CASE STUDY ONBUSINESS PROCESS RE-ENGINEERING AT ROYAL ENFIELD INDIA
LOHITH .D MBA 1st semester ILAM Bangalore campus
Introduction Briefhistory of Royal Enfield Case study CEO speaks Questions References Video clipping of manufacturing process at Royal Enfield India
INRODUCTIONAccording to Michael Hammer and Jim Champy published in their book “Re-engineering the Corporation” in 1995 the Definition of Business Process Re-engineering is as follows: “Re-engineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance”
BPR is the key to transforming how people work , what appears to be minor change in process can have dramatic effect on cash flow , service delivery and the costumer satisfaction. Even the act of documenting business process will typically improve organizations efficiency by 10%.
ADVANTAGES OF BPR1) Re-engineering integrates various tasks and activities into one.2) Non –value adding activities are eliminated.3) Processes are understood from the perspective of costumers.4) It promotes „rethinking‟ the nature and purpose of work5) Work assumes multi-dimensional perspectives.
6) Corporate and individual values change from being „protective‟ to „productive‟7) Smart work rather than hard work becomes the norm.8) Technology as an enabler becomes an important agent of business transformation and success.9) The organization‟s attention is focused on where to compete rather than how to compete.
10) It promotes proactive culture, questioning everything an organization does and seeking innovative ways of doing work.11) It aligns core processes to business strategy.12) It promotes an organization‟s capability to adapt.
Brief history about the company Enfield Cycle Co. Ltd. ROYAL ENFIELD Industry Motorcycles, lawnmowers
Founded 1893, as Enfield Manufacturing Co. Ltd. Headquarters Redditch, Worcestershire, England Key people Founders Albert Eadie and Robert Walker Smith Products Royal Enfield Clipper, Crusader, Bullet, Interceptor, WD/RE, Super Meteor Defunct 1971 Headquarters Successor Royal Enfield (India)
Royal Enfield was thename under which theEnfield Cycle Companymademotorcycles, bicycles, lawnmowers and stationaryengines. This legacy ofweapons manufacture isreflected in the logo, acannon, and their motto"Made like a gun, goeslike a bullet". Use of thebrand name Royal Enfieldwas licensed by the Crownin 1890.
Royal Enfield is now the oldest motorcyclebrand in the world still in production with theBullet model enjoying the longest motorcycleproduction run of all times.Royal Enfield motorcycles has been sold inINDIA from 1949. In 1955, the Indiangovernment looked for a suitable motorcyclefor its police and army use for patrolling thecountry‟s border . The Bullet was chosen asthe most suitable bike for the job. The INDIANgovernment ordered 800, 350cc modelBullets, an enormous order at that time.
In 1955 , Reddich company partnered Madras Motors in India in forming „Enfield India‟ to assemble under license the 350cc Royal Enfield motorcycle in Madras(now called Chennai). Under Indian law, Madras Motors owned the majority (over 50%)of shares in the company.In 1957 tooling equipment was sold to Enfield India so that they could manufacture components.By 1962 the complete bikes were manufacturedIn India.
The engines of the bikes weremade of cast iron which was thereason for the stupendous thumpthump sound of the machine.This stupendous sound of themachine , its sheer power, matchless stability and ruggedlooks made it a huge hit amongthe people . It looked tailor madefor the Indian roads.Later on in 1960‟s ,Enfield ofIndia split up with Royal Enfield ofUK, as the former couldn‟tcontinue with the changes beingmade to the bullet.
Later things went haywire with the originalcompany defunct in 1971, Enfield of Indiahad no technological support and had atough time coping up with frugal Japaneserivals and also due to emission norms, theengine had to be ditched for a more sobersounding alloy unit.The gear box was also agricultural and oilleaks, along with regular trips to mechanicalso added a problem for the Enfield.
In 1990 Enfield of India venture intocollaboration with Eicher group, a leadingautomotive group in India and later mergedwith it in 1994. Eicher group is involved inthe production and sales oftractors, commercial vehicles andautomotive gears.Enfield of India bought the rights to usethe Royal Enfield name in 1995.
With the merger, the Royal Enfield with Eicher constructed an engine i.e.; UNIT CONSTRUCTION ENGINE (UCE) which now have replaced the CAST IRON engines which existed for over 50yrs on all its models.This is a bid to keep the model alive while managing to meet the stringent emission norms that the Bharat stage lV norms lay down for all automobiles in India
Here are the new bunch of bikes straight from the Royal Enfield pavilion which embark upon with the UCE engine with twin spark ignition.
Other new features include:1) 5 speed gear box , with gear shift on left.2) Reliable four stroke , single cylinder engine.3) Reliable dense electric starter.4) New „Flat line‟ dual seat.5) New petrol tank shape.6) Gold star like exhaust pipe.7) Chrome plated rear brake lever on right.8) Modern Japanese switch gear.
Now the Royal Enfield follow the LEAN MANUFACTURING TECHNIQUES in its production process and POKA-YOKE being the most important lean manufacturing technique .They also adapt KAIZEN TECHNIQUE in their process.One of the uniqueness in their production plant is TOTAL PRODUCTIVE MAINTENANCE.
The company is ISO 9001, ISO 14000 and ISO 16949 certified.The TNS survey has rated ROYAL ENFIELD as the “BEST CUSTOMER SATISFACTION” bike in cruiser category.
Dr. Venki Padmanabhan the Doctorate is a Ph.D in Industrial Engineering From university of Pittsburg.In an interview to AFP(Agence France- Presse, French news agency) from the company headquarters in the southern port city of Chennai told that the group had turned a new page in its illustrious history.
“Finally the things that needs to be cleaned up got cleaned up and they have had a very subtle but very significant impact” he says.Padmanabhan compares managing the company , owned by the Indian Industrial group Eicher for the last 16 years, to caring for a Chinese bamboo tree.
“You have years of experimenting and figuring out what works, working out how to protect the plant and then finally it grows eight feet”.“I think this is what we are beginning to see” he says. “The fundamentals have finally clicked”.
What likely to be seen as a watershed moment in the history of the firm, Enfield dared to offend the purists(someone who insists on great precision and correctness) by overhauling the engine in 2009, launching the brand new Classic motorcycle.Initial order for the bike , which retails at RS1,50,000 were expected to be 150-200 a month , but the company quickly found itself processing about 100 a day.
Suddenly the previously niche manufacturer had an eight month waiting period and production at the creaking factory in Chennai – described as a „relic‟ by Padmanabhan – has since been ramped by 40% growth.Demand is so great that Eicher has agreed to invest in a new RS 100 crore ($22 million) Greenfield factory near Chennai that will double the production capacity from 70,000 bikes a year to 1,50,000 by 2013.
The expansion plans are ambitious, the company is taking the export market seriously for the first time, building overseas sales networks in Britain, United States, Germany, France and Japan..
Thekey to success of new model was keeping enough of old features to retain the heritage of Royal Enfield, while removing the problems that turned off potential buyers – says Padmanabhan
What according to you are the important stages in Re-engineering of Royal Enfield motorcycle? What other versions or models do you wish to add to existing line of Royal Enfield motorcycle?
Wikipedia (History of Royal Enfield) Royal Enfield motorcycle history(Google Custom Search) MotorBeam.com(The fascinating history of Royal Enfield) Robert E .Cole. “Re-engineering the Corporation: A Review Essay”. Quality Management Journal (July 1994):77-85 ^_ Ian Chadwick Enfield India[retrieved 22 October 2006] LinkedIn profile of Dr. Venki Padmanabhan CEO of Royal Enfield