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

Business process innovation for entrepreneurs