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652 Topic 6 - Process Improvement

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25 views21 pages

652 Topic 6 - Process Improvement

Uploaded by

samuel sam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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PROCESS

IMPROVEMENT
BUSINESS PROCESS REDESIGN
CHAPTER 6

1
STRATEGIES FOR
CHANGE
A. Process Reengineering – the
fundamental rethinking and radical
redesign of processes to improve
performance dramatically in terms of
cost, quality, service and speed.
• 6 elements:
1. Critical Process – emphasize on core
business and essential processes
2. Strong Leadership – managers help
overcome resistance, set and monitor
key performance objectives for the
process, create sense of urgency

2
STRATEGIES FOR CHANGE
3. Cross-functional Teams – consist of
members from each functional area
affected by the process change, BPR
works best when there are high-
involvement workplaces, self-managing
teams, employee empowerment, top-
down (performance targets) and bottom-
up (deciding how to achieve the targets)
initiatives
4. Information Technology – a primary
enabler of process reengineering, who
needs information network, computer
technology, the information, when and
where
3
STRATEGIES FOR CHANGE
5. Clean-slate Philosophy – starting the way
the customer wants to deal with the
company, customer orientation
6. Process Analysis – team members must
understand the current process: what
it does, how well it performs and what
factors affect it

B. Process Improvement – the systematic


study of the activities and flow of each
process to improve it.

4
A SYSTEMATIC
APPROACH
• Process Analysis – the documentation
and detailed understanding of how work
is performed and how it can be
redesigned.
IDENTIFY DEFINE
OPPORTUNITIES SCOPE
1 2

IMPLEMENT DOCUMENT
CHANGES PROCESS
6 3

REDESIGN EVALUATE
PROCESS PERFORMANCE
5 4
5
Process Analysis
1. Identify Opportunities
By:
• Core process – supplier relationship, new
service/product, order fulfillment, customer
relationship
• Strategic issue
• Employee
2.Define Scope
• Establish the boundaries of the process to be
analysis
3. Document Process
• By developing the list of the process by using
flowchart, blueprint or process chart 6
Process Analysis
4.Evaluate Performance
- Develop performance
measure
• Quality
• Customer satisfaction
• Time
• Cost
• Error
• Safety
• Environment
• flexibility
7
Process Analysis
5. Redesign Process
• After performance gap analysis, the new
design should be documented as proposed
• Shift from analytical thinking to creative
thinking
• Generating a long list of possible idea for
possible improvement

6. Implement Changes
• Once the process is approved, it must be
implement
• Commitment must be developed and relevant
resources should be available

8
DOCUMENTING THE
PROCESS
• Flowcharts – a diagram that traces the
flow of information, customers,
equipment, or materials through the
various steps of a process.

9
PROCESS CHART
• Flow Process Chart – document used in
systems analysis that is useful for identifying
each step in a specific work process, using
the following categories: operation,
transportation, inspection, delay, and
storage.
• 5 Symbols:
1. Operations – Changing the physical or
chemical characteristics of an object.
2. Transportation – The movement of an object
from one location to another.
3. Inspection – Verifying data or checking an
object.
4. Delay – A situation that causes the next step
in the process to be delayed.
5. Storage – Storing and/or protecting an object.
10
Process Chart Example

SUBJECT: Request tool purchase


Dist (ft) Time (min) Symbol Description
D Write order
D On desk
75  D To buyer
D Examine

 = Operation;  = Transport;  = Inspect;


D = Delay;  = Storage
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ASSIGNMENT 1(30 MARKS)
• 1. Identify ONE business process. Illustrate
the process in AS IS / Current Flow Chart.
• 2. Recommend improvement for the process
identify above. Illustrate Desired /
Improved / TO BE Flow Chart.
• 3. Develop Fishbone Diagram / Ishikawa to
show problems identify in (1).
– 1. Flow chart – As Is / Current
– 2. Flow Chart – To Be / Improved / Desired
– 3. Fishbone Diagram / Ishikawa Diagram

Submit before or on ____________________


17
Fishbone Diagram

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