Process Re Engineering

8/2/2019 Process Re Engineering

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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

Process Re Engineering

Documents

Transcript of Process Re Engineering