Dr Martens implemented a business process reengineering (BPR) project that involved redesigning their order fulfillment process. They redesigned the process to spread production scheduling across multiple sub-plan offices, show customer orders with manufacturing site and sub-plan office, and implement an electronic planning tool. These changes improved order completion rates from 55% on time in June 1995 to 99% on time by December 1996 by improving visibility, control over capacity, and communication across teams.

1. A Dr Martens case study
Case-61
Presenters :
Md. Sumon Hossen
Md. Rashedul Islam
Md. Masudur Rahaman

2. Agenda
* Dr Martens Information
* Business process reengineering (BPR)
* The 3 Rs of re-engineering
* Changes in the World of Work through BPR
* Objectives of BPR
* Methodology of a BPR project implementation
* All methodologies could be divided in general 'model' stages
* Benefits of Reengineering
* Types of firms / organizations that BPR can be applied
* Duration and implementation cost of BPR
* Implementation Procedure of BPR
* Example of BPR
* Dr Martens Activities
* Dr Martens Successes
* Q&A

3. Dr Martens :
Dr. Martens : Footwear company
Dr. Martens is a British footwear and
clothing brand, which also makes a range of accessories – shoe care products,
clothing, luggage, etc. In addition to Dr. Martens, they are also commonly
known as Doctor Martens, Doc Martens, or Docs.
Customer service : +1 800-810-6673
Headquarters : Wollaston, United Kingdom
Founded : 1947, Seeshaupt, Germany
CEO : Steve Murray (Oct 2014–)
Founders : Klaus Märtens, Herbert Funck
Parent organizations : Permira, R. Griggs Group Ltd.

4. Business process reengineering (BPR)
Process
is a structured, measured set of activities designed to produce a
specified output for a particular customer or market. It implies a
strong emphasis on how work is done within an organization. “
Reengineering
is the fundamental rethinking and radical redesign of business
processes to achieve dramatic improvements in critical
contemporary measures of performance such as cost, quality, service
and speed.
Business process reengineering (BPR)
is the act of recreating a core business process with the goal of
improving product output, quality, or reducing costs.

5. Business process reengineering (BPR) :
Business process reengineering became popular in the business world in the 1990s,
inspired by an article called Reengineering Work: Don’t Automate, Obliterate which
was published in the Harvard Business review by Michael Hammer.
Michael Hammer was a professor of computer science at the Massachusetts
Institute of Technology (MIT) .
He claimed that the major challenge for managers is to obliterate forms of work
that do not add value, rather than using technology for automating it.

6. The whole process of BPR is based on key steps-principles
which include :
REDESIGN
•Simplify
•Standardize
•Empowering
•Employeeship
•Groupware
•Measurements
RETOOL
•Networks
•intranets
•extranets
•Work Flow
REORCHESTRATE
synchronize
•processes
•IT
•human resources
The 3 Rs of re-engineering

7. Changes in the World of Work through BPR
There is a fundamental transformation occurring in business - in terms of its structure ,
processes, people, and technology.
The table following presents the changes in that occur in the business under BPR.

8. Objectives of BPR
Customer
focus
Speed
Compression
FlexibilityQuality
Innovation
Productivity

9. Methodology of a BPR project implementation
In order to implement BPR to an enterprise the followings key actions need
to take place:
 Selection of the strategic (added-value) processes for redesign.
 Simplify new processes - minimize steps - optimize efficiency -.(modeling).
 Organize a team of employees for each process and assign a role for process
coordinator.
 Organize the workflow - document transfer and control.
 Assign responsibilities and roles for each process.
 Automate processes using IT(Intranets, Extranets, Workflow Management)
 Train the process team to efficiently manage and operate the new process
Introduce the redesigned process into the business organizational structure

10. All methodologies could be divided in general 'model' stages :
The Envision
stage
The Initiation
stage
The Diagnosis
stage
The Redesign
stage
The
Reconstruction
stage
The Evaluation
stage

11. Benefits of Reengineering:
empowering employees
eliminating waste, unnecessary management overhead,
and obsolete or inefficient processes
producing often significant reductions in cost and
cycle times
enabling revolutionary improvements in many business
processes as measured by quality and customer service
helping top organizations stay on top and low-achievers to
become effective competitors

12. Types of firms / organizations that BPR can be applied:
BRP could by implemented to all firms (manufacturing firms, retailers,
services, etc.)and public organizations that satisfy the following criteria
· Minimum Number of employees: 20 (at least 4 in management positions).
· Strong management commitment to new ways of working and innovation.
· Well formed IT infrastructure .
Business Process Reengineering could be applied to companies that
confront problems such as the following:
High operational costs
Low quality offered to customers
High level of ''bottleneck" processes at pick seasons
Poor performance of middle level managers
Inappropriate distribution of resources and jobs in order to
achieve maximum performance, etc.

13. Duration and implementation cost of BPR
Duration
The BPR technique, in general, is not a time consuming process. The duration of each BPR
project varies from 6 -to 10 months.
This variation relates to the kind of business and the extend to which BPR is going to be
implemented.
Moreover, it depends on the techniques and methodology that each consulting company
is using.
For instance:
Implementation Cost
The implementation of a BPR project consists of two stages:
1. The process management and redesign study and consulting stage.
2. The implementation of the redesigned process using IT tools including employee
training and introduction of the new processes to the company organizational
structure.

14. Implementation Procedure of BPR
Steps / Phases of a BPR project :

15. Example:
Accounts Payable Process before Re-engineering

16. Example:
Accounts Payable Process after Re-engineering

17. Dr Martens :
In 1959 : Dr Klaus Maertens & Dr Herbert Funck decided to find a company to produce
their soles for other countries. They selected a company in the village of Wollaston in
Northamptonshire – R Griggs & Company Limited.
In 1994 : the main board of R Griggs Group Ltd decided that a major re-structuring of
its shoe making business should take place. Its aim was to improve control over its
operational and selling activities across the world.
In 1995 :
In April : The consolidation of all manufacturing companies under the name
of ‘R Griggs & Company Limited’ with all of the sales and distribution being controlled
by ‘Airwair Limited.’
Senior Management’s major concerns were:
 Centralization- re-establish the team spirit .
 late deliveries- focus upon Local management teams .
 order process reporting- install interactive production planning and
scheduling computer systems.
 supply chain management- materials Requirement Planning (MRP) system .
 production and capacity planning- P&C System to gain control over the order
book and work in progress.

18. Dr Martens :
In 1995 :
In June : Only 55% of orders were delivered on time.
In August : Only 47% of orders were delivered on time.
At an operational review report showed that considerable confusion had
followed the reorganisation.
Key issues included:
 unclear boundaries between managers and departments.
 inadequate systems and the absence of meaningful management information
 lack of encouragement for local management to take ownership of issues under their
control
 lack of visibility of the number of orders and the available production capacity.
In September : Only 45% of orders were delivered on time.
Reason : Sales > Production Capacity.
 The planning Department established an order routing system which would take
account of the different capacities of the individual manufacturing plants.
 And Two significant steps were taken:
 The order intake for September 1995 was frozen, allowing manufacturing to clear the
backlog in areas with restricted capabilities.
 The available capacity mix was made known to the sales organization.

19. Dr Martens :
In 1995 :
In October : 67% of orders were delivered on time.
In November : 84% of orders were delivered on time.
In 1996 :
In January : 86% of orders were delivered on time.
Spreading risk
It was decided to spread the risk and liability of production scheduling equally across 8
Sub-Plan offices.
In March : To shorten manufacturing lead-times, customer orders were
shown with the manufacturing site and the sub-plan office.
In April : A computer model was built which replicated decision making
parameters and took into account the location and capacity of each plant.
In May : The orders were received by the Sales Department, they were
put into the system and scheduled within 5 days.
In August : implemented the electronic planning tool, ‘AutoPlan,’ .
This further improved control over capacity, work in progress
and strengthened communication links to sales.
In December : 99% of orders were delivered on time.
In 1997 :
In January : achieved both a significant improvement in both customer-
service levels and lead-time performance.

20. Dr Martens :
Order Completed on time:

21. *Dr. Martens is one of the world’s best known brands
and is manufactured and sold to distributors in over
70 countries.
*The Group employs over 3,000 staff working from in
excess of 40 manufacturing sites.
*have enabled significant improvements in
performance by reducing lead-time from in excess of
18 weeks to below 12 weeks over a six month
period.
*Over the 12 months, production at Griggs has
increased by a staggering 20.25%.
Dr Martens Successes :