ch&cie - process optimization - teaser
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Chappuis Halder & Cie has managed numerous projects of restructuration and reorganization for leading international companies
Lean & “A Day in Life Of” approaches
Outsourcing & Offshoring
IT Transformation Programs
Efficiency optimization Costs reduction Productivity and quality improvement
Automating processes
Increase efficiency via tools and process automation and by avoiding manual treatments:
Enormous technical challenges
Requires process streamlining to take advantage of the new capabilities
Decreasing compensation costs
Reduce compensation costs by reallocating staff on a job-by-job or activity-by-activity basis, however:
Benefit is now eroding rapidly in the most popular offshoring centers
De-multiplication of intermediaries may increase the risk for error and delay
Minimizing waste and variability
Make processes more accurate, timely and efficient by improving:
The alignment of operating teams
The balancing of capacity and workloads
The transparency of information flows
Methodology described in the present document
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Combine respective advantages of LEAN top-down approach with DILO bottom-up one to define a customized project
LEAN
Anchored on an innovative mix between holistic and operational theories, our approach enables us to achieve process optimization and cost reduction both from a global and a detailed
perspectives, while ensuring a high level of implication with the operational teams
LEAN methodology relies mostly on brainstorming in a top-down fashion
It aims at improving efficiency and productivity by taking an holistic approach: studying processes in their entirety rather than focusing on specific activities or individual functions
Taking this global perspective is particularly essential within complex, highly sophisticated processes and environments, not well captured via operational approaches
DILO
DILO “ A day in Life of” is a bottom up approach which relies on detailed tasks and process observation and analysis
Granular analysis is performed task by task and aims at identifying operational failures or inefficiencies in order to improve the whole process
The DILO approach allows us to identify very accurately optimization opportunities often neglected in holistic approaches and offers a true proximity with the operational teams
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The LEAN comprehensive approach to reducing waste and variability has proved to be very efficient in the Financial Services sector
• Better define the data expected and needed by each department to be efficient
• Define which data is necessary and adapt systems accordingly, centralize data as much as possible
Data Management
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Process optimization
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Errors reduction
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Communication
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Schedule management
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Over-production avoidance
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Limit down times
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• Identify the unnecessarily long processes or sequences• Identify tasks performed twice and correct the process accordingly
• List the most frequent errors and implement new processes to avoid them
• Mainly, identify operational risks, input mistakes, deficient controls, inconsistent compliance rules…
• Point out failures in the communication processes• Propose actions to improve their efficiency, systematically try to
decrease the number of intermediaries
• List the main interruptions in a work day: breaks, meetings, etc.• Optimize time-schedule to decrease the number of interruptions
(avoid non-stop meetings)
• Avoid multiple and unnecessary reporting• Perform stickiness assessment• Identify lack of automation instances
• Decrease validation down times • For transversal tasks (across several departments), improve work
organization by increasing visibility on each team member’s activities
• Keep only the essential second level controls
The goals are to reach more accurate, efficient and less risky processes, meeting deadlines via:
• Resources allocation optimization • Just-in-time processes• Dropping process outcomes
variability • Increasing information circulation
speed and transparency• Process redesign• Errors minimization
Des
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Ben
efits
A focus on competencies and expertise underutilization can be added to the 7 other factors and be complementary, as it is often a key issue in FS
The LEAN methodology is structured around 7 “Mudas”, used as user-friendly tool to identify the opportunities of costs reduction and process optimization
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DILO method focuses on the operational challenges and assesses in detail “field costs”, quality and risks for each process
The quantitative approach is based on the measurement of the average time for each task:
Identification of the main bottlenecks
Identification of under-efficient areas
This implies spending a day “shadowing” a person involved the process being studied
The subject’s activities are observed and recorded, then analyzed to identify opportunities
Sampling of a larger number of people with the same role might be required in order to assess the frequency of process breakdown and to quantify the impact of the improvement opportunity
The analysis should be conducted on a normal day (not during a rush or quiet period)
The qualitative approach is based on what is observed by the employees:
Problems observed and operational constraints identified
Causes of the main failures and waste
Best practices identified and appropriate solutions to be communicated to the other teams
Interviews allow us to:
Describe what activities make up the process being studied
Understand their precise nature
Identify roadblocks to getting work done and collect ideas for improvements
Too often neglected, this phase is essential as it facilitates communication on the project, involves employees and secures their proactive participation
A quantitative approach combined with… … a qualitative one
It has proved to be efficient in:• Avoiding duplication of effort• Improving inefficient processes• Identifying non-value adding
activities• Pointing out frequent and/or
significant communication breakdowns
• Improving clarity about everyone’s roles and responsibilities
• Correcting communication breakdown or barriers
Ben
efits
Des
crip
tion
The DILO study is a process analysis of specific tasks, looking for process breakdowns and cross-impacts on other parts of the business
The DILO approach allows real proximity with the teams, and their implication and awareness of the necessary changes. It is an essential part of the change management implied by the solutions proposedA
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A global approach to define a customized organizationM
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Ishikawa diagram
Brainstorming of the “5 Why” results
KPI/KRI
Workload analysis
Analysis of the causes of all Phase I malfunctions:
Identification of the main causes and categorization
Assessment of the impact
Prioritization related to the impact
Arbitrage between re-engineering and design of new processes
Identification of solutions in terms of:
Process redesign and optimization
Workload rebalancing and resources reallocation
Enhancement of communication fluidity and transparency
Improvement in utilization of competencies and expertise
II – Identification of the causes of inefficiency and
their impacts
The first step is to define clients expectations and main objectives
The analysis will then focus on the following axes:
Identification of low value-adding tasks
Identification of waste through process mapping and identification of redundancies
Identification of defaults in processes and measurement of their frequency
Measurement of process variability
Measurement of the workload
Default likelihood analysis: risks and costs
I – As-is analysis and diagnosis
Voice of the Customer synthesis
“Critical To Quality” Tree
SIPOC
Process flowcharts
Charge analysis
Process variability graphs
Build scenarii from the different solutions and select optimal target:
Determination of resources reallocation and definition of the new organization chart
Stretching of the workload to avoid time-breakdown during the working day
Optimization and automation opportunities for select processes and suggestions for more value generating tasks
Actions prioritization, risks assessment and test of the most impacting processes changes
New processes documentation and training of the teams
Estimation of the project benefits
III – Recommendations proposal and
implementation
Target process mapping Organization scenarii and new
organization charts Job description Roadmap and monitoring plan Operating procedures and training
material