【正文】 se enters order on installed terminal Supplier mainframe batches ordersSupplier distribution department picks up and delivers orderFuture Mode of OperatingPresent Mode of OperatingFMO Redesign40SFRReengineeringTypical Changes from PMO to FMODecisionMaking Authority:Business Focus:Accountability:Roles, Job Content, Career Path:Before After?Highest possible level for “consistency”?Lowest level for customer responsiveness? “Provide a product / service” ? “Build a personal customer relationship”?Fragmented process?Lack of performance measures, or measures focused on small parts of the process? Fewer handoffs and reduced fingerpointing?Performance measures for all jobs focused on customer value added? Everyone is a specialist?Career path up in a functional area? More generalists with fewer specialists?Career path up, across, and between functional areasFMO Redesign41SFRReengineeringTypical Changes from PMO to FMOBehavior:Organizational:Rules:Before After? Little or no risktaking?Parent / child behavior? Highly motivated, “cando” attitude, proactive?Creative, risktaking based on sound judgement?Friendly, personable service?Learning environment self improvement?Hierarchical?Focused on control and administration? Flatter, team oriented?Learningbased with emphasis on mentoring / coaching? Lots of them。 little latitude?Based on past problems / constraints? “Out of the box” thinking?Continuous improvement?“Bend” rules See Related Topic: Characteristics of an Improved ProcessFMO Redesign42SFRReengineeringReengineering Process DefinitionsPMO = Present Mode of OperationTMO = Transitional Mode of OperationFMO = Future Mode of OperationSee Related Topics:What is the TMO? Role of the TMOExample Detailed Opportunity DescriptionImplement and Track ResultsDiagnose PMOFMO RedesignQuantification of PotentialDesign TMO, Create InitiativesIdentify Critical ProcessesInitial PrioritizationPrioritize SubProcesses for Redesign43SFRReengineeringReengineering Process DefinitionsPMO = Present Mode of OperationTMO = Transitional Mode of OperationFMO = Future Mode of OperationImplement and Track ResultsDiagnose PMOFMO RedesignQuantification of PotentialDesign TMO, Create InitiativesIdentify Critical ProcessesInitial PrioritizationPrioritize SubProcesses for Redesign44SFRReengineeringImportance of Measurement ?Metrics provide critical feedback as to whether or not positive change is taking place– magnitude and speed of impact– results and analysis of experimentation / pilots?Metrics municate priorities and align actions?By tying individual performance measurement to individuals, metrics can help motivate employees to create valueA well designed set of metrics is always a key success factor in any change management effort.Implement and Track Results45SFRReengineeringProcess Improvement Metrics See Related Topics: Metrics for Different Audiences。 Process Measure Data Output Example。 Example Dashboard Elements (1) (2) and (3)。 and Example Process Dashboard.To pletely measure progress, one must look at product, process, and financial metrics.Shareholder ValuesValue Creation MetricsProduct CostCustomer ValuesProduct QualityProcess CostProcess Speed FlexibilityRevenue Enhancement ProfitabilityProduct Metrics Process MetricsExample Metrics:? ROM?ROS?Profit per employee?Economic Value Added? Customer perception?Wait time as a % of process time?Cycle time?Number of process steps? Customer perception?Time to respond to customerdriven changes? Customer perception?Overhead rates?Rework hours as a % of total?Inventory turns? Unit cost?Valueadded per unit?Number of parts per unit? Customer perception?Defect rate?Deviations or waivers per unit? Sales per employee?Change in backlog?Percent of customers retainedFinancial MetricsImplement and Track Results46SFRReengineeringAgenda ?Objectives?Reengineering Introduction–definition–significance–Bain’s reengineering practice?Reengineering Process?Example?Defense Co.?Exercise 47SFRReengineeringOld Estimating ProcessDefense Reengineering Example48SFRReengineeringEstimating Process Span Time and Labor HoursDefense Reengineering ExampleLess than 20% of the span time was spent on activities core to estimating and only 30% of the labor time was consumed by actual estimating activities.0%20%40%60%80%100%Percent of Total Man hours 1327Span Time Man hoursReviewing,Communicating,and Managingthe Process253 hoursEstimatingDocumentingReview forAccuracyCommunicating/SummarizingReview for understandingQueue Time,Time Spentin in/outBoxesActualEstimating andDocumenting010203040509Calendar Days AdministrationReview forAuthorization49SFRReengineeringNew Estimating ProcessDefense Reengineering ExampleThe new process relied on a cross functional team approach and thereby eliminated nearly all of the reviewing, municating, and administering effort.? Team prised of:– Team leader– Division estimator– Engineering estimator– Operations estimator– Logistics estimator– Material estimator? Facilitates munication and coordination and eliminates the repeated need to assign and oversee the work50SFRReengineeringResults: Span Time and Labor Time per Estimate Span time was reduced 50% in the pilot, while labor time was reduced 54%.Span Time Labor Time51SFRReengineeringAgenda ?Objectives?Reen