Page 367 - Design for Six Sigma for Service (Six SIGMA Operational Methods)

Design and Improvement of Service Processes—Process Management 327

or be computer-based. Increasingly, attempts are being made to automate
and integrate more and more of these processes in search of the so-called
paperless office. Performance in office processes is often judged in terms of
the process cost and efficiency. In addition, many organizations are driving
toward a reduction in errors generated by the process. Some of these errors
can be very expensive and may cause serious problems for the organization.
The office process has a lot of similarities with the manufacturing process.
They are both step-by-step sequential processes, and each step contributes
some value to the completion of the job. However, office processes are usually
more dependent on people and less dependent on hardware compared with the
manufacturing process.

Examples of Office Processes
Insurance, mortgage and loan

Office Process Performance Metrics
Number of Errors or Defects
The average number of errors or defects in each transaction is an important
indicator of office process quality. Clearly, errors and defects will cost both
customers and service providers, and they should be reduced to a minimum.

Lead Time
Lead time refers to the time from the beginning to the completion of a
transaction. It is similar to the production lead time in the manufacturing
process. Again, in general, the shorter the lead time the better because all
customers want quick and error-free transactions. In addition, a shorter lead
time means a smaller work force, so it saves service providers money.

Work-in-Process Inventory
Similar to the manufacturing process, the WIP inventory refers to semifinished
paperwork and transactions between process steps. The lead time for a
process is very closely related to the level of WIP. This semifinished
paperwork may sit in drawers, bins, interdepartmental mail, or even become
lost in the paper trail. Excessive amounts of WIP will certainly slow down
the office process and will likely create errors.

Throughput
Similar to the manufacturing process, throughput is the rate at which a
process produces its output. Higher throughput in the office process usually