Skip to main content

Posts

Showing posts from 2012

Process Reengineering and Optimization Tools – Part 2

Seven Principles of Re engineering ("Michael Hammer") Organize around outcomes, not task : This principle says people should be organized around outcome rather than task. Michael Hammer gives example of case manager who handles end-to-end process and is accountable for it. We can associate this to a production line. Production line is like a single process, where as works working around it are completing a single task each. Problem with task approach is, if one single worker doesn't work as expected or makes mistake, not only process output is defected but also makes the task of other resources redundant. Organized around tasks 1st Principle Have those who use the output of process perform the process :This is essential as at each step of passing on information we are losing both information, time and resource. 2nd Principle Subsume information-processing work into the real work that produces the information: Essentially it says don't jus...

Process Reengineering and Optimization Tools – Part 1

Processes are ever evolving. They keep changing to suit business and their goals. As an analyst weneed to keep finding ways to improve it, make it more relevant and optimal. Business process management only talks about lifecycle of a process, it doesn’t gives us tools to optimize. There are very few tools that help an analyst to think in a structural fashion. One such tool is “Lean”. Lean essentially talks about reducing waste and in turn make a process more efficient and optimal. Lean is specifically very relevant for process optimization as it talks about flow of process. Although it was first applied in manufacturing, but we as an analyst can take a lot of clues from it, to optimize process in any sector. Toyota, which was pioneer in Lean manufacturing, talks about three kinds of wastes. Muri – Related to design of process, it talks about what we can proactively avoid while designing the process. Mura – Related to implementation of process and elimination of fluctuatio...