Lecture 10: Redesign Principles and Tactics (1)

Source / Reference:

1.    “Business Process Reengineering – Concepts and Case Study” By Sunil Thawani

http://www.qualitywaves.com/Articles%20about%20Process%20Reengineering/BPR%20UOW.pdf

2.    “Customer Relationship Management (CRM)” By Dr A. Albadvi

http://sharif.edu/~albadvi/Crmses4.pdf

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Response:

In this lecture, Helen has introduced the three types of principles and tactics of redesign for us:

l   Restructuring the process

l   Informating the process

l   Minding the process

But we mainly focused on restructuring the process and informating the process on this lecture. There are four principles involved in restructuring the process and three principles in informarting the process.

Restructuring the process

#	Principles	Tactics
1	Lose Wait	Ø  Redesign time-sequential activities to be executed concurrently Ø  Create closed-loop teams for quicker flexible interaction Ø  Do NOT allow a support activity to gate a core value-adding process Ø  Design for continuous flow rather than stop-start batches Ø  Modify upstream practice to relieve downstream bottlenecks.
2	Orchestrate	Ø   Partner a process with another enterprise. Ø   Outsource a process to another enterprise Ø   Insource a process back into the enterprise. Ø   Route the process through an infomediary.
3	Mass-Customize	Ø   Flex access by expanding the time window for the process. Ø   Flex access by migrating the physical space in which the process happens. Ø   Create modular process platforms. Ø   Push customization to occur closest to the customer. Ø   Enable dynamic customization of product offerings.
4	Synchronize	Ø   Match the offerings on the physical and virtual parts of the process. Ø   Create common process platforms for physical and electronic processes. Ø   Track the movement of physical products electronically.

Informating the process

#	Principles	Tactics
1	Digitize and Propagate	Ø   Shift data entry to customers and digitize it. Ø   Make the process as paperless as possible as early as you can. Ø   Make information more easily accessible upstream and downstream to those who need it. Ø   Shrink the distance between the information and the decision.
2	Vitrify	Ø   Provide on-demand tracking information for customers of the process. Ø   Provide reporting capabilities that provide on-the-fly analysis. Ø   Design standard partner interface processes for seamless exchange of information
3	Sensitize	Ø   Build in customer feedback loops to detect process dysfunction. Ø   Enable software smarts to trigger quick business reflexes. Ø   Attach environmental probes to the process to monitor change.

Case Study

In real life, many companies have applied the above principles to their redesign process.

First case is about Ford Motor Company, which is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903

Ford has successfully implemented several principles in restructuring and informating the process. The detail will be shown below:

#	principle
0	Streamline	Process required time is less as the head count has been decreased substantially about 75%.
1	Lose Wait	The new process uses an Electronic Data Interchange (EDI) for transfer of purchasing orders, payment notices and other standard business documents .Therefore, the new centralized approach enables multiple parties work on the same information at the same time.
3	Mass-customize	Ford’s database is being operated in 24 hours. Employees can utilize the information if necessary.
4	Synchronize	It use of centralized database towards the physical and virtual process platform.
5	Digitize and propagate	New database and working system are requiring less human effort while preventing human errors and reducing process cycle time. Less paper work is required.
6	Vitrify	The authorized staffs of Ford can now track the information by accessing the database.

Second case is about Pizza Hut. It has adopted online order system for customer to order their food for delivery. When customers ordering food online, the organization can easily capture the preferences of customers on the food, it can help the organization have analysis on the population of their products in order to understand their customers more and think about the marketing strategy which has apply. The system can also reduce the waiting time for ordering the food because customers can know all the products and discount from the website rather than asking employees one by one.