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Process Improvement Framework
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
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