This document outlines a framework for business process improvement projects that includes selecting projects, defining the current process baseline, performing a value-add analysis, improving the process, implementing changes, and following up on results. The goals are to select projects aligned with strategic objectives, identify improvement opportunities, define an efficient target process, implement changes to realize benefits, and communicate outcomes.

1. Business Process Improvement (BPI)
Services Framework
July 20th, 2010
© 2010 TIMPCO Project Management Inc. All rights reserved. Proprietary and confidential.

2. Project Selection
Rapid
assessment Screen initial
Prioritize list
and select
Scope and
define
Outcomes
and list
validation
projects projects
― Projects selected are aligned with
strategic company objectives i.e.
1. Rapid assessment and validation
Identifies what is important to the
― Establish process baseline, develop hypotheses organization
about likeliest rich targets for improvement, and
validate with data ― Selection and prioritization of projects
based on the value of their benefit-
2. Screen initial list effort
― Score each project on benefit/effort and create
matrix ― Problems, goals and metrics identified
are well defined and agreed upon
― Select highest priority opportunities for further
analysis ― Clearly defined scope
3. Prioritize list and select projects ― Positions and aims the improvement
― Assign selected opportunities to sponsors project for success
4. Scope and define projects
― Draft project charters
© 2010 TIMPCO Project Management Inc. All rights reserved. Proprietary and confidential. Slide 2

3. Evaluate the Process
Perform Outcomes
Define the ―Define the baseline
value-add
baseline ▪ Answers to the questions:
analysis
1. Is there really a problem?
2. What is the real problem?
Define the baseline ▪ Status of current process performance
― Provides a visual view of the as-is ▪ A complete picture of process details
process i.e. the value stream maps with flow
and data
― Identifies what’s really currently
happening in the process ―Perform value-add analysis
― Establishes the mark against which ▪ Identification of critical value drivers
improvement will be measured their impact on the business and the
sources of inefficiency and
Perform value-add analysis
ineffectiveness
― Determines the value of each step based
on whether it is Customer value-add,
Business value-add or Non-value-add
© 2010 TIMPCO Project Management Inc. All rights reserved. Proprietary and confidential. Slide 3

4. Define the Baseline
Steps Outcomes
1. SIPOC (Supplier, Input, Process, Output, ― Answer to the question: “Is there a
Customer) problem?”
― Leverage available existing process models and ― Discovery of the real problem
SIPOC in repository
― Create SIPOC, if necessary ― Identification current process
performance
― Establishment of mark against which
2. Utilize existing KPI and other reporting
improvement will measured
metrics to:
― Obtain repository information on process data
― Validated view of how the process is
currently being executed
― Perform additional measurements, if required
― A “complete picture” of the process for
performing value-add analysis
3. Value Stream Maps (VSM)
― Leverage ARIS and check to see if available
― Create VSM if not available to obtain visual of
process details i.e. flow and data
© 2010 TIMPCO Project Management Inc. All rights reserved. Proprietary and confidential. Slide 4

5. Perform Value-add analysis
Steps Outcomes
1. Determine the value of each step in the ― Recognition of waste and defects in the
process based on whether it is – process
― Customer value-add: An activity essential to ― Discovery of the actual amount of value-
deliver a service to the customer, a function that add time in the process
enables on-time delivery
― Answers to the questions –
― Business value-add: Something that improves
effectiveness in a process or addresses ▪ Does the customer care if this activity,
regulatory requirements decision, or movement is done?
― Non value-add: Any activity not required to meet ▪ Does this activity change the product
customer needs or run the business or service physically?
2. Classify "wait" or "idle" time in the process ▪ Is this step essential to doing it “right
that can be eliminated the first time” (not a rework loop)?
3. Identify rework loops in the process that ― Identification of the opportunities for
can reduced improvement
4. Check for non-value-added work in
decisions and hand-offs
© 2010 TIMPCO Project Management Inc. All rights reserved. Proprietary and confidential. Slide 5

6. Improve the Process
Steps Outcomes
1. Using the results of the value-add ― Elimination of waste in process
analysis, identify the changes to be made ― Reduction of non-value-add activities
by:
― Efficient and effective customer value-
― Working on eliminating as many non-value add
add actions
activities as possible
― Identifying solutions to streamline business ― To-be process that will be efficient,
value-add activities effective
― Enhancing the customer value-add activities ― Plan that is effective to manage the
2. Then work on creating to-be process implementation and the change
maps
3. Conduct walk-through of to-be/new
process
4. Obtain approval/buy-in/sign-off on to-be
process
5. Develop plan of action
– Implementation plan
© 2010 TIMPCO Project Management Inc. All rights reserved. Proprietary and confidential. Slide 6

7. Manage the Change
Implement Perform Steps
Follow-up
Changes Updates
1. Implement changes
― Technology – change/update
Why is it important? systems/applications if necessary
― Provides impetus to implementation ― People – manage resource changes if required
plan and execution ― Training – Conduct process training as required
― Will help identify resistance and allow ― Roll-out and use the “new” process
for the mobilization of acceptance
2. Perform updates – Repository
― Once implemented will sustain the ― Update KPI/Reporting
improvement
― Update process models, SIPOC, and VSM
― Increased probability of meeting project
― Update policies, procedures and work instructions
objectives
3. Follow-up
― Define implementation needs:
― Calculate benefits from process improvements
 Systems
― Communicate results to stakeholders
 People
― Recognize the team
 Training
© 2010 TIMPCO Project Management Inc. All rights reserved. Proprietary and confidential. Slide 7