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Business Process Re-Engineering: It’s for Everyone!

Business Process Re-Engineering: It’s for Everyone!. Superintendent’s Leadership Conference August xx, 2014. Shirley Chang Frank Olmos Rod Freudenberg. Drum Majoring Is NOT for everyone!. Direction and Destination are Important. Caution…. Jargon Ahead.

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Business Process Re-Engineering: It’s for Everyone!

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  1. Business Process Re-Engineering: It’s for Everyone! Superintendent’s Leadership Conference August xx, 2014 Shirley Chang Frank Olmos Rod Freudenberg

  2. Drum Majoring Is NOT for everyone!

  3. Direction and Destination are Important

  4. Caution… Jargon Ahead

  5. Business Process Re-engineering (BPR) • Analysis of workflows and business processes to make major improvements in speed, quality, cost, and customer satisfaction. • Common denominator for: • Total Quality Management (TQM) • Statistical Process Control (SPC) • ISO 9000-1 • Capability Maturity Models (CMMI) • Malcolm Baldridge National Quality Award (MBNQA) • Lean Manufacturing • 6 (Six Sigma) • Lean Six Sigma • Etc.

  6. Business Process Re-engineering • Fundamental re-thinking and redesign of how business of any kind is done(Not minor tweaking). • High leverage of technology with a focus on questioning everything about a work process before automating it. • Rooted in manufacturing (in 90’s) but applicable to every area of work, including services and education (since 2000).

  7. Requirements of Re-engineering • Critical processes • Strong leadership • Cross-functional teams • Information technology • Clean-slate philosophy • Process analysis

  8. Re-engineering Features • Make the customer the starting point for change • Design work processes in light of organizational goals • Restructure to support and improve front line performance

  9. Process Capability Maturity Stages 5 4 3 2 1

  10. DMAIC(How processes mature) Define: How does the current process work? Measure: How well is the current process working? Analyze: What are the sources of delays, errors and variability in outcomes? Improve: What are best practices and what can we do to improve it? Control: Implement and sustain change in process

  11. BPR Management Cycle Identify and Define Processes Analyze Process “As is” Redesign process Implement, Support, Measure

  12. What is a Business Process? • Means by which a product is produced or service delivered. • Involve: • Customer/End User • Equipment/technology, Materials, Information • Before state, Activities, After State

  13. SIPOC (Value Stream) Suppliers Customers Inputs Process Outputs Kettle Water Coffee Mug Mug of coffee You Cornershop Wife Making Coffee Add boiling water to mug Add coffee to mug Serve Boil water

  14. Multi-Role Process Map Process Step 1 Process Step 2 YES Decision NO Process Step 3 Process Step 2.5 Process Step 4

  15. Identify a Process – Group Exercise • What is your product or service? • Who is your customer? • What does your customer actually want? • What is your starting point? • What is the series of actions done to deliver your product or service?

  16. Criteria for Effective Process Typical “metrics” include: • Quality • Timeliness • Cost • Customer Satisfaction • Legal/Regulatory Accountability

  17. Objectives of Process Analysis • Sources of variation in key metrics • Where in the process does variation originate? • Root cause analysis • Sources of inefficiency

  18. Value-Added? • Value-added work • Produces final product or service • Improves quality, reduces error or defects • Contributes to customer satisfaction • Business required • Legally required step/documentation • Accounting, tracking, record keeping • Administratively required for process control or meeting other operational requirements • Non-value-added work (everything else!)

  19. Improve the Process • Simplify process by: • Eliminating non-value added steps • Reducing resources used • Automating routine/cyclical operations • Standardize process by: • Role specification and clarification • Use of uniform materials and methods (supply chain mgmt.) • Documentation and training • Control the process: • Control sources of variation in quality and timeliness • Meet customer expectations consistently and predictably

  20. Control the Process • Measure and evaluate the new process • Ensure the process is being managed and monitored properly • Expand the improved process throughout the division/organization

  21. Final Exercise • Discuss the process you defined: • What would be some Key Performance Indicators or Metrics? • What in the process causes variation in the products or services? • What would be high-leverage steps in the process to improve quality? • What steps are: • Value-added? • Business required? • Non-value-added?

  22. Leadership involves commitment to the destination, showing the way, keeping everyone together, and building engagement.

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