6.1a Product, Service and Process Design

Case Study

Note: This Case Study refers to specific OE21 surveys and tools (spreadsheets or docs). Please try the  link(s) below to learn more about these surveys and tools:

 

 

6.1a Product, Service & Process Design

 

Assumption: The (Elafino Sports Center) organization has implemented the OE21 6.1a Product, Service and Process Design which led to the following results and outcomes.

The Elafino Sports Center focus teams realized that they have considerable work to do with existing products and services as well as the design of new products and services.

 

The Operations Focus Team (OFT), with support from the other Focus teams, need to apply Process Charts for all hockey and figure skating services:

 

  • Hockey Services (youth, adult, and senior)

  • Figure Skating Services (youth, adult, and senior)

 

As the Operations Focus Team began the process of implementing Process Charts for key services, they learned the benefits of the OE21 Process Chart tool (as compared to flow chart tools):

Process Charts require thinking about the sequence each step of the process is done, including:

  • Ensure that each step has one person or team responsible for that step (not multiple teams)

  • Decision steps that branch to other steps in the list (just like in writing code):

            IF (condition A) Go-To Step 5

            IF (condition B) Go-To Step 9

  • Each step has a process time (Pt) estimate, which is the time estimated to do the step

  • Each step has a wait time (Wt) estimate which is the time waited until after the end of the step to the start of the next step

  • Each step may have a non-value-added (NVA) time estimate which may or may not be wasted time (example: waiting for document approval)

  • Cycle time (Ct) is the sum of all Pt, Wt and NVA estimates and provides an estimate of the time from step 1 of the process until the completion of the last step.

 

The OFT discovered that the goal is to design the process for minimum Cycle time (Ct) and Cost - without loss of customer satisfaction or quality of product or service outputs

 

The LFT discovered that if process Ct is minimized, then the costs for executing the process also drop, which makes the CFO and CEO happy!

 

Then came the challenge of designing the new Elafino DanceSport Services that emerged during OE21 2.1 and 2.2 Strategy Planning and Implementation. The OFT, with support from the other focus teams, experienced the application of OE21 Guideline 6.1a to the existing Hockey and Figure Skating services and the new DanceSport Services.

 

The following summarizes their experiences:

  • First, the OFT and CFT used the OE21 Product/Service Requirement Specification document (template) to create the requirements for the Hockey and Figure Skating processes. The CFT provided the most recent customer requirements and desires to help design the processes.

  • Next, the OFT and CFT used the OE21 Product/Service Requirement Specification document (template) to create the requirements for the new DanceSport Services.

  • Next, the OFT used the ACI-Process Design tool to create the Process Chart for the Hockey, Figure Skating, and DanceSport Services. This activity was of great value in learning the steps and responsibilities for making the DanceSport service work as efficiently as possible.

 

  • The OFT and LFT used the DanceSport Process Charts as a reference to create a new Project Plan for implementing the service. This plan included procurement of outside services to re-purpose Rink 3 and make it ready to support DanceSport events.

 

  • The WFT (including HR Manager) used the DanceSport Process Chart as a reference to identify the kinds of talent (people with skills in the service) that HR will need to recruit. DanceSport professional instructors will be of great value to find and hire. Other people who have skills defined in the DanceSport Process Chart should be recruited. Some of the current employees in the Figure Skating service may want to be cross-trained in the DanceSport services.

 

  • The LFT (CFO and others) used the DanceSport Process Chart to get initial estimates of the cost of goods sold (COGS). The also used the DanceSport Project Plan to understand the total costs and time needed to re-purpose Rink 3 for the DanceSport events.

 

  • The LFT (CFO) used all the DanceSport design outputs listed above to set up the new DanceSport Work Units for integration into the Operations Department.

 

  • The CFT (Marketing VP) used these outputs and the OE21 Opportunity Marketing process to help create the many marketing and sales tools needed to launch and market the DanceSport to the Elafino Sports Center target customers and service areas. The CFT learned that the new DanceSport service significantly widens the Elafino Service area because the DanceSport has a state-wide, national and potential international attraction.

 

Progress Report: The Elafino focus teams are well on their way to learning how to design and integrate new products and services that help sustain and grow their business! Now they know how to use the OE21 tools, including:

  • Process Charts

  • Product, Service and Process Requirements Specifications

  • Standard Operating Procedures integrated with Work Units

  • Project Plans for new initiatives (such as DanceSport)

  • Design Metrics and the Performance Measurement System (PMS)

Input Product and Process Design Metrics into PMS - The OFT used the Excel Workbook named: OFT_7.1_PMS_Operations_Excellence_Metrics (.xlsx) to help select and input design metrics. 

The Elafino OFT began the regular process of selecting, input and tracking critical measures for Process Management, including:

  • Processes Charted % - The % of key processes are charted vs. target of 100%

  • Process Cycle Time - The % of key processes meeting their Cycle time (Ct) targets

  • Process Cost - The % of key processes meeting their process cost ($) targets

 

On a quarterly basis, the OFT with support from all focus teams use the Performance Measurement System to monitor trends of process management initiatives versus goals. Usually, these are updated quarterly, or when changes in conditions require updates. The OFT appropriate action to drive measures towards their goals. When goals are met, the OFT may raise the goals higher, as appropriate.

 

Figure 6.1a-1 is an example Trend Chart and Action Plan for the % of Key Processes Charted.

Figure 6.1a-5 Example Trend Chart for Standard 6.1 Results

The Elafino LFT (IT Manager) published the 6.1a Product, Service and Process Design output results on the Elafino INTRANET, and notifies all focus teams and managers of these updates.