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Key Services
- Process Reengineering and Lean
Methods (XeP3)
- Productivity Improvement and Operational
Excellence
- IT–Based Transformation
- Restructuring
- Change Management
- Compliance Assessments
- Measurement and Target Setting
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Our experience
during challenging
times has shown us the common
elements to an intelligent response
are:
- Eliminate non-core
activity (where is staff time really
spent?);
- Reduce waste
in essential processes (do them well);
- Restructure
for lower volumes (right size);
- Reduce complexity (keep
it simple);
- Modulate service
levels (right service);
- Eliminate strategic
noise (looks promising, but
is it a leadership distraction?);
- and Remember
the basics (I would imagine you are
all looking over your cost
lines right now).
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6 Fundamentals for
Successful Implementation
- Provide leadership and support
- Provide
adequate resources
- Provide the right
tools
- Establish real targets
- Build momentum
- Praise widely and
communicate, communicate, communicate….
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As the world changes
around organisations they must adapt
or performance will suffer
- Customer needs change
- Supplier power changes
- Technologies changes
- Input prices change …
As the environment changes organisational
processes and structures
become misaligned with today’s reality
- Some teams are over-loaded
- Others are over-resourced
- Processes start to atrophy over
time
- Ability to meet current customer
needs deteriorate
- Ability to deliver services
in a “lean” fashion
declines
- Under-utilised managers can “create
work” which actually gets in
the way.
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Low-velocity cycle
times and slow customer response times
can add cost, irritate customers and
frustrate staff. You can find low-velocity
activity in every human endeavour from
hospitals, to supply chains, to financial
service institutions. Fortunately,
there are structured ways to apply
process understanding to cycle time
reduction. This paper provides an overview
of the elements of the XeP3 toolkit
that can be applied to cycle time reduction
challenges.
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- What
are the key methods available
today?
- What are their strengths and
weaknesses?
- How and where would you use
them?
- What management principles
do you require to successfully
implement?
- What have companies achieved
using such methods?
- Where could you start?
Some techniques, for example Bevington
Group’s XeP3, draw from multiple
schools of thought – seeking
to produce a hybrid vigour. View
full document.
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Lean Methods have several
underlying principles
- Specify value
- Value is defined
in relation to the customer
- Identify
the value stream
- Exposes the enormous
amounts of waste
- Create flow
- Reduce Waste (Noise)
- Reduce batch
size and WIP
- Let the customer pull product through the value stream
- Make only what the customer has ordered
- Seek perfection
- Continuously improve quality and eliminate waste
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A successful approach
must address causes of “underwhelming
results”
- The business
itself is continually changing /
morphing
- Complexity is often “build
in as we go” as customer /
segment solutions are created
- The methods used have been unable
to grasp the hundreds of small issues which can contribute to the overall
inefficiency of a process in a complex
and ever changing environment
- There has been no structured
way to prioritise which is the most serious
set of problems / issues (Noise)
- “Staff engagement” is
something to which lip-service may
have been paid, but the ability to
leverage off their detailed knowledge
has often been absent
- The proposed solutions have been
of a capital intensive nature, with
inherent implementation risk, and
delayed returns
- The methods used are often
not widely taught so there are not enough
champions within the business
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Some of the reasons
for “under-whelming” results
can now be addressed though change
methods such as XeP3 which
- Engage staff
- Collect and manage the detail of
what is really happening
- Understand the role and impacts
Finance has on the Business’s
key processes
- Involve management and staff in
generating hundreds of potential
change opportunities
- Prioritise the opportunities such
that both low capital and significant
project opportunities can be planned
- Reengage staff to help implement.
- Measure the implementation of the
change as a means to drive it
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Profitability is leveraged
to markets, and whilst the environment
is currently benign, Financial Service
businesses must drive unit costs down
in order to
- Lift margins today
- Weatherproof the business for
tomorrow
Since the environment is prone to constant change, there can be little doubt
that the prize is available
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Identifying and reducing
the “things
that just go wrong”, or “Noise”,
in all departments and processes is
a significant cost and performance
improvement opportunity.
Such process failures exist in all
businesses and services. Eliminating
the causes of these failures will
- Free up staff time, reducing wage
costs or increasing output capacity
- Reduce
process cycle times
- Deliver improved
service
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The Retail Distribution
Challenge.
- Availability – need to ensure
quality
- With ever increasing competitiveness
and demand for on shelf availability
it is vital to minimise and eliminate
losses and errors within the Distribution
Centre and with suppliers
- Cost – labour intensive cost
base
- Labour and MHE are the most capital
intensive cost with a Distribution
Centre, it is vital to ensure that
processes are lean and resources
are used efficiently
- People – labour flexibility
and skills
- With the increasing use of an
overseas labour market, associated
workforce de-skilling, and subsequent
language barriers, there is increasing
difficulty in maintaining process
compliance and quality to ensure
both labour efficiency and availability
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The Problem
- Fuel Costs
- Driver constraints
- Undersupply of drivers
- Impacts of Working Time Directive
- Congestion
- No foreseeable improvement
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XeP3 has been employed
to meet a broad range of client objectives
- Productivity enhancements
- Cost savings
- Cycle time improvement
- Customer satisfaction improvements
- Meeting SLA targets
- Reductions in staff turnover
- Restructuring
- Merging enterprises
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In the current environment,
compliance is becoming more and more
important to businesses both from regulatory
and risk management points of view.
From a regulatory point of view, business
processes need to be in place to
ensure alignment to different legislations
both nationally and internationally.
From operational, financial and credit
risk management points of view, businesses
need to have systems in place to protect
shareholders, staff, directors and
other stakeholders. View
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Restructuring refers
to a broad range of corporate practices
- Change of reporting lines
- De-layering
- Off-shoring
- Plant close-down
- Line close-downs
- Mergers, Acquisitions, Divestments
- Redundancy programmes
- Financial restructures – including
refinancing
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- STRATEGY
- Positioning in a market, fit with business environment and capabilities
- OPERATING PRACTICES
- Production and various support activities
- MEASURES OF PERFORMANCE
- Eg. operating and business performance
- REWARDS & RECOGNITION
- Pay, promotion, recognition
- BEHAVIOUR AND CULTURE
- Performance oriented for the business
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The emphasis in business
has always been on increasing performance.
A critical success factor in a new
market (or small economy) in the past
caused many companies to work to gain
an unassailable position - that is
have a strategy based on position.
These companies focused on things such
as - having close to a monopoly from
very high market share, maintaining
a regulated environment or gaining
some legislated competitive advantage.
Developments such as globalization,
competition policy and lowering of
tariff barriers have dramatically reduced
the utility of such strategies. As
a consequence almost all business strategies
now include improving productivity
and focusing resources on success factors
- in order to out execute their competitors.
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The XeP3 Tool is a
comprehensive tool for determining
what people do, as well as managing
business processes strategically and
maintaining them up to date. It enables
organizations to start with the easy
to use XeP3 process recording tool
that enables you to pinpoint opportunities
for improvement quickly and quantify
them precisely. In as little as three
or four elapsed weeks users can expect
to have comprehensive and superior
information on what their organization
really does, how much resource is absorbed
and have each element of process failure
pinpointed. These timeframes have been
achieved in organizations ranging up
to 23,000 staff.
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The strategic agenda
for most businesses today is likely
to include both productivity/cost,
increases in customer service and increased
performance. The likelihood today is
that much of this performance increase
will be expected to be achieved through
better process management. This is
because the more traditional cost cutting
and more obvious outsourcing opportunities
are likely to have been harvested.
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What would it be worth
to you, if you found out in no more
than four weeks that you have an opportunity
in your business to improve staff productivity
or reduce costs by at least 20% - in
a sustainable way? And further you
could begin to access this opportunity
in some three weeks later taking advantage
of the under-utilized features of your
existing I.T. investment? Even further
you will be able to stretch the deliverable
simultaneously to improve your service
to key customers and begin to build
your organization's capability to continue
to make these gains faster than your
competition?
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There is widespread awareness of the
pressure to perform in the business
environment and the need for enhanced,
reliable and consistent measures. There
are the new governance needs as a result
of Enron and HIH and there is the ever-present
demand for increased performance from
shareholders in public companies, and
stakeholders in the public sector.
What this translates into is an increasing
pressure for better and more appropriate
measures on performance and output
and, critically, that needed tasks
are being performed consistently. At
the same time stakeholders are becoming
more and more aware that change does
not necessarily lead to improvements.
Indeed much of the change undertaken
has demonstrably disturbed processes
in other parts of organizations that
led to loss of performance.
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It is well known that
business performance and process consistency
are adversely impacted because of errors
and omissions [Noise] and without doubt
Six Sigma is a powerful approach for
setting goals for improvement. A typical
example of Noise would be incomplete
or erroneous order data being captured
from the customer. The reason this
Noise needs to be addressed is that
errors early in a business process
are the start of a chain reaction that
inevitably impacts the customer negatively.
The Noise incident typically prompts
additional contact with the customer
to get the data right or complete (increased
cost and irritation to the customer).
In turn the errors delay delivery (reduce
customer service) and may well result
in the sales staff being called in
to give a discount (more wasted time
and reduced revenue).
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