Process Management
Basic approach to process design suggested by Motorola
1. Identify the product or service: What work do I do?
2. Identify the customer: Who is the work for?
3. Identify the supplier: What do I need and from whom do I get
it?
4. Identify the process: What steps or tasks are performed? What
are the inputs and outputs for each step?
5. Mistake-proof the process: How can I eliminate or simplify
tasks?
6. Develop measurements and controls, and improvement goals:
How do I evaluate the process? How can I improve further?
Key Service Dimensions
Customer contact and interaction
Labor intensity
Customization 3
Key Questions for Service Process Design
Required Service Standard: What service
standards are required to be met?
Result in service to be provided: What is the final
result of the service to be provided?
Waiting Time: What is the maximum waiting
time that a customer will tolerate?
Durability in service: How long should it take to
perform the service?
Consider Service Encounter: Which components
can differ from one service encounter to another
while still meeting standards?
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Process Improvement
Process improvement is a method of making business processes more
efficient, accurate, and reliable. It's an ongoing practice that can involve
analyzing, identifying, and refining existing processes.
Benefits of process improvement:
Reducing waste and errors
Improving productivity
Speeding up time to market
Improving workplace culture
Remaining compliant
Exceeding customer expectations
Improving end-user experience
Cost reduction
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Process Improvement
Productivity improvement
Traditional
Work simplification
Industrial
Planned methods change
Engineering
Kaizen
Stretch goals New approaches from
Benchmarking the total quality
Reengineering movement
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Kaizen
Kaizen – a Japanese word that means gradual and orderly continuous
improvement
Focus on small, gradual, and frequent improvements over the long term
with minimum financial investment, and participation by everyone in the
organization.
Discontinuous change resulting from innovative and creative thinking,
motivated by stretch goals, and facilitated by benchmarking and
reengineering
Benchmarking
Benchmarking – “the search of industry best practices that lead to
superior performance.”
Best practices – approaches that produce exceptional results, are usually
innovative in terms of the use of technology or human resources, and are
recognized by customers or industry experts.
Types of Benchmarking
Competitive benchmarking - studying products,
processes, or business performance of competitors
in the same industry to compare pricing, technical
quality, features, and other quality or performance
characteristics of products and services.
Process benchmarking – focus on key work
processes
Strategic benchmarking – focus on how
companies compete and strategies that lead to
competitive advantage
Reengineering
Reengineering – the fundamental rethinking and
radical redesign of business processes to achieve
dramatic improvements in critical, contemporary
measures of performance, such as cost, quality, service,
and speed.
Reengineering
Reengineering – the fundamental rethinking and
radical redesign of business processes to achieve
dramatic improvements in critical, contemporary
measures of performance, such as cost, quality,
service, and speed.
Reengineering involves asking basic questions
about business processes:
Why do we do it?
Why is it done this way?
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