PowerPoint Presentation
PROCESS INNOVATIONBy:-Kriti Mathur- 76Abhishek Kumar- 85Nishant
Tyagi- 86Manisha Shrestha- 95What Is Process?A Process is
combination of facilities, skills and technologies that are used to
produce products or provide services.
A process usually consists of :-a set of tasks-a flow of
material and information that connect these tasks and-storage of
material and information.These tasks transform inputs into output.
Thus process results into change. Process changes i.e. converts
inputs into outputs. Inputs are - land, labour, capital etc. Output
is- goods and / or services.
2What 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.A process innovation is the implementation of a new or
significantly improved production or delivery method. This includes
significant changes in techniques, equipment and/or
software.Examples of process innovations include Fords first use of
the production line by bringing product to the person during
fabrication
3 For improving 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.
Need For Process Innovation?Process innovations builds an
adaptive business process management system (BPMS).
For manufacturing companies.
For service companies.FocusBPM uses a systematic approach in an
attempt to continuously improve
businesseffectivenessandefficiencywhile striving forinnovation,
flexibility, and integration with technology. It can therefore be
described as a "process optimizationprocess."These processes can
impact the cost and revenue generation of an organization. As a
managerial approach, BPM sees processes as strategic assets of an
organization that must be understood, managed, and improved to
deliver value-added products and services to clients.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.
5Steps in Process InnovationSuccessful process innovation
requires the following:
Proper Planning.Creating a multifunctional team of Technical,
Production and Maintenance Department.
Proper Planning as to focus area of innovations; deciding about
use of technological tools for mechanisation, computerisation &
automation; setting targets, goals; deciding timeframe of
commercialization etc.Creating a multifunctional team of Technical,
Production and Maintenance Department6ContinuedSelecting a small
group of operators and workers, seeking their participation in
process innovation through communication, counselling, training and
rewards etc.Pilot run of the new process.Observations and
improvements.Large scale training of entire work force.Commercial
use of new Process.
Observations and improvements in the new process based on
feedback from pilot testing.
7Attributes of Innovative ProcessesElimination or decrease in
manual processes.Coordination of processes across distances.Change
of process sequence; allow parallel processes.Capturing process
information to understand process better.Improved analysis of
information and decision making.Capture and distribute
organizational information.Monitoring process status.Coordination
of tasks and processes (cross functional).Tools For Process
InnovationDeveloping 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 and tasks.Value Engineering and Analysis.Business
Process Reengineering.Benchmarking.Using Change Management
Strategies.Financial Appraisal.Innovation Strategies
Automation1. More web information.2. Improve IVR service.3.
Increase self-service.4. Reduce access to files.Process Sequence1.
Parallel processing.2. Virtual linkages.3. Simultaneous entry and
review.Geographic1. Multiple sites on campus.2. Coordination with
other departments.Tracking1. Transaction volume.2.Document
management.3. Priority processing.4. Transaction type.Continued
Integration1. Coordination of activities.2. Policy and process
alignment.3. Scheduling and planning.Information1. Process cycle
times.2. Peak processing.3. Customer profiles.Analysis1. Management
Information.2. Scheduling, staffing, process design.
Knowledge1. Knowledge Management.2. Standard operating
procedures.3. Regulation and statutory changes.Techniques Of
Process Innovation1. BPR Business process re-engineering is also
known as business process redesign, business process change
management.Business process re-engineering (BPR) 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.
ContinuedReengineering 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 needsRe-engineering identifies, analyzes, 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 speedContinued
2. TQMTotal: Make up of the whole. . Quality: Degree of
excellence a product or service provides. Management: Act, art, or
manner of handling, controlling, directing, etc.Therefore, TQM is
the art of managing the whole to achieve excellence. TQM is defined
as both a philosophy and a set of guiding principles that represent
the foundation of a continuously improving organization. It is the
application of quantitative methods and human resources to improve
all the processes within an organization and exceed customer needs
now and in the future. TQM integrates fundamental management
techniques, existing improvement efforts, and technical tools under
a disciplined approach.Advantages of TQMEncourages a strategic
approach to management at the operational levelProvides 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
Diff between BPR vs TQM Approaches Davenport points out that the
Major difference between BPR and other approaches to organization
development (OD), especially the continuous improvement (Kaizen) or
TQM movement, is: Today firms seek not fractional, but
multiplicative levels of improvement (10times) rather than
10%.ContinuedJohansson provides a description of BPR relative to
other process-oriented views, such as TQM and JIT as
under:"Business Process Reengineering, although a close relative,
seeks radical rather than merely continuous improvement. It
escalates the efforts of JIT and TQM to make process orientation a
strategic tool and a core competence of the organization. BPR
concentrates on core business processes, and uses the specific
techniques within the JIT and TQM toolboxes as enablers, while
broadening the process vision."
3. Lean Production SystemItis the western term for Toyota
Production System. This production philosophy isnow widely used in
auto industry around the world. This system has been modified
everywhere in the auto industry,adapted to some extenton the local
industrial situation or practices, however its core principles
remain the same. This system is not only used in auto industry but
also in other non-autoindustries involved in assembling
process.
Benefits of Lean Production SystemWaste Reduction.Production
Cost Reduction.Manufacturing Cycle Reduction.Labor
Reduction.Inventory Reduction.Production Capacity Increase.4.
KaizenJapanese strategy for continuous improvementNot a single day
should go without any improvementCustomer driven strategy for
improvementQuality first, not profit firstConsists of two major
componentsMaintenanceImprovement
22Benefits of KaizenReduces Waste.Improves.Immediate
Results.Reduces Waste: in areas such as inventory, waiting times,
transportation, worker motion, employee skills, over production,
excess quality and in processesImproves: space utilization, product
quality, use of capital, communications, production capacity and
employee retentionImmediate Results: Instead of focusing on large,
capital intensive improvements, Kaizen focuses on creative
investments that continually solve large numbers of small
problems235. 5S ConceptRefers to the five
words:Seiri.Seiton.Seiso.Seiketsu.Shitsuke .
Refers to the five words:Seiri eliminating everything not
required for the work being performed
Seiton efficient placement and arrangement of equipment and
material
Seison tidiness and cleanliness
Seiketsu ongoing, standardized, continually improving seiri,
seiton, seison
Shitsuke discipline with leadership
246. Six Sigma Six Sigma focuses on making improvements in all
operations within a process, producing results more rapidly and
effectively.
Six Sigma focuses on making improvements in all operations
within a process, producing results more rapidly and
effectively.Six Sigma provides specific methods to re-create the
process itself so that defects are never produced in the first
place
25EXAMPLES OF PROCESS INNOVATION 1. The Float Glass process
developed by Alistair Pilkington, in which plate glass is
manufactured by drawing glass out across a bed of molten tin
(Quinn, 1991). Prior to the introduction of this process
innovation, plate glass used for shop windows and office windows
was expensive and of poor quality largely because the only way of
getting a flat surface was to grind it and polish it. The Float
Glass process at a stroke eliminated the need for time consuming
grinding and polishing it, leading to a dramatic fall in costs. The
result can be seen in the public buildings constructed in the last
thirty years, where everything from office blocks and hotels to
airports and shopping malls now employ large expanses of
glassContinued2 .Precision Ring Makers (PRM) made components to
high specifications,largely for the aircraft industry. Its main
development work was focused upon process improvements. It had
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 PRMs 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 programmes could be transmitted directly to
production.Continued3. The humble photocopier, developed by Chester
Carlson, may not sound like a spectacular innovation, and yet it
had a big impact on the way in which administrative systems in
offices are organised.
4.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.
Thank You
