Control the Process to Control the Result:
The guidebook “From-Chaos-To-Control” explains 5 simple steps to boost results by standardizing processes and creating effective work procedures.
From Chaos to Control Through Clear Processes
The results we achieve are largely dependent on the processes we follow, “we get what we do”. The more we are aware of these processes, the better we can steer and influence the result, and the more control we gain control over our destiny, and that’s our starting point.
We learn now how to create and implement policies and procedures that specify the best way to think, plan, and work. Graphically, we can visualize this concept as follows:
Set Procedure » Control Process » Better Results
In the following chapters, we will discuss how to standardize work processes and create highly effective, professional procedures. This is achieved by using work standards. The exercises at the end of this book will allow you to test your understanding and apply your knowledge of these topics. Ultimately, you will create your own work standard.
What Is a Work Standard and How Does It Work?
The primary role of a work standard is to guide users through every step of a process, specifying exactly what to do and how to do it. Properly constructed work standards make work processes reliable and ensure predictable results. In effect, work standards are used to train people and manage their output in a consistent fashion; the decision-making and physical labor are delegated to those closest to the actual work. Thus, work standards free managers from operational tasks, allowing them to focus on strategic tasks that will grow the business rather than just sustain it. As a result, processes run faster and smoother with shorter cycles. They produce less waste and fewer mistakes, resulting in a much higher quality (sigma level). When work standards are implemented into the workflow, processes are guaranteed to become leaner while delivering more value to the customer at a lower cost to the provider.
The Process House
The Process House is a simplistic model used in manufacturing and services to organize processes around a value-chain. You can think of this concept as follows: core processes build the value-chain, while support-processes enable the value-chain.
- SCM – Supply Chain Management: sourcing, logistics, warehousing
- PLM – Product Lifecycle Management: research and product development
- OPS – Operations: manufacturing and service operations, incl. administration
- CRM – Customer Relationship Management: sales, marketing, after-sales service
- HR – Human Resources
- FC – Finance and Controlling
- IT – Information Technology
- QM – Quality Management
Since most companies today are organized by functions — for example Sales and Marketing, Engineering, Manufacturing, Logistics, Finance, Quality etc. — the Process House model can be adapted to any business. For a service business, you would need (1) a commercial process to promote and sell the service, (2) a technical process to develop service features, (3) a sourcing process to purchase hardware, software, and assistance from third parties, and (4) a service delivery process, equivalent to the production process in a manufacturing business.
"From Chaos To Control" Covers 18 Topics
- Need for Processes
- Process Hierarchy
- Process House
- Core and Support Processes
- Measuring Process Quality
- Six Sigma Model
- Capability Maturity Model
- Hard Rules of Process Management
- Lean Strategies for Lean Processes
- Benefits of Standardization
- Overcoming the Barriers to Standardization
- 5 Steps to build a Standard Operating Procedure
- Procedure Model SIPOC+MOTIV
- Procedure Template and Exercise
- Procedure Sample for Warehouse
- Procedure Sample for Administration
- Procedure Sample for Parents
- Frequently Asked Questions (FAQ)