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

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

Shirley ChangFrank Olmos

Rod Freudenberg

Superintendent’s Leadership ConferenceAugust xx, 2014

Drum Majoring Is NOT for everyone!

Direction and Destination are Important

Caution…

Jargon Ahead

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.

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).

Requirements of Re-engineering

• Critical processes• Strong leadership• Cross-functional teams• Information technology• Clean-slate philosophy• Process analysis

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

Process Capability Maturity Stages

Ad-hoc

Repeatable

Enabled

PredictableOutcome

Enhancing

21

34 5

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

BPR Management CycleIdentify and

Define Processes

Analyze Process “As is”

Redesign process

Implement, Support, Measure

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

SIPOC (Value Stream)Suppliers Inputs Process Outputs Customers

YouCornershop

KettleWaterCoffeeMug

Mug of coffee Wife

Making Coffee

Boil water Add coffee to mug

Add boiling water to mug Serve

Role 1

Role 2

Role 3

Role 4

Role N

Multi-Role Process Map

Process Step 1

Process Step 2

Process Step 2.5

Process Step 3

Process Step 4

Decision YES

NO

Identify a Process – Group Exercise

1. What is your product or service?2. Who is your customer?3. What does your customer actually want?4. What is your starting point?5. What is the series of actions done to deliver

your product or service?

Criteria for Effective Process

Typical “metrics” include:–Quality– Timeliness–Cost–Customer Satisfaction– Legal/Regulatory Accountability

Objectives of Process Analysis

• Sources of variation in key metrics– Where in the process does variation originate?– Root cause analysis

• Sources of inefficiency

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!)

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

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

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?

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