Lecture 8 - Redesign Process I

 Reference
 1.The case of Chase Manhattan Bank
 http://info.sugoo.com/CN/Ebook/%E7%94%B5%E5%AD%90%E4%B9%A6%E7%B1%8D/%E8%BF%90%E4%BD%9C%E7%AE%A1%E7%90%86/BRP%E5%9C%A8%E6%9B%BC%E5%93%88%E9%A1%BF%E9%93%B6%E8%A1%8C%E6%A1%88%E4%BE%8B%E5%88%86%E6%9E%90.pdf

Summary of lecture
This lecture took a deeper look on Process Redesign, i.e. one of the Five Phases Approach of BPR methodologies discussed in last lecture. It includes five steps, scoping, modeling, analysis, redesign and integration. In order to better understand the process, a case study of Paloma Bank was used to explain what should be exactly done during every phase.

Here are the steps for scoping the process:
1)        Operationalize process performance targets
2)        Define process boundaries
3)        Identify key process issues
4)        Understand best practices & define initial visions
5)        Familiarize participants with BPR software 
6)        Outline data collection plan & collect baseline data
7)        Plan for modeling phase


Example and Evaulation
Here is an example to apply process redesign of BPR in reality. According to the case of Chase Manhattan Bank as referenced, it explored the procedures of BPR in Chase Manhattan Bank from the planning stage. It investigated that BPR best suited for financial institutions. This case provided detailed information of this BPR. This can much strengthen our understanding of BPR and better get the core idea of BPR.

Then, how can the process be redesigned? We always see long queues for the counter service at the bank particularly at lunch hours. In fact, some bank branches have already redesign the process and solved this problem with the help of a machine at the entrance to estimate customers' waiting time. We can use it as an example to illustrate process redesign.

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1. Operationalize process performance targets:

1. To shorten customers' waiting time
2. To maintain short queues at the bank
3. To better allocate the resources

2. Define process boundaries:

Process name: Estimation of customers' waiting time
Process owners: Customer service officers
Process triggers: Customer walk into the bank
Sub processes:
     1. Front-end customer service (CS officiers ask customers the service they required and input to the machine)
     2. Backend calculation (calculate the estimated waiting time for the incoming customer according to the number of customers awaiting)
Process delivable: a ticket to the customer showing the estimated waiting time for the required banking service

3. Identify key process issues:

1. Algorithm for calculating the estimated waiting time
2. Flag areas requiring attention

4. Familiarize related CS officers with the BPR software

5. Outline data collection plan:

1. collect statistics to count the estimated service time per customers for each type of service, e.g. deposit & withdrawal, investment, enquires
2. collect data on customer flow at different time periods

 6. Plan for modeling:

1. Create scoping report to prepare for modeling the whole process