Business Process Improvement - Back to Basics

1. Business Process Improvement Management Tools & Techniques Anand Subramaniam

4. Process & System

7. Continuous Flow Process One person’s or one’s function’s output is another’s input

8. Process Hierarchy Order Process Inventory Process Shipping Process Answer Phone Take Order Take Order Send paper work to Warehouse Send details- Warehouse Procedures Order Management Process Process WORKDAILY.R PT Operator  Print out report  Place in interoffice memo – attn: Warehouse - Inventory  Place in outgoing box 3 Send paper work to Warehouse Operator 2 Take order Operator 1 Answer phone Forms/Reports Responsibility Description Procedure Step Effective Date: 10/06/2009 Version 1.0 SOP: Order Process Activities Sub Process

10. Example - Measures & Targets Vision & Mission What activities are we doing to reach our targets? Employee Process Financial Customer Strategic Goals Measures Targets Initiative What do we have to do to get there? How do we know if we are achieving our goals? What will we measure our progress against?

11. Process & Outcomes Outcomes How much to improve? Process How to improve?

12. Business Process Improvement (BPI)

14. Link – Business Process to Strategy

16. Business Process Design Business Strategy Core Process Prepare Management Commitment Sponsorship Align with Strategic Goals Team Organisation Current Process – As~Is Review Current Process Review Key Performance Data Identify Process Customers & their Needs Future Process To~Be Vision, Scope Targets for Future Process Benchmark Best practice Identify value & non value add activities Technical Change Assess Technical Implication of Process Improvement Change Requirements Design, build, test, re-test, train, approve & deploy Human Change Assess Competency / Capabilities Human Implication of Change Requirements Design, build, test, re-test, train, approve & deploy Implement Overall To~Be Process rollout plan Risk / Issue Resolution Evaluation / Integration of People, Process & Systems Track & Evaluate Review Process ownership Stakeholder feedback Monitor & Adjust Process Conduct Continuous Training & Support Programs – SLA / OLA

19. Tools & Techniques

26. Example - Check Sheet Reasons for late work orders Name: (if applicable) Location: North County Dates: 3 ~ 7 June, 2009 3/06 4/06 5/06 6/06 7/06 Total Rainy weather II I 3 Forgot to schedule I IIII IIII III IIII III 20 Crews on higher priority work IIII I IIII IIII III IIII IIII III 30 Materials not available I I I 3 Customer facility not ready I I II 4 Total 9 11 13 11 16 60

29. Example - Process Model Application Receives application, plans, fees and date stamps Enters application in database & routes plan to reviewer Reviews plans Application complete? Contacts customer for additional information Complete information submitted? Contacts customer for information No Enters comments in database. Notifies customer Yes End Coordinator Reviewer Entity Resource Activity No Yes Entity – The item being processed Activity – Step in a process Resource – Agent who performs an activity

32. Example - Cause & Effect Wait times at Intake are long Machines Method Manpower Environment Computer slow No writing pens Too many at once Lunch morning Form not filled in Did not bring Not prepared No signs Only one station No chairs Slow Not enough staff Lack of training Poor motivation All DL services begin at intake line

34. Example - Run Charts 10 15 20 25 30 35 40 45 50 55 60 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec # of Work Orders

36. Example - Pareto Chart 0 40 45 35 30 25 20 15 5 10 50 60 55 100 % 50 % Frequency Reasons Crew on high priority Forgot to Schedule Facility not ready Rainy Weather Materials not found

37. Measures & Metrics

42. Process Maturity

44. Example – Process Maturity