Pepsi Cola Ltd

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CASE STUDY
Title: Pepsi-Cola Manufacturing International Ltd.
Azwan Shah bin Aminuddin

1. Identify and discuss the business process redesign principles that have been applied by the BR project team.

In business process redesign, the organization need to be have a guidance or principles to make sure that their redesign process is on the right track. In Pepsi –Cola Manufacturing International Ltd (PCMIL), there are based on several principles to ensure they are on the right track on redesign process. The first principles is involvement breed acceptance, which means in moving to redesign process, the employees within the organization has become a part in the BPR team, to let them know process from the beginning, the problems face and utilization of the resources. In other words, people must own before they buy, that represents affected party in redesign process would not accept the changes unless they are having the clear vision and also experienced the intended redesign process. As seen in PCMIL, the entire organization is become as a part of the BR team, which is involved employees from the all levels, such as IT department and employees from the headquarters. Second principles being implemented in redesign process in PCMIL is people believe what you do, no what you say. To gain contribution from the employees, the top management need to show their enthusiasms in redesign process, to demonstrate they are serious in the redesign process. Through the modeling behavior showed by the top management, the employees will be eager to join them in making the redesign process success. As in Pepsi-Cola Manufacturing International Ltd (PCMIL), the full support contributed by the top management showed that they are taking the redesign process as an serious event, which supporting by the team from the headquarters. With this role-model, employees will believe the vision communicated to them and will working together with the BR teams towards the vision. Progress in not linear, nor it smooth also the principle used in PCMIL redesign process, which means transforming process is logically follows it predecessor and each module of change is orderly and functions independently on other changes. Redesign process required systematic, one step at one time changes to ensure that the redesign process in on the right track. As in PCMIL, the first steps in redesign process is selecting the software to support the redesign process, then transform the process in a form of centralized, and also mapped out the process that will be integrate to make sure they are producing the desired output.

2. What were the warning signs of trouble that triggered the need for reengineering? Discuss.

Before the initiative of redesign being communicated by the top management, they can see the warning sign that indicate them to change. As for Pepsi-Cola Manufacturing International Ltd., bottleneck and disconnects in critical cross-organizational process telling them that they are need to redesign their work process. In PCMIL, there are several department that operating based on their function, which are moving towards the mutual goal, because of they are isolated with other departments, they are operating alone without having contact with other department that lead to miscommunication in achieving the goals. As seen in PCMIL, inconsistent and gaps in process knowledge documentation that cause problem in auditing process stimulate the PCMIL to reengineer their process. Besides that elusiveness of accountability also sign for the PCMIL to redesign their process. As mentioned earlier, PCMIL consist of several departments which are working towards mutual goal, but when the auditing process being held, it is difficult for the auditor to identify which department is responsible for each process, because of improper documentation of the process knowledge. The...
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