Business Process Improvement Guideline Rev.5

8/3/2019 Business Process Improvement Guideline Rev.5

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Business Process ImprovementHandbookHandbook

What you THINK your process is

What It ACTUALLY Is

What it SHOULD Be

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PROCESS MANAGEMENT OVERVIEW

SOME FACTS ABOUT PROCESS AND FUNCTIONAL MANAGEMENT

1. Effective and efficient processes are repeatable, dependable and robust, and deliver tocustomer(s) requirements and expectations.

2. Many organizations are structured into functional silos to facilitate direction and

control. Organizations of this nature hinder process effectiveness and efficiency.

3. Features of a functional/silo organization: They think vertically rather than

horizontally. They are internally focused rather than customer focused. They make work

and generate job growth to build empires. They do not have the company as a whole inmind.

4. The first time a process gets mapped, it is usually very convoluted and loaded withopportunities for streamlining by removal of non-value added activities.

5. It is essential to map the process before beginning the improvement cycle so you cansee what you need to improve and to base your improvements on hard fact, data and

information; (i.e.: Who does what? When do they do it? Where do they do it? Why do

they do it and finally How do they do it? Otherwise, you are only imagining what youhave to improve.)

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CONTINUOUS IMPROVEMENT

Process improvement has many levels and it is far from stagnant. It starts with Phases 1

and 2 of the model below. Once phases 1 and 2 are completed, Phases 3 and 4 may be

explored in the quest to achieve the most effective and efficient process that provides

valued services and products to the customer by introducing best in class practices.

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Business Process Improvement (BPI) Guidelines

The following steps identify the major activities encompassed in the six-phase approach

for Business Process Improvement (BPI). You are encouraged to use this guideline inorder to achieve proper understanding of the respective existing (As-Is) process and the

associated issues/concerns. This is expected to pave the way for identifying improvement

opportunities followed by streamlining of the process and ultimately defining the To-Be process and an appropriate system for measuring the effectiveness of the affected

process.

General BPI Steps:

1. Preparation for Workshop

1.1. Identify the Workshop FacilitatorUsing the BPI methodology and tools the facilitator guides the team through the

workshop and brings the team together in the understanding and improvement of theprocess.

The facilitator must ensure that the team performs to its potential, i.e. that the

workshop dynamics support the fulfillment of the process mandate.

As important as the technical knowledge of the BPI methodology and tools are, it

does not guarantee the success of a workshop. The successful application of thetechnical knowledge rests on the facilitation skills.

Facilitation is best suited to those people who:

are inclined to be extroverted

enjoy interaction with people in a group setting

comfortable with assuming the leadership role

prefer developmental rather than directive style

are perceptive

are able to confront issues without alienating the team or diminishing the Process

Owner, Manager and/or Sponsors role

are skillful in diffusing conflicts

1.2. Identify Process Manager / Owner / Sponsor

The Process Owner, Manager and/or Sponsor are the people who will be responsiblefor managing any changes to the process determined by the workshop. As they are the

ones who will provide the information to complete the Process ImprovementMandate, it is necessary to clearly identify who they are.

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Roles & Responsibilities

PROCESS MANAGER

Is primarily responsible and accountable for the day-to-day activities of the

process

Will drive implementation. Will obtain resources for the project as required.

Will provide session participants with project status

PROCESS OWNER

Is responsible and accountable for the overall effectiveness and efficiency of the

process

Facilitates the resolution of interface problems between functional departments

PROCESS SPONSOR/CHAMPION

Is implicated in the process as a supplier, customer or key stakeholder.

Has decided that the process requires either understanding or improvement.

Has the agreement of the Process Manager and/or Owner to analyze the process

Is often appointed by the Process Owner.

Refer to Process Questionnaire (Appendix K) and Process Mandate Form

(Appendix L).

1.3. Meet with Manager/ owner / sponsor

Define Mandate Refer toProcess Mandate Form (Appendix L)

o Process mandate Checklist - to ensure the process definition is complete:

- Identify Process Owner(s) & Process Manager(s).

- Review Process Name.- Define Major Process Problems.- Define the Boundaries.

- Determine the Scope.

- Define Major Process Expectations.

- Define Objectives. Objectives shall be tangible, measurable, clear &concise. Objectives shall be SMART

Select Team Participants

In order to be effective, the team should have representation from all major areas

involved in the process. The team members selected need to:

Be empowered to speak on behalf of the rest of their organization.

Have the time to focus on the project.

Be willing to participate actively.

Be committed to implementing the action plan that is developed during theworkshop.

The Process Manager, Owner and/or Sponsor should act as a leader on the

team, providing the Facilitator with direction and support.Note: Refer to stages of team formation; Appendix B.

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Review Proposed Game Plan (Agenda) for the Workshop

To help determine if any preparation is required for the workshop (e.g. statistics to be

gathered), review with the Process Manager, Owner and/or Sponsor what you want to

include in the agenda for the workshop.

Note: Refer to Sample of workshop Agenda (Appendix M). You maychoose those items

which will accomplish the objectives defined in your Process Mandate.For example:

Do you need Process Analysis?

What tools should be used?

Is it a new process with no As Is and only a To Be process required?

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Determine Logistics

o Determine the number of days required for the workshop

o Identify an appropriate conference room

o Select a possible date for the workshop

o Determine the workshops date and daily scheduleo Gather the supplies required for the session:

- Brown (butcher block) paper (subject to availability in the market)- Post-It-Notes

- Markers

- Flip charts

- Masking tapes (1 inch width)- Masking tapes (1/2 inch width)

- Visio software for capturing the maps electronically

- Access to a plotter to print the electronic maps

o Identify who will do what

2. Workshop Kick-Off

2.1. Participants Introduction This helps to determine whether or not you have representation from all the areas

touched by the process.

2.2. Team Mandate Presentation by Process Manager, Owner and/or SponsorThe Teams Mandate is what you will use throughout the workshop to focus the

group on the purpose and deliverables of the session.

Have the Process Manager. Owner and/or Sponsor present the Team Mandate. Thisprovides them with the opportunity to clarify the scope and achieve alignment with

the objectives.

2.3. Workshop Agenda Review Review the agenda with the participants including the start and end times for the

workshop.

2.4. Discuss Roles of Facilitator and Team members

Facilitators RoleThe facilitator must ensure that the team performs to its potential, i.e. that the

workshop dynamics support the fulfillment of the process mandate.

Using the BPI methodology and tools the facilitator guides the team through the

workshop and brings the team together in the understanding and improvement of

the process.

This entails keeping the discussion on track, managing conflict when necessary,

and ensuring that everyone gets the opportunity to participate and to express their

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views openly. They act as a catalyst for change, encouraging the team to

challenge the status quo and to question non-value added activities in the process.

In summary, the facilitators role is:

Provide structure

Gate-keeping Maintain group focus

Mediate

Feedback

Challenge

Participants Role for an Effective Workshop

Be on time and dont leave early

Be fully dedicated

No talking over one another

No side conversations

Listen to be listened to

Keep the discussion focused

Participate actively

Eliminate the obstacles to solve the problems

Look for common ground

Be open-minded

Focus on ETs best interests

Speak up! Dont hide problems

No cheap shots

Have fun!

2.5. Present housekeeping logisticsEliminate disruptions (pagers, phone calls)

Breaks - time to pick up messages

Lunch time - Between and --

Washrooms / smoking rooms

2.6. Collect Expectations

Ask each participant and capture his/her expectations on a flip chart for follow-up

to check if the expectations have been met by the end of the workshop.

2.7. Process Management briefing (if necessary)

Ensure that the team is aware of what process management is all about.

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3. Process Understanding

3.1. Map the process As Is

Refer to Appendix P for Mapping Symbols and to Appendix Q for MappingTechniques.

The As Is mapping is central to gaining a shared understanding of the current process.

It is used to:1. simply fine-tune, rather than change an existing process

or

2. improve a process by introducing significant changes; the As Is mapping becomes acrucial first step in the shaping of the To Be process.

During the As Is mapping the team will:

develop the fact-based conclusions about the current process

identify the most-bang-for-the-buck opportunities

identify no-brainer changes build an imperative for changing the As Is

Mapping Guidelines

o Map one product / service from start to end

o First, map the As Is, not the To Be or Should Be

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o One breath explanations (Keep activity descriptions focused and to the

point)

o Document all steps and their sequence at the agreed upon level.

o Document hand-off criteria, paperwork, and needed approvals

o Resist problem solving

o Use the 80/20 rule (Map the normal flow - 80% /not the exceptions - 20%)

Macro Map:

To help the team get started, you may draw a Macro Map before attempting a

detail map of the process. Use the Macro Map form. The following are to be

identified in the Macro Process Map.

1. Process Name

Give the process name which focuses on the product / service.

2. Process Problems

The process problems are the reasons WHY the process needsimprovement.

3. Boundaries

The boundaries specify what events, transactions or tasks START (3a) theprocess and END (3b) it.

4. Scope

The scope defines which areas/sub-processes should be included in theanalysis, and which should be excluded.

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5. Phases

The phases are the high level activities of the process.

6. Major Players

The major players are organizations, departments, or people that are

involved in the process.7. High Level ActivitiesThe high level activities highlight the major activities in the process.

(Usually the only mapping symbols used in a macro map are the activitybubbles.)

Detail Mapping Steps:

1. Identify the main phases (stages) of the process and, using Post-It-Notes to

record the phases, lay them out across the top of your process map.

2. Have the team list all the major players that get involved in the process

either by department name or job titles down the left side of yourprocess map.

3. State the start boundary and ask What is the first thing that happens and

who does it?4. Using the mapping symbols, describe the activities that occur in each

phase for/by each player.5. Continue mapping the next steps in the process. Allow each participant to

describe his own activities.

6. Allow constructive discussions if it helps the team clarify activities.However, do not focus on challenging the process at this stage.

7. If issues and concerns (I&C) are raised around a particular activity,

capture them on a flip chart under I&C, number them and attach a small

red dot or Post-It-Note, with a matching number, to the correspondingactivity on the map.

8. If participants discover opportunities for improvement, capture them on aflip chart under Opportunities, number them and attach a small green dotor Post-It-Note, with a matching number, to the corresponding activity on

the map.

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3.2. Process Analysis

The purpose of process analysis is to expand the understanding of problems andsolutions from all necessary perspectives.

The Process Analysis is used to:

o further the understanding of the As Is

o decide whether the As Is requires improvement

o determine the root cause of problems

o generate ideas and conclusions for the To Be

o perform a comparative analysis between the To Be and the As Is

Process Analysis has at its disposal a multitude of charting and problem-solving techniques. They can be applied in conjunction with fundamental

principles and patterns such as standardization, elimination of bureaucracy, etc.,found at work in a business environment. Some of the following tools may beused depending upon the nature of the process as well as the teams and the

facilitators preference (refer to the Appendix for detailed description on each of

the tools):

o Brainstorming

o Affinity Diagram

o Decision matrix

o Workload Analysis

o Input / Output Verification

o

Cause and Effect / Fishbone Diagramo Force Field Analysis

Brainstorming (Appendix D)Brainstorming is an idea generation technique. The function of brainstorming is to

come up with as many ideas as possible.

Affinity Diagram (Appendix E)The affinity diagram is a tool that allows a team to organize and summarize

natural groupings of ideas / issues.

Decision Matrix (Appendix F)A decision matrix is useful for determining the best solutions suited to be

implemented.

Workload Analysis (Appendix G)

Workload Analysis is a tool used to understand the volume and types of products /services involved in the process.

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Input / Output Verification (Appendix H)

The Input / Output Verification is a tool which can be used to identify all

information transfers (interfaces) between activities within a process.

Cause and Effect / Fishbone Diagram (Appendix I)

The cause and effect diagram is used to identify, explore, and graphically display,in increasing detail, all of the possible causes related to a problem or condition to

discover its root cause(s).

Force Field Analysis (Appendix J)

The force field analysis tool is used to identify the forces and factors in place that

support or work against the solution of an issue or problem so that the positives

can be reinforced and/or the negatives eliminated or reduced.

3.3. Process Improvement

How do we improve a process?Process improvement is in itself a complex process and there is no one magic recipe for

it. Numerous BPI workshops have shown that the only magic comes from the four vital,yet hard to measure ingredients:

the groups willingness to embrace change

the groups creative intensity

the facilitators skill

the synergy between the group and the facilitator

These ingredients provide a foundation for an effective application of whatever patterns

and principles are used.

3.3.1. Principles, Patterns and MethodsUse the following principles, patterns and methods to identify, challenge, andeliminate the non-value added activities from your As-Is process as well as when

developing the To Be process (Refer to Appendix A to Identify and Select

Opportunities and to Appendix N for details on the items listed below).1. Elimination of Bureaucracy

2. Elimination of Duplication

3. Simplification4. Standardization

5. Value-added Assessment

6. Error-proof the Process

7. Process Time Reduction

How do we map the To Be?

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3.3.2. Map To Be process

Use the same mapping symbols and techniques as for the As Is.

1. Have the As Is map displayed in a convenient position for reference.

2. Set up a length of brown butcher block paper for the To Be.3. Use Post-It notes to record the main phases across the top of the paper.

4. Place Post-It notes with the departments names or position titles down the left

side of the To Be map.

5. In this step, the demand on the teams creativity is at its highest. Using all theinformation that has been accumulated, the team will need to judiciously

apply:

a) I&C and Opportunities identified during the As Is mapping andb) Process Analysis findings and

c) Principles and Patterns found in the following section.

6. If issues and concerns (I&C) are raised around a particular activity, capturethem on a flip chart under I&C, number them and attach a small red dot or a

Post-It-Note, with matching number, to the corresponding activity on the map.

7. If participants discover opportunities for improvement, capture them on a flipchart under Opportunities, number them and attach a small green dot or Stick-

It-Note, with matching number, to the corresponding activity on the map.

3.3.3. Review Process OwnershipSometimes, during creation of the To Be process, ownership of the process

comes into question. Does the original owner still own the process or are thechanges so dramatic, that ownership falls to someone else?

3.3.4. Review As Is Issues & Concerns and Opportunities

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As one of the final steps in validating the To Be process, you need to review the

issues and concerns and opportunities raised during the As Is process mapping

and analysis.Determine if they have been incorporated into or corrected by your new process.

If not, check with the team and decide if they are still valid concerns or

opportunities.

3.3.5. Concluding the Process Improvement Step

In order to ensure that the new process youve designed is complete, review theProcess Mandate to verify that the problems originally highlighted will be

addressed by the new process. It may be necessary to modify your new process

slightly.

4. Process Review & Implementation

4.1. Develop Process Metrics / MeasuresProcess metrics help in determining whether the process is healthy. If there are good

process related metrics in place and the process is not working appropriately, the metricsyou choose should indicate this. (Refer to Appendix O for details)

4.2. Develop Action Plan

Having developed the best To Be process is not the end. To accomplish this, the teamwill need to develop a comprehensive action plan. It will include action items based on

the issues and concerns and opportunities, but it is not limited to these items.

During the development of the To Be process map, some issues and concerns andopportunities may have been raised and captured on flip charts. If the I&C or opportunity

has not been incorporated into the To Be process, create an action item which

addresses the point.Subsequent to addressing all of the issues and concerns and opportunities, there may still be

other actions required to implement the To Be process. Ask the team to identify these

actions and determine an actionee and target completion date for these items.

4.3. Review Team Expectations

Review with the team the expectations captured at the start of the workshop.

Convert the expectations which have not been addressed into action items, with assignedActionees name and target dates. Add these to your Action Plan.

4.4. Management ReviewWhere appropriate, the team should review their findings, conclusions and

recommendations with the appropriate process stakeholder(s) at the close of the

workshop. Logistics for the Management Review should have been discussed and agreedto during the initial meeting with the Process Manager, Owner and/or Sponsor.

4.5. Assign Follow-up Roles

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In order to ensure that all participants understand what is expected of them after the

workshop, present the following roles and responsibilities.

Roles & Responsibilities:PROCESS MANAGER

To drive implementation To obtain resources as required

To provide participants with project status

PROCESS OWNER

Responsible for the effectiveness and efficiency of the process

Facilitates the resolution of interface problems

Eliminates roadblocks to implementation of To Be process

PARTICIPANTS

To complete action items on time

To challenge the Process Manager to follow through on implementation

FACILITATOR

To provide additional support as agreed to with Process Manager/Owner

4.6. Establish Feedback Mechanism

To keep the momentum of the project, status meetings must be held on a regular basiswith all team members. These meetings are designed to ensure completion of all project

action items and to allow the Process Owner the opportunity to intervene if actionees are

encountering roadblocks in achieving results.

4.7. Team Recognition & Closure

When allproject action items have been completed / implemented, an appropriate projectclosure is required. This may be in the form of:

a letter of acknowledgment and thanks to the team members

a project article in P&WC News

a project team lunch in the Executive Dinning room

a dinner certificate for two for each team member

or any combination of the above

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5. CONTINUOUS IMPROVEMENT

Now that the workshop is over and the challenging work of implementing all the creative

ideas is underway, the good news is your journey is not over. Process improvementhas many levels and it is far from stagnant.

At this point youve completed Phases 1 and 2 of the model below. Phases 3 and 4 areother areas that may be explored in your quest to achieve the most effective and efficient

process that provides valued services and products to the customer.

5.1. Process Benchmarking

5.2. Process & Systems Re-engineering

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Appendices

A. IDENTIFY AND SELECT OPPORTUNITIES21

B. STAGES OF TEAM DEVELOPMENT.23

C. MANAGING MEETINGS...28

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D. BRAINSTORMING.29

E. AFFINITY DIAGRAM30

F. DECISION MATRIX...31

G. WORKLOAD ANALYSIS...32

H. INPUT/OUTPUT VERIFICATION34

I. CAUSE & EFFECT / FISHBONE DIAGRAM.35

J. FORCE FIELD ANALYSIS37

K. PROCESS QUESTIONAIRE..38

L. PROCESS MANDATE.39

M. SAMPLE OF A WORKSHOP AGENDA..42

N. PRINCIPLES & PATTERNS.44

O. DEVELOP PROCESS MATRICS..51

P. MAPPING SYMBOLS.53

Q. MAPPING TECHNIQUES..54

Appendix A

Identify and Select OpportunitiesThis section will help you identify and select process opportunities you need to improve.

Criteria for Selecting Process Improvement Opportunities

Most internal/external complaints

Highest cost

Long cycle time

Known better way

Current results not satisfactory

Easy to fix problems

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Generating Potential Improvement IdeasYou might want to conduct a brainstorming exercise with a group of people to determine

areas of potential improvement. After all ideas have been captured, clarify any that arenot understood by the group. Combine ideas where it makes sense.

Determining Which Improvement Opportunities have the Most ImpactAssign a number to each of the ideas generated in the brainstorming exercise above.Create a set of sticky dots with all the numbers for each team member. Using the Ease /

Impact Table on the following page, let each person assign the ideas to a quadrant basedon his/her perception of the ease of the project (in terms of cost and human resources)

and the impact of the project (benefit).

For each idea, count the number of sticky dots in each quadrant and record on theImpact Table Scoring Matrix. Multiply all quadrant 2 items by 2, quadrant 3 items by 3

and quadrant 4 items by 4. Add quadrant totals across each row for each item. The items

with the lowest score are potential low cost, high benefit opportunities.

Ease / Impact TableEase / Impact Table Scoring MatrixVoting was based on the following criteria:

Quadrant 1 = easy to implement and high impact.Quadrant 2 = hard to implement and high impact.

Quadrant 3 = easy to implement and low impact.

Quadrant 4 = hard to implement and low impact.

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Appendix B

Stages of Team DevelopmentThe following pages are intended to provide you with an understanding of the stages a

team may go through during a workshop. None of these four stages are static teams

might regress to lower stages of development then move forward, only to regress again

during various phases of the workshop.

Newly Formed

Fragmented Reconfigured

The Whole

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STAGE 1: NEWLY FORMED

This stage is representative of all early stages when people firstcome together. Productivity at this stage is typically low as

members begin their orientation to the task. Members are process

dependent - meaning they look to the formal leader fordirection

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STAGE 2: FRAGMENTED

At this stage members have been together for awhile and begin to experience feelings ofdissatisfaction. This dissatisfaction results from a struggle for leadership, incomplete /

ineffective communication, arguments and members taking issues personally. The

members begin organizing tasks and begin experiencing conflict. Commonly at thisstage, there is a dip in morale due to the disillusionment or discrepancy between the

hopes / expectations of members and reality.

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STAGE 3: RECONFIGURED

At this stage members begin facing internal conflict openly and honestly and start re-

establishing relationships with one another. As the ways of working together become

more clear, through the open flow of data, there is less dissatisfaction, increased level oftrust and respect and ultimately more cohesion.

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STAGE 4: EFFECTIVE TEAM - THE WHOLE

This is the stage of true effectiveness from both a process (interdependent) and task(problem solving) standpoint. Members have a high level of trust in one another allowing

them to face differences openly. Leadership within the team shifts according to thedemands of task and preferences of group members. Human relations are very

harmonious and there is a recognized need to accomplish tasks - this leads to high levels

of productivity.

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Appendix C

Managing MeetingsTips

Have a defined purpose for the meeting and publish it in advance

Create an agenda for the meeting Get agreement on the agenda at the beginning of the meeting

Have an agreed-to start and end time

Restate conclusions and assignments to ensure agreement and to provide reinforcementor a reminder

Control interruptions

Accomplish the purpose of the meeting

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Appendix D

Brainstorming

What is it?Brainstorming is an idea generation technique that can be used at almost any point in the

problem solving process. The function of brainstorming is to come up with as manycreative ideas as possible.

Why is it useful? Encourages all team members to get involved in the problem solving process.

Taps creative thinking

Gets a lot of information out in a short period of time

Why is it used?

To identify potential problems, causes, solutions.

To determine data and sources of data to be collected.

How is it done?

Write the topic, problem or issue on the flip chart. Ensure the group understands thestatement

State a finite time for the exercise at the beginning, or state that the exercise willcontinue until all the ideas are exhausted

Ask team members to take a few minutes to think silently about the topic

Generate ideas - 2 methods:

Free-for-all: Everyone calls out ideas as they think of them.

Round-robin: Each person presents one idea at a time in sequence. If they dont

immediately have an idea, pass them by for this turn. They will get another chance.

Record all the ideas

Encourage building on others ideas

The Real Rules

Relax your brain; dont worry about being right

Absolutely no criticism!

No domination by any one individual

No evaluation of any kind is permitted

All participants are encouraged to think of the wildest ideas possible

Quantity of ideas is encouraged

Participants are encouraged to build upon or modify previously suggested ideas

Keep task statement visible

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Appendix E

Affinity DiagramWhat is it?

The affinity diagram is a tool that allows a team to organize and summarize naturalgroupings of ideas / issues.

How is it done?

Write the topic, problem or issue on the flip chart. Ensure the group understands thestatement.

State a finite time for the exercise at the beginning

Brainstorm about the topic, problem or issue

Write each idea on a separate piece of paper

Without talking, have the team sort the ideas generated during brainstorming into 5-10

groups.

Create a heading for each group

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Appendix H

Input / Output Verification

Why use it?

The Input / Output Verification is a tool that can be used to identify all informationtransfers (interfaces) between activities within a process.

Why is it useful?

Identifies any information that is not required (outputs that are not needed as inputs, or

input that are not needed to perform the activity.

Identifies formal / informal information flow

Identifies input sources and output destinations

How is it done?

Number each activity in space provided.

Copy the activity description from the process map to the space provided. Identify the inputs (what is needed to do the activity) on the left-hand side of the form.

Identify the outputs of the activity and write them on the right-hand side of the form.

You can identify who is responsible for providing the inputs along with any procedure

linked to this activity.

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under each category, enter all of the causes previously established during the

brainstorming session.

5. Analyze the probable root cause:

Determine the root causes producing the effect by repeatedly asking of each cause listed

on the diagram Why does it happen. A brainstorming session will enable you to look ata problem from different angles. Write all the root causes on the diagram.

6. List the causes in order of priority:

The objective is to list the root causes by priority in terms of validation andimplementation. Some causes can be easily ruled out while others may seem complex and

take longer to rule out. The causes to be investigated in the short term should be marked

with a red dot on the diagram; those the team plans to look into later (medium) shouldbe marked with a green dot.

7. Devise a validation plan:

Every cause to be investigated, whether in the short or medium term, must be assigned to

someone in the group who will be responsible for validating it. Each person responsible

for validating one or more causes must set aside the time needed to validate these causesbefore the next meeting can be held.

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Appendix J

Force Field Analysis

What is it?

The force field analysis tool is used to identify the forces and factors in place that supportor work against the solution of an issue or problem so that the positives can be reinforced

and/or the negatives eliminated or reduced.

Why is it useful?

Presents the positives and negatives of a situation so they are easily compared

Forces people to think together about all the aspects of making the desired changes a

permanent one

Encourages people to agree about the relative priority of factors on each side of the

balance sheet

Encourages honest reflection on the real underlying root cause of a problem and its

solution

How is it done?1. Draw a large T on a flip chart

A) At the top of the T, write the issues or problem that you plan to analyze

To the far right of the top of the T, write a description of the ideal situation you wouldlike to achieve.

B) Brainstorm the forces that are driving you towards the ideal situation. These forces

may be internal or external. List them on the left side.C) Brainstorm the forces that are restraining movement towards the ideal state. List them

on the right side.

2. Prioritize the driving forces that can be strengthened or identify restraining forces that

would allow the most movement toward the ideal state if they were removed.

Achieve consensus through discussions or by using ranking methods

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Appendix K

Process Questionnaire

This 20 point questionnaire can be used to assist the Process Manager, Owner and/orSponsor in defining his process.

1. What business goals are supported by this process?

2. Does the process have specific quantifiable goals?3. Where does the process begin (document or transaction)?

4. Where does the process end (document or transaction)?

5. What major sub-processes are included in the process?

6. What major sub-processes are not included in the process?7. Who are the process customers?

8. Are customer requirements documented?

9. What is the impact of poor process performance?

10. Who are the process suppliers?11. Are supplier requirements documented?

12. What is the impact of poor supplier performance?13. How resource intensive is the process?

Dollars

People

Time

14. Who is responsible for the functioning of the process?

15. How do you know if the process is working?16. What functional groups does this process involve?

17. Is the process documented?

18. Does the process include periodic process reviews with established process measures? Effectiveness (customer needs)

Efficiency (business needs)

19. Is the process stable, repeatable and predictable?

20. What is the name of the process being described (if any)?

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Appendix L

Process Mandate

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Define Process MandateIt is necessary to define the process mandate to ensure complete understanding betweenthe Process Owner, Manager and/or Sponsor and yourself regarding the problems the

workshop is intended to resolve and the objectives the workshop is intended to achieve.

1. & 2. - PROCESS OWNER, MANAGER AND/OR SPONSORList the Process Owner, Manager and/or Sponsor name.

3. - DETERMINE PROCESS NAMEDetermine a meaningful name for your process which describes the service or output of

the process.

4. - MAJOR PROCESS PROBLEMSIn what way does the process:

Negatively affect the customer

Negatively affect business strategies Create problems or fail to produce required output

5. & 6. - DEFINE THE BOUNDARIES OF THE PROCESSThe boundaries of a process specify which event, transaction or task STARTS the process

and which ENDS it.

7. & 8. - DEFINE THE SCOPEThe scope is the definition of what areas and/or sub-processes should be included in theanalysis and what should be excluded.

9. - DEFINE THE EXPECTATIONSExpectations are the Process Owner, Manager and/or Sponsors needs for the process in

terms of effectiveness, efficiency and adaptability.

10. - DEFINE THE OBJECTIVESObjectives are tangible, measurable, clear & concise. Objectives are SMART

Specific

Measurable

Achievable

Realistic

Timely

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Appendix M

SAMPLE OF A WORKSHOP AGENDA

PROCESS NAMEBUSINESS PROCESS DEVELOPMENT WORKSHOP

DATE

LOCATION

Kick-off1. Round table introduction (name, role, experience and link with the process)2. Team mandate presentation by sponsor

3. Review agenda

4. Present:

Participants roles

Facilitators role

Housekeeping

5. Collect workshop expectations from team6. Process Management (video, presentation, etc.)

Process Understanding1. As is process mapping (macro and/or detail map)

2. Process analysis

Brainstorming

Affinity Diagram Analysis

Decision Matrix

Process Analysis Sheet

Cause & Effect / Fishbone Input / Output Verification

Force Field

Process Improvement1. To be process map2. Review process ownership

3. Review As Is Issues & Concerns and Opportunities

Process Review & Implementation1. Metrics presentation

2. Metrics design3. Develop action plan based on:

To Be Process Map

Issues & Concerns

Opportunities

Metrics

4. Review Team Expectations

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Elimination of Duplication

Duplication of effort usually creeps into the process over time. Rarely is duplication

installed into the original process intentionally. Typically it happens because:

no one realizes the duplication exists or why someones job now depends on the duplicate steps remaining in place

lack of trust in the previous execution of the same activity

Aside from the additional cost and resources associated with duplication, it can also causeother problems:

multiple files/databases contain discrepancies

checks and balances necessary to verify duplication are not in sync

different results from duplicate activities (which are right?)

personal systems set up outside of the process

How do we eliminate duplication?

Ask the following questions: Why does the duplication exist?

How can duplication be eliminated while still meeting needs?

Which of the duplicated activities provides the most value?

Is the cost of duplication justified by the benefit?

What does the duplication cost in terms of customer satisfaction?

Simplification

Simplifying a process means reducing complexity wherever possible. Complexity makesa process difficult to manage and even more difficult to adjust, when necessary. Complex

processes tend to be rigid and are difficult to understand, which may lead to a lack of

shared understanding of the entire process. As processes become simpler, chances

increase that the process will be executed accurately and efficiently.

How do we simplify a process?

By combining similar activities

Abandoning collection of data for reasons that no longer exist

Refining forms and reports to contain only necessary information

Reducing the amount of handling (e.g. phone vs. mail)

Re-sequencing of steps for smoother flow

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Rearranging data in a more user-friendly format

Standardization

For a given activity, standardization of work procedures is required to ensure the

consistency of execution. Standardization of work procedures is essential to establishingan efficient process.

Procedures should exist and be adhered to for most processes. They should be easy to

understand and not open to interpretations. Training in the procedures should be providedto all employees involved in the process.

How do we standardize a process?

Do procedures exist for this process?

Are the procedures current and updated regularly?

Do people follow the procedures?

Are the procedures clear and easy to understand?

Has everyone involved in the process been trained in the procedures?

Value-Added AssessmentNon-value-added activities are obvious targets for elimination.

How do we determine if an activity adds value?

The following questions should be asked:

Why is this activity performed? (Ask Why? five times.)

Was this activity established to accommodate exceptions?

Was this task established to accommodate errors?

Does this task create a bottleneck in the process? If so, why?

What would happen if we stopped performing this activity?

Who would care if we stopped doing this activity?

Does the reason for the activity still exist?

Does the benefit of performing this activity outweigh the cost?

How to Cure a Handoff:

When a handoff is identified, the following questions should be asked:

Are there recording activities associated with this handoff?

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Can the handoff and/or the recording activity be eliminated?

Does a cost/benefit analysis justify the recording activity?

Is there a better way to route the work to eliminate handoffs?

Some other types of non-value added activities to watch out for are:

Inspection/approval activities with no decisions following regarding the outcome of

the action. Decisions that cause the process to loop back many times into the process.

Too many approvals without adding value.

Error-Proof the Process

Typically, there are always opportunities to make errors in a process. The primary goal oferror proofing is to minimize those opportunities. The number of ways to error-proof a

process is limited only by ones imagination.

How do we error-proof a process?

Try to:

Use check lists Reduce distractions

Use different colors to identify different types of work

Use computer programs that help prevent errors (e.g. spell-checkers)

Write instructions down; simplify the language

Create standard operating procedures

Repeat instructions to ensure understanding

Mark files clearly

Provide standard routing/information slips

Test forms on people who are not involved in the process

Aim for self-explanatory forms Use envelopes with windows

Bar-code documents, containers

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Process Time Reduction

Cycle Time = Elapsed time to complete one pass of process

Process Time = Actual work time to complete one pass of process

In a business process, time is money.

How do you reduce cycle time in a process?

Performing activities in parallel instead of sequentially

Changing activity sequence to reduce number of handoffs and amount of geographical

movement

Reducing interruptions (especially in bottleneck areas)

Improving timing by knowing limitations (e.g. mail pickup times, cutoff times/dates)

Reducing output movement by locating near the source

Location analysis (is the activity being performed in the right place?)

Setting and communicating priorities (reduce the impact of the squeaky wheel)

Elimination of activities

New Process Patterns

Michael Hammer, author of the bookRe-engineering the Corporation, has identified

several patterns that redesigned processes tend to follow. The redesign efforts considered

in developing the patterns were radical, transformational efforts seeking quantumimprovements in process performance. Following is a summary of those patterns

(adapted from Hammer seminar materials).

Keep these in mind when developing your To Be process.

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Decrease Range of Alternatives

This idea is appropriate when there are high costs associated with information collectionand analysis. The premise is that sacrificing precision will enhance simplicity and

convenience. Rather than assuming more accurate is better, compare cost of precision to

benefit.Benefits: reduced information collection overhead, faster decision making, and reduced

complexity.

Increase Range of Alternatives

Again, the opposite of the previous pattern, this one is appropriate when the cost/benefit

analysis of higher degrees of accuracy justifies the additional work involved.

Benefits: increased customer focus and service, improved resource utilization.

Make Decisions Early For Efficiency of Labor and Capital

This pattern means anticipating rather than reacting. Applicable to processes with high

resource costs and slow decision making.

Benefits: efficient resource utilization, reduced process management and controloverhead.

Make Decisions Late For Flexibility

This pattern, again the opposite of the previous one, encourages decision making as late

in the process as possible for those decisions that involve fluctuating costs.

Benefit: allows flexibility in changing conditions.

Shattering AssumptionsAs processes evolve, underlying assumptions lead to spoken and unspoken rules that

impede the efficiency of the process. Assumptions are difficult to identify because theyare embedded in our minds as a multitude of unchallenged beliefs.

How de we identify the underlying assumptions and challenge the validity of each

one?

Michael Hammer has developed a six step methodology which leads us to the rule that

governs the assumption.1. Define the problem

2. Find the rule (ask why until you can no longer answer it)

3. Identify the assumption (ask why the rule exists)

4. Question the validity of the assumption5. If assumption is found invalid, rewrite the rule

6. If assumption is found to be valid, how can we invalidate it or work around it?

After applying some of the previous improvement ideas to the process, there are probablya few remaining problem areas or activities in the process that have not been resolved.

We can look for assumptions in these activities.

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Appendix O

DEVELOP PROCESS METRICSProcess metrics help in determining whether the process is healthy. If there are good

process related metrics in place and the process is not working appropriately, the metrics

you choose should indicate this.

Three Types of Metrics1. Input the capability to perform a specific activity, behavior, or condition2. In-Process The process of the specific activity, behavior, or condition to a particular

situation

3. Output The performance results of the activity, behavior, or condition on achieving thestated goals of the business

For Example- Engineering Change (EC) Process Metrics might be:

1. Input Number of Requests for Engineering Change (RFEC)2. In-Process Turnaround time (How long does it take to process a RFEC?).

3. Hand-offs (How many times does the RFEC change hands in the process?)

4. Output Number of ECs; Cost of an EC.

Characteristics of good Metrics1. Relevance - Communicates a clear message or information2. Completeness - Makes important factors visible

3. Timeliness - Indicates changes or trends in real time

4. Elegance - Provides maximum insight from minimum data

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The following are examples of process and result oriented metrics. When developing

metrics keep in mind which type is the most appropriate to measure your process.

Appendix P

Mapping SymbolsThe following symbols are used in mapping to depict a process. The description withinthe activity should be 3 to 6 words, starting with a verb.

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Documents

Business Process Improvement Guideline Rev.5