11.1  Caterpillar: Team-based Reengineering for process improvement
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The use of improvement teams is described in Chapter 11 as a very common approach to utilizing the work force resource to its greatest potential.  Most quality and productivity improvement approaches utilize project teams as a way to maximize results.  Reengineering, like other improvement frameworks, often incorporates project teams who seek process improvement with variety of tools and techniques. Quite often, the teams focus on processes that customers would never be exposed to, in order reduce costs and increase competitiveness.  Caterpillar chose just such a project for their re-engineering team project.  This video essay chronicles their experience.


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The reengineering effort at Caterpillar required a merging of operations and information technology to enhance timeliness and speed up processes.  This link between operations and information technology is not at all unusual and it is frequently a way to speed up processes.  Information flow, in many cases, takes as much time as any other activity. 


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Reengineering strives to break down departmental boundaries, making transitions between departments more effective.  Information transfer, in particular, is notoriously slow when it must cross departmental boundaries.  The ability of a project team to attack this problem and finish with successful results is enhanced by the fact that team members come from different departments.


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When incorporating project teams, selection of a project should be based on several criteria, including the chances for a successful result.  This is particularly important for the first project a team is faced with.  Nothing creates more doubt about the approach than a failure. In addition to the likelihood of success, there should also be a substantial benefit to the organization if the team is successful.  Team members need to understand what that benefit is.  Team members should come from any department involved in the process being improved. In order to work effectively, all team members must be skilled in the tools and techniques being used by the team.  


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The caterpillar team followed the traditional business process reengineering steps discussed in.  Following project selection, their second step was to understand the current situation. They used a tool called process mapping, which is a type of flow charting procedure, to aid in their understanding of the process.


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In the third step, process improvement, they utilized techniques to break the large problem into smaller pieces.  Using this approach, smaller problems could be attacked.


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In the fourth step, process verification, the proposed improvements were analyzed for potential problems.  Once verified, they were presented to management for approval.


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The final step, process implementation, required that the changes be made and the results monitored. The evaluation is based on initial goals and on customer evaluation.


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When compared to the goals, the outcomes can often be far better than ever expected.

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