Tuesday, February 27, 2007

Process Modeling & Critical Processes 2.

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Here's how Process Modeling can help you correct stalled processes.

Let me define "process."

A process is a series of steps designed to produce a predictable result. Typical business processes include selling, filling orders, creating reports, accounting, etc. I'm sure your company uses many processes. Probably, 10-15 processes are the most critical.

As a manager, you must understand your critical processes.Your success depends on flawless performance of these critical processes!

Inefficient processes degrade your profits and customer satisfaction. Conversely, efficient processes improve both profits and customer satisfaction.

Most organizations use some of the following "macro" processes:
Designing products and services
Marketing and selling
Producing and delivering products or services
Billing
Servicing customers
Computerized process modeling gives you understanding because it shows the "big picture."

Many companies use "patch" solutions instead of finding root causes. However, process modeling shows you root cause(s) of problems.

It's more effective to find root causes and solve the REAL problems. The REAL problems are UPSTREAM ERRORS THAT CAUSE DOWNSTREAM MESSES.

Computerized process modeling uncovers your bottlenecks. It solves your quality problems and reduces costs. It expels needless steps and costly delays. Process modeling makes problems "jump off the page."

You then know the REAL problems and can apply REAL solutions - instead of "patches."

You can even use a LIVE-animation process model that shows it all!

You can see flowcharts come to life. You can see where, when, and in what quantity work arrives. You can see the work flow... resource assignments... bottlenecks and idle time...discover ways to streamline your processes.

Using computerized process modeling, you can:
See staff requirements using real-life variability.
See process changes.
Test and compare various staffing plans
Perform what-if analysis
Simulate changes with low-cost impact.
Schedule your staff, plan your shifts.
Computerized process modeling shows you statistical reports of your resource usage. These help convey proposed changes and ease implementation...

I use "ProModel" successfully for process modeling applications. For more information on ProModel, get this Simulation Using Promodel w/ CD-Rom book and CD from Amazon.

However, to find software and services to suit your needs, you can search the Internet using keywords and phrases like
simulation, simulation modeling, simulation modeling services, manufacturing simulation, business simulation, kanban simulation, discrete event simulation, strategic simulation, process simulation, etc.
NOTE: To use computerized process modeling, it's best that you or your consultant understand the mathematics of probabilistic modeling and queue theory. Simulation is more difficult than using a spreadsheet or wordprocessor...

You CAN Organize Your Business & Get Rid of Confusion, Turmoil, and Discord!

Today we see various organizational trends trying to adapt to fast-changing markets. If you're involved in a fast-changing market your success probably depends on fast reaction to competition.

NOW! Today, you can download this F-R-E-E eBook entitled, Organize your Business for Success (Acrobat PDF download) before it’s too late.

Logo: Organize your Business for Success For a brief time, I am offering my "Organize your Business for Success" Booklet as a F-R-E-E GIFT for you and those in your mail list.

To download, go here and click the button. That's all there is to it!

============================================================
Exercise for the Serious Organization Builder.
Download an updated (FREE) version of the Business Builder Outline (PDF file).
"Hi Mike ... thanks for your Business Builder outline ... good overview of what to plan for! I am about to launch my business ... and want to make it 'franchisable' ... a 'timely' download ... Thanks again, Ash"
============================================================

HELP Profitable Venture Tactics help your colleagues.
This Blog relies on subscriber's participation. So, it stands to reason, the more subscribers, the more participation. You can expand the circulation by telling your colleagues about Profitable Venture Tactics.

Your business and management colleagues will thank you for being so thoughtful.
What did you learn today that you found most beneficial?
How will you apply what you have learned at work?
Please email your comments

Best Regards,

Mike Hayden
Slightly Famous Author of
The Ultimate Career Builder: Turning cold careers into hot opportunities.

PS. If you're not on our P V T Roster, click here PVT sign up (FREE)
PPS. Click here to sign up for the PVT Forum (FREE).
Copyright © 2007 Mike Hayden

Wednesday, February 07, 2007

Process Modeling & Critical Processes 1.

Logo:Profitable Venture Tactics

Are your Critical Processes Stalled?

Many problems can stall YOUR critical business processes. And many managers worry about this because they know they're not getting the most from their staff and business. They experience many frustrations that never get satisfied.

Process Modeling Can Help!

Well, here's some encouraging news. Using what I call Process Modeling, you relieve these worries and improve control of your staff and workload. By "Process Modeling," I mean computer simulation of processes.

Over many years, I've used computer process modeling and simulation to streamline and verify systems for missile guidance, terrain-avoidance & terrain-following radar, spacecraft data-handling, timberland acquisition analysis, manufacturing processes, etc.

And, I've found that many people waste time, money, and effort in this area - without even realizing it! But, imagine your ability to explore and test new ways to streamline your processes - without the expense of implementing new ideas before testing their effectiveness!

How Big Is YOUR Problem Backlog?

If you have begun to diagram your critical business processes, you have probably found that these charts can become quite complex.

For example, if you own a simple hamburger stand you'll see how fast complexities arise when you document everything that happens from the time the customer appears until they leave.

But, when you diagram your critical business processes, you can begin to see where and how backlogs develop.

In a hamburger stand, backlogs usually clear up within an hour or two. But in many companies, backlogs can grow longer with every passing hour, day after day!
Discussing the issue.

For Example, a Recent Client had a 3-Year Backlog of Non-Conformance (Bug) Reports.

These reports documented $14,000,000 worth of defective parts now sitting in a warehouse. More than 90% of the parts were out of warranty. Worse, the OEM manufacturers were not notified about their defective parts, which they kept sending to fill my client's orders.

The problem was so bad, several overseas companies sprung up to manufacture the parts correctly. Field installers would buy replacement parts from the "after-market" manufacturers and send the bill to my client.

The client was just "too busy" to create an effective business process for handling defective parts. Instead of finding root causes, they allowed "patch" solutions.

The cost to implement a computerized process model was "small potatoes" compared to the $14 million lost forever.

I will tell you how we used process modeling to fix the problem in my next blog.


You CAN Organize Your Business & Get Rid of Confusion, Turmoil, and Discord!

Today we see various organizational trends trying to adapt to fast-changing markets. If you're involved in a fast-changing market your success probably depends on fast reaction to competition.

NOW! Today, you can download this F-R-E-E eBook entitled, Organize your Business for Success (Acrobat PDF download) before it’s too late.

Logo: Organize your Business for Success For a brief time, I am offering my "Organize your Business for Success" Booklet as a F-R-E-E GIFT for you and those in your mail list.

To download, go here and click the button. That's all there is to it!

============================================================
Exercise for the Serious Organization Builder.
Download an updated (FREE) version of the Business Builder Outline (PDF file).
"Hi Mike ... thanks for your Business Builder outline ... good overview of what to plan for! I am about to launch my business ... and want to make it 'franchisable' ... a 'timely' download ... Thanks again, Ash"
============================================================

HELP Profitable Venture Tactics help your colleagues.
This Blog relies on subscriber's participation. So, it stands to reason, the more subscribers, the more participation. You can expand the circulation by telling your colleagues about Profitable Venture Tactics.

Your business and management colleagues will thank you for being so thoughtful.
What did you learn today that you found most beneficial?
How will you apply what you have learned at work?
Please email your comments

Best Regards,

Mike Hayden
Slightly Famous Author of
The Ultimate Career Builder: Turning cold careers into hot opportunities.

PS. If you're not on our P V T Roster, click here PVT sign up (FREE)
PPS. Click here to sign up for the PVT Forum (FREE).
Copyright © 2007 Mike Hayden