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Workload management and Business process improvement (BPI) - Using the Theory of Constraints (ToC), Lean, Six Sigma and Kaizen


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Optimise-GB provides you with a presentation on workload management and business process improvement (BPI). This presentation pulls together the salient points of lean, six sigma, kaizen and theory of constraints (ToC). This presentation introduces you to Quadrant BPI. It is called Quadrant as the business process improvement looks at four key areas: One being cost. Two being time. Three being quality . Four being capacity. The purpose of Quadrant BPI is to improve the speed and quality whilst looking at ways to reducing constraints and costs to ensure value for money in product or service delivery. The presentation also looks at a live example using the authorising and payment of supplier invoices as the subject matter. If you have any questions on and visit for more details. Many thanks Simon Misiewicz

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Workload management and Business process improvement (BPI) - Using the Theory of Constraints (ToC), Lean, Six Sigma and Kaizen

  1. 1. Workload management and Business process improvement (BPI) Using the Theory of Constraints (ToC), Lean, Six Sigma and Kaizen Doing the right things effectively and efficiently
  2. 2. Quadrant BPI Case load management and business processes are interlinked around four perspectives:
  3. 3. Quadrant BPI Lean Six Sigma
  4. 4. Knowledge Base <ul><li>Kaizen: is a continuous improvement discipline that identifies and eliminates waste and increase workforce productivity </li></ul><ul><li>Kaizen uses Deming’s PDCA as guide for improvement </li></ul><ul><li>Plan what you do and how you do it </li></ul><ul><li>Do the work </li></ul><ul><li>Check that the process is correct </li></ul><ul><li>Act on the defects and issues </li></ul>
  5. 5. Time focuses on how long a piece of work takes to complete. This also focuses on waiting time for others to complete their task. Quadrant BPI
  6. 6. A focus should be applied to the cost of work including internal and external labour, purchased goods and overheads that are allocated. This is a good focus for VFM or Value for Money Quadrant BPI
  7. 7. Knowledge Base Lean <ul><li>Lean: is centred around creating value for the end customer by removing waste and improving the efficiency of work. </li></ul><ul><li>Lean is a pull system so you only perform work when customers ask, there is no reason to build up inventory of work as a result of economies of scale – Just In Time (JIT) </li></ul><ul><li>Do what you do faster </li></ul><ul><li>Do what you do only when asked </li></ul><ul><li>Do what you do efficiently </li></ul>
  8. 8. Quality focus looks at the work itself to identify defects / errors and aims to eliminate them before reaching the end customer or the next person in the chain of events Quadrant BPI
  9. 9. Knowledge Base Six Sigma: seeks to improve the quality of outputs by identifying and removing the causes of defects. The six sigma methodology follows a process improvement: DMAIC - Define your goals / objectives - Measure your work processes - Analyse the way work is done and the errors / issues faced - Improve what you do - Control the processes using error proofing techniques to ensure errors do not re-occur Six Sigma
  10. 10. Capacity looks at the resources required to complete the job without bottle necks stopping work, such as waiting time on management approval or waiting on other departments to clear their backlog Quadrant BPI
  11. 11. Knowledge Base <ul><li>Theory of constraints (ToC) </li></ul><ul><li>The TOC process seeks to identify the constraint and restructure the rest of the organisation around it, through the use of the Five Focusing Steps. </li></ul><ul><li>Identify the constraint </li></ul><ul><li>Exploit the constraint </li></ul><ul><li>Subordinate all other processes </li></ul><ul><li>Elevate the constraint </li></ul><ul><li>Go back to step 1 </li></ul>
  12. 12. Example – Authorising and paying a purchase invoice Start: Worker Supplier 5 – Purchase ledger add invoice to system 1 - Phone in order 2 - Deliver goods and invoice 6 - Pay invoice 3 - Send invoice to manager 4 – Authorise invoice and send to purchase ledger
  13. 13. Example – Authorising and paying a purchase invoice 7 Wastes analysis - Unnecessary transportation of invoices to different locations - Too much motion opening letters and sending letters - Risk of defects of wrong orders being made, invoices being paid twice - Too much waiting time for manager approval - Inventory building up of invoices waiting for approval - Overproduction and inspection and review of paper work - Over processing of the same information into different systems Lean
  14. 14. Quality risk / defect analysis - Paper work from supplier different to the original order (interpretation) - Paper work lost in the post or sent to the wrong person - There may not be enough money left in the budget to buy goods - Invoices incorrectly entered into the purchase ledger system - Payments made to supplier not the same as the invoice (cheques) Example – Authorising and paying a purchase invoice Six Sigma
  15. 15. Example – Authorising and paying a purchase invoice Constraints analysis / bottle necks - Too many invoices for manager to approve, therefore not done - Too many invoices for purchase ledger to enter onto the system Adding resources would add cost, removing bottle necks and inefficiencies increase productivity
  16. 16. Example – Authorising and paying a purchase invoice Solution!!! Start: Worker Supplier 1 - Create Purchase order (electronically) 3 - Deliver goods and insert invoice electronically into purchase ledger 5 – Purchase ledger automatically checks PO receipt and automatically creates BACS payment 2 – Authorise order on the system, send electronic order to supplier’s back office 4 – Receipt delivery into PO system
  17. 17. Example – Authorising and paying a purchase invoice Improvements: - Reduces errors in paper work - Eliminates paper files being lost - Eliminates postage costs - Reduces administration time to of approval - PO’s only approved with sufficient budget - Reduces labour costs of purchase ledger - Improves value for Money of overall service - Payments only made if PO system is correct
  18. 18. Where to start 1 – Process map your activities using post it notes and brown wall paper 2 – Document the flow of work with process times, waiting times and costs
  19. 19. Where to start 3 – Identify the issues using the principles of Lean, Six Sigma and ToC Obtain statistical evidence that the issues exist
  20. 20. Where to start 4 – Put a value against each issue whether that be time, cost or quality and rank them. Use the pareto rule and focus on those issues that accumulate to 80% 5 – Work out the solutions and implement them
  21. 21. Written References
  22. 22. Video References Theory of constraints (ToC) Lean Six Sigma Kai Zen
  23. 23. <ul><ul><li>For other solutions </li></ul></ul><ul><ul><li>Contact </li></ul></ul><ul><ul><li>Simon Misiewicz through </li></ul></ul><ul><ul><li>Web: </li></ul></ul><ul><ul><li>Email: [email_address] or </li></ul></ul>