2 Process Re Engineering -1

8/3/2019 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

2 Process Re Engineering -1

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