Week 10 - Redesign Principles and Tactics (1)

Week 10 - Redesign Principles and Tactics (1)

Sources/References:
1) Lecture Notes
2) "EL SAWY’S REDESIGN PRINCIPLES AND TACTICS"
http://higheredbcs.wiley.com/legacy/college/turban/0471229679/add_text/ch09/el_sawy.pdf
3) http://ict.moe.org.ir/_ICT/Documents/Session6-7%20BPR%20Basics.pdf
4) EMS
http://www.ems.com.cn/
5) Foxconn
http://en.wikipedia.org/wiki/Foxconn
6) "The iPhone Supply Chain"
http://operationsbuzz.com/2010/11/the-iphone-4-supply-chain/
7) Timberland
http://www.timberland.com.hk/products/product-custommade.asp
8)Pizza Hut
http://order.pizzahut.com.hk/tc/pizzacard.html



Response:

In this lecture, It was mentioned about the redesign Principles & Tactics. There are 3 types of redesign principles and tactics, which are:
1) restructuring the process;
2) informating the process; and
3) minding the process.
However, due to the time limitation, only the principles of restructuring and informating the process are mentioned in this lecture.

The definitions of principles and tactics are as followed:
Principles -  "can be used as a checklist to suggest ways of redesigning the process for better organisational performance";
Tactics - "can be used to trigger ideas about how to implement changes to create value to customers".
To conclude, principle is simply saying "what to do" and tactic is saying "how to do".

And here are the summaries and examples of these principles and tactics:

Principle 0: Streamline

To streamline the process means that to minimize waste; and simplify and consolidate similar activities. This principles is important since it is the ground zero commonsense principle.

Example: EMS tracking system

What is the reason on adding a human verification on tracking item? It is necessary? I really doubt that. It increases the complexities on tracking a item. To streamline a process, valueless complexities (e.g. here is the human verification) should be removed.

For the principles of restructuring process, there are 4 principles, which are:
1) lose wait;
2) orchestrate;
3) mass-customize; and
4) synchronize.





Principle 1: Lose Wait

To lose wait means that to reduce the waiting time in process links, so that it can create value to customer.

There are 5 common tactics to do that, which are:
1) concurrency - By redesign execution of time-sequential activities;
2) closed-loop - To create quicker flexible interaction;
3) not gating main process - Not allow a support activity to delay s core value adding process;
4) continuous flow - Design the process for continuous flow rather than stop-start batches; and
5) upstream relieves downstream - Modify upstream practice to relieve downstream bottlenecks.

Example: McDonald
Since last year, the operation on ordering in McDonald was changed.
Before the change, there is only one queue in front of a cashier, which means that ordering and picking up the order is in the same line. This also means that next customer can order only after the previous customer picked up his order.
After the change, there are 2 queue in front of a cashier. One is for ordering, and one is for picking up the order. Ordering and preparing the order can be doing concurrently. Also, several orders in the same cashier can be doing at the same time.The waiting time is reduced.






Principle 2: Orchestrate

It means that enterprises collaborate on jointly executing and coordinating different parts of the process, which let the swiftest and most able enterprise execute.

There are 4 common tactics on orchestrating, which are:
1) Partnering - Find another enterprise to partner with a process;
2) Outsourcing - Find another enterprise to outsource a process;
3) In-sourcng - Find another enterprise to insource back into the enterprise; and
4) Routing through an intermediary - route the process through an intermediary.

Example: Apple iPhone

From the above table, it is confirmed that Apple Inc. collaborate with a lot enterprise to create its successful business process.





Principle 3: Mass-customize

This means that give the highest flexibility to customer, which flex the process for any time, any place and any way.

There are 4 common tactics in the mass-customize area, which are:
1) flexing time;
2) flexing space;
3) modularity - Provide independent modules that can be requested easily; and
4) dynamic customizeation - Enable customization of product offerings.

Example: Timberland

To attract customers, Timberland, a famous shoes shop, provides custom made service to customer.



Principle 4: Synchronize

To synchronize the process means that synchronize the physical and virtual parts of the process.

There are 3 common tactics to do that, which are:
1) match offerings - Match the offerings on both physical and virtual parts of the channel;
2) common process platforms - Provide common platforms for both physical and electronic processes; and
3) track movement - Provide movement tracking of phyiscal products electronically.

Example: USPS

Almost all delivery express service companies provide real-time tracking system to their customer.





Here are the 3 principles for informing the process.

Principle 5: Digitize and Propagate

This means that to reduce human effort, errors, shorten process cycle time by capture information digitally at the source and propagate it throughout the process.

There are 3 common tactics to do that, which are:
1) digitize at sources;
2) make the process paperless; and
3) shrink the distance between the information and the decision - Provide directly accessibility on required information for decision making.

Example: Pizza Hut
The registration of member of Pizza Hut is without paper. Unlike many companies nowadays, customer needs to go to Pizza Hut's website and type in the information as a member, but not writing on a paper and wait for Pizza Hut to enter the information.



Principle 6: Vitrify

It means that provide high visibility through fresher and richer information about process status.

There are 3 common tactics in this area, which are:
1) on-demand information tracking;
2) on-the-fly reporting and analysis; and
3) standard partner interface.



Principle 7: Sensitize

This means that prompt action by fit the process with sensors and feedback loops.

There are 2 common tactics to do this, which are:
1) process dysfunction loops - provide customer feedback loops to detect process dysfunctions; and
2) monitor environmental change.