PROCESS REENGINEERING

Process Analysis Process Design Process Flow Diagram Innovation Value Stream Mapping

 Reengineering is a fundamental rethinking and

redesign of the processes to achieve dramatic improvements in critical performance metrics such as cost, quality, delivery

Process Simplification
Incremental change
Simultaneous Projects Line Management led

Process Reengineering
Radical transformation
Limited initiatives Corporate led

Process Led
Assume attitude and

Vision Led
Change Attitude and

behavior

behavior

Continuous Improvement
Incremental change
Improve existing Low investment

Process reengineering
Radical change
Rebuild High investment

Employee focus

Employee and technology

focus

Process
A specific order of work activities sequentially

performed from start to end with clearly identified I/p and o/p.

Business Process
A group of logically related processes that use the firm's resources to provide customer-oriented results in support of the organization's objectives.

Reengineering
Why (CTC)
Customer - (Changing needs , demanding) Technology Change Competition - (Global , Local)

Why not
Complacency Fear of change

Process Based (AC)

Added Value
Initiatives must add-value over and above the

existing process value

Customer-Led
Initiatives must meet the needs of the customer

Radical Change
Stepped Approach
Process improvements will not happen over night

they need to be gradually introduced Assists the staff of the change Should be sustainable.

Framework for Process Reengineering

Opportunity Assessment

Benchmarking with peers. Review of internal process. Customer complaints. What the boss feels.

Gap Analysis

1. 2. 3. 4. 5.

Process Analysis Process Design Risks and Rewards Implementation Handover to Process owners

Process Reengineering Project

Elements

Phases Team formation Concept Phase

Change Unfreezing

Objectives

Development Phase

Change

WBS and Milestones

Implementati on Phase Termination Phase (Handover)

Refreezing

Process Analysis
Identify Scope Document Process Redesign process Evaluate performance Implement changes

Identification
Core processes
Supplier Product development/manufacture Customer

Internal processes
Cost Quality Delivery

Suggestions from employees

Scope
Broad / Narrow Team approach/ Involve team members Specialists/ facilitators

Documentation
List inputs - suppliers, outputs, customers. Breakdown into sub processes.

 Service Blueprint:
Front office and Back office activities Flow charts showing customer contact points

Process Chart

The activities performed by a person , by a machine at a work station with customer or materials
Flow Chart

Flow of material, information through various steps/processes

Data collection & Validation

Who will collect How, where and when Determine the parameters to monitor Validate accuracy Organize to Analyze

Process Design
Process flow diagram
Analysis paralysis trap Level of detail

Enriching the Process flow diagram

ANSI Standards Experts to prepare

Structural Analysis
Overlapping, Missing, Redundant, Non essential

Dynamic Analysis
Happening in the Process Cycle Time.

 Real Value Added essential in order to meet customer

expectations Business Value Added essential to conducting business like compliance No Value Added storage, movement, approvals, etc E.g. Material Ordering
Actual performance Potential performance Process Streamlining Risk impact

Performance Metrics (PQR)

Cycle time Process cost Defects/rework Customer response time

Problem for Discussion

Quality problems in the cabinet
External , Internal Idle inventory

Current Process
Inspection at factory and rework

What process change can be made

Process analysis
Place Order

Receive goods
Inspect goods Rework Re inspect and accept Deliver to Production Update records

Value Stream Mapping

To provide optimum value to the customer

through a complete value creation process.

Design Concept to customer Build Order to delivery Sustain Through life cycle for services Provides Vision and Plans to connect all the

process improvement activities

 Benefits
Understanding the Process Material and information flow Data driven decisions

 Select the product/family Draw the current state map Eliminate non value adds Draw a future state map using lean flow design Implement

Current State
Walk the gemba. Keep the customer in mind Calculate Manufacturing Critical path Time (MCT)

Record process steps and time taken and observations

 Takt time Cycle time needed to match

production rate to demand rate.

Net time available per shift
No of shifts Net time available per day

Takt time = Net time available/Demand

Eliminate non value adds

Eliminate non value adds Eliminate/reduce lead time Problems/bottlenecks push/pull Work flow improvement Process improvement

Future state
1. What does the customer really need? 2. How often we check our performance to customer

needs? 3. Which steps create value and which are waste?

4. How can work flow with fewer interruptions? 5. How to control work between interruptions? 6. How will work be prioritized?

7. Is there an opportunity to balance the work load? 8. What process improvements can be thought?

Implementation
Clarify Business Drivers and Key Customer Metrics Assess and Map Current Capabilities (Baseline) Identify Opportunities for Improvement including the elimination of WASTE Create a Vision for the Future Based on Voice of the Customer and Voice of the Business Analyze Gaps and Create Action Plan to Succeed Use Robust Set of Tools (i.e. Lean Six Sigma) Determine Priorities and Resources Necessary. Structured Process Improvement. Track Impact through Metrics.

Thank You

Assignment on Donner 1
Draw the process flow diagram for
Preparation and image transfer Dry Film photo-resist Fabrication, indicating the set up time and

run time on the chart

Discussion on Donner
Identify the process performance metrics Can we decide & how
Which orders should go to CNC drill Which orders should go to CNC router One group to present and other group to

agree/disagree to reach conclusion

Questions for VSM

Can we identify VA,NVA Why takt time is not important Can we draw a future state