PROCESS

INNOVATION
By:-
Kriti Mathur- 76
Abhishek Kumar- 85
Nishant Tyagi- 86
Manisha Shrestha- 95
What Is Process?
A Process is combination of facilities, skills and technologies
that are used to produce products or provide services.
What is Process Innovation?
Process innovation combines adopting a process
view of business functions with the application of
new ideas and technology.

Process innovation depends on the transfer of
knowledge and information.
For improving productivity.
Increase employee job satisfaction.
Deliver enhanced product or service value
to the customer.
For controlling and reducing process
wastage.
For controlling and reducing work in
process inventories.
For reducing processing time & costs.

Need For Process Innovation?
Process innovations builds an adaptive
business process management system (BPMS).

For manufacturing companies.

For service companies.
Focus
Steps in Process Innovation
Successful process innovation requires the
following:

Proper Planning.
Creating a multifunctional team of Technical,
Production and Maintenance Department.

Continued

Selecting a small group of operators and
workers, seeking their participation in
process innovation through
communication, counselling, training and
rewards etc.
Pilot run of the new process.
Observations and improvements.
Large scale training of entire work force.
Commercial use of new Process.



Attributes of Innovative
Processes
1. Elimination or decrease in manual processes.
2. Coordination of processes across distances.
3. Change of process sequence; allow parallel
processes.
4. Capturing process information to understand
process better.
5. Improved analysis of information and decision
making.
6. Capture and distribute organizational
information.
7. Monitoring process status.
8. Coordination of tasks and processes
(cross functional).
Tools For Process Innovation

Developing Assembly Charts for studying conceptual
framwork of material flow .
Developing Process Charts for studying conceptual
framwork of process flow.
Computer Aided Designing (CAD), Computer
Simulation.
Time Study for comparing time taken for various
operations and tasks.
Value Engineering and Analysis.
Business Process Reengineering.
Benchmarking.
Using Change Management Strategies.
Financial Appraisal.
Innovation Strategies

Automation
1. More web information.
2. Improve IVR service.
3. Increase self-service.
4. Reduce access to files.
Process Sequence
1. Parallel processing.
2. Virtual linkages.
3. Simultaneous entry
and review.
Geographic
1. Multiple sites on
campus.
2. Coordination with other
departments.
Tracking
1. Transaction volume.
2.Document management.
3. Priority processing.
4. Transaction type.
Continued
Integration
1. Coordination of activities.
2. Policy and process
alignment.
3. Scheduling and planning.
Information
1. Process cycle times.
2. Peak processing.
3. Customer profiles.
Analysis
1. Management
Information.
2. Scheduling,
staffing, process
design.

Knowledge
1. Knowledge Management.
2. Standard operating
procedures.
3. Regulation and statutory
changes.
Techniques Of
Process
Innovation
1. BPR
Business process re-engineering is also known as business
process redesign, business process change management.
Business process re-engineering (BPR) is a technique by
which organizations fundamentally rethink how they do
their work in order to dramatically improve customer
service, cut operational costs, and become world-class
competitors.
It is more than just business improvising.
A key stimulus for re-engineering has been the
continuing development and deployment of sophisticated
information systems and networks.

Continued
Reengineering assumes the current process is largely
irrelevant - it shall not work on future, it's broke, forget it.
Start afresh. Such a clean slate perspective enables the
designers of business processes to disassociate themselves
from today's process, and focus on a new process.
Reengineering starts with a high-level assessment of the
organization's mission, strategic goals, and customer needs
Re-engineering identifies, analyzes, and re-designs an
organization's core business processes with the aim of
achieving dramatic improvements in critical performance
measures, such as cost, quality, service, and speed
Continued
2. TQM
Total: Make up of the whole. . Quality: Degree of
excellence a product or service provides. Management:
Act, art, or manner of handling, controlling, directing, etc.
Therefore, TQM is the art of managing the whole to achieve
excellence. TQM is defined as both a philosophy and a set of
guiding principles that represent the foundation of a
continuously improving organization.
It is the application of quantitative methods and human
resources to improve all the processes within an
organization and exceed customer needs now and in the
future.
TQM integrates fundamental management techniques,
existing improvement efforts, and technical tools under a
disciplined approach.
Advantages of TQM
Encourages a strategic approach to
management at the operational level
Provides high return on investment through
improving efficiency
Works equally well for service and
manufacturing sectors
Allows organizations to take advantage of
developments that enable managing
operations as cross-functional processes
Fits an orientation toward inter-
organizational collaboration and strategic
alliances through establishing a culture of
collaboration among different departments
within organization

Diff between BPR vs TQM
Approaches
Davenport points out that the Major difference between
BPR and other approaches to organization development
(OD), especially the continuous improvement (Kaizen)
or TQM movement, is: Today firms seek not fractional,
but multiplicative levels of improvement (10times)
rather than 10%.
Continued
Johansson

provides a description of BPR relative to other
process-oriented views, such as TQM and JIT as under:
"Business Process Reengineering, although a close
relative, seeks radical rather than merely continuous
improvement. It escalates the efforts of JIT and TQM to
make process orientation a strategic tool and a core
competence of the organization. BPR concentrates on
core business processes, and uses the specific techniques
within the JIT and TQM toolboxes as enablers, while
broadening the process vision."

3. Lean Production System
It is the western term for Toyota Production
System. This production philosophy is now
widely used in auto industry around the
world. This system has been modified
everywhere in the auto industry, adapted to
some extent on the local industrial situation
or practices, however its core principles
remain the same. This system is not only used
in auto industry but also in other non-
auto industries involved in assembling
process.

Benefits of Lean Production
System
Waste Reduction.
Production Cost Reduction.
Manufacturing Cycle Reduction.
Labor Reduction.
Inventory Reduction.
Production Capacity Increase.
4. Kaizen
Japanese strategy for continuous
improvement
Not a single day should go without any
improvement
Customer driven strategy for improvement
Quality first, not profit first
Consists of two major components
Maintenance
Improvement

Benefits of Kaizen
Reduces Waste.
Improves.
Immediate Results.
5. 5S Concept
Refers to the five words:
Seiri.
Seiton.
Seiso.
Seiketsu.
Shitsuke .

6. Six Sigma
Six Sigma focuses on making
improvements in all operations within a
process, producing results more rapidly
and effectively.
EXAMPLES OF PROCESS INNOVATION
1. The Float Glass process developed by Alistair
Pilkington, in which plate glass is manufactured by
drawing glass out across a bed of molten tin (Quinn,
1991). Prior to the introduction of this process
innovation, plate glass used for shop windows and
office windows was expensive and of poor quality
largely because the only way of getting a flat
surface was to grind it and polish it. The Float Glass
process at a stroke eliminated the need for time
consuming grinding and polishing it, leading to a
dramatic fall in costs. The result can be seen in the
public buildings constructed in the last thirty years,
where everything from office blocks and hotels to
airports and shopping malls now employ large
expanses of glass
Continued
2 .Precision Ring Makers (PRM) made components
to high specifications,largely for the aircraft
industry. Its main development work was focused
upon process improvements. It had developed
low cost tooling techniques which resulted in
great savings: for example, tooling changes for
thin guage shims using conventional techniques
cost about 4000, while with PRMs technique the
cost was about 30. It had purchased CNC
machines for milling and engraving, and was
planning to network the CNC machines to its
computer system so that programmes could be
transmitted directly to production.
Continued
3. The humble photocopier, developed by Chester
Carlson, may not sound like a spectacular
innovation, and yet it had a big impact on the
way in which administrative systems in offices are
organised.

4.Fabrication and Assembly Company (FAC) was
primarily interested in welding technology. A
recent example of process improvement was the
application of plasma cutting instead of drilling,
in the manufacture of heat exchangers and
plates. A flushing system to prevent the build-up
of sludge in the air chambers of the water tables
which were being manufactured, was also
developed to assist the introduction of plasma
cutting.