Process Improvement Engine

Action plan

Service Function

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Action Plan

Goals and Roadmap

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 Current Situation: Pilot Projects in progress

Medical Bill passing PO to Delivery

(Finance) (Purchase)

Design of item to
Payroll processing
delivery of item
(Time office)
(Projects)

Planning (Projects)

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 To be situation in Sep 2021

ICSAT System for Process Improvement Projects

Monthly surveys Project bank
periodic
Plants/ System for Completed PITs
Plants
updation of PIT in progress
understanding
Plants/ process list, Structure
customer
Functions Exhaustive list of criticality Process owners
Monthly Interactions requirements, its (SET/DMT)
processes and Zero base assessment and
Customer/ deployment in Process champions
Supplier
measures of its criticality deployment for (PBU/SET leaders)
daily work and
FRT Reviews impact on assessment of all higher levels of Internal Trainers
Process based not its impact on Documents
internal processes. excellence
department based customer Manual
customer.
Process based MIS and not Training Material
function based

Periodic ICSAT surveys, FRT reviews, PIT projects and structure

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 Milestones to achieve the to be situation

SN Milestone By May Jun Jul Aug Sep

1 Alignment on Process improvement Engine approach and methodology Touchstone
FRT
Respective core team members

2 Consolidation of list of processes including impact measures on all internal customers. CTM
3 Criticality assessment of processes FRT
4 Process improvement project bank based on priority matrix FRT
5 Launching of PITs FRT
6 Training of Process Champions Touchstone
7 Handholding and coaching of champions OJT (As is and To be mapping) Touchstone
8 First round project completion, approval and recognition. FRT
9 Co creating the system for Touchstone
Updation of process list along with Measures
Defining the SLAs based on customer requirements and measure the satisfaction

10 Pilot implementation of customer- supplier relationship between the SETs of the function Touchstone
DPI
PIT opportunities

11 FRT Reviews Touchstone

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 Consolidation of List of Process.

• Every SET to make a list of process in their areas as per the template.
• Following SETs have already defined the list of processes
• F&A, Purchase, store & Inbound logistics

• The above list to be refined further

• Activities and Processes

• Following SET to make the list

• HR, P&S and lab

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Criticality assessment : PIT Project Bank

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Process Improvement Teams

Methodology

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PIT Methodology: 7 steps methodology of FITs with few variations

FIT – Data Based PIT – Process Based

Reason for Improvement 1. Reason for improvement

Current Situation 2. AS IS process mapping

Analysis 3. PIE analysis

Countermeasures 4. TO BE process mapping

Result Check 5. Result Check

6. Standardization
Standardization
7. Future Plan
Future Plan

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 7 Steps of Process Improvement

No Step Objectives
1 Reason For Improvement Select the pain areas(Process with problems), Define the Valid Requirements and KPI

2 Map the current process . Understand the problem ,issues and expectations and current
AS Is Mapping status of KPIs. Define the scope of the process (Specific Problem)

3 Analysis Analysis PIEs and causes for low performing KPIs

4 To Be Mapping Identify solutions to PIEs and causes . Develop and Define new process

5 Result Check Pilot implement the new process and test the results before and after and see whether
improvement has happened

6 Standardization Create standards (SOP/Work instructions/Manuals/policies). Train people and roll out the
new process

7 Future Plan Plan for next project

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 Project Duration
• Step 1 : Reason for improvement
• Step 2 : As is mapping
• Workshop
• Step 3 : Analysis
• Step 4: To be mapping
• Workshop
Time duration 3 to 4 weeks
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Step 5: Pilot Run and Result check
Step 6: Standardization and Roll out
• Create the right ‘mindset’ of the organisation to begin the
change process
• Identify pilot implementation process / sub-process
• Pilot Implementation
• Measure performance of pilot implementation against KPIs
• Refine detailed design, if required, based on learnings from
pilot implementation
• Evolve implementation plans, roles & responsibilities,
training needs, etc.
Step 7: Performance Monitoring and control
• Monitoring of Process KPIs
• Continuously improving the process capability ( FIT/Kaizens)
• New Business/Customer requirement 2nd level of
improvement
Time duration 8 to 16 weeks
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 PIT : Tools and Techniques

•Divergent thinking Methods

• Creativity /Out of box thinking
: 7 hats of creativity
• CARES : Combine, Add ,
Rearrange/Re Sequence,
Eliminate and Simplify
• Benchmark from other
industries

•Convergent Thinking
• PIE Countermeasures
• KPI countermeasures
• Benchmark

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This Photo by Unknown Author is licensed under CC BY-SA
 Structure

• Cross functional core team from all service functions will

be responsible for driving the process improvement
engine at complex level
• PDCA of the process improvement engine

• The sponsor

• Process champions(Coaching and Handholding)

• FRT will be responsible for management review of the

projects.
• Identification to Closing

• Team of key process stake holders (C/F) will execute the

improvement.
• PDCA cycle of the process improvement project

• Leader will have a maximum stake in the process

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Roles

• Champion
• Provide resources and budgetary support to the team
• Review progress and help team achieve its goals
• Cut through organizational trivia in support to the team
• Ensure that the team not only achieves results but also goes through the
right processes
• Facilitate team meetings to help them move smoothly, with effective
participation from all
• Help identify areas which team members might have overlooked.
• Leader
• Focus the team on the goals
• Ensure that the process improvement methodology and tool is carried
through
• Ensure that work is allocated equitably, and team members carry out their
work
• Ensure implementation is carried out smoothly, interacting effectively with
those responsible in the organization for execution
• Liaise effectively with sponsor, to obtain due support
• Promote teamwork and mutual support for achievement of challenging goals

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 Process Improvement Manual

1. Purpose of Process Improvement

2. Why Process Improvement
3. What is Process Improvement
1. Definition
2. Scope

4. How Process Improvement

1. Structure
2. Process Identification
3. Project Registration
4. Project Execution
5. Project Review
6. Project Completion
7. Project assessment

5. How : Process of structured Problem Solving

1. 7 steps
2. Tools and Techniques

6. Training
7. Reward and Recognition
8. Standards

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Process Improvement Engine :
Sustenance

The Process

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 Process Improvement Engine : The sustenance process

Customer –Supplier Relationship both Horizontal and Vertical

Horizontal : Plant and Functions
ARE WE DOING THE RIGHT THINGS? Vertical : SET and AET
• Alignment of Department purpose and goals with business
requirement
• Explicit inter - level negotiations to ensure departmental goals are
aligned to meet customer - supplier requirements

ARE WE DOING THE THINGS RIGHT?

• Task analysis - process plus outcomes
• Develop standards and measures of performance
• Ensure key tasks form part of the normal work roles of individuals

HOW SHALL WE REVIEW AND MONITOR PROGRESS?

• Intended outcomes
• Take corrective action. Develop additional tasks and targets if
required
• Fact based analysis - understanding root causes that prevent
people from achieving

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 Milestones of sustenance process

• All service functions to identify internal customers

• Primary and Secondary
• Service users, Influencers and decision makers

• Understanding the voice of customers

• Needs and Requirements

• Service Level Agreement with customer

• QCD

• SLAs deployment to Processes

• KPI/DPI of SET and DMT

• Measuring and improving the performance on SLAs

• Internal Customer Satisfaction index

• PIT projects

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Process Improvement Engine

Continuous Improvement Initiative for Service Functions

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 Manufacturing functions deliver the tangible products to external customer mainly using
asset and processes

Processes making an added-value to a

product

Processes making a product which is

valuable for external customers

Processes external customers are

ready to pay for

Few real examples of processes to be

given

Manufacturing can work on defective product before it reaches to customer (Rework/Rejection)

Process improvement : predictability/certainty

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 Service functions deliver products and services to internal customer mostly using the
processes

Finance and Accounting department,

Human resource management department,

Commercial department

Other department that supports the main

functions of the business.

Few real examples of services processes to be

given

Since customer participate in delivery process, moment of truths are critical in services . Right first time every time
Response time, Reliability (error/defect) and experience (see, touch and feel)
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 Process Improvement Engine can be also applied to cross functional service processes

Business Strategy Budget Planning and

Organising

Management Review Management

Process Control Processes

New Product
Large Investment
development

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 Purpose of
Process Improvement Engine for Service functions

Create a culture of customer centricity through process

orientation, keeping customer at center in daily work

Institutionalize system of continuous process improvement

to improve the effectiveness and efficiencies

To seek "incremental" improvement over time or

"breakthrough" improvement all at once.

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 Why Process Improvement Engine
Business evolves over
time.
First a good process is
established, it is usually
efficient and responsive. As
the business grows, more
people, functions and
hierarchies are involved in
a process.
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Business needs Rich experiences of
gradually change the people are lost when
process. they leave the
organization /
function.
Everyone tries to do their Very few people have
best, but the process looked at the complete
evolves over a period to process from start to finish
the current state (in some
cases these are person-
specific).
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 Benefits of Process Improvement

• Benefits
• Improved efficiency
• Improved process visibility/performance
• Cost management
• Quality management
• Reduced cycle time reduction
• Regulatory compliance
• Effective management of resources

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 What is process improvement engine 26

• Process improvement involves the business practice

of identifying, analyzing and improving existing

business processes to optimize performance, meet

best practice standards or simply improve quality and

the user experience for customers and end-users by

involving all process stake holders.

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 Process improvement is

• Challenging old assumptions and rules,

• Rebuilding processes / systems,
What is Process • Integrating diverse processes
Improvement Engine • Shift in paradigms

Process improvement is not

• Reorganizing and restructuring,

• Gradual or modest improvement,
• Automating old ways of doing business,
• Downsizing
• Fixing and Incremental thinking

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 Thank You

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