XEROX NPP BPR CASE

Abhijeet Dash UM14001

Abhinaba De UM14002

Abhineet Sudhendra UM14003

Abinash Mallick UM14004

Abul Zaidi UM14005

Aditi Sahu UM14006

PROBLEM IDENTIFICATION

• During the early phase of the year 1994, Xerox was spending about 4.3 billion dollars a year on Non-Production Procurement

• Non-Production Procurement is responsible for supplies other than those used in actual production of copying machines

• Xerox realized that the redesign of this process represented a major

• opportunity to save money

BUSINESS PROCESS REENGINEERING

• Xerox adopted a Business Process Reengineering

method to address the NPP problem - analyze and

study the existing process and redesign the process

to improve performance by eliminating redundancy

• Xerox formed a cross functional BPR team

consisting of managers, supervisors and clerical

personnel from every group involved in the non-

production procurement

• This team was made responsible for analyzing the

functioning of each procurement group and identify

the problem

THE AS-IS PROCESS MODEL

Multiple Groups

• Different groups existed for procuring different materials like furniture, stationery etc.

Multiple activities/ Sub-Processes

• Hundreds of similar non-value adding activities for each group.

Multiple Supplier Contracts

• Each group had many contracts with numerous suppliers to supply at fixed rates.

Emergency and Rush Orders

• Specialist group handled all emergency and rush orders.

No automation

• Lack of automation led to heavy paperwork.

Process Analysis

Internal

An internal analysis was undertaken to get

to know which processes were in need

of reengineering

External

An external analysis was conducted with the help of Consultants to get an idea of best practices in

other industries

A process flow-plan was created that described

the all activities and identify non value

addition processes

INVOLVEMENT OF INFORMATION SYSTEMS

They brought in an IT team for a software systemneeded to support the new process

The IT team simulated the redesigned modelsfor a detailed cost analysis and was able tomake the sub-process much more efficient

This IT team also automated all the processesinvolved to eliminate the paper work

SHOULD MODEL

• The hundreds of activities comprising numerous sub-processes were reduced to few dozens

of activities under three major sub-process by eliminating redundant activities.

• They zeroed down to four major suppliers from numerous small ones.

• Emergency and rush orders were delegated to departmental managers. They were provided

with credit cards with established limits for this. With this they eliminated unnecessary

bureaucracy.

• They tied up with American Express to get reports of credit card usage which eliminated the

need of a special software to monitor small purchases.

• The entire process was now handled online with a new NPP software which removed a lot of

paperwork.

P1

Rush

Order

S1 S2

Pn

Rush

Order

Sn Sn

For multiple

sub-businesses

Existing Offline Model

NPP

P1 P2 P3

Rush

Order

Credit

Cards

Automated

Report

Yes

No

Yes

No

Pool of 4 Major Suppliers

New Online Model

Yes

No

Process Transformation

THANK YOU