Skip to main content

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 just pass the information from one department to another but use it as an when create or received.

3rd Principle
  • Treat geographically dispersed resources as though they were centralized: This is more relevant to processes which has nation wide presence like opening of bank account, order payment process of a retail chain, ticketing process and many more. If in any of these cases process is not centralized and resources are not treated like single entity it would fail.

4th Principle

  • Link Parallel activities instead of integrating their results


5th Principle

  • Put the decision point where the work is performed, and build control into the process Perfect example to relate call centers or customer care centers, these guys have no  or very minimal decision making powers, hence customer problems are not resolved also you need extra decision makers and again have to contact customer to resolve their issue. Over all we loss both customer satisfaction and resource.

6th Principle

  • Capture information once and at the source

7th Principle
Labels:

Comments

Post a Comment

Popular posts from this blog

Open Source Architecture for Building BPM Solution - Part 1

[This article talks about how a custom BPM solution can be build using available open source BPM tools like Activiti or jBPM] Business Case: A MFI is looking to automate its processes. It has basic functions called loan origination and loan servicing Loan origination includes following steps a) Borrower risk analysis b) Borrower on-boarding where as loan servicing includes a) Disbursements b) Collection c) Closer d) Loan extension etc. Other than these two functions MFI also have operations team which takes care ground level activities like physical transportation of cash and documents, deployment of agents, identification of loan potential areas. So how can we build solution which is scalable and minimal cost for this MFI? Below is one of many solutions Step 1: High Level Architecture Design Step 2: Process Discovery and Implementing the Executable processes Lets restrict ourselves to only loan servicing – disbursements of funds. And see how we can fit that in ...
Post a Comment
Read more

How Kirana stores can handle Organize Retail in India

Organize retail formats include departmental stores, hypermarkets, supermarkets and specialty stores. Any store having more than 500 sq. feet is counted in organized retail. There are more than 14 million retail shops in India, organized retail accounts for only 4-5% [i] , but it is growing at 40% per annum. Organized retail in India will grow faster as regulations loosen up. Government will sooner or later give in to demand of better FDI regulations, in favor of big corporate houses. Time is not far away when Kirana stores will walk the path of obsolescence. So how can these small stores save themselves? SWOT Analysis Kirana Stores Organized Retail Stores Strength Well connected to community, Customized service, Near to customer Bargaining Power, Allows customer to choose, Volume Sales, Financial strength, Bigger display area, Trendy Weakness Outdated, relatively costlier, Less display area, Higher cost per SKU ...
Post a Comment
Read more

Predictive Model (Using Trend Analysis, Univariate Analysis and Binomial Logistic Regression)

Predictive models have been in use since advent of various statistical tools. Both marketing and financial institution uses it extensively. This article tries to look under the hood how a predictive model is created. I will try explaining it using simplest available statistical tool like Trend analysis , Univariate Analysis and slightly complex tool called Binomial Logistic Regression . Lets assume company want to know how much attrition will happen in current quarter, so that it can start hiring process. First step of model is find out what are the factors that can lead to attrition of an employee. To find these factors we simple take past data and holistic list of factors. Age, Income, Martial Status, Education Background, Work Rating, Number of leaves, Number of days came later than usual timing, Number of year in company, Business Unit, Business vertical, Past Work experience Indicative list of factors for Company Attrition Model On each list...
Post a Comment
Read more