Reengineering of materials management system: A case study

A business process reengineering (BPR) project relating to the materials ma nagement function of a cement manufacturing plant is presented in this pape r. The BPR project evolved out of an organisation development (OD) interven tion initiative. Such an intervention aimed at improving value innovation c apability of materials management professionals of a large cement manufactu ring plant in India. The proposition here is that the value metrics relate to inside-in value innovations in order to deliver inside-out value to the customers in the face of fierce competition in Indian Cement industry. Mate rials of all types used in a cement plant constitute 60-70% of the total co st and hence the effective operations of procurement and inventory are the critical success factors for strategic value innovations and thereby compet itiveness. The primary emphasis in this project was on learning and impleme ntation, by creating an urgency for instilling responsible leadership and b uilding organic partnership through knowledge networking, (C) 2001 Elsevier Science B.V. All rights reserved.