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Analysing Prioritisation Communication Day Six
- 2. Improving Process Product Cost Structure Customer Acquisition costs Distribution costs | Process | People Problem Define the Usability Top 3 problems Solution Define the Meaning Top 3 features Key Metrics Key activities you measure Revenue Streams Revenue Model | Life Time Value Revenue | Gross Margin Unfair Advantage Clarify Meaning Can’t be easily copied or bought Channels Path to access customers Stakeholder Trust & Collaboration Customer Segments Define the User Multiple segmentation Unique Value Proposition Single, clear, compelling message that states why you are different and worth paying attention Market
- 3. the Overview Understand whom and how the process benefits Document to ensure no knowledge pilferage Simplify to determine the purpose and value Automate to simplify “The value of a process is determined by the purpose it serves”
- 5. Process Benefactor Who benefits? Owner Who owns it? User Whousesit? Maker Whomakesit? Trigger Objective Time
- 6. Interpreting the Process Process Task I Task II Task III Task IV Benefactor – determines the Value Owner – determines the Risk User – determines the Time Maker – determines the Resources “The value of a process is determined by the purpose it serves”
- 7. Process Design Potential for Value Creation More Cost More Value Redesign to create value or eliminate Potential for Elimination Designed due to lack of alternate or poor business decision Value addition or Cost reduction Attack first to improve value addition or reduce costs Necessary Processes Check for scope to reduce time More Time “Always design a thing by considering it in its next larger context; a chair in a room, a room in a house, a house in an environment, an environment in a city plan.” ~ Eero Saarinen
- 8. Less Important Less Urgent Less important, More Urgent Less important, Less Urgent More important, More Urgent More important, Less Urgent More Important More Urgent Doablility for Priority
- 9. Which process? Redesigning Product Youcan’tre-engineeranorganisation, youcanonlyre-engineeritsprocesses. REPETITIVEINTERMITTENT LOW, EXCLUSIVE EARLY STAGE LATER STAGE Integrating HIGH, FLOW Market Competitive Strategy COST & QUALITYFLEXIBILITY & QUALITY DELIVER MADE TO ORDER DELIVER FASTER & STOCK
- 10. Ideation Rule of 4 What is… What if… What wows… What works… ?
- 11. Please write about 1 practice at Jetking. Write the impact or value they create; Write the effect in their absence; Collect information about every student in our paper enquiry form Practice Benefit Absence Helps collect information for followup Can be collected later or on the ERP system
- 12. Process Strategy Process Scope Quality Teams Costs ✓Productivity ✓Efficiency ✓Cycle Time ✓Benchmarking
- 13. Trade-off Trade-off Trade-off Organizational Constraints Need for agreement, shared perspective, cooperation, support, corporate culture and structure, ethical values Bounded Rationality Limited time, information, resources to deal with complex, multidimensional issues Trade-off Trade-off Strategy Tradeoffs Process Scope Quality Teams Costs Personal Constraints Desire for prestige, success; personal decision style; and the need to satisfy emotional needs, cope with pressure, self-preservation
- 14. Work Breakdown Structure The Work Breakdown Structure (WBS) is a hierarchical description of the work that must be done to complete the project as defined in the Project Overview Statement (POS). Activity : An activity is simply a chunk of work. Task : A task is a smaller chunk of work. Action : The act or behavior for executing the process. Milestone : a task of zero duration. Usually an external event. Can be used to mark completion of an activity or phase. PEOPLE Workplace Success Philosophy WSP MONEY
- 15. • Planning and scheduling use tasks as the basic element. Sometimes this is known as activities. • The main tool for activity definition is decomposition “Gallia est omnis divisa in partes tres” Commentarii de Bello Gallico Julius Caesar Divide and Conquer • Status/completion is measurable • Start/end events are clearly defined • Activity has a deliverable • Time/cost is easily estimated • Activity duration is within acceptable limits • Work assignments are independent Activity 2 Percent Complete Activity 1 Activity 2 Activity 1 Activity 2 Activity 1 Activity 2 Activity 1 Activity 2 Finish-to-Start Start-to-Start Finish-to-Finish Start-to-Finish Activity 1 50% 30% WBS method of planning
- 16. • Dependencies • Lags • Outputs Do’s • Status/completion is measurable • Start/end events are clearly defined • Activity has a deliverable • Time/cost is easily estimated • Activity duration is in acceptable limits • Work assignments are independent Activity 2 Percent Complete Activity 1 Activity 2 Activity 1 Activity 2 Activity 1 Activity 2 Activity 1 Activity 2 Finish-to-Start Start-to-Start Finish-to-Finish Start-to-Finish Activity 1 50% 30% Rule of Thumb (Don’ts) • Work assignments should not be more than 4 to 6 weeks • Knowledge work should not be more then 2- 3 weeks as they are harder to track • People tend to back-end tasks with lengthy durations, leading to higher effort at the end. WBS do’s & don’ts
- 17. Activity B PC: A must be completed 50% for B to begin while A must be 100% completed for C to start Activity A Activity B Activity C Activity C Activity A Activity B Activity A Activity B FS : A must be finished for B to start SS: Both B & C must start alongwith A to finish FS: A must be finished for B & C to start Activity A 50% Activity C Critical Path Method (CPM) • Graphically displays the precedence relationships & sequence of activities • Estimate the project’s duration • Identify critical activities that cannot be delayed without delaying the project • Estimate the amount of slack associated with non-critical activities
- 18. Activity D Activity F Activity E Buffer Activity C1 Activity CActivity BActivity A Activity C Buffer Critical Path Method (CPM) The Critical Chain Approach focuses on project due dates rather than on individual activities and the following realities: • Project time estimates are uncertain so we add safety time • Multi-levels of organization may add additional time to be “safe” • Individual activity buffers may be wasted on lower-priority activities • A better approach is to place the project safety buffer at the end
- 19. CPM using Gantt Chart Shed Eliminate low importance tasks When (Demand > Availability) Delay/Interrupt Introduces complications or Late Start Circumvent Select methods that use different resources
- 20. Flow for Process Planning PROCESS ATTRIBUTES DELIGHT PERFORMANCE BASIC IMPORTANCE SATISFACTION CUSTOMER RETENTION CUSTOMER LOYALTY PROFITABILITY
- 21. Kano Model Noriaki Kano ▪ Emeritus engineering professor in the department of Management Science at the University of Tokyo ▪ 1984 article about product quality and customer satisfaction ▪ Received the individual Demming Prize in 1997 ▪ Not all service features or attributes are equally important to customers, and identifying the ones that increase satisfaction are critical for success.
- 25. Kano Model Delighters Attractive Excited Quality Dissatisfier Must Be Expected Quality Satisfier One Dimensional Desired Quality Dissatisfaction Satisfaction Service Performance Service Performance Dissatisfier – Must be’s – Cost of Entry Satisfier – More is better – Competitive Delighter – Latent Need – Differentiator
- 26. Step I 2 questions 5 options Step III Assign categories Step II Tabulate responses Step IV Tally categories
- 27. Step I 2 questions 5 options Step III Assign categories Step II Tabulate responses Step IV Tally categories POSITIVE If you had a personal website for attracting students to your Franchisee, would it help you feature your Centre better? ▪ I like it. ▪ It is a must. ▪ I do not care. ▪ I can live with it. ▪ I dislike it.
- 28. Step I 2 questions 5 options Step III Assign categories Step II Tabulate responses Step IV Tally categories NEGATIVE If you do not have a personal website for attracting students, does it effect your marketing ? ▪ I like it. ▪ It is a must. ▪ I do not care. ▪ I can live with it. ▪ I dislike it.
- 29. Step I 2 questions 5 options Step III Assign categories Step II Tabulate responses Step IV Tally categories NEGATIVE: How do you feel if the website is not present? Like Must Do not Care Live with it Dislike POSITIVE: How do you feel if the website is present? Like Q A A A O Must R I I I M Do not Care R I I I M Live with it R I I I M Dislike R R R R Q Attractive Indifference Must-be One Dimensional Questionable Reverse
- 30. Step I 2 questions 5 options Step III Assign categories Step II Tabulate responses Step IV Tally categories NEGATIVE: How do you feel if the website is not present? Like Must Do not Care Live with it Dislike POSITIVE: How do you feel if the website is present? Like Q A A A O Must R I I I M Do not Care R I I I M Live with it R I I I M Dislike R R R R Q Attractive Indifference Must-be One Dimensional Questionable Reverse