PRESENTED BY:CHANDAN CHOUDHARYTRAPTI AGGARWALNEHA SHARMAVIKAS

What Is Process?

• Process is combination of facilities, skills and technologies that are used to produce products or provide services.

• Process is a naturally occurring or designed sequence of steps or events which produces some outcome.

INPUTSPROPERTY, MACHINERY,

LABOUR, RAW MATERIALS,

CONSUMABLES

PRODUCTION PROCESSCONVERSION, KNOWLEDGE GATHERING & PRESENTATION

OUTPUTSSALEABLE GOODS & SERVICES, VALUABLE

INFORMATION

What is Process Innovation?

• Process innovation combines adopting a process view of business functions with the application of new ideas and technology.

• Process innovation depends on the transfer of knowledge and information.

Why Process Innovation?

• Increase bottom-line profitability• Improve efficiency, improve productivity• Increase employee job satisfaction• Deliver enhanced product or service value to

the customer• For controlling and reducing process wastage.• For controlling and reducing work in process

inventories.• For reducing processing time & costs.

• Process innovations builds an adaptive business process management system (BPMS)

• For manufacturing companies – integrates new production methods & technologies that lead to improved efficiency, quality, or time-to-market, and services that are sold with those products

• For service companies – introduces "front office" customer service improvements and add new services.

FOCUS

INDICATORS OF PROCESS INNOVATION

• Ask the question: why do we process this way?, if the answer is: because we have always done it like this, then it is clear indication of need for innovation

• Think from the customer perspective • Look for the innovative ideas across the industry

and try possibilities• Check where the pain and frustration in a

business process which provide initiatives

BLOCKERS OF PROCESS INNOVATION• Many ideas originate from work floor, but these

people are rarely asked about and if they do, they are often discarded at middle level

• Around the edges syndrome- executives keep looking at the edges of the problem and not at the heart

• Black box syndrome- executives see their processes as black box, they don’t know the details, but somehow processes produce results

Keys to Process Innovation

• Migrating to a new process requires understanding the current one

• Recognizing problems in an existing process ensures that problems are not repeated in the new process

• Analyzing current process reveals strategies for new process

• Promoting individual and organizational learning strategies sustains process innovation

STEPS IN PROCESS INNOVATION

Successful process innovation requires the following:

• Proper Planning

• Creating a multifunctional team of Technical, Production and Maintenance Department.

• Selecting a small group of operators and workers, seeking their participation in process innovation through communication, counselling, training & rewards etc.

• Pilot run of the new process.• Observations and improvements.• Large scale training of entire work force.• Commercial use of new Process.

ATTRIBUTES OF INNOVATIVE PROCESSES

1. Elimination or decrease in manual processes.

2. Coordination of processes across distances.

3. Change of process sequence; allow parallel processes.

4. Capturing process information to understand process better.

5. Improved analysis of information and decision making.

6. Capture and distribute organizational information.

7. Monitoring process status.

8. Coordination of tasks and processes (cross functional).

TOOLS FOR PROCESS INNOVATION

• Developing Assembly Charts for studying conceptual framwork of material flow .

• Developing Process Charts for studying conceptual framwork of process flow.

• Computer Aided Designing (CAD), Computer Simulation.

• Time Study for comparing time taken for various operations & tasks.

• Value Engineering and Analysis.

• Business Process Reengineering.

• Benchmarking.

• Using Change Management Strategies.

• Financial Appraisal.

Process Sequence1. Parallel processing2. Virtual linkages3. Simultaneous entry and review

Tracking1. Transaction volume2. Document management3. Priority processing4. Transaction type

Geographic1. Multiple sites on campus2. Coordination with other

departments

Automation1. More web information2. Improve IVR service3. Increase self-service4. Reduce access to files

Innovation Strategies

Analysis1. Management Information2. Scheduling, staffing, process

design

Knowledge1. Knowledge Management2. Standard operating

procedures3. Regulation and statutory

changes

Information1. Process cycle times2. FAQs?3. Peak processing4. Customer profiles

Integration1. Coordination of activities2. Policy and process

alignment3. Scheduling and planning

Innovation Strategies

FOCUSING REDESIGN ENERGY

Think time line: near term, long-term

Think cost: no/low cost, new resources or reallocated resources

Think capabilities: knowledge, expertise,

experience, staff-power

Think priorities: must change, should change,

could change

Think technology: have it, get it, use it

MOVEMENT IN PROCESS INNOVATION

Process Innovation

Saturation

Old Process

New Process

EXAMPLES OF PROCESS INNOVATION

Precision Ring Makers (PRM) • Make components to high specifications, largely for the aircraft

industry

• Its main development work was focused upon process improvements

• It has developed low cost tooling techniques which resulted in great savings

…… for example, tooling changes for thin guage shims using conventional techniques cost about £4000, while with PRM’s technique the cost was about £30

• It had purchased CNC machines for milling and engraving, and was planning to network the CNC machines to its computer system so that programs could be transmitted directly to production

EXAMPLES OF PROCESS INNOVATION

Fabrication and Assembly Company (FAC) • Was primarily interested in welding technology• A recent example of process improvement was the

application of plasma cutting instead of drilling, in the manufacture of heat exchangers and plates

• A flushing system to prevent the build-up of sludge in the air chambers of the water tables which were being manufactured, was also developed to assist the introduction of plasma cutting

TECHNIQUES OF PROCESS INNOVATION

Business Process

Reengine

ering

TQMLean

Production

SystemKaizen 5S

ConceptSix

Sigma

BPR • Business process re-engineering(BPR) is also known as

business process redesign, business process change management.

• It is a technique by which organizations fundamentally rethink how they do their work in order to dramatically improve customer service, cut operational costs, and become world-class competitors.

• It is more than just business improvising.

• A key stimulus for re-engineering has been the continuing development and deployment of sophisticated information systems and networks.

CONTINUED…• Reengineering assumes the current process is largely

irrelevant - it shall not work on future, it's broke, forget it. Start afresh. Such a clean slate perspective enables the designers of business processes to disassociate themselves from today's process, and focus on a new process.

• Reengineering starts with a high-level assessment of the organization's mission, strategic goals, and customer needs

• Re-engineering identifies, analyses, and re-designs an organization's core business processes with the aim of achieving dramatic improvements in critical performance measures, such as cost, quality, service, and speed

BUSINESS PROCESS REENGINEERING CYCLE

TEST & IMPLEMENT

TO-BE

DESIGN TO-BE

REVIEW, UPDATE, ANLYSE

AS-IS

IDENTIFY PROCESSES

TQM• TQM refers to an integrated approach by management to focus

all functions and levels of an organization on quality and continuous improvement

• Focuses on encouraging a continuous flow of incremental improvements from the bottom of the organization's hierarchy

ADVANTAGES OF TQM• Encourages a strategic approach to management at the operational

level• Provides high return on investment through improving efficiency • Works equally well for service and manufacturing sectors • Allows organizations to take advantage of developments that

enable managing operations as cross-functional processes • Fits an orientation toward inter-organizational collaboration and

strategic alliances through establishing a culture of collaboration among different departments within organization

LEAN PRODUCTION SYSTEMIt is the western term for Toyota Production System.

This production philosophy is now widely used in auto industry around the world. This system has been modified everywhere in the auto industry, adapted to some extent on the local industrial situation or practices, however its core principles remains the same. This system is not only used in auto industry but also in other non-auto industries involved in assembling process.

BENEFITS OF LEAN PRODUCTION SYSTEM

WAST

E REDUCTION

PRODUCTION COST

REDUCTION

MANUFACTURIN

G CYCLE REDUCTIO

N

LABOR REDUCTIO

N

INVENTORY REDUCTIO

N

PRODUCTION CAPACITY IN

CREASE0

1020304050607080

PERCENTAGE

KAIZEN• Japanese strategy for continuous improvement• Not a single day should go without any improvement• Customer driven strategy for improvement• Quality first, not profit first• Consists of two major components

Maintenance Improvement

Innovation

Kaizen

Maintenance

Top Management

Middle Management

Supervisors

Workers

Kaizen Cycle – PDCA Cycle

BENEFITS OF KAIZEN

In areas such as inventory, waiting times, transportation, worker motion, employee skills, over production, excess quality and in processes

Reduces Waste

Space utilization, product quality, use of capital, communications, production capacity and employee retention

Improves

Instead of focusing on large, capital intensive improvements, Kaizen focuses on creative investments that continually solve large numbers of small problems

Immediate Results

5S CONCEPT

• Seiri.• Seiton.• Seiso.• Seiketsu.• Shitsuke .

REFERS TO

THESE FIVE

WORDS

SIX SIGMA

Six Sigma focuses on making improvements in all operations within a process, producing results more rapidly and effectively.

BENEFITS OF THE SIX SIGMA STRATEGY

Remarkable improvements in

• Processes

• Products and services

• Investor relations

• Design methodology

• Supplier relationships

• Training and recruitment

WHAT IS A VALUE CHAIN

A value chain is the full range of activities — including design, production, marketing and distribution — businesses go through to bring a product or service from conception to delivery. For companies that produce goods, the value chain starts with the raw materials used to make their products, and consists of everything that is added to it before it is sold to consumers.

VALUE CHAIN MANAGEMENT & IT’S GOAL

The process of actually organizing all of these activities so they can be properly analyzed is called value chain management.

The goal of value chain management is to ensure that those in charge of each stage of the value chain are communicating with one another, to help make sure the product is getting in the hands of customers as seamlessly and as quickly as possible.

TYPES OF BUSINESS ACTIVITIES

Primary Activities

Support Activities

PRIMARY & SUPPORT ACTIVITIES

PRIMARY ACTIVITIES

• Inbound logistics: concerned with receiving, storing and distributing the raw materials used in the production process.

• Operations: This is the stage where raw products are turned into the final product.

• Outbound logistics: This is the distribution of the final product to consumers.

CONTINUED…

• Marketing and sales: identification of customer’s needs and generation of sales through advertising, promotion, distribution.

• Service: involves how to maintain the product's performance after it has been produced. This stage includes things like installation, training, maintenance, repair, warranty and after-sales services.

SUPPORT ACTIVITIES• Procurement: This is how the raw materials for the

product are obtained.

• Technology development: activities intended to improve product and the process.

• Human resource management: Involved in hiring & retaining the proper employees to help design, build & market the product.

• Firm infrastructure: includes activities such as organization's structure, its management, planning, accounting, finance & quality-control mechanisms.