Some immediate results that can be expected from this reengineering process include:
- Improved process (often 50% -100%).
- Drastic cost reduction.
- Speed, quality and services can be improved dramatically. Some concrete examples can be given here, among others:
- Ford Motor Company.
Reengineering is done by improving the invoice handling process so that the process can be done by a workforce of about 75% smaller than the original.
- Financial information more accurate.
- IBM Credit Corporation.
- Credit issuance process initially takes 2 weeks, with reengineering dapata be repaired only takes 4 hours.
- Productivity increased 100-fold.
- Taco Bell.
- Is a Mexican-American restaurant chain, a subsidiary of PepsiCo who have difficulty in 1983.
- They do reengineering in a way to reconfigure the restaurant-restaurant.
- Peak capacitynya for top unit has risen from $ 400 per hour to $ 1,500 per hour.
- Price can be reduced so that now the average price of 25% percent cheaper than the price 10 years ago.
- Hallmark Cards Inc..
Around 1989 did reengineering in nearly all aspects of its operations with the main objective to reduce lead time since detected a request to market the availability of the card mentioned in the shelves of the retailers.
They do not because the reengineering competition will face deadly danger, but because of a view that far ahead just to eliminate those hazards.
For Hallmark, engineering is not just a project but it has been a way of life.
Since doing the program restructuring / reengineering, Garuda Indonesia to obtain an operating profit of Rp 486 billion during Semester-I/1999.
During Semester -I/1998 still suffered a loss of Rp 1.4 trillion and Rp Semester-II/1998 1.1 trillion loss.
Load factor (level of fullness) rose from 61.6% during the first half-II/1998 to 68.6% in Semester-I/1999.
However it can also be said that only a few (about 20%) can be successfully reengineering for companies that are new and weak. Reengineering has a great opportunity to be successful when viewed as an effort to develop and create new competitive and not primarily to reduce costs and reduce the amount of labor. If the latter is the goal and a major factor in reengineering, it will be difficult to get the support of the employees while support is very important and very necessary. For reengineering, there are costs to be paid and this should be recognized from the beginning. Each individual and part must be willing to sacrifice one way or another. The necessary costs incurred anyway for consultants, retraining, research and analysis and pelaksaanan new process. Companies should determine and meninbang, wondering which one is bigger, between what can be achieved and the sacrifices and costs that must be borne.