Friday, August 25, 2023

Business Process Efficiency Engineering - Improvement - Industrial Engineering Through Information Technology

INTRODUCTION TO MODERN INDUSTRIAL ENGINEERING  Pdf File. FREE DOWNLOAD.
by Narayana Rao Kvss. (1300+ Downloads so far)

Effectiveness First and Efficiency Next in the design steps.  Industrial engineering focuses on efficiency improvement.


Organizations have to be effective and efficient simultaneously in all tasks in their working. Processes have to be effective and efficient simultaneously. Operations have to be effective and efficient simultaneously. - Narayana Rao


Three Major Channels of Process Improvement.
1. Process Redesign by Process Planning Team.
2. Process Improvement Study by Industrial Engineering Team.
3. Continuous #Improvement by Involving Shop Floor Employees and All Employees.
Continuous Improvement - Employee Participation Principle of Industrial Engineering


New:

Smart Machine Based Business Process Design and Improvement



Accenture 2018 Note: PROCESS REIMAGINED

Together, people and AI are reinventing business processes from the ground up.
Book by Accenture Consultants: Daugherty, Paul R. and Wilson, H.J.,  Human + Machine: Reimagining Work in the Age of AI. Boston: Harvard Business Review Press, 2018.


SMART MACHINES ARE REINVENTING HOW WORK IS DONE

Smart machines are helping some companies achieve amazing results in some business processes.  It is already delivering profound results, across industries and for the economy as a whole.

Accenture consultants Daugherty, Paul R. and Wilson, H.J., surveyed more than 1,075 process professionals from large companies that use artificial intelligence technologies in at least one business process. Some 88 percent of organizations using machine learning have seen at least a 200 percent improvement in KPIs in enterprise processes.




Business Process Efficiency Improvement or Engineering


Business Process Efficiency Improvement or Engineering must involve process re-design to obtain processes that achieve the same (functional) goals, while increasing efficiency of the process (decreasing the cost of the process)

Maxine Attong - COD Business Process Improvement Manual, (Page 146)

Process Measurements

Three sets of  measures are used to gauge the process.

1. Process efficiency - measures the time that activities take to covert inputs to outputs.
2.Output effectiveness - measures how well the output meets the design requirements.
3. Output effectiveness and customer satisfaction - measures how well output meets customers' needs.

Process Efficiency Measures

Ideally, one measures identifies the minimum possible resources to be consumed during the process. Actual resource consumption is quantified and assessed against set standards as a variance, variation or deviation. The results lead to the control (managerial actions)  of people, materials, methods, environment and the way each resource or factor interacts with the other. Resource consumption is an easy measure since it is tangible.  Standards are set based on the experience or scientific investigations (Scientific Management).

Example - Accounts Payable Process Efficiency Measures

Inputs - Purchase invoices received per month.
Time - The cycle time and the basic work time taken for an invoice to be processes and for the vendor to receive payment.
People - Payroll cost, Level of training or skilled labor used in the process
Equipment - Utilization and cost
Output - The number of accurate payments generated per month and reasons for delays

Detailed description of measurements made is available in the book.

Purpose of Efficiency Measures

Efficiency measures are used to drive decision making around improving the process. Each measurement tells the story about the process. The process owner, process designer, and efficiency engineer (industrial engineer) have to know the causes before changes can be made to improve the process.

Efficiency Analysis of Inputs

Efficiency Analysis of Time

Efficiency Analysis of People

Details given in the book.


Identifying Drivers of Inefficiency in Business Processes
https://books.google.co.in/books?id=s6BuCQAAQBAJ&pg=PA121#v=onepage&q&f=false

Analysis of Recruitment Process for Effectiveness and Efficiency

Streamlined Process Improvement - H. James Harrington 
https://books.google.co.in/books?id=tRKWSWbR18EC


Using Business Process Re-engineering to Increase Process Efficiency of E-Catalogue
Distribution System
Zulkhairi Md Dahalin and Siti Fatimah Yusof
IBIMA Business Review
http://www.ibimapublishing.com/journals/IBIMABR/ibimabr.html
Vol. 2012 (2012), Article ID 731793, 8 pages
http://www.ibimapublishing.com/journals/IBIMABR/2012/731793/731793.pdf

A More Comprehensive Approach to Enhancing Business Process Efficiency
Seung-Hyun Rhee 1, Nam Wook Cho 2, and Hyerim Bae 3
1 Department of Industrial Engineering, Seoul National University, 151-742, Seoul, Republic of Korea
2 Department of Industrial and Systems Engineering,
Seoul National University of Technology, 139-743, Seoul, Republic of Korea
3 Department of Industrial Engineering, Pusan National University, 635-709, Busan, Republic of Korea

Abstract. Whereas Business Process Management (BPM) systematically guides employee participation in business processes, there has been little support, use or development of user-friendly functions to improve the efficiency of those processes. To enhance business process efficiency, it is necessary to provide automatic rational task allocation and work-item importance prioritization, so that task performers no longer need to be concerned with process performance. In the context of BPM, two different perspectives, the Process Engine Perspective (PEP) and the Task Performer Perspective (TPP), are considered. Accordingly, we developed a comprehensive method that considers those two perspectives, in combination rather than separately.

Process Engine


Development and testing of a business process orientation model to improve employee and
organizational performance
Arshad Zaheer,  Kashif Ur Rehman, and Muhammad Aslam Khan
October 2009
http://www.academicjournals.org/Ajbm/PDF/pdf2010/Feb/Zaheer%20et%20al.pdf


Business Process Efficiency Engineering - Case Studies


Case Study - Business Process Improvement
Dev Mohindra
Senior Project Manager at Capgemini
August 6, 2020

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Ud. 25.8.2023,  9.9.2022,  18.8.2022,  28.5.2022
Pub June 2013 

1 comment:

  1. Business Process Improvement is an ongoing and iterative process. It requires commitment from leadership, collaboration across departments, and a willingness to embrace change. Regular assessments and adjustments are essential to maintaining optimized processes and adapting to evolving business environments.

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