System thinking: seeing the big picture

1. Systems Thinking: Seeing The Big Picture

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Business Systems and Processes
What Is A System?
Inputs Processes Output

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Business Systems and Processes
What Is A Process?
Customer
Sales Rep
Financing
Credit
Business
Practices
Pricing
Admin
Purchase
req w/
financing
Call IBM
Credit
Request
logged
on paper
Data en-
tered in
computer
Credit
Check
Results
written
on paper
Sent to
BPD
Loan
request
modified
Terms
written on
request
Spread-
sheet data
entered
Interest
rate
written
Sent to
admin
Request
sent to
Credit
Quote
letter
typed
FedEx
to Rep
Quote
Recv'd
Call
customer
Customer
Notified

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Preparation
Step 1: Write down three issues that currently await you
Step 2: Select the most important issue.
Step 3: Briefly explain why this is so important.
Step 4: What is the origin of this issue?
Step 5: What will it take to minimize or eliminate this issue?
Step 6: Draw a simple flow chart of the process involved.

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Caveats
• Gap origins maybe outside process/departmental boundaries
• Symptomatic (band aid) solutions
• Technical solutions to technical problems are easy to
• discover
• Culture & politics can & will inhibit successful solution
implementation

6. Double-click to enter subtitleSystem Model Components
Outputs
Process
Inputs
Inputs Process Output
Customer
Specification
Gap
Feedback Loop
Feed Forward Loop
Suppliers
Boundaries
GapsSuppliers
Specifications
Expectations
Feedback Loop
Feed Forward Loop
Gaps
Feed Forward Loop
Customer
Specifications
Expectations
Feedback Loop

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• Determine scope of analysis
• Complete process output gap analysis
• Complete process input gap analysis
• Construct the System Map
• Analyze the System Map
System View: External
Customer
External
Suppliers
Business
Processes
External
Suppliers
External
Customer
Supply Chain:

8. Determine Scope of Analysis
1. Briefly describe the current situation: 2. Define the analysis boundaries:
Supplier Process Customer
3. Determine the Performance Gaps & Identify
Stakeholders Impacted:
What type of performance gap exists? (check all that
apply)
Growing Stable Declining Periodic
Current Output < competition’s performance
Current Output < customer’s expectations
Current Process < potential performance
Supplier Input < process requirements
The gap is (estimate % change)
Describe Impact
Suppliers
Owners
Customers
Community
Employees
Regulators

9. Process Output Gap Analysis
Customers Specifications/Expectations Outputs Gap? Gap
Rank
Direct
Contributions
Indirect
Contributions
Feedback Loop from Customers Feed Forward Loop to Customers
Processes

10. Process Input Gap Analysis
Suppliers Specifications/Expectations Inputs Gap? Gap
Rank
Impact on
Processes
Impact on
Customers
Feedback Loop from Suppliers Feed Forward Loop to Suppliers
Gap

11. System Name: Objectives:
Date/Revision:
Created By:
Customer GapProcess GapSupplier Gap
Specs: Get:
Suppliers:
Processes:
FFL:
Specs: Get: Specs: Get:
FBL:
Outputs:
FFL:
FBL:
Inputs:
Customers
Build the System Map

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Analyze the System Map
1. Validation - Confirm Customer/Stakeholder Satisfaction Level:
2. Assess Competitive Position:
3. Identify Cause- Effect Relationships: Input Gaps  Process Gaps  Output Gaps:
4. Construct Process Maps to Assess Opportunities to Improve:
5. Complete Failure Mode and Effects Analysis (FMEA):