APQC PCF Program

Quality Consulting
Workshop on APQC PCF
Warm Welcome
by Adaptive Processes
An ISO 9001:2008 Certified Company
A NASSCOM Member Company
www.AdaptiveProcesses.com

Quality Consulting
Introductions
• Name
• Current role
• Prior experience with process
mapping / management
• Prior experience with APQC
PCF
• Expectations from the course
4
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Now let’s dive into the subject….

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Why are we doing all this?
• Get a better understanding of your
client’s processes.
• Assist client to describe processes
in consistent, continuous process
when looking at how they provide
services to meet their clients’
expectations.
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History of APQC
13

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What is PCF?
• Although the structure of
the PCF is well suited to a
manufacturing
organization, it can easily
be adopted and adapted to
suit any organization.
• The cross-industry nature of
the PCF is one of its most
valuable features.
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12 High Level Processes
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Understanding PCF Categories
Time allotted : 60 minutes
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Develop and Manage Products and
Services
1. Manage product and service portfolio
– Define product/service development
requirements
– Perform discovery research
– Confirm alignment of product/service
concepts with business strategy
– Manage product and service life cycle
– Manage product and service master data
2. Develop products and services
– Design, build, and evaluate products and
services
– Test market for new or revised products
and services
– Prepare for production
25

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Market and Sell Products and Services
– Develop and manage promotional
activities
– Track customer management
measures
– Develop and manage packaging
strategy
5. Develop and manage sales
plans
– Generate leads
– Manage customers and accounts
– Manage customer sales
– Manage sales orders
– Manage sales force
– Manage sales partners and
alliances
28

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Deliver Products and Services
3. Produce/Manufacture/Deliver
product
– Schedule production
– Produce product
– Schedule and perform maintenance
– Perform quality testing
– Maintain production records and
manage lot traceability
4. Deliver service to customer
– Confirm specific service requirements
for individual customer
– Identify and schedule resources to
meet service requirements
– Provide service to specific customers
– Ensure quality of service
31

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Manage Customer Service
1. Measure and evaluate customer
service operations
– Measure customer satisfaction with
customer requests/inquiries handling
customer-complaint handling and
resolution
products and services
34

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Develop and Manage Human Capital
5. Manage employee information
– Manage reporting processes
– Manage employee inquiry process
– Manage and maintain employee data
– Manage human resource information
systems (HRIS)
– Develop and manage employee metrics
– Develop and manage time and
attendance
– Manage employee communication
37

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Manage Information Technology
3. Manage business resiliency and risk
– Develop and manage business
resiliency
– Develop and manage regulatory
compliance
– Perform integrated risk management
– Develop and implement security,
privacy, and data protection controls
4. Manage business resiliency and risk
– Develop and implement security,
privacy, and data protection controls
– Define the enterprise information
architecture
– Manage information resources
– Perform enterprise data and content
management
40

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Manage Financial Resources
1. Perform planning and
management accounting
– Perform
planning/budgeting/forecasting
– Perform cost accounting and control
– Perform cost management
– Evaluate and manage financial
performance
2. Perform revenue accounting
– Process customer credit
– Invoice customer
– Process accounts receivable (AR)
– Manage and process collections
– Manage and process
adjustments/deductions
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Manage Financial Resources
8. Manage internal controls
– Establish internal controls, policies, and
procedures
– Operate controls and monitor compliance
with internal controls policies and procedures
– Report on internal controls compliance
9. Manage taxes
– Develop tax strategy and plan
– Process taxes
10.Manage international
funds/consolidation
– Monitor international rates
– Manage transactions
– Monitor currency exposure/hedge currency
– Report results
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Manage Environmental Health and
Safety (EHS)
1. Determine environmental health
and safety impacts
– Evaluate environmental impact of
products, services, and operations
– Conduct health and safety and
environmental audits
2. Develop and execute environmental
health and safety program
– Identify regulatory and stakeholder
requirements
– Assess future risks and opportunities
– Create EHS policy
– Record and manage EHS events
49

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Manage External Relationships
1. Build investor relationships
– Plan, build, and manage lender relations
– Plan, build, and manage analyst relations
– Communicate with shareholders
2. Manage government and industry
relationships
– Manage government relations
– Manage relations with quasi-government
bodies
– Manage relations with trade or industry
groups
– Manage lobby activities
52

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Manage Knowledge, Improvement,
and Change
1. Create and manage organizational
performance strategy
― Create enterprise measurement
systems model
― Measure process productivity
― Measure cost effectiveness
― Measure staff efficiency
― Measure cycle time
2. Benchmark performance
― Conduct performance assessments
― Develop benchmarking capabilities
― Conduct process benchmarking
― Conduct competitive benchmarking
― Conduct gap analysis to understand
need for change and degree
― Establish need for change
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Mapping client processes to PCF
Time allotted: 60 minutes
58

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Process gap analysis template
61
Process gap
analysis template

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Defining process
• “A series of actions or operations
which lead to an end” (Webster’s
Dictionary)
• Example: What process is used to
drive a car?
– Open door, sit, close door, foot to
brake, seatbelt on, insert key,
disengage parking brake …
• Are there any alternative steps
or methods?
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Business process description
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7070

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Other areas to analyze with maps
• Find repetitive operations
• Identify potential
bottlenecks
• Describe directions and
distances of flows (people,
material and information)
• Look at resource use and
minimums
• Create better value & reduce
waste
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Typical Mapping Symbols
7676
Operation (task or work activity)
Inspection
Decision point (typically requires a “yes” or “no”)
Document or order created
Delay
Storage
Transportation: Move Materials, customers or employees
or

Quality Consulting
How Much Detail?
• The more detail you have, the more
information you have about how a
process actually works.
• Lots of detail is necessary when it is
absolutely critical the process be
done exactly the same way each
time.
• Weigh costs and benefits – detail
takes time.
• Don’t get bogged down … or your
users!
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Process mapping
• A business process model is a
diagram showing the steps that a
business carries out in order to
respond to business event or trigger
and achieve a specific goal or
objective.
• Functional view of business.
• Process view of business.
• Processes provide the organization
strategic advantage if executed in
an effective and efficient manner.
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Developing to-be process maps
• Understand challenges of
current process
• Use process improvement tools
and techniques to optimize the
process
• Develop to be process map
which can form the basis for
process automation
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Demo of BizAgi Process modeler
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Process improvement techniques
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Non-value Add
• Work that does not add value in the
eyes of the customer and they
would not want to pay for it (nor is
it required for BNVA)
– Rework, multiple signatures & copies,
counting, handling, inspecting, set-up,
downtime, transporting, moving,
delaying, storage.
9494

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Process Chart
(supplements & helps support Map)
Measure
A
Measure
B
Activity
(O, I, S, D,
TP, TI)
Value
Code
(V/B/N)
Description of activity
9797
O= operations; I= inspections; S= storage; D=delay;
TP= transportation of people
TI= transportation of inventory or materials

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Other Measures
Measure Description
Safety Accidents, mistakes, breakdowns
Courtesy Politeness, respect, consideration, friendliness
Accessibility Ease of access and ease of contact
Understanding Finding out the needs, expectations, and
satisfaction level of the customers
Responsiveness Willingness to help and provide prompt
service
Innovation Number of Radical ,Incremental, etc. new
products introduced
Local content Materials or labor content in process step
produced in regions of importance.
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Mapping Exercise can lead to
Potential Changes:
• Raw materials
• Product (output) design
• Job design
• Processing steps used
• Management control information
• Equipment or tools
• Suppliers
• i.e. Anything but customers may be
changed unless they do not add
value!!
103

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Process Management
Teams who use this method:
• Understand “who” and “what” and
“why”
• Document
• Measure
• Implement and improve
106

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Common Types of Flowcharts
• Basic / Detailed (“Value Stream”)
• Swim Lane (“Deployment”)
• Spaghetti (“Transportation / Work
Flow”)
109

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Value-Add and Non Value-Add
Process Step
• Value Add (VA)
• Business Non-value-add (BNVA)
• Non-value-add (NVA)
112112

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2. Process Analysis (via Mapping)
• Detail steps of the process. For
each step:
– Who are the customers?
– What are the inputs?
– What is the transformation?
– What are the outputs?
– Identify the trouble spots
• Is a particular step creating the
overall low performance
measurement for the process?
• Is a step “adding value” ? If not
eliminate or improve, benchmark
against “best practices”.
– Find supporting evidence, brainstorm
and developing improvement plan.
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Value-stream Map symbols
118
Identifies improvement opportunity
Shipment
External Source (suppliers & Customers)
Process
Inputs
Outputs
Process Resource Descriptor

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121
Example: Water used versus needed

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124
5. Visualize an improved “Future State” for the
opportunity areas (brainstorm about how to do
things differently)

1
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