The target of diploma work was to aply reengineering to the manufacturing process in selected woodworking bussines and then determine what impact it has on the performance of the business. The theoretical part of the thesis deals with the theoretical principles of reengineering, methods of process reengineering and performance of business processes. The practical part was focused on company characteristics, Hammer´s and Champy´s method and evaluation of the impact of reengineering to business performance through indicators such as return, activity, liquidity, Cash Flow and economic added value.