Smarter Working Through Process Improvement

Smarter Working Through Process Improvement Tim Holyoake Business Architect: Value Engineering 28 th September 2017 UNLEASH YOUR DIGITAL VISION #WITHOUTCOMPROMISE 2017 Software AG. All rights reserved. Please do not open the envelopes in front of you!

BAD PROCESS, GOOD PROCESS YOUR THOUGHTS? Bad Process Good Process Is arbitrary, box ticking, bureaucratic Provides context for why things are done Consumes time, prevents innovation, measures the wrong things Helps people to get more of the right things done Is never or rarely changed Is subject to continuous improvement Is focussed solely on internal concerns Is customer centric 3 2017 Software AG. All rights reserved.

DEMYSTIFYING PROCESS IMPROVEMENT Overload: too much work across the process for the available resources Imbalance: overwork vs underwork Thrown away: materials, shrinkage, data Don t waste time and resources 4

SCENARIO It is 2020. The race is on to introduce 5G mobile networks into the UK. New handsets are not yet available, but a simple app upgrade will enable existing customers to benefit immediately from the new 5G technology. For health and safety reasons, all handsets are now made entirely from Lego 7 2017 Software AG. All rights reserved.

Team 1 Team 2 1 GOODS IN / OUT 1 GOODS IN / OUT Team 3 Team 4 Team 5 Team 6 App Vendor Returned Apps FACTORY 2 or 3 SHOP 1 or 2 SHOP 1 or 2 FACTORY 2 or 3 Team 7 Team 8 Team 9 Team 10 App Vendor New Apps 12 2017 Software AG. All rights reserved.

THE CURRENT PHONE UPGRADE PROCESS SUMMARISED 1. The shop logs the details of a phone that has been returned for the upgrade. 2. The shop delivers the phone to goods in / out. 3. Goods in / out processes the delivery from the shop and delivers the phone to the factory. 4. The factory upgrades the apps (bricks) on the phone and returns it to goods in / out. 5. Goods in / out return the phone to the shop. 6. The shop checks that the upgrade has been performed correctly. 13 2017 Software AG. All rights reserved.

WHAT S IN YOUR ENVELOPES Shop Factory - Your process instructions - A stock of shop log sheets - A stock of tags - Your process instructions - An app (brick) colour chart - A stock of factory log sheets Goods in / out - Your process instructions - A stock of goods in / out log sheets 14 2017 Software AG. All rights reserved.

MEASUREMENT YOU CANNOT MANAGE WHAT YOU CANNOT MEASURE At various points during the process, I will ring a bell and shout STOP! We will collect and share data about the progress of the work. This data will be useful in helping us all understand where problems are happening and provide a source of information to help you improve the process for the second run. Try to work as methodically and as smoothly as you can, learn as you go along and don t skip parts of the process (e.g. filling in the logs). 15 2017 Software AG. All rights reserved.

CHECKPOINT 0 - START Team Shop Goods in / out Factory App Vendor # successfully upgraded # rejected # being processed for the factory (in) # being returned to the shop (out) # phones at the factory 1 0 0 0 0 0 2 0 0 0 0 0 3 0 0 0 0 0 4 0 0 0 0 0 5 0 0 0 0 0 6 0 0 0 0 0 7 0 0 0 0 0 8 0 0 0 0 0 9 0 0 0 0 0 10 0 0 0 0 0 (Returns) (New) 0 0 16

CHECKPOINT 1 Team Shop Goods in / out Factory App Vendor # successfully upgraded # rejected # being processed for the factory (in) # being returned to the shop (out) # phones at the factory 1 0 0 0 0 0 2 0 0 0 0 0 3 0 0 0 0 0 4 0 0 0 0 0 5 0 0 0 0 0 6 0 0 0 0 0 7 0 0 0 0 0 8 0 0 0 0 0 9 0 0 0 0 0 10 0 0 0 0 0 (Returns) (New) 0 0 17

CHECKPOINT 2 Team Shop Goods in / out Factory App Vendor # successfully upgraded # rejected # being processed for the factory (in) # being returned to the shop (out) # phones at the factory 1 0 0 0 0 0 2 0 0 0 0 0 3 0 0 0 0 0 4 0 0 0 0 0 5 0 0 0 0 0 6 0 0 0 0 0 7 0 0 0 0 0 8 0 0 0 0 0 9 0 0 0 0 0 10 0 0 0 0 0 (Returns) (New) 0 0 18

CHECKPOINT 3 Team Shop Goods in / out Factory App Vendor # successfully upgraded # rejected # being processed for the factory (in) # being returned to the shop (out) # phones at the factory 1 0 0 0 0 0 2 0 0 0 0 0 3 0 0 0 0 0 4 0 0 0 0 0 5 0 0 0 0 0 6 0 0 0 0 0 7 0 0 0 0 0 8 0 0 0 0 0 9 0 0 0 0 0 10 0 0 0 0 0 (Returns) (New) 0 0 19

CHECKPOINT 4 Team Shop Goods in / out Factory App Vendor # successfully upgraded # rejected # being processed for the factory (in) # being returned to the shop (out) # phones at the factory 1 0 0 0 0 0 2 0 0 0 0 0 3 0 0 0 0 0 4 0 0 0 0 0 5 0 0 0 0 0 6 0 0 0 0 0 7 0 0 0 0 0 8 0 0 0 0 0 9 0 0 0 0 0 10 0 0 0 0 0 (Returns) (New) 0 0 20

REMEMBER THIS? Overload: too much work across the process for the available resources Imbalance: overwork vs underwork Thrown away: materials, shrinkage, data Don t waste time and resources 22

REVIEW OF SIMULATION RUN 1 What went well? What went badly? Do you think you could improve the process? 23

SILOED CHANGES DON T ALWAYS IMPROVE THE END TO END PROCESS I couldn t see you because of the lid of the piano. Could you wear high heels? Would you jump up in the air so I can see you over the lid of the piano? 26

REAL WORLD CONSTRAINTS You can t upgrade the handsets at the shop (you re supposed to be selling new contracts)! A minimum of three actors are required: Shop; Upgrade Facility & App Supplier You must be able to adequately track and measure work throughout the process You must not move tables around the room (although you can change where you re sitting on your table) You may adjust resourcing levels between process steps if you wish 27

IMPROVING THE PROCESS Work together in your teams to come up with an improved process that: Builds on what you ve learned about this process so far Ensures a good flow of work and supporting information throughout the process Respects the constraints that I ve just outlined You have only a few minutes to do this in. We will then re-run the simulation game to see if your improvements have worked! 28

REVIEW OF SIMULATION RUN 1 What went well? What went badly? Do you think you could improve the process? 34

WHY IS SUSTAINABILITY SO IMPORTANT? PROCESS-ORIENTED ORGANISATIONS: Return better financial performances than their peers Show enhanced levels of product and service quality Have higher levels of customer satisfaction Deliver their products and services more consistently and reliably Are more agile and faster to market with new products and services Ensure their customers get access to their products and services faster From Reijers, M.K.H.A. (2013). The effects of process-oriented organizational design on firm performance. Business Process Management Journal, 19(2), 245-262. 36 2017 Software AG. All rights reserved.