The document discusses process innovation. It defines process as a combination of activities used to produce products or services. Process innovation involves adopting new ideas and technologies to business functions. Process innovation can increase profits, improve efficiency and productivity, enhance customer value, and reduce waste. Some techniques for process innovation discussed include business process reengineering, total quality management, lean production, kaizen, 5S, and six sigma. The document also covers value chains and how they are managed.

1. PRESENTED BY:
CHANDAN CHOUDHARY
TRAPTI AGGARWAL
NEHA SHARMA
VIKAS

2. What Is Process?
• Process is combination of facilities, skills and
technologies that are used to produce products
or provide services.
• Process is a naturally occurring or designed
sequence of steps or events which produces
some outcome.

4. What is Process Innovation?
• Process innovation combines adopting a
process view of business functions with the
application of new ideas and technology.
• Process innovation depends on the transfer of
knowledge and information.

5. Why Process Innovation?
• Increase bottom-line profitability
• Improve efficiency, improve productivity
• Increase employee job satisfaction
• Deliver enhanced product or service value to
the customer
• For controlling and reducing process wastage.
• For controlling and reducing work in process
inventories.
• For reducing processing time & costs.

6. • Process innovations builds an adaptive business
process management system (BPMS)
• For manufacturing companies – integrates new
production methods & technologies that lead to
improved efficiency, quality, or time-to-market, and
services that are sold with those products
• For service companies – introduces "front office"
customer service improvements and add new
services.
FOCUS

7. INDICATORS OF PROCESS
INNOVATION
• Ask the question: why do we process this way?,
if the answer is: because we have always done it
like this, then it is clear indication of need for
innovation
• Think from the customer perspective
• Look for the innovative ideas across the industry
and try possibilities
• Check where the pain and frustration in a
business process which provide initiatives

8. BLOCKERS OF PROCESS
INNOVATION
• Many ideas originate from work floor, but these
people are rarely asked about and if they do,
they are often discarded at middle level
• Around the edges syndrome- executives keep
looking at the edges of the problem and not at
the heart
• Black box syndrome- executives see their
processes as black box, they don’t know the
details, but somehow processes produce results

9. Keys to Process Innovation
• Migrating to a new process requires
understanding the current one
• Recognizing problems in an existing process
ensures that problems are not repeated in the
new process
• Analyzing current process reveals strategies for
new process
• Promoting individual and organizational
learning strategies sustains process innovation

10. STEPS IN PROCESS INNOVATION
Successful process innovation requires the following:
• Proper Planning
• Creating a multifunctional team of Technical, Production
and Maintenance Department.
• Selecting a small group of operators and workers, seeking
their participation in process innovation through
communication, counselling, training & rewards etc.
• Pilot run of the new process.
• Observations and improvements.
• Large scale training of entire work force.
• Commercial use of new Process.

11. ATTRIBUTES OF INNOVATIVE
PROCESSES
1. Elimination or decrease in manual processes.
2. Coordination of processes across distances.
3. Change of process sequence; allow parallel processes.
4. Capturing process information to understand process
better.
5. Improved analysis of information and decision making.
6. Capture and distribute organizational information.
7. Monitoring process status.
8. Coordination of tasks and processes (cross functional).

12. TOOLS FOR PROCESS
INNOVATION
• Developing Assembly Charts for studying conceptual
framwork of material flow .
• Developing Process Charts for studying conceptual
framwork of process flow.
• Computer Aided Designing (CAD), Computer Simulation.
• Time Study for comparing time taken for various operations
& tasks.

13. • Value Engineering and Analysis.
• Business Process Reengineering.
• Benchmarking.
• Using Change Management Strategies.
• Financial Appraisal.

14. Process Sequence
1. Parallel processing
2. Virtual linkages
3. Simultaneous entry and review
Tracking
1. Transaction volume
2. Document management
3. Priority processing
4. Transaction type
Geographic
1. Multiple sites on campus
2. Coordination with other
departments
Automation
1. More web information
2. Improve IVR service
3. Increase self-service
4. Reduce access to files

15. Analysis
1. Management Information
2. Scheduling, staffing, process
design
Knowledge
1. Knowledge Management
2. Standard operating
procedures
3. Regulation and statutory
changes
Information
1. Process cycle times
2. FAQs?
3. Peak processing
4. Customer profiles
Integration
1. Coordination of activities
2. Policy and process
alignment
3. Scheduling and planning

16. FOCUSING REDESIGN
ENERGY
Think time line: near
term, long-term
Think cost: no/low
cost, new resources or
reallocated resources
Think capabilities:
knowledge, expertise,
experience, staff-power
Think priorities: must
change, should change,
could change
Think technology:
have it, get it, use it

17. MOVEMENT IN PROCESS
INNOVATION
Process Innovation
Saturation
Old Process
New Process

18. EXAMPLES OF PROCESS INNOVATION
Precision Ring Makers (PRM)
• Make components to high specifications, largely for the aircraft
industry
• Its main development work was focused upon process
improvements
• It has developed low cost tooling techniques which resulted in
great savings
…… for example, tooling changes for thin guage shims using
conventional techniques cost about £4000, while with PRM’s
technique the cost was about £30
• It had purchased CNC machines for milling and engraving, and was
planning to network the CNC machines to its computer system so
that programs could be transmitted directly to production

19. EXAMPLES OF PROCESS INNOVATION
Fabrication and Assembly Company (FAC)
• Was primarily interested in welding technology
• A recent example of process improvement was the
application of plasma cutting instead of drilling, in
the manufacture of heat exchangers and plates
• A flushing system to prevent the build-up of sludge
in the air chambers of the water tables which were
being manufactured, was also developed to assist
the introduction of plasma cutting

20. TECHNIQUES OF PROCESS
INNOVATION
Business
Process
Reengine
ering
TQM
Lean
Production
System
Kaizen
5S
Concept
Six
Sigma

21. BPR
• Business process re-engineering(BPR) is also known as
business process redesign, business process change
management.
• It is a technique by which organizations fundamentally
rethink how they do their work in order to dramatically
improve customer service, cut operational costs, and
become world-class competitors.
• It is more than just business improvising.
• A key stimulus for re-engineering has been the continuing
development and deployment of sophisticated
information systems and networks.

22. CONTINUED…
• Reengineering assumes the current process is largely
irrelevant - it shall not work on future, it's broke, forget it.
Start afresh. Such a clean slate perspective enables the
designers of business processes to disassociate themselves
from today's process, and focus on a new process.
• Reengineering starts with a high-level assessment of the
organization's mission, strategic goals, and customer
needs
• Re-engineering identifies, analyses, and re-designs an
organization's core business processes with the aim of
achieving dramatic improvements in critical performance
measures, such as cost, quality, service, and speed

23. BUSINESS PROCESS
REENGINEERING CYCLE

24. TQM
• TQM refers to an integrated approach by management to focus
all functions and levels of an organization on quality and
continuous improvement
• Focuses on encouraging a continuous flow of incremental
improvements from the bottom of the organization's hierarchy

25. ADVANTAGES OF TQM
• Encourages a strategic approach to management at the operational
level
• Provides high return on investment through improving efficiency
• Works equally well for service and manufacturing sectors
• Allows organizations to take advantage of developments that
enable managing operations as cross-functional processes
• Fits an orientation toward inter-organizational collaboration and
strategic alliances through establishing a culture of collaboration
among different departments within organization

26. LEAN PRODUCTION SYSTEM
It is the western term for Toyota Production System.
This production philosophy is now widely used in auto
industry around the world. This system has been
modified everywhere in the auto industry, adapted to
some extent on the local industrial situation or practices,
however its core principles remains the same. This
system is not only used in auto industry but also in other
non-auto industries involved in assembling process.

27. BENEFITS OF LEAN PRODUCTION
SYSTEM
0
10
20
30
40
50
60
70
80
PERCENTAGE

28. KAIZEN
• Japanese strategy for continuous improvement
• Not a single day should go without any improvement
• Customer driven strategy for improvement
• Quality first, not profit first
• Consists of two major components
 Maintenance
 Improvement

29. Kaizen Cycle – PDCA Cycle

30. BENEFITS OF KAIZEN
In areas such as inventory, waiting times,
transportation, worker motion, employee skills, over
production, excess quality and in processes
Reduces
Waste
Space utilization, product quality, use of capital,
communications, production capacity and employee
retention
Improves
Instead of focusing on large, capital intensive
improvements, Kaizen focuses on creative
investments that continually solve large numbers of
small problems
Immediate
Results

31. 5S CONCEPT

32. SIX SIGMA
Six Sigma focuses on making improvements in all
operations within a process, producing results
more rapidly and effectively.

33. BENEFITS OF THE SIX
SIGMA STRATEGY
Remarkable improvements in
• Processes
• Products and services
• Investor relations
• Design methodology
• Supplier relationships
• Training and recruitment

34. WHAT IS A VALUE CHAIN
A value chain is the full range of
activities — including design,
production, marketing and
distribution — businesses go
through to bring a product or
service from conception to delivery.
For companies that produce goods,
the value chain starts with the raw
materials used to make their
products, and consists of everything
that is added to it before it is sold to
consumers.

35. VALUE CHAIN MANAGEMENT &
IT’S GOAL
The process of actually organizing all of these activities
so they can be properly analyzed is called value chain
management.
The goal of value chain management is to ensure that
those in charge of each stage of the value chain are
communicating with one another, to help make sure
the product is getting in the hands of customers as
seamlessly and as quickly as possible.

36. TYPES OF BUSINESS ACTIVITIES
Primary
Activities
Support
Activities

37. PRIMARY & SUPPORT ACTIVITIES

38. PRIMARY ACTIVITIES
• Inbound logistics: concerned with receiving, storing
and distributing the raw materials used in the
production process.
• Operations: This is the stage where raw products are
turned into the final product.
• Outbound logistics: This is the distribution of the final
product to consumers.

39. CONTINUED…
• Marketing and sales: identification of customer’s
needs and generation of sales through advertising,
promotion, distribution.
• Service: involves how to maintain the product's
performance after it has been produced. This stage
includes things like installation, training,
maintenance, repair, warranty and after-sales
services.

40. SUPPORT ACTIVITIES
• Procurement: This is how the raw materials for the
product are obtained.
• Technology development: activities intended to improve
product and the process.
• Human resource management: Involved in hiring &
retaining the proper employees to help design, build &
market the product.
• Firm infrastructure: includes activities such
as organization's structure, its management, planning,
accounting, finance & quality-control mechanisms.