Dynamic Case Management for Manufacturing
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1 Dynamic Case Management for Manufacturing Dr. Setrag Khoshafian Chief Evangelist & VP of BPM Technology 2011
2 Agenda: Dynamic Case Management for Manufacturing The Vision: Adaptive Enterprises The Need for Dynamic Case Management What is Dynamic Case Management? What are the Trends? Who Benefits from Dynamic Case Management? Wrap Up 22
3 Scientific Management Business Process Re-engineering Improvement Lean Six Sigma Adaptive Manufacturing Enterprise Structured Production Workflow Social Mobile Collaborative Ad-Hoc Dynamic Automation DCM Business Rules Decision Management Business Events Intelligence EA SOA WOA COA 33 Architectures
4 Agenda: Dynamic Case Management for Manufacturing The Vision: Adaptive Enterprises The Need for Dynamic Case Management What is Dynamic Case Management? What are the Trends? Who Benefits from Dynamic Case Management? Wrap Up 44
5 Improving Warranty Claims Processing: reduce waste + improve efficiency Industry averages 1-4% of revenue Cost Control Claim Admin Cost Operational Cost Supply Chain Cost 55 Dynamic Case Management Efficiency Claim processing speed Policy/Process configuration speed Just in time communication/informat ion: customers, suppliers, engineering, dealers, etc.
6 Improving Efficiency in Warranty Claims Processes: reduce variance + improve quality 66 Dynamic Case Management Customer Experience Quality Timely Resolution Consistent Resolution Interaction/Service with context Fraudulent and inaccurate claims ~15% of claims Reduce Processing Errors Improve product and service quality with decisioning Agility in handling exceptions
7 According to Ford Motor Company: 8-10% of Warranty spend is attributable to over payments to dealers and administrative errors. Warranty is a key element of feedback into the Quality process. 77 Source: PegaWORLD 2011 Ford Motor Company presentation
8 Agenda: Dynamic Case Management for Manufacturing The Vision: Adaptive Enterprises The Need for Dynamic Case Management What is Dynamic Case Management? What are the Trends? Who Benefits from Dynamic Case Management? Wrap Up 88
9 What is a Case? A case is the coordination of multiple tasks planned or unplanned and associated content, towards a concrete objective or goal. Cases are dynamic, and respond to and generate events. 99
10 Elements of a Typical Case Case Subjects Collaboration Case Business Objectives Rules and Policies Case Data Sub-Cases Case Content Tasks Case Events Processes & Dependencies 1010 Unstructured, Dynamic and Ad-Hoc
11 Dynamic Case Management: Continuous Improvement Cycle Directly Capture Business Requirements & Objectives Monitor, Improve & Optimize Business Performance Change, reuse & Specialize Automate Work & Manage Dynamic Cases 111
12 1212 Directly Capture Requirements and Objectives
13 Directly Capture Business Requirements and Objectives (DCO) Why DCO? Empowers the business to realize business objectives and build robust business applications Continuous Improvement Aligns business and IT Enhances IT productivity Governs project roles and scope 1313 Promotes Collaboration and Communication
14 DCO: Case Type Definition 1414
15 Dynamic Case Management The Agility Layer for Warranty Claims Driven by Business Objectives Agility Layer Multi-Channel Interactions Dynamic Case Management Integration Plumbing Enterprise Repository 1515
16 Business Rule Example Situation: Silver Star Dealer Located in the USA Issue Fraud Alert? No Yes IF In service date < 3 years from date of failure AND mileage < 36,000 AND a previous claim has been made against this VIN# AND Mileage of latest claim is less than previous claim 1616 Then Issue Fraud Alert and reject claim
17 Content/ Attachments Service Bulletins Repair Procedures Parts Return Notices Case Subject: Claims Processing C Auto Case File S1 Repair #1 Tire Damage Repair #2 Oil Change S2 S 3 Repair # 3 ABS Fault Verify Coverage Pay Claim Verify Coverage Repair Fault Verify Parts Return Recover cost Diagnose Procure Parts Repair Fault Return Parts Case workers Pay Dealer Send Part to Requestor 1717 CSR Dealer Service Technician Claims Specialist
18 Business Rules Drive The Cases and Decision Management Optimizes the Customer Experience Expression Rules Integration (SOA/WOA/EDA) Rules Decision Trees, Tables, Constraints UI Rules () NBA Decision Management Event Rules 1818
19 Automate Work & Manage Dynamic Cases 1919
20 Customer Channel Best Policy, Procedure, Information, UI: Based on Business Intent Case Processes Case Data Sources Why Automation? Case Rules Case Forms Call Center Web Self Service Automation Closes the Gaps Business policies drive work across silos Resolve work automatically Field Office Service/Product Specialization Client Relationship or Circumstance Channel Features Business Intent Transparency and visibility of processes Location, Organization & Language Analyze and Improve Security Change, reuse & Specialize 2020
21 Dynamic Case Management Ad-Hoc Changes Auto Claims case Case workers CSR Dealer Service Technician Claims Specialist Service Bulletins Repair Procedures Parts Return Notices Repair Fault Tire Damage 2121
22 Managing Cases: Case Load 222
23 2323
24 Large Extended Warranty Provider Business Challenges Keep Costs Down, Drive Sales Up Maintain Customer Loyalty Onboarding of new clients Invisible to End Consumer Pega Solution Benefits CSR Desktop using Pega CPM One set of core rules and processes Client specific UI, rules and processes Onboarding speed a competitive advantage Significant improvement in throughput Improve customer service 2424 Customizable, end-to-end warranty service solutions for our industry partners
25 Case Management Example: Auto Warranty Claim Business Objective: Satisfied customer Lowest possible cost Channels Batch Call Center Web Portal Handheld 2525Devices Content/ Attachments Service Bulletins Repair Procedures Parts Return Notices Related Cases Compressor Failure Coolant Leak Results: Operational efficiency 30-40% Processing costs 15-20% Claim costs 5-10% S1 Repair #1 Tire Damage Bearing Failure Verify Coverage Case Subject: Claims Processing S2 C Auto Case File Pay Claim Diagnose Repair #2 Oil Change Procure Parts CSR Verify Coverage Case workers Dealer Repair Fault Service Technician S 3 Repair # 3 ABS Fault Repair Fault Return Parts Claims Specialist Pay Dealer Verify Parts Return Related Subjects Product Quality Recover cost Send Part to Requestor Recalls
26 Case Life Cycle Case is created Open Case: Case Workers collaborate and work on various tasks for the case. Ad-Hoc changes: tasks, collaboration, content, flows, and policies Resolve Case: resolved cases can be completed, closed, rejected, duplicated, revoked, etc. Re-Open Case: any case can be reopened and re-processed. 2626
27 2727 Monitor, Improve & Optimize Business Performance
28 Business Activity Monitoring (BAM) Why BAM and Real-Time Reporting? See work constraints before they become problems Build and share the information you need Provide work visibility to stakeholders accountability and success Be pro-active in resolving bottlenecks BAM Analysis 2828 Better control of the business
29 Situational Execution: Change, Re-Use, and Specialize 2929
30 DCM Enterprise Repository Enterprise Repository Testing Versioning Reuse/Specialization Auditing Search/Navigation Access control Cases for management Instant deployment Rollback Best policy or procedure for a given situation (context): customer, channel, service, location, etc. 3030
31 Change, reuse & Specialize Manage and Easily add specialized layers of Warranty Policies and Procedures Customer A Customer B Customer C Elite Service Offering Standard Service Offering Other Service Offering Customer Specialization Line of Business Standard Offering Warranty Framework Platforms\ Pilot Gold Customers Silver Customers Value Added Services US & Canada Offerings Warranty Service Manager BPM Suite with DCM APAC Offering 3131
32 Trends Shaping the Future of DCM 1. Supporting Knowledge Assisted Workers 2. Social & Mobile DCM 3. Predictive and Adaptive DCM 4. Ubiquitous DCM: DCM In the Cloud 3232
33 1. Supporting Knowledge Assisted Workers Traditional Production/ Structured Workflow Sweet Spot of Dynamic Case Management Case Enabled Work Automation 333
34 Case Management Case Study: BAA Aircraft Turn-around Case Mgmt Business Objective: Departing Aircraft Punctuality Results: Airport Running at 98.7% Capacity On-time departures up from 68% to 83% Case Subject: Aircraft Turn-Around Case workers Related Subjects Channels Content/ Attachments Air-to-Air Case 1578 Stand planners Airline Operations Staff Airport Staff Passenger(s) Bags Radar CDM Portal Min Target Turn- Around Passenger Time Info Flight Update Message Cleaning Subcas e A Inbound Flight Activities Bags Landing Taxiing T Refuelling Outbound Subcas Flight e B Activities Passenger Mgmt Departure Scheduling 3434 Mobile Phone Handheld Devices f Events: External, Internal Weather Mechanical Security Delay Alert Related Cases Outbound Inbound Flight Flight Baggage Reconciliation Match Bags to Passengers Board Passengers 1. Supporting Knowledge Assisted Workers
35 3535 Heathrow An event driven airport Benefits Airport ranking improved from last to 4 th in the world T5 voted best terminal in the world Reduction in taxi time - 90 litres of fuel per flight ~ 18.98m per year On-time departure from 68% to 83% Pega manages the process from entry into airspace, while on the ground to exit of airspace Pega allows us to share processes not just information Eammon Cheverton FBCS Heathrow Airport 1. Supporting Knowledge Assisted Workers
36 2. Social & Mobile BPM Change, reuse & Specialize 3636
37 2. Social & Mobile BPM Social Networking Monitoring and Analytics Dynamic Case Management 3737
38 3. Predictive and Adaptive DCM Insight Strategy Deployment Delivery Control Third party Predictive Models Customer Driven Offline Predictive Models Collaborative Strategy Design & Reuse Next Best Action Strategies BPM Suite Agent Assisted Planning, Simulation, Monitoring, and Management Adaptive Models Batch Outbound Legacy Data 3838 Existing Apps
39 3. Predictive and Adaptive DCM DCM 3939
40 4. Ubiquitous DCM: DCM In the Cloud Cloud On-Premise 4040
41 Pega Cloud : Build, Test and Run Pega Applications on the Cloud Globally Available 24x7 PREMIUM SUPPORT 99.95% SLA Global Network of data centers across North America, European Union, Japan, Singapore Highest Security Dedicated Private Cloud and VPN for each customer ISO 27001, SAS 70 Type II Certified HIPAA, PCI DSS, FDA 21 CMR and European Union Data Protection Directive compliant Speed and Agility 20 minutes for Dev/Test system 48 hours for Production system No lock-in : 100% portability between Pega Cloud and your own data center Lower TCO Flat monthly fee covers software, infrastructure, disaster recovery, VPN, 24x7 service/support Dedicated Pega Cloud environment for each customer Pega NOC VPN VPN ES Ubiquitous DCM: DCM In the Cloud
42 Agenda: Dynamic Case Management for Manufacturing The Vision: Adaptive Enterprises The Need for Dynamic Case Management What is Dynamic Case Management? What are the Trends? Who Benefits from Dynamic Case Management? Wrap Up 4242
43 Who Benefits from DCM? IT Increased Productivity Model-driven development Instant deployment Enterprise Repository: Re-use/specialize Successful SOA through DCM Portable: Cloud or On-Premise 4343 Warranty Claims Operators Build for Change Increased Efficiency Intent-aware user interfaces Automated Straight Through Processing Smart Work Management Next Best Actions Dynamic Ad-Hoc Tasks/Processes/Subcases 360 O view of the case Director of Warranty Services (Business) Increased Visibility and Control Directly capture Business Objectives Monitor business activities Smart control of business processes Control Cost Increase Revenue Improve Quality Manage Change
44 Direct Feedback 444
45 Time Value Map Real-Time Lean Change, reuse & Specialize Source: Lean Six Sigma for Service by Michael George 4545
46 Agenda: Dynamic Case Management for Manufacturing The Vision: Adaptive Enterprises The Need for Dynamic Case Management What is Dynamic Case Management? What are the Trends? Who Benefits from Dynamic Case Management? Wrap Up 4646
47 CUSTOMERS A Customer B Customer C Elite Service Offering Standard Service Offering Other Service Offering Pilot Gold Customers Silver Customers Value Added Services US & Canada Offerings Company wide Standards BPM Suites& Frameworks Europe Offering So what about the Adaptive Manufacturing Enterprise? Driven by Customer Focused Value and Continuously Monitored Objectives Automated, Dynamic, and Continuously Improving Customer Oriented Architecture DCM Customer Contextual, Specialized, and Continuously Innovating Value Added Services Slivers Thinking big and starting small with Continuous Iterations Insightful and Continuously Learning ID 1 For 2 Better Decisions 3 4 Data Behavior Value Good 1,000 Bad 120 Bad 60 Good 2,500 Past Experience Predictive Analytics Predictive Model
48 Closing the Divide between Business and IT in the Adaptive Manufacturing Enterprise Days DCM Solution Capability Conventional Solutions 4848 Time
49 Questions & Answers Continuous Enterprise Improvement Through BPM
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