W12 - Process Redesign(3) and Implementation

Source/Reference:

The 10 Biggest Tech Failures of the Last Decade

http://www.time.com/time/specials/packages/completelist/0,29569,1898610,00.html

Top 10 Corporate Information Technology Failures

http://www.computerworld.com/computerworld/records/images/pdf/44NfailChart.pdf

Can Storage Consolidation Cut Your Costs While Increasing Productivity and Efficiceny?

Sun microsystem 2004

http://www.cbinews.com/uploadfile/whitepaper/Sun20051125.pdf

Subject:

Review: Process Redesign (3) and Implementation, focus on IT integration

What is IT Integration and why?

        IT Integration is the process of combining multiple data processing points. There are many  different reasons of IT Integration. For example:
To efficiently retrieve it if needed for regulatory or legal reasons; to keep information secure from theft or tampering; to quickly make storage resources available when needed for new applications; Improving consistency of service; reducing transaction cost.......

Review of “IT Integration Options for BPR”

In the evolution of IT Platform, it is mainly divided into 5 phase. It includes custom Application development, Workflow engines enterprise application integration, Specialized e-process Automation software and XML-based Process integration suites.

Custom Application Development

For the custom Application development, it is about integrating new processes into enterprise IT architectures. Enterprises can always have their own piece of application software. Customization is very common. In this application, core functionality is emphasized as opposed to integration.

Operation of a Workflow Engine

This engine has its own database and automated business process execution. A workflow system can be constructed.

Enterprise Application Integration

The Enterprise Application Integration (EAI) have its own software which produced by the manufacturer. It delivers different ERP for different Supplier. By EAI a company can share the data and business processes without restriction.  It allows a company to integrate without major changes to the current infrastructure.

Specialized E-process Automation software

Specialized E-process Automation software can be regarded as the versions which add some internet factors. A corporate intranet is provided. It provides email and security functions and a user interface.

XML-based process integration

The final phase is the XML-based process integration. It is marks up a document with user-defined tags. XML act as a vehicle to make Plug- and- Play seamless connectivity between the processes of carious enterprises.

 Failure in IT

        IT integration is not always rosy at all. Changing the existing system may cause serious problems and cost much to enterprises. There are some companies failed in IT and hence suffered from financial loss and damage. Interestingly, one example is Window vista which is wildly recognized, but failed to deliver improved security and run slowly compared to Window XP.

The List of Time Specials

Tech Malfunction

Microsoft Vista

Gateway

HD DVD

Vonage

YouTube

Sirius XM

Microsoft Zune

Palm

Iridium

Segway

http://www.time.com/time/specials/packages/completelist/0,29569,1898610,00.html  

http://www.computerworld.com/computerworld/records/images/pdf/44NfailChart.pdf

How to avoid failure? Consolidation Best Practices

        After I searched through internet, there is an article listing the practices avoiding failure in the last page. They are:

1.      Get executive-level support

 

2.      Agree on the business goals

3.      Proactively address company politics and realities

4.      Establish service level agreements

5.      Standardize wherever possible

6.      Perform extensive planning and documentation

7.      Allocate appropriate time, skills and resources to the effort

8.      Train the IT staff on managing the consolidated environment

9.      Develop new applications for the consolidated environment

 

10. Get help from an experienced vendor, if possible

       Clearly, projects without support will never success. Some staffs may need to give up their responsibilities and therefore will not support the project. Thus, companies should gain support from them to avoid failure. One way to gain the support is letting the staff members to understand the business goal. Nobody would support a plan without knowing the use of it. Also, one reality is that other departments (not IT department) may not think IT integration is important. It needs to be addressed. Moreover, service should be provided to staff as they may not adopt the change. Enough Resources and training should be provided to the project. Lastly, new applications and standard are needed in new environment.
 

W13 - Redesign Supply Chain Processes

Source/Reference:

SUPPLY CHAIN RE-ENGINEERING: A CASE STUDY David Newlands, Catholic University of Lille, 2003

http://www.littoralis.info/iom/assets/200302_18.pdf

Subject:

Review : Redesign Supply Chain Processes and case study

Introduction

        In this lecture, redesign supply chain processes is taught. Supply chain is the flow of materials, information, money, and services from raw material suppliers through factories and warehouses to the end customers. Supply chain processes include more than one company, so it is different from normal business process. There are five steps of redesign. They are:

1.Scoping the supply chain process

2.Identifying the e-business PIPs

3.Designing the To-Be PIPs

4.Estimating expected impacts      

5.Agreeing on & disseminating the specification:

After searching extra material through internet, I found a case study of supply chain re-engineering. Here I would briefly introduce the case study, and what message is sent through the article.

The case study

        Alpha Co. is an assembler attempting to set up and optimize a new supply chain in UK. The principle sub-contractor is a molding company called Plastic Parts Ltd (PPL). PPL is a British subsidiary of Nordic Plastic Parts(NPP). NPP would have been a superior supplier due to proximity to the final assembly plant.

PPL and its supply chain were analyzed. Three sub-contact companies added values to components in PPL supply chain. The components flows are shown as the following:

 

        In the process, PPL sold molded parts to the painter. Then the painter sold on the remainder either back to PPL(material W,Y&Z) or on to Special Paint(material X). Special Paints would add their value then sell the parts on to Liquid Gaskets. It was a “purchase – add value – sell” type supplier networks. Also, it was expected that the suppliers would order the volumes required by the next company in the chain.

        Clearly, there are many flaws in this process. The complexity of the process created a lack of production synchronization. There are four independent companies which cause the lack of co-ordination between the independent companies. All of them would not accept the cost of inspecting. The material X in the process holding up the whole production in the process

        There is one intermediate solution shown as following:

        In this solution, PPL takes the responsibility of inspecting after each company complete the value-adding operations. However, This situation lead to restricted production volumes. To avoid this, a simplified supply chain is developed, the percentage of the value-added of Nordic Plastic is increased. This strategy aimed to simplify batch tracking and clearly assign accountability.

Message of this case study

        The most important message of the case is that never do the “purchase – add value – sell” type supplier networks. Supply chain should be started and finished by the supplier as they can make a profit from their initial sales to their supply chain customer. “Purchase - add value- sell”¦ supplier networks focus on transactions rather than on flow of goods through the whole supply chain. Profit can ensure quality, tracking batches and reducing costs.Minimising the number of suppliers involved increases purchasing function’s concentration on those important relationships.

W11 - Redesign Principles and Tactics (2)

Source/Reference:

“eStrategy for Development Principles & Tactics - Examples in PR” by Dr A. Albadvi 2004

http://www.moe.org.ir/_ICT/Documents/Session6-7%20BPR%20Basics.pdf

 

Subject:

 

Review : Redesign Principles and Tactics(2)

Response:

 

        In the last lecture the principles of restructuring and informating the process are introduced. This lecture I have learned the remaining principles of minding the process.

Minding the process

           These principles is about changing the knowledge management around processes. Before talking those principles, maybe we should know what knowledge management is. In fact, we can just consider knowledge management as the ability to manage “knowledge”. It means that knowledge is a resource type just like information and any other resource types. By applying those principles, companies can have better use of knowledge to facilitate business process

Principle #8: Analyze and synthesize

     

This principle aims to enhance the interactive analysis & synthesis capabilities around a process to generate value added. As a result, both the executors and the customers of process become more knowledgeable. Business which needs to give advice to customers should be familiar with this principle. One example is Merrill Lynch, which is a financial management and advisory companies, providing financial advice and investment banking services.

Principle #9: Connect, Collect & Create

     

This principle aims to capture intelligent & reusable knowledge around the process through all who touch it. As I mentioned above, “knowledge” is considered a resource type so that a way to connect, collect and create it is required. There are many companies apply this principle by providing Frequently Asked Question and suggested answer in their website.

Principle #10: Personalize  

This principle aims to make the process intimate with the preferences & habits of participants. There are many companies using the principles. I can immediately think of an example of this principle. Every time I go to YouTube It will recommend video according to my preferences. Clearly, it is an example which YouTube offer personalized service to me.

Conclusion

        Minding the process allows companies to change knowledge management around processes. It is so important to today's Information Age. Companies are not only to make profit, but also to create value to customers. By applying those principle, business can surely have better performance to customer.

W10 - Redesign Principles and Tactics (1)

Source/Reference:

“eStrategy for Development Principles & Tactics - Examples in PR” by Dr A. Albadvi 2004

http://www.moe.org.ir/_ICT/Documents/Session6-7%20BPR%20Basics.pdf

Subject:

Review : Redesign Principles and Tactics(1)

Rsponse:

        In this lecture, I have learned the redesign principles and the tactics. It is important as principles and tactics can be used as a checklist to suggest ways and trigger ideas. Before introducing what they are, let us first see the driving assumptions of those principles.

There are 3 driving assumptions of redesign principles and tactics:

        -Maximize the value adding content of a process

        -Manage non-value adding activities

-Minimize everything else such as waste, valueless complexities.

These Assumptions allow us to expect what to be occur after redesigning process.

There are also 3 types of redesign principles and the tactics:

-Restructuring the process - Restructuring and reconfiguring the process

-Informating the process - Changing the information flows around the process

-Minding the process - Changing knowledge management around the process

       

         Only the first 2 type of principles and tactics are introduced in this lecture. The minding type would be included in the next lecture.

Principle #0: Streamline

This is the principle of removing waste, simplifying and consolidating similar activities. The principle is the most fundamental one.

Restructuring

Principle #1: Lose Wait

The principle is to reduce waiting time in process links to create value. There are 5 common tactics:

 

Concurrency

        This tactic aims to design time-sequential activities to be executed concurrently. The partitionable tasks can be broken down into components and completed in parallel by using this tactics. Also it can avoid the communication losses. It can be used by providing groupware or database with multiple parties work.

 

Closed-Loop

        For closed- loop, it is to create closed-loop teams for quicker flexible interaction. By using this tactics, integration and coordination would be improved with the people needed to complete the process

Not Gating Main Process

        The third tactic requires a company not allowing a support activity or management activity to delay a core value adding process. After implementing the tactic, efficiency of the process would be improved.

Continuous Flow

 

This requires the company to design for continuous flow rather than stop-start batches. Efficiency would be improved such as the figure shown.

Upstream Relieves Downstream

        The last tactic aims to modify upstream practice to relieve downstream bottlenecks.

Principle #2: Orchestrate

This means letting the swiftest and most able enterprise execute. Of course there are different areas in a business. Letting expert to perform different areas is one clever way to improve efficiency. There are 4 common tactics:

 

Partnering

 

Partner is a process with another enterprise, which means cooperate with it to complete a process.

Outsourcing

Outsource a process to another enterprise, which means getting service from other companies. One example is the HK government, which outsources the cleaning service to private companies.

 

In-sourcing

Insource a process back into the enterprise. Insourcing is the opposite of outsourcing, which means the delegation of operations or jobs from production within a business to an internal entity that specializes in that operation.

Routing through an intermediary

Route the process through an intermediary. One example is Chemdex, which is the middleman that brings together buyers and sellers.

 

Principle #3: Mass-customize

This principle is to flex the process for any time, any place, any way. There are 4 common tactics:

Flexing Time & Space

They means flexible accessible by expanding the time window for the process, and flexible access by creating more options for the physical space in which the process is executed. To achieve these tactics, online purchasing system can be created.

Modularity & Dynamic Customization

Modularity aims to create modular process platforms, which break a process into modules. Dynamic Customization enables dynamic customization of product offerings. For example, Dell Corporation allows different process outcomes to be generated through a common process platform. It is suitable for highly customized or low volume products.

Principle #4: Synchronize

This principle aims at synchronizing the physical & virtual parts of the process. There are 3 common tactics:

Match Offering

 

It means that the offerings on the physical and virtual parts of the channel should be matched. Therefore, the online shop should be similar as the physical shop.

 

Common Process Platforms

It is to create common process platforms for physical and electronic process. To achieve this, company should have integration between the online and offline stores.

Track Movement

        It tactic aims to allow business tracks the movement of physical products electronically.

Informating

Principle #5: Digitize and Propagate

        This principle aims to capture information digitally at the source & propagate it throughout the process. There are 4 common tactics:

Digitize at source

The data entry work should be shifted to customers. Thus, the work of staff members would be reduced.

Make the process paperless

Companies should make the process as paperless as possible and as early as the they can. One example is Microsoft.

 

Make information accessible upstream and downstream

This tactic aims to make the information easily accessible upstream and downstream to those who need it throughout the business process. Using EDI in order process is an example.

 

Shrink the distance between the information and the decision

 

Process can be executed more much faster by redesigning the information capture and access, so that information needed for decisions in the process is directly accessible.

Principe #6: Vitrify

 

This principle provides glass like visibility through fresher & richer information about the process. There are 3 common tactics:

On-demand information tracking

On-demand tracking information services for customers of the process should be provided by a company

On-the-fly reporting and analysis

 

        It is the capabilities that provide on-the-fly analysis. Rapid feedback about process is avaiable.

 

Standard partner interface

 

Companies should design standard partner interface processes for seamless exchange of information

Principle #7: Sensitize

 

This principle requires that process should fit with sensors and feedback loops to prompt action. There are 2 common tactics:

Process dysfunction loop

This tactic can be achieved by building in customer feedback loops to detect process dysfunction. For example, a company can create a discussion forum for customers, which allows customers to discuss everything about the company.

Monitor environmental change

This tactic aims to require company to enable software smarts which trigger quick business reflexes. Also, environmental probes monitoring change should be attached.

Conclusion

There are so many principles for every enterprise to improve their business performances. In fact, the reason why companies should apply those principles is that the old methods are not suitable for today’s business environment anymore.

                  In my thinking, different principles aim at different objectives, but they are all the tactics which help the company to survive in today’s business world. For example, “Mass customization” is the method replacing mass production, which is no longer suitable for the rapidly evolving markets in the internet. Also, “lose wait” reduces the wait time of customer which matches today’s “fast food culture” requiring fast in every aspect. “Orchestrate” just like the division of labor based on specialization. “Synchronize” can help to manage the physical and virtual parts of business. “Digitize and Propagate” is the trend of today’s information world helping business to manage information, while “Vitrify” helps customers to track their information on-demand. Lastly, “Sensitize” makes companies to be sensitive to the change of business environment.

               Although there are many advantages of these principles, companies should aware their own business nature and prioritize these principles in order to make a best use in business redesigning process.