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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?
slide6

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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