Chapter 14 - Process redesign Flashcards
Why would an organisation seek to improve their processes?
- Reduce costs
- Offer better products to be more competitive
- Exploit opportunities of technology e.g. cheaper communication
- Execute new strategic direction
Define gap analysis
Project team assesses organisation’s current position and processes and highlights gap between current state and target state
Define business case
A proposal setting out supporting recommendation
What does Harmon’s process-strategy matrix do?
Uses axes of ‘process complexity and dynamics’ and ‘strategic importance’ to categorise processes and find the best approach to improving them.
Define ‘process dynamics’ in relation to Harmon’s process-strategy matrix
The extent to which the process is subject to adjustment in response to external stimuli
What are the different categories in Harmon’s process-strategy matrix?
- High complexity, low importance - outsource
- High complexity, high importance - improve
- Low complexity, low importance - automate/outsource
- Low complexity, high importance - automate
Define a process redesign pattern
A general approach to redesigning processes for their improvement
Define re-engineering
Starting with a clean sheet of paper
What are the characteristics of process re-engineering?
- Radical re-design that questions all assumptions
- Can achieve large scale improvements
- Highly disruptive
- High risk of failure
What are the different process re-design options?
- Re-engineering
- Simplification
- Value added analysis
- Gaps and disconnects
Define simplification
Eliminating redundant process elements - most process have elements of duplication
Define value-added analysis
Eliminating activities that do not add value - similar to lean production
What are the activities defined by Harmon as non-value-adding?
- Preparation and set-up activities
- Control and inspection activities
- Movement of a product
- Activities that result from failure
Define value-enabling activities
Essential preliminaries to value-adding activities
Define gaps and disconnects
Target problems at departmental boundaries - problem with many processes is due to failures of communication
What are the different areas that need to be assessed when assessing feasibility of a process?
- Technical feasibility - innovation required, is technology developed enough?
- Social feasibility - training, staff redundancies, work patterns
- Environmental concerns
- Financial feasibility - cost-benefit analysis
What are the advantages of having a process redesign methodology?
- Provides discipline for overall redesign - keep focus
- Successful implementation depends on acceptance by staff and managers - helps obtain support
What are Harmon’s process redesign methodology phases?
Peter And Ryan Drive Trucks
- Planning - detailed project plan with time and cost budgets, process redesign team identified
- Analysis - documentation of existing processes using process diagrams, problems identified
- Redesign - solutions are chosen, management roles designed, new design documented
- Development - functional and resource implications followed through
- Transition - process is implemented
