Project management and BPI
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This document discusses integrating project portfolio management (PPM) and business process improvement (BPI). It describes how BPI can be used at different stages of the project lifecycle, including investigating problems, establishing baselines, and deciding on solutions at the start of projects (HEAD). Tools like cause-and-effect diagrams, activity-based costing, and decision trees are presented as ways to analyze problems and options. The document also provides a case study example of how BPI could be applied to a project aimed at improving customer satisfaction in a reception area by identifying issues, gathering baseline data, and evaluating options like a queue management system or adding staff.
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Project management and BPI
- 1. Integrating PPM and BPI Bruce Levitan Manchester Metropolitan University 1 PPM & BPI - B Levitan
- 2. A typical project… PPM & BPI - B Levitan 2 idea mandate planning outputs are reviewed team working together good project controls
- 3. PPM lifecycle PPM & BPI - B Levitan 3 HEAD = Strategy / Prioritisation TAIL= Benefits realisation
- 4. Exercise #1 The CEO says to you, “deliver a car for parking in awkward spaces”. You say, “can you be a bit more specific ma’am?” She says, “watch this…”. PPM & BPI - B Levitan 4 Watch this video: http://www.youtube.com/watch?v=zRq0cQtA9SU
- 5. Exercise #1, continued Project: a car for parking in awkward spaces Deliverables: The car Small, Manoeuvrable , Responsive The ramp Strong enough, In the right place at the right time Training for the driver Exercise: What considerations are there at the start of the project? What considerations are there at the end of the project? Just a couple of each: 5 minutes PPM & BPI - B Levitan 5
- 6. Case study #1: BPI What could BPI add? Is it the right project in the first place? (HEAD): Tools for exploring what options there are Tools for decision making about different options Embedding the changes - is staff training enough? (TAIL): Tools for planning the change in business (driver behaviour) Tools for benefits analysis (NB: needs baselines: tools at HEAD available for this) PPM & BPI - B Levitan 6
- 9. Benefits measurementPPM & BPI - B Levitan 7
- 10. Case study #2 Reception area: Poor customer satisfaction Objective to improve this Potential use of £10K queue management system Table exercise: Main objectives of project At HEAD… What would you want to baseline? What information would you want to gather about the service? How would you decide on the solution? 15 minutes PPM & BPI - B Levitan 8
- 11. Case study #1: BPI “Reception area improvement project” The next set of slides give examples of tools that can be used at the HEAD, to: Investigate the problem Baseline Decide on different solution options PPM & BPI - B Levitan 9
- 12. Case study #1: HEAD Investigate the problem: Brainstorm, Nominal group, Future base Cause & effect diagrams Arrow diagrams Baseline activity: Rough-cut Activity Based Costing Tally charts Decide on best options: Pareto analysis Decision trees PPM & BPI - B Levitan 10
- 16. Rough-cut ABC
- 18. Baseline: R-c ABC: how it works #1 Use alongside process mapping – first identify the processes For each process, record the amount of time it takes to do each activity – aggregate this over several days and several staff to get an average Look at proportion of time taken by each process: home in on the ones that take most time (mountains) Within those processes, identify the activities that: Add value Sustaining value Waste Work to eliminate waste and reduce sustaining value PPM & BPI - B Levitan 15
- 19. Baseline: R-c ABC: how it works #2 PPM & BPI - B Levitan 16 For each activity within a process, record the amount of time per day – use several workers and several days to get average Calculate total proportion of time spent with each process, and focus on the “mountains” – here the main is Allocations
- 20. Options: Decision tree #1 Waiting time reduction: Queue management system - £10K ca 50% of organisations report good results Extra staff - £30K ca 80% of organisations report good results PPM & BPI - B Levitan 17
- 21. Options: Decision tree #2 PPM & BPI - B Levitan 18 Outcome 1.1: works well 50% likely Option A: queue management £10,000 implication EVA for option is £0 Outcome 1.2 doesn’t work 50 % likely Outcome 2.1: works well 80 % likely Option B: new staff £30,000 implication EVA for option is £18,000 Outcome 2.1: doesn’t work 20 % likely Option C: do nothing £0 implication EVA for option is £0
- 22. Summary and conclusion In summary I hope that I have shown that: BPI is an important contributor to PPM It can be used before, during and after the project lifecycle In conclusion I hope that I have convinced you that: BPI is a “good thing” and it can help to make sure that the products our projects produce are fit for purpose. PPM & BPI - B Levitan 19
Editor's Notes
- Another type of baselining is rough cut activity based costing which allows you to relatively quickly get a feel for the costs of a service, and to home in on the ones that have the greatest impact.The concept of mountains [click] is that you identify processes that account for the greatest cost, and ignore the lesser ones (the molehills). [click] Here’s an example.Then you use the 20% rule [click]. Once you’ve worked out an estimate of the potential waste in the system, you ask yourself, what if I’m out by a factor of 20% - would it still matter. If the answer is yes then you can proceed to work on that area because you can be reasonably confident it will gain good results. [here’s an example]So now let’s look at this in a bit more detail… [click]
- First, you need to know what your processes are, and here you can use process mapping to help (I haven’t time to discuss process mapping: that’s a whole topic on its own!).Once you have the processes – for example in our reception case study they will include things like handing out and receiving forms – you measure how long the activities within each process take. You don’t just do this for one day and one member of staff: you record the times for several staff over several days and then calculate the average.Now you’re in a position to identify the mountains: those processes that take up most time and resource.Within those, you then identify the three types of activity: value, sustaining value and waste. Anyone who has come across systems thinking will know about these. Briefly, value is the activity that is directly related to providing the service the customer wants, and waste is anything that doesn’t fulfill customer need. So for example, answering a customer’s query right the first time is value, but if a customer has to come back to chase up on something, that’s waste. Sustaining value (or sometimes called sustaining non-value adding) is an activity that you have to do but which isn’t for the customer – examples are filling in timesheets attending staff meetings.Having put everything into one of these three categories, you then work to eliminate the waste – that’s part of what system thinking does; but rc-ABC has helped to identify the waste.The next slide shows a simple activity gathering data sheet [click]
- On the left is a list of the processes – in our reception area they are things like issuing forms and allocating people to queues to be seen by experts.One the right is the list of activities within a particular process – here we have the queue allocation process. Obviously there will be a separate form for each of the other processes.You fill in the amount of time taken up by each activity, e.g. 25 minutes per day allocating people to the benefits assessment queue[click] the form calculates the total time for each process, based on several staff’s inputs[click] and the proportion taken up for each process is then shown on the left hand panelSo now you can see the mountain processes – e.g. here we have queue allocation as taking up the most time[click]