PROCESS REDESIGN

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Process redesign refers to changing or simplifying the steps in the key ... An example is given here, where process redesign has reduced a 4-step process to a ...
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PROCESS REDESIGN (FOOD SERVICES)

Enabling Enterprise

What is

Process Redesign? Published by SPRING Singapore 1 Fusionopolis Walk, #01-02 South Tower, Solaris Singapore 138628 Tel: 6278 6666 Fax: 6278 6667 www.spring.gov.sg

Process redesign refers to changing or simplifying the steps in the key processes to remove wasteful activities that do not add value, and focus on improving activities that do. An example is given here, where process redesign has reduced a 4-step process to a 2-step process.

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Step 1

Whilst every effort has been made to ensure that the information contained herein is comprehensive and accurate, SPRING Singapore will not accept any liability for omissions and errors.

Step 2

Step 3

Step 4

Process Redesign

Step 1

Step 2

Step 3

Step 4

1

WhY

How

should I use

do I use

Process Redesign?

Process Redesign? Identify key processes to improve and use a 4-step approach to simplify each process. This approach is illustrated below, with examples included under each step.

Reduce

1 Mistakes by employees

Waste

Costs

STEP 1 List the steps in the current process

1

2

3

4

Wait to be seated

Usher to table

Look at menu

Call for waiter

8

7

6

5

Serve order

Prepare order

Process order

Take order

Improve

Employee morale

2

Customer service

Efficiency

Profit margin and revenue

9

10

11

12

Enjoy meal

Call for bill

Print bill

Present bill

17

16

15

14

13

Clear table

Leave restaurant

Submit receipt/change

Process payment

Make payment

3

2

STEP 2 Look out for the different types of waste and find out the causes of the waste in each step

Determine the wastes in each step Waste • Waiting - Time lost while idle in queue

Work with the employees involved in each step to identify the wastes. Use the Fish Bone Diagram and the 5 Whys to find out the causes of each waste. These are illustrated below: Step 1: Wait to be seated

Fish Bone Diagram Employees are not aware of the defects Employees are complacent and negligent

Employees do not highlight the defects

Causes • Not well prepared for surge in customers • Unaware of availability of self-help/mobile ordering software • Not enough knowledge of how to use technology or simple gadgets

Waste: Defects There is a recent change of supplier

Supplier Job roles has provided are not a batch of assigned defective products

Waste • Movement - Shortest route not used to get to the empty seats

Employees do not perform quality checks

Direct Cause Indirect Cause

On the diagonal lines, write the direct causes of the waste. For example, if there are 3 direct causes to the waste, there should be 3 diagonal lines.

Step 2: Usher to table

On the short horizontal lines, write the factors (indirect causes) that result in the direct causes of the waste.

Waste • Waiting - Time spent discussing menu items

5 Whys Write down the waste and ask “why” five times to identify the causes. Example: Waste: Overprocessing Why? Employees are not clear of the specifications. Why? There is no communication or training provided to employees. Why? There are no standard operating procedures (SOPs).

Causes • Disorganised restaurant layout • No clear communication between employees • Unaware of availability of self-help/mobile ordering software • Not enough knowledge of how to use technology or simple gadgets

Step 3: Look at menu

Causes • No preview of menu at entrance before being ushered to table • Unaware of availability of self-help/mobile ordering software • Not enough knowledge of how to use technology or simple gadgets

Why? Company is not aware of the importance of SOPs. Why? There is no benchmarking or survey done to assess current performance. Generally, by the fifth “why”, the company should be able to get to the real root cause of the waste. 4

5

Waste • Waiting - Time lost seeking attention - Time lost waiting for next available waiter Step 4: Call for waiter

Causes • Poor manpower planning • Unaware of availability of self-help/mobile ordering software • Not enough knowledge of how to use technology or simple gadgets Waste • Over-processing - Error-prone manual process due to hand-written order slips

Step 5: Take order

Step 7: Prepare order

6

Step 8: Serve order

Causes • No clear communication between employees • Unaware of availability of self-help/mobile ordering software • Not enough knowledge of how to use technology or simple gadgets

No Waste

Waste • Waiting - Time spent waiting for service

Step 10: Call for bill

Causes • Unaware of availability of self-help/mobile ordering software • Not enough knowledge of how to use technology or simple gadgets Waste • Defects - Preparing an order that was placed incorrectly • Over-production - Preparing excess items that were not ordered - Preparing items ahead of order

Causes • Disorganised restaurant layout • No clear communication between employees • Unaware of availability of self-help/mobile ordering software • Not enough knowledge of how to use technology or simple gadgets

Step 9: Enjoy meal

Causes • Unaware of availability of self-help/mobile ordering software • Not enough knowledge of how to use technology or simple gadgets Waste • Movement - Trips made to kitchen to place order • Over-processing - Time spent keying order into POS system

Step 6: Process order

Waste • Movement - Distance travelled to deliver order - Risk of delivery to wrong table based on hand-written order slip

Step 11: Print bill

Causes • Disorganised restaurant layout • Unaware of availability of self-help/mobile ordering software • Not enough knowledge of how to use technology or simple gadgets

Waste • Over-processing - Error-prone process of manual printing • Waiting - Time spent waiting for printed bill • Movement - Distance travelled to print bill Causes • Disorganised restaurant layout • Unaware of availability of self-help/mobile ordering software • Not enough knowledge of how to use technology or simple gadgets 7

Waste • Over-processing - Error-prone due to manual processing of paper bill • Waiting - Time lost checking bill for accuracy Step 12: Present bill

Causes • Unaware of availability of self-help/mobile ordering software • Not enough knowledge of how to use technology or simple gadgets

Step 13: Make payment

No Waste

Waste • Waiting - Time spent processing paper bill Step 14: Process payment

Causes • Unaware of availability of self-help/mobile ordering software • Not enough knowledge of how to use technology or simple gadgets

Step 15: Submit receipt/change

EXIT Step 16: Leave restaurant

No Waste

8

STEP 3 Redesign the process

Identify solutions for each step. Redesign the process by combining sequential steps with similar solutions. For any change that is considered, ask the following questions:

• What is the change?



• Who is involved in the change?



• How can the change be made?



• What are the costs of the change?



• Who bears the costs of the change?



• What are the benefits of the change?



• How can the benefits of the change be shared?



• Do the benefits outweigh the costs of the change?

Evaluate if the change is worth making by measuring the current and future benefits of the change against the current and future costs of the change. If the current and future benefits exceed the current and future costs, implement the change.

Waste • Movement - Route between tables before exiting

B A

Causes • Disorganised restaurant layout

Waste • Movement - Route between tables before cleaning • Over-processing - Not utilising tools/gadgets to clear table efficiently Step 17: Clear table

3

Causes • Disorganised restaurant layout • Not enough knowledge of how to use technology or simple gadgets

A

Current + Future Benefits

B

Current + Future Costs

Change!

9

Waste • Movement

I want to redesign my current process by combining steps to reduce waste. Step 8: Serve order Waste • Waiting

Step 1: Wait to be seated

Process Redesign • Place menu or self-help/mobile ordering system near entrance to facilitate browsing of menu and placing of order

Waste • Movement • Waiting • Over-processing Step 2-6: Usher and process order

Process Redesign • Improve restaurant layout for easy navigation • Use walkie-talkie with ear piece to communicate location of empty table • Use a self-help/mobile ordering system to: - Locate empty table - Update latest menu items’ availability - Allow customer to browse menu electronically - Allow customer to place and confirm order - Transmit real-time order to kitchen for preparation

Waste • Defects • Over-production

Step 7: Prepare order

10

Process Redesign • Use a self-help/mobile ordering system to: - Receive real-time order to avoid producing excessive and incorrect order - Reduce time spent waiting to receive order - Avoid early preparation of food

Process Redesign • Improve restaurant layout for easy navigation • Use a self-help/mobile ordering system to: - Retain order in electronic form with clear, detailed information

Step 9: Enjoy meal

No Waste

Waste • Over-processing • Waiting • Movement Step 10-15: Bill payment

EXIT Step 16: Leave restaurant

Process Redesign • Use a self-help/mobile ordering system to: - Allow customer to activate bill payment process - Display bill electronically at an instant to reduce manpower needed - Allow customer to proceed to cashier to make payment while bill is being printed

Waste • Movement Process Redesign • Relocate cashier close to exit to reduce unnecessary movement

Waste • Movement • Over-processing

Step 17: Clear table

Process Redesign • Improve restaurant layout • Use small trolleys to transport items

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4

STEP 4 Implement the change

WHERE can I get Talk to employees about implementing the change

Make one small change at a time

HELP?

Celebrate successes along the way to improve employees’ morale

You can access the Process Redesign (Food Services) tool online at www.waytogo.sg or approach advisors for assistance at any of the SME Centres. Encourage employees to look out for other areas for improvement

SME Centre@ASME Association of Small and Medium Enterprises T: 6513 0388 E: [email protected] W: www.smecentre-asme.sg

Reward good ideas and effort in improving productivity

After implementing process redesign, I have combined steps 2 to 6 and 10 to 15 into 1 step each. At the same time, wastes in all other steps are reduced.

1

2 -6

Wait to be seated

Usher and process order

12

9

8

7

Enjoy meal

Serve order

Prepare order

10-15

16

17

Bill payment

Leave restaurant

Clear table

SME Centre@SCCCI Singapore Chinese Chamber of Commerce and Industry T: 6337 8381 E: [email protected] W: www.smecentre-sccci.sg SME Centre@SICCI Singapore Indian Chamber of Commerce and Industry T: 6508 0147 E: [email protected] W: www.smecentre-sicci.sg SME Centre@SMCCI Singapore Malay Chamber of Commerce and Industry T: 6293 3822 E: [email protected] W: www.smecentre-smcci.sg SME Centre@SMF Singapore Manufacturing Federation T: 6826 3020 E: [email protected] W: www.smecentre-smf.sg

SPRING Singapore

1 Fusionopolis Walk, #01-02 South Tower, Solaris, Singapore 138628 Tel: 6278 6666 Fax: 6278 6667 www.spring.gov.sg