1. Tools for Improvement (2)
Mahendrawathi ER, Ph.D

2. Idealizing
Main principle: free from limitations that the current process imposes
Purpose: imagine how good the ideal process could be
Even if it is obvious that the ideal process cannot be implemented in practice, it can provide insight into how it should be implemented
The difference between the ideal process and the current situation can thus be used as a starting point for formulating solutions and improvement projects

3. Idealizing A typical group exercise
Numerous participants ensures that as many ideas as possible are captured
The group should be a mixture of:
Those performing the process  they are the ones dreaming of the ideal process
Those unfamiliar with practical limitations  can present refreshing ideas
No specific guidelines on how to use of perform idealizing
Flowchart can be used
After constructing flowchart for the ideal process  compare it with the current process
Find the gaps between the processes

4. QFD Prominent feature of QFD is:
It envisions the relationships and connections between ends and means, as well as analysis of these
The principle can be applied for process improvement
What: the requirement set for the process
Importance: to weight the requirements based on importance
How: the means used to satisfy the different requirements
Relational matrix: relations between requirements and means are analyzed
How vs. how (roof): connections between the different means
Why: can be used to perform a simple benchmarking against other organizations’ processes
How much: illustrate the results of the analysis

5. Work Unit Analysis Background:
The need for clear specifications to follow
Often something being produced or service being performed without having any clue to how the customer really wants it
To clear up such “silent misunderstanding” and the lack of clear specifications work units can be established and the interfaces between them analyzed
A work unit: a group that performs a set of tasks and that constitutes a unit with well-defined inputs and outputs

6. Work unit
Those who perform separate segments of a business  form a work unit
Unit will have suppliers and customers delivering and receiving input and output to and from the work unit
Requirements
Requirements
Input
Output
Work Unit
Supplier
Customer

7. Definition of requirements
Once a work unit has been formed, together with suppliers and customers, it must define the requirements that:
The work unit poses to the input from its suppliers & performance measures to monitor whether they are satisfied
The customers pose to the output from the work unit & performance measures to monitor whether they are satisfied

8. Purpose of work unit
Discussion around requirements will bring to light the needs and demands of the different stakeholders
Analysis will lead t the establishment of clear performance measures  can be used for monitoring the quality of the input or output
Analysis will ensure that as few items with defects or weaknesses as possible will be sent on for further processing

9. Steps to conduct work unit analysis
1. Establish the work unit  if one attempted work unit cannot clearly define the input and output, it must be redefined/reduced
2. Map customers  To capture the requirements from customers, analysis should start at the customer end of the work unit.
The unit’s true customer must be identified
Important to focus on the real products supplied by the unit
If a unit has more than one customer, then in the beginning concentrate on the most important customer
3. Define the requirements set for the unit’s output
Must capture absolute demands and less articulated ones!

10. Canoe Model Expressed: demands described by customers
Customer satisfaction
Expressed: demands described by customers
Expected: so basic not even described
Work unit must be aware of both
Satisfaction level depends on how well both sets are met:
Satisfying expressed req. does not rectify shortcomings in the basic demand
Satisfying every basic req. will not lead to complete satisfaction unless expressed req. are fulfilled
Delight
Performance
Unspoken
Degree of achievement
Basic
Expressed
Expected

11. Steps to conduct work unit analysis (cont.)
4. Map the inputs
5. Map suppliers of each input
6. Map processes performed by the work unit in order to transform input to output
7. Define performance measures for the processes
8. Continuous measurement, generation of improvement suggestions and implementation of these

12. Business Process Re-engineering
According to Hammer and Champy (1993), BPR is:
Re-engineering is fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance such as cost, quality, service and speed
BPR emphasizes on the breakthrough or radical improvements
Not suitable for example if the objective is to achieve 10% improvement

13. BPR vs. role of existing business processes
Should the existing processes form the basis for the new, redesigned processes?
Should the existing processes be changed in the improvement phase or should new processes be designed to replace them?
Should the organization simply start the reengineering with a clean sheet?

14. Existing vs. Completely New Process
Existing processes:
Ignoring existing process means ignoring accumulated knowledge and experience  very risky. However, there is a danger of repeating the same mistakes
Too many detail  allowing limitations incorporated in them to impact the new process
Completely new process:
VERY FEW organization have succeeded in implementing completely new processes
No correct answer: strike a suitable balance between how things are done today and how they should be done in a perfect world

15. Types of BPR
Systematic Reengineering: current processes are understood, documented and analyzed in order to systematically create new and better processes
Similar to streamlining but not only about incremental improvements in existing process
BPR must seek to combine the best from existing processes with new ideas about how the ideal process should look (idealizing)
Clean Sheet Reengineering: current processes are scrapped and new processes created from scratch through fundamental rethinking
Starting with completely clean sheet rarely can be done in practice  we mean a more moderate

16. True application of BPR will be a structured process where two elements, idealizing and streamlining, are combined

17. Conducting BPR Four Phases Planning Reengineering Transformation
Strategic plans
External
performance
requirements
Four Phases
Planning
Reengineering
Transformation
Implementation
Planning
BPR Project
Reengineering
Recommendations
Transformation
Approved solutions
Implementation
Reengineered process

18. Planning Central tasks in this phase:
Select the process to be improved through BPR
Assess the possibilities for achieving improvement and establish targets
Establish a project team to perform the work in the project
Produce a project plan for the BPR project

19. Central points in project plan
Activities of the project
Who will perform these?
When they should be performed?
Which resources are needed and which are available for the project
The expected results from the project

20. Reengineering Document the existing process Reengineer the process
Develop recommendations for improvement

21. Systematic Reengineering
Resembles the streamlining
ESIA rules:
Elimination: eliminate all activities that do not add value
Simplification: simplify as many of those activities remaining as possible
Integration: integrate and further improve the flow of deliveries between the suppliers, the organization and the customers
Several smaller jobs can be integrated into one single job
Different individual specialists can be integrated into groups that are responsible for more jobs
Integrating organization with customers and suppliers
Automation: IT, computerization and robotic equipment
Should be applied after elimination, simplification and integration has been successfully applied
80 percent functionality can be achieved at 20 percent of the cost

22. Main area for ESIA rule Eliminate Simplify Integrate Automate
Excess production
Forms
Jobs
Dirty work
Waiting time
Procedures
Groups
Difficult work
Transport
Communication
Customers
Dangerous work
Processing
Technology
Suppliers
Boring work
Storage
Problem areas
Data capturing
Defect/errors
Flow
Data transfer
Duplication
Processes
Data analysis
Reformatting
Inspection
Reconsolidation

23. Clean Sheet Reengineering
Each BPR project utilizing this approach is unique
Some basic questions that need answering:
Which basic needs do we want to fulfill and for whom?
Why do we try to fulfill these needs? Does it fit in with the overall strategy of the organization?
Where must these needs be fulfilled? At home, in a separate service area, in the company’s facilities?
When must these needs be fulfilled? At what time of the day, and by which deadlines?
How will the needs be fulfilled? What processes will be required? Who must perform these processes, and which technologies does this require?
Creativity, imagination and knowledge of the persons involved is crucial

24. Transformation Main tasks:
Evaluating the changes required to implement the new process
Planning the need for investments, training, purchases and so on
Creating a favorable climate for change
Planning the implementation

25. Implementation Set targets for the improvements
Carry out the implementation plan
Monitor the progress of the implementation and handle any deviations