When a company looks at itself, it tends to see core functions and specialised activities :
Companies are normally structured hierarchically, with each area having its own functional responsibilities :
- Variants and hybrids occur
- Customer segment
When a customer deals with a company, it sees process outputs not functional outputs.
What is a process ?
A series of activities that …
… takes an input, adds value to it, and produces an output
…is definable, predictable, and repeatable.
A "good" process needs :
The power of multi functional teams :
- Business processes are transverse to organizations.
- As a consequence, process improvement requires a multi-functional working approach
- It is a way to share ideas and information, the sum of ideas is usually better than individual reinforcing teams creativity
- It uses the “skill set” of all, and obtain consensus for solutions and streamlined processes. The team will usually defend and promote their own ideas and solutions with more power, the implementation then usually becomes easier.
To be Customer focused :
- Who is (are) the customer(s) ? Value added is always determined from the customer’s (internal or external) perspective
- Every process should be focusing on maximizing the value added ratio delivered to the customer (internal or external)
- Anything that does not add value is considered waste
- (value adding time (VA) of 3 -10% in the lead time of products or services is common).
Examples of what the business needs …
- More rapid deliveries of product & services to the next process or customer
- Quality of product & services improved
- To be focused on customer needs & meeting customer expectations
- Processes streamlined & documented
- Harmonization of processes & practices across plants in different countries
Examples of what Lean can do …
- 30% to 60% typical reduction of lead time on processes
- 10% to 40% improvement of quality of product & services
- Upstream consideration of customer expectations (internal or external) in process improvement
- Typical outcomes of processes (Kaizen \ reengineering) :
- Implementation roadmap of “TO BE” solutions mapping of “AS IS” & “TO BE” processes
- Solutions of “TO BE” processes developed & agreed through multi-functional \ trans-national teams