Week 10 - Redesign Principle and Tactics (1)

Reference 

1. http://www.khaledhassanein.ca/wp-content/uploads/2007/04/J7.pdf
2. Readings 2 - Hammer-BPR-HBR-1990
3. http://www.innovations.ahrq.gov/content.aspx?id=2667
4. http://selahsynergy.com/blog1/2010/03/16/build-a-customer-feedback-loop/

Summary 

In Lecture 10, it mainly focus on the phrase 3 of the process redesign and the redesign principle and tactics. There are 3 parts of redesign principle an we mainly focus on the first 2 parts, they are Restructuring and Informating.In the journal, I will mainly focus on the discussion on the redesign principle with case studies. 

Use of Principles and tactics

The principles and tactics can maximize the value adding content of a process, creating value to customer. Moreover, they can management non-value adding activities, for instance, management process, accounting. Furthermore, they can minimize everything else, for example minimize the activities when are out of date or too old.

As I have mentioned, there are three types of redesign principles and tactics, they are Restructuring, Informating and Minding.

Principle #0: Streamline

It is the most fundamental ground zero principle. This principle is – Remove waste, simplify and consolidate similar activities. This principle aims to streamline the process, minimizing waste, removing complexities which are valueless, erase unnecessary outdated activities and consolidate similar activities.

Real life example: 

I can remember there is an article - Readings 2 - Hammer-BPR-HBR-1990 on WebCT – “Reengineering Work: Don’t Automate, Obliterate “which I have read before, in the article, Ford is taken as a very good example: Before choosing the radical change, Ford need 400 accounts payable clerks, after instituted the new process, Ford has reduced 75% in head count, it is an example of streamline the process.

Restructuring the process

The L.L. Bean Case Study

At the beginning to talk about restructuring the process, Helen has introduced the L.L. Bean Case to us. L.L. Bean is a mail order catalogue company. There are 14 million phone calls per year which is a big number. Anyway the system does not provide an efficient process; the process is very slow and repeated for the pickers pulling a car from one block to another. So, the process is restructured – the new system does not need batch and wait, since the computers send orders to order fulfillment centers directly. Next, conveyor belt with bar code sensors is used to automatically sort orders and direct items to packing stations. The new changes help the process become faster and efficient. To conclude, the whole restructured process is coordinated with the help of IT.

4 Principles for restructuring the process

1. Lose Wait

2. Orchestrate

3. Mass-Cusromize

4. Synchronize

Principle #1 Lose Wait

The main focus for Lose Wait is to reduce waiting time in process links to create value. Common tactics for Lose Wait are Concurrency, Close-Loop, Not Gating Main Process, Continuous Flow and Upstream Relieves Downstream.

Real life example: 

For Upstream Relieves tactic: I would like to apply it into PARKnSHOP, for PARKnSHOP, if the shelf for putting apple juice only can hold 30 bottles, then PARKnSHOP will ask the supplier to pack 30 bottles per pack, so that it saves time and become more efficient when putting apple juice on the shelf.

Principle #2 Orchestrate

The main focus for Orchestrate is to let the most rapid and able enterprise to execute the area that they are good at. Common tactics for Lose Wait are Partnering, Outsourcing, In-sourcing and Routing through an Intermediary.

Real life example: 

For In-Sourcing tactic, UPS World Logistics will in source some process back into the enterprise. For instance, when there’s guitars delivered, to ensure that the guitars is all in good condition (without any destruction), UPS will send the guitars to some musician to check clearly the guitar tuning part. They will help to tune the guitars to ensure they are functioning normally. It’s an example of In-Sourcing.

Principle #3 Mass-Customize

The main focus for Mass-Customize is to flex the process for anytime, anyplace and anyway. Common tactics for Mass-Customize are Flexing Time, Flexing Space, Modularity and Dynamic Customization.

Real life example: 

For the Virtual “try-ons” example (which is an example of Flexing Time & Space), one of the examples is the online album service. Some of them allow customer to customize their online album (e.g. allow them to put the photos in their online album before order), this is an example of “try-on”.

Principle #4 Synchronize

The main focus for Synchronize is to synchronize the physical and virtual parts of the process. Common tactics for Synchronize are Match Offerings (Broadway does not fulfill this tactic), Common Process Platforms (Common Style) and Track Movement

Real life example: 

Fortress and Broadway are examples of company which synchronize the physical and virtual parts of the process. For the Track Movement, take an example of UPS again, UPS will keep track of the product get sent.

 

Informating the Process

AVNET Case Study

During this part, Helen has introduced another example – AVNET. AVNET is a big distributor of industrial electronic components and production supplies. Anyway it encountered some problems – In 90’s customers demand on global sourcing of components. AVNET faced the Time-based competition and shorter product life. How can it share information rapidly along supply chains? The answer is – by informating the process. The Supply Chain processes are redesigned; the information flows are changed using WWW and internet technologies. Moreover, Intranet is used to maintain the marketing encyclopedia, in addition, sales and marketing are also linked more directly to order fulfillment with web based self-service.

3 Principles for informating the process

1. Digitize and Propagate

2. Vitrify

3. Sensitize

Principle #5 Digitize and Propagate

The main focus for Digitize and Propagate is to capture information digitally at the source and propagate it throughout the process as soon as possible. Common tactics for Digitize and Propagate are Digitize at Source, Make the Process Paperless, Make the information Accessible Upstream and Downstream and Shrink the Distance between the Information and the Decision.

Real life example: 

For the Make the Process Paperless tactic, Have you guys ever had buffet in some Japanese restaurant? When you finish placing an order, the cooker will cook the food in front of you, it’s an example of making the order process paperless.

Principle #6 Vitrify

Vitrify stands for glass, it means making information as glass like – “transparent”. The main focus for Vitrify is to provide glass-like visibility through fresher and richer information about progress status. Common tactics for Vitrify are On-demand Information Tracking, On-the-fly Reporting and Analysis and Standard Partner Interface.

Real life example: 

For On-demand Information Tracking, a common example is the Yahoo Auction, when you feel interested in a certain product; you may keep track of the product by adding that product into your track list, so that you can know the trend of your targeted product.

Principle #7 Sensitize

The main focus for Digitize and Propagate is to fit the process with sensor and feedback loops to prompt action. Common tactics are Process Dysfunction and Monitor Environmental Change.

Real life example: 

Web-based Customer Survey is one of the examples. It can be created using some tools or website. Sample questions like “Will you purchase from us again?”, “Will you recommend this product to your friends” etc. So we can get the feedback from customer and therefore improve our product or service.

Case study – Healthcare in Canada

After mentioning the principles, their different tactics and real life examples, I would like to know more about some other real life cases wondering how the principles are being applied. When I research about case study with redesign principle applied, I have read through an article found which is about E-health. What is “E-health”? It is the application of internet technologies to the healthcare area. From the article, It is found that healthcare in Canada is facing many problems. The major problems are excessive waiting times for patients, lack of access to providers and information, high costs of delivery and medical errors. The article has introduced the application of redesign principle to healthcare in Canada which is helpful, here I would like to summarize the principle which can be applied and gives explanations.

Streamline

Although this principle is not mentioned in the article, I think it can be applied in the healthcare system. Since for an existing process which is going to be redesign, there must be unnecessary obsolete activities which can be deleted or similar activities which can be consolidated. For instance, in this case, examples maybe like repeated (similar) checking of information of patient, waste of paper (can be minimize by digitized), unnecessary obsolete activities like out of date or old method of collection of data etc. In sum, I would suggest it can be applied to the healthcare system.

Lose Wait

This principle can be applied when the waiting time for patients and waiting time in processes in the healthcare system is reduced. For instance, waiting times is reduced between when lab results are requested and when the lab results are sent through email to reduce delays. The reduced time in process creates value – increase efficiency and shorten waiting time for patients.

Orchestrate

This principle can be applied when the healthcare providers cooperate and coordinate together to share the workload. For instance, when one hospital has more beds for heart patients than another, the two hospitals can share heart patients between them, as a result both hospitals share similar capacity level and are more balanced and become more efficient. It belongs to Partnering – partner a process with another. (Two hospitals partner together).

Mass-Customize

This principle can be applied when communicating with patients who have different levels of health literacy and different level of interest in managing their own health. For instance, patients can be offered different ways to access healthcare professionals when seeking for advice. (Phone call, email, etc) Both Flexing time and Flexing Space tactics are applied in this case since time and options is expanded and created respectively for the process.

Synchronic

This principle can be applied when tracking the movement of medical suppliers, lab results and patients electronically in order to ensure the information can be accessed immediately. This is an example of the Track Movement tactic.

Digitize and Propagate

This principle can be applied when health records, workflows and information are digitized. This help to share information faster, more accurate. The elimination of paper in processes and deliver of data entry to patients are example of Make the Process Paperless and Make information Accessible Upstream and Downstream

Vitrify

This principle can be applied when the information about patients is shared (Anyway the personal information is not shared). As a result, problems and opportunities within the system will be clearer.

Sensitize

This principle can be applied when sensors is used to detect abnormal things and cases within the system. For instance, a patient has been waiting longer than usual. When this abnormal case is detected, software agents can take action such as notifying the care provider responsible for the patient. So the case is cared in a more rapid way.

To summarize, the above mentioned principles can all be applied in the healthcare system in Canada.  In order to ensure success of a company in implementing Business Process Reengineering, the above redesign principles and tactics should be considered since they are important reference to the redesign approaches.

Conclusion 

To conclude, after applying the mentioned redesign principles, several problems can be solved in this case which include patient waiting time, medical error, high healthcare costs, access to healthcare and access to health information. It is proved that redesign principles are really useful and they contribute a lot in the redesign process.