Process-The Hidden Sector
Process Definition lists what happens between the start and end points. It includes all the activities performed by each department, group, or person who are involved in the process. Activities are the major “works” that transform an input into an output. A process rarely has more than six major activities.For example, a simple sales process might include, Introduce Services, Identify Customer Needs, Suggest Solutions, and Articulate Benefits, Negotiate a Proposal, and Close the Sale.
Using maps to show how work currently gets done or how you want to work to be done, you can also using maps to:Orient new employees
Evaluate or establish alternative ways to organize your people to get the work done.
Identify improvement opportunities
Evaluate, establish or strengthen performance measures
In today(s) rapidly changing world, on-going process improvement is critical. Problems seem to be everywhere
On time delivery is poor
Customer service is lacking
Customer satisfaction is declining
Technology keeps on changing and you cannot keep up
Company growth has overwhelmed your ability to be consistent from one area to the next
Profitability is down
Sales are down
Day(s) sales outstanding are too high
New product development takes too long
The list goes on and on. Process improvement structure and methodology is designed to solve these process issues.
It is the application of knowledge, skills, tools, techniques and systems to define, visualize, measure, control, report and improve processes with the goal to meet customer requirements profitably.This process management model is easily adapted to focus on improving a single process.The five steps for improving a single process are shown in the figure below.We need a methodology for each process manager to use. This is the process management model shown below.
Involves identifying the internal and external customers and suppliers of the process and their needs and expectations
The second step of the method is to document the processes. This means developing process flow diagram and possibly the standard operating procedures and job work instructions if required. At this point, if there are obvious changes that can be made to improve the process, the changes are implemented.
The process measurements should be examined in time series format (control charts) so that any changes can be easily detected.
This involves setting standards for the process, bringing the process into control, determining the process capability and using problem-solving techniques to improve the process if it is not capable of meeting the standard.
The objective of this step is define what world-class is for the process and take steps to move towards the world-class process and perfection.
Business Process Improvement (BPI)
The Business Process Improvement (BPI) Model provides the structure and processes for reaching the goal of the organization. In particular,
Provides a systemic approach to help the organization make money in the present as well as the future
Focuses on continual improvement of processes
Includes on-going training for all
Emphasizes the use of data to make decisions
Provides a balance between process and people