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    Introduction To Operational Excellence Introduction To Operational Excellence Presentation Transcript

    • Operational Excellence
      Business Process Management
      & Continuous Improvement
      Ahmed Mansour, MD ImproVision Consulting
    • Background.
      The Continuous Improvement Model.
      Managing Business Processes:
      Methodology.
      Identifying Opportunities.
      Improvement Approach.
      Tools and Solutions.
      Role of People in Continuous Improvement
      Contents
    • Economic Crisis limited Revenues growth opportunities, must focus on Cost Efficiency to sustain profits.
      Background
      Revenue
      Cost
      Profit
      2008
      2009
      2008
      2009
      Crisis Growth Opportunity
      Traditional Growth Model
      • Need to survive growing, fierce Global competition.
      • Reducing risks and improving product / Service quality key to sustain success with Customers, Authorities and Investors.
      • Businesses Process Management provides tools to meet these challenges, through the identification of Continuous Operational Improvement Opportunities.
    • Key Concepts of Continuous Improvement
      Doing the Right
      Things
      Customer Focus
      Doing Things
      Right
      Work Process Improvement
      Continuous Measurement
      Fact-based
      Supportive Work
      Environment
      Involving Everyone
      in making it happen
    • What is Six Sigma?
      Six Sigma is a business process improvement approach that seeks to find and eliminate the causes of mistakes or defects that occur in business processes.
      Six Sigma integrates the tools of systems engineering, process thinking, statistical methods and business analysis in a rigorous approach to focus on problems that are of critical importance to customers.
      Outcomes of Six Sigma include enhanced process performance, improved customer satisfaction, and increased financial results.
      Six Sigma has been proven at respected companies across a variety of processes, functions, products, and industries.
      Six Sigma integrates both human and process approaches to business improvement, provides a clear focus on delivering bottom-line results, and applies a systematic, sequential use of quality improvement and statistical tools in an overall approach that finds and eliminates the root cause of problems.
    • What is Six Sigma?
      Business
      Statistics
      Process
      Systems
      Quality
      Change Mgt
      Six Sigma Approach
      Improved Financial Results
      Enhanced Processes
      Satisfied Customers
      Zero Defects
      Reduced Bottlenecks
    • Key Success factors
      Processes
      VISION
      People
      Systems
      …Link People, to Systems, using Processes to achieve Visions!
    • Business Objectives
      Ensure Alignment / Control
      Standardize Organization Processes, Policies and Procedures and ensure common understanding among all employees.
      Provide a consistent performance, measurement and evaluation system.
      Simplify Administrative work
      Establish comprehensive and sound Roles and Responsibilities.
      Minimize effort / time in retrieving needed reference material.
      Improve Visibility and Decision Making
      Improve Management ability to proactively control operation.
      Provide consistent and continuously improving Performance.
      Discover Areas for Improvement
      Assess fit of current Model for Organization Strategies and Industry Best Practices and identify areas for improvement.
    • Improvement Methodology
      Improve
      Define
      Measure
      Analyze
      Control
      D
      C
      I
      A
      M
      Customers for your
      products or services
      identified
      Customer requirements
      defined
      Work process defined
      Baseline
      performance
      measured
      Improvement
      opportunity
      identified or
      confirmed
      (in $ terms)
      Root causes
      of gaps verified
      Solution
      implemented
      Benefits
      captured
      Procedures
      and practices
      in place
      to ensure
      sustained
      process
      performance
      Deliverable
      Characterization
      Optimization
      Sustainment
      Key focus: 1. Measurable and demonstrable bottom-line results
      2. Higher customer satisfaction
      3. Data driven decision making
    • The CI Funnel Approach
      D
      M
      A
      I
      C
      Improve
      Define
      Measure
      Analyze
      Control
    • Gate 1
      Gate 2
      Gate 3
      Gate 5
      Gate Process – Analogy with house build
      Define
      Improve
      Measure / Analyze
      Control
      DMAIC
      Planning
      Design
      Develop
      Close out
      Definition
      Gate 4
      How big is the problem ?
      Develop the specification.
      First view of potential solutions
      A detailed plan is developed. Costs and benefits. Roles and responsibilities
      Are we ready to go ?
      All detailed instructions/ procedures should be ready
      Is there a need ?
      Why ?
      Understand the requirements
      Did we deliver what was required ?
      I want a house.
      Initial ideas - 4 bedrooms,
      3 reception rooms,
      3 bathrooms
      Contractors engaged, detailed design of all rooms and facilities - costs and timings developed
      House is built, ready to move in. Is it sufficiently ready for me to move in ?
      Is the house exactly what I planned? Did it meet all my requirements ? Happy or sad ?
      First ideas of potential options for my house – preliminary costs
      Stage 2
      Stage 3
      Stage 5
      Stage 4
      Stage 1
      PLC
    • Applying the Model
      General Management
      Operational Six Sigma
      Transactional Six Sigma
      Supply Chain
      Operations
      & Logistics
      Marketing
      & Sales
      Business Support
      Marketing / Brand
      Sourcing
      Production
      Finance
      & Accounting
      Purchasing
      Quality Control
      Sales
      HR
      Cost Control
      Warehousing
      Customer Service
      General Administration
      Contract Management
      Distribution
    • Production Process Example
      Production
      Cycle
    • Identifying Opportunities
      Focusing on key opportunities … “The 80/20 Rule”
      Example:
      Cost of Production= Raw Materials+ Additives + Electricity + Electrical items + Mechanical items + Fuels + Lubricants.
    • Improvement Approach
      Significant Production Cost Reduction can be achieved by controlling Raw Material Consumption
      People
      Material
      Ignorance
      Quality
      Handling
      Warehousing
      Excess
      Material
      Speed
      Pressure
      Cleanliness
      Processing
      Equipment
      Methods
    • Performance Improvement Decision:
      Increase Call Centre staff by one person
      Performance Improvement:
      Call Centre Bottleneck Resolved
      Customer Service Process Example
      PROCESS INTELLIGENCE - PREDICTIVE
      BUSINESS PROCESS ANALYSIS SOLUTIONS
      Process Modelling and Simulation
      Process Design
      Engine
      Collaboration
      Engine
      Simulation
      Engine
      015
      120
      120
      075
      Customer requests flow through applications.
      The End to End business process consists of events from many applications.
      The process can be optimized using Modelling and Simulation of the real process data.
      PRODUCTION PROCESSES
      Applications, Technology & Resources
      Events are generated by the applications.
      BPM System extracts these events and transforms them into Process Intelligence data.
      Modelling to Execution
      BPMN Lite Modelling
      Operational Dashboard
      BPM Workflow
      Legacy Application
      Call Centre
      ERM
      ERP
      BPM Systems enable continuous process improvement and support Lean Six Sigma initiatives.
      Simulation of Production Process
      Measure
      Process Analysis
      Engine
      Reporting
      BPMN Model
      PROCESS INTELLIGENCE - REAL TIME & HISTORIC
    • Engaging People in BPM initiatives
      Processes are executed by People, they will make or break any BPM initiative.
      Roles and Responsibilities may be changed significantly by Process Re-engineering.
      Involvement, Buy-in & Empowerment of People is a key success factor.
      Proper Change Management plans must be part of any successful Project.
      Phase 1 Phase 2 Phase 3
      Re-trusting
      Per formance
      Excited
      Shock
      Hopeful/
      Skeptical
      Denial
      Anger
      Relief
      Fear
      Impatience
      Anxiety
      Acceptance
      Confusion
      Undirected Energy
      Time
    • … In a Nutshell
      Cost Control is the answer to Profitability under severe Revenue growth limitations.
      Savings can be made by applying a “DMAIC” approach across all Process areas, to continuously identify opportunities for improvement.
      Significant Cost reduction can be achieved by focusing on the “right” performance issues (80/20).
      BPM System Solutions offer “Enablers” to achieve strategic goals.
      Organization Change Management determines the success of any BPM initiative.
      Operational Excellence is key to sustain competitive position for the Business in today’s economic conditions.
    • Thank You
      Copyright ImproVision Consulting, 2009
    • For more information contact us
      ®
      BRINGING VISIONS TO LIFE!
      56 Palestine street, Maadi, Cairo, Egypt
      Email: info@ImproVision-Consulting.com
      Phone: +2 02 27545773
      Fax: +2 02 27539825
      www.ImproVision-Consulting.com