BPI Case for Change - Examples

BPI Case for Change - Examples

The following represent two case for change examples. The first example is an actual client presentation. The second example is a business case study of an actual customer.

Example 1 Order Fulfillment Process Improvement

Case for Change

Company experiencing lagging sales from an overall slump in domestic house market. Raw materials and WIP Inventories were rapidly increasing, production costs were rising, and customer expectations were not being met in a timely manner. Measures needed to be taken to improve customer service, reduce costs, and enable the company to maintain its competitiveness in a changing market.

Project Objectives

• Reduce overall cycle time of the order fulfillment process
• Improve linkage between order entry and production scheduling / manufacturing systems   
• Identify customers services weaknesses and develop recommendations to help assure the timely satisfaction of both current and future customer requirements.
• Educate and train employees on policies and procedures, and methods to achieve  these objectives

What the Consultant Did

• Analysed the entire order fulfillment process, conducted an As-Is analysis, identified non-value added activities, outlined integration requirements to attain customer service goals.
• Implemented Kanban inventory replenishment system, designed manufacturing cells, and employed JIT (Just-In-Time) manufacturing to eliminate process inventories and reduce cycle time of production operations   
• Evaluated the cost competitiveness of current logistics strategies and provided logistics network alternatives to reduce cost and improve customer service.

Results

• Increased production capacity of one production line by 30%
• Reduce wood parts industries by17% and glass inventories by 33%

• Improve overall productivity of production personnel by 60%

Example 2 Payments and Benefits Process

Background and Case for Change

• Process owners are the Department of Finance in a Government Services Organisation
• Primary process customers are the employees, secondary customers are the employees managers
• The current process is overly complex, fragmented, costly excessively paper and labour intensive, and does not fulfill the needs of employees and their managers. Employees would like better service, particularly in respect to benefits information and advice. Managers want greater accessibility to the employees accrual information required to support operational requirements (e.g. vacation earnings and balances, sick leave usage etc.)

Procurement Expenditure Process Process

• There are two primary process owners, Government Services (Purchasing Branch) and the Finance Department. Stakeholders that have an interest in these processes include tax payers, government financial administrators and current potential suppliers.
• The process has the following key customers: the users of the goods and services obtained through the procurement process (e.g. front-line staff, program managers etc. and the government departments and staff that use the expenditure process to pay suppliers and manage cash-flow.
• The current processes were selected for redesign because it used paper intensive, control-oriented, not linked to other processes in the supply chain, using old legacy technologies, costly to administer and does not maximise value-added, not user friendly, inflexible and not customer focused, slow and not responsive to customer needs.
• This BPI initiative was primarily focused on high-volume, common departmental procurement procurement and expenditure transactions. Additionally the redesigned processes must accommodate, for accounting purposes, integrated/linkage to other financial systems / processes for recording and information management purposes (e.g.  annual estimates, government financial statements, public accounts, commitment accounting, cash-flow forecasting, cash management)