Wk8lect1.pptx
- 1. Business Process Engineering Week 8 (Lecture 1) Dr Naeem Janjua
- 2. 1. Introduction 2. Process Identification 3. Essential Process Modeling 4. Advanced Process Modeling 5. Process Discovery 6. Qualitative Process Analysis 7. Quantitative Process Analysis 8. Process Redesign 9. Process Automation 10.Process Intelligence
- 3. Process Analysis Process identification Conformance and performance insights Conformance and performance insights Process monitoring and controlling Executable process model Executable process model Process implementation To-be process model To-be process model Process analysis As-is process model As-is process model Process discovery Process architecture Process architecture Process redesign Insights on weaknesses and their impact Insights on weaknesses and their impact
- 4. Process Analysis Techniques Qualitative analysis Value-Added & Waste Analysis Root-Cause Analysis Pareto Analysis Issue Register Quantitative Analysis
- 5. Qualitative analysis Issue Register & Pareto Charts Value-Added & Waste Analysis Root-Cause Analysis
- 6. Value-added analysis 1. Decorticate the process into steps Steps performed before a task The task itself, possibly decomposed into smaller steps Steps performed after a task, in preparation for the next task 2. Classify each step Value-adding (VA) Business value-adding (BVA) Non-value-adding (NVA) For example: Check invoice may involve the following steps: 1. Retrieve the PO that corresponds to the invoice. 2. Check that the amounts in the invoice and those in the PO coincide. 3. Check that the products or services referenced in the PO have been delivered. 4. Check that the suppliers name and banking details in the invoice coincide with those recorded in the supplier management system.
- 7. Produce value or satisfaction to the customer Criteria Is the customer willing to pay for this step? Would the customer agree that this step is necessary to achieve their goals? If the step is removed, would the customer perceive that the end product or service is less valuable? Examples Repairing washing machine: Diagnoses and repair Order-to-cash process: Confirm delivery date, Deliver products University admission process: Assess application, Notify admission outcome Value-adding activities 7 Maximize
- 8. Necessary or useful for the business to operate Criteria Is this step required in order to collect revenue, to improve or grow the business? Would the business (potentially) suffer in the long-term if this step was removed? Does it reduce risk of business losses? Is this step required in order to comply with regulatory requirements? Example Order-to-cash process: Check purchase order, Check customers credit worthiness, Issue invoice, Collect payment, Collect customer feedback University admission process: Verify completeness of application, Check validity of degrees, Check validity of language test results Business value-adding activities 8 Minimize
- 9. Everything else besides VA and BVA. Activities the customer would be unwilling to pay for Incudes 1. Handovers, context switches 2. Waiting times, delays 3. Rework or defect correction Examples Order-to-cash process: Forward PO to warehouse, Re-send confirmation, Receive rejected products University admission process: Forward applications to committee, Receive admission results from committee Non-value-adding activities 9 Remove
- 10. - Fill request - Send request to clerk - Open and read request - Select suitable equipment - Check equipment availability - Record recommended equipment - Forward request to works engineer - Open and examine request - Communicate issues - Forward request back to clerk - Produce PO - Submit PO to supplier Extract of Equipment Rental Process - Fill request (VA) - Send request to clerk (NVA) - Open and read request (NVA) - Select suitable equipment (VA) 1st time - Check equipment availability (VA) 1st time - Record recommended equipment (BVA) - Forward request to works engineer (NVA) - Open and examine request (BVA) - Communicate issues (BVA) - Forward request back to clerk (NVA) - Produce PO (BVA) - Submit PO to supplier (VA)
- 11. Equipment Rental Process VA Analysis
- 12. Waste analysis All we are doing is looking at the time line, from the moment the customer gives us an order to the point when we collect the cash. And we are reducing the time line by reducing the non-value-adding wastes Taiichi Ohno, Toyota
- 13. 1. Segregate value-adding, business value-adding and non- value-adding steps 2. Identify waste 3. Collect and systematically organize issues, assess their impact 4. Analyze root causes of issues Summary