Reengineering

In: Business and Management

Submitted By momofmany
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Reengineering
Reengineering is defined as the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality, service, and speed. As an engineering discipline, reengineering can be applied to any process in manufacturing and service businesses, education, and the government. (F. Robert Jacobs) When a company is interested in reengineering, they usually don’t take into consideration the people factor and are only interested in “what is in it for us”. Many people usually lose their jobs to technology. This is done in the hope of saving money and gaining a larger profit margin.
One company who did this is Southwest Airlines. Some of the strategies they used when reengineering were considered in hopes of lowering fares by doing a fee-based early check-in for customers who wanted to be the first to board the plane and choose a seat. The next thing they looked at was outsourcing their maintenance. This helped them reduce the costs for inventory and staff. Many competitors still do their own maintenance. The other thing they did was to avoid expanding too quickly and cut back on less profitable flights. They were continually evaluating their flights to see how they were doing and would eliminate or add fights according to the market. By reducing spending by reducing staff and asking for voluntary retirement they were able to reduce their overhead. They implemented did ticketless systems and a revenue accounting system to improve customer service. In-order to reduce spending and lower fuel costs, they used swaps, collars, and call options and call spreads. (Landahl, 1999-2013) This ended up being a very good strategy for Southwest to use and helped them stay in the Airline business and become a contender in the market.
Reengineering is defined as “the fundamental…...

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