This document discusses business process improvement strategies to increase productivity and competitiveness. The objectives are to create a closer link between operational efficiency and profitability. It outlines five important steps: 1) understand how the business makes money, 2) align with core business processes, 3) establish a baseline of metrics and costs, 4) improve processes based on customer feedback, and 5) measure and control processes. Key aspects of business process improvement include establishing metrics, identifying opportunities to eliminate waste, designing processes for effective flow, and creating a culture of continuous improvement.

1. 1
Business Process
Improvement
A strategy for
productivity and
competitiveness

2. Business Process
Improvement
2

3. Objectives
Is to create a closer link
between operational
efficiency and profitability
To connect your role
to business
profitability
3

4. Objectives
Introduce tools and
techniques
To create a culture/model
to sustain operational
improvements
4

5. Five important steps
Step
1
• Understand how the
business makes money
Step
2
• Alignment with a core/enable
business process (end-to-
end understanding)
5

6. Five important steps
Step
3
• Your baseline (metrics
and unit costs)
Step
4 & 5
• Improve—voice of the
customer
• Measure and control
6

7. 7
How the Business Makes
Money
Revenue –
Expenses =
Profit

8. 8
Business Process
Improvement
Business Analysts
connect to a Value
Proposition through
Value Delivery =
Processes

9. Alignment with core business
processes
What does it give you
1-Holistic view 2-End to End 3-Inputs
and Outputs 4-Suppliers and Customers
Core business processes (business
acquisition, renewals, servicing)
Enabling processes (HR, IT,
Finance, etc.)
9

10. Process Improvement
Objectives
Making processes efficient-Minimizing the
resources needed and eliminating waste
(non-value activities) to focus on value.
Making processes effective-Have
the right quality output, at the
right time, at the right price.
10

11. Process Improvement
Objectives
Making processes
adaptable-Being
able to adapt to
changing customer
and business needs.
11

12. 12
Good Business
Processes…..
Enable you to make better
business decisions and
implement them faster
Help to improve and control
your operations
Improve your production
flow

13. Suppliers Inputs Process Customers Requirements
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Step
1:
Outputs
Step
2:
Step
3:
Step
4:
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Step
5:
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SIPOC

14. 14

15. 15

16. Lifeline of Crown Pavilions
16

17. 17
Value
Stream
Mapping

18. 18

19. 19
THE CROWN 'WENTWORTH'

20. 20

21. 21
Production Maintenance Quality Engineering
Production
Control
Purchasing Sales Admin.
1
OEE/F
ocused
Improv
ement
2
Autono
mous
Mainte
nance
3
Planne
d
Mainte
nance
4
Trainin
g &
Skills
5
Initial
Phase
Manag
ement
6
Quality
Mainte
nance
7
Admini
strative
Work
8
Safety
&
Enviro
nment

22.  Production
 Maintenance
 Quality
 Engineering
 Production Control
 Purchasing
 Sales
 Admin.
22
Involvement of Each Department By Pillar
(Example)

23. Involvement of Each Department
By Pillar (Example)
 1 OEE/ Focused Improvement
 2 Autonomous Maintenance
 3 Planned Maintenance
 4 Training & Skills
 5 Initial Phase Management
 6 Quality Maintenance
 7 Administrative Work
 8 Safety & Environment
23

24. Activity Management : Example of Activity Board
24
Objectives: 0
TPM Progress Line-2The People
The action plan
The Results
OEE Casting
Updated on XX/XX by NB
Breakdowns/month
Process failures/month
The Schedule
The achievements
The Master Plan
Methodology
F.A.
The team The Chart
The Layout
Involvement Competencies

25. Well-defined and Well-
managed Processes
Formal change procedures
Measurement and feedback controls
Customer-related measurements and
targets
25

26. Quality Business Processes
Eliminate errors Minimize delays
Maximize use of
assets—match
capacity to
demand
Promote
understanding
26

27. Quality Business Processes
Customer
focused &
adaptive to
changing needs
Provide the
organization
with competitive
advantage
27

28. It’s all about the business
Businesses need
to make money
(grow profitably)
Best way to
contribute is by
addressing
business process
28

29. It’s all about the business
Change
management
Best way to prove
your value is by
delivering high
quality metrics
29

30. Creating a baseline
Functional
reviews
Objective to
educate on all
of the basics
Focus on
current state
Align capacity
with demand
30

31. Creating a baseline
Holistic view
Management
by fact
31

32. 32
Creating a Functional Review
Process
 “Standardized” template –
unique story
Creates a baseline (efficiency
and effectiveness) and metrics
Each functional area presents
to Sr. Management

33. Creating a Functional
Review Process
Feedback memo with approvals
and direction
Inputs to Operational Plans and
Goals
33

34. Content
Value Stream
Alignment
Organizational
Design
Performance
Management
Efficiency
Snapshot
34

35. Content
High Level Process
(SIPOC) (by output)
Trend of demand and
capacity (by output)
Drivers, lead
indicators and levers
Performance metrics
– productivity, quality,
timing (by output),
external benchmarks
35

36. Content
Customer
requirements
and metrics (by
output)
Unit costs and
trend
Budget and
expense
management
36

37. Content
Challenges,
risks and
opportunities
Commitments
to go forward—
2011 Goal
Creation
37

38. 38
Context of Organizational Fit
 Description of Services
Develop Acquire Install Administer Process* Retain
Product Client Client and Service Claims Client
Enabling Processes

39. 39

40. Business Process
Improvement
Drivers: Network
Pricing
Arrangements and
Customization
Lead Indicators
team has
continued to
meet/exceed goals
May be potential
for additional
efficiency gains
40

41. Business Process
Improvement
2010 - a capacity review
of this team will begin –
metrics, skill set,
tracking of time &
volumes – to right size
team
41

42. 42
Volume and Staffing
0
2
4
6
8
10
12
Staffing
0
500
1000
1500
2000
2500
3000
Volume
Staff 10 10 10 10 7 7 7 7 6
Volume 2848 2529 2057 2729 2248 2102 1767 2467 2064
Q1 '05 Q2 '05 Q3 '05 Q4 '05 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07

43. 43
Metrics – Provider Loads
Provider Loads - Service Timing
90.00%
92.00%
94.00%
96.00%
98.00%
100.00%1Q
'05
3Q
'05
1Q
'06
3Q
'06
1Q
'07
Time
Percent
Actual
Goal

44. Global Opportunities
Global
Opportunities
• Performance Metrics – daily
measures, inventory management
(work in progress), team and
individual productivity, quality and
controls, unit costs
Global
Opportunities
• Performance Goals (too low)
44

45. Business Process
Improvement
Business
Process
Improvement
• Service levels – same day, good
order and bad order (reduce work in
progress)
Business
Process
Improvement
• Mature staffing models
• Process improvements – eliminate
hand offs and variation and improve
the flow through the value stream
45

46. Identify Opportunities
Cost/unit cost
(esp. if trending
up) Duplicate steps
Rework Complaints
46

47. Identify Opportunities
Missed
deadlines
Inconsistent
results
Many hand
offs
Long
training
curves
47

48. Identify Opportunities
Variation
No work
standard
48

49. Best Practices—Lean
Right the first time
Match capacity to demand
Once and done
No redundant work; minimum touch
49

50. Best Practices—Lean
Scalable to variance in demand
Visibility
Team measures, goals
and accountabilities
Rational handoffs vs. specialization
Workforce Engagement
50

51. 51
The Importance of Culture and
People
Emphasis on the people – great
people can execute a great
work
How we do work is personal
Workforce engagement
Strong change management

52. 52
Sustainable Operational
Excellence Culture
It’s all about the people
soft V hard stuff
Top down and bottom up
Quick wins

53. 53
Sustainable Operational
Excellence—Culture Shift
 “Learning to see”
– New thinking
– New skills
– New tools, sources of knowledge

54. Business Process
Improvement
Operational Efficiency
-Metrics (measures and controls)
-Goals
Process Design
54

55. Business Process
Improvement
Don’t fix at point of error when the right answer is to
prevent upstream
Observe the process—interview to identify
variation
Use voice of the customer
Don’t automate an inefficient or ineffective
process
55

56. Business Process
Improvement
Look end-to-
end during
analysis
Use data (time
track if no data
available)
Get user input
and feedback
56

57. Business Process
Improvement
Eliminate waste
to add value
Production flow –
no batch and
queue (wait
times)
57

58. 58
Resources
 www.bptrends.com
 “Lean Enterprise Value,” Murman et. Al
 “Business Process Change,” Paul
Harmon
 “Business Process Management,
Profiting from Process,” Roger T.
Burlton
 http://lean.mit.edu