W10- Redesign Principles and Tactics (1)

Reference:

1. http://sharif.edu/~albadvi/Crmses4.pdf, Dr A. Albadvi

2. http://www.brandautopsy.com/2004/07/welcome_to_mcdo.html

3. http://qualitysafety.bmj.com/content/12/1/53.full

Healthcare redesign: meaning, origins and application

4. http://www.youtube.com/watch?v=QnWtGC9DuOg&feature=results_video&playnext=1&list=PLBBDC463C68854324

Response:

Redesign principles and tactics are all about restructuring the process, informating the process and minding the process which is changing knowledge management around processes. The purposes of these principles are to maximize the value adding to a process, manage non-value adding activities and minimize anything unneeded such as wastage.

Restructuring the process includes losing wait, orchestration, mass-customization and synchronization. Losing wait is talking about concurrency, closed-loop and continuous flow. The former one redesigns time-sequential activities to be executed concurrently, the middle one builds closed-loop teams for quicker flexible interaction. The last one designs for real-time processing preferable than batch processing. Orchestration includes partnering and outsourcing, in-sourcing and routine through an intermediary. Partnering and outsourcing means partnering a process with another enterprise or outsourcing a process to another enterprise. While in-sourcing means in-sourcing a process back into an enterprise, routing through an intermediary means routing a process through middleman. Mass-customization includes flexing time, flexing space, modularity and dynamic customization. The first one refers to the flexible access by expanding the time window for a process. The second one refers to the flexible access by raising more options for physical space in which process is executed. The third one consists of independent modules that can be re-sequenced easily. The fourth one enables dynamic customization of product offerings. Synchronize consists of match offerings on physical and virtual parts of the channel, common process platform for physical and electronic processes and track movement of physical products electronically.

For informating processes, it consists of digitize and propagate, vitrify and sensitize processes. The first one digitizes at source that it shift the data entry to customers and digitize it to make it paperless. It also makes information easily accessible upstream and downstream throughout the business process. Besides, it shrinks the distance between information and decision by faster process execution and redesigning information capture and access around a process so that information for decision making in the process can be directly accessible. The second one provides on-demand information tracking information for customer of the process, reporting facilities for on-the –fly analysis such as rapid feedback about process progress, and designs standard partner interface processes for seamless exchange of information. The third one is about process dysfunction loops that it creates build-in customer feedback loops and sensors to detect process dysfunction. And it monitors environmental changes by enabling software to trigger quick business prompt response, or attach environmental probes to the process.

According to Dr A. Albadvi, the focuses on primary principals of BPR are as follows. First, a clean slate approach should be used to organizational design and change. Also, management should aware of an orientation to broad, cross-functional business processes. Besides, management and BPR team should identify the need and possibility of radical change in process performance. Furthermore, I.T. should be an enabler for change of work done. Organizational and human arrangements should also make adjustments to match with the change in technology.

According to a journal about healthcare company redesign principles, the BPR process redesign is led by frontline staff instead of normal BPR team or management. It helps to get autonomous clinical professionals to change their practices by letting gradual negotiation and implementation. It also mentioned that engagement of clinician is important such as senior management commitment and persistence.

This video also illustrated an ecosystem for healthcare on redesign process by orchestration. In this case, OEM, dealers, retailers, suppliers and repair shops are involved in ecosystem for purchasing, inventory check, service sharing and issue management processes. R&D department exchanges data and drug with other clinics within the network. It is in partnering approach to implement a process with other enterprise.

According to news mentioned, a concrete example of outsourcing tactic can be shown. McDonalds Hong Kong has provided McDelivery service to customers that customers can just simply phone call to make orders and wait for the food delivery directly to their homes or requested locations. This convenient call center service offered by McDonald Hong Kong has been outsourced to a service call center in GuangDong. All McDonald’s Hong Kong customers ‘calls are redirected to GuangDong through VoIP technology. Once an order has been made, ordering process will be sent to the nearest McDonalds branch in Hong Kong. This successful case makes McDonald reduce human cost and increase customer satisfaction. It is proved that service outsourcing can be made no matter how far the outsourcing company is.

To conclude, redesign principles are help to improve process and as a result, operation performance can be greatly improved by combining different tactics and principles. It is also proved that every core principle have successful cases. To chase for the trend of development in the world, may many other principles raised or the focus of existing changed.

W8- Process Redesign (1)

W8- Process Redesign (1)

Reference:

1. http://www.bpminstitute.org/articles/article/article/what-is-scope.html

2.  http://webs.twsu.edu/whitman/papers/ijii99muthu.pdf

[Business Process Reengineering: A Consolidated Methodology, Subramanian Muthu, Larry Whitman, and S. Hossein Cheraghi]

3. http://vimeo.com/6334982

Response:

To successfully implement BPR, scope of business process reengineering should be clearly defined. Following by triggering and executive visions and BPR project mobilization, there is a process redesign in phrase 3 methodology involving scoping, modeling, analysis, redesign and integration. 

Scoping is as follows.

First, we have to operationalize the process performance target by listing and priority. Each goal should concretely anticipate the process performance. Second, process boundaries should be well defined to explicit starts, ends, customers, inputs, outputs and triggers, which helps BPR team to collect data for phase of modeling. Third, key process issues should be identified of its strength and limitation that may affect working environment. Process issues should be known by interview and questionnaire to ask about inputs from customer, employees and external entities. Fourth, BPR team also has to understand the best practices and define the initial visions for some critical process. Initial visions should be well defined and documented. Fifth, BPR team should familiarize the skillsets of BPR software with users. Sixth, after doing all of the above process, we can outline and organize the data collection plan and collect baseline data. It is important to identify key source of data, select case category criteria, define different type of data needed, define data collection methods and collecting baseline data. A Questionnaire is a useful tool to check consistency and reliability of practice by asking few similar questions. After that, we can plan for modeling phase by gathering all of the data needed and then developing a plan for modeling.

According to BPM Institute, it emphasizes the focus of BPR in area of operation vision, system boundary, impacted areas and measure so as to successfully implement BPR.

First, it suggests to clarify the operation process and knowing whether it is important and off track process. Besides, system boundary should be clarified with begin state, inputs, stakeholders, end state, outputs to specific customers and collaborators. Also, impacted areas should be identified such as affected process, organizational units and roles, existing applications, data and technology. Integration and transition costs are also the key element to take risk of solution feasibility.  Finally, it suggests some useful measures to quantify the expected outcomes so as to evaluate the degree of success in a framework with objectives stated which should be triggered by a true accountability. However, normally this procedure is missed in many BPR projects because BPR team may lack of ability.

It is clearly seen that scope plays a key role to BPR project. However, it may be in different place in different methodology.

According to a journal suggesting a consolidated methodology, some methodologies as follows are placing scoping behind determining customer requirements. Or some places another orders into scoping such as setting direction, finding out baseline and benchmark, creating the vision as the first part.

It also suggests that the consolidated approach should place scoping right behind identifying customer driven objective. As it claimed, an intense customer focus, superior process design and a strong and motivated leadership are important elements to lead to success of any type of business corporations.

 

Besides, Hammer and Champy illustrated more about process design in structure of assess, structure, converge, plan and deploy. First, assess mean clearly define problems. While structure means stating prioritized objectives, current challenges and process models, converge includes prioritizing alternatives. Plan consists of potential problem analysis, consolidated recommendation and deployment schedule. Deploy means monitoring deployment.

To different business, different methodology may be implemented on BPR project. However, scoping in process redesign with customer based is important anyway to trigger the business success.

W6- Basics of BPR (2)

References:

1.       “Business Process Management Journal” http://www.emeraldinsight.com/journals.htm?issn=1463-7154&volume=6&issue=1&PHPSESSID=0epveejk8gkaseebugqbcdch14

2.       “Business Process Reengineering: Its Past, Present, and Future” by J. Adebayo

http://conference.iproms.org/conference/download/4153/84

3.       http://www.ims-productivity.com/page.cfm/content/Business-Process-Re-Engineering-BPR/

4.       http://www.towersassociates.com/Towers_Associates_Process_Excellence_Evolution.html

5.       http://www.youtube.com/watch?v=XAxtDFSEyjk&feature=related

6.       http://www.emsstrategies.com/dm090203article2.html

Response:

With an objective of overall improvement of business processes, design mindsets of Business Process Reengineering (BPR), organization adaption, evolution of BPR and BPM concepts are vital to understand when implementing a BPR project. Process improvement can be a catalysis business success. There are lots of benefits of process improvement which can be illustrated by the following video.

In BPR, the role of IT plays as a basis of business process. IT is the core value to support and enable business process so as to reach the business strategy. However, the success in business strategy requires the alignment of business process and IT. For instance, if a company aims at technology leadership to improve customer satisfaction, business processes should be redesigned and modeled to be effective and efficient with the support of IT. From fundamental support to functional development, IT offers, for example, automation of process, capturing of physical information, sharing of knowledge and creation of solution that are established at different stage of BPR project.

It is clearly seen that IT can provide with a series of functionality. Meanwhile, in order to successfully implement the BPR project, the organization environment consisting of Information Technology use, Business Processes, Organizational form and Requisite People skills should be adjusted accordingly to retain functional harmony. Once there are any changes in these variables, the other should change as well to match the new trend. The Leavitt diamond model is introduced for long. The key point is to keep the well balance of these four elements to improve the organization performance when introducing IT enabled- organization transformation.

From lesson, we learnt about the waves of Business Process Improvement which can be shown as follows. Total Quality Management (TQM) is a continual improvement focusing on customer satisfaction towards products and service. Normally TQM means the evolution change that provide with incremental improvement to the business process. TQM may not be IT based. Meanwhile, 1^st wave BPR is talking about a IT-based radical change and quantum improvement that leads to a revolution. After 1^st ware of TQM and BPR, 2^nd ware of TQM and BPR continues to process improvement such as Time-based competition, Web-enabled e-business and knowledge management. It is also suggested to integrate BPR with TQM together as a modern practice.

There is further information about business process improvement suggested by Business Process Management Journal. As the contemporary business environment becomes increasingly dynamic, BPR is a must as a result of improving the existing business process. However, there is a main reason for BPR failure that the soft side of BPR such as people resists to the change. Therefore, Group Support System is recommended when implementing BPR. Group Support System (GSS) can be used to communicate, cooperate, coordinate, solve problems, compete, or negotiate. To match with changing environment, GSS can maximize the people involvement, minimize the technology interface and make better coordination so as to reach the next step of knowledge management.

The waves of Business Process evolution which is suggested in another way includes Total Quality Management, Business Process Improvement, Six Sigma, Lean Based Approaches, Business Process Management and Customer Expectation Management. TQM is same as mentioned before. After TQM and BPR, there are measurement processes of Six Sigma or ISO to manage the process variations that may cause to defects. Manufacturing and business processes can be measure, analyzed, improved, and controlled. As a result, it leads to business success. After that, there is Lean based approaches which are generic process management that requires less human effort, less manufacturing space, less investment in tools, and less engineering time to develop a new product. An example of Toyota can be shown that Toyota Production System introduced this management practice to focus on reduction of the original Toyota 'seven wastes' in order to improve overall customer value. ‘Seven Wastes’ are overproduction, waiting, transporting, inappropriate processing, unnecessary inventory, excess motion and defects. Now Toyota steadily grew to the most valuable and the biggest car company in the world.

Business Process Management is also important to business process improvement. It is about a management technique and tool to design, enact, control, and analyze operational business processes involving humans, organizations, applications, documents and other sources of information. BPM differs from BPR as it is not one-off revolutionary change to business process but continuous evolution.

Now, Customer Expectation Management (CEM) is an emergent approach of defining business, not in terms of the goods and services provide, but in terms of ‘customer expectations’. CEM realizes everything align with customer expectation. And it helps reductions in cost, improvements in revenue and enhanced customer service. As a result, it leads to customer satisfaction on business performance.

Additionally, J. Adebayo suggests that present BPR focus on the full picture of organization and re-optimise the business processes for overall goals and objectives. Therefore, IT solution like Enterprise Resource Planning, Customer Relationship Management and Supply Chain Management rapidly increase. They all include customer and cross-organizational boundary process. Besides TQM and BPR suggested as above, benchmarking and change management also need to be concerned in order to reach success in business process improvement.

Although some organizations may think changes must improve business performance. However, a change doesn’t mean a must to implement BPR/ BPM. There are some situations that business can consider to achieve BPR such as level and aspect of improvement, organization position, procession of resources, innovative vision of project leader, risk affordance and plenty of payback. To conclude, the approaches should depend on the nature of different industry and corporate strategy. IT innovations/ IT investment is not a must to business improvement. Attention to customers’ needs so as to attain long-term competitive advantages is preferable.