Process Change PPt
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Designing, Implementing, and Improving Processes
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Process Change PPt
- 1. IKEA Process Change STATUS REPORT Tryshan Ravenell Kaplan University – GB560 Dr. James McGinley – Professor Designing, Improving, and Implementing Processes
- 2. Process Change Overview The process change goal was to change the process of pulling inventory by customers in effort to improve customer retention The new process has been in effect for over a year The report highlights activity and process level analysis, performance related issues, and process problems The new process will help to empower IKEA employees and customers with new ways to get the IKEA products from the stock shelves out the door with the customers The process will be supplement by new software processes that can be used to track the process and employee progress
- 3. Process Level Analysis Improving customers’ pulling business process created other processes Help eliminates customers confusion and dissatisfaction with pulling orders Increase customers’ shopping experience
- 4. Process Level Analysis (cont)
- 5. Process Level Analysis (cont)
- 6. Process Level Analysis (cont)
- 7. Process Level Analysis (cont)
- 8. Activity Level Analysis IKEA’s activities have become much more efficient The activities are centralized with the customer expectations and customer retention strategy All activities are value-adding and their purpose is transparent The activities have effectively increased customer touch points Activities provide a strong basis for continuous process improvement strategies
- 9. NEW CUSTOMER RETENTION ACTIVITIES
- 10. New Activity Efficiency Satisfied Customer shops Takes Printout Unsatisfied Uses code to take purchase survey Feedback booth Scans product Order received Takes Printout pulls order pulls order Customer pays Given survey code Returns product
- 11. Complexity of the Process New Software Variables Employee Training Initial accuracy of software Additional Staff Variables Number of applicants Quality of Staff Training
- 12. Complexity of the Process (cont.) Automatic Shelves Variables Timeframe Number of Stores The Geographical scope of IKEA
- 13. Problems of Process Evolution Rewards of incentives Paid vacation Paid holidays Sick time Raises Process of evaluation is easy to determine with the employee problems and also the customer retention.
- 14. Documentation Incomplete paperwork, Out-of-date or wrong To many employees trying to get one document up and running Documentation not available when it is needed.
- 15. Problem Management Tasks Problems should be addressed in priority The degree of management and planning required is greater than that needed for incident control, Responsibility of problem resolution team is to ensure that incident information is documented in such a way that it is readily available to all technical support staff. (FITS)
- 17. Worker Performance Recommitment and reestablishment of expectations formal documentation of problems and write up process separation interviews are conducted were necessary a commitment to rules and regulation enforcement.
- 18. IKEA Documentation and Write up process verbal coaching This is to help the employee to improve on what expectation they are not meeting Formal Letter of Clarity This document is a permanent record that provides documented proof that a conversation was had about the performance of the individual employee . This letter is specific to what expectations the employee did not meet and how to fix it.
- 19. IKEA Documentation and Write up process cont. PIP or Performance Improvement Plan It provides the employee with strict feedback and coaching on what areas of their job are not being met . This is used to reinforce the same topics that were not improved on after the letter of clarity.
- 20. Employee Separation procedures IKEA has established a separation strategy called the exit interview These interviews can gather some data on how to improve the overall health of the management team and can lead to some new initiatives in improving employee satisfaction
- 21. Rule Enforcement IKEA strictly adheres to all of the policies in order to make sure that we are providing the best service to our customers and providing the best working conditions for our employees Most importantly the rules at IKEA are enforced constantly with every employee in the company. IKEA really makes sure that each process is followed to the letter when it comes to termination and documentation as well as company wide policies.
- 22. Summary The new process change is a success for the IKEA customers and IKEA The new process has affected the company in each division The process can be implemented into any IKEA store IKEA will benefit from the process change via higher customer retention numbers and greater employee skill sets and business process knowledge
- 23. Conclusion IKEA management must use the new reporting structure to ensure that the process continues to remain viable and productive to the IKEA bottom line IKEA management must also enforce all employee rules and training requirements IKEA management should implement the new process in as many of the IKEA stores as possible Keeping in mind that the process may be a little different at the other stores The more stores that the new process is used at will mean the more benefit that IKEA can recieve
Notas del editor
- Other business processes and sub-processes were created in order to improve IKEA’s customers pulling business process. This business process improvement helped eliminate confusion and dissatisfaction to the customers that were caused by retrieving heavy items from the warehouse, pulling the wrong items from the shelves, or simply not being able to find items. This business process improvement also increased customers’ shopping experience and ensures that they will remain loyal customers in the future.
- In order to improve customers’ pulling experience, three other processes were implemented. These were hire additional staff, implement new software with price gun, and install automatic shelves. In addition, four sub-processes were developed with the implementation of the new software with price guns process. These were purchase and install software, purchase price guns, training for employees, and customers using price guns.
- The hiring of additional staff provides help to customers with pulling their orders. This process diagram shows the standard business process of hiring employees. After this business process initial implementation, it will continue to be a requirement as long as there is an open position to be filled.
- This process diagram shows the business process for installing automatic shelves. These shelves will allow items to move from the back of the shelves to the front when an item was removed and helps eliminate customers having to struggle to get items that were out of their reach.
- This process diagram shows the customers using price guns process business. This process was implemented after software and price guns are purchased and implemented and employees training was completed.
- The newly implement activities are based on customer needs and the idea of developing customer loyalty. The purpose of our newly implemented activities are to fully engage the customer with IKEA. This means creating activities that will increase the customer touch point and enhance the customer’s experience. These attributes are critical success factors in developing a sustainable customer retention strategy.
- This diagram illustrates how effective and purposeful the newly implemented activities are in addressing customer retention and developing customer loyalty. As said before, these are all critical touch points that keep the customer engaged with IKEA. (READ THE DIAGRAM)
- The red graphics in the diagram illustrate the activities and the relationships they create with pre-established activities. Each new activity makes next activity more purposeful. As mentioned before, these activities provide transparency to the process and exude a customer-oriented perspective. We will need to really distinguish the roles of the “order pulling specialists” and the employees so that there is more of a linear relationship from customer to employee that will maximize the effectiveness of the software and product scanner can be maximized.
- The complexity of the process changes will be dependant on the variables that affect each of the three main process changes. By changing the new software, we will encounter variables that will determine the initial effectiveness. Of the two main variables we can control the amount of training an employee gets, however, we will need to consider that hours on the sales floor will be cut when training the employees on the new system. Another variable that could affect the performance of the software will be the software itself. We will need to take into consideration that we may run into snags or glitches with the initial software. By hiring additional staff, we have a new set of variables. We will not be able to reach our desired amount of employees if there is not enough applicants. We will also want to hire quality employees, the issue of increasing customer satisfaction if we cannot hire quality staff and train them adequately.
- The variables that affect the complexity of installing automatic shelves are different in that the unknown variables will play less of a role. The complexity of installing a new shelving system lies in the scope of the project. IKEA being an international company with 267 stores in 25 countries will make the project more complex.
- The rewards of incentives will help with the hard working employees, not to let them only work hard for the rewards but letting them know that you are willing to go above and beyond then they will give you that in return, Process of evaluation is easy to determine with the employee problems and also the customer retention.
- Some problems accrue when you are in a hurry or cant wait to go home, but by understand that problems accrue when a company or and employee is sloppy then you can make things better by knowing what is expected of you.
- The charts that is located above shows the steps that is needed to care out a good process plan when it comes to problem solving. If you are willing to stick to a plan and solve the problem step by step you are more likely to success and show that any problem can be solved.