, not run, the teams, enhancing the team-based culture .
Importance of Communication
Effective communication was foundational to the TotalPlant™ initiative. Top management's commitment to open communication and daily actions exemplified the new values. Teams received training in conflict resolution, problem-solving, and listening skills to improve overall communication effectiveness. This shift supported teamwork, creativity, and innovative thinking .
Outcomes and Reflections
The TotalPlant™ reengineering process led to significant performance improvements:
Defect Reduction: A 70% reduction in defects.
Customer Rejects: A 57% decline in customer rejects.
Inventory Investment: A 46% reduction in inventory investments .
Honeywell's success was attributed to top management's active participation, a clear vision, specific goals, the use of information technology, and comprehensive training. The reengineering initiative highlighted the importance of empowering employees, fostering a culture of continuous improvement, and aligning organizational structure with new processes and strategies .
Implications for Organizational Development
The Honeywell IAC case demonstrates that successful reengineering requires a systematic approach, strong leadership, and a commitment to cultural change. Organizations looking to undertake similar initiatives can learn from Honeywell's experience by focusing on process mapping, fail-safing, teamwork, and effective communication.
Conclusion
The TotalPlant™ reengineering process at Honeywell IAC showcases the transformative potential of business process reengineering. By implementing strategic principles and fostering a supportive environment, organizations can achieve substantial performance improvements and long-term success. At OrgEvo Consulting, we specialize in facilitating reengineering initiatives to help organizations navigate complex transformations and achieve their strategic objectives.
Connect with OrgEvo Consulting
OrgEvo Consulting offers comprehensive services in organizational development, including reengineering, change management, and strategic planning. Our customized interventions are designed to enhance operational efficiency, foster collaboration, and drive organizational success. Contact us today to learn how we can support your organization.
Comments