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Chapter 7 Business Process Redesign Reference: Tan, A. (2007). Business Process Reengineering in Asia: A Practical Approach, Pearson Education, Singapore.

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Presentation on theme: "Chapter 7 Business Process Redesign Reference: Tan, A. (2007). Business Process Reengineering in Asia: A Practical Approach, Pearson Education, Singapore."— Presentation transcript:

1 Chapter 7 Business Process Redesign Reference: Tan, A. (2007). Business Process Reengineering in Asia: A Practical Approach, Pearson Education, Singapore.

2 Objectives To understand the techniques that could be used for redesign process. To apply the template given for redesign.

3 Introduction The objectives: to meet the customer needs and to achieve drastic improvements in process efficiencies and reduce operating costs. This can be based on inputs from the business process analysis.

4 Introduction Techniques for high- level redesign Assumption surfacing Idea generation Selection and integration Process validation HIGH LEVEL OBJECTIVES Assumption Surfacing Assumption Challenges Process Validation Examine Modify Selection & Integration Evaluate & Select Integrate & Improve Idea Generation Ideas Options Figure 3.1: High-level process redesign methodology

5 Techniques- Scenario 1.Patient arrives & register 2.Initial consultation 3.Patient goes for Diagnostic tests 4.Pays for test 5.Patient carries the result 6.Main consultation 7.Treatment 8.Pay for consultation & treatment 9.Fixes next appointment 10.Brings prescription to pharmacy 11.Collects medication 12.Pays for medication 13.Patient leaves SPC Figure 3.2: Current Process Flow for a Specialist Private Clinic

6 Assumption Surfacing Involves the identification of stakeholders and the surfacing of assumptions. Reengineering concerns with changing old ways of doing and thinking things. Assumptions need to be surfaced and challenged. For example: who is the customer- are the assumptions made about the customer reasonable? How many stakeholders involved?

7 Assumption Surfacing- Template Simple template based on the scenario given in figure 3.2 What Template Getting cure is important to the patients Collecting payment is important to us Specialized equipment is required for test Who Template A doctor is required to perform diagnosis/prescribe treatment A patient must be ill before visiting SPC A patient must move from one test station to another

8 Assumption Surfacing- Template Where Template A patient can only be diagnosed at the SPC A patient must collect medication in person A patient must move from one test station to another Why Template A patient must undergo tests in order to determine his condition A patient’s condition must be known in order to give him treatment Initial consultation is required to determine what tests are appropriate When Template A patient must be diagnosed before he can be treated A patient must undergo initial consultation before taking tests A patient must pay for consultation before leaving SPC How Template A patient can only be diagnosed by going through tests A patient can only be tested by taking sample or doing a scan, etc.

9 Assumption Surfacing The template can be used as a guide for this stage. Next step is to challenge the assumptions made earlier. For example; AssumptionsChallenges What template Getting cure is important to the patients Staying well is important to our patients Getting cure quickly, least cost, risk and hassle is important to our patients Collecting payment is important to us Continue to exist & to be of service is important to us Specialized equipment is required for test Some tests can be performed with commonly available equipment

10 Idea Generation Each of challenges can generate many ideas. Challenges specify what to be achieved and ideas specify how they are to be achieved. Brainstorming can be used as one of the method. During brainstorming session, you should try to open every possibility. Ideas should only be evaluated once the brainstorming session is finished.

11 Idea Generation For example: AssumptionsChallengesIdeas What template Getting cure is important to the patients Staying well is important to our patients. Getting cure quickly, least cost, risk and hassle is important to our patients Establish preventive care program- new line of business. Better patient education & counseling Collecting payment is important to us Remuneration? Continue to exist & to be of service is important to us What are alternative sources of funding? Continued the high standard of affordable health care Specialized equipment is required for test Some tests can be performed with commonly available equipment Diagnostic test-kits( self administered tests)

12 Idea Generation The next step- to organize the list into a meaningful groups of ideas, which later will become an option. Allow the options to be implemented independently. Some guides: What ideas are similar or seem to be based on the same theme? In what way is each option different? What ideas do not seem fit anywhere? Are there any options that are related to each other?

13 Idea Generation The following options are developed for the specialist private clinic. Health Education Center Preventive care program for high-risk groups General education on health-care options, costs, etc. Self-registered Kiosk Patient registers himself/herself on arrival Prints routing card with shortest/fastest route

14 Selection & Integration Select one or more options based on their impact to customers and organization. Not to eliminate / reject alternative but to set a priority. Objective: to allow the team to obtain a consensus on which options must be given priority Before evaluation and selection process, everyone must have a clear vision of the ideas – objective, feasibility, implications, etc.

15 Selection & Integration Selection criteria must be established: Customer benefits Organization benefits Aversion factors

16 Selection & Integration Customer benefits Quality and effectiveness Speed Responsiveness Accessibility Comfort Satisfaction, etc

17 Selection & Integration Organization benefits Operational saving Increased productivity and efficiency Increased capacity Strategic advantage Enhanced image and reputation

18 Selection & Integration Aversion factors- relate to negative impact Cost of implementation Level of difficulty Risk

19 Selection & Integration After criteria have been set for each option, you can add weight to each criterion from 0 to 1 based on importance. The team have to score each of option against the attribute for customer and organization benefits. Based on -3 to 3 (-3 - erosion of contribution, 0 - no effect and 3 – significant contribution) For aversion factor scoring is based on -3 to 0 since all the criteria refer to negative impact of performance.

20 Selection & Integration OptionsQuality/ effectiveness Speed/ responsiveness Operational saving CapacityCostDifficulty Customer benefitsOrganization benefitsAversion Factors Figure 3.3: Format to evaluate each opinion

21 Selection & Integration Criteria may vary based on the selected process The options defined are not for comparison. For rating, each participant must question the impact of each option has against the rest. Then create a final table to record the total score of each option. Using the final score, average the score and multiple by each criterion’s weight (if any), and add the result for each column to compute the weighted score for each option Choose the options that have satisfy all benefit criteria and achieve a win-win situation. Must not interfere with others negatively and easy to integrate.

22 Selection & Integration

23 Next step, integrate the selected options into a new process May require additional ideas or enhancement IT could be used to improve overall design Example: Automation Information Sequence Tracking Analysis Integration and etc.

24 Summary At this stage, a template could be used to simplify the process redesign Through the surfacing assumption, challenges and ideas can be generated. Each option or ideas should be evaluated by giving a score the criteria involved. The options that have a highest score or meet the needs should be considered for redesign.


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