Management, Improvement, Mapping, Modeling and Optimization of Processes, Procedures, Workflows and Best Operating Practices

Business Model

• A business model is a tool for the creation of economical ways, social ways or other values.

• The term “business model” is used in a broad range of descriptions, both formal and informal, to represent the central aspects of business, including its motive, offers, strategies, infrastructure, organizational structures, commercial practices and operational and politic processes.

• In a more basic sense, a business model is a method of doing business through which the company can sustain itself, that is, generate revenue. The business model sets out how an organization makes money, specifying its position on the value chain.

Process

• A process is a sequence of tasks, or activities, that when executed turn inputs into a result with added value. A business process execution consumes material and human resources that come from internal or external suppliers that feed the process. The results are products or services that meet the needs of clients.

Business Process

• A business process is a set of activities that happens in business with the intent to come up with a product or service, achieving a particular purpose.

• These are usually entrepreneurial, managerial or productive, and must meet the strategic objectives of the company.

Why Business Process Management and Improvement? ​

• It is possible to make an organization more effective if we can improve its processes, and to accomplish that we have to know them in detail. In many cases, the processes are not explicit or are very complexes, involving many areas of the organization. To boost the processes, we need firstly to be aware of how they are structured, modeling them to monitor how their activities are taking place, who participates in them and which pieces of information are being shared.

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The Business Process Management (BPM)

•  Business Process Management BPM is a management discipline that integrates the strategy and goals of an organization with the expectations and needs of customers by focusing on end‐to‐ end processes.

• It is focused on delivering operational improvement (Business Process Improvement) or a larger-scale change or transformation. This process‐centric approach to business management is to deliver an operational environment that supports rapid change and continuous improvement. 

• It brings together strategies, goals, culture, organizational structures, roles, policies, methodologies, and IT tools to:

  • Analyze, design, implement, control, and continuously improve end‐to‐end processes, and

  • ​Establish process governance.

The Business Process Improvement (BPI)

•  ​A business process is a set of activities performed by one or more people with the aim of achieving business goals.

• For a company to be productive and profitable, its processes must be effective.

• But… what is an effective process?

• An effective process is a process that produces the right results consistently.

• Business Process Improvement (BPI) is the creation of processes that will work and take your company to the next level.

• BPI is the improvement of business processes as a result of the refinement of these processes and their optimization, by comparing the results being obtained from the process to the goals set for it. If they are below the desired level, the process should be analyzed in search of improvements.  

• BPI is usually narrowly focused and continuously applied at various stages during the life of a process.

• BPI includes the selection, analysis, design, and implementation of the (improved) process.

• This usually results in an initiative or project to improve the performance of a particular process in alignment with the organizational strategy and customer expectations.

• Types of business process improvement samples are:

  • ​Performance Improvement: Seeking the best way to carry out the process, on to their efficiency and effectiveness

  • Activity cost: To cut costs

  • Customer satisfaction: Because it is a critical moment in any situation, this must always be aligned with corporate strategy and a target of constant improvement.

The Steps of Business Process Improvement

• Identify the Process: Identify the process that needs to be improved.

• Map the Process: Understand the process, the steps, the participants and the goals.

• Model the Process: Gather the knowledge and model the process to avoid duplication of effort, eliminate the steps that should be performed by other departments and other necessary steps and eliminate the cycle time delays. With a clear diagram, it is possible to see all steps of the process and check for bottlenecks and improvement points.

• Execute the Process: Execute the process using all improvements.

• Optimize the Process: Find out improvement points and optimize the process (The Process Optimization)

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The Business Process Mapping

• Business Process Mapping helps the company to clearly see its strengths and its improvement points, such as complexity in operation, high costs, bottlenecks, integration errors, redundant activities, low value-added tasks, too much documentation, approvals, etc. Besides, it is an outstanding way of improving the knowledge about the processes and enhances business performance.

• Business Process Mapping also makes it both possible and easy to build measure systems and effective key performance indicators, evaluating in real-time the execution of tasks, results, costs, production, productivity, risks, etc. All this makes it a lot easier to monitor and to manage.

• Through Business Process Mapping, it is viable to calculate the entire cost of the process, the time that it will take to execute it, the people responsible for it, the time that each resource has to be used, and the establishment of improvements and optimization.

• Business Process Mapping has as an aim to determine the way the received inputs are treated and changed, to accomplish this process with a full effectiveness (efficacy + efficiency).

• In order to apply Business Process Mapping, KERY analyze all details of the process to map and diagram it to show the operational flow and the relationships between the different areas and processes.

• Business Process Mapping makes it easier and possible to build measures systems and performance indicators since ​It allows evaluating in real-time the execution of tasks, result measuring, costs, production, productivity, risks, and more, making the management easier and more complete.

• Business Process Mapping make it possible to calculate the total cost of the process, the execution time, the people responsible, the staff allocated, the time dedicated to each resource and the implement of improvements or optimizations.

Stages of Business Process Mapping​

Stage 1-Establish teams that can present the process routine-The people who participate in this phase are the ones who perform this process on a daily basis. Also, personnel from the supplier process and the client process should engage on this stage.

Stage 2-Identify processes-Get a comprehensive knowledge about the organization gathering the following information:

• Organizational structure, the attributions of each area and leading managers.

• Growth strategies in each sector.

• Central business processes.

• Accurate key performance indicators.

• Information systems used by the organization.

• Strategic prioritization for the implementation.

Stage 3-Diagram current processes-Gather data about the policies that govern the processes, the executed tasks, time spent in activities, people involved in each activity, who are the suppliers and consequential internal clients and what are their interactions.

Stage 4-Analyze current process and propose improvements-Do a critical review of the processes to detect the root of the problems and betterment opportunities in the processes. See some sources of problems and opportunities:

• Work method.

• Equipment and machines.

• Raw material.

• Physical environment.

• Hand-offs.

The Business Process Modeling

• Business Process Modeling is a range of activities that must be followed with the goal of creating one or more models to the representation, communication, analysis, layout, synthesis, decision making and business control.

• The aim is to understand the internal workings of the organization – from beginning to end – and for that many techniques are used, such as organization charts, positioning diagrams and process flow, among others. This provides a vision of what is executed by the workers in the daily life of the company and creates a solid basis for studies, process improvements, costs estimation and a right comprehension of the business processes.

• Used well, the techniques of business process modeling are very efficient in providing a true comprehension of the company and the mechanisms applied to its functioning, being extremely important to an enterprise.

• In the process modeling BPM, authors use information and documents in order to bring about a flow of how the activities are taking place, from their beginning until they achieve the purpose of the process.

• As soon as the modeling is ready, it is possible to, through a wider knowledge of the processes, effectuate improvements, identifying the activities that are passive of automation and even establishing outsourcing opportunities, if that is interesting to the company.

The Process Optimization 

• ​Organizations are faced every day with the challenge to produce more spending less.

• To grow, managers look for a way to improve its processes in a way that results in cost reduction and awareness about what each process represents in the business.

• It does not matter the tools, the technologies and resources invested.

• It is pointless how much money was invested or even the efforts made by the team.

• A suboptimal process will never deliver the most efficient result possible.

• What process optimization can bring to you company is a way to reduce money, time and resources spent in a process, leading to better business results.

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Optimization of Processes, Procedures, Workflows and Best Operating Practices

• Entire restructuring of a business, department/team or portfolio may not be required in majority of the challenges of the enterprises.

• After the assessment, sometimes a process is found to be optimized to avoid the challenge.

• If the processes, procedures, workflows and best operating practices are not working for the business unit, department or team which make the employees inefficient, increase the cost of the operations, reduce the profits or decrease the customer satisfaction, optimization/restructuring may be required.

• KERY provides a full service package starting from the assessment of the core reason behind, recommendation letter to the enterprise how to avoid the problem; and design, re-write and the implementation of the optimized/restructured processes, procedures, workflows and best operating practises. 

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The Optimization Tools

• Linking internal knowledge and experience with external expertise and best practice

• Review of the company organization and recommendations for potential changes from impartial experts

• Fast collection of clear, unadulterated key business information with minimal employee involvement

• Structured interviews with managers and employees

• Evaluation of strengths/weaknesses and risks in the company

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The Process Optimization (Core Processes)

• The creation of a process map for a company or specific organizational unit

• Collection of unstructured information on individual business processes and the creation of process profiles

• Modelling of the process map with a modelling tool

• Modelling of the "actual" business processes 

• Attribution of process elements in accordance with optimization goals

• Development of business process alternatives ("target"), assessment and comparison with decision-making support

• Development of an implementation plan for the transition to the "target" business process

• Development of recommendations for a concerted change to both the organizational structure and IT support

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The Steps of Process Optimization 

The main goal of process optimization is to reduce or eliminate time and resource wastage, unnecessary costs, bottlenecks, and mistakes while achieving the process objective. We only spend time correcting an error if the mistake exists. It is not enough to know that but to know how to accomplish that. 

Step 1-Identify

• KERY identify what is the process optimization need that exists in your company.

• KERY and the customer find out the processes in the company that is costing you more than it should, or inducing client’s dissatisfaction or even stress between employees.

• After that, KERY ask questions about these process, aiming to determine what is the core of the process, the unchangeable items and the features of the process:

  • What is the final purpose of the process?

  • What should the outcome be?

  • Where does the process starts and ends?

  • What activities are part of the process, passing through the stages?

  • Which departments and people are involved?

  • Which information travels between steps?

• At that point, we are asking what the process is, and not how to do it.

Step​ 2-Rethink

• It is the time to map the process, worrying about how to execute each step, about how the process flows, about what is process optimization to this process. KERY ask the customer and its team these questions:

  • Is there a better way to perform this process?

  • How exactly is this process conducted?

  • How much paper (for example) does this process use?

  • How long does the process take to be finished?

  • How much time is lost in rework and mistake correction?

  • Where does the process stall?

Having a micro and macro vision is important. Each detail is important, since the way an email is written until the perception of what the client wants. KERY Compare the answers to this questions to the ones in the first item, and maybe you will find out that tasks that seemed crucial are expendable.

Step​ 3-Implement

• After knowing the process in this level of detail and identifying the changes opportunities and the improvement needs, it is time to apply the process in a new manner. It is a delicate part of the business process optimization.

• It is crucial, for the purpose of the process as well as for the purpose of the business process optimization, that everybody embraces the new process and implement the changes.

• In that way, KERY can check for results, gather data and see if the improvements were real or not.

• It can happen that the process does not end how we expected, that the staff does not get used to it, that the implementation was not done correctly, so it is necessary to start the project all over again.

Step​ 4-Monitor

• After the implementation, KERY will monitor the process to find new improvement points and bottlenecks. Identify them, rethink the process, implement it and automate it.

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Reference Works for Operations Consulting/Restructuring/Process Optimization 

• Optimization of Processes, Workflows and Best Operating Practices (in Nanotechnology, Energy, Power Generation, Earth-Moving Machinery, Construction Machinery, Industrial Rental Solutions, Power Plant Solutions, OEM Engines/Drive Trains, Poles, Gantries, Energy Solutions, Renewables, Power Generation, Automotive, Battery Storage Solutions, Boilers & Heat Exchangers, Hybrid Power Plants, Temporary Rental Power Solutions, PV Solar Power Plants, PV Modules and Equipment, HVAC, Water Generation Systems, Water Treatment Systems, Off-Road/On-Road/OEM Machinery, Foundries, Medical Equipment, Screening & Crushing Machinery, Aftermarket/Spare Part Distribution, Construction)

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Project Locations for Operations Consulting/Restructuring/Process Optimization 

• Optimization of Processes, Workflows and Best Operating Practices (USA, Turkey, Netherlands, UK, Germany, Italy, UAE, PRC, Qatar, Sweden, Denmark) (23 Companies)

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CONTRIBUTION SNAPSHOT

A U.S. Multinational Turnkey Power Plant Installer and Equipment Manufacturer which is active in 135 countries in the world-Brought track record of success promoting, optimizing existing sales & business development processes, products and solutions, re-launch existing products and launching new solutions in geothermal power plant business which were derived from a combination of existing products. Transformed marketing materials to strategic messaging with easily understood terms promoting the overall value proposition to the customers instead of product specifications and cost calculations who have technical challenges in their existing power plants and who focused on maximum efficiency and revenue gain for their new power plant investments in geothermal, biomass and coal-fired plants. This optimization has brought the enterprise to the market leader in flash plants and cold-end solutions for binary plants, generated a  Hybrid Cold-End Solution (condenser + cooling tower pack) to improve cooling inefficiency in air-cooled geothermal plants during hot weather which is the first in its kind in the world.

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A Turkish Distributor of Diesel Power Generator Manufacturer/Construction Machinery Manufacturer and Rental Solutions Provider in Turkey-In a declining, low profit business in an emerging market, devised inventive and creative strategies to generate maximum exposure at the lowest possible costs by identifying/capitalizing on untapped market opportunities in what was previously considered a «dead-end» market. Played key role in growing business of power train to exporting OEM SMEs, power generation packs to end-users; and aftermarket packs (filters, lubes, oil and  maintenance packs) to the customers and dealers who focus on high quality and economic pricing. Launched new products of Diesel Power Generators, Rental Diesel Generators, Power Train Solutions and Aftermarket Solutions after preparing Strategic Plans, Go-to-Market Strategy & Plans and contract management with vendors. Introduced solutions for technical sales, rental sales, project sales, corporate sales and aftermarket sales after establishing business development team and optimizing the processes, procedures and workflows between sales, aftermarket, drive train, rental, power generation, procurement and supply chain teams to improve revenue and market share in Turkey. Actively accessed more than 200+ OEMs physically in 15 segments, securing prototype and serial production purchase orders with OEMs for drive train solutions.