The document discusses performance optimization strategies focused on productivity and quality improvement, utilizing both lean and 'a day in the life of' (DILO) methodologies to streamline processes and reduce costs. It emphasizes automating tasks, reallocating staff efficiently, and enhancing communication to minimize waste and variability, particularly in complex environments. The combined approaches aim to create accurate, efficient processes while ensuring active involvement from operational teams.

1. Performance optimization: productivity and quality improvement
Stephanie Baruk sbaruk@chappuishalder.com

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Chappuis Halder & Cie has managed numerous projects of restructuration and
reorganization for leading international companies
Lean & “A Day in Life
Of” approaches
Outsourcing &
Offshoring
IT Transformation
Programs
Efficiency optimization Costs reduction
Productivity and quality
improvement
Automating processes
 Increase efficiency via tools and
process automation and by
avoiding manual treatments:
 Enormous technical
challenges
 Requires process streamlining
to take advantage of the new
capabilities
Decreasing compensation
costs
 Reduce compensation costs by
reallocating staff on a job-by-job or
activity-by-activity basis, however:
 Benefit is now eroding rapidly
in the most popular offshoring
centers
 De-multiplication of
intermediaries may increase
the risk for error and delay
Minimizing waste and variability
 Make processes more accurate,
timely and efficient by improving:
 The alignment of operating
teams
 The balancing of capacity and
workloads
 The transparency of
information flows
Methodology described in the
present document
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Combine respective advantages of LEAN top-down approach with DILO
bottom-up one to define a customized project
LEAN
Anchored on an innovative mix between holistic and operational theories, our approach enables
us to achieve process optimization and cost reduction both from a global and a detailed
perspectives, while ensuring a high level of implication with the operational teams
 LEAN methodology relies mostly on
brainstorming in a top-down fashion
 It aims at improving efficiency and productivity
by taking an holistic approach: studying
processes in their entirety rather than focusing
on specific activities or individual functions
 Taking this global perspective is particularly
essential within complex, highly sophisticated
processes and environments, not well captured
via operational approaches
DILO
 DILO “ A day in Life of” is a bottom up approach
which relies on detailed tasks and process
observation and analysis
 Granular analysis is performed task by task and
aims at identifying operational failures or
inefficiencies in order to improve the whole
process
 The DILO approach allows us to identify very
accurately optimization opportunities often
neglected in holistic approaches and offers a
true proximity with the operational teams

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The LEAN comprehensive approach to reducing waste and variability has proved
to be very efficient in the Financial Services sector
• Better define the data expected and needed by each department to
be efficient
• Define which data is necessary and adapt systems accordingly,
centralize data as much as possible
Data Management
1
Process
optimization
2
Errors reduction
3
Communication
4
Schedule
management
5
Over-production
avoidance
6
Limit down times
7
• Identify the unnecessarily long processes or sequences
• Identify tasks performed twice and correct the process accordingly
• List the most frequent errors and implement new processes to avoid
them
• Mainly, identify operational risks, input mistakes, deficient controls,
inconsistent compliance rules…
• Point out failures in the communication processes
• Propose actions to improve their efficiency, systematically try to
decrease the number of intermediaries
• List the main interruptions in a work day: breaks, meetings, etc.
• Optimize time-schedule to decrease the number of interruptions
(avoid non-stop meetings)
• Avoid multiple and unnecessary reporting
• Perform stickiness assessment
• Identify lack of automation instances
• Decrease validation down times
• For transversal tasks (across several departments), improve work
organization by increasing visibility on each team member’s
activities
• Keep only the essential second level controls
 The goals are to reach more accurate,
efficient and less risky processes,
meeting deadlines via:
• Resources allocation optimization
• Just-in-time processes
• Dropping process outcomes
variability
• Increasing information circulation
speed and transparency
• Process redesign
• Errors minimization
DescriptionBenefits
 A focus on competencies and
expertise underutilization can be
added to the 7 other factors and be
complementary, as it is often a key
issue in FS
 The LEAN methodology is structured
around 7 “Mudas”, used as user-
friendly tool to identify the
opportunities of costs reduction and
process optimization
Advantages

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DILO method focuses on the operational challenges and assesses in detail “field
costs”, quality and risks for each process
 The quantitative approach is based
on the measurement of the average
time for each task:
 Identification of the main
bottlenecks
 Identification of under-efficient
areas
 This implies spending a day
“shadowing” a person involved the
process being studied
 The subject’s activities are observed
and recorded, then analyzed to
identify opportunities
 Sampling of a larger number of
people with the same role might be
required in order to assess the
frequency of process breakdown
and to quantify the impact of the
improvement opportunity
 The analysis should be conducted
on a normal day (not during a rush
or quiet period)
 The qualitative approach is based
on what is observed by the
employees:
 Problems observed and
operational constraints identified
 Causes of the main failures and
waste
 Best practices identified and
appropriate solutions to be
communicated to the other teams
 Interviews allow us to:
 Describe what activities make up
the process being studied
 Understand their precise nature
 Identify roadblocks to getting work
done and collect ideas for
improvements
 Too often neglected, this phase is
essential as it facilitates
communication on the project,
involves employees and secures
their proactive participation
A quantitative approach
combined with…
… a qualitative one
 It has proved to be efficient in:
• Avoiding duplication of effort
• Improving inefficient processes
• Identifying non-value adding
activities
• Pointing out frequent and/or
significant communication
breakdowns
• Improving clarity about everyone’s
roles and responsibilities
• Correcting communication
breakdown or barriers
BenefitsDescription
 The DILO study is a process analysis
of specific tasks, looking for process
breakdowns and cross-impacts on
other parts of the business
 The DILO approach allows real
proximity with the teams, and their
implication and awareness of the
necessary changes. It is an essential
part of the change management
implied by the solutions proposed
Advantages

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A global approach to define a customized organization
Methodology
Tools&
Deliverables
 Ishikawa diagram
 Brainstorming of the “5 Why” results
 KPI/KRI
 Workload analysis
 Analysis of the causes of all Phase I
malfunctions:
 Identification of the main causes
and categorization
 Assessment of the impact
 Prioritization related to the impact
 Arbitrage between re-engineering
and design of new processes
 Identification of solutions in terms of:
 Process redesign and optimization
 Workload rebalancing and
resources reallocation
 Enhancement of communication
fluidity and transparency
 Improvement in utilization of
competencies and expertise
II – Identification of the
causes of inefficiency and
their impacts
 The first step is to define clients
expectations and main objectives
 The analysis will then focus on the
following axes:
 Identification of low value-adding
tasks
 Identification of waste through
process mapping and identification
of redundancies
 Identification of defaults in
processes and measurement of
their frequency
 Measurement of process variability
 Measurement of the workload
 Default likelihood analysis: risks
and costs
I – As-is analysis and diagnosis
 Voice of the Customer synthesis
 “Critical To Quality” Tree
 SIPOC
 Process flowcharts
 Charge analysis
 Process variability graphs
 Build scenarii from the different
solutions and select optimal target:
 Determination of resources
reallocation and definition of the
new organization chart
 Stretching of the workload to avoid
time-breakdown during the working
day
 Optimization and automation
opportunities for select processes
and suggestions for more value
generating tasks
 Actions prioritization, risks
assessment and test of the most
impacting processes changes
 New processes documentation and
training of the teams
 Estimation of the project benefits
III – Recommendations
proposal and
implementation
 Target process mapping
 Organization scenarii and new
organization charts
 Job description
 Roadmap and monitoring plan
 Operating procedures and training
material