Chapter 10. Process Improvement.ppt

MAN 3504 - Chapter 10 Chapter 10. Process Improvement Outline Business Process Reengineering Definition People of Reengineering Elimination of Waste Identification/Elimination of Waste Commitment to People Commitment to Quality JIT Production Process Business Process Reengineering Hammer and Champy 1993 : “ Reengineering isn’t another idea imported from Japan. It isn’t another quick fix that American managers can apply to their organizations. It isn’t a new trick that promises to boost the quality of a company’s product or service or shave a percentage of costs. … Business reengineering isn’t about fixing anything. Business reengineering means starting all over, starting from scratch. …. What matters in reengineering is how we want to organize work today, given the demands of today’s markets and the power of today’s technologies.” BPR Process Rethinking Focus on the product/result, not in the current process. Combine several jobs into one, moving away from the assembly line view of process horizontal integration . Allow workers to make decisions, provide them multiple skills vertical integration . Organize the process so that the steps are performed in a natural order: eliminate unnecessary precedences. Develop processes that have multiple versions, reducing or eliminating standardization. To improve the efficiency, start processes with a triage area that determines the correct path. BPR Process Rethinking Plan work so it is performed where it makes the most sense, eliminating departmental barriers. Reduce checks and controls to reduce process cost. Implement hybrid centralized/decentralized operations that use some common operations, but allow individuals and groups to make decisions. Have those that use the output of the process, perform the process. BPR The People of Reengineering - Companies do not reengineer, people do. Leader – a senior executive who motivates and supports the reengineering effort Process Owner – a manager who is responsible for t