It is no secret that to achieve success in the business world, including survival, it is necessary to make fundamental changes in the way companies are run. Without a doubt, today it is the element of reengineering. Today it is one of the most debated topics in the office and factory environment in many countries. Reengineering is reaching the point of being considered as the way to reduce costs, arrive on time to the market, expand customer satisfaction and solidly increase sales, all at the same time.
Therefore, in today's changing business world, no one can afford to operate the same way throughout the life of your business. It would be wrong to do so, since the other businesses belonging to its competition could take advantage of this great opportunity. In this commercial world you have to constantly change in order to attract as many public as possible and maximize profit.
CHAPTER I
The problem
I.- Statement of the problem
The goodwill "McDonald's El Viñedo" despite being governed by a prestigious international model of operation, presents internal problems that create inconveniences for employees and also for the optimal operation of this specific fast food center. The organization is not well structured for an establishment so well located where the influx of customers is very high, presenting problems both at the level of employees and at the level of customers. Among the possible causes of these problems, which if they persist could cause crises and could cause the establishment to malfunction, are:
- Management mindset is very thrifty. Management has poor communication with employees. Customers are not served correctly. There are preferences on the part of some managers for some employees. Cashiers have not created a method for people to carry their Food at your tables is hot enough, which is not logical in a fast food center. Parking is very small. The company provides its employees with 3 types of hamburgers to choose one type daily, without considering that any of them could have a special diet.The store's air conditioning is very cold, creating physical consequences for customers and employees.
On the other hand, employee turnover is also high and many of them are not satisfied with the money they receive compared to the work they do. Therefore, the current organizational structure of this establishment is not adequate, indicating that there is a need for change through a Reengineering process.
- Problem formulation
Can the goodwill «McDonald's El Viñedo» solve its operational drawbacks through a Reengineering process?
III. goals
General: Demonstrate that the goodwill «McDonald's El Viñedo» can overcome its internal operational drawbacks through a Reengineering process.
Specific:
1) Identify the Reengineering process.
2) Analyze the organization and operation of the goodwill «McDonald's El Viñedo».
3) Determine the causes that lead to the goodwill «McDonald's El Viñedo» need to carry out a total restructuring.
4) Design a model of structural change applicable to the goodwill "McDonald's El Viñedo".
- Justification of the investigation
This research is carried out in order to demonstrate the effectiveness of the Dynamic Reengineering process in today's businesses, which increasingly have more competition among themselves and only the most innovative and highly competitive survive.
Administrators today must know the health of their company, this refers to taking into account how their business is going to try to avoid operational problems that hard affect their companies in the future. If a business has internal failures, although these are not noticed by customers, it affects the operation of the establishment, causing a host of dysfunctions that could cause a major organizational crisis within the company. This is why in the changing world of business, these small drawbacks should not exist, since it puts their future at stake.
- Temporal, spatial and content delimitation.
1.) Content delimitation: the project includes the Dynamic Reengineering in its entirety in the goodwill "" McDonald's El Viñedo ".
2.) Delimitation of space: the company is located in the El Viñedo Urbanization, Main Avenue. Valencia, edo. Carabobo, Venezuela.
3.) Temporal delimitation: the inconvenience of the company's organizational structure is a current problem taking into account that it only has two months working; therefore, the temporality of this work is specified in the first two months of 2000 (January and February). The criteria were taken from employees who have been working at the company since its inception.
- Limitations
In the goodwill "McDonald's El Viñedo" there is resistance to change, which is already pre-established, and they establish that their way of operating is the same worldwide. This could cause inconveniences when applying the project.
CHAPTER II
Binding Theoretical Universe
I.- Background
- "Reengineering as a system for transforming and improving companies": in this first semester project at the José Antonio Páez University, the authors propose to carry out the reengineering process, but in a very general way and without defining it at specific points, creating confusion and lack of information to those interested in carrying out this complex process in their companies. They simply dictate the steps to carry out this technique without giving examples of what should really be done and concisely where to go.
- «Influence of Reengineering on the improvement of the productivity of small and medium industry»: in this first semester project of the UJAP, it is proposed to demonstrate only theoretically the influence that reengineering has on small and medium industry but without specifying what what you really want to do. It is a well written thesis and excellent presentation, but it does not hinder the process of carrying out this project.
In conclusion, these two theses are not really developed projects, since being of the first semester, it is pure documentary research, there are no facts, statistics or evidence that what is proposed is actually feasible.
II.- Historical bases of reengineering
Michael Hammer is the originator and main expositor of the reengineering concept, and founder of the corresponding movement. He wrote a landmark study that appeared in the Harvard Business Review under the title "Reengineering Work: Don't Automate, Obliterate." He is President of Hammer and Company, a management education and consulting firm. He was named by Business Week as one of four outstanding management teachers in the 1990s; He acts as a lecturer and advisor to executive managers of the world's leading companies, and his reengineering seminars are attended by thousands of people annually. In short, he is considered the pioneer of the movement that we know today as reengineering.
Daniel Morris and Joel Brandon, partners at Morris, Tokarski, Brandon & Co., a Chicago-based management consulting firm specializing in business positioning and reengineering, and authors of the book: “Reengineering: How to Apply It Successfully in Businesses, »located at the forefront of the reengineering movement since that concept was first introduced, have over 20 years of executive and administrative experience in a wide range of industries. According to them: «today is the time for reengineering. Today it is one of the most debated topics in the office and factory environment in many countries "(Daniel Morris and Joel Brandon, 1994). His consulting activities have included operational reengineering, strategic and tactical planning, operational evaluation,project management and government policy making.
All of these authors have dealt extensively with a wide variety of business topics and have written numerous articles of great importance on the subject of reengineering. His previous collaborations include a series of video training courses for the firm Applied Learning, Inc. and the Information Continuun, as well as Relational Systems Development (McGraw-Hill) where they present a method for relating technology support. of the information with the business operation.
III.- Definition of Reengineering
To avoid the proliferation of new definitions of reengineering, it is best to limit the use of the term to redesigning business work processes and implementing new designs. It is an approach to planning and controlling change. If repositioning has been determined in advance, reengineering will have prepared all of its goals and its environment.
There are seven conditions that must be part of the reengineering process for it to come to a successful conclusion:
-Ability to guide the reengineering process according to a systematic and comprehensive methodology.
-Coordinated change administration for all business functions that are affected.
-Ability to evaluate, plan and implement change on a continuous basis.
-Ability to analyze the total impact of the proposed changes.
-Ability to visualize and simulate the proposed changes.
-Ability to visualize these models on a continuous basis.
IV.- The Reengineering process
Reengineering has a methodology that must be followed in order not to carry out an incomplete project. This process is made up of the following stages:
- Identify possible projects:
An important responsibility of the positioning team leader is to identify which potential improvements may give rise to reengineering projects. The group will find possibilities in its own continuous analysis and in the ideas of all its company employees. The head of change will receive suggestions from the top executives of the firm and even from the board of directors.
The product delivered at this stage is the initial evaluation of reengineering applications, together with a definition of the objectives of each effort, its specific requirements and an assessment of the nature of the process improvement effort (broad-based reengineering).
- Conduct initial impact analysis:
In order to achieve an initial understanding of reengineering requests, a simple impact analysis should be performed. Each project that passes the first stage will be considered with a strong potential for acceptance. These projects will be reviewed comparing them with the models of the current basic positioning guide, to determine their potential impact on the operation and the company.
An analysis will be made of the probable impact that the project will have on the work flow and organization of each department, especially the business operation processes, on business rules, on the support of information services and on the personal. This analysis is used at this stage to determine which projects warrant further study and which may proceed to the next stage. The elements delivered in this part of the work consist of a list of reengineering projects, which seem valuable, and the associated impact analyzes.
- Select the effort and define scope:
It is normal for the selection of reengineering projects to be based on benefits. However, benefits cannot be determined in traditional ways: cost recovery or elimination, and sales potential. For example, it is difficult to quantify the cash benefit associated with intangible factors such as improved interaction with clients who have problems or who need other forms of help. However, the initial impact analysis will help quantify some factors; in particular, it will make the cost estimates more accurate and give the initial forecast for the elements that will be dynamized during the process and work. However, these calculations will be tentative. In the early stages of reengineering, problems are analyzed, but benefits are found in solutions.Until such solutions are determined, any estimate of benefits will be speculated.
The most important delivered item produced in this stage will be a list of projects, selected from those that arise in stage 2, which are scheduled and executed. In addition, the end of the stage has the formally defined scope of each of these projects.
- Analyze the basic information of the business and the work process:
The technical work of the reengineering process begins with this stage. The first three were aimed at selecting the business area and defining the scope of the project. At this point, the indicated managers will have defined and approved the project limits. Activities include defining models, developing the necessary information, and analyzing workflow.
Although it may seem like a simple job, it is not because it involves scrutinizing policies, business rules, added values, profits, workflows, conceptual models of business processes, business functions, organizational structure, missions of the organizational unit, definitions work, production process and computer systems that are related to the process. Tracing interrelationships, quantifying models, and determining information requirements can be very complex activities. Lastly, the process of familiarizing the change team with the information gathered requires an intense effort. However, since this stage is the foundation of reengineering, the effort is worth it.
The detailed analysis of the processes in which reengineering will be applied is the basic element to be delivered at this stage. The work takes the positioning and data models to additional levels of detail and refines the data so that the problem areas and interrelationships are visible in detail. In addition, analysis of relationship diagrams and other supporting information will provide a full understanding of operations and how they really work. This knowledge is the basis for creating new designs.
- Define new alternative processes: simulate new workflows and new work processes:
At this stage new alternative processes are designed. This work includes solving the problems discovered in the previous stage and producing new models and new workflows. In addition, when appropriate, this stage can produce new designs for the organizational structure; therefore, there is a high probability that computational support will vary by modifying the tasks that support the workflow, to reflect the changes required at work.
This stage uses the information gathered and studied in the previous levels. At this point, the workflow and process analyzes developed in the previous stage are used to create processes and operation designs, and to simulate the new operation. These simulations will be used to determine the best design. There will be as many simulation scenarios as there are significant and different ways to do the required work. The final selection of a design alternative will be made in the next stage.
This stage will produce one or more detailed simulation scenarios that represent the new process designs. Designs include:
- Redesigning appropriate processes. Redesigning business functions, job tasks, workflows, and position descriptions. Designing extensions to computing and communications systems. Redesigning operations workflow. of the department. The creation of new rules and policies.
These models and associated information are created for each process and department affected by the effort.
- Assess the impact of costs and potential benefits of each alternative
At this point, one or more simulation scenarios of the new operation will have been developed, to which standard measurements will have been applied to help determine the level of improvement that can be expected. Costs and benefits must be specifically defined before making any recommendations.
For the most part, this stage uses standard cost-benefit analyzes. As most managers have lived with these studies throughout their careers, readers are assumed to have considerable knowledge of their performance and application. The following study will be aimed at considering aspects that are desired to illustrate or that are applied to reengineering efforts as a resource for the usual approach of a cost-benefit analysis.
The primary element delivered at this stage is a detailed analysis of the costs and benefits associated with the implementation and use of each simulation scenario of the new operation. The final product is a recommendation about the scenario to be implemented.
The approach used to select the best alternative will vary from company to company. Basically, the differences will be related to the corporate culture: each company will see in a different way the empowerment of action and / or decision to its employees, feeling good when it allows the personnel to make decisions depending on the level at which they authorize it. Regardless of the selection approach, choosing the best alternative will be related to benefits and costs. This is the biggest benefit, with the least impact and the best cost. In addition to these criteria, it is suggested to use a third measurement; This is the ability of the new design to make jobs easier and free staff from meaningless monotony. This improves loyalty, morale and, ultimately, performance.
The detailed cost-benefit implementation review, developed in the previous stage, will determine what important activities will be required to implement the alternative. This definition activity is the starting point of the implementation plan.
The element that stage 8 delivers is the migration plan. The other planning components that support it, such as new policies, organization charts, and job descriptions, are also prepared at this stage.
However, the most important delivered element is the new business process itself. At this point, the new process will be operational and will bring greater benefits to the company.
- Update the information and models of the basic positioning guide:
In this last stage, the updated models and positioning data are transcribed, both ready to be applied in the intended company.
V.- Definition of basic terms
- Quality: set of properties related to a certain thing or topic, which allows us to appreciate the best, in this case it is the scale of success in measuring superiority and excellence. Costs: amount given or paid for a good and for living expenses. In reunengineering it is one of the main reasons, since if the quality improves, the costs reduce.Company: house or mercantile or industrial company founded to undertake or carry out constructions, businesses or projects, integrated by the captain and work as factors of production. Structure: contexture and internal form of organization of a system that appears as a unit of stable reciprocal relations between its elements and that cannot be understood except in that mutual interaction.Any area in which buyers and sellers are in such close contact with each other that the prices that can be obtained Methodology: it is a description of the steps to be followed and the concepts to be used to achieve a pre-established goal or end. a universal component of human thought, they are always present and are not dangerous in themselves. The paradigm is changing and in this topic it is a simple element. Positioning: frame of reference for any corporate change since it determines the area where the processes must be applied and initiates all the activities necessary to do such work. Productivity: increase or decrease of the physical or financial returns originated in the variation of any of the factors that intervene in the production: work, technique, capital, etc. Redesign:analyze what has already been structured to create new techniques and structures in order to take advantage of the changes.
VI.- Hypothesis
«The goodwill« McDonald's El Viñedo »can overcome its operational drawbacks through a Reengineering process.»
VII.- Variable system
- Independent variable: Goodwill "McDonald's El Viñedo" is the independent variable because it is the part of the project that will always exist and does not depend on whether it is in poor condition or not, the company will continue to exist. Dependent variable: the possibility or not that operational problems could be solved through reengineering. Intervening variable: reengineering is the factor that intervenes in the process, because the company «McDonald's El Viñedo» and operational conflicts already existed and the Reengineering is the process that intervening will solve the problem.
CHAPTER III
Methodological aspects
I.- Research design
This investigation included both documentary or bibliographic design and field design, distributed in the following stages:
In the first stage, the bibliographic review was carried out, where the fundamental concepts for the correct application of Reengineering were investigated and more information to support the work was sought.
In the second stage, organizational behavior was studied and the causes of the operational drawbacks of the "McDonald's El Viñedo" goodwill were determined to verify whether or not it was necessary to apply a process as complex as that of Reengineering.
In the third stage, the radical change model for the worked goodwill was designed, fulfilling the specific objectives previously established.
In the fourth and last stage, the project was drafted in writing.
II.- Type of investigation
Initially it is a documentary or bibliographic investigation. It is also a field investigation because the data would be obtained directly in reality from the point of work, and it is a descriptive investigation with data taken from a reality that has been described, which is the unit of analysis « McDonald's El Viñedo »and at the same time quantitative since the information obtained would be explained in percentage terms.
III.- Analysis unit
The unit of analysis is the goodwill "McDonald's El Viñedo", which is structured as follows:
- 71 employees, organized in 4 shifts. 3 management departments, which are: one of Human Resources, one of Administration and one Operational. It has 9 managers: 5 who are in charge of the operational part of the store (managers) and in turn the administrative part. 1 marketing manager and head of hostess section. 1 human resources manager. 1 training manager and total administration manager.
IV.- Population and sample
The population in this case are the employees of the goodwill «McDonald's El Viñedo», which add up to a total of 71 employees and 9 managers, and represent the population because they are the elements to be analyzed and it depends on them the reengineering process yields a positive result. The number of employees that would be surveyed (sample) is 28 employees (representing 40% of the total of these) and 3 managers (representing 33% of the population) that are equivalent to a night shift in said establishment.
V.- Applied instruments
The manager in charge of McDonald's was interviewed, which consisted of the following questions:
- How many employees work at McDonald's El Viñedo? "They work a total of 80, in different shifts." How is the administrative part of the store structured? "It is structured in three departments, one of human resources, one of administration and one operational." How many managers are there and what is each one responsible for? «There are 9 managers. 5 who are responsible for the operational part of the store (managers) and in turn for the administrative part. 1 marketing manager and head of hostess section. 1 human resources manager. 1 training manager and total administration manager. »Would you like to apply the Dynamic Reengineering process in the store? "I would not like it, since the way in which it operates here is the same as that which operates worldwide" Are there possibilities to expand parking? «Yes, you can, but you have to buy the land.Not yet planned.
VI.- Analysis of applied instruments
Unfortunately, due to the short period of time in which this project was developed, the instruments applied by the researchers could not be analyzed by them.
VII.- Report
The authors of the book "Reengineering: How to Apply It Successfully in Business," clarify that Dynamic Reengineering in Business employs a change management approach called positioning, and which provides a broad structure for managing change in business.. But this is only one of the three steps to follow to comply with the dynamic reengineering process.
On the other hand, to understand more about the reengineering process, there is the following:
POSITIONING: Frame of reference for all corporate change:
- Change strategy Change data (compilation and management) Coordination of change across the company Change environment / paradigm Current business models Change project identification
PROJECT ADMINISTRATION: Traditional methods:
- Resources and team planning Presentation and planning of project reports
REENGINEERING: The methodology of change:
- Analyze the initial impact Define the scope of the project Identify functions and processes Define alternatives Evaluate the impacts of each alternative Select the best alternative Implement Update the models
Due to the parameters to be followed in this project, we will only work with the corporate positioning of the goodwill «McDonald's El Viñedo», this implies that the level of positioning in this model represents the creation and use of a series of techniques, models and concepts that form the basis for supporting change. This basis implies the definition of the corporate goals of the company, its position in the market and its attitude to change rapidly in the face of opportunities, pressures of change or regulation.
The main goals are (in addition to streamlining the operating method and increasing revenue) to improve internal operational quality and improve customer orientation. Each of these goals is defined as the primary objective in this reengineering project.
- Improve internal operational quality: this represents increasing the value of quality in these two sectors, and reducing costs, preventing waste. The improvement in quality avoids part of the resistance to the process, originated in the fear of staff reductions.
Quality improvement in any process is aimed at improving the "target" to be modified. In addition, it implies the ability to obtain consistent results through the application of increasingly higher parameters, this means that employees must keep in mind to always be better and perform the trades together, as long as this task requires it. Continuous compliance with standard work methods in all operational activities constitutes the best guarantee that quality is rising.
When reengineering is applied in a company, it is important to work with the affected people and retrain those who will change positions. These people to greater knowledge of their work and its process will have greater probability of finding ways to improve it. The worked goodwill lacks this point, taking into account that this establishment has a training manager at its disposal, who should be in charge of keeping its personnel prepared regardless of the time they have working and eliminating the preferences that have with some employees, since this decreases the work motivation of the rest of the employees. This is achieved by establishing relationships between workers in general through communication regardless of the position held and leaving aside the competition between them,since they all fight for the same goal: to make the establishment an unbeatable workplace.
On the other hand, management has to give more importance to the business they manage, trying to improve their labor institution each time. This implies that the expenses made in the company are necessary, as long as they are not made on a whim or idleness. In a workplace where so many people circulate, you should never miss such essential things, counting from a piece of chicken or meat to toilet paper in the bathroom. This is why the store's purchase planning must be more complete, so that in the future there will be no operational inconveniences of this type, taking into account that there have been occasions when a good percentage of the menu was not available to customers. for lack of ingredients. Therefore, such a thrifty mindset by management could bring problems in the future.
- Improve customer orientation: it is clear that in any commercial entity the customer is the King, since it is he who we are interested in pleasing, in order to visit us again in the future. It is therefore necessary that our attention to them be special without taking into account the state of mind in which we find ourselves.
Customers are not robots that we dispatch quickly just to get out of trouble. It is advisable to be dynamic and effective in serving the client, this includes doing it in a short time, but in those few seconds in which the service is provided, the employee must show interest and make suggestions so that the client has more confidence in what you ask for. You have to remember how valuable these are to the establishment.
On the other hand, employees working as cashiers should guide customers on how to get to their tables as quickly as possible, since customers who remain in line usually hinder the passage of those who already have their food served.
End of Project: Can there be anything in business as satisfactory as completing a reengineering project? Not only is the business more competitive, the highest improvement a company can experience, but a great sense of participation and accomplishment is achieved. Also, there is a feeling that everyone knows more about the company and what makes it work.
CHAPTER IV
Conclusions and recommendations
En el mundo actual de los negocios, los cambios radicales son sumamente esenciales para atraer al público consumidor y así maximizar el beneficio de la empresa en cuestión. Esto significa que las empresas hoy día dependen de estos cambios y no se pueden quedar estancados en viejas formas de venta, ni mucho menos, viejos equipos de funcionamiento. Las empresas DEBEN confiar en procesos como la reingeniería para ajustarse al mundo real en el cual vivimos, de otra manera la vida útil de un negocio que tiene paradigmas en contra de cambios radicales va a ser muy corta.
Business managers cannot continue to be carried away by higher orders, they must act and give opinions and / or suggestions to those who are at higher levels than these. The role of a manager in a business is to get the most out of her clients, but this could not be possible if some risks were not taken to apply long-distance processes such as reengineering.
Reengineering should always be used from a systematic approach to redesign business processes. Furthermore, this methodology should always start with the elaboration of detailed diagrams of the current business process.
Reengineering is at the same time the fundamental and last tool for change, it directs the business process, an instrument for carrying out work with people or employees. In its present state, it helps to adjust businesses from the old industrial paradigm to a new one of service and information. In the future, you will continue to move the business from one paradigm to the next. When used, reengineering itself makes several paradigmatic changes. Business is going through one of them, but at least one more is looming on the horizon: the second paradigm shift that uses continuous change to achieve competitive advantage.
Business opportunities will continue to grow if it is taken into account that in one way or another, the relationship between government and industry will improve everywhere; But the businesses that will earn the most will be those that can assimilate the latest technology and take advantage of opportunities with the least delay. It will be the businesses that prepare themselves to change, In short, our general recommendation to the administrative staff of today's companies is not to be afraid of constantly changing, since this is the basis of success and has been verified by companies such as Taco Bell, Bell Atlantic, etc., that These are companies that currently have much higher profit levels than they had 10 years ago, and both applied Reengineering and have used it to this day.
BIBLIOGRAPHY
MORRIS, Daniel. Brandon, Joel. "Reengineering: How to apply it successfully in business". McGraw Hill Interamericana. Santa Fé de Bogota, Colombia. 1994.
Business Administration Project
Key words: Application of Reengineering, business administration, business, operational problems, positioning, quality, radical change, restructuring, problems, causes, problem solving, organizational structure, rethinking, operational organization
STUDIO UNO VALENCIA CA
Data of the authors
José M. Juan. Age: 18 years.
Email: [email protected]
Evelyn Hernández. Age: 21 years
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