BPMS 05 Core Process Mapping

CustomerFocusedSixSigmaDefiningCore&EnablingProcessesBusinessProcessManagement5-2CrossFunctionalMappingServiceQualityCostDeliveryDistributorInternalOEMUserCustomerExpectationsWhatarethemajorcustomerexpectations?CriticalIssuesSpanUnits&ScaleProcessOutputMeasureCTCIssuesWhataretheOperationalDefinitionsofCTCIssues?CustomerSpanWhatdoCustomersSee?ScorecardstoManageResultsIndicatorsofProcessPerformanceCoreandEnablingProcessesCritical-to-CustomerOutputsCustomerFocusedObjectivesCSIPO•WhatarethecoreprocessesthatcreatetheCTCprocessoutputs?•Canyoudescribetheseprocesseswithacross-functionalmap?5-3WhatisaProcess?AnorganizedgroupofrelatedactivitiesthattogethercreatearesultofvaluetocustomersDr.MichaelHammer5-4DEMINGOnProcesses•“Eighty-FivePercentoftheReasonsForFailuretoMeetCustomerExpectationsAreRelatedtoDeficienciesinSystemsandProcess…RatherThantheEmployee.•TheRoleofManagementistoChangetheProcessRatherThanBadgeringIndividualstoDoBetter.”5-5TheImportanceofProcessProcessistheheartofanenterprise:howvalueiscreatedanddeliveredcustomersProcessthinkingisdifferentthandepartmentalthinking:cross-functionalandoutcomeorientationistheperspectiveTheidentificationofone’sprocessisafundamentalstatementofidentity:wearewhatwedo,andwedowhatwejudgetobeimportant5-6BusinessProcessesProduction,UnionContractNegotiationOrderEntry,Quoting,Pricing,ProposalPurchasing,Receiving,Month-endClosingEngineeringChangeNotice,Returns,ShippingPayroll,AccountsPayable&ReceivableProductDevelopment,Hiring,RelocationCapitalSpendingRequests,Termination5-7MostProcessesareCross-FunctionalTheprocessoforderfulfillmentmayinvolvethefunctionaldepartmentsof:•CustomerService•PlantScheduling•MaterialControl•MultipleProductionDepartments•Packaging•Warehouse•Shipping•Billing•AccountsReceivable5-8AndMostFunctionalDepartmentsareInvolvedinMultipleProcessesThefunctionaldepartmentofMarketingisinvolvedinprocessesof:•OrderAcquisition•PriceDetermination•CompetitiveAnalysis•ProductDevelopment•MarketResearch•Etc.5-9FunctionallyFocusedOrganization•Leadersarefocusedonfunctionalsuccess•Goals&strategyisdevelopedbyindividualfunctions•ImprovementsareprioritizedandaddressedwithinfunctionsStrategy&ActionSalesFinanceMarketingHumanResourcesPurchasingManufacturingProductDevelopmentFunctionsCustomers?IndependentFunctions5-10Customer-FocusedOrganization•Productsandservicesforcustomersarenotproducedbyfunctionaldepartments,butbyprocesseswhichtendtocrossdepartmentallines•ThiswillbethefocusofourworkinBPMS..ToaligndepartmentalprocessestofocusoncustomersStrategy&ActionSalesFinanceMarketingHumanResourcesPurchasingManufacturingProductDevelopmentCrossFunctionalProcessCustomersInterdependentFunctions5-11CoreProcessesHaveamajoraffectoncustomersatisfaction,bydetermininghowwellthecompanymeetscustomerneedsAreyouressentialidentitywithcustomersArethecorecompetenciesofthecompanyandyourfunctionaldepartmentinthecustomers’view5-12CommonCoreBusinessProcessesVirtuallyallcompaniesarebuiltaroundfourCoreBusinessProcesseswhichdrivetheultimatesuccessofthecompany.Theseprocessesdeliversignificantvaluetothecustomerandassuresurvivalandgrowth:CoreBusinessProcessesCustomerServiceProcessOrderGenerationProcessNewProductDevelopmentOrderFulfillmentProcessEnablingProcessesCompetencyDevelopment,MarketResearch,ISDevelopment/Management,etc.5-13BusinessProcessRelationshipsEnablingProcessesProvidesupportofValue-CreatingandAsset-CreatingProcessAsset-CreatingProcessesProvidetheinternalassetsusedbyValue-CreatingProcessesCoreProcessesProvideresultsofdirectvaluetocustomersSuppliersCustomersGoverningProcessesProvideDirectiontoValue-CreatingandAsset-CreatingProcessesThesearealsokeyprocessestoimproveThesearealsokeyprocessestoimproveThesearealsokeyprocessestoimprove5-14Example–PurchasingProcessesEnablingProcessSUPPLIEREVALUATIONAsset-CreatingProcessSUPPLIERDEVELOPMENTGoverningProcessCONTRACTSCoreProcessMATERIALSCAPACITYSuppliersCustomers5-15Example–SalesProcessesEnablingProcessBIDS&PROPOSALSAsset-CreatingProcessCUSTOMERDATABASESGoverningProcessBUSINESSPLANNINGCoreProcessCUSTOMERORDERGENERATIONSuppliersCustomers5-16DefiningaProcesses•Definingabusinessprocessmaynotbeobvious–Mostbusinessprocessescrosstraditionalorganizationallines–Theyoverlapwithotherprocesses–Sometimestheyarefragmentedorpartiallymissing•Theremaynotbeawelldefinedsingularprocess….youmayneedto“find”it5-17HowtoDefineaBusinessProcess•Selectacriticalcustomermetric,e.g.,On-TimeDelivery.•Identifythekeyinteractionbetweenthecustomerandyourself,e.g.,customerordersproductisyourprocessinputandcustomerreceivesproductisyourprocessoutput.•Traceyourprocessoutputbackward(orforward)throughallprocessstepsthatcreatetheoutput.Makealistofallprocessstepsandwheretheyoccur.Thischainofprocessstepsisthecustomer-linkedprocess.•Identifythedepartmentsandindividualsaffectedbytheprocessoutputs,internal,external(includingcustomersandsuppliers).ThesearetheStakeholdersoftheprocess.5-18TeamWorkout•SelectacriticalcustomerissueCTC•IdentifytheoutputofyourprocessthatdeterminescustomersatisfactionfortheCTC•Identify