In this presentation you will:
Business Process Optimisation
n see the ways in which businesses can optimise their operations
Next >
Introduction
As a business grows, structures and
processes within it
become more complex.
This can make a company more competitive and likely to succeed. Optimising these allows the business to function effectively.
Management and Improvement
Improved processes are often driven through good management.
Suggested improvements are fed back into the process and the effects observed.
Managers need to monitor the performance of every stage of a process and use the information to identify areas to improve.
Next >
Through continual small improvements, processes can become more efficient.
Types of Business Processes
The core processes of a business are the ones that create value for the company.
Some are customer orientated, others are remote from the customer.
Innovation Process Product Planning Process Product Development Process Sales Process Order Processing Process Service Process The needs of the customer help formulate ideas for innovations in new and existing products Idea evaluation, idea selection and possibly even focus on buyers’ requirements The product specification is developed until it is ready for production The product is marketed to the public The customer’s order is processed, produced and delivered Solutions to any customer problems are applied
Customer remote core processes
Customer oriented core processes
Support Processes
Some processes do not directly create value for the company. However, they are vital for its success.
They work across the whole value chain from sourcing to product delivery and service.
The support processes should be designed to optimise the core processes.
Next >
Support Processes
Core Processes
Human Resource Management Information
Resource Management
Inbound
Logistics Operations
Outbound
Logistics Marketing and Sales Service Financial Management
Representing Processes
The organisation can be examined from a number of viewpoints: n Organisation
Process analysis aims to identify the important parts and roles within a business. n Functions n Data n Control Organisation The departments and organisational units involved in processes Functions
The activities that take place in a process Data Information used to inform or communicate Control The relationships between the data,
functions and organisational
A) To support the management B) Value creation
C) To coordinate the support processes D) To create the products
Question 1
Next >
A) To support the management B) Value creation
C) To coordinate the support processes D) To create the products
Question 1
Event-driven Process Chain (EPC) Diagrams
EPC diagrams show the stages in a process.
n An event
They include the
different types of activity within the process:
Next > Customer request XOR Finance Send invoice n A function n Organisational unit n An information object n An operator
They also show other factors in the process:
Processes are triggered by events
Functions are the actions carried out
Operators allow branching and linking
of process flows
This might be a department or person
Information used with the process
Invoice request email Electronic data Invoice Printed information Customer request XOR
Send invoice Invoice
EPC Diagrams
Connectors link the parts of the diagram.
Plain arrowed lines link information items to the function they are associated with. Dotted arrowed lines link events, functions and operators.
Plain lines link
organisational units to the function they are associated with.
Customer request
XOR
Send invoice Invoice
Operators are used to allow branching of the process flow, according to a condition.
The AND operator
indicates that both paths should be followed.
The XOR operator allows one path or another to be taken, but not both.
Next >
EPC Diagrams
XOR
⋀
⋁
The OR operator indicates that either or both paths could be followed. XOR XOR
⋀
⋀
AND⋁
⋁
OREPC Diagrams
Whenever an operator splits the process flow, there will be a corresponding join using the same operator.
An XOR operator is used because the process paths are mutually exclusive. Here, a stock check leads to one of two courses of action. Check stock Item in stock Order new stock XOR Procurement New stock arrived
Fill out order
Request to buy new stock Despatch Is item in stock? Item not in stock XOR Warehouse
Note that events and functions tend to alternate on
Process Maps
The EPC diagrams from all the processes can be combined into a process map.
Here, a simplified customer service process is outlined. Next >
Core Processes
Support Processes
Management Processes
(Planning, quality management, environmental protection, control)
Innovation DevelopmentProduct Sales ProcessingOrder Customer Service
Human Resources
Resource
Management Information Finance Call received Request recorded Customer Service Enquiry Problem Identification Engineer despatched Problem isolated Parts obtained Problem resolved Problem Resolution Customer informed
A) After event 1, activity A or B or both will occur B) After event 1, either activity A or B will occur
C) Both activity A and B must happen to cause event 1 D) After event 1, activity A and B will both happen
Question 2
What would be the outcome of the operator in this EPC diagram?
⋀
Event 1Question 2
The operator is an AND operator. Both activities will follow on from event 1.
Next >
What would be the outcome of the operator in this EPC diagram?
⋀
Event 1Activity A Activity B
A) After event 1, activity A or B or both will occur B) After event 1, either activity A or B will occur
C) Both activity A and B must happen to cause event 1 D) After event 1, activity A and B will both happen
Optimising Processes
Once the processes of a business are understood, they can be improved in a number of ways:
n Break down complex
processes into simpler ones n Minimise bottlenecks and
unnecessary sub-tasks
n Tasks may be outsourced n Introduce metrics to monitor
and inform performance n Reduce lead times
Benchmarking
To understand how much a company can achieve, it can compare itself to others by benchmarking.
Internal benchmarking
compares the performance of a department or division within a business with
others from the same company or group.
Next >
Production
Sales Service
Benchmarking
External benchmarking compares the company with the industry leader from elsewhere: n Direct competitors n Industry related companies n Companies from other industries
Getting information from direct competitors can be
difficult. Also, any information gained is going to go out of date as other companies also strive to improve.
Phases of Benchmarking
Benchmarking can be broken down into
several phases:
n Phase 1 – goal setting
Next >
n Phase 2 – internal analysis
n Phase 3 – comparison
n Phase 4 – measures
n Phase 5 – implementation
• Gather information on strengths and weaknesses • Choose objectives or targets for improvement • Allocate roles and teams
• Analyse the focus of the benchmarking • Choose indicators of performance • Choose comparison criteria
• Collect information from stakeholders, press,
questionnaires etc.
• Choose benchmarking partners • Exchange information with partners • Evaluate the data obtained
• Choose actions to be taken
• Evaluate what will be needed to make them work
• Implement the actions decided upon • Monitor outcomes of the changes
Summary
n how businesses can optimise their operations In this presentation you have seen:
n how EPC diagrams can be used to represent work flows
