By: Richard T. Sengson

IMPROVING:

Productivity

Revenue created by the process

Quality (product, service, reliability)

BY REDUCING:

Non value adding activities

(rework, inspection , scrap)

Cost of processes

Cycle time

Better serve customer.

Improve ability to anticipate manage & respond to changes in the market place.

Maximized business opportunities.

Reduce inefficiencies and errors.

1.Effectiveness — Does the process

meet customer needs?

2.Efficiency — Does it cut down on the

usage of resources?

3.Adaptability — Is the process flexible

enough to change as requirements

change?

Senior Leaders ( CEO, Senior Executives )

Align key stake holders and recognized the process

of PI

Create or support an environment that changes to

happen.

Project Leaders/Change Agents

Facilitate the change

Provide support and expertise

Assist with identification of improvements

Champions ( Line Manager , Leaders )

Members of the organization

WHO:

Believe in the improvement of project and

demonstrate support .

Reach to personnel who do not support change

and influence them.

Also contributes expertise and experience in the

process.

Steps Tasks

1. Create process inventory

Identify process flows.

Document data’s (inputs, outputs, org. structures, responsible resources)

Steps Tasks

2. Identify opportunities for

improvement.

Establish foundation

Stimulate discussion figuring where the improvement effort

will focus on using a variety techniques.

Example: Output Quality Improvement, Time/cost reduction etc.

Steps Tasks

3. Draw process map

Pareto chart

Understand themeasure of the existing process

Steps Tasks

4. Estimate Time and Cost for the

improvementDocument changes and organizational impacts

introducing new process cost and cycle time.

Steps Tasks

5. Pilot or Verify Process Map

Develop a prototype and documentation.

Be sure that the PI map is reviewed to assure or match

existing process.

Steps Tasks

6. Apply Improvements

Techniques

Application of BPI so it delivers Business VALUE.

“TEST” response to user is considered necessary. Screen

AWARENES.

Steps Tasks

7. Control

Create internal controls to minimized errors during the

process.

Specify toolsChecklist/Monitoring Form

Steps Tasks

8.Test and Rework

Ensuring everything is working as planned.

Modify prototype in response to testing and user responses.

Go over if necessary

Steps Tasks

9. Implementation

“Communication” is the key. Inform the organization that

BPI will take effect.

It also include the logical termination of any existing

process replaced by the implementation.

Steps Tasks

10.Ensuring Success

At survey, 70% of BPI projects fail due to lack of sustained Mgmt.

commitment and Leadership,

Unrealistic scope and expectation.

Employees resistance to change.

Drive continuous improvement by embracing new mindset not

just one time. “KAIZEN”

Shared Vision – Mgmt.

Realistic expectation – measurable

Empowered – collaborative workers

Fine-tuning processes gives an organization a competitive advantage in a global

marketplace.

*In relation to the business or company (identifying the 10 BPI)

Steps Inventory Process FlowFinished Goods

1. Create process inventory

Identify process flows.

*In relation to the business or company (identifying the 10 BPI)

Steps Inventory Process FlowFinished Goods

2. Identify opportunities for

improvement.Stimulate discussion

figuring where the improvement effort will focus on using a variety techniques.

Steps Inventory Process FlowFinished Goods

3. Draw process map

4. Estimate Time and Cost for the

improvement

Document changes and organizational impacts introducing new process

cost and cycle time.

PackagingMetal

DetectionBlast

Freezer

Finished goods

warehouseDispatching

By using the Barcode System, we reach the target output

INCREASE IN GROSS PROFIT COMPUTATION

New Output Cost per Unit (Peso)

Subtotal Additional GP in 1 month

144,000 1.16 167,040 P 4,343,040

Steps Inventory Process FlowFinished Goods

5. Pilot or Verify Process Map

Develop adocumentation.

Then publicize pilot and invite responses to design

and testing

6. Apply ImprovementsTechniques

“TEST” response to user is considered necessary.

Conduct user technical testing.

Steps Inventory Process FlowFinished Goods

7. Making it RealCreate internal

controls to minimize errors during the

process.

8.Test and ReworkEnsuring everything is

working as planned.

Lower costs increase in profit•Eliminate time spent in encoding of finished goods

5 minutes per production line3 times encoding in one shift (frequency)10 production lines In 5 minutes, the productivity rate per line is 150 unitsIncrease in productivity:

= 3 x 150 x 10= 4,500 units per day

ROI= 5.3 yrs (to replace manpower)

Steps Inventory Process FlowFinished Goods

9. Implementation“Communication” is the key. It also include the

logical termination of any existing process replaced by the implementation.

10.Ensuring SuccessDrive continuous improvement by

embracing new mindset not just one time.

“KAIZEN”

Management will achieve objectives and strategies on the basis of well founded BPI implementation of a systematic methodology.

BPI success will depend on Management support, sustain effort.

Employees will be provoked to have meaningful input into new process design in the organizational performance.