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3 Business Process Management Strategies

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business process management

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Business process management is the starting point for an enterprise looking to improve efficiency and add value to the end consumer. There are several options in creating a robust business process management strategy, and knowing what is best for you will depend entirely on your goals, budget, culture, and leadership.

What is Business Process Management?

In general, business process management is an system of activities that seek to discover inefficiencies and create automation, systems, and processes to close the gap between what is happening and what the desired result is. Several strategies can be implemented to reach this goal including:

Software

There are several software solutions on the market designed to address a variety of needs. Cloud-based technology has allowed more connectivity then ever before, streamlining connections between departments, locations, vendors, and even customers.

Application development has made it easier to integrate with legacy systems and don’t require heavy programming requiring significant IT support or coders. Easier to understand and use, and faster to implement, BPM software solutions are a great tool.

Complete software packages are available, or they can be implemented on a smaller scale for specific business work flows such as HR, AP/AR, Inventory, Customer Management, or Manufacturing Processes, among others.

BPM Consultants

Business Process Management Consultants can work in a variety of ways to support an organization’s needs. Sometimes when a software solution is implemented, a consultant from the software company is assigned and works through the integration process. This can be very robust and time consuming, or, it can be quick and minimal, and it’s important to know what you need, and what you are paying for.

Other consultants are “software agnostic”, meaning they aren’t tied to a specific software, but may offer a methodology that discovers what business processes exist and how to best manage them.

BPM Consultants who specialize in Lean Manufacturing Concepts (ie. Six Sigma, Kaizen, TPS), are specially trained in strategies that reduce waste while maintaining high standards of production, safety, and morale.

A Combination of Software and a Business Process Management Consultant

While some industries may need only software, or only a consultant, most businesses will benefit from a combination of both. A Lean BPM consultant helps in uncovering, understanding and documenting business processes in ways that reduce waste and add value. Implementing software solutions without first getting  clear  the processes on paper will result in an ineffective fix and unforeseen errors that will have to be corrected.

Outside eyes, or the objectivity of a consultant, allows for adoption of new solutions that those within the organization have likely gone “blind” to. This objectivity allows for changes without the sometimes messy emotions, history, politics, or other behaviors that have halted progress in the past.

This also allows for the best decision-making as the entire strategy is pre-planned, implemented, tested and revisited. In essence, the support of a consultant makes the software options cleaner and more effective.

 

Looking for business process management from a skilled, lean consultant? Ready to dig in and really understand your processes and prepare them for a software implementation? Contact PBEX, LLC today to learn more or to get started.

Lean Process Improvement and Inventory Management

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lean inventory management

Oftentimes manufacturing organizations find that while their production processes may run well, there is a need for improvement around inventory management. Lean process improvement tools can offer a huge benefit to improve inventory management. Businesses, especially those in retail and manufacturing are finding that lean process management helps them reduce costs, improve customer experience and increase agility, which all lead to increased profitability.

What is Lean Process Improvement?

Lean process improvement is an overall approach that focuses on reducing waste within processes. This waste can come in the form of more efficient use of materials, reducing redundancies and overlap in work flow, and creating more effective processes to improve employees’ work. Popularized through its success with the Toyota Production System, lean methodology is being used by efficiency focused organizations with a continuous improvement mindset.

How Can Lean Tools Help in Inventory Management?

Lean inventory management focuses on refining processes in order to improve quality, reduce cycle time, be more efficient, and reduce costs. By understanding the value of your inventory and the management of it, how it moves through your processes, and how it adapts to demands and lead time changes, organizations are better able to make management decisions and increase profitability.

Inventory management starts with understanding:

Independent and dependent demand needs. Do you have inventory to meet customer demand? Are Sales, Operations, and Production on the same page? Does everyone understand when and why demand fluctuates or how to make adjustments when it does un-expectantly?

Types of inventory you require. Raw material and equipment/tool management is just as important as deliverable products. Likewise, understanding what is currently in the process of being produced and/or delivered effects profits, purchasing, and customer service.

Associated Inventory Costs. Knowing how much time passes between when a product needs to be ordered in order to receive it in time for production (or lead time), ensures you never run out of product. Lean process improvement can be used to calculate holding, ordering, and shortage costs to reduce wasteful spending and costly downtime.

Why does it matter?

Lean process improvement of your inventory means:

  • Improved customer service (meet the demand)
  • Keep inventory costs low (keep what you need in stock and not more)
  • Know your reorder points and safety stock levels
  • Take advantage of quantity ordering when desired
  • Standardize processes for better quality output
  • Improve communication and collaboration between departments

Inventory Management Systems

Because PBEX, LLC focuses on overall systems and processes, we are software agnostic, meaning, we don’t sell inventory management systems. Instead we teach organizations how to improve current processes to make them more effective. If software is chosen to then support, and even further inventory management, it will be more efficient. In fact, you can expect to see:

A 50-100% reduction in quality defects

20-50% Improvement in Productivity

60-80% Set Up Time Reductions

30-60% Improved Safety Performance

40-75% Inventory Reduction

30-50% Floor Space Reduction

And a complete review of your business processes to create long-lasting efficiency, agility and profitability.

Contact me today to learn more about how as a Lean Process and Inventory Expert I help businesses simplify and improve the way they do business to better grow and manage. Together, we will create a continuous improvement culture and healthier bottom line.

Get New Employees Up to Speed Fast with Business Process Improvement

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business process improvement

In my years as a Business Process Improvement Coach, I have been called in to work with companies who have a new work force. In one particular case, a company acquired another, complete with an unskilled labor force, and needed to train them all quickly. The need for staff training can be created from mergers, acquisitions, seasonal or temporary employment, or a jump in production demands requiring increased staffing. It can also happen when employees are transferred to a new department, or with any big shift in management or restructuring. What if management took a proactive approach to change?

The need for business process improvement is always noticed at times of transition. Fresh perspectives can offer feedback and this feedback should lead to improvements. Whenever new job positions are created, or new employees require training, business process improvement can get everyone on the same page and be more effective than ever before.

Business Process Improvement and Human Capital Management

Human Resources is a highly documented, regulated, and important responsibility. With payroll being the highest expense in most businesses, efficiency and productivity in the area of Human Capital Management can make a huge impact on the bottom line. Overall, employers are seeking business process improvement in the areas of:

Increasing Employment Engagements. There are many distractions that can vie for an employee’s time. How do we decrease these distractions in a way that maintains high morale and improves engagement?

Increased Workflow Productivity. What systems, technology and processes can be put in place, automated, and tightened up? What training is needed to increase productivity?

Reducing Employee Turnover. Some turnover will always be expected, as people, places and circumstances change. However, high levels of turnover, or even turnover above the expected attrition, lead to hidden expenses and loss in productivity. What is frustrating and unaddressed in our workforce? Where can we be proactive, rather than reactive in relationship to staff management?

Reducing Onboarding Time. When we do have employee turnover, how can we shorten the time it takes to recruit, hire, train and get employees to the level of production we require?

How a Business Process Improvement Professional Helps

Business Process Improvement Professionals, such as myself, have an objective, trained eye to see what’s working and what’s missing. Through several assessment tools, we are able to pinpoint redundancies, holes, strengths, weaknesses and more. We can create job descriptions, job instructions, build processes, and improve current workflows to maximize effectiveness and engagement. By creating consistent business processes that take into consideration what the assessments are telling us, we can get everyone on the same page, and quickly up to speed in becoming a successful, productive, and happy member of your work force.

Contact me today to learn more about how I help businesses simplify their human capital management through business process improvement strategies. Cleaner processes create faster results, better productivity and employee satisfaction. Together, we will create a continuous improvement culture and healthier bottom line.

7 Benefits of a Lean Business Process Consultant

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business process consultant

Every business is comprised of multiple business processes: sales, procurement, production, invoicing and more. The more streamlined these processes are, the more likely they and/or the business are to be efficient and profitable. Unfortunately, more often than not, businesses discover holes in the effectiveness of certain processes because they have morphed over time, becoming what I refer to as a Frankenstein process.

Business Process Management

The concept of business process management is the idea that business processes should be examined, cleaned up and monitored. Systematically looking at the overall health of business processes will result in the overall health of the enterprise. Software tools, as well as a business process consultant, can be used to support the streamlining of processes to create more efficiency.

Lean Management

Lean Management is an organizational style based on the concept of continuous improvement and reduced waste in manufacturing. Based on the Toyota Production System and studied for decades, Lean Management is the standard for how manufacturing is done. However, more and more businesses are looking to lean management styles in every type of business.

My Role as a Lean Business Process Consultant

As a Lean Business Process Consultant I use Lean Management styles in my approach to business process management. This means I evaluate current business processes and walk through them with a variety of Lean tools. We create standard practices and implement them and put systems in place to manage them for continuous improvement.

7 Benefits of a Lean Business Process Consultant

What can you typically expect to gain by working with PBEX?

A 50-100% reduction in quality defects

20-50% Improvement in Productivity

60-80% Set Up Time Reductions

30-60% Improved Safety Performance

40-75% Inventory Reduction

30-50% Floor Space Reduction

A complete review of your business processes to create long-lasting efficiency, agility and profitability.

Contact me today to learn more about how as a Lean Business Process Consultant I help businesses simplify and improve the way they do business to better grow and manage. Together, we will create a continuous improvement culture and healthier bottom line.

The Value of Lean Training

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Lean Training

One of the resources I offer is Lean Training. Using several Lean tools, we run through simulations several times in order to incorporate new processes to generate huge results. The practices (or tools) can be used in everything from inventory management to streamlining the process of on boarding a new customer. That’s what makes it so powerful to learn- it encompasses continuous learning and allows you to use it in every faucet of business.

What is Lean?

The term “lean production” was invented by James Womack in his book, “The Machine That Changed the World” in order to describe the revolutionary process created by the Toyota Production System. Used primarily in mass production concepts, it is a system designed to eliminate wasteful practices. Lean Management then is the journey, as you never ‘arrive’ or complete continuous improvement, of managing with the Lean tools in mind.

What does Lean Training include?

In Lean Training sessions we teach several of the tools to help organize and streamline business processes to be more efficient. After classroom training, facilitated hands on implementation is conducted to ensure that the skill has been learned and can be used.  Some of the tools you will learn about include, but are not limited to:

5S: this tool allows us to organize through 5 steps, namely: Sort, Set in Order, Shine, Standardize and Sustain, and in some cases we also add a 6th S for Safety.

Cellular Flow: A system structure that increases accountability, efficiency and quality by having teams work together rather than be departmentalized.

Standardized Work Flow: Systemizing and standardizing work processes is critical in reducing waste. We discover where someone is duplicating a process or doing it differently than others, or where no business process exists and create or modify it.

Continuous Flow: This process helps us find areas of non-value added time and reduce it.

5 Whys: This Lean tool helps you to get to the root cause of problems so they can be addressed with true, long-lasting fixes rather than “band-aid” ones.

A3 Problem Solving Method: Your Lean Training will teach you how to solve any problem that arises with more ease. Systematic problem-solving done on a single piece of paper allows you to cut to the solution faster than ever.

 

As a practitioner and educator of Lean for many years and a TWI Certified Trainer, we will not only work through the specific challenges in the business, I will teach you how to continue to improve with the Lean tools. As your “Lean Sensei”, I use these non-software based solutions that can be implemented quickly and easily to reach the goals you are desiring.

Contact me today to learn more about how lean manufacturing can simplify and improve your business processes making them easier to understand, perform and manage. Together, we will create a continuous improvement culture and healthier bottom line.

Dealing with a Frankenstein Business Process? What It Is and How to Fix It

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I have the privilege of working with forward thinking businesses. These businesses know something isn’t quite right, but they can’t always put their finger on it. I’m called in and using a variety of techniques, discover and correct workflow holes and implement process improvement.

Birth of a Process

The first time that a series of steps are performed to complete a task, a process has been born. I use the word “born”, instead of developed, as rarely are processes designed. A business process exists because someone saw the need for something to get done. All of our daily activities are conducted through processes, some are good and some are poor. We recognize the poor processes typically through things that frustrate us. For example, standing in line for hours waiting for a representative to take five minutes of their time to explain the many pages of forms required to fill out. Poor processes can be the state they are in due to something I call a Frankenstein Business Process.

Typical Development of a Business Process

Most processes change many times. They may change in response to changes in technology, changes in products or services and/or changes in customer requirements.  Most often, however, a business process changes for various other reasons, not always in a way best for a business.

One of my responsibilities when working with a business is to ask why they do things the way they do. The typical response is that no one knows why and that it is how they have always done it. One business I was called into found themselves in a state of panic and urgency because the company they relied on for their envelopes had gone out of business. It was an important part of their workflow and they weren’t sure how to manage the change.

It turned out that the specialty envelopes were ordered once because the standard ones were not available, and they continued to order believing there was a requirement for them when there really wasn’t. On the surface, this may seem to be a small issue, but it really created a great deal of problems as a new vendor couldn’t be identified and it was effecting their production to not have this particular and critical supply.

In this case it was envelopes, but in another scenario, it could be a change in adhesive, for example, that effects the final product output. This, in turn could also affect price, skills needed, equipment changes and more.

The Frankenstein Process

Over time, business processes will naturally change. We hire new employees with a mix of education and experiences who change the processes to try to make them better, or in response to poor performance of the business. These changes become a “Frankenstein” process, that is, steps have been added or removed without really looking at how the process works overall. Processes like these are ingrained with wasteful, frustrating and unproductive steps that end up costing a business money, or worse yet, employees or customers.

I believe it doesn’t matter how great your product or service is, your business is only as good as its processes.

Innovation’s Opposite

The biggest curse to innovation is that of “We’ve always done it that way”. When we really look at the need, regardless of how things were done before and independent of the fixes that were put into place, we can discover waste and inefficiencies and replace them with new, improved processes that are long-lasting, rather than quick, Frankenstein fixes that eventually fail.

Contact me today to learn more about how I help businesses to simplify and improve their business process making them easier to understand, perform and manage. Together, we will create a continuous improvement culture and healthier bottom line.

What is Value Stream Mapping?

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Businesses who have an end product, such as in manufacturing, use Value Stream mapping to help streamline activities, find holes or bottlenecks in their processes, or gain more clarity about how information and materials move through their organization. Value Stream Mapping is one tool of Lean Manufacturing.

Both Value Stream Mapping (VSM) and Value Stream Improvement (VSI) are sometimes used interchangeably, but the subtle difference is that VSM focuses on manufacturing and VSI is used more for the entire organization, including in non-manufacturing areas such as front office processes. It can be used in a variety of industries and I have used it successfully with a library, a software company, a county workforce agency, a construction company and others.

More and more businesses are looking at this Value Stream Improvement model, regardless of industry, to accomplish their goals.

“…Lean is much more than manufacturing. Peter Holtgreive led our software company into Lean with impressive results through value stream mapping and several kaizen events for our services and finance teams.” -Scott Ford

What is Value Stream mapping?

Value Stream mapping is a visual tool that defines information and material flows within a business. It clarifies responsibilities, practices and workflow with the overall goal of increased efficiency. Efficiency can come in several forms, such as reduced costs of production, increased productivity and less waste, just to name a few.

Value Stream Mapping Example

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Value Stream Mapping can be used for processes of all types including employee onboarding, role and/or workflow clarity, accounts payable or receivable, warehouse functions, purchasing/working with vendors and more. It can be used to maximize consistency in every department of an organization and can be accomplished online, offline or a blend of both.

As a tool for efficiency and effectiveness, it can be used to create an ideal scenario versus actual scenario, to help make changes in management, processes and even culture. VSM looks at how well all of the processes work together, focused on material/service flow and information flow. There are typically many metrics included in each process step and in a lot of cases it goes through many departments, usually starting at initial client contract through to invoicing.

Value Stream mapping takes a specific objective and helps to measure and compare that objective alongside the entire organization’s objectives to make sure that all processes are aligned with the company’s values and capabilities.

How do I begin Value Stream mapping?

Value Stream Mapping usually begins with a designated team of people from inside the organization tasked with leading the project. It is also recommended that “outside eyes”, a consultant or Value Stream facilitator, be present to help guide the conversation and point out holes that may be overlooked by people who are seeing things day to day.

Here’s a specific example of this: I went into a company to facilitate a Value Stream Mapping session on how they receive sales orders for their custom made products.  Once we mapped the current state it became obvious how poorly the entire process was working causing frustration throughout the company.  As outside eyes, I was able to point out and address both a waste and a broken process they wouldn’t have addressed without me.

In Value Stream mapping we:

  1. Plan the event by defining the scope and collecting data.
  2. Extract the knowledge of those who do the work, create a snapshot and visibly show how the process works or doesn’t work – the Current State.
  3. Identify opportunities for improvement throughout the value stream where the processes can work better together.
  4. Design the Future State map ensuring that the opportunities improvements are taken into account while maintaining alignment with the mission and vision of the company. Create a project plan on how to get from the Current State to the Future State.

After the Value Stream Mapping is complete, we track, measure and manage follow through to make sure the new process is working as intended. We adjust or correct as needed.

Value Stream mapping is an effective tool for bringing clarity and efficiency to processes in business. As your outside eyes, I help you by facilitating Value Stream mapping and other efficiency boosting, non-software based solutions that can be implemented quickly and easily to reach the goals you are desiring. I often use VSM to find out what the rest of my engagement with a client might be, as it really helps us develop a plan on how to get where they want to and what needs to be done to get there.

Contact me today to learn more about how Value Stream mapping can simplify and improve your  business process making them easier to understand, perform and manage. Together, we will create a continuous improvement culture and healthier bottom line.

What is Lean Manufacturing?

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What is Lean Manufacturing

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Lean Manufacturing is a business method focused on eliminating wasteful practices in manufacturing. It is also referred to as Lean Production, Lean, or Toyota Production System (TPS). Lean focuses on value and reduces everything that doesn’t create it by using a set of practices to identify both value added and non-value added (waste) steps within manufacturing business processes. Auditing current systems and processes and implementing changes to improve workflow, including adding automation when needed, is the broadest overview of Lean.

What is the Goal of Lean Manufacturing?

The bottom line goal of Lean Manufacturing is to create efficiency, and therefore the most profitable manufacturing process. The objective of reducing all areas of waste, including that created from both unevenness in work load and overburden, is also a part of Lean.

TPS looks at 8 areas when discovering true wastefulness- things done that don’t add value and are unneeded for the final product outcome. These 8 areas are summed up in the acronym “DOWNTIME”:

Defects: Anything done incorrectly, not meeting customer requirements, requiring rework or scrap
Over-production: Building more than what is required- leads to excess inventory
Waiting: Areas of down time in production
Non-Utilized Talent: Not engaging employees in continuous improvement
Transportation: Additional movement of product within the facility
Inventory: Carrying more than what is required, especially “frozen” inventory
Motion: This refers to damage and wear and tear (both to people and equipment)
Extra-processing: Doing more or using more than what is required for the desired outcome

Implementing Lean Methodology

Implementing Lean practices is more than simply using tools. While Lean practices focuses on having an efficient and effective work flow, a cultural shift must happen as well. The organizational value of continued improvement must be adopted. Business agility is required, which means all employees and management must be flexible and willing to change.

True transformation is open-ended and not all business cultures allow for that. Therefore, Lean Manufacturing, in order to offer the long term benefits, must be embraced at all levels and incorporated into onboarding, training, management practices, production, research, and more. This change will not happen overnight and does require a long term commitment to the continuous improvement effort and cultural change.

How PBEX LLC Supports Lean Manufacturing

Trained in Lean Manufacturing Methods, PBEX LLC helps by providing:
• Lean Process Management
• Kaizen
• Gemba Walk
• 5S
• Visual Management
• Kanban
• Value Stream Mapping
• Facility Layout
• Cellular Flow
• Problem Solving

As your “Lean Sensei”, I use these non-software based solutions that can be implemented quickly and easily to reach the goals you are desiring. Contact me today to learn more about how Lean Manufacturing can simplify and improve your business processes making them easier to understand, perform and manage. Together, we will create a continuous improvement culture and healthier bottom line.

7 Benefits of BPM: Business Process Management

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Business Process Management

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There is a lot of buzz in the business community about workflow improvement via Business Process Management (BPM) – both through software and in tangible practices. Business Process Management, in general, is a combination of systems and procedures built to reduce redundancies and improve the bottom line, but in my opinion, their main role is to create a culture of continual improvement.

Business Process Management and Improvement Culture

A research study conducted by AIIM, shows the benefits of BPM to be more than just the desire for increased productivity. While over 80% of companies did see an improvement in productivity, they also saw the culture shift into one of continuous business process improvement. Over 75% saw improved consistency and quality, which resulted in improved customer satisfaction.

With so many companies looking for the edge that positively effects their bottom line, and those pushing for better customer satisfaction, it seems BPM is the answer.

7 Benefits of BPM

My company, PBEX, LLC offers a variety of hands on BPM techniques, but none of them matter if you aren’t aware of what you are looking to accomplish, or without knowing what to expect. Here are the top 7 benefits of implementing BPM tools in your business and/or workplace.

Decrease Costs

When efficiency is improved, costs  go down. This could be a simple reduction in paper and copy costs or better use of employee’s work time. Cost savings can also come in better inventory management to reduce frozen capital from over purchasing, or even in being able to take advantage of vendor discounts or sales.

Increase Revenue

Eliminating wasteful steps and redundancies can increase revenue by allowing products to be processed faster, and or creating a higher yield. A streamlined approach to hiring and training new staff means production can happen sooner and be more effective. If onboarding took less time, could that change your bottom line?

Improved Agility

The ability to quickly adapt to market changes is a sign of organizational intelligence. Truly understanding your processes and having better business process management, gives you the flexibility to know when to buy, when to hire, and when to reduce costs to keep things moving forward and profitable.

Better Customer Focus

It may not seem sexy, but consistency is the secret ingredient to making customers happy.

Source: The Three C’s of Customer Satisfaction

Delivering a consistent experience happens when all the cogs of the machine are running well. When every player knows their role, is held accountable for results, and is empowered to follow a process, that creates consistent results.

Better Compliance

Clean processes keep things from “falling through the cracks” and this is important when dealing with compliance requirements. Processes need to be followed in order to keep documents and data secure and seen only by the right people. Business process management looks at these procedures to make sure they are air tight.

Amplified Staff Satisfaction

How many times have you heard a staff say these things:

“We do it that way because that’s the way it’s always been done.”

“It’s stupid, but that’s how they want it.”

“I think this is a waste of time (and/or money) but I can’t change it.”

Often these comments are disempowering and hurt morale. However, when these steps are looked at both at a micro and macro level, employees feel heard. From this place, redundancies can be eliminated and/or employees can get a better understanding of a potentially misunderstood component within the framework of the bigger picture.

Increased Productivity

Of course, the biggest pain BPM resolves is that of sluggish or under-optimized productivity. A review of processes from an outside, objective, and trained eye is all it takes for many companies to clean up their business processes to increase productivity.

How PBEX LLC Helps with BPM

Business Process Management can happen in a variety of ways. Some of the methods we use include:

  • Lean Process Management
  • Kaizen
  • Gemba Walk
  • 5S
  • Visual Management
  • Kanban
  • Value Stream Mapping
  • Facility Layout
  • Cellular Flow
  • A3 Problem Solving

These are non-software based solutions that can be implemented quickly and easily to reach the goals you are desiring. Contact me today to learn more about how business process management can support your desire for a continuous improvement culture and healthier bottom line.