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OpEx Business Process Improvement Training Module

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The Operational Excellence Business Process Improvement (BPI 7) Training Module v2.0 includes: ...

The Operational Excellence Business Process Improvement (BPI 7) Training Module v2.0 includes:

1. MS PowerPoint Presentation including 125 slides covering our seven-steps Business Process Improvement Methodology.

Get this training material from our website www.operational-excellence-consulting.com and contact us to organize a training course for your organization7

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OpEx Business Process Improvement Training Module OpEx Business Process Improvement Training Module Presentation Transcript

  • OPERATIONAL EXCELLENCEC O N S U L T I N G1 11/3/2011 – v2.0Operational Excellence – Business Process ImprovementWorkshop Instructor & Facilitator: Frank Adler, Ph.D.Operational Excellence Consulting
  • OPERATIONAL EXCELLENCEC O N S U L T I N G2 11/3/2011 – v2.0A process or value stream is a series of related activities which togetherproduce an output of value to the customer.Process or Value Stream - A Definition
  • OPERATIONAL EXCELLENCEC O N S U L T I N G3 11/3/2011 – v2.0Traditional Organizational Structure The Focus is internal to the Function or OrganizationManagementFUNCTION1FUNCTION2FUNCTION5FUNCTION6keeping theboss happygiving otherpeople workEmployeesFUNCTION3FUNCTION4
  • OPERATIONAL EXCELLENCEC O N S U L T I N G4 11/3/2011 – v2.0Process-Driven Organizational Structure The Focus is on the CustomerManagementProcessCustomerRequirements=INPUTSCustomerSatisfaction=OUTPUTSFUNCTION1FUNCTION2FUNCTION5FUNCTION6FUNCTION3FUNCTION4
  • OPERATIONAL EXCELLENCEC O N S U L T I N G5 11/3/2011 – v2.0Process-Driven Organization - The Starting PointFunction A Function B Function CInputOutput4. Everyone knows only his/her ownfunctions activities and tasks. As aresult, they make changes whichfocus on the function, not on theoverall process performance3. The functions bordersact as barriers and slow theoverall process, as work is stored atthe entry and exit points to eachfunction1. There is nocompletedescription ofthe end-to-end process.2. Functions start to makedocumentsof their own sub-processesfor their ownpurposes.
  • OPERATIONAL EXCELLENCEC O N S U L T I N G6 11/3/2011 – v2.0Process-Driven Organization - Make the Process VisibleFunction A Function B Function CInputOutputB6B5A1A3B4B3B2B1A2C1C2C3A45. Cross-functional teams are workingtogether and mapping the functionalactivities and tasks, as well as theinteraction points.6. The different functions start tounderstand each others inputrequirements, begin to see the overallprocess flow, and identify initialimprovement opportunities.
  • OPERATIONAL EXCELLENCEC O N S U L T I N G7 11/3/2011 – v2.0Process-Driven Organization - Process vs. FunctionsOutputInputA1 B2B1 C1A3 B4B3A2 C2B6 B5C3 A4Function A Function B Function C- Competence Adevelopment- Training- Resource pool- Superior relations- Competence Bdevelopment- Training- Resource pool- Superior relations- Competence Cdevelopment- Training- Resource pool- Superior relations Functions become competence centers - supplyingcompetence and resources to the processesSub-Process #1Sub-Process #2Sub-Process #3
  • OPERATIONAL EXCELLENCEC O N S U L T I N G8 11/3/2011 – v2.0Business Process Improvements (BPI 7) – Table of ContentThe main objective of the workshop is to help you improve the business by: Defining the Scope of a Process Mapping the Process Defining Process Measures Setting Process Targets Analyzing the Process Improving the Process Managing the Process3.DefineMeasures2.MapProcess1.DefineProcess
  • OPERATIONAL EXCELLENCEC O N S U L T I N G9 11/3/2011 – v2.0Business Process Improvement (BPI 7) - OverviewThen the continuous effort of processimprovement begins: set targets analyze to see if and how targets areable to be met improve the process manage process performanceBefore focusing on process improvements: define the scope map the process define the measures3.DefineMeasures2.MapProcess1.DefineProcess
  • OPERATIONAL EXCELLENCEC O N S U L T I N G10 11/3/2011 – v2.0Business Process Improvement - Management InvolvementBusiness process improvement teams need process owner andmanagement sponsor involvement at at least 5 stages of the BPI 7Process. When starting the BPI 7 Process (Step 1) To gain commitment and ensure resources for process improvement After the initial process capture (Step 4) To agree on key performance indicators and targets After selecting the areas for improvements (Step 5) To agree the changes to the process (What) When creating the improvement plans (Step 6) To agree to and own the improvement plan(s) (How) When following up on process performance (Step 7) To ensure continuous improvement as needed
  • OPERATIONAL EXCELLENCEC O N S U L T I N G11 11/3/2011 – v2.0A Method to AchieveOperational ExcellenceStep 1:DEFINE PROCESS3.DefineMeasures2.MapProcess1.DefineProcessBusiness Process Improvement Methodology
  • OPERATIONAL EXCELLENCEC O N S U L T I N G12 11/3/2011 – v2.0Business Process Improvement - ObjectivesBy the end of this module, you should be able to: define the purpose of the process define its start and end points (scope the process) identify the customers of the process identify the output(s) of the process identify the supplier(s) of the process identify the input(s) of the process
  • OPERATIONAL EXCELLENCEC O N S U L T I N G13 11/3/2011 – v2.0How to get started ?Think of coming to work in the morning: How long does it take you? Where would you say the starting point for coming to work is? At what point would you say you had „arrived‟?
  • OPERATIONAL EXCELLENCEC O N S U L T I N G14 11/3/2011 – v2.0Business Process Improvement – Step 1: Define Process State the name of the process State the purpose of the process Identify a process owner / management sponsor Scope your process by identifying your starting point and end point Identify the customer(s) for the process Identify the output of what you do in the process Define the requirements of the output Identify your supplier(s) Identify the input for the process Agree your requirements for the input
  • OPERATIONAL EXCELLENCEC O N S U L T I N G15 11/3/2011 – v2.0Step 1: Define Process - ExamplePROCESS SCOPE:Start Point: end-user reports defect or issueEnd Point: end user has a satisfactory productCUSTOMER: external customer (end-user)OUTPUT: repaired or replaced productOUTPUT REQUIREMENTS: product in fully working order immediatelySUPPLIER: customer - …INPUT: defective product or issue - …INPUT REQUIREMENTS: indication of defect or issue - …PURPOSE: To resolve customers defect or issuePROCESS NAME: customer issue resolution processMANAGEMENT SPONSOR: technical support manager – Tracy Miller
  • OPERATIONAL EXCELLENCEC O N S U L T I N G16 11/3/2011 – v2.0Group Work #1: Business Process Improvement - 1. StepThe Task: define the current processOn a Flip Chart share: your reasons for scope your view of the process purpose any learning points any concerns as to how to apply this stepof the method in practice?20 Minutes
  • OPERATIONAL EXCELLENCEC O N S U L T I N G17 11/3/2011 – v2.0Business Process Improvement - 1. Step Management Review Ensure that the identified process owner / management sponsoris the correct person Brief the owner / sponsor on the work you have completed inStep 1 Agree how the owner / sponsor wants to be involved in theproject work Agree on the next management review session (at a minimumafter Step 4)
  • OPERATIONAL EXCELLENCEC O N S U L T I N G18 11/3/2011 – v2.0Business Process Improvement - 1. Step Summary Defining the scope, as well as the input and outputrequirements of a process, is important to ensure a firmfoundation for process improvement This module has provided you with a standard template fordoing this The need to brief and involve the process owner /management sponsor at an early stage
  • OPERATIONAL EXCELLENCEC O N S U L T I N G19 11/3/2011 – v2.0Continuous Process Improvement Methodology3.DefineMeasures2.MapProcess1.DefineProcessA Method to AchieveOperational ExcellenceStep 2:MAP PROCESS
  • OPERATIONAL EXCELLENCEC O N S U L T I N G20 11/3/2011 – v2.0Business Process Improvement - Objectives To explain the reasons behind „process mapping‟ To show the link between a process map and a processscope To introduce the elements and symbols of a process map To provide guidelines how to map a process To give you experience in producing your own processmap
  • OPERATIONAL EXCELLENCEC O N S U L T I N G21 11/3/2011 – v2.0Why to map a Process ? Provides a common understanding of how the processoperates (activities & sequence) Provides a common understanding of roles andresponsibilities of each function Clarifies the interfaces between processes, technology andpeople Helps a team analyze in detail each step in a process Provides a means for discussing problem areas Helps to identify improvement opportunities in a way whichconsiders the overall process
  • OPERATIONAL EXCELLENCEC O N S U L T I N G22 11/3/2011 – v2.0Basic Elements of a Process MapMain Flow of Process: Activities: the steps completed in the process Decision: poses a question and signals either an alternative path oran inspection point Connector: Company internal or external connector to anotherprocess Object Flow: the inputs and outputs which flow from one activity toanother
  • OPERATIONAL EXCELLENCEC O N S U L T I N G23 11/3/2011 – v2.0Basic Process Mapping SymbolsActivityFlow DirectionDecisionProcess Flow Mapping SymbolsConnectorAStart / End
  • OPERATIONAL EXCELLENCEC O N S U L T I N G24 11/3/2011 – v2.0Additional Process Mapping SymbolsAdditional Elements :Delay Multi-Path DocumentDatabase InventoryOff-PageConnector
  • OPERATIONAL EXCELLENCEC O N S U L T I N G25 11/3/2011 – v2.0Process Mapping - Main Flow ExampleA Process Map usually flows from left to the right.Process Map ExampleDecisionActivityOff-PageConnectorAStartActivity EndWord
  • OPERATIONAL EXCELLENCEC O N S U L T I N G26 11/3/2011 – v2.0Process Role & Responsibilities Roles can be defined as name of the role (warehouse manager, purchasing, …) type of the role (A, R, C, I) The four types of roles are: A - Authority for the decision R - Responsible for action C - Collaborator in development I - Informed about progress in the process step
  • OPERATIONAL EXCELLENCEC O N S U L T I N G27 11/3/2011 – v2.0Process Swim Lane DiagramAngelica LA Market GRF Order Management Process – Part I “e-GRF and ABS Work Order Creation”ServiceCustomerCRM/TMServiceCenterAdministrationStockroomPage 1Cx requestsItemCx contactsRSR & RSRcreates GRFDraftCx contacts CRM& CRM createsGRFApproved e-GRFforwarded to SCAdministrationCx contactsServiceDepartmentRoute Supervisoror ServiceManager createse-GRFe-GRF sent toCx forApprovalCx returnsapproved e-GRFApproved e-GRFforwarded to SCAdministrationReview e-GRF andperform AccountMaintenance /Creation asneeded.Create ABSWork Orderwith e-GRFRequest Dateand WOCreation DateAdd ABS WorkOrder # to e-GRF,return updated e-GRF to Originatorand forward forinternalprocessing.Receive new ABSWork Ordere-GRF sent toCx forApproval
  • OPERATIONAL EXCELLENCEC O N S U L T I N G28 11/3/2011 – v2.0Preparation for the Process Mapping Become familiar with all existing and relevant process documentation Interview all associates who participate in the process Interview a sample of associates who perform the same activities ortasks to fully understand what is really occurring in the process Compare the way different people do the same job to determine whatthe best standard of operation should be Following completion check map with the people who provided input
  • OPERATIONAL EXCELLENCEC O N S U L T I N G29 11/3/2011 – v2.0Build the Process HierarchyTop Level (6 – 12 Activities)Next level1. First task2. Second task3. Third taskAn ActivityEach process canbe broken downinto another levelof detailThere is no limitto the numberof levels
  • OPERATIONAL EXCELLENCEC O N S U L T I N G30 11/3/2011 – v2.0Process Hierarchy - ExampleTraining1. Select interviewers2. Schedule Interviews3. Book roomsetc.An Activity :„Arrange First Interviews‟Each process canbe broken down intoanother level of detailAppraisalInductionRecruitA People Management Process
  • OPERATIONAL EXCELLENCEC O N S U L T I N G31 11/3/2011 – v2.0How to Build a Process Map - Guidelines Build the map that is representative of the current process you have definedin Step 1 Start with the top level of the process and drill-down At any level keep the number of steps to between 6 and 12 Go down to the level of detail that you know Remember you can always add more detail later All activities should be linked with an „output‟ (object flow) Think activities - not functions (Prepare …, Document …) It is a good idea to build the map up using a whiteboard, paper or post-it notes Use an “Opportunity Log” to record discoveries of improvement opportunities Use software (PowerPoint, Visio) to support your process mapping
  • OPERATIONAL EXCELLENCEC O N S U L T I N G32 11/3/2011 – v2.0Process Activity Template - SIPOCProcess: Production Line Implementation Responsibility: PlantActivity: Investment Proposal Creation Authority: EngineeringInputs Supplier Activities CollaboratorsOutputs DeliveryEquipment list GlobalEng.Creating investmentproposalInvestmentproposalGeneralName of the (sub)process,which this activity belongs to.Name of this activity.Inputs, which are neededto execute the activity.Suppliers forthe inputs.Detailedactivities.Outputs, which arerequired from asuccessful activity.Resources,whose supportand participationis needed tosuccessfullyexecute theactivity.Addressees forthe outputs.Resource, who isresponsible for theexecution of wholeactivity.Resource, who has authorityto accept the result.GlobalEng. Mgr.
  • OPERATIONAL EXCELLENCEC O N S U L T I N G33 11/3/2011 – v2.0Group Work #2: Business Process Improvement - 2. StepThe Task: Map your Process level 1 for entire process level 2 for one sub-process or process stepOn a Flip Chart share: your process map to the team by walkingthrough the process any learning points any concerns as to how to apply this step ofthe methodology in practice30 Minutes
  • OPERATIONAL EXCELLENCEC O N S U L T I N G34 11/3/2011 – v2.0Business Process Improvement - 2. Step Summary In order to identify how we are doing things so that we canimprove, it is important to visualize the steps Visualizing what we do makes it easier for people to learn andunderstand Process mapping provides us with the raw-material required forprocess management If we don‟t write down what we do it is impossible tosystematically analyze and improve We have provided guidelines on how to map a process
  • OPERATIONAL EXCELLENCEC O N S U L T I N G35 11/3/2011 – v2.0Let’s have a Break
  • OPERATIONAL EXCELLENCEC O N S U L T I N G36 11/3/2011 – v2.0Continuous Process Improvement Methodology3.DefineMeasures2.MapProcess1.DefineProcessA Method to AchieveOperational ExcellenceStep 3:DEFINE MEASURE
  • OPERATIONAL EXCELLENCEC O N S U L T I N G37 11/3/2011 – v2.0Business Process Improvement - Objectives To review measures generally and its role in processimprovement activities To demonstrate how to develop appropriate and meaningfulmeasures for a process To complete an exercise to define measures for your process
  • OPERATIONAL EXCELLENCEC O N S U L T I N G38 11/3/2011 – v2.0Why do you need Measures ?Measures are a basis for improvement: Measures allow you to set clear goals and monitor trends Measures show how effectively you use resources They provide the input data for identifying sources and analyzingroot causes of errors, allowing you to identify opportunities forimprovement Measures direct people‟s attention:......... what gets measured gets done.
  • OPERATIONAL EXCELLENCEC O N S U L T I N G39 11/3/2011 – v2.0The Four Dimensions of Process MeasuresProcess measures should relate to Time Cost Quality Customer Satisfaction... and ensure an effective balance between all four dimensions.
  • OPERATIONAL EXCELLENCEC O N S U L T I N G40 11/3/2011 – v2.0How Measures are Often Collected Easy = often provides poor information Nice = adjusted to provide good results Right = difficult to get and often shows poor performancee.g. Number of calls = easyCustomer opinion = difficult... and may not be favorable !!!
  • OPERATIONAL EXCELLENCEC O N S U L T I N G41 11/3/2011 – v2.0Functional vs. Cross-Functional MeasuresSales Production DCSales Production DCMeasures must reflect across-functional process viewRequirements should comefrom the customer and measuresshould be aligned to meet thoserequirementsOften measurements are basedon functional interests
  • OPERATIONAL EXCELLENCEC O N S U L T I N G42 11/3/2011 – v2.0Measures and Process Hierarchy Just as your process fits into a wider process at a higher level,your measures should fit into a higher level of measures also Measures of your process should be seen as part of the processhierarchy For example the costs of your travel impact upon the costs of your process impact upon the profitability of your business unit impact upon the financial excellence of company
  • OPERATIONAL EXCELLENCEC O N S U L T I N G43 11/3/2011 – v2.0Where to Place Measures Processes should be measured and controlled at potential„bottlenecks‟ in a process: i.e. where the process flow is slowed down the entire process will not operate any faster than the flow throughthis point Bottlenecks therefore have a significant impact on the overallprocess performance Measures should help predict total process performance
  • OPERATIONAL EXCELLENCEC O N S U L T I N G44 11/3/2011 – v2.0Where to Place Measures - An ExampleOrganizationCUSTOMERPRODUCT DELIVERY PROCESSProduct DeliveryORDER FULFILLMENT PROCESS“Customer satisfaction in termsof delivery on time”“Shipments planned vs. actual”“Incoming component quality”Material
  • OPERATIONAL EXCELLENCEC O N S U L T I N G45 11/3/2011 – v2.0What to consider when defining Measures1. Clarify your objective. Be sure that everyone involved is clear on the purpose ofthe measure.2. Create an operational definition. A good operational definition is very specific anddescriptive, and will produce the same results no matter who is doing themeasure.3. Design your data collection procedure. For each measure, document the specificmethods that must be used to collect data. The instructions should be so specificthat all individuals following them will use the same process and obtain the sameresults.4. Confirm the validity of your measure. Validity refers to the extent to which a metricactually measures what it was designed to measure and drives the desiredbehavior.5. Document your definition and process to ensure standardization. It is critical thatyour operational definition and data collection procedure be documented so thatthe measure is standardized for use throughout the organization.
  • OPERATIONAL EXCELLENCEC O N S U L T I N G46 11/3/2011 – v2.0Group Work #3: Business Process Improvement - 3. Step20 MinutesThe Task: indicate on you process map where youwould place your measuresOn Flip Chart share: the requirements of one of your measuresas defined by the template any learning points any concerns as to how to apply this stepof the method in practice
  • OPERATIONAL EXCELLENCEC O N S U L T I N G47 11/3/2011 – v2.0Business Process Improvement - 3. Step Summary Measures are essential to be able to improve Measures should indicate overall process performance - they must bebased on process not function The measures should relate to Time Cost Quality Customer Satisfaction... and ensure an effective balance between all four. Measures must be clearly defined, repeatable and valid Measures must be routinely used by people to improve the process
  • OPERATIONAL EXCELLENCEC O N S U L T I N G48 11/3/2011 – v2.03.DefineMeasures2.MapProcess1.DefineProcessContinuous Process Improvement MethodologyA Method to AchieveOperational ExcellenceStep 4:SET TARGETS
  • OPERATIONAL EXCELLENCEC O N S U L T I N G49 11/3/2011 – v2.0 To review the importance of having clear targets To define „targets‟ in relation to process improvement To discuss how to set appropriate targets for improvementBusiness Process Improvement - Objectives
  • OPERATIONAL EXCELLENCEC O N S U L T I N G50 11/3/2011 – v2.0Target Setting Definitions The actual performance of the measure = the current level ofperformance e.g. 75% of deliveries are made on time Performance standard* = what our level of performance should be e.g. 100% of deliveries are made on time Target* = how much should be achieved by when e.g. 90% of deliveries made on time by 31st December *These should be agreed with the process owner / managementsponsor based on customer requirements, business requirements,feasibility, internal or external benchmarking, … .
  • OPERATIONAL EXCELLENCEC O N S U L T I N G51 11/3/2011 – v2.0Why Set Targets? Without targets we are limited to „wishing and hoping‟ Without targets we cannot know if we have achieved anything imagine going on a diet without setting a target ... Targets are needed to stimulate change - they provide a focus forimprovement of the process Targets can themselves help people be motivated by visualizingthe end point: climbing Mount Everest the four minute mile flying to the moon – Video Link
  • OPERATIONAL EXCELLENCEC O N S U L T I N G52 11/3/2011 – v2.0Group Work #4: Business Process Improvement - 4. Step30 MinutesThe Task: identify targets for your measuresOn Flip Chart share: the actual, standard and target you haveset for the measure defined at stage 4 any learning points any concerns as to how to apply this stepof the method in practice
  • OPERATIONAL EXCELLENCEC O N S U L T I N G53 11/3/2011 – v2.0Business Process Improvement - 4. Step Management Review At this stage you should consult the process owner / managementsponsor to review progress Brief the owner / sponsor on the work you have completed up toStep 4 Obtain feedback from the sponsor on mapping and possibleperformance standards and targets for the measures developed inSteps 3 and 4 Agree next management review after Step 5
  • OPERATIONAL EXCELLENCEC O N S U L T I N G54 11/3/2011 – v2.0Business Process Improvement - 4. Step Summary Target setting is an integral part of management - targets drivethe improvement activities! Targets prevent us from wishing and hoping and help move ustowards action Targets can inspire others Targets should reflect customer priorities as well as businessplans
  • OPERATIONAL EXCELLENCEC O N S U L T I N G55 11/3/2011 – v2.03.DefineMeasures2.MapProcess1.DefineProcessContinuous Process Improvement MethodologyA Method to AchieveOperational ExcellenceStep 5:ANALYZE PROCESS
  • OPERATIONAL EXCELLENCEC O N S U L T I N G56 11/3/2011 – v2.0 Review why process analysis is essential before improving theprocess Understand areas for process analysis Use analysis to challenge the current way the processoperates Select most valuable areas for improvement Introduce some basic tools for process analysis andimprovement selectionBusiness Process Improvement - Objectives
  • OPERATIONAL EXCELLENCEC O N S U L T I N G57 11/3/2011 – v2.0Why Process Analysis To understand in detail how the process operates and where itmight be improved To understand the process enough so that the impact of changecan be predicted To understand the basic characteristics of the activities within theprocess, such as Why they are performed? What contribution they make to the result of the process?Process improvement is a key factor forbusiness success.
  • OPERATIONAL EXCELLENCEC O N S U L T I N G58 11/3/2011 – v2.0The Process ModelTo get results, should we focus our behavior on the Y or X‟s ?Y = f (X’s) X1, X2, ..., XN Input-Process Independent Cause Control Y Output Dependent Effect Monitor
  • OPERATIONAL EXCELLENCEC O N S U L T I N G59 11/3/2011 – v2.0Areas of Process AnalysisOUTPUTINPUTPeople IssuesTechnology IssuesPeople• Skills• Attitudes• ValuesOrganization• Roles• ResponsibilitiesTechnology• Supporting technology• Technological fitProcess Flow• Process map• Activity links• Process measureProcess IssuesACTUAL PROCESS
  • OPERATIONAL EXCELLENCEC O N S U L T I N G60 11/3/2011 – v2.0Process Issues - Part 1 Analyze process performance in terms of measures time - can the process be done quicker? cost - how well are the resources used? quality - how well are requirements met? customer satisfaction - how well are outputs satisfying thecustomer? Gain understanding of interfaces (inputs & outputs) to otherprocesses to assess the impact of improvement
  • OPERATIONAL EXCELLENCEC O N S U L T I N G61 11/3/2011 – v2.0Process Issues - Part 2 Identify those areas (activities) of the process that are the mostappropriate for improvement Minimize waiting times (bottlenecks) Minimize non-value-adding activities Improve value-adding activities Rework should not be built into a process - redoing work is non-value-adding Consider if all the activities need to be performed or could becombined Evaluate if some activities can be performed in parallel
  • OPERATIONAL EXCELLENCEC O N S U L T I N G62 11/3/2011 – v2.0People Issues Do people have adequate skills/competencies to perform the activities? What level of personnel development would be required to improveperformance? Does individual performance targets fit with the process performancetargets? e.g. does sales targets fit with customer satisfaction targets? Could fewer resources be used to perform the activities - what are theimplications? Roles - do people understand their contribution to the overall process? Are responsibilities clearly defined? Are all functions really need to perform the process effectively?
  • OPERATIONAL EXCELLENCEC O N S U L T I N G63 11/3/2011 – v2.0Technology Issues Does the technology support the process? Does the technology support only parts of the process? If different systems - can they talk to each other? Does the system provide the right measures? Is this the most appropriate technology for the process? Are systems duplicating data? Can IT solutions be reused for similar processes? Could activities be automated to improve process quality and/orefficiency?
  • OPERATIONAL EXCELLENCEC O N S U L T I N G64 11/3/2011 – v2.0Tools for Process Analysis Process Walkthrough Activity Assessment Review(see attached worksheet) Value-add vs. Non-value-addActivities Brainstorming Why-Why Analysis Cause-and-Effect or IshikawaDiagram Affinity Diagram Interrelationship Diagram Mistake Proofing & Poka-Yoke Double Team & Multi-Voting Impact – Effort Matrix Solution Selection Table …
  • OPERATIONAL EXCELLENCEC O N S U L T I N G65 11/3/2011 – v2.0Activity Assessment ReviewSee attached Activity Assessment Worksheet for details Bureaucracy Duplication Value-added Simplification Automation and Mechanization Process Cycle Time Error Proofing Upgrading Language Standardization Supplier Relations Big Picture Improvements
  • OPERATIONAL EXCELLENCEC O N S U L T I N G66 11/3/2011 – v2.0Process Walkthrough Hang your process maps on the wall Start from the start point of the process Go through each activity in turn to see if: the sequence of activities is logical activities can be reassigned to gain greater efficiency there are any duplications activities can be done earlier if at all all the roles are necessary systems are relevant for the process Challenge hard any reworkAngelica LA Market GRF Order Management Process – Part I “e-GRF and ABS Work Order Creation”ServiceCustomerCRM/TMServiceCenterAdministrationStockroomPage 1Cx requestsItemCx contactsRSR & RSRcreates GRFDraftCx contacts CRM& CRM createsGRFApproved e-GRFforwarded to SCAdministrationCx contactsServiceDepartmentRoute Supervisoror ServiceManager createse-GRFe-GRF sent toCx forApprovalCx returnsapproved e-GRFApproved e-GRFforwarded to SCAdministrationReview e-GRF andperform AccountMaintenance /Creation asneeded.Create ABSWork Orderwith e-GRFRequest Dateand WOCreation DateAdd ABS WorkOrder # to e-GRF,return updated e-GRF to Originatorand forward forinternalprocessing.Receive new ABSWork Ordere-GRF sent toCx forApproval
  • OPERATIONAL EXCELLENCEC O N S U L T I N G67 11/3/2011 – v2.0Value-Add Activities vs. Non-Value-Add Activities A value-add activity Contributes to satisfying customer requirements Is required to produce the overall output of a process Customer is ready to pay for the activity A non-value-add activity Does not contribute to satisfying customer requirements Not required to produce the overall output of a process,however, required by regulation, directive, or instruction
  • OPERATIONAL EXCELLENCEC O N S U L T I N G68 11/3/2011 – v2.0Why - Why Analysis Challenge the current way the process operates by asking thequestion “why” about each activity: Why perform the current activity? Why perform it in the current manner or order? Why does it need to be performed by this function? Why does it cost so much to perform the activity? Why does it take so long to perform the activity? Why can be not automate the activity? …
  • OPERATIONAL EXCELLENCEC O N S U L T I N G69 11/3/2011 – v2.0Why - Why Analysis – An Example
  • OPERATIONAL EXCELLENCEC O N S U L T I N G70 11/3/2011 – v2.0BrainstormingBrainstorming is used to generate a large number of ideas in a shortperiod of time. Step 1: Review the topic or problem to be discussed. Make sure theentire team understands the subject of the brainstorm. Clarify if you arelooking for potential root causes or possible solutions. Step 2: Allow a couple of minutes for everyone to think about the taskand write down some ideas. Step 3: Invite the team members to call out their ideas, randomly or inturns around the table. Make sure that the team builds upon each othersideas (1 + 1 = 3), but do not allow discussions or evaluations. Step 4: Record all ideas, e.g. on post-its, and stick them on a flip chartvisible to everyone. Step 5: Continue with Step 3 and 4 until several minutes silenceproduces no more.
  • OPERATIONAL EXCELLENCEC O N S U L T I N G71 11/3/2011 – v2.0Cause-and-Effect or Ishikawa DiagramCause-and-Effect or Ishikawa Diagram is a systematic way of looking at thecauses and effects of the problem and how they are related. It organizes largenumbers of ideas into pre-defined categories, e.g. 4Ms & 1 E or 4 Ps.4M’s = MENMETHODSMATERIALSMACHINES+ ENVIRONMENT4P’s = PEOPLEPRODUCTPRICEPROMOTIONEffect orOutcomeMachinesMaterials MethodsEnvironmentTrunkPrimary Causal FactorMain BranchMinor BranchSecond-LevelCausal FactorsMenProblem Statement(of identified GAP)
  • OPERATIONAL EXCELLENCEC O N S U L T I N G72 11/3/2011 – v2.0How to use the Cause-and-Effect Diagram Decide/define the Effect or Gap to be analyzed Draw a horizontal line (the backbone of the fish) and to the right endof this write the effect (= fish‟s head) Brainstorm for all possible causes Group the causes under main headings (min. 2, max. 6) Put the main headings at the end of the major “side” bones Add other causes to smaller “off shoots” from the major bones Check that the diagram is complete and logical
  • OPERATIONAL EXCELLENCEC O N S U L T I N G73 11/3/2011 – v2.0Why - Why DiagramThe Why–Why diagram can be used to uncover multiple causes of a problem,until fundamental and actionable root causes are revealed. In addition, thediagram helps the team to recognize the broad network of problem causes andthe relationship among these causes. It can indicate the best areas to addressfor short- and long-term solutions.`Problem Statement(of identified GAP)ApparentcauseRootcauseApparentcauseApparentcauseRootcauseWhy ? Why ? Why ?
  • OPERATIONAL EXCELLENCEC O N S U L T I N G74 11/3/2011 – v2.0How to use the Why - Why diagramStep 1: Write the problem/GAP statement down on paper and present it toother team members. Remember that it is the effect that needs to be analyzed- make sure it is clearly defined and understood.Step 2: Ask "Why ?" this problem does or could occur. List all these causes onnotes and place them in a column immediately to the right of the problemstatement.Step 3: Each of the cause statements now become a new problem statement.Again ask "Why ?". Sometimes the question needs to be phrased, "Why doesthis situation causes the problem?". Create another column of causestatements. Show the relationships to the first column with arrows.Step 4: Continue to turn each causes into a problem and ask "Why ?". Do notstop until you reach an answer that is fundamental and actionable (procedure,system, communication, training needs, and so forth).
  • OPERATIONAL EXCELLENCEC O N S U L T I N G75 11/3/2011 – v2.0Affinity DiagramAn Affinity Diagram organizes large numbers ofideas into their natural relationship and taps theteam‟s creativity and intuition.Step 1: Record the problem statement on aseparate Post-It note and place it on a flipchart.Step 2: Record each idea on a separate Post-Itnote and stick it to on a flip chart.Step 3: Look for ideas that seem to be relatedand place then side by side, until all ideas aregrouped. Very important is that no one talkduring this exercise.Step 4: Select a heading for each group andwrite it on a separate Post-It note. Ensure thatevery idea in a group aligns with the heading.Make final adjustment if necessary. You cantalk during this step.User demand ismoresophisticatedand diverseQuality isbecomingglobalizedNon-userfriendlyproducts areunacceptableNeed forprovidingcompleteserviceUnreliability inproducts is nottoleratedTQM-awarecustomers arebecomingcommonDemand forhigh- quality,low- cost goodsincreasingTechnology isno longer“awe-inspiring”Brand-awareness doesnot guaranteecustomer loyaltyMarketdifferent-tiation isbecoming lessof an issueIndividual custom-ization isbecomingmore of an issueNeed formeeting allrequirements issevereHappy to passon goodproduct/ servicestoriesInstant, intuitiveusabilitybecomingrequirementLocal servicemust be availableimmediatelyReplacementparts/ productexpected within24 hoursEasilycontacted bytelephone orfaxExtendedwarrantyexpectedQuestionsansweredquickly andcorrectlyCompletecustomereducation/in for-mation providedHappier to passon poorproduct/ servicestoriesLow-tolerancefor inadequateservice; likely toreturn prod
  • OPERATIONAL EXCELLENCEC O N S U L T I N G76 11/3/2011 – v2.0Interrelationships DiagramThe interrelationship diagram is usedwhen the relationships among the effectsand the causes, or the objectives and themethods, are complex and involved.Step 1: Place all ideas in a circle on a flipchart.Step 2: For each idea, ask “Does thisidea cause or influence any other idea?”.Draw arrows from each idea to the onesit causes or influences.Step 3: Analyze the diagram by countinghow many arrows in and out each ideahas. Note the number of incoming andoutgoing arrows for each idea “in/out”.Step 4: Note which ideas have primarilyoutgoing arrows. These are the basiccauses that need to be addressed toresolve the problem statement.3/35/02/15/10/51/32/20/53/1Rejection of theStatistical ThinkingMethodLack of motivationto changeLack of support forimplementationLack of consensusaround the rightmeasurement indicesData are noteasily accessibleMisunderstanding ofStatistical ThinkingParadigmLack ofStatistical ThinkingParadigmFear of technicaltools and methodsPeople havecompetingpriorities
  • OPERATIONAL EXCELLENCEC O N S U L T I N G77 11/3/2011 – v2.0Mistake-Proofing & Poka-YokeHuman Errors are usually inadvertentPoka (= inadvertent error) - Yoke (= avoid)devices help us avoid defects, even when inadvertent errors are made.Poka - Yoke help build Quality into Processes1. Build quality into processes.2. All inadvertent errors and defects can be eliminated.3. Stop doing it wrong and start doing it right.4. Don‟t think up excuses, think about how to do it right.5. A 60 % chance of success is good enough implement your idea now.6. Mistakes and defects can be reduced to zero when everyone works together toeliminate them.7. Ten heads are better than one.8. Seek out the true causes, using 5 W‟s and other Root Cause Analysis tools.
  • OPERATIONAL EXCELLENCEC O N S U L T I N G78 11/3/2011 – v2.0Mistake-Proofing - Five Mistake-Proofing MethodsVariation Control Use of special jigs, fixtures, or assembly tools that reduce the variation of how partsare assembled.Workplace Organization Error prevention by proper organization of the workplace or work station;implementation of a 5S Visual Workplace Program.Identification Errors are prevented by use of clearly written and easily available materials,procedures, and tools.Process Checks Performance of specific in-process checks to prevent errors.Poka - Yoke Devices Ensures errors cannot become defects by automatically detecting error conditions andimmediately rejecting the part or shutting down the process. Poka-Yoke devices workbest when a specific step must be taken to re-start the process once a defect hasbeen detected.
  • OPERATIONAL EXCELLENCEC O N S U L T I N G79 11/3/2011 – v2.0Mistake-Proofing – Poka-Yoke Examples
  • OPERATIONAL EXCELLENCEC O N S U L T I N G80 11/3/2011 – v2.0Solution Selection - Double Team Decision Making3 - 5 Suggestions 3 - 5 SuggestionsBoardThree Suggestions fromthe 1. Double TeamThree Suggestions fromthe 2. Double Team3 - 5 Suggestions 3 - 5 Suggestions1 2 34 5 6|||| || ||||| |||| | |||Selection of the2-3 most votedsolutions5 3 1
  • OPERATIONAL EXCELLENCEC O N S U L T I N G81 11/3/2011 – v2.0How to perform a Double Team Exercise1. Present the problem/gap Team Leader ~ 2 min2. Create ideas (3-5 ideas per person) All Individually ~ 10 min3. Discussion and ideas in double teams Double Teams ~ 15 min choose the 3 best ideas hang on the wall4. Present to other teams Double Teams ~ 5 min no discussion5. Place solutions into groups Team ~ 5 min6. Voting All Individually ~ 5 min choose the best solutions 5 votes per person max 2 votes per solution max 1 vote per own solution7. Counting the votes Team Leader ~ 5 min8. Choose the solution Team ~ 2 minDouble team (“2&2”) is a team working technique which ensures everybody‟scontribution in creating ideas.
  • OPERATIONAL EXCELLENCEC O N S U L T I N G82 11/3/2011 – v2.0IMPACTEFFORTHighMediumLowHighMediumLowThese opportunities areusually good candidatesfor the 1st PhaseThese opportunities are usuallygood candidates for the 2ndPhaseThese opportunities may requireadditional analysis to see if theyare worthwhileQuickHits–JustDoItImpact – Effort Matrix
  • OPERATIONAL EXCELLENCEC O N S U L T I N G83 11/3/2011 – v2.0Solution Selection TableSOLUTION # 1SOLUTION # 2SOLUTION # 3SOLUTION # 4Effectiveness Cost Time Resources avail.70 %90 %50 %65 %20 00052 00024 00018 0001451215YesPartlyNoYesResource Availability Yes = enough resources (own)Partly = not enough own resources, but moreavailable in the organizationNo = no resources available in the organizationTime in WeeksCosts in Local Currency
  • OPERATIONAL EXCELLENCEC O N S U L T I N G84 11/3/2011 – v2.0Group Work #5: Business Process Improvement - 5. Step30 MinutesThe Task: analyze your process using two or threespecific tools identify and select 2-3 major improvementopportunities for your processOn Flip Chart share: your improvement opportunities any learning points any concerns as to how to apply this step ofthe method in practice?
  • OPERATIONAL EXCELLENCEC O N S U L T I N G85 11/3/2011 – v2.0Business Process Improvement - 5. Step Management Review Introduce the results of the process analysis to the processowner / management sponsor Agree the most beneficial improvement options with the owner /sponsor Gain commitment to the improvements Agree next management review at Step 6
  • OPERATIONAL EXCELLENCEC O N S U L T I N G86 11/3/2011 – v2.0Business Process Improvement - 5. Step SummaryProcess Analysis allows us to challenge the current way the process operates gain the knowledge required to consider any improvement select the most beneficial improvement optionsThree areas of process analysis are process issues (activities) people issues technology issuesA large set of tools, techniques and software can be used to supportprocess analysis.
  • OPERATIONAL EXCELLENCEC O N S U L T I N G87 11/3/2011 – v2.0
  • OPERATIONAL EXCELLENCEC O N S U L T I N G88 11/3/2011 – v2.0Let’s have a Break
  • OPERATIONAL EXCELLENCEC O N S U L T I N G89 11/3/2011 – v2.0
  • OPERATIONAL EXCELLENCEC O N S U L T I N G90 11/3/2011 – v2.0Continuous Process Improvement Methodology3.DefineMeasures2.MapProcess1.DefineProcessA Method to AchieveOperational ExcellenceStep 6:IMPROVE PROCESS
  • OPERATIONAL EXCELLENCEC O N S U L T I N G91 11/3/2011 – v2.0The purpose of this module is to: Make you aware of the issues associated with change Provide you with a simple method for planning andimplementing the improvements Give you guidance on how to deal with problems Introduce the change sheet toolBusiness Process Improvement - Objectives
  • OPERATIONAL EXCELLENCEC O N S U L T I N G92 11/3/2011 – v2.0Change Management Improving processes is very likely to affect the way peoplework by changing the process flow eliminating non-value-adding activities People tend to resist change because of the fear of unclear future having to learn new things Therefore, it is important to plan for change.
  • OPERATIONAL EXCELLENCEC O N S U L T I N G93 11/3/2011 – v2.0Group Work #6: Change Management15 MinutesThe Task: consider a major change that hashappened to you how did this change feel to you?On Flip Chart share: the positive and the negative reactions tothe change
  • OPERATIONAL EXCELLENCEC O N S U L T I N G94 11/3/2011 – v2.0The Cycle of ChangeOutward lookingInward lookingFutureopportunitiesPastproblemsDenialResistance ExplorationCommitmentPeople in the denialstage are trying toavoid dealing with thefear and uncertainty ofprospective change.They are hoping theywont have to adapt.When people can nolonger deny thatsomething is or hashappened, they tend tomove into a state ofanger, accompanied bycovert and/or overresistance.This is the stage where peoplehave stopped denying, andwhile they may be somewhatangry, the anger has moved outof the spotlight. They have abetter understanding of themeaning of the change and aremore willing to explore further,and to accept the change.This is the payoff stage,where people commit tothe change, and arewilling to work towardsmaking it succeed. Theyknow it is a reality, and atthis point people haveadapted sufficiently tomake it work.
  • OPERATIONAL EXCELLENCEC O N S U L T I N G95 11/3/2011 – v2.0KEEP IN MIND THAT …The only person who likes change is a WET BABY.
  • OPERATIONAL EXCELLENCEC O N S U L T I N G96 11/3/2011 – v2.0The Change Sheet•PLAN•DO•CHECK•ACT•REVIEWA tool to help teams plan and implement the selected improvements
  • OPERATIONAL EXCELLENCEC O N S U L T I N G97 11/3/2011 – v2.0Areas of Planning Remember that every improvement has potential impact inthree main areas: the process itself the people related to the process and the improvement The technology which supports the process Plan for the impact in these areas and create implementationplans for these too.
  • OPERATIONAL EXCELLENCEC O N S U L T I N G98 11/3/2011 – v2.0Planning for ImprovementSection 1 THE REQUIRED CHANGE Single change objective Why the change? Expected benefits Key policiesSection 2 THE FUTURE SCENE „Look and feel‟ when successfully implemented1 - 4
  • OPERATIONAL EXCELLENCEC O N S U L T I N G99 11/3/2011 – v2.0Planning for ImprovementSection 3 PEOPLE AFFECTED Who are they? What‟s in it for them? Expected reaction to the changeSection 4 ENABLING THE CHANGE Who is in the change team Their roles Their responsibilities Impact on other systems and processes Other resources required1 - 4
  • OPERATIONAL EXCELLENCEC O N S U L T I N G100 11/3/2011 – v2.0PlanSection 5 PLANNING THE CHANGETHE PLAN Tasks and deliverables Responsibilities Outline timescalesRISKS related to … Time Cost Quality Process People5
  • OPERATIONAL EXCELLENCEC O N S U L T I N G101 11/3/2011 – v2.0DoSection 6 AWARENESS AND TESTINGImplementing the process improvements forpilot and testing Gain user commitment Determine the measures of success Pilot and test6
  • OPERATIONAL EXCELLENCEC O N S U L T I N G102 11/3/2011 – v2.0CheckSection 7 THE RESULTS OF THE CHANGE Did the awareness and testing come out asplanned? Check the results against measures of success Revisit previous sections in the change sheet New actions?7
  • OPERATIONAL EXCELLENCEC O N S U L T I N G103 11/3/2011 – v2.0ActSection 8 MODIFY THE PLAN AND COMPLETETHE CHANGE How are you measuring and reviewing progressin the implementation of improvements? How do you deal with problems and changes? How are you training people? Any new actions?8
  • OPERATIONAL EXCELLENCEC O N S U L T I N G104 11/3/2011 – v2.0ReviewSection 9 THE IMPACT OF THE CHANGE Was the implementation of improvementssuccessful and effective? Were the benefits gained? What lessons did you learn? What recommendations would you make forfuture improvement projects?9
  • OPERATIONAL EXCELLENCEC O N S U L T I N G105 11/3/2011 – v2.0Dealing with ProblemsThe Ten Point Recovery Plan (1/2) Require Compliance Requiring from people what they agreed to do and pointing out the impact theirlack of delivery will have on others Recover Re-examine budgets and schedules to see if savings can be made later in theproject Narrow Scope Eliminate non-essential elements (the „wants‟?) Deploy More Resources Increase the number of people/machines etc.. Need to balance the increased costagainst the importance of the deadline Accept Substitution If something is not available or too expensive. Need to balance against otherproject requirements
  • OPERATIONAL EXCELLENCEC O N S U L T I N G106 11/3/2011 – v2.0Dealing with ProblemsThe Ten Point Recovery Plan (2/2) Seek Alternative Sources When a supplier cannot deliver within budget, schedule and qualityspecifications Accept Partial Delivery If the full amount can be delivered at a later stage Offer Incentives For meeting time, cost and quality requirements if the going gets tough Escalate Put a case to senior management if the blockages become too severe Renegotiate/change the project requirements Discuss with the client the possibility of increasing the budget, extending thedeadline or relaxing some other requirement
  • OPERATIONAL EXCELLENCEC O N S U L T I N G107 11/3/2011 – v2.0Stakeholder Analysis MatrixHow Do You Make a Stakeholder AnalysisMatrix?Step 1: Begin by making a list of anyone whomhas interest or influence over the activity, projector initiative.Step 2: Draw a box divided into four equalquadrants. Make sure you create this box largeenough to fit in the various stakeholders when itis the appropriate time. Divide each quadrantinto fourths again. You should now have sixteenquadrants.Step 3: Label down the left side starting at the top with “Significant Importance,” “Some Importance,” “LittleImportance,” “No Importance.”Step 4: Label across the top starting at the left with “Significant influence,” “Some influence,” “little influence,”“No influence.”Step 5: Begin to organize your stakeholders according to importance and influence.Step 6: When you are done with step 5, your matrix will be a graphic display of who holds the mostimportance and influence (the group in the upper left-hand corner) and who holds the least amount ofinfluence and importance (the group in the lower right-hand corner). Those in the high importance/influencecategory will be the first ones to consult since they carry a heavy weight in the direction of the project.
  • OPERATIONAL EXCELLENCEC O N S U L T I N G108 11/3/2011 – v2.0Force Field Analysis Step 1: Define your current situation. Step 2: Define where you want to be, what you want to achieve and/orwhat the situation would be like if there was not the problem you are tryingto solve. Step 3: Identify the forces -[either helping - (positive) or hindering -(negative)] you see on your way from the current situation to the futurestate. Record only existing forces, not planned Step 4: Identify the relative strength of the helping and the hindering forces. Step 5: Identify your action areas to help you use the forces around you.
  • OPERATIONAL EXCELLENCEC O N S U L T I N G109 11/3/2011 – v2.0Example to Force Field AnalysisCurrent SituationProduction CultureFuture SituationCustomer CultureHelping Forces Hindering ForcesCompetitors actionsCustomer DemandsMarketing skillsAdvertising AgenciesHistory of the companyManagement IncentivesBudget process
  • OPERATIONAL EXCELLENCEC O N S U L T I N G110 11/3/2011 – v2.0Action Planning Divide solution(s) into actions. Assign responsibilities. Create a schedule.Measure: TimeQualityCostTime (25% improvement)Quality (50% reductionin expenses of qualityfailures)Cost (20%productivityimprovement)WHO?WHEN?WHAT?
  • OPERATIONAL EXCELLENCEC O N S U L T I N G111 11/3/2011 – v2.0Team Identification:Team Members:Team Location:Present Situation: Desired State:Challenges/Problems:Priorities: Problem Statement:Objectives: Strategy/Project Action Items/TargetsProcess Owner:Date Updated:Next Review:OwnerAction Plan Template
  • OPERATIONAL EXCELLENCEC O N S U L T I N G112 11/3/2011 – v2.0Improvement Objective:Team Identification:Team Members:Process Owner:Date Updated:Next Review:ActionItemsItemOwnerSchedule and Milestones (Plan vs. Actual) PerformanceTarget ActualMMYR MMYR MMYR MMYR MMYR MMYR MMYR MMYR MMYR MMYR MMYR MMYRComments or observations:Implementation Plan Template
  • OPERATIONAL EXCELLENCEC O N S U L T I N G113 11/3/2011 – v2.0Group Work #7: Business Process Improvement - 6. Step30 MinutesThe Task: complete the first two sections the required change the future scenein the change sheet to plan for your processimprovementOn Flip Chart share: any learning points any concerns as to how to apply this step of themethod in practice?
  • OPERATIONAL EXCELLENCEC O N S U L T I N G114 11/3/2011 – v2.0Business Process Improvement - 6. Step Management Review Owner/sponsor commitment is particularly important at thisphase, since improving a process is likely to change the way the process operates have on impact on people‟s work have an impact on other processes Make sure that the process owner/management sponsor fullyagrees to the improvement plans
  • OPERATIONAL EXCELLENCEC O N S U L T I N G115 11/3/2011 – v2.0Business Process Improvement - 6. Step SummaryImproving a process has potential impact on three areas: the process itself the people working with the process the technology supporting the processTherefore, it is important to be aware of the issues associated with change plan for improvements agree improvements with the process owner / management sponsorA simple method - the change sheet tool - helps you to plan andimplement the improvements
  • OPERATIONAL EXCELLENCEC O N S U L T I N G116 11/3/2011 – v2.03.DefineMeasures2.MapProcess1.DefineProcessContinuous Process Improvement MethodologyA Method to AchieveOperational ExcellenceStep 7:MANAGE PROCESS
  • OPERATIONAL EXCELLENCEC O N S U L T I N G117 11/3/2011 – v2.0The purpose of this module is to: To discuss how to follow up process performance To discuss how to relate BPI 7 business processimprovement to routine management To discuss how to maintain the benefits and ensurecontinuous improvement by repeating the BPI 7 businessprocess improvement processBusiness Process Improvement - Objectives
  • OPERATIONAL EXCELLENCEC O N S U L T I N G118 11/3/2011 – v2.0BPI 7 and Continuous Improvement BPI 7 is a continuous process improvement methodology BPI 7 does not stop after completing the first round of the BPI 7 cycle To ensure that BPI 7 continues to be an effective improvementtool, BPI 7 teams should: identify the points of conflict with other teams and resolve them identify which management teams should support the review ofprocess performance identify any other barriers to ongoing improvement
  • OPERATIONAL EXCELLENCEC O N S U L T I N G119 11/3/2011 – v2.0BPI 7 and Routine Management The BPI 7 process should be integrated into routinemanagement in order to ensure follow up of process performance allow the process owner to fulfill his/her responsibilities in asystematic way To manage process performance it needs to be clearly defined what is to be managed by whom at what frequency e.g. daily, weekly, monthly how performance data should be reported
  • OPERATIONAL EXCELLENCEC O N S U L T I N G120 11/3/2011 – v2.0Checklist for Managing BPI 7Ensure you have: Process Name Process Owner / Management Sponsor Process Performance MeasuresManaged by: „XYZ Team - whose members are Who meet every ..... And use the following performance data.....‟
  • OPERATIONAL EXCELLENCEC O N S U L T I N G121 11/3/2011 – v2.0The Management TeamConsider involving the following people: A customer(s) A supplier(s) A representative of other critical interface processes Somebody not involved in the process Process owner / management sponsor A facilitator (if not the process owner) Budget holder (may be the process owner) Information Systems expert Human Resources expert
  • OPERATIONAL EXCELLENCEC O N S U L T I N G122 11/3/2011 – v2.0Considerations at Management Team Meetings What issues are there that are effecting performance of theprocess? Is the process meeting its Time, Cost, Quality and CustomerSatisfaction targets? What action do we need to make sure that the process meetsits targets? Do we need to revise our targets? How are our improvement plans progressing? What support do we need to provide to process teams?
  • OPERATIONAL EXCELLENCEC O N S U L T I N G123 11/3/2011 – v2.0Repeating BPI 7 It is anticipated that the routine improvement - steps 4 to 7 - will go onthroughout the year BPI 7 will be repeated in full when process performance circumstancesrequire: for example, where there is a substantial change in the process where customer requirements change where supplier performance changes The team managing the process, led by the process owner/ managementsponsor, is responsible for taking appropriate action using BPI 7DefineProcessMapProcessDefineMeasuresSetTargetsAnalyzeProcessImproveProcessManageProcessStep 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7
  • OPERATIONAL EXCELLENCEC O N S U L T I N G124 11/3/2011 – v2.0Group Work #8: Business Process Improvement - 7. Step20 MinutesThe Task: complete the Manage Process worksheetOn Flip Chart share: any learning points any concerns as to how to apply this step ofthe method in practice?
  • OPERATIONAL EXCELLENCEC O N S U L T I N G125 11/3/2011 – v2.0Business Process Improvement - 7. Step SummaryBPI 7 is a continuous process improvement methodology it does not stop after completing the first round of the BPI 7 loop it needs to be repeated it should be integrated into routine managementThe management team defines who, when and with what data tofollow up process improvement - other information comes from earliersteps
  • OPERATIONAL EXCELLENCEC O N S U L T I N G126 11/3/2011 – v2.0REMEMBER …The FIRST STEP is always the HARDEST.
  • OPERATIONAL EXCELLENCEC O N S U L T I N G127 11/3/2011 – v2.0Business Process ImprovementThe End …“perfection is not attainable, but if wechase perfection we can catchexcellence.” - VinceLombardi