2 Process Re Engineering -1
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Transcript of 2 Process Re Engineering -1
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PROCESS REENGINEERING
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Process Analysis
Process Design
Process Flow Diagram
Innovation
Value Stream Mapping
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Reengineering is a fundamental rethinkingand redesign of the processes to achievedramatic improvements in criticalperformance metrics such as cost, quality,delivery
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Process Simplification Process Reengineering
Incremental Change
Process Led Assume attitude and
behaviour
Simultaneous Projects
Line Management led
Radical transformation
Vision Led Change Attitude and
behaviour
Limited initiatives
Corporate led
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Continuous Improvement Process reengineering
Incremental change
Employee focus
Low investment
Improve existing
Radical change
Employee and technologyfocus
High investment
Rebuild
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Process
A specific order of work activities sequentiallyperformed from start to end with clearlyidentified inputs and outputs
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Business Process
A group of logically related processes that usethe firm's resources to provide customer-
oriented results in support of theorganization's objectives
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Reengineering
Why
Customer
Changing needs , demanding
Technology Change
Competition - Global , Local
Why not
Complacency
Fear of change
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Process Based
Added Value
Initiatives must add-value over and above theexisting process value
Customer-Led
Initiatives must meet the needs of the customer
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Radical Change
Stepped Approach
Process improvements will not happen over nightthey need to be gradually introduced
Assists the acceptance by staff of the change
Sustainable
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Framework for Process Reengineering
Opportunity Assessment Benchmarking with peers
Review of internal process
Customer complaints/pain points
What the boss feels
Process Analysis
Process Design
Assess Risks and Rewards
Implementation
Handover to process owners
Gap Analysis
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Process Reengineering Project
Teamformation
Objective(s)
WBS andMilestones
Elements
ConceptPhase
DevelopmentPhase
Implementation Phase
Termination(Handover)Phase
Phases
Unfreezing
Change
Refreezing
ChangeManage
ment
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Process Analysis
Identify
Define Scope
Document Process
Evaluate performance
Redesign process
Implement changes
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Identification
Core processes
Supplier
Product development/manufacture
Customer
Internal processes
Quality
Delivery
Cost
Suggestions from employees
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Scope
Broad or Narrow
Team approach
Involve team members Specialists/facilitators
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Documentation
List inputs - suppliers, outputs, customers
Breakdown into sub processes
Flow charts Service Blueprints
Flow charts showing customer contact points
Front office and Back office activities Process charts
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Performance Metrics
Cycle time
Process cost
Defects/rework Customer response time
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Process Analysis
Process flow diagram Analysis paralysis trap Level of detail
Enriching the process flow diagram ANSI Standards
Experts to prepare
Structural Analysis Overlapping, missing, redundant, non essential
Dynamic Analysis Happening in the process
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Determine the parameters to monitor
How, where and when
Validate accuracy Who will collect
Organise to Analyse
Data collection & Validation
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Process Analysis
Real Value Added
essential in order to meet customerexpectations
Business Value Added essential to conducting businesslike compliance
No Value Added storage, movement, approvals, etc
Example - Material Ordering
Actual performance
Potential performance Risk impact
Process Streamlining
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Value Stream Mapping
To provide optimum value to the customerthrough a complete value creation process
In Design
Concept to customer Build Order to delivery
Sustain In use through life cycle for services
Provides Vision and plans to connect all theprocess improvement activities
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Benefits
Understanding the process
Material and information flow
Data driven decisions
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Select the product/family
Draw the current state map
Eliminate non value adds Draw a future state map using lean flow
design
Implement
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Current State
Walk the gemba
Record process steps and time taken and
observations Keep the customer in mind
Calculate Manufacturing critical path time(MCT)
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Takt time Cycle time needed to matchproduction rate to demand rate.
Net time available per shift
No of shifts
Net time available per day
Takt time = Net time available/demand
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Future state
1. What does the customer really need?2. How often we check our performance to
customer needs?
3. Which steps create value and which arewaste?4. How can work flow with fewer interruptions?5. How to control work between interruptions?
How will work be prioritized?6. Is there an opportunity to balance the work
load and/or different activities?7. What process improvements can be thought
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Future state
Eliminate non value adds
Eliminate/reduce lead time
Problems/bottlenecks ,push/pull Work flow improvement
Process improvement
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Implementation
Clarify Business Drivers and Key CustomerMetrics
Assess and Map Current Capabilities (Baseline)
Identify Opportunities for Improvementincluding the elimination of WASTE Create a Vision for the Future Based on Voice of
the Customer and Voice of the Business Analyze Gaps and Create Action Plan to
Succeed Use Robust Set of Tools (i.e. Lean Six Sigma)
Determine Priorities and Resources Necessary Structured Process Improvement
Track Impact through Metrics
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Thank You
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Discussion on Donner
Identify the process performance metrics
Can we decide & how Which orders should go to CNC drill
Which orders should go to CNC router
One group to present and other group toagree/disagree to reach conclusion
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Questions for VSM
Can we identify VA,NVA
Why takt time is not important
Can we draw a future state