Had a heaven sent opportunity to carry out a half a day workshop on business process management. Conducting lean six sigma workshops to allow organizations including not for profits to harness the true potential of lean six sigma - transactional cost reductions and waste removal. To identify and mitigate risk in projects to achieve efficiency and productivity gains Was also a panellist along with Deloittes and the kaizen Institute on a lunchtime webinar on process re-engineering

1. Business Process Management
Measurement & Metrics
Brian D’Rosario
Lean Six Sigma Black Belt – Toll Global Information
Systems
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2. 13/11/2014 2

3. Business Process Management
Measurement & Metrics
• How to identify and deliver value in the eyes of the
customer
• Many ways that this can be done some of them are as
follows
 Focus groups
 Questionnaires
 Kano diagram
 External workshops
 Internal workshops
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4. Business Process Management
Measurement & Metrics
• How do we communicate the benefits of business
process management to the senior leadership team in a
tangible manner so we can obtain their buy in
 Tangible – needs to be metric related
 Process selection – needs to be multi departmental
 Data analysis – Current environment data sets
 Process re-engineering end to end
 Process times
 Cycle times
 Takt times
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5. Business Process Management
Measurement & Metrics
• Why do we need to understand value chains – internal /
external and enterprise?
 They provide valuable insights as to how an
organization delivers a product or service to its
customer base
 Understanding of inter departmental inter actions
 Identification of any redundant processes
 Core process activity analysis
 When done at an enterprise level with many
business units has amazing potential for waste
detection and elimination 13/11/2014 5

6. Business Process Management
Measurement & Metrics
• Waste in processes - why is it important to identify?
 Historically organizations have sought to improve
processes by focusing on the value adding
component
 Current trends show that the non value added
components present the greatest waste elimination
opportunities
 Waste elimination must address the end to end
process including any AP or AR activities
 Waste elimination must take process and cycle times
into consideration 13/11/2014 6

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8. Commonwealth Bank of Australia
PEX Conference
https://www.youtube.com/watch?v=csvVgzyML6A
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9. 13/11/2014 9

10. Specify value
in the eyes of
the customer
5 Core
Principles
of Lean
Identify
Value Stream
and
Eliminate
Waste
Make Value
Flow at the
Pull of the
Customer
Continuously
Improve
Involve and
Empower
Employees
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11. 13/11/2014 11

12. Business Process Management
Measurement & Metrics
• How to carry out a BPM cost benefit analysis with
minimum impact to an organization?
 Select a cross functional process to re-engineer
 Research and collect last review date and process
component changes
 Review must be end to end including any AP & AR
activities
 Identify value chain
 Collect process / cycle times and wait times
 Identify takt times – customer demand
 Relate process back to mission vision and values 13/11/2014 12

13. Create PO header PT - 5mins
PT - Process time for each process step
CT - Cycle time rolled up for process
times and wait times
Select inventory items
spare parts for trucks
PT - 10 mins
CT - 15 mins
(No bill of materials)
Automated PO approval
and release
PT - 15 mins
CT - 30 mins
Create PO
PT - 5 mins
Use bill of materials
PT - 2 mins
CT - 7 mins
Automated PO
approval and release
PT - 7 mins
CT - 14 mins
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14. Business Process Management
Measurement & Metrics
• Once a process is nominated:
 Allocate resources
 Nominate timeline – 12 weeks maximum
 Carry out the Gemba activity
 Carry out quality for deployment and a value chain
 Identify change management requirements
 Create re-engineered process flow with timelines
 Carry out failure mode effects analysis
 Document metrics pre and post
 Document process capability pre and post
 Carry out post go live Kaizen activities 13/11/2014 14

15. Critical
to
Quality
Voice of the Customer
Voice of the
Process / Data -
Gemba View
Voice of the Employee -
Gemba View
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16. Business Process Management
Measurement & Metrics
• What is Gemba – Japanese term “the real place where
value is added?
• How should you carry out this activity?
 Follow the process as it takes place and document it
 Draw a cross functional process map along with
process / cycle and wait times – identify the different
wait times if the wait activity is different.
 Collect some data on the process is the data
revealing the same process gaps as the cross
functional process map
 Carry out a quality for deployment work activity 13/11/2014 16

17. Support
Activities
Finance
HR Management
Technology Development
Procurement
OH&S Risk Manager
Resources
Value Chain Diagram
Operations /
Administration Operations Sales Commercial
Primary Activities
Source: Michael Porter Competitive Advantage of Organizations
MARGIN
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18. Quality for Deployment
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19. Cause & Effect Diagram
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20. Cross Functional Process Flow with Timelines
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21. Process Value Adding and
Non Value Adding Activities
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22. Post Go Live Analysis
At a post go live review meeting the project manager
while updating the stakeholders described one of the
projects most prominent post go live issues as having
created new activities or process steps that added an
additional hour to the end to end cycle time.
Individually write down five possibilities that could
have caused such an impact and then collectively as a
group of five discuss and document the top five
possible causes among your group and nominate a
facilitator who will present the findings.
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23. Business Process Management
Measurement & Metrics
• Change Management
• Develop Change management Plans
• Develop communications plans
• Develop sponsor roadmaps
• Develop coaching plans
• Develop training plans
• Develop a resistance management plan
• Re-Enforce Change
• Collect Feedback
• Diagnose gaps and manage resistance
• Implement corrective actions and celebrate successes 13/11/2014 23

24. 13/11/2014 24

25. M&M Process Capability Game
M&M’s – Activity
Please form teams of 5 people. (Based on the table
seating arrangement)
1. Analyse your m&m’s.
2. Agree on what an m&m unit is.
3. Agree on how you would classify an m&m defect.
4. How many opportunities are there for a defect in a unit.
5. Analyse your smarties and determine number of
defective units and number of defects.
6. Calculate your DPMO (Defects per million
opportunities)
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26. Process Capability Measurements
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27. Process Capability Measurements
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28. Create a to be process flow
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29. Process Metrics
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30. Balanced Scorecards
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31. Post Go Live Kaizen Activities
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32. Post Go Live Kaizen Activities
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33. Process Kaizen Case Study for BPM Business Case
• Present the entire activity using the cross functional
team
• Focus on the process metrics pre and post go live
process capability along with business process
knowledge management
• Document the entire process methodology and timelines
• Use the to be end to end process to document the ROI
• Document all the additional activities, timelines and
costs
• Use all of the above to complete business case
document
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34. Comparison of Six Sigma / Lean and
Theory of Constraints
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35. Hoshin Kanri
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36. Additional Activities to be Carried out once
BPM Business Case is Approved
• Resource rich rooms
• Change Management
• American Productivity Quality Centre Process Hierarchy
• Supply Chain Operations Reference
• COBIT – 5
• ISO – 9002
• Hoshin Kanri and Balanced Scorecards
• Master Data Modelling
• Master Data Enterprise Utilisation
• RFID – Process Efficiency Gains
• Standard Process and work instructions – Web portal
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37. Orbus Software - iServer
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38. Process Modeller
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39. Process Modeller
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40. Process Modeller – Accounts Payable
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41. Process Modeller – Accounts Payable
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42. Process Modeller – Accounts Payable
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43. Marshill Solutions
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