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  • © Warwick Business School 2007

    Nigel Slack Warwick Business School University of Warwick, UK

  • © Warwick Business School 2007

    What today is about

    What is happening in operations and process management?

    Overcoming some of the major challenges?

    How technology can impact on process performance

    Performance improvement through e-marking, how one organisation made it work

    What helps to ensure effective process change

  • © Warwick Business School 2007

    The power of process .

    The way we manage our processes indicates how serious we are about adding value for our clients, our stockholders and ourselves (Dan McHugh, Global Head of Operations and Product Control, CSFB)

  • © Warwick Business School 2007

  • © Warwick Business School 2007

    The operations function is fashionable!

    The consultancy services market

    % of world revenues of 40 largest firms

    Marketing/sales 2

    Operations and process management

    31

    Corporate strategy 17

    IT strategy 17

    Benefits/Actuarial 16

    Organizational design

    11

    Financial 6

  • © Warwick Business School 2007

  • © Warwick Business School 2007

    Processes excellence

    What do you get from great process management .

    Enhanced service

    Secure revenue

    Lower costs Process

    efficiency

    Reduced errors, better resilience

    Lower operational risk

    Higher capacity utilisation

    Lower capital requirements

    Capabilities for future innovation

    Opportunities for process learning

  • © Warwick Business School 2007

    Q On what aspects of performance does process management most impact?

    Cost / savings / efficiency etc.

    89%

    Service to clients /

    customers

    47%

    Risk / resilience / franchise protection

    29%

    Little / no impact

    11%

    L/T capabilities / innovation etc.

    7%

  • © Warwick Business School 2007

  • © Warwick Business School 2007

    Differences within sectors are usually greater than the differences between sectors

    Financial services

    An account management centre at a large retail bank

    Financial analyst advising a client at

    an investment bank

    Furniture manufacturing

    Mass production of kitchen units

    Craft production of reproduction

    antique furniture

    Hotels

    Value-for-money hotel

    Lobby of an international luxury hotel

  • © Warwick Business School 2007

    What really matters are such factors as .

    For example ......

    Volume

    Variety

    Variation

    Visibility

    And .....

    Risk

    Complexity

    Discretion

    etc.

    Volume and variety are particularly influential in the way processes are managed

    The sectoral context is less important than you think

  • © Warwick Business School 2007

  • © Warwick Business School 2007

    New approaches can easily be misinterpreted