Optimization of individual business processes or a system of processes (accounting, employee motivation, management, document flow, etc.) is their change to increase efficiency. The results of this procedure are:
- acceleration of the work process;
- cost reduction;
- productivity growth;
- high transparency of processes;
- reducing routine, solving some management problems.
However, before you order optimization from third-party specialists or start doing it yourself, you need to evaluate whether this action is acceptable in your situation.
What is included in optimization
Optimization of business processes, including management, includes:
- formation of the main, most important goal;
- maintaining statistics: measuring results and recording them;
- analysis of a specific object;
- object change;
- receiving and tracking results.
Optimization begins with formulating a goal, setting a result and defining indicators for measuring it.
What processes can be optimized?
Many processes can be optimized (management is also one of them). Let us list those whose improvement will bring you the maximum benefit.
| Process type | Need for optimization |
| Regularly recurring | Frequent repetition of ineffective processes causes pointless loss of profit. |
| Costly (in terms of time or finances) | The more resources you have to invest in a process of poor performance, the greater the losses you incur. |
| Long-term or those for which deadlines are important | Optimizing such business processes will reduce completion times. |
| Management processes | This type of process affects the entire company. Optimizing the management process chain will bring multiple benefits in many other areas. |
What business process cannot be optimized?
- Problematic, in which the results are unstable due to frequent conflicts or failures;
- Unbuilt, the course of which is difficult to predict, because each time it happens differently.
Optimizing such business processes without first working on them will be a waste of time.
Each process described above must first be made stable - regulated. Improvement is usually carried out only after the results of processes become predictable. However, there is an option for simultaneous optimization and regulation - reengineering, fundamental restructuring.
Methods for optimizing business processes
Each business process requires a specific optimization approach, depending on the method in which it will be most profitable to solve the identified problems. In the diagram below you can see possible optimization methods.
You can optimize the business process in the following ways:
- Exception. The number of process levels is reduced, the causes of interference are eliminated;
- Simplification. The complexity of completing an order is reduced, organization, division of work and management are simplified;
- Standardization. As a result of optimization, all applied technologies, methods, programs, business stages (including management) are brought to a common standard;
- Reduction. The number of chains of actions and their duration are reduced, production costs are reduced;
- Acceleration. Faster sample development is carried out, parallel engineering, simulation and automation methods are used;
- Change. Optimization involves reviewing the materials required for work, the technologies used, the location of production or workplaces, the number of orders, management and other parameters;
- Ensuring interaction. Connections between organizational units and work systems are established, management becomes more efficient;
- Selection and inclusion. New business processes or components are put into operation.
Company management also needs to be optimized to ensure maximum performance from all employees. Any optimization, regardless of its type, will be an important step towards business development.
This article talks about 7 simple techniques that can be used to optimize both business processes as a whole and sub-processes and operations.
These techniques are not “know-how”, but have been actively used all over the world for a long time. The purpose of this article is to compile a simple and short “cheat sheet” describing the main optimization techniques.
Technique No. 1 - Taking the IFR (ideal end result) outside the scope of the process.
When optimizing any business processes, a clear description of the IFR is necessary. As the experienced reader guessed, this is the first step in the algorithm for solving inventive problems created by TRIZ developers. What would seem simpler than the formation of IFR when designing a business process? But a person’s consciousness plays a cruel joke on him, concluding the search for IFR exclusively within the framework of the process itself.
Example 1
The company, located in Moscow, produces products that are used by customers throughout the CIS. The company has a logistics center that delivers goods to the client using its own trucks. Recently, the costs of maintaining a logistics center have begun to increase. Those. Delivering products to customers using the old method becomes problematic. The wrong way to determine the IFR will look like this: “Reduce delivery costs by our logistics center by 10%.” In this case, a number of good solutions can be found:
a) replace trucks with more advanced ones that require less repair and maintenance costs
b) use cheaper fuel
c) negotiate with customers in order to convince them to pay more for delivery, etc.
But at the same time, the author of process optimization closes for himself all other resources of this situation. What opportunities are being missed? To answer this question, let’s formulate the IFR differently, namely based on the understanding that the meaning of a business process should go beyond the scope of itself. Those. The meaning of the work of a logistics center is not in the work of the logistics center itself, not in the fact that loaders place the company’s product on a truck, and the driver takes it to the client, but in helping to implement a more global business process, namely the sale of the company’s products, through delivery goods to the company's customers. Therefore, in this case, the IFR, in my opinion, would sound better formulated as follows: “Make the receipt of the company’s product by customers no more expensive than N rubles per V km.” Thus, when searching for solutions to this problem, consciousness is no longer limited only within the framework of the work of the logistics center, but at the same time does not exclude the possibility of its use, and we add to the possible solutions already obtained those that in the first case we could not come to due to a narrower areas of search for solutions:
d) outsourcing delivery
e) the possibility of a discount for customers who pick up the products themselves
f) opening production in regions where large clients are present, etc.
How to use the technique?
Create an IFR that could be achieved not only through the implementation of the process, but also in all available ways, as was the case in the example.
Technique #2 - Eliminating unnecessary steps from the process.
When implementing this technique, it is necessary to consider the purpose of each step of the process, asking whether any steps can be eliminated or combined.
Example 2
At Technosila, when hiring a salesperson, he had to go through the following stages:
- Telephone interview with HR manager
- Face-to-face interview with the HR manager at the central office
- Interview with the store director
- Bring the documents necessary for employment to the central office
And only after going through all these stages could he start working in the store of his choice.
The tasks of the HR manager are to prevent random people from getting an interview with the store director, such as people who do not match their age, education, place of residence, etc. i.e. The role of the HR manager is a kind of filter, and the decision to hire is made by the store director. After analyzing the tasks of these stages, management came to the conclusion that stages 2 and 4 are redundant because Candidates who do not meet basic requirements can also be screened out during a telephone interview. The fourth stage, namely the registration of an employee, was transferred directly to the supermarket where the future employee will work.
How to use the technique?
- Are there stages that duplicate each other? Is it possible to remove one of them?
- Are all stages of the process necessary for the main purpose of the process, and if so, are there any that can be dispensed with?
Technique No. 3 - changing the sequence of process execution stages
Example 3
In his book “How to Clean Up Your Business,” Mikhail Rybakov describes an interesting example of the procedure for issuing a loan at a bank. The sequence of the described actions is such that first the bank manager prepares all the documents and only when 90% of the work is completed, a request is sent to the security service. If the security service does not approve the loan, 90% of the work turns out to be wasted man-hours, depreciation of equipment and other consumables, plus lost profits. It is clear that every business has its own risks, but the manager’s task is to reduce them in every possible way, and in this case this is extremely easy to do. To do this, you just need to make the operation of checking a potential client by the security service one of the first steps in the loan application procedure, this will allow you not to perform unnecessary operations in case of refusal.
How to use the technique?
Analyze the business process outlined step by step through questions.
Which of the process steps are most significant for the successful completion of the process?
Can these steps be moved closer to the beginning of the process?
Technique No. 4 - Splitting operations
I.L. Vikentyev repeatedly repeats at seminars that the more advanced business processes are, the fewer requirements they place on employee qualifications. The essence of this technique is precisely this division of processes and operations, which leads to simplification of the process as a whole. In essence, this is a conveyor operating principle known since ancient times. One of the most brilliant examples of how this principle can improve productivity is the case described by Adam Smith.
Example 4.
An English craftsman of the 17th century maintained a workshop in which pins were made. Each apprentice led the pin production process from start to finish. Due to the economic crisis, the owner was unable to pay the qualified employees of his workshop, so their cooperation was terminated (he fired them). As a result, it was decided to divide the production of pins into small sequential operations. Each of these operations could be mastered by any untrained person, or rather, they recruited 15-16 year old boys from the street. Thanks to this move, not only labor costs were reduced, but also production increased by more than 200 times! If earlier the workshop produced about 80 pins a day using the labor of qualified craftsmen, now the workshop produced 48,000 pins using the efforts of apprentices.
How to use the technique?
Which operations in the process require the greatest qualifications of the performer?
Is it possible to divide these operations into simpler operations so that the requirements for the performer are reduced?
Technique No. 5 - Taking operations outside the scope of the main process
Often in complex processes full of operations, the same performer performs all operations, which significantly delays the process and also significantly reduces its quality. Because as we know, generalist masters are very rare. We can be convinced of this by looking into a rural auto repair shop, where the same employee also repairs the chassis, and if necessary, he will also undertake carburetor repair, which is difficult to imagine in any professionally equipped workshop.
Example 5
In the Stolplit furniture holding, initially sellers were entirely involved in processing loans. In this regard, a lot of difficulties arose in the work of retail outlets:
- firstly, the registration process itself was greatly delayed, i.e. I have already said that you cannot be a pro in everything, both in sales and in preparing bank documentation.
- secondly, for obvious reasons, when applying for loans, the total number of clients served decreased, i.e. turnover was falling
- thirdly, sellers often made mistakes when preparing loan documentation, which again reduced the number of loans issued, etc. etc.
In the described situation, it is clearly visible that issuing a loan is the anchor that slows down the sales process at retail outlets, but should, on the contrary, stimulate it. Because It is absolutely clear that today not a single point can do without providing the service of selling on credit. There is an obvious contradiction: the service of selling on credit should be present at the point of sale, but at the same time it should not drain resources.
The solution was simple: a remote loan processing center (LOC) was created, which worked with all Stolplit partner banks. The seller’s task was only to make a photocopy of the passport and send it to the UCC to indicate the type, amount and term of the loan.
How to use the technique?
Analyze the steps of a prescribed business process through questions
Which operations in this process are the most energy-intensive?
Can these operations be entrusted to other performers without compromising the process? Moreover, it is important to understand that operations can be entrusted not only to an employee of his own company, but also outsourced.
Technique No. 6 - Unification operation in time and (or) space
Example 6
Combining mining and production. The production of canned fish is often located directly on the vessels that fish. At the sites where minerals are extracted, their processing is often organized.
Example 7
In a beauty salon, several specialists can work with a client at the same time.
How to use the technique?
Analyze the business process outlined step by step using questions:
What if in a given process operations that would be more expedient to combine in time and (or) space?
Technique No. 7 - Automation, transferring part or all functions to a machine
This technique is used in a situation where a technical device can completely take over all operations to implement the process, and a person periodically maintains the device.
Example 8
The first vending machines to replace the salesperson appeared in the United States in the 1880s.
In 1946, the first coffee machines appeared, replacing not only the seller, but also the bartender, because... not only sold, but also prepared coffee from whole roasted beans.
How to use the technique?
Analyze the step-by-step business process using questions:
If at the moment there are technical devices (machines, programs) that can perform operations present in the process without loss of quality.
List of sources:
- Electronic book “Introduction to TRIZ. Basic concepts and approaches" v. 3.0
- Creative methodology: “Ideal final result (IFR)”
- Rybakov M.Yu. “How to get your business in order. Workshop" Icarus 2011
- Oleg Bezrukov “Is it possible to increase labor productivity by 10,000% within a year?”
Bondarenko Denis Alekseevich, business coach.
© D.A. Bondarenko, 2012© Published with the kind permission of the author
Methods for optimizing business processes
Business Process Optimization is the direct development and implementation of measures to improve (reorganize) the company’s business processes.
The study of their actual state allows us to formulate goals for improvement (reorganization). For example, gaining market share, reducing order processing time, reducing inventory, etc.
Company A produces sporting and recreational goods. Based on a study of the current market situation, the company formulated the following goals:
· Cost reduction up to 25 Euros per product on average.
· Manufacture and delivery of product according to customer order within 5 days from the date of order in the store.
· Maintaining a product range of 1,300 pieces.
The company's management accepted the proposal to research and improve processes and, as a result of the research, set appropriate goals. To achieve the planned results, it was necessary not only to radically improve the order process, but also to make changes in product development, organization of work at the installation site, change the functions of employees and organize sales work.
Optimization is aimed at achieving set goals and contains measures to eliminate detected problems. These may include: issues of interfacing changed technologies, changed work systems, too many management levels, downtime, unused capacity, duplication of work tasks, errors in information transfer, loss of information, errors in documentation, etc.
When developing optimization measures, the impact parameters should be taken into account: logistics, economic, time, space, personal.
Logical ones are the number of process stages, technological feasibility, sequence of events, organizational interaction.
Economic - low costs, high capacity utilization, low inventory levels, economical process depth, flexibility, high share of value creation.
Temporary - short order processing time, low share of auxiliary time, low share of changeover time, flexibility of production time.
Spatial - the possibility of locating the necessary workplaces, the possibility of organizing work systems, minimal transport routes, the possibility of changing the order of arrangement of work systems.
Personal - volume of work and need for personnel, provision of necessary qualifications, advanced training, flexible working hours for staff.
First, we need to understand for ourselves what goal we are pursuing when intending to optimize or reengineer a particular business process.
In other words, you need to set a specific task first, otherwise optimization will not bring any effect.
Let us briefly consider the main methods used to optimize business processes:
1. SWOT analysis (analysis of the strengths and weaknesses of a business process)
SWOT analysis is a strategic planning method used to assess factors affecting a project or enterprise. All factors are divided into four categories: strengths, weaknesses, opportunities and threats.
The principle of the method is to search and eliminate/strengthen the weakest points and minimize potential risks and threats.
2. Cause and Effect Method (Ishikawa Diagram - Cause and Effect Diagram)
Ishikawa diagram - so-called. Fishbone Diagram or Cause and Effect Diagram, and also known as a Root Cause Analysis diagram.
One of the seven main tools for measuring, assessing, controlling and improving the quality of production processes, included in the “seven tools of quality control”:
Control card;
Pareto chart;
Histogram;
Check sheet;
Ishikawa diagram;
Layering (stratification);
Scatterplot.
Such a diagram allows you to identify key relationships between various factors and more accurately understand the process under study. The diagram helps to identify the main factors that have the most significant impact on the development of the problem under consideration, as well as to prevent or eliminate the effects of these factors.
3. Benchmarking
A method for analyzing superiority and assessing the competitive advantages of partners and competitors of the same type or related industry in order to study and use all that is most productive. A bit reminiscent of industrial espionage, however, the difference is that this method is carried out using superficial observations.
4. Analysis and optimization of business processes based on indicators (KPIs)
Key performance analysis method. The principle of establishing final goals for a project, with the achievement of which the “bar” is raised, or, if the goals cannot be achieved, the means of achievement or the goals themselves are revised.
5. Brainstorm
A method in which a solution to a problem is discussed and all possible methods are put forward; on the basis of this, the most effective one is selected. discussion participants
6. Lean methods, “6 Sigma”
A method for identifying productivity improvements due to defect reduction in the manufacturing process.
7. Calculation and change of process fragmentation
Method of reducing or increasing the components of a business process
8. Analysis of the business logic of the process, elimination of ineffective procedures, distribution of responsibility for the execution of business processes and delegation of decision-making authority, linking parallel work, recording information at the source and incorporating information processing into real work.
9. Functional cost analysis method (FCA analysis)
The principle of the analysis is to achieve maximum functionality of the object at minimal cost, both for the seller and the buyer.
10. Method of simulation (dynamic) modeling of power supply
A technique that allows you to represent, within the framework of a dynamic computer model, the actions of people and the use of technologies used in the reengineering processes being studied. Carrying out modeling involves four main stages:
1) building a model,
2) launching the model,
3) analysis of the obtained performance indicators,
4) assessment of alternative scenarios.
A very effective method, provided that all the necessary quantities to build the model are current and accurate.
11. Calculation and analysis of labor intensity and duration of a business process
The methodology was created to calculate the optimal number of employees in an enterprise and the workload on them.
12. Analysis of the responsibility distribution matrix
A technique for compiling a visual functional table that strictly divides the organization into structural divisions, units, etc. In other words, tasks are assigned to structural units
For an optimal solution for optimizing business processes, you can use all methods as a whole or separately, depending on the tasks set and the volume of information analyzed
At present, when, on the one hand, strong competitors with well-established work schemes are entering the market, and on the other hand, our enterprises are expanding their activities, it is important to restructure their work scheme in a timely and painless manner.
For example, if an enterprise needs to improve its work in a short time (no more than three months): reduce costs, accounts receivable, shorten the commodity and production cycle, reduce the number of management errors or take urgent measures to overcome the crisis, it can use the express method optimization of business processes.
On the one hand, this is a fairly simple method, but, on the other hand, it is very labor-intensive and energy-consuming (regardless of whether it is a commercial enterprise or a production-commercial one).
Stages of business process optimization using the express method:
First of all, it is necessary to compile a list of all business processes existing in the enterprise and develop a functional diagram of the enterprise. Then an enlarged diagram is developed, which reflects all the main business processes occurring in the enterprise and the relationship between them, and then detailed diagrams of each business process.
2. Carrying out ABC analysis.
After the scheme has been developed, an ABC analysis is carried out, which makes it possible to identify a small number of the most significant business processes that need to be given primary attention. To do this, all business processes are divided into three groups - “A”, “B” and “C”.
Group “A” includes processes that require the highest costs. As a rule, this is 5-10% of all processes occurring in the enterprise, which account for 75-80% of all costs.
Group “B” includes approximately 20% of business processes, which include approximately 10-20% of costs. And finally, group “C” consists of the remaining 60-75% of processes, which “eat up” only 5-10% of the enterprise’s costs.
There is a standard set of parameters that must be constantly analyzed regardless of the type of enterprise. This:
* reliability of information flows;
* scheme for making and validity of a business decision;
* efficiency of existing business processes of the enterprise;
* adequacy of management to the assigned tasks;
* adequacy of the staff motivation system;
* modernity of the technological process;
* adequacy of time costs.
The basis for conducting ABC analysis is operational data obtained through a survey of all employees on problems and proposals, as well as timing of working time in a cross-section for each link of the business process.
The main attention is paid to problems arising in interstructural connections.
3. Analysis of the state of liquid assets
Simultaneously with ABC analysis, an analysis of the state of the most liquid assets is usually carried out. As practice shows, “putting things in order” in accounting and control over the use of liquid assets in a short time (up to three months) gives the greatest effect.
The importance of accounting for such assets is due to several factors. Firstly, it is these assets that are of the greatest material interest to unscrupulous employees. Secondly, the ability to manage them depends on the correct organization of control over the use of liquid assets. If the information received by management does not reflect the true state of liquid assets, this can lead to a crisis for the enterprise, including bankruptcy, especially in an increasingly competitive environment.
The analysis of accounting for liquid assets should begin with a review of banking and cash transactions. Particular attention must be paid to the status of settlements with suppliers and customers and to inventory management.
4. Optimization of business processes
After the analysis, you can begin to optimize business processes, that is, directly to the improvement stage. Any actions to improve the operation of an enterprise should begin with optimizing the processes of group “A”. It must be emphasized that when using the express method, only those processes are selected that can be improved in three months. It should be noted that the improvement stage is direct changes in the company. But resistance to change, as you and I understand, is always high among employees.
Therefore, each change must be discussed by employees involved in a specific business process. And only a decision should be made that suits representatives of each link of the business process. Then, within two to three days, the solution is tested and adjusted. Only after this we move on to developing the next business process.
5. A daily reporting system is created, reflecting information on the expenditure of all types of resources (including working time). Increased control is established over the most expensive and scarce resources.
Reporting forms are developed, which are also tested in working order, and then agreed upon with the managers of the departments where these forms will be used, and approved by the management of the enterprise. Thanks to the introduction of daily management reporting and streamlining of document flow, the enterprise immediately receives a number of benefits:
* The management of the enterprise can at any time determine the direction and timing of the expenditure of any monetary and material resources. Even if these resources continue to be wasted, an information base is created from which methods for more optimal resource management can subsequently be developed.
* Thanks to the introduction of a clear procedure for processing requests for resources, costs are reduced. Because spending any resource requires multiple paperwork and approvals, the employee stops making “just in case” resource purchases. Thus, requests are made only for resources that are truly needed.
* Labor productivity increases because people always work more intensely if they report on the work done daily.
* Based on the analysis of daily reports from employees (primarily the highest paid) on the work done, important tasks for which they do not have enough time are identified, and tasks the solution of which can be delegated to lower paid employees. Optimal redistribution of tasks between employees allows enterprise management to achieve more efficient staff performance without increasing wage costs.
* As information accumulates, costs are analyzed in detail and, on this basis, measures are developed to reduce them. One of these measures could be the introduction of a more rational procurement planning system, which will reduce the amount of raw materials in the warehouse and reduce the costs of their transportation and storage.
Thus, there is a transition from cost accounting to cost management.
6. The company’s document flow is adjusted.
All adopted and working decisions are made by adjustments to the document flow system: “Regulations on the organizational structure”, the system of job descriptions, “Regulations on wages”, “Internal regulations”.
7. Result
The result of using the express method for optimizing business processes at the end of a three-month period can be a reduction in costs by 5-15%, a reduction in the production cycle and an improvement in the state of the enterprise’s accounts.
After the stage of business process optimization, an effective personnel management system is developed, a personnel assessment and certification system is introduced, which includes:
* Stages of the assessment process: preparation, implementation, maintenance and monitoring, analysis and use of results;
* Regulatory support for the assessment process: correct execution of job descriptions, employment contracts, work standards, etc.;
* Assessment process and system of procedures, documentation of the process;
* Training managers in the basics of personnel assessment technology;
* Analysis and use of personnel assessment results to make personnel decisions;
* Planning of company personnel management activities based on the results of the assessment process.
We have come to the concept of business process reengineering (BPR), i.e. creating completely new and more efficient business processes without taking into account what came before. BPO uses a large number of tools and techniques within a conventional framework. The previous issue described one of them - an express method for optimizing enterprise business processes. Let us consider in more detail each of the stages of implementing this method in an enterprise.
Processes are streams of work and they have their boundaries, in other words, a beginning and an end. For example, business processes are: inventory management, DS management, marketing management, HR management. The subprocesses of inventory management are: supply planning, accepting orders for inventory items from the client, selling inventory items, storing inventory items, writing off inventory items, etc.
Procedures are a guide, a documented regulatory procedure in which the sequence of actions must be prescribed. For example, control over returns is already a clearly defined procedure (by whom, how and when it should be carried out). Procedures are reflected in procedure cards.
Strictly speaking, in the functional structure it is also possible to reengineer any detail and even appoint “process owners” along with the existing department heads. To make this mechanism work, it is necessary to preserve the principle of unity of command and clearly describe in the “Regulations on the Organizational Structure”, as well as in other fundamental documents of the company, the areas of responsibility, powers and interaction procedures for each department head, process owner and each joint of the responsibility matrix.
Then the efficiency of the structure will not fall as low as it does in most firms.
So, the sequence of our actions with you:
1. Identification of key problems in business processes.
2. Carrying out ABC analysis. Distribution of areas of responsibility.
4. Creation of a daily reporting system.
5. Adjustment of document flow.
6. Result.
1). All information available at the enterprise is subject to diagnostics:
* Material or explicit information is data and knowledge that can be found in organization documents in the form of messages, instructions, contracts, Regulations, letters, articles, reference books, patents, drawings, video and audio recordings, software, etc.
* Personal or hidden information is personal knowledge that is inextricably linked to individual experience. They can be transmitted through direct contact (“face to face”), using questionnaires. It is believed that it is hidden practical knowledge that is key to identifying problems in an enterprise. This information is also interesting because it indirectly reveals the degree of employees’ readiness to contribute to the development of the company. Therefore, questionnaires are a simple and convenient tool for diagnosing key problems of an enterprise.
Each employee is given a questionnaire asking him to describe the duties (daily, weekly, monthly, annual) that the employee performs, the problems that the employee encounters in the course of work, and, of course, specific proposals that he would like to implement at the enterprise. TOP managers (commercial director, chief accountant) usually have the entire range of responsibilities; line managers (accountant-coordinator, supervisors, warehouse manager) have a monthly range of responsibilities; ordinary employees (sales representatives, forwarders, operators) have daily and weekly responsibilities. I would like to note that the company always has employees who care not only about themselves, but also about the company. Such employees are usually quite specific in their ability to describe their responsibilities, clearly identify the problems they face, and propose specific solutions to eliminate these problems. I personally consider such employees as the golden fund of the enterprise, which needs to be given maximum attention by the company's management.
Through the analysis of questionnaires, key problems are identified. The key problem (category A) is precisely the one that “cuts through” the employees of different departments.
For example, an operator (accounting) writes: “a large number of returns, sales representatives accept applications poorly”; storekeeper (warehouse, accounting): “reduce the number of returns, sales agents do not know how to work with clients”; forwarder: “I’m ashamed in front of my clients, every time you hear that we’re a mess, we’re always bringing other people’s orders, we need to immediately reduce returns”; sales representative (commercial department): “they are deprived of allowances for returns, although it is not us, but the storekeeper who allows “re-sorting”, and the operator generally fills in invoices incorrectly.”
Thus, we are faced with a problem that we have defined as “return”, which we highlight as independent and pay special attention to. Our personal experience suggests that you shouldn’t pay attention to everything at once. It is enough to initially identify no more than 3-4 key problems, which you can then work on. It’s okay if you still allowed other problems to “breathe.” I dare say that some of them will disappear on their own, after working out the key ones.
Next, the participants who are involved in this problem are identified. The “return” problem: sales representative, operator, forwarder, storekeeper. The timing of their working time (implicit information) is carried out according to a characteristic section and the documentation they fill out (explicit information) is analyzed.
Sales Representative (TS). Responsible for returns in the form of surcharge. A sample of applications (explicit information) filled out by sales representatives suggests that they are filled out carefully, but are submitted as soon as the sales representative arrives at the office (after 7 p.m.). However, the trainees confuse the names of the stores, and there are many corrections in the applications.
The operator's main load begins at 16:00 in the afternoon and continues until 21-20:00 in the evening, until the entire volume of applications is completed. Although he needs to be at his workplace at 8-00. Physical overload on the face. Analysis of generated documents (explicit information) showed that the standard for typing documents by the operator is not observed, although the operator’s typing speed is high - 230 znmin. The reason is that the 1C program is not adapted to the needs of the enterprise and additional time is required to generate the necessary documents.
Before 19:00 there are no errors in the generated documents, the operator works quickly and is not distracted by external noises, but after 19:00 the number of errors increases, the operator gets confused, is distracted by external noises, and the specialist cannot concentrate. After 20-30, when all the strangers leave, the operator again begins to work efficiently, but the dialing speed decreases by 2.5 times. Thus, the number of operator errors occurs between 19-00 and 20-30. The bonus is given when the plan is fulfilled. There is no surcharge for no returns.
Forwarder. Works well with the client. Attentive. Knows the product well. The route is designed optimally. He knows the route and clients well. He gets very worried when a client refuses a product, but doesn’t tell anyone about it, experiencing it within himself. Not present when the goods are shipped. There is no surcharge for no returns.
Storekeeper. Works inattentively with documents (explicit information). The location of the goods and the goods themselves are poorly known. Instead of one position (for example, 130 tenge) he places another (360 tenge), completely not understanding the difference between them. Maybe instead of the ordered 59 pieces. put 69 pcs. The order is assembled only by him and the loader. He doesn't care what he shipped. Does not bear financial responsibility. Receives a salary increase when the company fulfills the plan. There is no surcharge for no returns.
2). Carrying out ABC analysis. Distribution of areas of responsibility. The key problem is identified as “control of returns”.
Analysis of the proposed
events:
A). A supervisor is appointed as the “master” of the “returns control” procedure. He bears primary responsibility for returns as... It is he who is given the authority to investigate and identify the reasons for the return and determine the guilty party. Why the supervisor? Because he is subordinate to sales representatives responsible for the quality of communications with clients. Any failures in working with the client (in our case, the frequency of returns), to which employees pay attention, are reflected, first of all, in communications and the image of the company.
B). A responsibility matrix has been introduced through the “For No Returns” allowance, which makes it possible to clearly delineate areas of responsibility between employees and determine the moment when the responsibility of each employee arises. Thus, it is easy to identify the guilty party and punish. From a psychological point of view, a clearly defined responsibility matrix does not allow an employee to shift his blame onto others, restoring the principle of fairness and impartiality in the company. The “transparency” of this procedure will not allow some employees (in our example, the storekeeper) to sit back and receive a salary for being a good person, but not an employee.
IN). The load on each employee has been optimized (in our example, the operator is unloaded in the evening, but on the other hand, submitting applications before 17-00 mobilizes technical support staff, forcing them to work better in self-organization mode, so as not to lose volumes).
3. Reengineering (optimization) of business processes.
In order not to encounter resistance from employees who would not want to change anything, a set of proposed measures is submitted for their discussion. The director gathers representatives from all areas of the process, identifies the problem and, together with employees, outlines ways to solve it. But before introducing the proposed mechanisms, it is necessary to test the proposed set of measures. Over the course of a week, the decision made is worked out in real time, adjusted, and only then is a decision made to introduce changes, and only then can we begin to implement the process description.
Thus, business process reengineering allows, on the one hand, to obtain an optimization effect without radically disrupting the current business model of the enterprise, and on the other hand, to actually improve the current business model.
Yulia Lelina
Business Process Optimization
In modern management practice, the process approach is widely used. This article presents the author’s practical experience in researching and optimizing business processes
There are several types of events, each of which can serve as a reason to launch a business process improvement (improvement) program. These include both objectively ineffective actions and problems in achieving the intended results, as well as changes in the environment (the appearance of new technologies, competitors, etc. on the market).
In any organization with a hierarchical structure, managers, as a rule, have top-level (conceptual or strategic) knowledge of all functions subordinate to him, and employees have knowledge exclusively of a highly specialized function that they perform daily (operational activities of a certain area of work). This “gap” between manager and subordinate is normal, but carries the risk that no one has a complete picture of all processes with all the nuances and specifics.
Often problems arise at the interfaces of work or the transfer of information between different departments or even between employees within the same department.
As a result, the organization faces the task of optimizing work and processes in order to reduce costs or losses (financial, material, time, labor) for performing certain work.
An effective solution to the optimization problem is to use " process approach" And "8D team problem solving techniques".
Brief information
About the process approach
The process approach is considered to be the systematic identification and management of the processes involved in an organization and especially their relationships.
A process is any activity or set of activities that uses resources to transform inputs into outputs.
The process model of an enterprise consists of many business processes, the participants of which are structural units and officials of the organizational structure of the enterprise.
Process-oriented organizations try to eliminate barriers and delays that arise at the intersection of two different departments of the organization when executing one business process.
A business process is understood as a set of different activities that together create a result that has value for the organization itself, consumer, client or customer.
The basis for managing an individual business process and a group of business processes are performance indicators, among which are:
- costs of implementing a business process,
- calculation of time for the implementation of a business process,
- business process quality indicators.
The principles of the process approach are enshrined in the international standard for certification of the quality system of the series ISO 9000 in order to increase customer satisfaction by meeting the requirements of the quality management system.
According to ISO 9000, when assessing a process control system it is necessary to:
- identify and define the process;
- distribute responsibility;
- implement and maintain procedures (process management);
- evaluate the effectiveness of the process in achieving the required results
Brief information
8D Methodology (8 Discipline) is a technique for solving local problems in processes.
The 8D method is also known as: Global 8D, Ford 8D or TOPS 8D.
The 8D method was developed by Ford and consists of 8 sequential steps to solve a problem whose causes are completely or partially unknown. The 8D methodology uses team, process, problem and analytical approaches.
Each step (stage) of the 8D method has the letter D in its name, which means Discipline.
D0 - Define the problem and develop a plan.
D1 - Team formation.
D2 - Description of the problem.
D3 - Containing the problem.
D4 - Problem analysis.
D5 - Development of corrective measures.
D6 - Implementation and validation of corrective actions.
D7 - Development of preventive actions.
D8 - Closing the 8D mini project.
The 8D method is a problem-solving methodology to improve a product or process. It is structurally composed of 8 disciplines, emphasizing the synergy of the group. The 8D technique is teamwork. It is assumed that the group as a whole is more effective than the qualitative sum of its individual members.
Where to start?
Observation and fixation
Studying a process with the aim of optimizing (improving) it should be considered as a project. At the start of the project, it is necessary to identify goals, appoint a project manager and analyst, determine a focus group (usually heads of areas/divisions, experts), define the boundaries of the project (which processes are to be studied), develop a plan of meetings and actions.
To study the processor, it is better to assign an independent expert to the role of analyst, for whom the topic of study will be new, i.e. an “outside view” is needed, new experience (an employee who performs certain operations every day adapts to them and often does not notice “problem areas”). The analyst can be either an employee of the organization or from an invited (consulting) company.
Let's consider a situation where the task is to optimize and reduce costs/losses without the need to develop official documents intended for inspection bodies (for example, in accordance with ISO requirements), but to organize quick and reasonable improvements or cost reductions.
The survey begins with a study of available documentation (regulations, instructions, regulatory documentation, etc.) and collection of information. The collection of information can be organized in the form of questionnaires and meetings, but the most effective is the personal presence of the analyst at the workplaces of all employees involved in the process to study their actions.
Observation- a research method consisting in the purposeful and organized perception and recording of the behavior of the object being studied.
Conversation with the manager
The head of the department describes the “big picture” of the departments subordinate to him: external and internal communications, organizational structure (distribution of functionality), goals and objectives, a complete chain of actions (without details), reporting, statistics.
Studying the actions of performers in the workplace
An employee at each work site tells in detail and shows the sequence of his actions, the forms of documents he uses and forms in his work (inputs-outputs), where and how he transfers information/documentation, with whom he interacts, what software he uses, the sequence of work in the interfaces used systems At this stage, measurements are made of the time spent on performing the operation; problems during the operation are identified; and possible solutions to problems are discussed.
Focus group discussions
Discussions are an important part of research. Focus group experts should take an active part and put forward their proposals (even the most unrealistic and complex - any). In practice, an effective tool is the “5 Whys” method.
The information received should be recorded by any convenient means: notes on A4 sheets/notepad, laptop, voice recorder, any convenient means that allows you to reproduce the information.
At this stage, the analyst's task is listen, observe, record.
Method "5 why?"
Method "5 why?" invented by Sakichi Toyohara and used by Toyota during the evolution of their production methodologies. Currently, the technique of determining the root cause of a problem by asking “Why” five times is used in the concepts of lean manufacturing, kaizen, 6 sigma and others.
The method does not offer strict rules or restrictions regarding what questions to ask and/or how long to continue asking a question to look for additional reasons. Thus, even if the method is followed, the result depends on the knowledge and perseverance of the people involved.
Since several options may arise when answering the question posed, the “5 Whys” method does not exclude building a “tree” of reasons. Therefore, the approach is similar to the method of cause-and-effect diagrams and Ishikawa (Fishbone) diagrams. It is quite possible that during the analysis process some reasons will turn out to be common to several branches at once.
Complete the analysis with Five Whys? follows one “How” answer for each of the identified root causes of the resulting tree or diagram. The answers received should result in the implementation of solutions.
How to formalize the information received and make it structured?
Visualization and description of processes
When determining the business processes that exist in an organization, it is advisable to start describing the processes from the top level. Next, for each top-level process, its decomposition is done (a more detailed description). The number of process decomposition levels is determined by the project objectives and should not be too large (no more than 6-8 levels).
The top level of description of business processes corresponds to the processes managed by top managers, the second level, as a rule, is considered at the level of large functional units, then the functions performed at the workplace are considered.
Within the links of the functional hierarchy, there are flows of information directed from top to bottom (managerial decisions) and from bottom to top (reports).
Visualization of the information obtained during the survey is the result of the analyst’s creative approach to displaying the sequence of process operations.
The most common among modeling methodologies, and, importantly, approved by the State Standard of Russia, are the standards of the family IDEF.
IDEF0 concept
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IDEF0 is based on the SADT approach (Structured Analysis & Design Technique / Development Technology) and is used to create a functional model of a system or process that displays its structure, functions, as well as information and material flows transformed by these functions.
The IDEF0 concept is based on the following principles:
Model. It is an artificial object, an image of a system. The model is developed to reengineer an existing system or create a new one. The model describes what happens in the system, what it transforms, what means it uses to perform its functions, what the system produces as a result, and how it is controlled.
Block modeling. The system under study is represented as a set of interconnected, mutually dependent blocks that reflect the processes occurring in the system. Each system function is associated with a block, displayed as a rectangle on the IDEF0 diagram. The arrows entering and leaving a block describe the interfaces through which this block interacts with other blocks and the external environment. In this case, the incoming arrows describe the conditions that must be met simultaneously for this block to perform its function.
Conciseness and precision. The graphical language IDEF0 allows you to concisely, accurately and unambiguously describe all elements of the system and the connections between them, as well as identify erroneous, unnecessary or duplicate connections.
Transfer of information. The means of transmitting information in IDEF0 include:
- Easy to read and understand diagrams.
- Natural language labels and accompanying text clarifying the meaning of the diagram elements, as well as a glossary.
- Sequential decomposition. Blocks can be broken down into their component parts and presented as more detailed diagrams. You can start the next level of decomposition only after the final completion of the “parent level” model.
- Tree diagrams of diagrams and blocks that allow you to read the diagram, gradually revealing levels of detail.
Iterative modeling. Model development in IDEF0 is a step-by-step procedure. At each step, the model is discussed by analysts and experts in the field being studied, then adjusted, after which the cycle repeats.
Separation of "organization" from functions. The model should not be tied to the company's organizational structure. On the contrary, the organizational structure should be the result of applying the model, which will allow, firstly, to assess the adequacy of the model, and secondly, to propose solutions for improving this structure.
Software that supports the IDEF0 standard can be Design IDEF (Meta Software) or BP-Win (CA).
A graphical diagram is the main component of the IDEF0 model, containing blocks, arrows, connections of blocks and arrows, and their associated relationships. Blocks represent the main functions of the modeled object. These functions can be broken down (decomposed) into their component parts and presented in more detailed diagrams; the decomposition process continues until the object is described at the level of detail necessary to achieve the goals of a particular project. The top-level diagram provides the most general or abstract description of the modeling object. This diagram is followed by a series of child diagrams that provide a more detailed view of the object (see IDEF0 Functional Modeling Methodology).
ARIS- methodology and software product of the same name by IDS Sheer. The ARIS eEPC notation is an extension of the IDEF3 notation.
A business process in eEPC notation is a flow of sequentially performed works (procedures, functions), arranged in the order of their execution. Flows of material resources and information can be displayed between processes. Product/Service and IT system objects are used to describe the infrastructure required to perform a process.
In accordance with the ARIS methodology, each process can be considered in five aspects:
- Organizational aspect- represents a set of organizational units, their relationships and relevant structures participating in the process;
- Information aspect- displays the composition of data and information involved in the process;
- Control aspect- describes the relationship between process models of various types;
- Functional aspect- contains descriptions of functions, individual subfunctions and their connections with each other and with the main functions.
- Product aspect- determines the composition of products and process resources, as well as their relationship with each other and with elements of other models.
Organization in ARIS is viewed from four perspectives:
- Organizational structure,
- Functional structure,
- Data structures
- Process structures.
Description of current processes
Model AS IS ("As Is")
Model AS IS(“as is”) - a model of the existing state of the organization.
This model allows you to systematize the processes currently taking place, as well as the information objects used. Based on this, bottlenecks in the organization and interaction of business processes are identified, and the need for certain changes in the existing structure is determined.
This model is often called functional and is performed using various graphical notations and case tools. At the stage of building an AS IS model, it is considered important to build a model as close as possible to reality, based on real process flows, and not on their idealized representation.
The design of information systems and process management implies the construction of an AS IS model and a further transition to the TO BE model, which is the key to automating the “correct”, improved processes.
In my practice, at the stage of describing the AS IS model, I use the ARIS eEPC notation to display the sequence of procedures (functions) in the form of a flowchart (the free version of ARIS Express can be downloaded). This approach is simple and most effective because... allows participants to quickly understand the structure of the entire process.
The connections between objects have a certain meaning and reflect the sequence of functions performed within the process. The figure below shows the simplest eEPC models describing fragments of a business process.
The arrow connecting Event 1 and Function 1 “activates” or initiates the execution of Function 1. Function 1 “creates” Event 2, followed by a logical “AND” symbol that “triggers” the execution of Functions 2 and 3.
The eEPC notation is based on certain semantic description rules:
- every function must be initiated by an event and must end with an event;
- Each function cannot contain more than one arrow that “starts” the execution of the function, and no more than one arrow can exit that describes the completion of the function.
A business process must be characterized by certain indicators so that the process can be measured and its effectiveness assessed.
Performance indicators can be divided into 5 main groups:
- quality;
- lead time;
- quantity;
- costs;
- ease of use.
Any processes can be divided into two components - the one that adds value to the product, and the one that does not increase its consumer value. The criterion for increasing the value addition component of a process can be used as a basis for optimizing business processes. Moreover, this criterion can be chosen as a defining principle to simplify any business process.
When a product (service) passes through the chain of business processes of an organization, two things happen to its value:
- During the production process, a product absorbs the cost of labor, materials, energy, and other associated costs. However, the added value of products does not depend directly on these costs.
- The value of a product increases when qualities such as functionality, aesthetics, branding and similar aspects that are important to the client are added to the product. Ultimately, this will make it possible to sell it at a price higher than the total costs that were spent on the product, i.e. make a profit.
Evaluationbusiness process measurements must be carried out from the client's point of view. Companies typically view their business processes in four distinct categories:
- development of products and services;
- demand generation;
- meeting demand;
- enterprise planning and management.
Identification of bottlenecks (losses)
Process optimization
Process Bottlenecks- operations and connections that reduce the efficiency of the process, increasing its complexity and cost. Bottlenecks usually represent duplicate operations/work, time delays beyond normal, information loops, overloads of individual elements, material/time and other losses. To identify and eliminate such bottlenecks, business processes are optimized.
14 steps of process optimization by E. Deming
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In accordance with the management principles of E. Deming, to optimize each process it is necessary to perform 14 steps in succession:
- Describe the scope of the process. To do this:
- List all events that start a process.
- List all process termination points and exits of this process to other processes
- Highlight the main steps of the process, tasks and activities that belong to this process.
- List all tasks and activities for which there is doubt whether they belong to this process in order to find out which of them should be retained and which should be eliminated.
- List all the inputs and outputs of a process, including all resources used in the process.
- Create a model of the process in its current state (as is).
- Identify indicators of the quality of process functioning. At this stage, it is very important to obtain a comprehensive list of factors that will help assess the effectiveness of the process. To do this, you can use 6 aspects of quality, dividing the indicators into the following groups:
- Eligibility and suitability. This group of indicators evaluates the product from the consumer's point of view.
- Timeliness. This group includes time indicators, including the date of provision of the product or service to the end user, development time, etc.
- Accuracy and completeness. These two criteria complement each other. For example, incomplete documentation may be considered inaccurate.
- Quality of customer interaction. The product developer must take into account all the client's requirements and be in constant contact with the customer.
- Process efficiency. These are indicators that characterize the cost of costs, rework, waste and other losses of time and resources.
- Business efficiency. These indicators relate to the output of the process, to the strategy for its implementation, for example, the profitability of the product.
- Record the results characterizing the current state of the quality of the process. The main difficulties that will have to be encountered at this stage may be: the lack of measurement techniques, registration rules and human resources for collecting information.
- Describe data characterizing the consumer's opinion about the quality of the process. The list of data is obtained based on a consumer survey, which can be conducted in any form: telephone surveys, interviews, focus groups. It is important to find out whether the product or service being offered is what the consumer actually wants, whether there is anything else the consumer would want, and whether there is anything that the product designer should not do. Next, you need to establish a connection between the results of a survey of consumer opinions about a product or service with the quality indicators that were determined in step 3.
- Describe data that allows you to compare the progress of similar processes in your and other organizations. The process should be assessed from the point of view of existing competition. To do this, you need to understand how other companies implement similar processes. The indicators by which the assessment will be carried out can be taken from data published by the competitor in the open press. The purpose of benchmarking is to support decision making at stages 10...12.
- Develop standards for each indicator obtained from the results of step 3. Three boundary points can be set as such standards for each indicator: the first point, characterizing the lowest level of quality that is still acceptable to the consumer, the second is the compliance point, which specifies the average value of the indicator of the totality of companies operating in a given market area (or the value of the indicator at which consumers stop complaining about the product or service) and the third point - the “leader level”, which is determined by the quality of functioning of the processes of the strongest competitors (or the value of the indicator at which complete customer loyalty is achieved ).
- Identify problems that arise during the implementation of this process. These include any shortcomings in the quality of process functioning in your organization, low efficiency in the use of resources. The list of problems should also include unrealized process opportunities, for example, any profitable products or services that are in demand in your market area, but which your company does not deal with.
- Develop a report based on the results of the analysis of problems arising during the implementation of the process. All problems must be classified and ordered in terms of their priority and significance. The report can be in text, tabular or graphical form, for example, in the form of an Ishikawa cause-and-effect diagram. The latter is preferable because diagrams allow you to develop and prioritize multi-faceted solutions.
- Offer a list of potential solutions. Using the results of the previous step, you should now brainstorm ideas for how to improve the process. Depending on the severity of the problem, there may be three ways to solve this problem:
- make a quick, intermediate decision that does not affect the main basic characteristics of the process with minor changes in the content of the process;
- improve the current process to a significant extent, but within the framework of the previous ideology;
- do the process again.
- Display a vision of the future state of the process. At this stage, possible changes to the products and services produced by the company should be identified and the degree of improvement expected to be achieved should be noted. The result of this step should be a “how it should be” or “to be” model.
- Prepare a list of initiatives needed to achieve the desired process state. At this stage, it is necessary to display what activities must be implemented in order to transfer the process from the “as is” state to the “to be” state. Each initiative should be described as a Process Change, a Means Change, an Organizational Change, or a combination of changes. The list of initiatives should be ordered according to two criteria: first by quality, i.e. in terms of importance for consumers, and then in terms of the time required to achieve results - at the top of the list should be activities that can be implemented faster.
- Conduct a preliminary analysis of initiatives in terms of their cost-effectiveness. The costs of each initiative and the extent to which the quality of the product or service will improve as a result of the initiative should be assessed. This can be done in several ways, for example, estimating the new net profit (NP) that the company will receive after changing the business process, or estimating the new ROI (Return On Investment). It should be taken into account that profit assessment should be carried out not for one business process, but for the company’s activities as a whole, in order to exclude initiatives when the optimization of some processes occurs at the expense of negative changes in other business processes. After estimating costs, the list of initiatives should be sorted again, this time according to the “cost-effectiveness” criterion.
- Prepare a report on the project as a whole, containing recommendations for process optimization. Based on the prepared report, appropriate changes are made to the process, or the process is created anew.
7 simple process optimization techniques:
Technique #1: Taking the IFR (ideal end result) beyond the scope of the process
To create an IFR that could be achieved not only through the implementation of the process, but also by all available means
Technique #2: Eliminating unnecessary steps from the process
It is necessary to consider the purpose of each step of the process, asking whether any steps can be eliminated or combined:
- Are there stages that duplicate each other? Is it possible to remove one of them?
- Are all stages of the process necessary for the main goal of the process, are there any that can be dispensed with?
- Which of the process steps are most significant for the successful completion of the process?
- Can these steps be moved closer to the beginning of the process?
The more advanced business processes are, the fewer requirements they place on employee qualifications. Processes and operations are fragmented, which leads to simplification of the process as a whole.
- Which operations in the process require the greatest qualifications of the performer?
- Is it possible to divide these operations into simpler operations so that the requirements for the performer are reduced?
Often in complex processes full of operations, the same performer performs all operations, which significantly delays the process and also significantly reduces its quality.
- Which operations in this process are the most energy-intensive?
- Can these operations be entrusted to other performers without compromising the process? Moreover, it is important to understand that operations can be entrusted not only to an employee of his own company, but also outsourced.
- What if in a given process operations that would be more expedient to combine in time and (or) space?
To assess losses (problems) you can use FMEA method:
- make a list of possible consequences (S) of each failure (problem/loss);
- obtain an expert assessment of each consequence, according to its severity, usually on a 10-point scale (10 corresponds to the most severe consequences);
- assess the likelihood of a consequence occurring (O) on a 10-point scale;
- assess the probability of detecting a failure and its consequences (D) on a 10-point scale;
- calculate for each the consequences of the risk priority coefficient - R (Risk Priority Number - RPN), where RPN = S x O x D;
- select failures (problems/losses) to work on;
- take measures to eliminate or reduce failures (problems/losses) with a high risk indicator;
- calculate a new risk indicator taking into account the developed measures.
All detected and studied failures are classified according to their degree of criticality, ease of detection and elimination, and frequency of occurrence. The main goal is to identify problems before they arise and begin to affect customers.
The higher the RPN, the more dangerous the violation and the more devastating its consequences. First of all, it is necessary to eliminate or reduce the risk in those with a higher value.
FMEA(abbreviation for Failure Mode and Effects Analysis, analysis of failure modes and consequences) - a methodology for analyzing and identifying the most critical steps of production processes in order to manage product quality.
According to the US military standard MIL-STD-1629 "Procedures for Performing a Failure Mode, Effects and Criticality Analysis", FMEA is a procedure that analyzes all possible errors in a system and determines the results or effects on the system in order to classify all errors relative to their criticality for the operation of the system.
The most well-known decision-making methods for optimizing business processes are brainstorming technologies, the nominal group method and benchmarking.
Brainstorm is a method of collective production of new ideas, developed back in the thirties of the last century. The essence of the method is to separate the process of putting forward ideas from the process of their critical evaluation and selection. The optimal number of participants in such a group is 5...10 people. The group must have a facilitator - a person who leads the group discussion process. He is both a generator and an analyst of ideas. The brainstorming process involves certain rules of work: no criticism; an atmosphere that is comfortable for all participants in the assault. The purpose of this event is to collect as many ideas as possible, even those that seem unrealistic. All ideas must be promptly recorded. For the second stage - analysis of the ideas put forward - specialists who did not take part in the generation of ideas are usually involved. As a result, a final list is compiled, in which only those decisions that are supported by the majority of participants remain.
Nominal group method, on the contrary, limits communication among group members. Each participant is provided with a complete description of the process and all the data for making a decision. Each group member puts his ideas on paper without discussion with colleagues. Then all group members take turns presenting their ideas to the whole group, strictly one idea at a time. Discussion is also not allowed here. And only after the presentation of ideas is completed, a group discussion, evaluation and selection of ideas takes place.
Benchmarking- This is a constant study of the best practices of competitors. The concept of benchmarking originated in the late 50s, when Japanese experts visited leading companies in the United States and Western Europe to study and subsequently use their experience. When preparing a list of initiatives necessary to achieve the desired state of the process being optimized, the competitive intelligence method can play an important role. Sometimes this method is also called the best practice method.
Although an individual approach is always used to optimize each business process, it is nevertheless possible to list the basic principles of business process reengineering, which in many use cases have led to positive results:
- horizontal process compression, when several subprocesses are combined into one;
- vertical compression of the process (giving employees greater powers and increasing the role of each of them);
- choosing another option for executing the process;
- transferring the process geographically to a more suitable location;
- reducing the number of checks and control actions;
- reduction in the number of approvals - a single point of contact is provided by one manager or automated system.
To determine cause-and-effect relationships between identified problems and their causes, you can use Ishikawa diagram(fishbone diagram, from English. Fishbone Diagram, also known as a “root cause analysis” diagram).
The diagram helps to identify the main factors that have the most significant impact on the development of the problem under consideration, as well as to prevent or eliminate the effects of these factors.
The problem is indicated by a main arrow. Factors that aggravate the problem are shown with arrows slanted to the main right, and those that neutralize the problem are shown with a slant to the left. When deepening the level of analysis, arrows of second-order factors influencing them can be added to the arrows of factors, etc. The figure below shows such an example with two levels of bones: the 1st level is indicated in red - the main (radical): a, b, c, d, and blue 2nd level - in-depth (detailed) causes (factors) of the studied influence on the result (among the 2nd level factors are those that enhance the effect of the 1st level - e, f, g, h , i, l, m, o, p, and those that weaken it - k, n). The key is to have three to six main categories that cover all possible influences.
Description of the optimized process
Model TO BE ("How it will be")
The TO BE model is created on the basis of the AS IS model with the elimination of identified deficiencies in the existing organization of business processes, as well as their improvement and optimization. This is achieved by eliminating the bottlenecks identified based on the AS IS analysis.
Visualization methods for the TO BE model are the same as for the AS IS model.
A common mistake in modeling is creating an idealized model. An example is modeling based on the knowledge of the manager, and not a specific performer of work. The manager is familiar with how work is supposed to be performed according to manuals and job descriptions, and often does not know how subordinates actually perform routine work. The result is an embellished, distorted model that carries false information and cannot be used for further analysis. This model is called SHOULD BE (As it should be).
Sometimes the current AS IS model and the future TO BE model differ very much and the transition from the initial state to the final state becomes not obvious. In this case, a third model is needed that describes the transition from the initial state to the final state, since such a transition is also a business process.
Planning and implementation of optimization measures
Implementation of the TO BE model
After identifying losses (“bottlenecks”), assessing deviations and their consequences, and developing measures to eliminate them, it is necessary to determine priority areas of change and determine implementation priorities.
First of all, it is necessary to identify measures that affect the quality of the product/service and are important for external consumers (clients), then identify measures that solve temporary losses in performing operations within the organization (and first indicate what is implemented faster).
To determine priorities, it is useful to identify the opinion of customers (what they want to receive) and how processes are organized among competitors, i.e. study the external environment, identify customer wishes that are not implemented in the studied processes of the AS IS model.
The initial task of implementing TO BE is to create a corrective action plan for the items and operations with the highest RNP scores and in accordance with the identified priorities.
The implementation plan contains the sequence of implementation of the developed recommendations to eliminate bottlenecks, indicating the deadlines, those responsible for implementation, and performers.
I recommend documenting the implementation plan for the TO BE model using MS Project (free version of Project Expert) or in the form of a “90-day Plan”, used in the “A3 Thinking” methodology for quick solutions, or for short-term implementations using the Scrum and Agile methodology.
- suitability (from the consumer's point of view);
- timeliness;
- accuracy and completeness;
- quality of interaction with the client;
- cost of costs, loss of time (costs of performing operations);
Plan in Project convenient to develop for tracking resource loads and automatically calculating deadlines and start-finish dates for sequential and parallel work.
90 day plan convenient to use for quick improvements, the implementation of which is designed for a 90-day cycle. The plan indicates actions, performers, implementation deadlines, results and status (in work or not yet started) for quick visualization of the real situation regarding the implementation of the plan.
