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8/7/2019 Educ Process Improvement Day 2
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Process Improvement Strategies
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AfterAnalyzing.
Once we figure out and have verified what
the issues and challenges are regardinga particular process, we try to streamline
the process..
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Streamlining Processes
Streamlining processes suggest the
trimming ofwaste and excess,
contouring to provide the smoothestflow
It is hoped that with streamlining the
process will operate with the least
disturbance to its surroundings
In the end, we would like to have efficient
and effective processes
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Efficient & Effective Processes
Have few handovers between staff / departments
Produce minimum paperwork
Have high quality outputs
Deliver the desired output to stakeholders with minimalcontact /liaison
Have effective ICT systems supporting orfacilitating
them
Are understood & mapped / documented wherebeneficial
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Note that when we streamline
processes
ELIMINATE SIMPLIFY INTEGRATE AUTOMATE
Over-productionNon-Value Activity
Waiting Time
Transport
Processing
InventoryDefects/Failures
DuplicationReformatting
Inspection
Reconciling/Matching
Forms
ProceduresCommunication
TechnologyProblem Areas
FlowsProcessesPaper work
Jobs
TeamsCustomers
Suppliers
Dirty
DifficultDangerous
Boring
Data CaptureData transferData analysis
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Cornerstones ofStreamlining Processes
Bureaucracy elimination
Duplication elimination
Value-added assessment
Simplification
Process cycle-time
reduction
Error proofing
Upgrading
Simple language
Standardization
Supplier partnerships
Big picture improvement
Automation
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Bureaucracy Elimination
Bureaucracy creates excessive paperwork
Fact: managers spend 40-50% of their time writing andreading job related materials; 60% ofclerical work isspent on checking, filing, and retrieving information
Why? Paranoia about being blamed for errors
Poor training
Distrust ofeveryone
Lack ofwork
Inability to delegate
Need to overcontrol
Unwilling to share information
Thrill ofchecking for and finding miniscule mistakes
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How do you identify bureaucracy?
Are there unnecessary checks & balances
Does the activity inspect or approve someoneelses work?
Does it require more than one signature?
Are multiple copies required?
Are copies stored for no apparent reason?
Are copies sent to people who dont need the
information? Is there unnecessary written correspondence?
Is someone approving something he or she hasalready approved?
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Duplication Elimination
If the same activity is being performed at
different parts of the process or by
different individuals in the process, see if
both processes are needed.
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Value-Added Assessment
The object ofvalue-added assessment is
to optimize business value addedactivities and minimize or eliminate no
value-added activities.
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(X)-Value Add?
Activity
Necessary to
produce output?
Contribute to
Customer Req?
Contribute to
Bus. Functions
Real Value Add BusinessValueAdd
No Value Add
Activities that must
be performed to
meet customer req.
Activities that do not contribute to meeting
customer req. These can be eliminated
without deterioration on product/service
functionality
Yes No
No
YesYes
No
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Simplification
The objective is to reduce complexity
wheneverfeasible, leading to few stages,
fewer tasks, fewer interdependencies, etc.
How to simplify?
Combine similar activities
Reduce amount ofhandling
Eliminate unused data
Refine standard reports
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Process cycle-time reduction
Long cycle times prevent product deliveryto customers and increase storage costs.
Strategies:Serial vs. Parallel activities
Change activity sequence
Reduce interruptions
Set priorities Improved timing
Location analysis
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Error Proofing
People make errors. So we correct the
errors, but this takes time.
Our objective in business, is to reducedouble-checking or second guessing
ourselves.
StrategyMake a list of things you could do wrong and
then use error-proofing methods to eliminate the
possibility ofmaking the error. (Negative
analysis)
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Fail Safing
Creating a control
condition where thecustomer, server, or
process can take only the
correct (or desired) action
while engaged in aservice process.
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Upgrading
Old things, ways and knowledge may
contribute to delays and distractions Upgrade them!
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Simple Language
Do you understand your memos?
Evaluate the present documents used in
the process to ensure that they are writtenfor the user.
Strategies:
Determine the reading and comprehension
level ofyour audience
Familiarity with terms and abbreviations
All procedures that are more than 4 pages long
should start with a flowchart
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Standardization
Standardization ofwork procedures is
important to ensure that all current and
future employees use the best way to
perform the activity.
Procedures should exist for performing
most activities
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Supplier Partnerships
All processes have inputs that come from
people outside the process
Examine each input process and ask:Does the process really need the input
Is it entering the right place?
Is it at the right quality level?
Is the timing correct?
Is it received in the best possible format?
DO you get more than you need?
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Big Picture Improvement
Step out of the current process and define
what the perfect process would bewithout the constraints of the present
organization and/or process.
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Automation
When deciding where to begin the
automation, look for:
Repetitive operations that will improve ifperformed more quickly
Operations that will improve when people who
are physically separated communicate more
quicklyOperations for which standardized computer
system components are available.
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Project Management
Fundamentals
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What is a Project?
Atemporary endeavor undertaken to create aunique product or service
TemporaryA
one time eff
ort; having defined starting andend dates; having a specified objective and
scope ofwork to be performed; having a setbudget; usually being performed by a temporaryorganization; being led by one ultimately
accountable individual
UniqueSolving a problem or addressing a need
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Project vs. Program
vs. Routine Work
A group of related projects managed in a
coordinated way to obtain benefits and
control not available from managing them
individually. Programs may include
elements of related work outside scope of
the discrete projects in the program.
PMBOK 2009
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What is Project Management?
The selection, design (planning, scheduling), execution,
control, evaluation, and termination ofa project to meet
project objectives and customer expectations within
allocated cost, time, resource, and performance
constraints (Keating, 1998).
Project management is the art ofcreating the illusion
that any outcome is the result ofa series of
predetermined, deliberate acts when, in fact, it wasdumb luck. (Kerzner, 1998)
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Project Phases
Step 1 : Define the projectINITIATION AND
DEFINITION
Step 2: Generate Tasks
Step 3: Determine Roles and Responsibilities
Step 4: Define Task Interdependences
Step 5: Develop Schedule
Step 6: Perform Resource Allocation
Step 7: Generate Budget
Step 8: Develop Risk Management
PLANNING
Step 9: Track and Manage the ProjectEXECUTION
AND CONTROL
Step 10: Perform Post-Project ReviewCLOSE OUT
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About Project Scope
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Project Scope
Ascope describes what you expect to
deliver to your customer when the project
is complete
A poorly defined scope is the most
frequently mentioned reason for project
failure.
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Project Scope Checklist
Project Objectives
briefsummary of
essential proj.
information (who, what,why, optional : when &
cost)
Deliverables
typically will include
time, quantity and cost
estimates
Measures ofSuccess
Milestones
Important control points
in the project
Technicalrequirements
Limits and Exclusions
Reviews with
customer
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The PM Triage
Project
ScopeTime
Resources
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Project Management Dilemma
Cost
Perfor ance
i eScope
C = f(P,T,S)
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Project Management
Project Cost Management
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Work PackageCosts
Labor
Materials Sub-contractedWork
EquipmentLease
Tools &Supplies
Overhead
Services
(Some) Sources ofProject Costs
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=Total
ProjectCosts
LaborMaterialsContractsSupport
BenefitsOverheadAdmin+
Types ofProject Costs
Costs related to a
project that can be
traced back to a
cost effective way
Direct Indirect
Costs related to a
project that
CANNOT be
traced back to a
cost effective way
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Types ofcosts
Intangible vs Tangible Costs
Sunk Cost
Money that has been spent in the pastBurdened Cost
AKA Overhead, is all the "little" stuff that makes
the project possible.
Can be derived as a percentage ofdirect labor
or the raw cost
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Examples ofBurdened Cost
Examples
Land purchase or lease cost
Building lease cost
Real estate taxes Environmental fees and taxes
Utilities (electrical, water, phone, etc.)
Staffsalaries (management, indirect labor, etc.)
Maintenance costs Real and capital depreciation
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Risk
Dictionary definition: The possibility of
loss or injury
Question: So i
fthere is a possibility o
floss or injury, then why even perform a
certain task?
The change that an undesirable event will
occur and the consequences ofall its
possible outcomes
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Risk Management
The identification ofas many risks as
possible
Minimizing their impact
The managing of responses to those
events that do materialize
Providing contingencyf
unds to cover risksthat do materialize.
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Risk Identification
Process of transforming uncertainties and issuesabout a project into distinct risks that may bedescribed and measured.
Risks cannot be assessed until identifiedNeed methodical process
Risk definition: Scenarios & Consequences
Central question -- what can go wrong with this project,activity, task?
Good risk event definitionClear and concise easily understood
Risk event captured
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Evaluation ofRisks The Risk
Severity Matrix (RSM)
The RSM is a Systematic determination of
the consequences of identified risk events
Analysis in 3 phases
PHASE 1: Determination of likelihood of
occurrence --Low, Medium, or High
PHASE 2: Determination of Impact ofEvent
Low, Medium, or High ON... Cost, Performance, Scope, Time (Basics)
PHASE 3: Determine the Severity of risk event
Low, Medium, or High
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Planning for risks in the project
Planning is function ofdeciding what, if
anything, should be done with a specificrisk event The STRATEGY for managing
the risk event.
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How does one respond to a risk?
Reduce the RiskCommon plan that is used.
Retain the RiskThe project owner assumes the risk because the chance
ofsuch an event happening is slim (e.g. flood orearthquake)
Transferring the RiskThe risk is passed on to another party (e.g. the whole
development project is given to a contractor - fixed
price contracts) Share the riskPartnering with another company
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Contingency Planning
An alternative plan that will be used ifa
possibleforseen risk event becomes areality
It is necessary to identify the triggers that
will activate the implementation of the
contingency plan
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PMBOK Ratings Impact for a Risk