Business process innovation for entrepreneurs

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The presentation is an overview of how processes, using quality methods and tools can be improved to increase value for the the entrepreneurs. Processes are collection of activities that make input valuable products and services.

This is a lecture for the Ateneo Graduate School of Business students. It has been uploaded at slideshare for easy access for past and present students of entrepreneurship elective.

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Business process innovation for entrepreneurs

  1. 1. Business Process Innovation for entrepreneurs Lecture for entrepreneurship students at the Ateneo Graduate School of Business
  2. 2. Business Process Collection of activities that delivers/adds value to material inputs…
  3. 3. Processes put together inputs to deliver valuable outputs: product or service
  4. 4. VALUE <ul><li>CREATION </li></ul><ul><li>DELIVERY </li></ul><ul><li>CAPTURE </li></ul>
  5. 6. Value delivery
  6. 7. Objectives of Process Management <ul><li>Delivery </li></ul><ul><li>Output </li></ul><ul><li>Cost </li></ul><ul><li>Safety </li></ul><ul><li>Morale </li></ul><ul><li>Nice and clean appearance </li></ul>
  7. 8. Safety
  8. 9. QUALITY <ul><li>DO IT RIGHT THE FIRST TIME </li></ul><ul><li>CONSTANT IMPROVEMENT </li></ul>
  9. 10. Quality products sell for higher prices and to more customers
  10. 11. Quality
  11. 12. Quality is free Zero defects - Philip Crosby, from ITT
  12. 13. Philip B. Crosby - ITT
  13. 15. Starting a quality revolution - Prof Rene Domingo, AIM <ul><li>Start and finish everything on time </li></ul><ul><li>Deliberately reduce inventories </li></ul><ul><li>Avoid reworks,rejects and recycling ops </li></ul><ul><li>Visible signs of quality </li></ul><ul><li>Meet international standards </li></ul><ul><li>Let customers meet your workers </li></ul>
  14. 16. Starting a QUALITY REVOLUTION
  15. 17. Quality is survival
  16. 19. Edward Deming
  17. 20. Edward Deming’s 14 Guide to Quality
  18. 22. 5s <ul><li>SEIRI – SORTING OUT </li></ul><ul><li>SEITON – SYSTEMATIC ARRANGEMENT </li></ul><ul><li>SEISO – SCRUBBING SPIC & SPAN </li></ul><ul><li>SEIKETSU – STANDARDIZING </li></ul><ul><li>SHITSUKE -SELF DISCIPLINE </li></ul>
  19. 23. 5s
  20. 25. Sorting out – visible quality
  21. 26. 5s Control Chart
  22. 27. TOTAL QUALITY MANAGEMENT
  23. 28. QUALITY CIRCLES
  24. 29. Quality Circle
  25. 30. TOTAL PREVENTIVE (PRODUCTIVE) MAINTENANCE
  26. 33. KAIZEN Constant improvement
  27. 34. Kaizen
  28. 35. Kaizen
  29. 36. QUALITY FUNCTION DEPLOYMENT
  30. 37. House of Quality
  31. 41. Kaizen
  32. 42. Kaizen
  33. 43. SHEWHART CYCLE
  34. 44. PDCA/SDCA
  35. 45. TOYOTA PRODUCTION SYSTEM <ul><li>JUST IN TIME </li></ul><ul><li>KANBAN SYSTEM </li></ul><ul><li>FLEXIBLE MANUFACTURING </li></ul><ul><li>LEAN SYSTEM </li></ul><ul><li>QUICK CHANGEOVER </li></ul>
  36. 46. Toyota Production System
  37. 50. Lean system
  38. 51. SIX SIGMA 3 defects per million, practiced at GE and Motorola
  39. 52. Six Sigma - DMAIC
  40. 53. Six Sigma
  41. 54. ENTERPRISE DELIVERY SYSTEM <ul><li>INPUT </li></ul><ul><li>THROUGHPUT </li></ul><ul><li>OUTPUT </li></ul><ul><li>MATCHING </li></ul><ul><li>OUTCOME </li></ul>
  42. 55. VALUE ADDING <ul><li>Abnormal process </li></ul><ul><li>NVA – necessary </li></ul><ul><li>Value adding only 5% of all processes </li></ul>
  43. 56. Causes of waste: TIMWOOD <ul><li>Transportation </li></ul><ul><li>Inventory </li></ul><ul><li>Motion </li></ul><ul><li>Waiting </li></ul><ul><li>Overstocking </li></ul><ul><li>Overprocessing </li></ul><ul><li>Delays </li></ul>
  44. 57. Focussing on core competencies Outsourcing Offshore
  45. 58. BPO Business Process Outsourcing A growing industry; now $170 billion and still growing..
  46. 59. Business Process Outsourcing
  47. 60. Business process improvement K I S S (KEEP IT SHORT AND SIMPLE)
  48. 61. Focus is customer satisfaction/service <ul><li>Reduce cost </li></ul><ul><li>Reduce waiting time </li></ul><ul><li>Eliminate complaint </li></ul><ul><li>Increase turn-over, turn around time </li></ul>
  49. 62. How? <ul><li>Change process </li></ul><ul><li>Eliminate some processes </li></ul><ul><li>Simplify </li></ul><ul><li>Install controls/feedback mechanism </li></ul><ul><li>Automate </li></ul><ul><li>Process improvement </li></ul><ul><li>USE OF ERRC </li></ul>
  50. 63. SCOPE OF PROCESSES <ul><li>BACK OFFICE </li></ul><ul><li>SUPPLY CHAIN MANAGEMENT </li></ul><ul><li>ERP </li></ul><ul><li>BUSINESS PROCESS OUTSOURCING </li></ul>
  51. 64. Supply chain management
  52. 67. Tools for BPI <ul><li>Flow charting </li></ul><ul><li>Gannt chart, cpm </li></ul><ul><li>Decision tree </li></ul><ul><li>Kepner Tregoe </li></ul><ul><li>Ishikiwa Diagram/CE diagram </li></ul><ul><li>Pareto Principle </li></ul><ul><li>Scatter diagram </li></ul>
  53. 68. Other tools: Suggestion system Quality circles
  54. 69. Thank you! [email_address] Ateneo Graduate School of Business
  55. 70. Acknowledgement <ul><li>Pictures are from google images; </li></ul><ul><li>Key ideas are from operations management </li></ul>

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