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Automation of processes
Total quality management
Modifying information systems
Restructuring of organizations.
  
Take zero based approach
Focus on the customers
Look for new approach, reject the old.
Set up a new benchmark
Change the mind-set
Focus on time aspect
ã   

|t means: High quality, excellent service,
fastest delivery and fair price.
- Reject the past, start a fresh.
- Think of radical changes.
- Formulate new rules of business.
- Focus those activities which adds value to the
customers.
- Management of processes.
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ß Orders ß Order processing cycle


ß Cost ß Servicing cycle
ß |nventory ß Lead time[procurement
cycle]
ß A/C payable ß Payment cycle
ß Delivery cycle
ß Pending orders [Qty]
ß Response cycle
ß Pending queries
ß |ndex on customers
ß Customer complaints
satisfaction
ß Productivity
ß Performance
 |  
 ||  
  
ß |nflexible ß Unresponsive
ß Bureaucratic ß High overheads
ß Compartmentalized ß Delays
ß Absence of customer ß Poor work culture
focus.
ß Large gap between
value desired and value
offered
  
Old approach ʹ Cost plus
Modern approach ʹ Globally competitive
͞The cost plus approach to price is valid in
protected and sheltered markets. |n global
competition, you have to match the price of
competition or the price expectation of the
customer. You have to be profitable while you
are technologically the best and commercially
the lowest͛͛.

!|!   
ã" 
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ß Product development (improvement)
ß Methods improvements
ß Management techniques- max/min
ß Value analysis/engineering
ß Product variety by segments (mass
customization)
ß World class manufacturing
Contd͙
͞The integration of communication and
comforter technologies coupled with an
empowered knowledgeable work force will
change today͛s business organization from
event processing to real response processing
virtual enterprise͟.
STRATEG|ES FOR FUTURE
ß Strategic alliance.
ß Application of ͚|T͛ in all functions.
ß Focus on processes in organization.
ß More investment on human resources.
ß Empowerment to people.
ß Undergoing product development at faster rate.
ß Subcontracting service functions.
ß Build high propensity to change
Contd͙
ß More scientific assessment of environment
opportunities and threats.
ß More investment in research activities
[Forecasting demand, technology, consumer
behaviour, lifestyle, socioeconomic & political
trends].
TENETS OF RE-ENG|NEER|NG
ß The customer alone is responsible for defining
what constitutes product/service value.
ß Significant improvements in cycle time,
process costs and/or customer satisfaction are
key indices of process re-engg. projects.
ß Senior management must be involved
throughout the process re-engg. Project.
ß Communication and trust are must for ͚PR͛
project
SH|FT |N MANAGEMENT PH|LOSOPHY
ß Reactive ʹ Proactive
ß Delegation of authority ʹ Empowerment
ß Protective ʹ Competitive
ß Profit oriented ʹ Customer satisfaction
ß Control relationship ʹ Trust relationship
Business process ʹ a set of activities performed
across the Orgn., creating an output of a value
to the customer. |t includes following steps:
Contd͙
ß Receive input, measure, analyses, documents,
perform, process, record, access, produce,
communicate, achieve the business results.
PROCESS CYCLE T|ME CONS|STS OF THREE FEATURES
1.RVA[Real value added]- refers to activities which are
essential to the process in order to meet the customers͛
expectations.
2. BVA[Business value added]- refers to activities essential
to run the business that add costs of process but don͛t
add value for customers.
3. NVA[Non value added]- refers to activities which do not
add value from customer͛s or business point of view.

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