KAUNAS UNIVERSITY OF TECHNOLOGY

SCHOOL OF ECONOMICS AND BUSINESS

DEPARTMENT OF ECONOMICS

Business process management: Paper Work

Operation And Process Management

Author:
Rahul Singh
Vipra Trivedi
Midohoabasi Essienubong
Adeyemi Kazeem Ajayi
Ogunsola Kelvin
Supervisor:
Assoc Prof. Mantas Vilkas

Kaunas, 2015

Contents
Assignment 1. New product development

1.1 Identify product or service you will be analyzing

1.2 Prepare a customer requirements tree for a product or service

1.3 Ranking of the importance of customer requirements

1.4 Prepare a value proposition for product or service

1.5 Prepare quality function deployment for a product/service you are analysing

Assignment 2. Process architecture

1. Identify how many and what kind of value chains constitute your organization

2. Identify processes of organization

3. Group identified processes and expand them

4. Draw a process map, consider showing core processes, their interaction, and main interested parties. 8
5. Comment the relationship of vertical organizational structure and horizontal organizational structure. 9
Asignment 3. Process flow analysis

10

1. Select a process, which is going to be analysed

10

2. Select a type of process diagram and flowchart selected process

10

3. Indicators of process (which allows to measure if process performs well)

11

4. Draw a concept map for a process and mark important concepts, which should be shared

11

ASSIGNMENT .4

12

1A. To initiate the incremental improvement project according to six sigma DMAIC method to solve a
problem/defect that is causing financial and customer satisfaction looses for ZARA by the customer service
representatives staffs.
12
2. Initiate or describe reengineering project

15

Business Process Reengineering

15

Elements of Reengineering

15

How Business Process Reengineering works:

16

Uses of Business Process Reengineering for Companies:

16

2A. Describe a radical improvement initiative which could drastically improve characteristics of a process
of an organization.
16
Supply Chain Evolution
ASSIGNMENT 5. Lean systems

17
19

1. Identify value you are providing for customers

19

1.2 Identify interested parties and their requirements for your organization and product/service

19

1.3 Identify customer's requirements at different touchpoints

19

2. Value stream mapping and waste identification

20

2.2 Identify waste

20

3. Initiation of flow

21

Assignment 1. New product development

1.1 Identify product or service you will be analyzing
Product or service

Zara Fashion

1.2 Prepare a customer requirements tree for a product or service

Product or service you
are analyzing

Customer requirements

Descriptions and explanation if necessary

A
more discount
B
Improvise men section in stores
C
Affordable costs
D
No newsletters
E
Quality satisfaction
F
Different in product range
..

Zara fashions

1.3 Ranking of the importance of customer requirements

Customer requirement
A More discount

A
-

B
B1

C
C1

D
A1

E
B2

F
B2

Sum
7

Rank
2

B improvise men section

B3

B3

B3

B2

11

C affordable costs

C2

B1

A2

D no newsletters

C2

A1

E quality satisfaction

B2

F different in product range

Evaluation: 0 equally important; 1 a little more important; 2 more important; 3 a lot more important

1.4 Prepare a value proposition for product or service

Title
1. Product/service scope
1.1 Product differentiation
(exactly what is the
product)

Description
Fashion retailing B2C

1.2 Geographic location

Worldwide

1.3 Customers segment

2. Advantage
2.1 Oder winning
characteristics (from 1.2)
2.2 Oder satisfying
characteristics (from 1.2)

Male female young old kids

Just in time production and affordable prices
Quality of good, fast service, online internet shopping

1)increasing style
2)Increase in the quality
3)increase in trend

Quality of cloths, brand name, product range

1.5 Prepare quality function deployment for a product/service you are

analysing
Customer
requirem
ents /
Engineeri
ng
character
istics

Imp
ortanc
e

Customer perception

+
+
+
+
+
Technic
al
targets
Your
product/se
rvice
Competito
rs1
product/se
rvice
Competito
rs2
product/se
rvice

Assignment 2. Process architecture

1. Identify how many and what kind of value chains constitute your
organization
A

Clothings

Footwears

E-commerce

Accesories

2. Identify processes of organization

Groups of processes
Title of
chain A

Level 1 processes
value

A1.0

A2.0

A3.0

A4.0

Inbound logistic

operations

Outbound
logistic

Market
sales

and

services

Inbound logistic

Operations

Outbound
logistic

Market
sales

and

services

Clothings

Operations
/
value
chains

A5.0

....

Title of
chain n

value

(website
maintanance)

Ecommerce

Human capital(6.1)

Support and management

I.T management(7.2)
Manage customer services(5.3)
Diliver product and services(4.5)
Managing financial resources(8.1)

Groups of processes

Level 1 processes

Level 2 processes

Operating

3. Group identified processes and expand them

A1.0 inbound logistic

Material handling

A2.0 operations

Menufacturing

A3.0 outbound logistic

Order

Title of value
chain A
CLOTHINGS

Processing
Shipping
A4.0 marketing and sales

Product
Pricing
Promotion
Place

A5.0 services

Repair
Customer services

....
Inbound logistic
Title of value
chain n
e commerce
Operation

Outbound ogistic

Market and sales

services
Human Capital

Develop and
(HR)planning

manage

human

resources

Support and management

I.T management

Develop and manage IT customer relationship

Manage customer services

Measure and
operaions

Diliver product and services

Manage logistic and warehousing

Managing financial resources

Perform planning and management acounting

evaluate

customer

service

4. Draw a process map, consider showing core processes, their interaction,

and main interested parties.

Start

find cloth material

No

Cloth
ready to
use

Yes
Manufacture cloth

Transport cloth to
warehouse

Bring it to the place

Package goods

Transport Goods to
retail shop

Distribute the needed

items to
retailers/shopkeeper

Package distributed
cloths/goods

Transport goods to
main store
Consumer

END

5. Comment the relationship of vertical organizational structure and horizontal

organizational structure.
Vertical:
The vertical organization has a structure with power emanating from the top down. There's a well-defined chain of command
with a vertical organization, and the person at the top of the organizational chart has the most power. Employees report to the
person directly above them in the organizational structure. Each person is responsible for a specific area or set of duties.

Horizontal:
A horizontal organization has a less-defined chain of command. Employees across lines have similar input into how the
organization is run. Instead of each person having clearly defined duties, employees may work in teams, with everyone on the
team having input. Employees may perform many different function and may report to several supervisors, rather than a
single boss. Project managers or team leaders report to a team of supervisors, with members of each team being essentially
equal in terms of power.

Asignment 3. Process flow analysis

1. Select a process, which is going to be analysed
Title of a process:

Shopping at Zaras store

2. Select a type of process diagram and flowchart selected process

Traditional flow chart
Customer
Enters

Knowing
of customer

needs

Self searching
for product

Analyzing the type of

customer need

Unclear

Caus
e
clear
?

Clear

Cheaking For Fitting

Finding Alternative
Self Searching
Payme
nt

Conviencing customer
for another product

Size and fitting check

If Buy
BUY
not

or

CARD/CASH

If Not Buy
Ask for satisfaction

Custome
r Exits

3. Indicators of process (which allows to measure if process performs well)

Indicator area
Capacity

Title of indicator

Description how will be measured

Input

The input will be measured with the aim of the output product in mind and the
desired qualities and characteristics it should have.
This will be measured in relation to the quantity of Material that was used.

Efficiency
output
Quality
Cloth material
Shape
size
measurment

and

The material of the goods or clothing must be checked and made according to
level of expectation
The goods or cloths or accessories or footwear must be checked for size error
and should be made by keeping in ind the fitness and firmness

Other, if
relevant

4. Draw a concept map for a process and mark important concepts, which
should be shared

Concept
Map

Garment

Inspection

Pressing/
finishing

Final
inspection

Marker making

Design/sketch

Sample
making

Packing

Production
pattern

Grading

Ready for export

Dispatch

spreading

Cutting

Sewing/assem
bling

ASSIGNMENT .4
1A. To initiate the incremental improvement project according to six sigma
DMAIC method to solve a problem/defect that is causing financial and customer
satisfaction looses for ZARA by the customer service representatives staffs.
1.1 We Define: A problem/defect is simply explained as any component that does not fall within the
customers specification limits.
Customer Service Representatives role is to provide customer service support by obtaining, analyzing
and verifying the accuracy of ordered information. To initiate and implement corrective action as needed
in order to ensure that an excellent standard of service and high level of customer satisfaction is
maintained. And to provide optimal customer service using Gipi system and Customer service
management systems.
We identified the level of problems in the customer service centre faced by the customers from our
C.S.R. staffs according to their complaints and we have chosen to eliminate them.
1.2 We Mesure: Data collection
The group collected samples of 100 customers selected to represent the overall population. A
questionnaire has been used for data collection with identified 5 main problems associated with
customer service of ZARA by the C.S.R team:
a. Staff cooperation
b. Skills of the staff
c. Time taken to solve the problems
d. Help provided by the staff
e. Customers satisfaction of the C.S.R.
The results of the questionnaires are given in Table 1 below:
Table 1: Customers Responses
Questions
Cooperation
Skill
Time
Help
Satisfaction

Responses in NO %
50
50
90
40
60

Responses in YES %
50
50
10
60
40

The above table shows the percentage of the responses as provided by the respondents.
Respondents rate the cooperation and skills 50% each in both yes and no column. However,
respondents are strict in rating the time element i.e., 90 percent say no response and 10 percent say
yes responses. Forty percent respondents are not satisfied by the proper help provided by the
C.S.R. staffs. To represent the responses with no, in the Pareto chart, the scale of 0-10 points was
selected (shown in the Figure 3).
Table 2: Occurring Scale
Problems
Cooperation
Skill
Time
Help
Satisfaction

Occurring Scale
5
5
9
4
6

Six sigma techniques have been used in this study, and Pareto chart is the technique used for explaining
the problems. The problems are indicated against a scale of intensity e.g. in our study, the scale set was
0-10. 0 is the least intense and 10 being the most intense value of problem. These charts help to
breakdown a problem into the relative contributions of its components. They are based on the common
empirical finding that a large percentage of problems are due to small percentage of causes.

Figure 3: Pareto Chart 1

The Pareto chart in Figure 3 shows the level of C.S.R. problems in the customer service centre.
Problems were classified in 5 main categories which are:
Cooperation of the staff
Skills of the staff
Time taken to solve the problem
Help provided
Customer Satisfaction
A sample of 100 customers was taken. The frequencies of these problems are:
Cooperation: 5
Skill: 5
Time: 9
Help: 4
Satisfaction: 6 Out of 10
These frequencies represented the data in the form of the chart. The chart shows that the major problem
in the customer service centre encountered by the customers is the time taken to solve the problem with
the maximum value of 9; second major problem is the customers satisfaction of the service of the centre
with the value of 6 out of 10. The C.S.R. staff cooperation and skills required are needed to be
addressed. Both of these had a value of 5 each.
Last problem was the help needed by the customers, with the value of 4 out of 10.
1.3 We Analyze: This stage served as a guideline for ZARA to observe current performance position,
and condition to form a baseline assessment of performance from the causes of the defects. In addition,
it provides the management and process executives with information about causes and influence of the
problems. The main tools used was the cause and effect analysis diagram (see Figure 4) to determine
causes of problem. And to determine and assign influence to the identified causes. Also to rank the
causes according their influence to the problem.

The Causes were related to the availability of staff, assistance needed, consulting more than 1
representative, multiple contact to customer service centre, customers satisfaction, training, workers
experience and education.
Customer Satisfaction
Cooperation of the
Co
ntact to
the centre
multiple
times

Consulting more than one

agent
staff

Availability of staff
Skills of the

Education

The level of problems

in
customer
the
service centre.

Training
Workers experience
Support
required

Figure 4: Cause and Effect Analysis

Table 5: Rank of Influence of Problems
Problems
1. Availability of staff
2. Assistance needed
3. Consulting more than 1 representative
4. Multiple contact to the centre
5. Customers satisfaction
6. Education, Training & Experience

Influence %
0
30
10
30
10
20

1.4 We Improve: For improvement, the focus is to treat the details defects and develop the proposed
solution on the basis of our findings, and there are some recommendations for ZARA C.S.R. staffs for
better customers satisfaction i.e.,
i)
Cooperation of the staff is very important especially in this kind of sector where the whole
business entirely depends upon customers positive feed-back and satisfaction level, as many
other alternatives can easily be obtained from the companys competitors.
ii)
C.S.R. staffs at the customer service centers should be trained enough so that they can deal
better with customers according to their specific problems. There should be minimum
response time to customers problems. This can again increase the credibility of ZARA as
compared to other fashion chain companies.
iii)
Enough assistance and help is needed to be provided to the new as well as the existing
customers. This will lead to more customers satisfaction and more usage of the customer
service centre.
iv)
Staff of the customer service centre should be available for assistance and help, this can
increase customer trust on the reliability of the centre and enhancement of the companys
financial gain.
v)
Customer service centre can follow six sigma approaches to manage the existing customers
as well as attracting new ones. This will not only improves processes but will also lead to
strong customer base, customer satisfaction and financial benefits.
1.5 We Control: In this stage, a questionnaire has been used again for data collection on the level of the
identified 5 main problems associated with customer service of ZARA by the C.S.R team after the
improvement means have been implemented. These data table acted as a guideline to prevent role back
of process in the future. Moreover, documentation of variation causes and how the improvements were
carried out will be institutionalize as the companys culture or state of mind. Establishing required

training, and incentive programs are the main recommendation to insure process improvement control
for the organizations performance, effectiveness, and image in the future.
Questions
Cooperation
Skill
Time
Help
Satisfaction

Before Improvement
Responses in Responses in
NO %
YES %
50
50
50
50
90
10
40
60
60
40

Questions
Cooperation
Skill
Time
Help
Satisfaction

After Improvement
Responses in Responses in
NO %
YES %
25
75
20
80
40
60
30
70
20
80

The success of this Six Sigma projects are due to its results orientation, data driven and ability to align
the goals with objectives across the organizations to improve the financial and customer satisfaction.

2. Initiate or describe reengineering project

Business Process Reengineering
Business Process Reengineering involves the radical redesign of core business processes to achieve
dramatic improvements in productivity, cycle times and quality. In Business Process Reengineering,
companies start with a blank sheet of paper and rethink existing processes to deliver more value to the
customer. They typically adopt a new value system that places increased emphasis on customer needs.
Companies reduce organizational layers and eliminate unproductive activities in two key areas. First,
they redesign functional organizations into cross-functional teams. Second, they use technology to
improve data dissemination and decision making.
Elements of Reengineering

How Business Process Reengineering works:

Business Process Reengineering is a dramatic change initiative that contains five major steps. Which
are:
Refocusing company values on customer needs
Redesigning core processes, often using information technology to enable improvements
Reorganizing business into cross-functional teams with end-to-end responsibility for a process
Rethinking basic organizational and people issues
Improving business processes across the organization
Uses of Business Process Reengineering for Companies:
Companies use Business Process Reengineering to improve performance substantially on key processes
that impact customers. Business Process Reengineering can:
Reduce costs and cycle time. Business Process Reengineering reduces costs and cycle times by
eliminating unproductive activities and the employees who perform them. Reorganization by
teams decreases the need for management layers, accelerates information flows, and eliminates
the errors and rework caused by multiple handoffs.
Improve quality. Business Process Reengineering improves quality by reducing the
fragmentation of work and establishing clear ownership of processes. Workers gain responsibility
for their output and can measure their performance based on prompt feedback.
2A. Describe a radical improvement initiative which could drastically improve
characteristics of a process of an organization.
Reengineering: Transforming Intels Supply Chain to Meet Market Challenges.

Figure 1. Multiple generations of process technology in high-volume manufacturing and the global
nature of Intels manufacturing business add complexity to the supply chain.
As shown in Figure 2, there are also many industry- and market-driven supply chain challenges.
Expanding product offerings and shrinking product life cycles, new and shifting market conditions,
emerging regulations, and more demanding customer expectations require that Intel continue to improve

on existing supply chain processes while being able to quickly adapt to new supply chain business
requirements and create solutions to support them.

Figure 2. Market pressures require an efficient and agile supply chain.

Supply Chain Evolution
While being much closer to the corporate supply chain vision illustrated in Figure 3 below, the
transformation to implement additional IT-enabled solutions proceeds to support changes in market
conditions and new markets Intels product will serve in the future.
Emerging supply chain challenges include the following:
A continually increasing portfolio of products and services, such as Ultrabook devices, tablets, smart
phones, and embedded technologies
Issues related to the global supply chain, including government regulations, available infrastructure,
worker location, environmental sustainability, and social media
Emerging markets and expanding customer reach.
To address these challenges, Intel look to implement agile and adaptable IT solutions that can be used
across multiple supply chains. Clear identification and definition of business requirements for the
various supply chains, including service levels and supply chain models, this will allow Intel IT to be
more effective in delivering robust solutions that can be quickly changed to support market conditions
and customer requirements.

Figure 3. Intels supply chain vision builds on early improvements to processes and responsiveness.

Table 1. Results of IT-enabled supply chain transformation

As the market continues to change and Intels business evolves and accelerates, there is continuation to
implement flexible, adaptable, and expandable IT-enabled solutions that will further transform Intels
supply chain and increase Intels competitiveness.

ASSIGNMENT 5. Lean systems

Implement lean project for A)an organization or B) Visit caf or restaurant or other relevant organization
and identify value organizations provides, prepare value stream map for order delivery process by
carefully measuring time. Propose what types of potential waste may constitute the process you are
mapping. Comment on waste elimination means.
Option B
1. Identify value you are providing for customers
1.1 identify customer requirements for a product/service
Product/service
Customer requirement
Market (Maxima)
Availability of Product
Freshness of Product
Discount for Product
Well organized market in terms f product arrangement
Different range and brands of Product
Good customer service relations in terms of complaint
1.2 Identify interested parties and their requirements for your organization
and product/service
Product/service
Customer requirement
Government
Wholesomeness and Freshness of Product
(Food, heath and other Product should be what it claims to be on the packet, wrap or container
regulatory government
Product should carry the approved price range i.e customers should not be
agencies)
exploited
Approved products should be sold
Food and Beverage Availability of Product
Vendors
Discount, especially when large and big quantities are bought
Reward for customer loyalty if they have been buying from you over a long
period of time
Wholesomeness and Freshness of Products
Distributors
and Lower Pricing
Suppliers
Prompt response to orders
Respect for the terms of signed partnership agreement
Availability of different brands and capacity to get products based on high
customer demand.
1.3 Identify customer's requirements at different touchpoints
Product/service
Customer requirement
Arrive Shop/Market Wide entrance
Ease of access to trolley
Safe and secure place to keep items with customer at arrival in the shop
Clean and none slippery floor at the entrance (especially during wet seasons)
Select Product
Ease of access to products
Different variety and brands of product
Clear labelling of product row and price tag
Free passage and aisle

Payment

Negotiate Problems

Fast payment without waiting on the queue for long

Availability to pay in different methods (Cash or Card)
Payment made for product should be the same price of product during selection
Friendliness of the employee at payment point
Feedlines and politeness of customer relation agent at point of complaint
Willingness to change product if complains are genuine
Willingness to refund if complains are genuine and customers seeks a refund
Timely and Prompt response

2. Value stream mapping and waste identification

2.1 Prepare value stream map of your company value chain or other process you want to Lean.
1min
Arrive Market

30secs
Pick Trolley

5mins
Select first Product

15mins
Select other Products

Making Payment
WM
10 mins

Waiting Time = 10 minutes

Activity time = 1+ 30(secs) + 5 + 15 = 21min 30secs ~ 22minutes

Type of waste
Waiting time
Defects

Overproduction

Too much
inventory of
parts
Unnecessary
motion
Unnecessary
transportation
Other

2.2 Identify waste

Description
Company specific waste
Waiting to make payment
10 minutes
Use of material, labor and capacity Expired product, open electronic boxes,
for production of defects, sorting
wrong tagging of price
out bad parts or warranty costs with
customers
Producing more than the demand of Leading to keep expired product ,too
customers, resulting in unnecessary much stock in the inventory
inventory, handling, paperwork,
warehouse space
Excess inventory of elements, parts Overloading of stock, old stock need to
due large lot sizes, obsolete items,
keep on low price
poor forecasts or improper
production planning
Wasted movements of people or
Waste of time in getting a product ,
extra walking to get materials
reaching to product time increase
Double or triple movement of
materials due to poor layouts, lack
of coordination and workplace
organization

3. Initiation of flow
Propose means of elimination of identified waste in value chain or processes. If necessary use causeeffect diagram to identify causes of particular types of waste.
Waste
Extent of
Mean of elimination
waste (min,
%, other)
Cooked or prepared food (salads,or 60%
Cooking or prepare in less amout or measurable
food),vegetables,beverages
amount
3%
Waste of time in quea
20%
Too much inventory

Making more ounter of selfservice counters

,express counters number incresed
Overstopping, too muchtime to find product.