SCM 300 mod 9

What is Process
Any activity or group of activities that takes an IMPUT, ADDS VALUE to it, and provides an OUTPUT to an internal or external customer
– Processes use an Organization’s RESOURCES to provide definitive results
-EX: pizza recipe=business process
Relationship to Supply Chain Management
– Made up of a series of INTERCONNECTED and INTERDEPENDENT processes
-Productivity – Managing Inputs and Outputs at a smaller scale
Importance of Business Processes
ties to growth, quality, design and improvement
Three requirements of a good process
GOOD INTENTIONS: Goal Oriented, Stakeholders considered, Effective and Efficient, Outputs are desired
REPRODUCIBLE RESULTS: Documented and Easily Understood. Adaptability.
MEASURABLE AND MANAGEABLE: Entire system considered. Accountability, good metrics, easy to identify problems.
Important aspects of “intentions and parameters”
-goals
stakeholders (involved: customers, workers)
-define values (value to stakeholders)
-system parameters (consider co-dependent process BIG PIC)
-define success (outcomes in detail)
-efficient and effective (max outputs min inputs
In-class example of Ticket Brokerage
what are MY GOALS and who are my STAKEHOLDERS
Common reasons for bad processes
NEVER WAS GOOD
-ambiguity: goals clearly not understood
-misalignment: goals and actions not aligned
-miscommunication: employees don’t understand goals
USED TO BE GOOD
-market evolution: Customer’s needs have changed
-miscommunication: New employees do not understand goals
LIMITATIONS
– Development of poor or limited processes: May result in limited capacity, inefficiency, confusion…
-lack of appropriate tools & technology
Cow path theory (and example)
-EX company: computer silicon wafers
– A bad process is created when someone keeps to the same safe routine
– A successful business continues if you learn a faster or better way of doing things
– If steps are important you need to communicate that to the employee, some people try to be good employees by finding easier ways, but sometimes the skip important steps that they never fully knew or understood
Steps in designing a business process
DEFINE GOALS AND PARAMETERS: goals, values, block diagram, establish the scope (DEFINE PROCESS REQUIREMENTS)
DEFINE SUCCESS: define the service, measurement & management considerations
BUILD IT, TEST IT, IMPROVE IT: primary steps detailed, develop a process map, evaluation testing
Block Diagrams vs Business Process Flow Chart
Block Diagrams vs Business Process Flow Chart
Scope
Define process requirements and boundaries. Processes are typically connected to other processes. Where does your process begin and end? BEWARE OF SCOPE INFLATION
Square
task, operation, data collection
Diamond
decision point were multiple flow paths possible
Oval
start/end or entrances/exits to process
Arrow
depicts flow of customer/ material within the process
Square inside Square
Process: Depicts an entire process. Likely depicted in another flowchart
Fat Arrow
movement transportation
Circle
inspection requirement
Bullet
delay in process
Arrow touches Circle
Connector: Output leads to another flow chart or into another flowchart
Value of flowcharts for the organization
Quality control tool
Information technology: capture and store information
Resource management (requirements): employees and managers (skills, training), materials and capital equipment, money
Operational considerations: testing potential failure points in process, waiting line management
Departmental concerns: marketing, finance, and accounting and IT
Swimlane Flowcharts
look at powerpoint
In-class example
Catalog Order Process
Value of Process Improvement
VITAL TO CORPORATE CAREERS
-well-defined goals
-teams and individuals have responsibilities
-measureable results
-implementation
RESUME BUILDER: little stories about your career
CORPORATE CAREER: politics, leverage and capital
Project Management on Careers In-class examples
projects are vital to move forward and be successful. Story EX: about friend had lack of experience, and gained experience by working on projects
Attributes of a good consultant
1.Data collection, data analysis
2.Be creative
3.Have a long-term vision: consider human nature
4.Understand group/ team dynamics for CLIENTS and your TEAMS
5.Understand business imperatives: can you explain change and the benefits of change
Common consulting errors
At Beginning
-assume things
-developing solutions too soon
-listening to the client’s pre-fabricated solutions
During the Project
-utilizing poor surveys – single opportunity
-poorly managed scope inflation
-sticking to a dead end scope
-trying to maintain happiness
In class consulting example
life coach
Detailed understanding of each phase of Business Process Improvement
1. desire state
2. present state
3. gap analysis -gap between desired and present state
4. develop project scope
5. continued collection and analysis
6. develop solutions and recommendations
7. develop and implementation plan
1. Desire State
-Interview – identify objectives, goals and metrics
-primary objectives – What they want
-quantity objectives – How will we measure
-repeat until everyone agrees
2. Present State
– data collection, interviews, and observations
-process maps: documented, recounted (multiple accounts), observed processes
-research, surveys and process data
-utilize metrics from step 1
3. Gap Analysis – Gap between desired and Present State
-why gap exists, consider potential causes
-utilize key metrics and goals to identify size of GAP
-DON’T DEVELOP SOLUTIONS
4. Develop Project Scope
-which gaps will be addresses on this project
-establish goals
– typically looking for maximum results with minimal resources
5. Continued Collection and Analysis
– based on SCOPE – focused data collection, fact gathering…
– Benchmarking – What are others doing? Adapt to your needs
-get feedback
– Ask questions during collection and analysis stage
– Consider what a comprehensive solution would include
6. Develop Solutions and Recommendations
-does this require change
-get feedback early and often throughout project
-solutions client will buy
-implementation plan – phasing in change
7. Develop and Implementation Plan
-how should these ideas be put into action
-ideas don’t sell: consider culture and corporate system
-be specific: timeline, training, metrics, plans for further study
Desired State vs Present State
Desired state: interview – identify objectives, goals and metrics
Present state: data collection, interviews, and observations
Primary steps to consider when selling consulting recommendations
1.List values, objectives, and goals
2.Basic solutions and anticipated benefits
3.Cost-benefit analysis
4.Value to work ratio
5.Does it fit the system
6.Metrics
7.implementation
Service Blueprint
A detailed flowchart of the process used to deliver a service. It identifies the actions of different parties, those steps that are visible and not-visible to the customer, key steps and outcomes, and related and supporting processes.