PROCESS INNOVATION

By:-Kriti Mathur- 76

Abhishek Kumar- 85Nishant Tyagi- 86

Manisha Shrestha- 95

What Is Process?

A Process is combination of facilities, skills and technologies that are used to produce products or provide services.

What is Process Innovation?

Process innovation combines adopting a process view of business functions with the application of new ideas and technology.

Process innovation depends on the transfer of knowledge and information.

For improving productivity.

Increase employee job satisfaction.

Deliver enhanced product or service value to the customer.

For controlling and reducing process wastage.

For controlling and reducing work in process inventories.

For reducing processing time & costs.

Need For Process Innovation?

Process innovations builds an adaptive business process management system (BPMS).

For manufacturing companies.

For service companies.

Focus

Steps in Process Innovation

Successful process innovation requires the following:

Proper Planning.

Creating a multifunctional team of Technical, Production and Maintenance Department.

Continued…

Selecting a small group of operators and workers, seeking their participation in process innovation through communication, counselling, training and rewards etc.

Pilot run of the new process. Observations and improvements. Large scale training of entire work force. Commercial use of new Process.

Attributes of Innovative Processes

1. Elimination or decrease in manual processes.

2. Coordination of processes across distances.

3. Change of process sequence; allow parallel processes.

4. Capturing process information to understand process better.

5. Improved analysis of information and decision making.

6. Capture and distribute organizational information.

7. Monitoring process status.

8. Coordination of tasks and processes (cross functional).

Tools For Process Innovation 

Developing Assembly Charts for studying conceptual framwork of material flow .

Developing Process Charts for studying conceptual framwork of process flow.

Computer Aided Designing (CAD), Computer Simulation.

Time Study for comparing time taken for various operations and tasks.

Value Engineering and Analysis.

Business Process Reengineering.

Benchmarking.

Using Change Management Strategies.

Financial Appraisal.

Innovation Strategies

Automation1. More web information.2. Improve IVR service.3. Increase self-service.4. Reduce access to files.

Process Sequence1. Parallel processing.2. Virtual linkages.3. Simultaneous entry

and review.

Geographic1. Multiple sites on

campus.2. Coordination with other

departments.

Tracking1. Transaction volume.2.Document management.3. Priority processing.4. Transaction type.

Continued…Integration

1. Coordination of activities.2. Policy and process

alignment.3. Scheduling and planning.

Information1. Process cycle times.2. Peak processing.3. Customer profiles.

Analysis1. Management

Information.2. Scheduling,

staffing, process design.

Knowledge1. Knowledge Management.2. Standard operating

procedures.3. Regulation and statutory

changes.

Techniques Of Process Innovation

1. BPR

Business process re-engineering is also known as business process redesign, business process change management.

Business process re-engineering (BPR) is a technique by which organizations fundamentally rethink how they do their work in order to dramatically improve customer service, cut operational costs, and become world-class competitors.

It is more than just business improvising.

A key stimulus for re-engineering has been the continuing development and deployment of sophisticated information systems and networks.

Continued… Reengineering assumes the current process is largely

irrelevant - it shall not work on future, it's broke, forget it. Start afresh. Such a clean slate perspective enables the designers of business processes to disassociate themselves from today's process, and focus on a new process.

Reengineering starts with a high-level assessment of the organization's mission, strategic goals, and customer needs

Re-engineering identifies, analyzes, and re-designs an organization's core business processes with the aim of achieving dramatic improvements in critical performance measures, such as cost, quality, service, and speed

Continued…

2. TQM

Total: Make up of the whole. ……. Quality: Degree of excellence a product or service provides. …… Management: Act, art, or manner of handling, controlling, directing, etc.

Therefore, TQM is the art of managing the whole to achieve excellence. TQM is defined as both a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization.

It is the application of quantitative methods and human resources to improve all the processes within an organization and exceed customer needs now and in the future.

TQM integrates fundamental management techniques, existing improvement efforts, and technical tools under a disciplined approach.

Advantages of TQM Encourages a strategic approach to

management at the operational level Provides high return on investment through

improving efficiency Works equally well for service and

manufacturing sectors Allows organizations to take advantage of

developments that enable managing operations as cross-functional processes

Fits an orientation toward inter-organizational collaboration and strategic alliances through establishing a culture of collaboration among different departments within organization

Diff between BPR vs TQM Approaches

Davenport points out that the Major difference between BPR and other approaches to organization development (OD), especially the continuous improvement (Kaizen) or TQM movement, is: “Today firms seek not fractional, but multiplicative levels of improvement – (10times) rather than 10%.”

Continued… Johansson provides a description of BPR relative to other

process-oriented views, such as TQM and JIT as under:

"Business Process Reengineering, although a close relative, seeks radical rather than merely continuous improvement. It escalates the efforts of JIT and TQM to make process orientation a strategic tool and a core competence of the organization. BPR concentrates on core business processes, and uses the specific techniques within the JIT and TQM ”toolboxes” as enablers, while broadening the process vision."

3. Lean Production System

It is the western term for Toyota Production System. This production philosophy is now widely used in auto industry around the world. This system has been modified everywhere in the auto industry, adapted to some extent on the local industrial situation or practices, however its core principles remain the same. This system is not only used in auto industry but also in other non-auto industries involved in assembling process.

Benefits of Lean Production System

Waste Reduction. Production Cost Reduction. Manufacturing Cycle

Reduction. Labor Reduction. Inventory Reduction. Production Capacity Increase.

4. Kaizen

Japanese strategy for continuous improvement

Not a single day should go without any improvement

Customer driven strategy for improvement

Quality first, not profit first Consists of two major components

Maintenance Improvement

Benefits of Kaizen

Reduces Waste. Improves. Immediate Results.

5. 5S Concept

Refers to the five words: Seiri. Seiton. Seiso. Seiketsu. Shitsuke .

6. Six Sigma Six Sigma focuses on making

improvements in all operations within a process, producing results more rapidly and effectively.

EXAMPLES OF PROCESS INNOVATION 1. The Float Glass process developed by Alistair

Pilkington, in which plate glass is manufactured by drawing glass out across a bed of molten tin (Quinn, 1991). Prior to the introduction of this process innovation, plate glass used for shop windows and office windows was expensive and of poor quality largely because the only way of getting a flat surface was to grind it and polish it. The Float Glass process at a stroke eliminated the need for time consuming grinding and polishing it, leading to a dramatic fall in costs. The result can be seen in the public buildings constructed in the last thirty years, where everything from office blocks and hotels to airports and shopping malls now employ large expanses of glass

Continued…2 .Precision Ring Makers (PRM) made components

to high specifications,largely for the aircraft industry. Its main development work was focused upon process improvements. It had developed low cost tooling techniques which resulted in great savings: for example, tooling changes for thin guage shims using conventional techniques cost about £4000, while with PRM’s technique the cost was about £30. It had purchased CNC machines for milling and engraving, and was planning to network the CNC machines to its computer system so that programmes could be transmitted directly to production.

Continued…3. The humble photocopier, developed by Chester

Carlson, may not sound like a spectacular innovation, and yet it had a big impact on the way in which administrative systems in offices are organised.

4.Fabrication and Assembly Company (FAC) was primarily interested in welding technology. A recent example of process improvement was the application of plasma cutting instead of drilling, in the manufacture of heat exchangers and plates. A flushing system to prevent the build-up of sludge in the air chambers of the water tables which were being manufactured, was also developed to assist the introduction of plasma cutting.

Thank You