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Business Process Reengineering. Example Division of Work. 1776 Adam Smith: The Wealth of Nations Example: producing needles. without division of work: 1 worker all performings result: 20 needles/day 20 needles/worker. with division of work: 10 workers 2 to 3 performings each

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Example division of work
Example Division of Work

  • 1776 Adam Smith: The Wealth of Nations

  • Example: producing needles

  • without division of work:

    • 1 worker

    • all performings

  • result:

  • 20 needles/day

  • 20 needles/worker

  • with division of work:

    • 10 workers

    • 2 to 3 performings each

  • result:

  • 48000 needles/day

  • 4800 needles/worker

Comparison in productivity:

With division of work increasing by factor 240


Hypothesis of division of work
Hypothesis of Division of Work

  • Productivity rises with increasing division of work

Productivity

Division of Work

  • Results of Division of Work:

  • increasing dependencies

  • increasing complexity


Limits in division of work

Productivity

Division of Work

Limits in Division of Work

  • Co-ordination

  • Technology

  • People


How to start organising

Useful Division of Work

How to Start Organising

  • Why does a company have to organise?

General task

Multipersonal completion of the general task

Different tasks

Division of Work

  • Which Division of Work (organisational structure) does

  • a company have to choose?


Yesterday:

Structure Follows Strategy

Today:

Structure Follows Process Follows Strategy


What we have inherited
What We Have Inherited

Themes: specialisation of labour, hierarchical management,

task efficiency, control

Consequence: fragmentation







Success of business process reengineering projects

44%

38%

29%

27%

24%

23%

15%

15%

Cut costs

Increased

revenue

Cut cycle

times

Increased

productivity

American companies

European companies

Success of “Business Process Reengineering”-Projects


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