Buisness process Management.doc

8/17/2019 Buisness process Management.doc

1/20

KAUNAS UNIVERSITY OF TECHNOLOGY

SCHOOL OF ECONOMICS AND BUSINESS

DEPARTMENT OF ECONOMICS

Business process !n!"een#$ P!per %or&

Operation And Process Management

Author:

R!'u( Sin"'

Vipr! Tri)e*i

Mi*o'o!+!si Essienu+on"

A*e,ei K!-ee A.!,i

O"unso(! Ke()in

Supervisor:

Assoc Pro/0 M!n#!s Vi(&!s

K!un!s1 2345


2/20

ContentsAssi"nen# 40 Ne6 pro*uc# *e)e(open# 3

1.1 Identify product or service you will be analyzing 3

1.2 Prepare a customer requirements tree for a product or service 3

1.3 Ranking of te importance of customer requirements 3

1.! Prepare a value proposition for product or service !

1." Prepare quality function deployment for a product#service you are analysing "

Assi"nen# 20 Process !rc'i#ec#ure $

1. Identify ow many and wat kind of value cains constitute your organization $

2. Identify processes of organization $

3. %roup identified processes and e&pand tem '

!. (raw a process map) consider sowing core processes) teir interaction) and main interested parties.*

". +omment te relationsip of vertical organizational structure and orizontal organizational structure. ,

Asi"nen# 70 Process /(o6 !n!(,sis 1-

1. elect a process) wic is going to be analysed 1-

2. elect a type of process diagram and flowcart selected process 1-

3. Indicators of process /wic allows to measure if process performs well0 11

!. (raw a concept map for a process and mark important concepts) wic sould be sared 11

ASSIGNMENT 08 12

1. o initiate te incremental improvement proect according to si& sigma (4I+ metod to solve aproblem#defect tat is causing financial and customer satisfaction looses for 5R by te customer servicerepresentatives staffs. 12

2. Initiate or describe reengineering proect 1"

6usiness Process Reengineering 1"

7lements of Reengineering 1"8ow 6usiness Process Reengineering works9 1$

:ses of 6usiness Process Reengineering for +ompanies9 1$

2. (escribe a radical improvement initiative wic could drastically improve caracteristics of a processof an organization. 1$

upply +ain 7volution 1'

ASSIGNMENT 50 Le!n s,s#es 1,

1. Identify value you are providing for customers 1,

1.2 Identify interested parties and teir requirements for your organization and product#service 1,

1.3 Identify customer;s requirements at different toucpoints 1,

2.


3/20

Assignment 1. New product development

1.1 Identify product or service you will be analyzing

Pro*uc# or ser)ice 9!r! F!s'ion

1.2 Prepare a customer requirements tree for a product or service

Pro*uc# or ser)ice ,ou

!re !n!(,-in"

Cus#oer re:uireen#s Descrip#ions !n* e;p(!n!#ion i/ necess!r,

9!r! /!s'ions

Aore *iscoun#

BIpro)ise en sec#ion in s#ores

CA//or*!+(e cos#s

D No ne6s(e##ers

E


4/20


5/20

Assignment #. Process architecture

1. Identify !ow many and w!at ind of value c!ains constitute yourorganization

A C(o#'in"s

B Foo#6e!rs

C E=coerce

D Accesories

2. Identify processes of organization

$roups o% processes Le)e( 4 processes

Oper!#=ions

)!(uec'!ins

Ti#(e o/ )!(uec'!in A

C(o#'in"s

A403

In+oun* (o"is#ic

A203

oper!#ions

A703

Ou#+oun*(o"is#ic

A803

M!r&e# !n*s!(es

A503

ser)ices

0000

Ti#(e o/ )!(uec'!in n

Ecoerce

In+oun* (o"is#ic Oper!#ions

6e+si#e!in#!n!nce

Ou#+oun*(o"is#ic

M!r&e# !n*s!(es

ser)ices

Suppor# !n* !n!"een#

Hu!n c!pi#!(?04

I0T !n!"een#>02

M!n!"e cus#oer ser)ices507

Di(i)er pro*uc# !n* ser)ices805

M!n!"in" /in!nci!( resources04


6/20

3. %roup identi&ed processes and e'pand t!em

$roups o% processes &evel 1 processes &evel # processes

O p e r a t i n g

"itle o% value

chain A

C&O"'(N$S

A403 in+oun* (o"is#ic M!#eri!( '!n*(in"

A203 oper!#ions Menu/!c#urin"

A703 ou#+oun* (o"is#ic Or*er

Processin"

S'ippin"

A803 !r&e#in" !n* s!(es Pro*uc#

Pricin"

Proo#ion

P(!ce

A503 ser)ices Rep!ir

Cus#oer ser)ices

....

"itle o% value

chain n

e commerce

In+oun* (o"is#ic

Oper!#ion

Ou#+oun* o"is#ic

M!r&e# !n* s!(es

ser)ices

Hu!n C!pi#!( De)e(op !n* !n!"e 'u!n resourcesHRp(!nnin"


7/20

S u p p o r t a n d m a n a g e m e n t

I0T !n!"een# De)e(op !n* !n!"e IT cus#oer re(!#ions'ip

M!n!"e cus#oer ser)ices Me!sure !n* e)!(u!#e cus#oer ser)iceoper!ions

Di(i)er pro*uc# !n* ser)ices M!n!"e (o"is#ic !n* 6!re'ousin"

M!n!"in" /in!nci!( resources Per/or p(!nnin" !n* !n!"een# !coun#in"

". (raw a process map) consider s!owing core processes) t!eir interaction)and main interested parties.

No

Yes

tart

find clot material

+lotready touse

4anufacture clot

ransport clot towareouse

6ring it to te place

Package goods

ransport %oods toretail sop


8/20

#. Comment t!e relations!ip of vertical organizational structure and !orizontalorganizational structure.

Ver#ic!($

T'e )er#ic!( or"!ni-!#ion '!s ! s#ruc#ure 6i#' po6er e!n!#in" /ro #'e #op *o6n0 T'eres ! 6e((=*e/ine* c'!in o/ co!n*6i#' ! )er#ic!( or"!ni-!#ion1 !n* #'e person !# #'e #op o/ #'e or"!ni-!#ion!( c'!r# '!s #'e os# po6er0 Ep(o,ees repor# #o #'e person *irec#(, !+o)e #'e in #'e or"!ni-!#ion!( s#ruc#ure0 E!c' person is responsi+(e /or ! speci/ic !re! or se# o/ *u#ies0

Hori-on#!($

A 'ori-on#!( or"!ni-!#ion '!s ! (ess=*e/ine* c'!in o/ co!n*0 Ep(o,ees !cross (ines '!)e sii(!r inpu# in#o 'o6 #'eor"!ni-!#ion is run0 Ins#e!* o/ e!c' person '!)in" c(e!r(, *e/ine* *u#ies1 ep(o,ees !, 6or& in #e!s1 6i#' e)er,one on #'e#e! '!)in" inpu#0 Ep(o,ees !, per/or !n, *i//eren# /unc#ion !n* !, repor# #o se)er!( super)isors1 r!#'er #'!n !sin"(e +oss0 Pro.ec# !n!"ers or #e! (e!*ers repor# #o ! #e! o/ super)isors1 6i#' e+ers o/ e!c' #e! +ein" essen#i!((,e:u!( in #ers o/ po6er0

(istribute te neededitems to

retailers#sopkeeper

Package distributedclots#goods

ransport goods tomain store

7=(

+onsumer


9/20

Asignment ). Process %low anal*sis

1. *elect a process) w!ic! is going to be analysed

Ti#(e o/ ! process$ S'oppin" !# 9!r!s s#ore

2. *elect a type of process diagram and +owc!art selected process

Tr!*i#ion!( /(o6 c'!r#

C(e!r

Unc(e!r

I/ Bu,

I/ No# Bu,

+ustomer7nters

>nowing needsof customer

elf searcingfor product

nalyzing te type of customer need

+auseclear ?

@inding lternative

elf earcing

+eaking @or @itting

Payment

+onviencing customer for anoter product

ize and fitting ceck

sk for satisfaction

6:A ornot

+ustomer 7&its

+R(#+8


10/20

3. Indicators of process ,w!ic! allows to measure if process performs well-

(ndicator area "itle o% indicator +escription how will ,e measured

C!p!ci#,

E//icienc,Inpu#

T'e inpu# 6i(( +e e!sure* 6i#' #'e !i o/ #'e ou#pu# pro*uc# in in* !n* #'e*esire* :u!(i#ies !n* c'!r!c#eris#ics i# s'ou(* '!)e0

ou#pu#

T'is 6i(( +e e!sure* in re(!#ion #o #'e :u!n#i#, o/ M!#eri!( #'!# 6!s use*0


11/20

ASS($NMN" .-

1. /o initiate t!e incremental improvement pro0ect according to si' sigma(IC met!od to solve a problem$defect t!at is causing &nancial and customer

satisfaction looses for R by t!e customer service representatives stas.

1.1 e +e%ine: A pro+(e*e/ec# is sip(, e;p(!ine* !s !n, coponen# #'!# *oes no# /!(( 6i#'in #'e

cus#oers speci/ic!#ion (ii#s0

Cus#oer Ser)ice Represen#!#i)es ro(e is #o pro)i*e cus#oer ser)ice suppor# +, o+#!inin"1 !n!(,-in"

!n* )eri/,in" #'e !ccur!c, o/ or*ere* in/or!#ion0 To ini#i!#e !n* ip(een# correc#i)e !c#ion !s nee*e*

in or*er #o ensure #'!# !n e;ce((en# s#!n*!r* o/ ser)ice !n* 'i"' (e)e( o/ cus#oer s!#is/!c#ion is

!in#!ine*0 An* #o pro)i*e op#i!( cus#oer ser)ice usin" Gipi s,s#e !n* Cus#oer ser)ice

!n!"een# s,s#es0

%e i*en#i/ie* #'e (e)e( o/ pro+(es in #'e cus#oer ser)ice cen#re /!ce* +, #'e cus#oers /ro our C0S0R0 s#!//s !ccor*in" #o #'eir cop(!in#s !n* 6e '!)e c'osen #o e(iin!#e #'e0

1.# e Mesure: D!#! co((ec#ion

T'e "roup co((ec#e* s!p(es o/ 433 cus#oers se(ec#e* #o represen# #'e o)er!(( popu(!#ion0 A

:ues#ionn!ire '!s +een use* /or *!#! co((ec#ion 6i#' i*en#i/ie* 5 !in pro+(es !ssoci!#e* 6i#'

cus#oer ser)ice o/ 9ARA +, #'e C0S0R #e!$

!0 S#!// cooper!#ion

+0 S&i((s o/ #'e s#!//

c0 Tie #!&en #o so()e #'e pro+(es

*0 He(p pro)i*e* +, #'e s#!//

e0 Cus#oers s!#is/!c#ion o/ #'e C0S0R0

T'e resu(#s o/ #'e :ues#ionn!ires !re "i)en in T!+(e 4 +e(o6$

T!+(e 4$ Cus#oers Responses

uestions 0esponses in NO 0esponses in 2S

Cooper!#ion 53 34

S&i(( 53 53

Tie J3 43

He(p 83 ?3

S!#is/!c#ion ?3 83

T'e !+o)e #!+(e s'o6s #'e percen#!"e o/ #'e responses !s pro)i*e* +, #'e respon*en#s0

Respon*en#s r!#e #'e cooper!#ion !n* s&i((s 53 e!c' in +o#' ,es !n* no co(un0 Ho6e)er1

respon*en#s !re s#ric# in r!#in" #'e #ie e(een# i0e01 J3 percen# s!, no response !n* 43 percen# s!,

,es responses0 For#, percen# respon*en#s !re no# s!#is/ie* +, #'e proper 'e(p pro)i*e* +, #'e

C0S0R0 s#!//s0 To represen# #'e responses 6i#' no1 in #'e P!re#o c'!r#1 #'e sc!(e o/ 3=43 poin#s 6!s

se(ec#e* s'o6n in #'e Fi"ure 70

T!+(e 2$ Occurrin" Sc!(e

Pro,lems Occurring Scale

Cooper!#ion 5S&i(( 5

Tie J

He(p 8

S!#is/!c#ion ?


12/20

Si; si"! #ec'ni:ues '!)e +een use* in #'is s#u*,1 !n* P!re#o c'!r# is #'e #ec'ni:ue use* /or e;p(!inin"

#'e pro+(es0 T'e pro+(es !re in*ic!#e* !"!ins# ! sc!(e o/ in#ensi#, e0"0 in our s#u*,1 #'e sc!(e se# 6!s

3=430 3 is #'e (e!s# in#ense !n* 43 +ein" #'e os# in#ense )!(ue o/ pro+(e0 T'ese c'!r#s 'e(p #o

+re!&*o6n ! pro+(e in#o #'e re(!#i)e con#ri+u#ions o/ i#s coponen#s0 T'e, !re +!se* on #'e coon

epiric!( /in*in" #'!# ! (!r"e percen#!"e o/ pro+(es !re *ue #o s!(( percen#!"e o/ c!uses0

5igure ): Pareto Chart 1

T'e P!re#o c'!r# in Fi"ure 7 s'o6s #'e (e)e( o/ C0S0R0 pro+(es in #'e cus#oer ser)ice cen#re0

Pro+(es 6ere c(!ssi/ie* in 5 !in c!#e"ories 6'ic' !re$

• Cooper!#ion o/ #'e s#!//

•

S&i((s o/ #'e s#!// • Tie #!&en #o so()e #'e pro+(e

• He(p pro)i*e*

• Cus#oer S!#is/!c#ion

A s!p(e o/ 433 cus#oers 6!s #!&en0 T'e /re:uencies o/ #'ese pro+(es !re$

• Cooper!#ion$ 5

• S&i(($ 5

• Tie$ J

• He(p$ 8

• S!#is/!c#ion$ ? Ou# o/ 43T'ese /re:uencies represen#e* #'e *!#! in #'e /or o/ #'e c'!r#0 T'e c'!r# s'o6s #'!# #'e !.or pro+(e

in #'e cus#oer ser)ice cen#re encoun#ere* +, #'e cus#oers is #'e #ie #!&en #o so()e #'e pro+(e 6i#'

#'e !;iu )!(ue o/ J secon* !.or pro+(e is #'e cus#oers s!#is/!c#ion o/ #'e ser)ice o/ #'e cen#re

6i#' #'e )!(ue o/ ? ou# o/ 430 T'e C0S0R0 s#!// cooper!#ion !n* s&i((s re:uire* !re nee*e* #o +e

!**resse*0 Bo#' o/ #'ese '!* ! )!(ue o/ 5 e!c'0

L!s# pro+(e 6!s #'e 'e(p nee*e* +, #'e cus#oers1 6i#' #'e )!(ue o/ 8 ou# o/ 430

1.) e Anal*6e: T'is s#!"e ser)e* !s ! "ui*e(ine /or 9ARA #o o+ser)e curren# per/or!nce posi#ion1

!n* con*i#ion #o /or ! +!se(ine !ssessen# o/ per/or!nce /ro #'e c!uses o/ #'e *e/ec#s0 In !**i#ion1

i# pro)i*es #'e !n!"een# !n* process e;ecu#i)es 6i#' in/or!#ion !+ou# c!uses !n* in/(uence o/ #'e

pro+(es0 T'e !in #oo(s use* 6!s #'e c!use !n* e//ec# !n!(,sis *i!"r! see Fi"ure 8 #o *e#erine

c!uses o/ pro+(e0 An* #o *e#erine !n* !ssi"n in/(uence #o #'e i*en#i/ie* c!uses0 A(so #o r!n& #'e

c!uses !ccor*in" #'eir in/(uence #o #'e pro+(e0


13/20

T'e C!uses 6ere re(!#e* #o #'e !)!i(!+i(i#, o/ s#!//1 !ssis#!nce nee*e*1 consu(#in" ore #'!n 4

represen#!#i)e1 u(#ip(e con#!c# #o cus#oer ser)ice cen#re1 cus#oers s!#is/!c#ion1 #r!inin"1 6or&ers

e;perience !n* e*uc!#ion0

Cus#oer S!#is/!c#ion

Cooper!#ion o/ #'e s#!//

A)!i(!+i(i#, o/ s#!// T'e (e)e( o/ pro+(es

in cus#oer #'e

ser)ice cen#re0

5igure -: Cause and %%ect Anal*sis

"a,le 3: 0an7 o% (n%luence o% Pro,lems

Pro,lems (n%luence

40 A)!i(!+i(i#, o/ s#!// 4

20 Assis#!nce nee*e* )4

70 Consu(#in" ore #'!n 4 represen#!#i)e 14

80 Mu(#ip(e con#!c# #o #'e cen#re )4

50 Cus#oers s!#is/!c#ion 14

?0 E*uc!#ion1 Tr!inin" E;perience #4

1.- e (mprove: For ipro)een#1 #'e /ocus is #o #re!# #'e *e#!i(s *e/ec#s !n* *e)e(op #'e propose*

so(u#ion on #'e +!sis o/ our /in*in"s1 !n* #'ere !re soe recoen*!#ions /or 9ARA C0S0R0 s#!//s /or

+e##er cus#oers s!#is/!c#ion i0e01

i Cooper!#ion o/ #'e s#!// is )er, ipor#!n# especi!((, in #'is &in* o/ sec#or 6'ere #'e 6'o(e

+usiness en#ire(, *epen*s upon cus#oers posi#i)e /ee*=+!c& !n* s!#is/!c#ion (e)e(1 !s !n,

o#'er !(#ern!#i)es c!n e!si(, +e o+#!ine* /ro #'e cop!n,s cope#i#ors0

ii C0S0R0 s#!//s !# #'e cus#oer ser)ice cen#ers s'ou(* +e #r!ine* enou"' so #'!# #'e, c!n *e!(

+e##er 6i#' cus#oers !ccor*in" #o #'eir speci/ic pro+(es0 T'ere s'ou(* +e iniu

response #ie #o cus#oers pro+(es0 T'is c!n !"!in incre!se #'e cre*i+i(i#, o/ 9ARA !s

cop!re* #o o#'er /!s'ion c'!in cop!nies0

iii Enou"' !ssis#!nce !n* 'e(p is nee*e* #o +e pro)i*e* #o #'e ne6 !s 6e(( !s #'e e;is#in"cus#oers0 T'is 6i(( (e!* #o ore cus#oers s!#is/!c#ion !n* ore us!"e o/ #'e cus#oer

ser)ice cen#re0

i) S#!// o/ #'e cus#oer ser)ice cen#re s'ou(* +e !)!i(!+(e /or !ssis#!nce !n* 'e(p1 #'is c!n

incre!se cus#oer #rus# on #'e re(i!+i(i#, o/ #'e cen#re !n* en'!nceen# o/ #'e cop!n,s

/in!nci!( "!in0

) Cus#oer ser)ice cen#re c!n /o((o6 si; si"! !ppro!c'es #o !n!"e #'e e;is#in" cus#oers

!s 6e(( !s !##r!c#in" ne6 ones0 T'is 6i(( no# on(, ipro)es processes +u# 6i(( !(so (e!* #o

s#ron" cus#oer +!se1 cus#oer s!#is/!c#ion !n* /in!nci!( +ene/i#s0

1.3 e Control: In #'is s#!"e1 ! :ues#ionn!ire '!s +een use* !"!in /or *!#! co((ec#ion on #'e (e)e( o/ #'ei*en#i/ie* 5 !in pro+(es !ssoci!#e* 6i#' cus#oer ser)ice o/ 9ARA +, #'e C0S0R #e! !/#er #'e

ipro)een# e!ns '!)e +een ip(een#e*0 T'ese *!#! #!+(e !c#e* !s ! "ui*e(ine #o pre)en# ro(e +!c&

o/ process in #'e /u#ure0 Moreo)er1 *ocuen#!#ion o/ )!ri!#ion c!uses !n* 'o6 #'e ipro)een#s 6ere

c!rrie* ou# 6i(( +e ins#i#u#ion!(i-e !s #'e cop!n,s cu(#ure or s#!#e o/ in*0 Es#!+(is'in" re:uire*

kills of te

upportrequired

+onsulting more tan one

+o

ntact tote centremultipletimes 7ducation

raining

Borkers e&perience


14/20

#r!inin"1 !n* incen#i)e pro"r!s !re #'e !in recoen*!#ion #o insure process ipro)een# con#ro(

/or #'e or"!ni-!#ions per/or!nce1 e//ec#i)eness1 !n* i!"e in #'e /u#ure0

8e%ore (mprovement A%ter (mprovement

uestions 0esponses in

NO

0esponses in

2S

uestions 0esponses in

NO

0esponses in

2S

Cooper!#ion 53 53 Cooper!#ion 25 >5

S&i(( 53 53 S&i(( 23 3

Tie J3 43 Tie 83 ?3He(p 83 ?3 He(p 73 >3

S!#is/!c#ion ?3 83 S!#is/!c#ion 23 3

T'e success o/ #'is Si; Si"! pro.ec#s !re *ue #o i#s resu(#s orien#!#ion1 *!#! *ri)en !n* !+i(i#, #o !(i"n

#'e "o!(s 6i#' o+.ec#i)es !cross #'e or"!ni-!#ions #o ipro)e #'e /in!nci!( !n* cus#oer s!#is/!c#ion0

2. Initiate or describe reengineering pro0ect

4usiness Process Reengineering

Business Process Reen"ineerin" in)o()es #'e r!*ic!( re*esi"n o/ core +usiness processes #o !c'ie)e

*r!!#ic ipro)een#s in pro*uc#i)i#,1 c,c(e #ies !n* :u!(i#,0 In Business Process Reen"ineerin"1

cop!nies s#!r# 6i#' ! +(!n& s'ee# o/ p!per !n* re#'in& e;is#in" processes #o *e(i)er ore )!(ue #o #'e

cus#oer0 T'e, #,pic!((, !*op# ! ne6 )!(ue s,s#e #'!# p(!ces incre!se* ep'!sis on cus#oer nee*s0

Cop!nies re*uce or"!ni-!#ion!( (!,ers !n* e(iin!#e unpro*uc#i)e !c#i)i#ies in #6o &e, !re!s0 Firs#1#'e, re*esi"n /unc#ion!( or"!ni-!#ions in#o cross=/unc#ion!( #e!s0 Secon*1 #'e, use #ec'no(o", #o

ipro)e *!#! *issein!#ion !n* *ecision !&in"0

5lements of Reengineering


15/20

6ow 4usiness Process Reengineering wors7

Business Process Reen"ineerin" is ! *r!!#ic c'!n"e ini#i!#i)e #'!# con#!ins /i)e !.or s#eps0 %'ic'

!re$

• Re/ocusin" cop!n, )!(ues on cus#oer nee*s

• Re*esi"nin" core processes1 o/#en usin" in/or!#ion #ec'no(o", #o en!+(e ipro)een#s

• Reor"!ni-in" +usiness in#o cross=/unc#ion!( #e!s 6i#' en*=#o=en* responsi+i(i#, /or ! process

• Re#'in&in" +!sic or"!ni-!#ion!( !n* peop(e issues

• Ipro)in" +usiness processes !cross #'e or"!ni-!#ion

8ses of 4usiness Process Reengineering for Companies7

Cop!nies use Business Process Reen"ineerin" #o ipro)e per/or!nce su+s#!n#i!((, on &e, processes

#'!# ip!c# cus#oers0 Business Process Reen"ineerin" c!n$

• 0educe costs and c*cle time. Business Process Reen"ineerin" re*uces cos#s !n* c,c(e #ies +,

e(iin!#in" unpro*uc#i)e !c#i)i#ies !n* #'e ep(o,ees 6'o per/or #'e0 Reor"!ni-!#ion +,

#e!s *ecre!ses #'e nee* /or !n!"een# (!,ers1 !cce(er!#es in/or!#ion /(o6s1 !n* e(iin!#es

#'e errors !n* re6or& c!use* +, u(#ip(e '!n*o//s0• (mprove qualit*. Business Process Reen"ineerin" ipro)es :u!(i#, +, re*ucin" #'e

/r!"en#!#ion o/ 6or& !n* es#!+(is'in" c(e!r o6ners'ip o/ processes0 %or&ers "!in responsi+i(i#,

/or #'eir ou#pu# !n* c!n e!sure #'eir per/or!nce +!se* on prop# /ee*+!c&0

2. (escribe a radical improvement initiative w!ic! could drastically improvec!aracteristics of a process of an organization.

0eengineering: "rans%orming (ntel9s Suppl* Chain to Meet Mar7et Challenges.

5igure 1. Multiple generations o% process technolog* in highvolume manu%acturing and the glo,alnature o% (ntel9s manu%acturing ,usiness add comple;it* to the suppl* chain.

As s'o6n in Fi"ure 21 #'ere !re !(so !n, in*us#r,= !n* !r&e#=*ri)en supp(, c'!in c'!((en"es0

E;p!n*in" pro*uc# o//erin"s !n* s'rin&in" pro*uc# (i/e c,c(es1 ne6 !n* s'i/#in" !r&e# con*i#ions1

eer"in" re"u(!#ions1 !n* ore *e!n*in" cus#oer e;pec#!#ions re:uire #'!# In#e( con#inue #o ipro)e


16/20

on e;is#in" supp(, c'!in processes 6'i(e +ein" !+(e #o :uic&(, !*!p# #o ne6 supp(, c'!in +usiness

re:uireen#s !n* cre!#e so(u#ions #o suppor# #'e0

5igure #. Mar7et pressures require an e%%icient and agile suppl* chain.

*upply C!ain 5volution

%'i(e +ein" uc' c(oser #o #'e corpor!#e supp(, c'!in )ision i((us#r!#e* in Fi"ure 7 +e(o61 #'e

#r!ns/or!#ion #o ip(een# !**i#ion!( IT=en!+(e* so(u#ions procee*s #o suppor# c'!n"es in !r&e#

con*i#ions !n* ne6 !r&e#s In#e(s pro*uc# 6i(( ser)e in #'e /u#ure0

Eer"in" supp(, c'!in c'!((en"es inc(u*e #'e /o((o6in"$

A con#inu!((, incre!sin" por#/o(io o/ pro*uc#s !n* ser)ices1 suc' !s U(#r!+oo& *e)ices1 #!+(e#s1 s!r#

p'ones1 !n* e+e**e* #ec'no(o"ies

Issues re(!#e* #o #'e "(o+!( supp(, c'!in1 inc(u*in" "o)ernen# re"u(!#ions1 !)!i(!+(e in/r!s#ruc#ure1

6or&er (oc!#ion1 en)ironen#!( sus#!in!+i(i#,1 !n* soci!( e*i!

Eer"in" !r&e#s !n* e;p!n*in" cus#oer re!c'0

To !**ress #'ese c'!((en"es1 In#e( (oo& #o ip(een# !"i(e !n* !*!p#!+(e IT so(u#ions #'!# c!n +e use*

!cross u(#ip(e supp(, c'!ins0 C(e!r i*en#i/ic!#ion !n* *e/ini#ion o/ +usiness re:uireen#s /or #'e

)!rious supp(, c'!ins1 inc(u*in" ser)ice (e)e(s !n* supp(, c'!in o*e(s1 #'is 6i(( !((o6 In#e( IT #o +e

ore e//ec#i)e in *e(i)erin" ro+us# so(u#ions #'!# c!n +e :uic&(, c'!n"e* #o suppor# !r&e# con*i#ions

!n* cus#oer re:uireen#s0


17/20

Fi"ure 70 In#e(s supp(, c'!in )ision +ui(*s on e!r(, ipro)een#s #o processes !n* responsi)eness0

"a,le 1. 0esults o% ("ena,led suppl* chain trans%ormation

As #'e !r&e# con#inues #o c'!n"e !n* In#e(s +usiness e)o()es !n* !cce(er!#es1 #'ere is con#inu!#ion #o

ip(een# /(e;i+(e1 !*!p#!+(e1 !n* e;p!n*!+(e IT=en!+(e* so(u#ions #'!# 6i(( /ur#'er #r!ns/or In#e(s

supp(, c'!in !n* incre!se In#e(s cope#i#i)eness0


18/20

ASS($NMN" 3. &ean s*stems

Ip(een# (e!n pro.ec# /or A!n or"!ni-!#ion or B Visi# c!/ or res#!ur!n# or o#'er re(e)!n# or"!ni-!#ion

!n* i*en#i/, )!(ue or"!ni-!#ions pro)i*es1 prep!re )!(ue s#re! !p /or or*er *e(i)er, process +,

c!re/u((, e!surin" #ie0 Propose 6'!# #,pes o/ po#en#i!( 6!s#e !, cons#i#u#e #'e process ,ou !re

!ppin"0 Coen# on 6!s#e e(iin!#ion e!ns0

Op#ion B

1. Identify value you are providing for customers

404 i*en#i/, cus#oer re:uireen#s /or ! pro*uc#ser)ice

Pro*uc#ser)ice Cus#oer re:uireen#

M!r&e# M!;i! A)!i(!+i(i#, o/ Pro*uc#

Fres'ness o/ Pro*uc#Discoun# /or Pro*uc#

%e(( or"!ni-e* !r&e# in #ers / pro*uc# !rr!n"een#

Di//eren# r!n"e !n* +r!n*s o/ Pro*uc#

Goo* cus#oer ser)ice re(!#ions in #ers o/ cop(!in#

1.2 Identify interested parties and t!eir requirements for your organizationand product$service


Go)ernen#

Foo*1 'e!#' !n* o#'er re"u(!#or, "o)ernen#!"encies

%'o(esoeness !n* Fres'ness o/ Pro*uc#

Pro*uc# s'ou(* +e 6'!# i# c(!is #o +e on #'e p!c&e#1 6r!p or con#!iner Pro*uc# s'ou(* c!rr, #'e !ppro)e* price r!n"e i0e cus#oers s'ou(* no# +e

e;p(oi#e*

Appro)e* pro*uc#s s'ou(* +e so(*

Foo* !n* Be)er!"e

Ven*ors

A)!i(!+i(i#, o/ Pro*uc#

Discoun#1 especi!((, 6'en (!r"e !n* +i" :u!n#i#ies !re +ou"'#

Re6!r* /or cus#oer (o,!(#,Q i/ #'e, '!)e +een +u,in" /ro ,ou o)er ! (on"

perio* o/ #ie

%'o(esoeness !n* Fres'ness o/ Pro*uc#s

Dis#ri+u#ors !n*

Supp(iers

Lo6er Pricin"

Prop# response #o or*ers

Respec# /or #'e #ers o/ si"ne* p!r#ners'ip !"reeen#

A)!i(!+i(i#, o/ *i//eren# +r!n*s !n* c!p!ci#, #o "e# pro*uc#s +!se* on 'i"'

cus#oer *e!n*0

1.3 Identify customer9s requirements at dierent touc!points


Arri)e S'opM!r&e# %i*e en#r!nce

E!se o/ !ccess #o #ro((e,

S!/e !n* secure p(!ce #o &eep i#es 6i#' cus#oer !# !rri)!( in #'e s'op

C(e!n !n* none s(ipper, /(oor !# #'e en#r!nce especi!((, *urin" 6e# se!sonsSe(ec# Pro*uc# E!se o/ !ccess #o pro*uc#s

Di//eren# )!rie#, !n* +r!n*s o/ pro*uc#

C(e!r (!+e((in" o/ pro*uc# ro6 !n* price #!"

Free p!ss!"e !n* !is(e


19/20

P!,en# F!s# p!,en# 6i#'ou# 6!i#in" on #'e :ueue /or (on"

A)!i(!+i(i#, #o p!, in *i//eren# e#'o*s C!s' or C!r*

P!,en# !*e /or pro*uc# s'ou(* +e #'e s!e price o/ pro*uc# *urin" se(ec#ion

Frien*(iness o/ #'e ep(o,ee !# p!,en# poin#

Ne"o#i!#e Pro+(es Fee*(ines !n* po(i#eness o/ cus#oer re(!#ion !"en# !# poin# o/ cop(!in#

%i((in"ness #o c'!n"e pro*uc# i/ cop(!ins !re "enuine

%i((in"ness #o re/un* i/ cop(!ins !re "enuine !n* cus#oers see&s ! re/un*

Tie(, !n* Prop# response

2. :alue stream mapping and waste identi&cation

204 Prep!re )!(ue s#re! !p o/ ,our cop!n, )!(ue c'!in or o#'er process ,ou 6!n# #o Lean.

4in 73secs 5ins 45ins

Arri)e M!r&e# Pic& Tro((e, Se(ec# /irs# Pro*uc# Se(ec# o#'er Pro*uc#s M!&in" P!,en#

%M 43 ins

%!i#in" Tie 43 inu#es

Ac#i)i#, #ie 4 73secs 5 45 24in 73secs 22inu#es

2.2 Identify waste

"*pe o% waste +escription Compan* speci%ic waste

%!i#in" #ie %!i#in" #o !&e p!,en# 14 minutes

De/ec#s Use o/ !#eri!(1 (!+or !n* c!p!ci#,

/or pro*uc#ion o/ *e/ec#s1 sor#in"

ou# +!* p!r#s or 6!rr!n#, cos#s 6i#'

cus#oers

;pired product< open electronic ,o;es<

wrong tagging o% price

O)erpro*uc#ion Pro*ucin" ore #'!n #'e *e!n* o/

cus#oers1 resu(#in" in unnecess!r,

in)en#or,1 '!n*(in"1 p!per6or&1

6!re'ouse sp!ce

&eading to 7eep e;pired product


20/20

3. Initiation of +ow

Propose e!ns o/ e(iin!#ion o/ i*en#i/ie* 6!s#e in )!(ue c'!in or processes0 I/ necess!r, use c!use=

e//ec# *i!"r! #o i*en#i/, c!uses o/ p!r#icu(!r #,pes o/ 6!s#e0

aste ;tent o%

waste =min<< other>

Mean o% elimination

Coo&e* or prep!re* /oo* s!(!*s1or

/oo*1)e"e#!+(es1+e)er!"es

?3 Coo&in" or prep!re in (ess !ou# or e!sur!+(e

!oun#

%!s#e o/ #ie in :ue!

7 M!&in" ore oun#er o/ se(/ser)ice coun#ers

1e;press coun#ers nu+er increse*

Too uc' in)en#or,

23 O)ers#oppin"1 #oo uc'#ie #o /in* pro*uc#0

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