Introduction to Business Process Re-engineering. A practical guide to positive change. Jim Warner, managing partner at Monument Cloud Solutions, discusses the background and application of BPR using a simple framework.
Fundamentally rethink how your building works in order to improve tenant service, cut operational costs, and become a world class competitor! This Presentation delivers essential tips for improving building processes to stay competitive in a buy and hold economy.
Presented by: Faraz Memon
What is Business Process Re-Engineering? Why is now the time to Re-Engineer your operations? How to find and locate operational areas to improve upon. The first steps to Re-Engineering your process & benchmarking. How to approach technology decisions & data migration. The best practices for Business Process Re-Engineering
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(BPR) is basically rethinking and radically redesigning an organization's existing resources to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed.
Fundamentally rethink how your building works in order to improve tenant service, cut operational costs, and become a world class competitor! This Presentation delivers essential tips for improving building processes to stay competitive in a buy and hold economy.
Presented by: Faraz Memon
What is Business Process Re-Engineering? Why is now the time to Re-Engineer your operations? How to find and locate operational areas to improve upon. The first steps to Re-Engineering your process & benchmarking. How to approach technology decisions & data migration. The best practices for Business Process Re-Engineering
Register to view presentation On-Demand:
http://be.buildingengines.com/Reg-Webinar-On-Demand-BusinessProcess-Reengineering.html
(BPR) is basically rethinking and radically redesigning an organization's existing resources to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed.
Business process reengineering is a process that entails changing all aspects of business so as to foster improvements.This paper presents an analysis of the re-engineering process case at the IBM Credit Corporation.
Business process reengineering is a process that entails changing all aspects of business so as to foster improvements.This paper presents an analysis of the re-engineering process case at the IBM Credit Corporation.
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Cold storage warehouse facilities, just like other warehouses and distribution centers, struggle to make the most of their labor resources. One way warehouse operators in the refrigerated environment are addressing these concerns are by focusing on warehouse layout optimization. When facilities are laid out inefficiently or improperly marked many labor hours can be wasted on travel time. Taking the time to address warehouse layout design can help your warehousing operation to achieve maximum space utilization and process improvement. The first stage of warehouse layout optimization is the designation of functional zones. This is done using analytics on past activity and estimates on future needs. These reports will help your team to identify the proper size and location of each zone. This information should be accessible from your warehouse management system where inventory and activity data is recorded. The top 4 functional warehouse zones identified using forecasting and projections are storage, yard/dock, picking and VAS/kitting zones. To identify the proper size of the storage area evaluate key factors such as project inventory levels, temperature requirements, product dimensions, fulfillment rules, flow through rates and more. All of these factors will play a part in determining proper storage layout. Data must also be collected to determine yard and dock door requirements. Too little staging space and dock doors can create a significant bottle neck, slowing down warehouse productivity. When determining picking and shipping size and location identifying your picking strategy will help to make these decisions. Consider the space requirements needed for all types and which will work best for your available resources. If your refrigerated warehousing operation provides any variety of value added services such as kitting space and layout must also be considered for this. Determine what areas require their own designated space and which can operate in shared space. Planning this space effectively will promote faster inventory flow through rates. Leaders in the refrigerated and frozen supply chain are constantly evaluating these factors to ensure their space utilization provides growth opportunities. Do not let an inefficient warehouse layout stop your business from growing. Learn more about this cold storage warehouse best practice in this brief SlideShare.
In this presentation, we will discuss the concept and interrelation between product and process design and product life cycle. We will also talk about key decisions required in process design and evaluation of process design.
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Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
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Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
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3. Background
• Most organizations want to:
– Improve efficiency
– Improve customer service
– Simplify operations
– Reduce costs
Business Process Reengineering
3
5. Background
• This often results in:
– Greater challenges
– Greater expense
• Without meeting the original goals
Business Process Reengineering
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6. Background
• The term ‘Business Process Reengineering’
was first coined in 1990 by Michael Hammer
in the Harvard Business Review
• The main idea is to eliminate work that
doesn’t add value, rather than automate it
• BPR provides a framework for development
and deployment of information systems
within the context of simplifying operations
and reducing costs
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7. Background
• My experience with BPR goes back a little
further…
• Hewlett Packard in the early 1980’s:
– Driving a renaissance of quality & customer
service
– Yokagowa HP & W. Edwards Demming
• Demming Prize
– Tom Peters ‘In Search of Excellence’
– Total Quality Control (TQC)
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8. Background
• HP’s Roseville Division
– Extensive work with process & quality
improvement
– High mix – low volume manufacturing
– Created a predecessor to BPR
– Had the insight to compare the distance a product
travels with the dimensions of the building
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10. Avoid Complex Processes
• Dimensions of building compared to length of
process
• Number of stops, translations, workarounds
• Time in transit
• Number of places where information can be
lost
• Complex decision processes cause errors &
rework
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12. Re-engineering?
• The name suggests that processes were
‘engineered’ in the first place
• Sometimes true, but most likely not
• Processes tend to grow and change over time
in an organic fashion
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13. Process Growth & Change
• Processes grow and change over time
• Most are simple to begin with
• Organizations start with ‘One thing’, then
move on to ‘Two things’, ‘Three things’, etc.
• Exception handling is added
• Key knowledge becomes siloed in various
parts of the organization
• Key knowledge often leaves with turnover
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19. Human Nature - Short Cuts &
Workarounds
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20. Common Outcomes
•
•
•
•
•
•
•
Short cuts & workarounds are added
Key knowledge is lost or is in-accessible
No one knows the whole process
Customer satisfaction goes down
Employee satisfaction goes down
Costs go up
Process won’t scale
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21. What to Do?
The Four Steps:
• Understand
• Document
• Simplify
• Automate
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22. Understand
• Understand what is happening in your
organization right now
• Organizations often think they understand
their processes, but can be surprised!
• One department often doesn’t know what the
others do
• The Four Questions
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23. The Four Questions
• Who are my customers?
– External?
– Internal?
• What is my product or service?
• What is my process for delivering my product
or service?
• How can I improve my product or service?
Business Process Reengineering
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24. What Should You Ask?
•
•
•
•
How is the system being used?
Where are the bottlenecks?
Where are errors commonly made?
What are the workarounds?
– Spreadsheets?
– Documents?
– Notes/emails?
• Where is data being reentered?
Business Process Reengineering
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25. Capture Ideas
•
•
•
•
•
Activities to start?
Activities to stop?
Activities to continue?
What’s working?
What’s not working?
Business Process Reengineering
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27. Document
• Document what’s happening now
• If we can’t document it, then we haven’t
understood it
• Highlights duplicate processes
• Highlights gaps in knowledge
• Helps create a shared understanding
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31. Automate
• Can be existing or new systems
• Can eliminate manual processes to reduce
time and errors
• Don’t have humans do things a computer can
• Keep/Make/Buy decisions
• Software selection process
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32. Deployment Options
Cloud/Vendor
Hosted
Client Hosted
• Simplifies client infrastructure
and management
• Lower up-front costs
• Higher up-time of the
application
• Data security, backup and
restore is build in
• Easier to manage access beyond
the building’s boundaries
• Requires good internet access
• Traditional approach that most
IT operations are comfortable
with
• Can create a more secure
feeling – we own/control the
data
• Higher upfront costs
• More infrastructure &
management required
• Can be lower up-time
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33. Process Improvement
•
•
•
•
•
•
•
Selecting an issue
Brainstorming
Prioritizing
Cause-Effect Analysis
Brainstorm Solutions
Implement a Solution
Monitor & Stabilize
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34. Process Improvement - Cycle
Monitor &
Stabilize or
Change
Approach
Create an
Issue /
Opportunity
List
Prioritize
Issues
Implement
Improvement
Brainstorm
Cause & Effect
Brainstorm
Solutions
Business Process Reengineering
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35. Brainstorm Issues
• Generate as many ideas as possible in 20-30
minutes
• Don’t debate or change ideas (quantity more
important than quality)
• Encourage everyone to participate – go
around the room
• Keep going until all the ideas have been
presented
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36. Prioritizing
Consider various aspects of each issue:
• Importance/benefit of an improvement
• Penalty
• Cost
• Time
• Risk
Business Process Reengineering
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37. Prioritizing - Methods
Goal is to find the most important issue
• Gut feel – fastest but can be biased
• Trial & error – make the list ‘look right’
• Priority groups – high, medium & low
• Bubble sort – thorough & fairly simple
• Prioritization matrix – most thorough – ranks
issues according to criteria
Business Process Reengineering
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38. Bubble-Sort Prioritizing
• Start at the bottom position
• Compare the item on the bottom with each of
those above
• If the bottom item is a higher priority with it’s
comparison item, swap them
• Continue comparing the bottom item until you’ve
compared all the way to the top
• Move up to the second to the last item & repeat
• Repeat until you’ve moved up to the top of the
list
Business Process Reengineering
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39. Cause/Effect Analysis
The 4 Categories (4 M’s)
• Man
• Machine
• Materials
• Methods
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40. Fish-Bone Diagram
No training
Turnover
No integration
No security
Example: Data takes
too long to move
from shops to
foundation
In-box not clearly
labeled
Poor form layout
Lost form
Business Process Reengineering
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41. Brainstorm Solutions
• Same approach...
• Prioritize…
• Can start with low $ / low risk first
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42. Implement Solution
• Pick an implementation team
– Key stakeholders
– The right disciplines
• Can be phased
• Remember the 4 M’s
Business Process Reengineering
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43. Monitor & Stabilize
• Monitor key process measures
– Time to complete something
– Error rate
– Time spent in re-work
• Stabilize
– Train & manage for consistent results
– Understand out of bounds data
– Implement minor corrections
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45. Why is it important? Early Influences
• IT – Definition of system failure:
– Not being used
• Auto industry experience
– Auto workers – if they don’t like it, it will break
• Aviation industry experience
– It must not break
– Critical systems
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46. Software Satisfaction
• Two choices:
– Adapt your process to fit the software
– Select/Configure/Customize the software to fit
your process
• If the process is core to your mission, the
latter is much better
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48. Methodology
• Based on Business Process Reengineering
• We recommend 6 steps:
1:
2:
3:
4:
5:
6:
Preparation (Understand, Document, Simplify)
Evaluation
Selection
Planning
Implementation (Automate)
Monitor, stabilize & enhance
• Scalable to client needs
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49. Benefits
• The BPR process raises the team awareness
with what you’re looking for and why
• Takes current technology into account
• Reduces vendor bias
• Reduces the chance of buying vaporware
• Ensures the best software fit with your
organization
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50. Step 1: Preparation
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•
•
•
•
•
•
•
•
•
•
•
•
Select the project team & roles (those that will be involved in the selection
process)
Review your organization’s mission and objectives
Interview the existing users and document the existing processes
Interview the stakeholders beyond the system boundaries & document
needs/concerns
Identify integration points with other systems
Identify gaps and workarounds such as spreadsheets, documents, emails, etc.
Simplify or eliminate process steps where possible
Conduct an IT review of the existing servers, network & workstations
Evaluate the organizations IT plans for growth and new technology (Cloud, Mobile,
BYOD, etc.)
Evaluate deployment options (Client hosted, vendor hosted, SaaS)
Develop the software business case (Optional)
Develop a shared vision for the new system
Develop preliminary budget
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51. Step 2: Evaluation
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•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Gather & prioritize requirements
Create a Request for Proposal (RFP) document
Create an initial list of potential vendors
Define decision criteria
Send out the RFP
Initial review of RFP responses
Schedule demos
Check references
Review customer support and service (vendor, reseller, consultant, ect)
Review Implementation expertise
Review vendor stability (financial, business plans, leadership team, customer base)
Review vendor product/technology roadmap
Review Total Cost of Ownership (TCO)
Fit/Gap analysis
Review 1 to 5 year budget for each vendor
Trim the list of potential vendors
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52. Step 3: Selection
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•
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•
•
•
•
•
Inviting shortlisted vendors for a site visit
Review further demos
Evaluate implementation plans
Identify the best-fit solution
Audit the selection process
Management approval
Internal selection announcement
Notify winning and losing vendors
Legal review of contract
Negotiate contract
Initial data conversion strategy
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53. Step 4: Planning
•
•
•
•
•
•
Refine implementation plan & develop milestones & schedule
Review & negotiate any scope changes
Review/Finalize data conversion strategy
Review/Finalize implementation plan & schedule
Develop training plan
Plan for parallel operation of new & old systems
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54. Step 5: Implementation
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Implementation kickoff
Track progress vs. schedule & milestones
Execute training plan
Execute data conversion
Verify integration with other systems
Verify & signoff on new system
Go-live on new system
Ramp up users on new system
Restrict access to old system
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55. Step 6: Monitor, Stabilize & Enhance
•
•
•
•
•
Review system acceptance (user feedback)
Collect issues/change requests
Report issues/change requests to vendor
Conduct additional training
Implement fixes/enhancements
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57. Contact Info
We’re happy to help you with
any of your BPR needs!
Monument Cloud Solutions LLC
Jim.warner@monumentcloud.com
www.monumentcloud.com
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