Solved by verified expert:Consider the following process and corresponding issue:In order to apply for admission, students first fill in an online form. Online applications arerecorded in an information system to which all staff members involved in the admissionsprocess have access to. After a student has submitted the online form, a PDF document isgenerated and the student is requested to download it, sign it, and send it by post togetherwith the required documents, which include:• Certified copies of previous degree and academic transcripts.• Results of English language test.• Curriculum vitae.When these documents are received by the admissions office, an officer checks the completenessof the documents. If any document is missing, an e-mail is sent to the student. Thestudent has to send the missing documents by post. Assuming the application is complete,the admissions office sends the certified copies of the degrees to an academic recognitionagency, which checks the degrees and gives an assessment of their validity and equivalencein terms of local education standards. This agency requires that all documents be sent toit by post, and all documents must be certified copies of the originals. The agency sendsback its assessment to the university by post as well. Assuming the degree verification issuccessful, the English language test results are then checked online by an officer at theadmissions office. If the validity of the English language test results cannot be verified, theapplication is rejected (such notifications of rejection are sent by e-mail).Once all documents of a given student have been validated, the admission office forwardsthese documents by internal mail to the corresponding academic committee responsible fordeciding whether to offer admission or not. The committee makes its decision based onthe academic transcripts and the CV. The committee meets once every 2 to 3 weeks andexamines all applications that are ready for academic assessment at the time of the meeting.At the end of the committee meeting, the chair of the committee notifies the admissionsoffice of the selection outcomes. This notification includes a list of admitted and rejectedcandidates. A few days later, the admission office notifies the outcome to each candidatevia e-mail. Additionally, successful candidates are sent a confirmation letter by post.MAIN ISSUE: Students have to wait too long to know the outcome of
the application (especially for successful outcomes). It often happens
that by the time a student is admitted, the student has decided to go to
another university.a. Apply the redesign heuristics in order to address the issues.b. Capture the resulting to-be model in BPMN (USE VISIO)c. Explain the impact of the changes you propose in terms of the performance dimensions (Time, Quality, Cost, Flexibility).
lecture8_redesign2.pptx
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Lecture 8 –Process Redesign
II
1
Process redesign
Process
identification
Process
Process architecture
architecture
Conformance
Conformance and
and
performance
performance insights
insights
Process
discovery
As-is
As-is process
process
model
model
Process
monitoring and
controlling
Process
analysis
Executable
Executable
process
process
model
model
Process
implementation
Insights
Insights on
on
weaknesses
weaknesses and
and
their
their impact
impact
To-be
To-be process
process
model
model
Process
redesign
Process redesign approaches
Exploitative Redesign (transactional)
• Doesn’t put into question the current process structure
• Seeks to identify problems and resolve them incrementally,
one step at a time
• Example: Heuristic redesign
Explorative Redesign (transformational)
• Puts into question the fundamental assumptions and
principles of the existing process structure
• Aims to achieve breakthrough innovation
• Example: Business Process Reengineering (BPR)
Heuristic process redesign
• Transactional: changes the “as is” process incrementally
• Inward-looking: operates within the scope and context of “as
is” process
• Analytical: based on redesign heuristics that strike tradeoffs
between:
•
•
•
•
Cost
Time
Quality
Flexibility
4
The Devil’s Quadrangle
Cost
Time
Flexibility
Quality
Flexibility
• Ability to react to changes in:
• Workload
• Customer demands and expectations
• Resource and business partner availability and performance
• Example: Following natural disasters (e.g. storms), the number
of home insurance claims increases by tenfold
• To address this surge, flexibility is required at:
• Resource level: Staff redeployment, faster performance
• Process level: Performing tasks differently to speed up the front-end
• Management: Relaxing business rules and controls where possible
Redesign heuristics
Task-level
• Task elimination
• Task composition
• Triage
Flow-level
• Re-sequencing
• Parallelism enhancement
Processlevel
•
•
•
•
Specialization & standardization
Resource optimization
Communication optimization
Automation
7
Task-level redesign heuristics
1. Task elimination
2. Task composition and decomposition
3. Triage
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H1. Task elimination
• Eliminate non-value-adding steps wherever these can be isolated
• Forward, send, receive, …
• Consider reducing manual control steps (checks & approvals) by:
• Skipping them where feasible
• Replacing them with statistical controls
• Partially or fully automating them
+ Statistical
Control
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H1. Task elimination
• Consider trade-off between the cost of the check and the cost
of not doing it
• Examples:
• Procure-to-pay process: Some types of employees are empowered to trigger
isolated purchases below $500 without supervisor approval
• Order-to-cash process: Invoices from trusted suppliers under $1000 are not
checked on a one-by-one basis
(T+, C+/-, Q-)
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H2. Task composition
• Consider composing two tasks to eliminate transportation and
reduce “context switches”
• Or splitting a task into two and assign to separate, specialized
resources
H2. Task composition and decomposition
• Composition example:
• Procure-to-pay process: Merging two checks: “necessity of purchase check’’ and
“budget check’’)
• Decomposition example:
• Make-to-order process: Separate a single thick “prepare quote” task into
“prepare bill of materials”, “prepare production plan” and “estimate costs and
delivery time”
Composition: (T+, C+/-, F+)
Decomposition: (T-, C+, F-)
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H3. Triage
• Specialize a task: divide a “general task” into two or more
alternative tasks
• Generalize tasks: integrate two or more alternative tasks into
one general task
H3. Triage
• Specialization example:
• Procure-to-pay process: Separate approvals of “small purchases”, “medium-sized
purchases” and “large purchases”
• Generalization example:
• Make-to-order process: Integrate “quote preparation for two product lines into
one single task
Specialization: (T+, C+/-, F-)
Generalization: (T-, C+/-, F+)
14
Flow-level redesign heuristics
1. Re-sequencing
2. Enhance parallelism
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H4. Re-sequencing
• Re-order tasks according to their cost/effect ratio to minimize
over-processing
• Postpone expensive tasks that may end up not being necessary until the end
• Put “knock-out checks” first in order to identify problems early
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H4. Re-sequencing
• Examples:
• Make-to-order process: If “prepare production plan” is time-consuming,
postpone it until after the quote price has been tentatively accepted by the
customer
• Procure-to-pay process: If “necessity of purchase check” leads to 20% of knockouts and “budget check” leads to 2%, check “necessity of approval of purchase
check’’ first
(T+,C-)
17
H5. Enhance parallelism
• Parallelize tasks where possible in order to reduce cycle time
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H5. Enhance parallelism
• Examples:
• Procure-to-pay process: Parallelize “budget approval” and “necessity of purchase
approval”
• Make-to-order process: After “prepare bill of materials”, perform “prepare
production plan” and “estimate costs” in parallel
(T+,C-)
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Process-level redesign heuristics
6.
7.
8.
9.
Process specialization and standardization
Resource optimization
Communication optimization
Automation
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H6. Process specialization/standardization
• Process specialization
• One process is split into multiple ones: by customer class, by geographic location,
by time period (winter, summer), etc.
• Resources are split accordingly
• Process standardization
• Two processes are integrated
• Resources are pooled together
H6. Process specialization & standardization
• Specialization example:
• Procure-to-pay process: One process for materials purchasing and one process
for MRO (Maintenance, Repair and Operations) purchasing
• Claims handling process: One claims handling process for the “storms” season
(peak) and one for the regular season.
• Standardization example:
• Claims handling process: Integrate claims handling for motor insurance and
personal insurance.
Specialization: (C+, Q+/-, F-)
Standardization: (C-, Q+/-, F+)
H7. Resource optimization
• Use resources of a given type as if they were in one room
• Avoid one group of people overloaded and another (similar) group idle
• Let people do work that the are good at
• However, avoid inflexibility as a result of specialization
• When allocating work to resources, consider the flexibility in
the near future
• Allocate work to specialized resources first
• Avoid setups as much as possible
• Chain multiple tasks where possible
• Batching
H7. Resource Optimization
• Resource integration:
• Claims handling process: Share resources across different types of claims (e.g.
motor and personal insurance).
• Batching:
• Claims handling process: Batch all claims for a given geographic area and assign
them to the same resource.
(T+, C+, F+/-)
H8. Communication optimization
• Automate handling, recording and organization of messages
• Monitor customer interactions, record exceptions
• Optimize
• Number of interactions with customers and business partners
• Timing of interactions
• Type of interaction (synchronous vs. asynchronous)
(T+,Q+,C+/-,F-)
H8. Communication optimization
• Optimize number of interactions
• Gather sufficient information to get to the next milestone
• Optimize the type of interaction
• Synchronous interactions effective to resolve minor defects
• Asynchronous to notify, inform, resolve major defects, request additional
information to reach next milestone
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H8. Communication optimization
Optimize timing of interactions:
• Back-loaded process: Bulk of information exchange and
processing happens downstream
• Prescription handling at CVS Pharmacy in early 2000s
• Front-loaded process: Bulk of information exchange and
processing happens upfront
• Complete-kit concept
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H8. Communication Optimization
• Complete-Kit Concept
• “Work should not begin until all pieces necessary to complete the job are
available”
• Principles for complete-kit process design:
• Provide complete and easy-to-follow instructions for those who will initiate the
process.
• If a process cannot start, the client should be notified of all defects that could be
reasonably identified at the onset of the process.
• Consider the tradeoff between “incomplete-kit” process initiation vs. roundtrip
to revise and resubmit a request
H9. Automation
• Use data sharing (Intranets, packaged enterprise systems) to:
• Increase availability of information to improve visibility and decision-making
(subject to security/privacy requirements)
• Avoid duplicate data entry and transportation
• Use network technology to:
• Replace physical flow (e.g. paper documents) with information flow
• Enable self-service via e.g. online forms and Web data services
H9. Automation
• Use tracking technology to identify and locate materials and
resources
• Identification: Bar code, RFID
• Location: GPS, indoor positioning
• Use business rules technology to automate information
processing tasks (incl. decisions)
• Automate end-to-end processes
(T+,C+/-, Q+/-, F-)
Classwork – Equipment rental process
Redesign heuristics
Heuristic 1
• I1. Eliminate request approvals for small equipment
• I2. Replace approval with empowerment & stat. controls
Heuristic 2
• I3. Compose equipment selection, availability check and
rental request creation
Heuristic 6
• I4. Separate process for small vs. large equipment,
streamline “small” process
Redesign heuristics
Heuristic 8
• I5. Inform site engineer when equipment
dispatched
• I6. Ask site engineer if extension required
Heuristic 9
• I7. Use self-service for equipment search and
availability checking
• I8. Use process automation to coordinate
handovers
Consolidation: PICK chart
Impact
BIG
payoff
Implement
EASY
to implement
I2:
Stat
control
SMALL
payoff
Possible
I1:
Eliminate small
Difficulty
I3:
Compose
Challenge
HARD
to implement
Kill
I7, I8:
Automate
I5, I6:
Inform
I4:
Specialize
Redesign output: to-be process model
…
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