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Improving the Business Processes
- 1. A presentation by: F. Michael Babineaux, CPSM. C.P.M. President/CEO Babineaux Educational Services and Training, Inc. www.BESTraining.com 901.853.0539 Business Process Improvement – Today’s Source of Competitive Advantage How Supply Management can Tap the Power of Process Improvement
- 2. How Supply Management can Tap the Power of Business Process Improvements to Reduce Cost
- 4. Why’s Business Process Improvement Important Now?
- 10. Business Processes - Thirty Thousand foot level Customer Requirements NEW PRODUCT INTRODUCTION ORDER FULFILLMENT Design/Develop Market Demand Operations Supply Supply Base Supply Base Customer Satisfaction Corporate Strategy Infrastructure, People, and Culture Forecasting Supply/Demand Planning Base business philosophy Getting and keeping customers Staying on the leading edge
- 14. Business Process Levels Where do you start? Getting & Keeping Customers Order Fulfillment Supply Supplier Selection Source Identification Source Identification Supplier Selection Supply Order Fulfillment Getting & Keeping Customers
- 19. Performance Management Required Process Capabilities PROCESS PERFORMANCE TARGETS CUSTOMER REQUIREMENTS REQUIRED PROCESS CAPACITY REQUIRED PROCESS CAPABILITIES
- 23. Performance Management Required Process Capacity PROCESS PERFORMANCE TARGETS CUSTOMER REQUIREMENTS REQUIRED PROCESS CAPACITY REQUIRED PROCESS CAPABILITIES
- 28. “ Bottlenecks” Limit System Capacity If Customer requirements are 210 units per day, is the process capacity adequate? Step 1 Step 2 Step 3 Capacity: 250 units/day Capacity: 105 units/day Capacity: 300 units/day
- 29. Parallel Operations Step 1 Step 2a Step 3 Capacity: 250 units/day Capacity (each): 105 units/day Capacity: 300 units/day Step 2b -210 90 -210 40
- 35. Flowcharts A graphical model of an existing process or proposed new process that uses simple symbols, lines, and words to pictorially display the activities and their sequence in a process. Words
- 37. Block Diagram: Stores Requisition Process User completes requisition Requisition waits in internal mail Deliver requisition to Stores Requisition waits in Stores in-box Clerk enters order If in stock, pick order Check order for correctness File the requisition Deliver order to user
- 38. Flow Process Chart: Stores Requisition Process Stores Requisition: Details of method Operation Transport Inspection Delay Storage 1. User completes requisition 2. Wait in internal mail 3. Deliver requisition to Stores 4. Wait in Stores in-box 5. Clerk enters order 6. If in stock, pick order 7. Check order 8. File requisition 9. Deliver to user
- 40. Standard ANSI Process Flow Chart Activity Types Operation Transport Storage Decision Inspection/ Approval Delay
- 41. ANSI Process Flow Chart: Stores Requisition Process User Completes Requisition Wait in Internal Mail Deliver to Stores Wait in Stores In-Box Clerk Enters Order In Stock? Notify User N Y Pick Order File Requisition Check Order Deliver to User Operation Delay Delay Transport Operation Operation Inspection Storage Transport
- 43. Process Flow Chart: Stores Requisition User Completes Requisition Wait in Internal Mail ave: 2 hrs (0-4 hrs) Deliver to Stores ave: 1 hr (0.5-1.5 hrs) Wait in Stores In-Box ave: 1 hr (0-2 hrs) Clerk Enters Order In Stock? Notify User N Y Pick Order File Requisition (0.1 hrs) Check Order (0.1 hrs) Deliver to User ave: 2 hrs (1-3 hrs) (0.1 hrs) ave: 0.4 hrs (0.2 - 1.5 hrs)
- 57. Process Improvement Process Five steps and a map Map process And analyze data Develop Process Knowledge Select Process Improvement targets
- 65. Process Improvement Process Five steps and a map Change Process Map process And analyze data Develop Process Knowledge Select Process Improvement targets
- 68. Process Improvement Process Five steps and a map Controls & Measurements Change Process Map process And analyze data Develop Process Knowledge Select Process Improvement targets
- 69. Process Improvement Process Five steps and a map Map process And analyze data Develop Process Knowledge Change Process Improved Performance Select Process Improvement targets Controls & Measurements Satisfied Customers Shareholders Etc. Inputs Activities Outputs
Hinweis der Redaktion
- 1st bullet: Define what “logically related activities” mean (a logically related activity to getting an invoice paid would be for someone to receive the product, a non related activity would be for someone in the warehouse to put the product on the shelf). 2nd bullet: We want to look at how we do things----how we create value. And……. We want to look at the steps involved, the resources being used and how good of a job we’re doing of that. (Harrington, 1991, book “Business Process Improvement”)
- Bullet #: 1. Simple layout and snapshot view 2. Allows you to immediately see job leveling opportunities 3. Employees can use it as a roadmap to avoid missed steps in a process, etc.
- This is another way of looking at the different major processes that must take place in a company. It captures key activities and processes. The first three are necessary for the base business/philosophy The next is necessary for getting, satisfying and keeping customers The last two are necessary to stay on the leading edge and do the right things for our business and customers
- This is taking it into a little more detail Fill boxes and talk about each (not in detail yet) From supply to operation to demand is a chain, however, each is a process within itself. Example: Getting an invoice through the system is a process, however, receiving the material is a mini process within that process. Each offers opportunities to analyze and look at how it’s being done, ways to improve it and how long it takes. Determine the ultimate goal of the process Ask: What is the final objective of any process? Satisfy the customer. From a competitive standpoint, what does the process need to do? Add value and satisfy the customer.
- They are key to SCM. If we can optimize each process the overall system runs smother. Example: Even though a fine tuned motor in a new Mercedes runs good and it’s full of 93 octane gas, if the tires are flat, the ride won’t be a pleasant one.
- 1. Studies have shown that effective organizations have a good understanding of the process that they are involved in or are apart of 2. They don’t just happen 3. Probably the opposite will happen----they’ll deteriorate if not managed
- 1. Studies have shown that effective organizations have a good understanding of the process that they are involved in or are apart of 2. They don’t just happen 3. Probably the opposite will happen----they’ll deteriorate if not managed
- Looking at what we’ve been talking about in a graphic layout……… Customer requirements is the driver… process performance targets is what does it cost, quality issues, time and etc. What are the capabilities…..what is it capable of doing….we’ll discuss this more later Required capacity….how much can it do
- Remember, we’re still talking about managing a process requires a clear understanding of a number of things…… 1. You’re evaluating suppliers, what does it mean when you’re looking at a vendors capabilities? (Can Kinko’s printing supply you with quality aircraft parts?) You may simply be looking at color consistency or the quality of a part. 2. There will be some variability in every process, we’ll talk more about upper and lower control limits in module 3….you may be more familiar with the term SPC (Statistical process control). Basically, is the process capable of maintaining the limits that we set. 3. The requirements that we set should be realistic
- A number of factors can determine the capability of a process…… Methods-work low…do we use comat…..Decision making……does the big boss have to make the decisions or low level Technology…what kind of system support do we get, how good is the technology…….IS (information systems)….IT (information technology Input…nature of quality of input. All processes have input which affect the process….If we give a mechanic a bad quality part, this affects his process. Both information and materials must be of required quality People…the most important!! We’ll talk more about skills in a few minutes….People are the driving force
- Be realistic in setting performance expectations or customers may be disappointed when the process can’t deliver Look for the bottlenecks (story of boy and backpack)
- Looking at what we’ve been talking about in a graphic layout……… Customer requirements is the driver… process performance targets is what does it cost, quality issues, time and etc. What are the capabilities…..what is it capable of doing….we’ll discuss this more later Required capacity….how much can it do
- Design capacity--example-peak Effective--what can be sustained from day to day Demonstrated--Actual…historical
- A number of factors can determine the capability of a process…… Methods-work low…do we use comat…..Decision making……does the big boss have to make the decisions or low level Technology…what kind of system support do we get, how good is the technology…….IS (information systems)….IT (information technology Input…nature of quality of input. All processes have input which affect the process….If we give a mechanic a bad quality part, this affects his process. Both information and materials must be of required quality People…the most important!! We’ll talk more about skills in a few minutes….People are the driving force
- We are still talking about being effective in managing a process we must have a clear understanding of a number of issues. We’ve talked about requirements, customers, cost, quality, what the customer wants,capabilities,skills, etc. Now we’ll address capacity. When evaluating a supplier, capacity must be understood by both parties. The number of tables in a restaurant does not measure the capacity….the number of meals that can be served from say, 6pm to 8pm is it’s capacity. Generally capacity is a time dimension.
- Be realistic in setting performance expectations or customers may be disappointed when the process can’t deliver Look for the bottlenecks (story of boy and backpack)
- Go over and ask questions. Ask: What is capacity of system?
- Go over---added shift or added resources
- Be realistic in setting performance expectations or customers may be disappointed when the process can’t deliver Look for the bottlenecks (story of boy and backpack)
- Physical--car, how it will look Mathematical--Testing for reality or reaction by a mathematical equation Graphical---one we’ll focus on in this class
- Probably will skip
- Another way of putting it is a “pictorial display of the activities in their chronological order
- Block diagrams--known for their simplicity Flow process charts--Engineers are very fond of ANSI--the one we’ll be using as they are very flexible and universal
- Go through quickly and explain the example of the block diagram Simply each block represents an activity
- This is cluttered but shows the flow and activity Briefly cover
- Block diagrams--known for their simplicity Flow process charts--Engineers are very fond of ANSI--the one we’ll be using as they are very flexible and universal
- Operation--A value added process, paperwork, pulling parts, etc. Transport--Movement Storage--Filing paperwork or inventory hold Decision--Question to be answered then follow alternative route through rest of process Inspection/approval--Quality check, mgt approval Delay--Flow of work halted or slowed--waiting for something to happen This is the one we will use----get used to these 6 symbols
- Go through each item to help students understand the project they’re about to do.
- Information flow--how information gets from activity to activity Time--How long does an operation take. You may want to put boundaries on it, i.e. inspection 5 min to 1 hour. Must take into consideration what the longest time takes. Distance--how far between activities, I.e. comat from one place to another or hand off in person
- Go over and explain steps to help everyone understand what they are about to do in the exercise.
- Some considerations that should be mentioned before we go to the exercise As is---not how it should be Scope/detail--you’ll find that all processes are a part of a bigger process and there are sub processes to many activities in each process Explain--refer back to the process that we walked them through--we didn’t look at what happened after we delivered or what the clerk had to go through to enter order---we also lumped a lot into pick order
- Benefits: Just quickly cover as we’ve talked about these previously
- These are items to consider Bullet #: 1. Best competitive improvement 2. Do we have the authority 3. A known long term problem exist…a current problem exists 4. Look for the most impact to your supply chain 5. How much time or resources are available to do the study
- Some keys to look for to find highest visibility/results opportunities Use these as starting points for the selection process Where applicable, ask for examples of each of the bullet points: Most are common sense, go over each one: Bullet #: 1. May be poor quality parts, late delivery etc. 2. Lot of cost, high visibility 3. High variability processes are those processes that may take one day this time and the next time may take 6 days. 4. Look to shorten cycle time 5. Someone found a better way 6. Could be computerized tracking, bar coding, etc.
- This represents the five phases of process improvement. Later we will break into teams and map a current process The first two we’ll focus on today….tomorrow, we’ll continue with the others. Before we do that, we’ll be focusing on some tools to help you set priorities on processes or parts of processes to focus on.
- This represents the five phases of process improvement. Later we will break into teams and map a current process The first two we’ll focus on today….tomorrow, we’ll continue with the others. Before we do that, we’ll be focusing on some tools to help you set priorities on processes or parts of processes to focus on.
- This represents the five phases of process improvement. Later we will break into teams and map a current process The first two we’ll focus on today….tomorrow, we’ll continue with the others. Before we do that, we’ll be focusing on some tools to help you set priorities on processes or parts of processes to focus on.
- This represents the five phases of process improvement. Later we will break into teams and map a current process The first two we’ll focus on today….tomorrow, we’ll continue with the others. Before we do that, we’ll be focusing on some tools to help you set priorities on processes or parts of processes to focus on.
- This represents the five phases of process improvement. Later we will break into teams and map a current process The first two we’ll focus on today….tomorrow, we’ll continue with the others. Before we do that, we’ll be focusing on some tools to help you set priorities on processes or parts of processes to focus on.
- This represents the five phases of process improvement. Later we will break into teams and map a current process The first two we’ll focus on today….tomorrow, we’ll continue with the others. Before we do that, we’ll be focusing on some tools to help you set priorities on processes or parts of processes to focus on.
- This represents the five phases of process improvement. Later we will break into teams and map a current process The first two we’ll focus on today….tomorrow, we’ll continue with the others. Before we do that, we’ll be focusing on some tools to help you set priorities on processes or parts of processes to focus on.
- This represents the five phases of process improvement. Later we will break into teams and map a current process The first two we’ll focus on today….tomorrow, we’ll continue with the others. Before we do that, we’ll be focusing on some tools to help you set priorities on processes or parts of processes to focus on.
- This represents the five phases of process improvement. Later we will break into teams and map a current process The first two we’ll focus on today….tomorrow, we’ll continue with the others. Before we do that, we’ll be focusing on some tools to help you set priorities on processes or parts of processes to focus on.
- This represents the five phases of process improvement. Later we will break into teams and map a current process The first two we’ll focus on today….tomorrow, we’ll continue with the others. Before we do that, we’ll be focusing on some tools to help you set priorities on processes or parts of processes to focus on.
- This represents the five phases of process improvement. Later we will break into teams and map a current process The first two we’ll focus on today….tomorrow, we’ll continue with the others. Before we do that, we’ll be focusing on some tools to help you set priorities on processes or parts of processes to focus on.
- Some keys to look for to find highest visibility/results opportunities Use these as starting points for the selection process Where applicable, ask for examples of each of the bullet points: Most are common sense, go over each one: Bullet #: 1. May be poor quality parts, late delivery etc. 2. Lot of cost, high visibility 3. High variability processes are those processes that may take one day this time and the next time may take 6 days. 4. Look to shorten cycle time 5. Someone found a better way 6. Could be computerized tracking, bar coding, etc.
- Where best practices have been established, don’t try to reinvent the wheel….use them
- Let’s discuss some best practices for process management. There must be an owner for the process…who to go to if the process don’t work…there must be accountability Borders--don’t build walls but boundaries must be established or defined for accountability---can we be responsible for a package that we’ve delivered to the dock and then it gets lost inside the building? Interfaces--must know how our process interfaces with others Documented --must know them--keeps someone from changing procedures and also lets new employees learn quickly
- Let’s discuss some best practices for process management. There must be an owner for the process…who to go to if the process don’t work…there must be accountability Borders--don’t build walls but boundaries must be established or defined for accountability---can we be responsible for a package that we’ve delivered to the dock and then it gets lost inside the building? Interfaces--must know how our process interfaces with others Documented --must know them--keeps someone from changing procedures and also lets new employees learn quickly
- Let’s discuss some best practices for process management. There must be an owner for the process…who to go to if the process don’t work…there must be accountability Borders--don’t build walls but boundaries must be established or defined for accountability---can we be responsible for a package that we’ve delivered to the dock and then it gets lost inside the building? Interfaces--must know how our process interfaces with others Documented --must know them--keeps someone from changing procedures and also lets new employees learn quickly
- Let’s discuss some best practices for process management. There must be an owner for the process…who to go to if the process don’t work…there must be accountability Borders--don’t build walls but boundaries must be established or defined for accountability---can we be responsible for a package that we’ve delivered to the dock and then it gets lost inside the building? Interfaces--must know how our process interfaces with others Documented --must know them--keeps someone from changing procedures and also lets new employees learn quickly
- Where best practices have been established, don’t try to reinvent the wheel….use them
- Where best practices have been established, don’t try to reinvent the wheel….use them
- ….more best practices….
- ….more best practices….
- ….more best practices….