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Sustainable success  through consequent customer orientation Controller Congress of the Baltic States October, 21 st , 2011
Definition of a Business Process ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],What is a business process? Customer Customer Customer
Different levels of processes Decision Activity 2 Activity 3 Defined trigger with quality hurles Clear and processable activities (process monitoring, workflow management) Clear target with planned output Activity 1 Output Input Customer requirements fulfilled Customer requirements exist and are analyzed Customer level Management level Performance level Customer requirements are  known to all all persons involved in the process , link to certain activities is transparent I (Input) P (Performance) O (Output) Activity 4 Activity 5 Parallel „flow“ of Products, Material, Information, Documents,… Target  orientiation Steering
Definition of Flexibility and Efficiency ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Input = Resources    costs Output    Value / turnover Efficiency =  Output Input To calculate the efficiency, we need to have the same unit, e.g. € or hours
The basic idea ,[object Object],The more efficiency a company wants to achieve, the more cost reduction they need. At the lowest cost and at given market prices, they earn most money. fixed costs € x variable costs sales break-even What happens to the Flexibility?  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],cost quality time Conclusion : We have to decide what degree of effectiveness we need to be competitve enough and what degree of flexibility we need to be able to react adequately to fluctuations in market volume, product requirements, etc.
Wider market requires more effort, but makes the company more robust ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],+ - ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Many specialities for all kinds of usage one product for main market ,[object Object],[object Object],[object Object],[object Object]
Practical Example ,[object Object],[object Object],[object Object],[object Object],[object Object],Conclusion: The decision whether to be flexible or effective depends on the positioning in the market.
Positioning Outsourcing Adjustment/ Networking Adjustment/ Networking Strategic Positioning: Definition of own company role and selection of partners and markets Suppliers Customers Own Company Price Leader Technology Leader
Diffuse market costs time and money Target market Target market ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],You need to know who your customer is and what the requirements are Conclusion: Customer orientation makes a company more flexible and more effective
Effectiveness and Flexibility through customer orientation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Customer orientation in charging external customer Special effort needs to be extra charged    customer / process specific cost calculation If customer is not willing to pay the cost-covering price, processes have to be streamlined or eliminated     process optimization
Methods of process optimization Methods of process optimization, e.g.: + process insourcing and outsourcing, etc. reduce activites Reduce interfaces No loops Parallel instead of sequential Efficiency of individual activities [in min.] Eliminate bottle-necks Clear overall responsibility Direct feedback on each activity 3 2 4 3 1 2,5    ?
Cost-reduction in processes enhances efficiency Value creating Neutral Unplanned neutral Value Reducing The total cost of business processes can consist of: Statement: The more customer oriented the business processes are, the lower are the total costs (at given flexibility) e.g. re-work, unnecessary movements e.g. waiting times  e.g. internal transports e.g. design, assembling
Wrap-up ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],   Customer orientation is key to achieve as well flexibility and cost-effectiveness Short film on process management (8  mins)
[object Object],www. konsequent-sein.de

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6. 21.10.11-frank ahlrichs-sustainable success

  • 1. Sustainable success through consequent customer orientation Controller Congress of the Baltic States October, 21 st , 2011
  • 2.
  • 3. Different levels of processes Decision Activity 2 Activity 3 Defined trigger with quality hurles Clear and processable activities (process monitoring, workflow management) Clear target with planned output Activity 1 Output Input Customer requirements fulfilled Customer requirements exist and are analyzed Customer level Management level Performance level Customer requirements are known to all all persons involved in the process , link to certain activities is transparent I (Input) P (Performance) O (Output) Activity 4 Activity 5 Parallel „flow“ of Products, Material, Information, Documents,… Target orientiation Steering
  • 4.
  • 5.
  • 6.
  • 7.
  • 8. Positioning Outsourcing Adjustment/ Networking Adjustment/ Networking Strategic Positioning: Definition of own company role and selection of partners and markets Suppliers Customers Own Company Price Leader Technology Leader
  • 9.
  • 10.
  • 11. Methods of process optimization Methods of process optimization, e.g.: + process insourcing and outsourcing, etc. reduce activites Reduce interfaces No loops Parallel instead of sequential Efficiency of individual activities [in min.] Eliminate bottle-necks Clear overall responsibility Direct feedback on each activity 3 2 4 3 1 2,5    ?
  • 12. Cost-reduction in processes enhances efficiency Value creating Neutral Unplanned neutral Value Reducing The total cost of business processes can consist of: Statement: The more customer oriented the business processes are, the lower are the total costs (at given flexibility) e.g. re-work, unnecessary movements e.g. waiting times e.g. internal transports e.g. design, assembling
  • 13.
  • 14.