1997 Volume 5 Issue 2 Pages 63-81
Reengineering proposed by M. Hammer and J. Champy is noteworthy right now for the revolution of indirect work division in a company by introducing advanced IT (Information Technologies). However, it is not easy to apply directly to Japanese companies. Although dramatic improvements of business performance may be expected by the reinvention, it is considered a high risk endeavor.
In this case study, reengineering is regarded as a process innovation by information technology, and applied to practical pre-production processes for material processing,welding, machining and assembling in Industrial Machinery Manufacturer, Komatsu Ltd. A project team was established in Komatsu Ltd. and the conventional process flow has been analyzed by the deductive and inductive method. A moderate, middle up activity was important. The conventional duplicated processes were rearranged. And also, the new processes, which were possible for practical operation by using advanced information technology, could eliminate some conventional processes. For instance, cost tables as a database in computer network was required for more efficient cost estimation process. A customized CAD (Computer Aided Design) system was necessary for the management and improvement of drawing. As a result, drastic cost reduction especially for indirect work could be expected.
