Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Kim Huat Trading Pte Ltd (KHT) is a supplier of hardware to the construction industry. Due to the Covid-19 pandemic and Circuit Breaker measures introduced
Kim Huat Trading Pte Ltd (KHT) is a supplier of hardware to the construction industry. Due
to the Covid-19 pandemic and Circuit Breaker measures introduced by the authorities, the
revenue and profitability of KHT have taken a big hit. Revenue has shrunken so much that the
company has been operating in the red for many months since April 2020. Accounts
Receivables collections are down, thus affecting cash inflow.
Fearing the worst, the CEO decides to embark on massive digitalization projects to transform
his business as he knows that his 30-years old business cannot operate like before. However,
Mr Tan, the CEO, has little appreciation of IT and is still comfortable with paper and pen
style of running his 120-employees business. Until today, most of the sales orders are taken
over the phone and written on paper. Even the jobs of the employees may be affected now as
he deliberates retrenchment as one of the drastic ways to save the company as its customers are
turning to competitors that have been more responsive and successful in digitally transforming
their business.
Therefore, one month ago, Mr Tan turns to Jimmy, a 31 years-old Operations Manager, to
instruct him to lead the project with new ideas. Jimmy feels that the company must take a radical approach to change as the existing and outdated business model, so he establishes a
Business Process Reengineering (BPR) project, through which he intends to apply the key BPR
principles to save the business. The existing mostly manual business processes are highly
inefficient and prone to human errors. Jimmy must pull this project off fast, tentatively within
4 months to save jobs and the company. Jimmy does not have any prior BPR project experience
though he has read it in a SUSS course.
Today is the BPR project kickoff meeting, and Jimmy is feeling uneasy. Mr Tan is not present
although he has previously said that he would give an opening address to emphasise its
importance. The other key steering project team members, managers from the Marketing and
Logistics Departments are not present, sending their junior staff to attend. The IT Manager and
Finance Manager are present.
During the meeting, the IT Manager keeps suggesting using the latest technology to overcome
the problems and adds that Jimmy should not waste time in doing lengthy requirements and
business processes analysis. The IT Manager insists that he knows what to do. The Finance
Manager claims that, being in the accounting and finance function, she just wants to ensure
quick and accurate credit collections to improve cash flow; she does not care how and what the
BPR project is all about.
The meeting ended without much being achieved. As the next step, Jimmy decides to call Mr
Tan for a meeting to report on the situation and the proposed BPR implementation plan, which
he has developed by himself for the previous 2 weeks. Little does Jimmy know that the
Marketing Manager has called Mr Tan earlier to complain that the BPR project is a waste of
time and resources, and the focus should just be on increasing marketing and sales activities to
bring in the desperately needed revenue and cash.
(a) Apply the key concepts and objectives behind Business Process Reengineering (BPR)
to demonstrate your understanding of the purpose and relevance of the BPR project in
relation to the case described above.
(8 marks)
(b) Analyse the case study above and determine if Jimmys BPR Project will likely succeed
or fail. You will have to support your answer with suitable case facts in arriving at your
conclusion. However, you are not required to quote or apply any of the 7 principles of
BPR in your answer. You may make any reasonable assumptions, but these must be
clearly stated.
(20 marks)
(c) Discuss an alternative way that KHT can seek improvements without initiating a major
BPR project. Explain and justify if such an alternative will be more suitable to KHT in
light of case facts above.
(12 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started