process re engineering
TRANSCRIPT
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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 rethinking andredesign of the processes to achieve dramaticimprovements in critical performance metricssuch as cost, quality, delivery
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Process Simplification Process Reengineering
Incremental change
Simultaneous Projects Line Management led
Process Led
Assume attitude and
behavior
Radical transformation
Limited initiatives Corporate led
Vision Led
Change Attitude and
behavior
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Continuous Improvement Process reengineering
Incremental change
Improve existing Low investment
Employee focus
Radical change
Rebuild High investment
Employee and technologyfocus
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Process
A specific order of work activities sequentiallyperformed from start to end with clearlyidentified I/p and o/p.
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Business Process
A group of logically related processes that use the firm'sresources to provide customer-oriented results in support ofthe organization's objectives.
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Reengineering
Why (CTC)
Customer - (Changing needs , demanding)
Technology Change Competition - (Global , Local)
Why not
Complacency
Fear of change
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Process Based (AC)
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 staff of the change
Should be sustainable.
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Framework for Process Reengineering
Opportunity Assessment Benchmarking with peers.
Review of internal process.
Customer complaints.
What the boss feels.
1. Process Analysis
2. Process Design3. Risks and Rewards
4. Implementation
5. Handover to Process owners
Gap Analysis
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Process Reengineering Project
Teamformation
Objectives
WBS andMilestones
Elements
ConceptPhase
DevelopmentPhase
Implementation Phase
TerminationPhase
(Handover)
Phases
Unfreezing
Change
Refreezing
Change
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Process Analysis
Identify
Scope
Document Process
Redesign process
Evaluate performance Implement changes
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Identification
Core processes Supplier Product development/manufacture Customer
Internal processes Cost
Quality Delivery
Suggestions from employees
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Scope
Broad / Narrow
Team approach/ Involve team members
Specialists/ facilitators
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Documentation
List inputs - suppliers, outputs, customers.
Breakdown into sub processes.
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Service Blueprint: Front office and Back office activities
Flow charts showing customer contact points
Process Chart
The activities performed by a person , by a machineat a work station with customer or materials
Flow Chart
Flow of material, information through varioussteps/processes
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Who will collect
How, where and when
Determine the parameters to monitor
Validate accuracy
Organize to Analyze
Data collection & Validation
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Process Design
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 Cycle Time.
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Real Value Added
essential in order to meet customerexpectations
Business Value Added essential to conducting businesslike compliance
No Value Added
storage, movement, approvals, etcE.g. Material Ordering
Actual performance
Potential performance
Process Streamlining
Risk impact
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Performance Metrics (PQR)
Cycle time
Process cost
Defects/rework Customer response time
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Problem for Discussion
Quality problems in the cabinet
External , Internal
Idle inventory
Current Process
Inspection at factory and rework
What process change can be made
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Process analysis
Place Order
Receive goods
Inspect goods
Rework
Re inspect and accept
Deliver to Production
Update records
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Value Stream Mapping
To provide optimum value to the customerthrough a complete value creation process.
Design
Concept to customer
Build Order to delivery
Sustain 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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Current State
Walk the gemba.
Record process steps and time taken and observation
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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Eliminate non value adds
Eliminate non value adds
Eliminate/reduce lead time
Problems/bottlenecks push/pull
Work flow improvement
Process improvement
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Future state
1. What does the customer really need?
2. How often we check our performance to customerneeds?
3. Which steps create value and which are waste?
4. How can work flow with fewer interruptions?
5. How to control work between interruptions?
6. How will work be prioritized?
7. Is there an opportunity to balance the work load?
8. What process improvements can be thought?
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Implementation
Clarify Business Drivers and Key Customer Metrics
Assess and Map Current Capabilities (Baseline)
Identify Opportunities for Improvement includingthe 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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Assignment on Donner 1
Draw the process flow diagram for
Preparation and image transfer
Dry Film photo-resist
Fabrication, indicating the set up time and
run time on the chart
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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