How does reengineering sustain economy? The case of a paper industry in a developing country

Abstract

Madagascar has a paper mill industry that is not competitive with regional paper industries which sell on the Malagasy market. Lack of quality process and product quality disadvantages the paper mill industrypsilas products. Non reliability of production capacity and under utilization are factors that decrease the speed of delivery. Its varieties of product are very limited compared to the local market needs. The objectives of study are to improve dramatically the paper industrypsilas performance in production and competitiveness. Reengineering methodology will be utilized. Reengineering is "the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed". Study takes place on the paper transformation unit or PTU process of a paper mill industry. Outputs of the PTU are observed and analyzed. The process is then reengineered and a new design based on new organization of process is obtained. When applying reengineering, some dramatic improvement in the speed of delivery, quality, flexibility and dependability are obtained. Reengineering sustains paper industry by restarting its competitiveness in the paper industry sector, helping to sustain the economy.