PROCESS REENGINEERING

Process Analysis Process Design Process Flow Diagram Innovation Value Stream Mapping

 Reengineering is a fundamental rethinking

and redesign of the processes to achieve dramatic improvements in critical performance metrics such as cost, quality, delivery

Process Simplification
Incremental Change
Process Led Assume attitude and

Process Reengineering
Radical transformation
Vision Led Change Attitude and

behaviour Simultaneous Projects Line Management led

behaviour Limited initiatives Corporate led

Continuous Improvement
Incremental change
Employee focus

Process reengineering
Radical change
Employee and technology

Low investment
Improve existing

focus High investment Rebuild

Process

A specific order of work activities sequentially

performed from start to end with clearly identified inputs and outputs

Business Process

A group of logically related processes that use

the firm's resources to provide customeroriented results in support of the organization's objectives

Reengineering
Why
Customer Changing needs , demanding Technology Change Competition - Global , Local

Why not
Complacency Fear of change

Process Based
Added Value
Initiatives must add-value over and above the

existing process value

Customer-Led
Initiatives must meet the needs of the customer

Radical Change
Stepped Approach
Process improvements will not happen over night

they need to be gradually introduced Assists the acceptance by staff of the change
Sustainable

Framework for Process Reengineering

Opportunity Assessment

Benchmarking with peers Review of internal process Customer complaints/pain points What the boss feels

Gap Analysis

Process Analysis Process Design Assess Risks and Rewards Implementation Handover to process owners

Process Reengineering Project

Elements

Phases Team formation Concept Phase

Change Manage ment

Unfreezing

Objective(s)

Development Phase

Change

WBS and Milestones

Implementati on Phase Termination (Handover) Phase

Refreezing

Process Analysis
Identify Define Scope Document Process Evaluate performance Redesign process Implement changes

Identification
Core processes
Supplier Product development/manufacture Customer

Internal processes
Quality Delivery Cost

Suggestions from employees

Scope
Broad or Narrow Team approach Involve team members Specialists/facilitators

Documentation
List inputs - suppliers, outputs, customers Breakdown into sub processes Flow charts Service Blueprints
Flow charts showing customer contact points Front office and Back office activities

Process charts

Performance Metrics
Cycle time Process cost Defects/rework Customer response time

Process Analysis
Process flow diagram
Analysis paralysis trap Level of detail

Enriching the process flow diagram

ANSI Standards Experts to prepare

Structural Analysis
Overlapping, missing, redundant, non essential

Dynamic Analysis
Happening in the process

Data collection & Validation

Determine the parameters to monitor How, where and when Validate accuracy Who will collect Organise to Analyse

Process Analysis
Real Value Added essential in order to meet customer

expectations Business Value Added essential to conducting business like compliance No Value Added storage, movement, approvals, etc
Example - Material Ordering

Actual performance Potential performance Risk impact Process Streamlining

Value Stream Mapping

To provide optimum value to the customer

through a complete value creation process In Design Concept to customer Build Order to delivery Sustain In use through life cycle for services
Provides Vision and plans to connect all the

process improvement activities

 Benefits
Understanding the process Material and information flow Data driven decisions

 Select the product/family Draw the current state map Eliminate non value adds Draw a future state map using lean flow

design Implement

Current State
Walk the gemba Record process steps and time taken and

observations Keep the customer in mind Calculate Manufacturing critical path time (MCT)

 Takt time Cycle time needed to match

production rate to demand rate.

Net time available per shift
No of shifts Net time available per day

Takt time = Net time available/demand

Future state
1. What does the customer really need? 2. How often we check our performance to 3. 4. 5. 6.

7.

customer needs? Which steps create value and which are waste? How can work flow with fewer interruptions? How to control work between interruptions? How will work be prioritized? Is there an opportunity to balance the work load and/or different activities? What process improvements can be thought

Future state
Eliminate non value adds Eliminate/reduce lead time Problems/bottlenecks ,push/pull Work flow improvement Process improvement

Implementation
Clarify Business Drivers and Key Customer

Metrics Assess and Map Current Capabilities (Baseline) Identify Opportunities for Improvement including the elimination of WASTE Create a Vision for the Future Based on Voice of the Customer and Voice of the Business Analyze Gaps and Create Action Plan to Succeed Use Robust Set of Tools (i.e. Lean Six Sigma) Determine Priorities and Resources Necessary Structured Process Improvement Track Impact through Metrics

Thank You

Assignment on Donner 1
Draw the process flow diagram for
Preparation and image transfer Dry Film photoresist Fabrication indicating the set up time and run

time on the chart

Discussion on Donner
Identify the process performance metrics Can we decide & how
Which orders should go to CNC drill Which orders should go to CNC router One group to present and other group to

agree/disagree to reach conclusion

Questions for VSM

Can we identify VA,NVA Why takt time is not important Can we draw a future state