BPMS 01 Overview

1、BPMS Overview,Business Process Management,What does BPMS mean for You,The Strategic Component of Six Sigma A way for all departments to be actively involved and aligned in their actions to satisfy customers A way to align problem solving resources to solve critical customer issues,Processes are the

2、basic vocabulary of Six Sigma” General Electric,2,Getting More Results from Six Sigma,For several years, companies have used Business Process Management to improve and manage key business processes. They have launched specific customer-focused projects as a natural extension of process improvement.

3、GE broke the mold, and launched specific projects in parallel with process improvement This is the approach that we are encouraging Samsung Corning to take,3,History of Successful Six Sigma Deployment,4,Mr. Welchs Story,The first year, we used Six Sigma to attack costs, improve productivity, and fix

4、 broken processes. In 1997 we achieved $320 million in productivity gains and profit By 1998, we had generated $750 million in Six Sigma savings and got $1.5 billion in 1999. Our operating margins went from 14.8 percent in 1996 to 18 percent in 2000.,5,Mr. Welch continues,The next phase was to use S

5、ix Sigma tools to fix and design new products” GE Power Systems customers were experiencing Power Down situations with regularity. GE redesigned and reduced unplanned downtime from 33% to 0 on the last 210 units produced since. GE Medical launched a new CT scanner with reduced MRI procedures from 3

6、minutes to 17 seconds.,6,Functionally Focused Six Sigma Project Selection,Most organizations are measured by “functions” Six Sigma success is largely within functions Executives may operate as a team but are focused, individually, on the functions,Strategy & Action,Customers, Six Sigma Project Savin

7、gs ,7,Mr. Welch continues still not enough,Our customers were telling us that they felt no difference in quality.,Company is happy. But Customer still doesnt receive reliable deliveries,8,Mr. Welch continues - now Customer Notices,The customer needs reliable delivery as much as short cycle times Now

8、 the customer is happy,9,Customer Process,Your Process,C,A,B,Customer View,How did the performance of my supplier affect my total process performance,Your View,Two Views of Performance,How did we conform to the customers requirement,At the Customer For the Customer (ACFC,At The Customer For the Cust

9、omer,11,ACFC Metrics,GE Aircraft Engines no longer focuses just on how long it takes to repair an engine for an airline customer. The measure that counts is “wing to wing” - how long it takes from the time the engine comes off an airplanes wing until it is replaced - since that is how long the airpl

10、ane is out of service Actual GE repair time = half the wing-to-wing time GE has started a project to help airline customers attack the other of the total wing-to-wing time,12,ACFC Metrics,GE Capital found a problem in its business unit that provides financing to office equipment dealers First GE Cap

11、ital reduced its internal cycle time for financing approval from 2 days to a few hours But the bigger issue was that equipment dealers had a 47 day cycle time for AR GE has helped these dealers to redesign their billing & collection processes, and has driven the time down to 25 days. GE Capital is c

12、onsidered a Process Enterprise,13,What is a Process Enterprise,There is as much allegiance to processes as to functions Employees internalize process goals Employees understand how the process is performing Everyone knows customer requirements and strives to meet them Employees help manage each othe

13、r instead of escalating conflicts Processes are measured Objectively and frequently GE Capital,14,Customer-Focused Project Selection Functional Integration and Line-of-Sight to the Customer,Customers see us through our business processes Products and services for customers are by processes which cro

14、ss departmental lines This will be the focus of our work in BPMS . To align departmental processes to focus on customers,Strategy & Action,Cross Functional Process,Customers, Six Sigma Project Savings ,15,BPMS Framework,16,Six Sigma and Business Process Focus,6s makes each process efficient and effe

15、ctive,. . . . . . Business Process Management Systems (BPMS) connects those processes into a chain focused on flow and creating value for the customer,Creating A Consistent Value Chain for Customers,Engineering,Suppliers,Operation,Test,Support,Customer,6s,6s,6s,6s,6s,6s,6s,6s,6s,6s,6s,6s,Administrat

16、ion,6s,Traditional Six Sigma Roll-Out,Engineering Operation Test,Administration Materials Support,6s,6s,6s,6s,6s,6s,6s,6s,Suppliers,Customer,Six Sigma / Core Process focus,17,Methodologies for Managing Performance Process Management (BPMS) Business Case Improvement (DMAIC,Customer/ Shareholder/ Stak

17、eholder Requirements,Performance,Business Strategy,Core and Enabling Process Goals,Business Results,C T Q s,Process Performance Measures,Business Processes,Resources for Driving Performance Corp. Leadership Team (CLT) Champions Six Sigma Teams. Process Owners Process Teams,General Electrics Integrat

18、ed Process Approach to BPMS,18,BPMS at Corporate Level,Packaging Consolidation Sub-assembly Sequencing Import Services,JIT pickup / delivery Inventory Mgt Kitting Sequencing Sub-assembly Supplier Conformance,Carrier Mgt. Material follow-up WIP transport Facility Design Yard Management Quality Assura

19、nce,DC Operations Inventory Mgt. Returns-Packing Yard Management Import / Export Carrier Mgt,Transport Consolidation Customs Clearance Inventory Mgmt. Rail Loading Vehicle Delivery Vehicle Releasing,Secondary Services Reverse logistics,Inventory Factoring Financing Inventory Ownership,Freight Paymen

20、t Equipment Leasing,Project Financing Equipment Fin. Private Fleet Fin. WIP inventory mgt,Equipment Financing Project Financing,Freight Payment,Credit servicing,EDI Vendor Managed Inventory Network Designs,MRP systems Part Visibility Satellite Communications,Integrated Supply Chain Tools Production

21、planning Tools,WMS DRP systems EDI 3rd Party Mgt,Routing Design Product Visibility Satellite Communications,POD verification,Suppliers,Inbound Logistics,Manufacturing,Distribution Centers,Finished Product Distribution,Customer,Physical Services,Financial Services,Information Services,SALES,PRODUCTIO

22、N,Value Creating Processes,Enabling Processes,The Big Picture,19,Elements of a Business Process,start boundary,core process,end boundary,sub-process,sub-process,sub-process,sub-process,sub-process,sub-process,suppliers,inputs,customers,outputs,20,Detailed Mapping is the Next Step in BPMS,Top-Level P

23、rocess,Sub-sub processes,Sub-processes,Stop,21,BPMS Linkage to Strategic Objectives,Traditional Six Sigma,Process-Centered Six Sigma,Mission, Values, Vision Development of Business Plans - Goals - Objectives Deployment - Functions - Departments Execution DMAIC DMADV Review and Audit,Mission, Values,

24、 Vision VOC Analysis - Strategic Objectives Process Goals Organizational Process Capabilities Objective Alignment - Core Processes BP Owners Enabling Processes Execution - Process Capabilities Control DMAIC DMADV Review,22,We are Seeking the Drivers of Process ImprovementY = (x1, x2, x3, x4, xn,Proc

25、ess,Process Efficiency Inside-Out,23,Effectiveness: Samsung and Brand Value,Samsung is the number one winner* in increased Brand Value (2002 Vs. 2001). Samsungs brand value increased 30% in 2002, while Sonys decreased by 7% Samsungs brand value is # 34 in the world. Sony is still #21, but “Sony gadg

26、ets have come under attack by Samsung” “Samsung has used bold designs to transform itself into a premium seller of consumer products.” “Heavy investments in design R&D have brought fatter profit margins.,Business Week Magazine, August 5, 2002,24,Leveraging Brand Value,BPMS gives Samsung Corning a ro

27、admap for focusing business processes on customer service objectives This will catalyze growth with Samsung and with OEMs,25,Inside-Out & Outside-In,26,BPMS & Six Sigma Linkage,BPMS is complimentary to Six Sigma, and will be successful because of the Six Sigma skills and PI skills of Samsung Corning

28、. BPMS will challenge functional departments to define process metrics that are linked to customer metrics By using these process metrics, future six sigma projects can be aligned to focus on solving customer issues,27,What are the Cultural Benefits of BPMS,An organization that emphasizes process, as opposed to hierarchies, an