Process Analysis. Process Analysis. Process Analysis. Process Analysis. A Systematic Approach to. Define Scope. Identify Opportunities.

Transcription

1 Chapter 4 A process is how a company makes a product or service. Design considerations are: Process Structure Customer Involvement Vertical Integration Resource Flexibility Capital Intensity A Systematic Approach to Process analysis is needed for process reengineering and process improvement Various process and data analysis tools are useful to inform decisions Process analysis: The documentation and detailed understanding of how work is performed, and how it can be redesigned The intent is to continually improve processes Figure 4.2 Identify opportunity 1 Implement changes 6 Define scope 2 Redesign process 5 Document process 3 Evaluate performance 4 Identify Opportunities Give particular attention to four core processes Supplier relationships New service/product development Order fulfillment Customer relationship Look at strategic issues Encourage employees who perform the process or who are internal or external customers of the process to bring forward ideas Define Scope Establish the boundaries of the process to be analyzed Assign resources that match the scope of the process Design teams may be established for large reengineering projects

2 Document Process List process inputs, suppliers (internal & external), outputs and customers (int. & ext.). Document process steps / sub- processes using diagrams, tables, charts, etc to make info accessible Note customer contact, complexity, convergence and hand-offs Evaluate Performance Identify metrics: performance measures that are established for the process and the steps within it Create multiple measures of Quality Customer satisfaction Throughput time Cost Errors Safety Other key competitive priorities Redesign Process Uncover disconnects or gaps between actual and desired performance Find root causes of performance gaps Design and document new process Redesign Process Uncover disconnects or gaps between actual and desired performance Find root causes of performance gaps Design and document new process Shift from analytical to creative thinking Consider human side as well as numbers Identify expected performance Implement Changes Widespread participation in analysis is essential, for commitment and expertise View and manage implementation as a project Seek input on implementation plan from all stakeholders Process Documentation Flowcharts Diagrams that trace the flow of information, customers, equipment, or materials through the various steps of a process. Flowcharts show how organizations produce their outputs through a myriad of cross- functional work processes, allowing the design team to see all the critical interfaces between functions and departments.

3 Flowchart of the Sales Process for a Consulting Company Flowchart of Nested Subprocess of Client Agreement and Service Delivery Step Figure 4.3 Figure 4.4 Flowchart of the Process Showing Handoffs Between Departments Flow Diagrams Service visible to customer Repair authorized Service not visible to customer Parts available Customer drops off car Mechanic makes diagnosis* Discuss needed work with customer* Check parts availability Perform work Parts not available Repair not authorized Order parts Inspect/ test and repair Corrective work necessary Figure 4.5 Customer Collect Notify departs payment customer with car * = Points critical to the success of the service = Points at which failure is most often experienced Repair complete Perform corrected work Figure 4.6 Process Documentation Service blueprints A special flowchart of a service process that shows which of its steps has high customer contact. Special feature: line of visibility that identifies which steps are visible to the customer. Service blueprints should show the extent and type of customer contact. Service Blueprint of Consulting Company s s Inventory Appraisal Process Figure 4.7

4 Process Documentation Process Charts Concentrates in more detail on a smaller number of steps that does a flowchart. It is an organized way of documenting all of the activities performed with a customer by an employee, a machine, at a workstation, or on materials. Five categories:» Operation» Transportation» Inspection» Delay» Storage Process Charts Figure 4.8 Process: Emergency room admission Subject: Ankle injury patient Beginning: Enter emergency room Ending: Leave hospital Step no. Time (min) Insert Step Append Step Remove Step Distance (ft) Activity Number of steps Summary Time (min) Step description Distance (ft) Operation 5 23 Transport Inspect 2 8 Delay 3 8 Store Enter emergency room, approach patient window 2 Sit down and fill out patient history Nurse escorts patient to ER triage room Nurse inspects injury Return to waiting room Wait for available bed Go to ER bed Wait for doctor Doctor inspects injury and questions patient 10 Nurse takes patient to radiology Technician x-rays patient Return to bed in ER Wait for doctor to return Doctor provides diagnosis and advice 15 Return to emergency entrance area Check out Walk to pharmacy Pick up prescription Leave the building Data analysis tools: Checklists: a form used to record the frequency of occurrence of certain service or product characteristics related to performance. Histograms and bar charts Histogram: summarizes data measured on a continuous scale, showing the frequency distribution of some characteristic Bar chart: a series of bars representing the frequency of occurrence of data characteristics measured on a yes-and and-no no basis Data analysis tools: Pareto Charts: a bar chart on which the factors are plotted in decreasing order of frequency along the horizontal axis. Scatter diagrams: a plot of two variables showing whether they are related. Cause-and and-effect diagram: relates a key disconnect to its potential causes. (i.e. A fishbone diagram) Graphs: various pictorial representations (e.g. pie charts, line graphs, etc) Bar Chart Pareto Charts Figure 4.9 Figure 4.10

5 Checker Board Airlines Other Equipment Weather Air traffic delays Aircraft late to gate Mechanical failures Late fuel Late food service Personnel Late baggage to aircraft Contractor not provided updated schedule Passenger processing at gate Late cabin cleaners Unavailable cockpit crew Late cabin crew Poor announcement of departures Weight/balance sheet late Delayed check-in procedure Waiting for late passengers Delayed flight departures Data snooping: The power of the data analysis tools is greatest when they are used together. Data snooping is the use of the tools to sift data, clarify issues and deduce causes. Materials Procedures Source: Adapted from D. Daryl Wyckoff, New Tools for Achieving Service Quality. The Cornell Hotel and Restaurant Administration Quarterly, November 1984, pg Cornell H.R.A. Quarterly. Used by permission. All rights reserved. Figure 4.11 Tools for Improving Quality Step 1 Checklist1 Step 2 Pareto 2 chart Step 3 Cause3 Cause-and-effect diagram Step 4 Bar 4 chart Checklists Headliner Defects Defect type Tally Total A. Tears in fabric B. Discolored fabric C. Broken fiber board D. Ragged edges Total Checklists Headliner Defects Defect type Tally Total A. Tears in fabric //// 4 B. Discolored fabric /// 3 C. Broken fiber board //// //// //// //// //// //// //// / 36 D. Ragged edges //// // 7 Total 50 Pareto Chart Number of defects C D A Defect type B Cumulative percentage

6 Cause-and and-effect Diagram Materials Other Out of specification Not available Humidity Schedule changes Process People Training Absenteeism Communication Machine maintenance Machine speed Wrong setup Broken fiber board Bar Chart 20 Number of broken fiber boards First Second Shift Third Flowchart of Bank Simulation: Looks at dynamic performance of system over time. Process is modeled to reproduce behaviour of system. Adjustments to model ( what( what-ifs ) ) will identify impacts of changes. Entrance Door (a) Flowchart for one-teller bank Entrance Door Line Line (b) Flowchart for two-teller teller bank Work Station Teller Work Station Teller 1 Work Station Teller 2 Served Customers Served Customers Figure 4.13 Simulation Results of Bank Simulation Element Types Element Names Statistics Overall Means Entrance(s) Door Service level 0.90 (s) Line Mean inventory Mean cycle time Figure 4.14 Figure 4.15(a)

7 Simulation Simulation Figure 4.15(b) Figure 4.15(c) Redesigning the Process A questioning attitude: ask six questions about each step in the process What is being done? When is it being done? Who is doing it? Where is it being done? How is it being done? How well does it do on the various metrics of performance? Redesigning the Process Creativity can be stimulated by having a brainstorming session: a time when a group of people, knowledgeable on the process and its disconnects, propose ideas for change in a rapid-fire manner. Benchmarking Systematic comparison of a firm s s processes, services or products against industry leaders Planning: identify process, leader, performance measures Analysis: measure gap, identify causes Integration: establish goals and resource commitments Action: develop teams, implement plan, monitor progress, return to step 1