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Friday, 1 June 2012

Business Process Improvement

BPI is a simple and effective way to improve any business process at any level of its objectives. BPI can reduce waste and improve efficiency, delivering the maximum financial benefit to any business.

Following six interlinked steps help in revealing and and repairing specific points of weakness with the process and emphasize customers, measurement, planning, and execution.

  • Understanding the Customer:- The first process in BPI is, listening to both internal and external customers and determining whether it is doing its part to meet their needs and expectations, and if it is not. If it is not, to know why and in what ways?

  • Understanding the Process:- Here the workflow is to be documented, by segmenting the process's individual steps, and charting each one. Appropriate measurements are determined to track performance before, during and after changes ar made. This documentation allows to validate the effects of evenly improvement effort.

  • Assessing the Process:- To know which steps add value and which do not. Strategies are devised for improvement by determining how to eliminate non-value added steps and how to consolidate redundant steps to smooth the workflow. This process also involves collecting and analyzing process performance data and comparing it to customer requirements.

  • Improving the Process:- As some processes need adustment and others need radical re-engineering, BPI team should weigh the benefits of the improvement strategies and select the best approach for the business. The main objective of this process is to drive wastes out.

  • Piloting the Improved Process:- Running a pilot test of the proposed improvement will help, know whether it is working and it is delivering benefits projected.

  • Implementing, Monitoring, and Continously Improving the Process:- This final process involves creating a rollout plan, training all affected employees, assessing the results, and continuing to make adjustements as necessary.

BPI may look similar to 'Lean' & 'Six Sigma' but the BPI process actually provides a business improvement framework within which Lean & Six Sigma can be used.

Upon completing the assessment process, operations leaders should determine whether Lean and/or Six Sigma will be applicable and can be applied.

Through the voice of the customer, the use of BPI can point operations in the right direction, prompting radical re-engineering and innovation to leapfrog the competition. Bottomline, BPI provides a disciplined approaching to driving operational change.