The Business Process Improvement (BPI 7) Methodology Training Module v2.0 includes:
1. MS PowerPoint Presentation including 127 slides covering our seven-steps Business Process Improvement Methodology.
2. MS Word Process Measure Definition Worksheet
3. MS Word Activity Assessment Worksheet
4. MS Word Change Management Worksheet
5. MS Word Process Management Worksheet
2. 2 11/3/2011 – v2.0
A process or value stream is a series of related activities which together
produce an output of value to the customer.
Process or Value Stream - A Definition
3. 3 11/3/2011 – v2.0
Traditional Organizational Structure
The Focus is internal to the Function or Organization
Management
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keeping the
boss happy
giving other
people work
Employees
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4. 4 11/3/2011 – v2.0
Process-Driven Organizational Structure
The Focus is on the Customer
Management
Process
Customer
Requirements
=
INPUTS
Customer
Satisfaction
=
OUTPUTS
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5. 5 11/3/2011 – v2.0
Process-Driven Organization - The Starting Point
Function A Function B Function C
Input
Output
4. Everyone knows only his/her own
function's activities and tasks. As a
result, they make changes which
focus on the function, not on the
overall process performance
3. The function's borders
act as barriers and slow the
overall process, as work is stored at
the entry and exit points to each
function
1. There is no
complete
description of
the end-to-end process.
2. Functions start to make
documents
of their own sub-processes
for their own
purposes.
6. 6 11/3/2011 – v2.0
Process-Driven Organization - Make the Process Visible
Function A Function B Function C
Input
Output
B6B5
A1
A3
B4
B3
B2B1
A2
C1
C2
C3
A4
5. Cross-functional teams are working
together and mapping the functional
activities and tasks, as well as the
interaction points.
6. The different functions start to
understand each others input
requirements, begin to see the overall
process flow, and identify initial
improvement opportunities.
7. 7 11/3/2011 – v2.0
Process-Driven Organization - Process vs. Functions
Output
Input
A1 B2B1 C1
A3 B4B3A2 C2
B6 B5C3 A4
Function A Function B Function C
- Competence A
development
- Training
- Resource pool
- Superior relations
- Competence B
development
- Training
- Resource pool
- Superior relations
- Competence C
development
- Training
- Resource pool
- Superior relations
Functions become competence centers - supplying
competence and resources to the processes
Sub-Process #1
Sub-Process #2
Sub-Process #3
8. 8 11/3/2011 – v2.0
Business Process Improvements (BPI 7) – Table of Content
The main objective of the workshop is to help you improve the business by:
Defining the Scope of a Process
Mapping the Process
Defining Process Measures
Setting Process Targets
Analyzing the Process
Improving the Process
Managing the Process
3.
Define
Measures
2.
Map
Process
1.
Define
Process
9. 9 11/3/2011 – v2.0
Business Process Improvement (BPI 7) - Overview
Then the continuous effort of process
improvement begins:
set targets
analyze to see if and how targets are
able to be met
improve the process
manage process performance
Before focusing on process improvements:
define the scope
map the process
define the measures
3.
Define
Measures
2.
Map
Process
1.
Define
Process
10. 10 11/3/2011 – v2.0
Business Process Improvement - Management Involvement
Business process improvement teams need process owner and
management sponsor involvement at at least 5 stages of the BPI 7
Process.
When starting the BPI 7 Process (Step 1)
To gain commitment and ensure resources for process improvement
After the initial process capture (Step 4)
To agree on key performance indicators and targets
After selecting the areas for improvements (Step 5)
To agree the changes to the process (What)
When creating the improvement plans (Step 6)
To agree to and own the improvement plan(s) (How)
When following up on process performance (Step 7)
To ensure continuous improvement as needed
11. 11 11/3/2011 – v2.0
A Method to Achieve
Operational Excellence
Step 1:
DEFINE PROCESS
3.
Define
Measures
2.
Map
Process
1.
Define
Process
Business Process Improvement Methodology
12. 12 11/3/2011 – v2.0
Business Process Improvement - Objectives
By the end of this module, you should be able to:
define the purpose of the process
define its start and end points (scope the process)
identify the customers of the process
identify the output(s) of the process
identify the supplier(s) of the process
identify the input(s) of the process
13. 13 11/3/2011 – v2.0
How to get started ?
Think of coming to work in the morning:
How long does it take you?
Where would you say the starting point for coming to work is?
At what point would you say you had ‘arrived’?
14. 14 11/3/2011 – v2.0
Business Process Improvement – Step 1: Define Process
State the name of the process
State the purpose of the process
Identify a process owner / management sponsor
Scope your process by identifying your starting point and end point
Identify the customer(s) for the process
Identify the output of what you do in the process
Define the requirements of the output
Identify your supplier(s)
Identify the input for the process
Agree your requirements for the input
15. 15 11/3/2011 – v2.0
Step 1: Define Process - Example
PROCESS SCOPE:
Start Point: end-user reports defect or issue
End Point: end user has a satisfactory product
CUSTOMER: external customer (end-user)
OUTPUT: repaired or replaced product
OUTPUT REQUIREMENTS: product in fully working order immediately
SUPPLIER: customer - …
INPUT: defective product or issue - …
INPUT REQUIREMENTS: indication of defect or issue - …
PURPOSE: To resolve customers defect or issue
PROCESS NAME: customer issue resolution process
MANAGEMENT SPONSOR: technical support manager – Tracy Miller
16. 16 11/3/2011 – v2.0
Group Work #1: Business Process Improvement - 1. Step
The Task:
define the current process
On a Flip Chart share:
your reasons for scope
your view of the process purpose
any learning points
any concerns as to how to apply this step
of the method in practice?
20 Minutes
17. 17 11/3/2011 – v2.0
Business Process Improvement - 1. Step Management Review
Ensure that the identified process owner / management sponsor
is the correct person
Brief the owner / sponsor on the work you have completed in
Step 1
Agree how the owner / sponsor wants to be involved in the
project work
Agree on the next management review session (at a minimum
after Step 4)
18. 18 11/3/2011 – v2.0
Business Process Improvement - 1. Step Summary
Defining the scope, as well as the input and output
requirements of a process, is important to ensure a firm
foundation for process improvement
This module has provided you with a standard template for
doing this
The need to brief and involve the process owner /
management sponsor at an early stage
19. 19 11/3/2011 – v2.0
Continuous Process Improvement Methodology
3.
Define
Measures
2.
Map
Process
1.
Define
Process
A Method to Achieve
Operational Excellence
Step 2:
MAP PROCESS
20. 20 11/3/2011 – v2.0
Business Process Improvement - Objectives
To explain the reasons behind ‘process mapping’
To show the link between a process map and a process
scope
To introduce the elements and symbols of a process map
To provide guidelines how to map a process
To give you experience in producing your own process
map
21. 21 11/3/2011 – v2.0
Why to map a Process ?
Provides a common understanding of how the process
operates (activities & sequence)
Provides a common understanding of roles and
responsibilities of each function
Clarifies the interfaces between processes, technology and
people
Helps a team analyze in detail each step in a process
Provides a means for discussing problem areas
Helps to identify improvement opportunities in a way which
considers the overall process
22. 22 11/3/2011 – v2.0
Basic Elements of a Process Map
Main Flow of Process:
Activities: the steps completed in the process
Decision: poses a question and signals either an alternative path or
an inspection point
Connector: Company internal or external connector to another
process
Object Flow: the inputs and outputs which flow from one activity to
another
23. 23 11/3/2011 – v2.0
Basic Process Mapping Symbols
Activity
Flow Direction
Decision
Process Flow Mapping Symbols
Connector
A
Start / End
24. 24 11/3/2011 – v2.0
Additional Process Mapping Symbols
Additional Elements :
Delay Multi-Path Document
Database Inventory
Off-Page
Connector
25. 25 11/3/2011 – v2.0
Process Mapping - Main Flow Example
A Process Map usually flows from left to the right.
Process Map Example
DecisionActivity
Off-Page
Connector
A
Start
Activity End
Word
26. 26 11/3/2011 – v2.0
Process Role & Responsibilities
Roles can be defined as
name of the role (warehouse manager, purchasing, …)
type of the role (A, R, C, I)
The four types of roles are:
A - Authority for the decision
R - Responsible for action
C - Collaborator in development
I - Informed about progress in the process step
27. 27 11/3/2011 – v2.0
Process Swim Lane Diagram
Angelica LA Market GRF Order Management Process – Part I “e-GRF and ABS Work Order Creation”
ServiceCustomerCRM/TM
ServiceCenter
Administration
Stockroom
Page 1
Cx requests
Item
Cx contacts
RSR & RSR
creates GRF
Draft
Cx contacts CRM
& CRM creates
GRF
Approved e-GRF
forwarded to SC
Administration
Cx contacts
Service
Department
Route Supervisor
or Service
Manager creates
e-GRF
e-GRF sent to
Cx for
Approval
Cx returns
approved e-GRF
Approved e-GRF
forwarded to SC
Administration
Review e-GRF and
perform Account
Maintenance /
Creation as
needed.
Create ABS
Work Order
with e-GRF
Request Date
and WO
Creation Date
Add ABS Work
Order # to e-GRF,
return updated e-
GRF to Originator
and forward for
internal
processing.
Receive new ABS
Work Order
e-GRF sent to
Cx for
Approval
28. 28 11/3/2011 – v2.0
Preparation for the Process Mapping
Become familiar with all existing and relevant process documentation
Interview all associates who participate in the process
Interview a sample of associates who perform the same activities or
tasks to fully understand what is really occurring in the process
Compare the way different people do the same job to determine what
the best standard of operation should be
Following completion check map with the people who provided input
29. 29 11/3/2011 – v2.0
Build the Process Hierarchy
Top Level (6 – 12 Activities)
Next level
1. First task
2. Second task
3. Third task
An Activity
Each process can
be broken down
into another level
of detail
There is no limit
to the number
of levels
30. 30 11/3/2011 – v2.0
Process Hierarchy - Example
Training
1. Select interviewers
2. Schedule Interviews
3. Book rooms
etc.
An Activity :
‘Arrange First Interviews’
Each process can
be broken down into
another level of detail
AppraisalInductionRecruit
A People Management Process
31. 31 11/3/2011 – v2.0
How to Build a Process Map - Guidelines
Build the map that is representative of the current process you have defined
in Step 1
Start with the top level of the process and drill-down
At any level keep the number of steps to between 6 and 12
Go down to the level of detail that you know
Remember you can always add more detail later
All activities should be linked with an ‘output’ (object flow)
Think activities - not functions (Prepare …, Document …)
It is a good idea to build the map up using a whiteboard, paper or post-it notes
Use an “Opportunity Log” to record discoveries of improvement opportunities
Use software (PowerPoint, Visio) to support your process mapping
32. 32 11/3/2011 – v2.0
Process Activity Template - SIPOC
Process: Production Line Implementation Responsibility: Plant
Activity: Investment Proposal Creation Authority: Engineering
Inputs Supplier Activities Collabora
tors
Outputs Delivery
Equipment list Global
Eng.
Creating investment
proposal
Investment
proposal
General
Name of the (sub)process,
which this activity belongs to.
Name of this activity.
Inputs, which are needed
to execute the activity.
Suppliers for
the inputs.
Detailed
activities.
Outputs, which are
required from a
successful activity.
Resources,
whose support
and participation
is needed to
successfully
execute the
activity.
Addressees for
the outputs.
Resource, who is
responsible for the
execution of whole
activity.
Resource, who has authority
to accept the result.
Global
Eng. Mgr.
33. 33 11/3/2011 – v2.0
Group Work #2: Business Process Improvement - 2. Step
The Task:
Map your Process
level 1 for entire process
level 2 for one sub-process or process step
On a Flip Chart share:
your process map to the team by walking
through the process
any learning points
any concerns as to how to apply this step of
the methodology in practice
30 Minutes
34. 34 11/3/2011 – v2.0
Business Process Improvement - 2. Step Summary
In order to identify how we are doing things so that we can
improve, it is important to visualize the steps
Visualizing what we do makes it easier for people to learn and
understand
Process mapping provides us with the raw-material required for
process management
If we don’t write down what we do it is impossible to
systematically analyze and improve
We have provided guidelines on how to map a process
36. 36 11/3/2011 – v2.0
Continuous Process Improvement Methodology
3.
Define
Measures
2.
Map
Process
1.
Define
Process
A Method to Achieve
Operational Excellence
Step 3:
DEFINE MEASURE
37. 37 11/3/2011 – v2.0
Business Process Improvement - Objectives
To review measures generally and its role in process
improvement activities
To demonstrate how to develop appropriate and meaningful
measures for a process
To complete an exercise to define measures for your process
38. 38 11/3/2011 – v2.0
Why do you need Measures ?
Measures are a basis for improvement:
Measures allow you to set clear goals and monitor trends
Measures show how effectively you use resources
They provide the input data for identifying sources and analyzing
root causes of errors, allowing you to identify opportunities for
improvement
Measures direct people’s attention:
......... what gets measured gets done.
39. 39 11/3/2011 – v2.0
The Four Dimensions of Process Measures
Process measures should relate to
Time
Cost
Quality
Customer Satisfaction
... and ensure an effective balance between all four dimensions.
40. 40 11/3/2011 – v2.0
How Measures are Often Collected
Easy = often provides poor information
Nice = adjusted to provide good results
Right = difficult to get and often shows poor performance
e.g. Number of calls = easy
Customer opinion = difficult
... and may not be favorable !!!
41. 41 11/3/2011 – v2.0
Functional vs. Cross-Functional Measures
Sales Production DC
Sales Production DC
Measures must reflect a
cross-functional process view
Requirements should come
from the customer and measures
should be aligned to meet those
requirements
Often measurements are based
on functional interests
42. 42 11/3/2011 – v2.0
Measures and Process Hierarchy
Just as your process fits into a wider process at a higher level,
your measures should fit into a higher level of measures also
Measures of your process should be seen as part of the process
hierarchy
For example
the costs of your travel impact upon
the costs of your process impact upon
the profitability of your business unit impact upon
the financial excellence of company
43. 43 11/3/2011 – v2.0
Where to Place Measures
Processes should be measured and controlled at potential
‘bottlenecks’ in a process: i.e. where
the process flow is slowed down
the entire process will not operate any faster than the flow through
this point
Bottlenecks therefore have a significant impact on the overall
process performance
Measures should help predict total process performance
44. 44 11/3/2011 – v2.0
Where to Place Measures - An Example
Organization
CUSTOMER
PRODUCT DELIVERY PROCESS
Product Delivery
ORDER FULFILLMENT PROCESS
“Customer satisfaction in terms
of delivery on time”
“Shipments planned vs. actual”
“Incoming component quality”
Material
45. 45 11/3/2011 – v2.0
What to consider when defining Measures
1. Clarify your objective. Be sure that everyone involved is clear on the purpose of
the measure.
2. Create an operational definition. A good operational definition is very specific and
descriptive, and will produce the same results no matter who is doing the
measure.
3. Design your data collection procedure. For each measure, document the specific
methods that must be used to collect data. The instructions should be so specific
that all individuals following them will use the same process and obtain the same
results.
4. Confirm the validity of your measure. Validity refers to the extent to which a metric
actually measures what it was designed to measure and drives the desired
behavior.
5. Document your definition and process to ensure standardization. It is critical that
your operational definition and data collection procedure be documented so that
the measure is standardized for use throughout the organization.
46. 46 11/3/2011 – v2.0
Group Work #3: Business Process Improvement - 3. Step
20 Minutes
The Task:
indicate on you process map where you
would place your measures
On Flip Chart share:
the requirements of one of your measures
as defined by the template
any learning points
any concerns as to how to apply this step
of the method in practice
47. 47 11/3/2011 – v2.0
Business Process Improvement - 3. Step Summary
Measures are essential to be able to improve
Measures should indicate overall process performance - they must be
based on process not function
The measures should relate to
Time
Cost
Quality
Customer Satisfaction
... and ensure an effective balance between all four.
Measures must be clearly defined, repeatable and valid
Measures must be routinely used by people to improve the process
48. 48 11/3/2011 – v2.0
3.
Define
Measures
2.
Map
Process
1.
Define
Process
Continuous Process Improvement Methodology
A Method to Achieve
Operational Excellence
Step 4:
SET TARGETS
49. 49 11/3/2011 – v2.0
To review the importance of having clear targets
To define ‘targets’ in relation to process improvement
To discuss how to set appropriate targets for improvement
Business Process Improvement - Objectives
50. 50 11/3/2011 – v2.0
Target Setting Definitions
The actual performance of the measure = the current level of
performance
e.g. 75% of deliveries are made on time
Performance standard* = what our level of performance should be
e.g. 100% of deliveries are made on time
Target* = how much should be achieved by when
e.g. 90% of deliveries made on time by 31st December
*These should be agreed with the process owner / management
sponsor based on customer requirements, business requirements,
feasibility, internal or external benchmarking, … .
51. 51 11/3/2011 – v2.0
Why Set Targets?
Without targets we are limited to ‘wishing and hoping’
Without targets we cannot know if we have achieved anything
imagine going on a diet without setting a target ...
Targets are needed to stimulate change - they provide a focus for
improvement of the process
Targets can themselves help people be motivated by visualizing
the end point:
climbing Mount Everest
the four minute mile
flying to the moon – Video Link
52. 52 11/3/2011 – v2.0
Group Work #4: Business Process Improvement - 4. Step
30 Minutes
The Task:
identify targets for your measures
On Flip Chart share:
the actual, standard and target you have
set for the measure defined at stage 4
any learning points
any concerns as to how to apply this step
of the method in practice
53. 53 11/3/2011 – v2.0
Business Process Improvement - 4. Step Management Review
At this stage you should consult the process owner / management
sponsor to review progress
Brief the owner / sponsor on the work you have completed up to
Step 4
Obtain feedback from the sponsor on mapping and possible
performance standards and targets for the measures developed in
Steps 3 and 4
Agree next management review after Step 5
54. 54 11/3/2011 – v2.0
Business Process Improvement - 4. Step Summary
Target setting is an integral part of management - targets drive
the improvement activities!
Targets prevent us from wishing and hoping and help move us
towards action
Targets can inspire others
Targets should reflect customer priorities as well as business
plans
55. 55 11/3/2011 – v2.0
3.
Define
Measures
2.
Map
Process
1.
Define
Process
Continuous Process Improvement Methodology
A Method to Achieve
Operational Excellence
Step 5:
ANALYZE PROCESS
56. 56 11/3/2011 – v2.0
Review why process analysis is essential before improving the
process
Understand areas for process analysis
Use analysis to challenge the current way the process
operates
Select most valuable areas for improvement
Introduce some basic tools for process analysis and
improvement selection
Business Process Improvement - Objectives
57. 57 11/3/2011 – v2.0
Why Process Analysis
To understand in detail how the process operates and where it
might be improved
To understand the process enough so that the impact of change
can be predicted
To understand the basic characteristics of the activities within the
process, such as
Why they are performed?
What contribution they make to the result of the process?
Process improvement is a key factor for
business success.
58. 58 11/3/2011 – v2.0
The Process Model
To get results, should we focus our behavior on the Y or X’s ?
Y = f (X’s)
X1, X2, ..., XN
Input-Process
Independent
Cause
Control
Y
Output
Dependent
Effect
Monitor
59. 59 11/3/2011 – v2.0
Areas of Process Analysis
OUTPUTINPUT
People Issues
Technology Issues
People
• Skills
• Attitudes
• Values
Organization
• Roles
• Responsibilities
Technology
• Supporting technology
• Technological fit
Process Flow
• Process map
• Activity links
• Process measure
Process Issues
ACTUAL PROCESS
60. 60 11/3/2011 – v2.0
Process Issues - Part 1
Analyze process performance in terms of measures
time - can the process be done quicker?
cost - how well are the resources used?
quality - how well are requirements met?
customer satisfaction - how well are outputs satisfying the
customer?
Gain understanding of interfaces (inputs & outputs) to other
processes to assess the impact of improvement
61. 61 11/3/2011 – v2.0
Process Issues - Part 2
Identify those areas (activities) of the process that are the most
appropriate for improvement
Minimize waiting times (bottlenecks)
Minimize non-value-adding activities
Improve value-adding activities
Rework should not be built into a process - redoing work is non-
value-adding
Consider if all the activities need to be performed or could be
combined
Evaluate if some activities can be performed in parallel
62. 62 11/3/2011 – v2.0
People Issues
Do people have adequate skills/competencies to perform the activities?
What level of personnel development would be required to improve
performance?
Does individual performance targets fit with the process performance
targets?
e.g. does sales targets fit with customer satisfaction targets?
Could fewer resources be used to perform the activities - what are the
implications?
Roles - do people understand their contribution to the overall process?
Are responsibilities clearly defined?
Are all functions really need to perform the process effectively?
63. 63 11/3/2011 – v2.0
Technology Issues
Does the technology support the process?
Does the technology support only parts of the process?
If different systems - can they talk to each other?
Does the system provide the right measures?
Is this the most appropriate technology for the process?
Are systems duplicating data?
Can IT solutions be reused for similar processes?
Could activities be automated to improve process quality and/or
efficiency?
64. 64 11/3/2011 – v2.0
Tools for Process Analysis
Process Walkthrough
Activity Assessment Review
(see attached worksheet)
Value-add vs. Non-value-add
Activities
Brainstorming
Why-Why Analysis
Cause-and-Effect or Ishikawa
Diagram
Affinity Diagram
Interrelationship Diagram
Mistake Proofing & Poka-Yoke
Double Team & Multi-Voting
Impact – Effort Matrix
Solution Selection Table
…
65. 65 11/3/2011 – v2.0
Activity Assessment Review
See attached Activity Assessment Worksheet for details
Bureaucracy
Duplication
Value-added
Simplification
Automation and Mechanization
Process Cycle Time
Error Proofing
Upgrading
Language
Standardization
Supplier Relations
Big Picture Improvements
66. 66 11/3/2011 – v2.0
Process Walkthrough
Hang your process maps on the wall
Start from the start point of the process
Go through each activity in turn to see if:
the sequence of activities is logical
activities can be reassigned to gain greater efficiency
there are any duplications
activities can be done earlier if at all
all the roles are necessary
systems are relevant for the process
Challenge hard any rework
Angelica LA Market GRF Order Management Process – Part I “e-GRF and ABS Work Order Creation”
ServiceCustomerCRM/TM
ServiceCenter
Administration
Stockroom
Page 1
Cx requests
Item
Cx contacts
RSR & RSR
creates GRF
Draft
Cx contacts CRM
& CRM creates
GRF
Approved e-GRF
forwarded to SC
Administration
Cx contacts
Service
Department
Route Supervisor
or Service
Manager creates
e-GRF
e-GRF sent to
Cx for
Approval
Cx returns
approved e-GRF
Approved e-GRF
forwarded to SC
Administration
Review e-GRF and
perform Account
Maintenance /
Creation as
needed.
Create ABS
Work Order
with e-GRF
Request Date
and WO
Creation Date
Add ABS Work
Order # to e-GRF,
return updated e-
GRF to Originator
and forward for
internal
processing.
Receive new ABS
Work Order
e-GRF sent to
Cx for
Approval
67. 67 11/3/2011 – v2.0
Value-Add Activities vs. Non-Value-Add Activities
A value-add activity
Contributes to satisfying customer requirements
Is required to produce the overall output of a process
Customer is ready to pay for the activity
A non-value-add activity
Does not contribute to satisfying customer requirements
Not required to produce the overall output of a process,
however, required by regulation, directive, or instruction
68. 68 11/3/2011 – v2.0
Why - Why Analysis
Challenge the current way the process operates by asking the
question “why” about each activity:
Why perform the current activity?
Why perform it in the current manner or order?
Why does it need to be performed by this function?
Why does it cost so much to perform the activity?
Why does it take so long to perform the activity?
Why can be not automate the activity?
…
70. 70 11/3/2011 – v2.0
Brainstorming
Brainstorming is used to generate a large number of ideas in a short
period of time.
Step 1: Review the topic or problem to be discussed. Make sure the
entire team understands the subject of the brainstorm. Clarify if you are
looking for potential root causes or possible solutions.
Step 2: Allow a couple of minutes for everyone to think about the task
and write down some ideas.
Step 3: Invite the team members to call out their ideas, randomly or in
turns around the table. Make sure that the team builds upon each others
ideas (1 + 1 = 3), but do not allow discussions or evaluations.
Step 4: Record all ideas, e.g. on post-its, and stick them on a flip chart
visible to everyone.
Step 5: Continue with Step 3 and 4 until several minutes silence
produces no more.
71. 71 11/3/2011 – v2.0
Cause-and-Effect or Ishikawa Diagram
Cause-and-Effect or Ishikawa Diagram is a systematic way of looking at the
causes and effects of the problem and how they are related. It organizes large
numbers of ideas into pre-defined categories, e.g. 4Ms & 1 E or 4 Ps.
4M’s = MEN
METHODS
MATERIALS
MACHINES
+ ENVIRONMENT
4P’s = PEOPLE
PRODUCT
PRICE
PROMOTION
Effect or
Outcome
Machines
Materials Methods
Environment
Trunk
Primary Causal Factor
Main Branch
Minor Branch
Second-Level
Causal Factors
Men
Problem Statement
(of identified GAP)
72. 72 11/3/2011 – v2.0
How to use the Cause-and-Effect Diagram
Decide/define the Effect or Gap to be analyzed
Draw a horizontal line (the backbone of the fish) and to the right end
of this write the effect (= fish’s head)
Brainstorm for all possible causes
Group the causes under main headings (min. 2, max. 6)
Put the main headings at the end of the major “side” bones
Add other causes to smaller “off shoots” from the major bones
Check that the diagram is complete and logical
73. 73 11/3/2011 – v2.0
Why - Why Diagram
The Why–Why diagram can be used to uncover multiple causes of a problem,
until fundamental and actionable root causes are revealed. In addition, the
diagram helps the team to recognize the broad network of problem causes and
the relationship among these causes. It can indicate the best areas to address
for short- and long-term solutions.`
Problem Statement
(of identified GAP)
Apparent
cause
Root
cause
Apparent
cause
Apparent
cause
Root
cause
Why ? Why ? Why ?
74. 74 11/3/2011 – v2.0
How to use the Why - Why diagram
Step 1: Write the problem/GAP statement down on paper and present it to
other team members. Remember that it is the effect that needs to be analyzed
- make sure it is clearly defined and understood.
Step 2: Ask "Why ?" this problem does or could occur. List all these causes on
notes and place them in a column immediately to the right of the problem
statement.
Step 3: Each of the cause statements now become a new problem statement.
Again ask "Why ?". Sometimes the question needs to be phrased, "Why does
this situation causes the problem?". Create another column of cause
statements. Show the relationships to the first column with arrows.
Step 4: Continue to turn each causes into a problem and ask "Why ?". Do not
stop until you reach an answer that is fundamental and actionable (procedure,
system, communication, training needs, and so forth).
75. 75 11/3/2011 – v2.0
Affinity Diagram
An Affinity Diagram organizes large numbers of
ideas into their natural relationship and taps the
team’s creativity and intuition.
Step 1: Record the problem statement on a
separate Post-It note and place it on a flip
chart.
Step 2: Record each idea on a separate Post-It
note and stick it to on a flip chart.
Step 3: Look for ideas that seem to be related
and place then side by side, until all ideas are
grouped. Very important is that no one talk
during this exercise.
Step 4: Select a heading for each group and
write it on a separate Post-It note. Ensure that
every idea in a group aligns with the heading.
Make final adjustment if necessary. You can
talk during this step.
User demand is
more
sophisticated
and diverse
Quality is
becoming
globalized
Non-user
friendly
products are
unacceptable
Need for
providing
complete
service
Unreliability in
products is not
tolerated
TQM-aware
customers are
becoming
common
Demand for
high- quality,
low- cost goods
increasing
Technology is
no longer
“awe-inspiring”
Brand-
awareness does
not guarantee
customer loyalty
Market
different-
tiation is
becoming less
of an issue
Individual custom-
ization is
becoming
more of an issue
Need for
meeting all
requirements is
severe
Happy to pass
on good
product/ service
stories
Instant, intuitive
usability
becoming
requirement
Local service
must be available
immediately
Replacement
parts/ product
expected within
24 hours
Easily
contacted by
telephone or
fax
Extended
warranty
expected
Questions
answered
quickly and
correctly
Complete
customer
education/in for-
mation provided
Happier to pass
on poor
product/ service
stories
Low-tolerance
for inadequate
service; likely to
return prod
76. 76 11/3/2011 – v2.0
Interrelationships Diagram
The interrelationship diagram is used
when the relationships among the effects
and the causes, or the objectives and the
methods, are complex and involved.
Step 1: Place all ideas in a circle on a flip
chart.
Step 2: For each idea, ask “Does this
idea cause or influence any other idea?”.
Draw arrows from each idea to the ones
it causes or influences.
Step 3: Analyze the diagram by counting
how many arrows in and out each idea
has. Note the number of incoming and
outgoing arrows for each idea “in/out”.
Step 4: Note which ideas have primarily
outgoing arrows. These are the basic
causes that need to be addressed to
resolve the problem statement.
3/3
5/0
2/1
5/1
0/5
1/3
2/2
0/5
3/1
Rejection of the
Statistical Thinking
Method
Lack of motivation
to change
Lack of support for
implementation
Lack of consensus
around the right
measurement indices
Data are not
easily accessible
Misunderstanding of
Statistical Thinking
Paradigm
Lack of
Statistical Thinking
Paradigm
Fear of technical
tools and methods
People have
competing
priorities
77. 77 11/3/2011 – v2.0
Mistake-Proofing & Poka-Yoke
Human Errors are usually inadvertent
Poka (= inadvertent error) - Yoke (= avoid)
devices help us avoid defects, even when inadvertent errors are made.
Poka - Yoke help build Quality into Processes
1. Build quality into processes.
2. All inadvertent errors and defects can be eliminated.
3. Stop doing it wrong and start doing it right.
4. Don’t think up excuses, think about how to do it right.
5. A 60 % chance of success is good enough implement your idea now.
6. Mistakes and defects can be reduced to zero when everyone works together to
eliminate them.
7. Ten heads are better than one.
8. Seek out the true causes, using 5 W’s and other Root Cause Analysis tools.
78. 78 11/3/2011 – v2.0
Mistake-Proofing - Five Mistake-Proofing Methods
Variation Control
Use of special jigs, fixtures, or assembly tools that reduce the variation of how parts
are assembled.
Workplace Organization
Error prevention by proper organization of the workplace or work station;
implementation of a 5S Visual Workplace Program.
Identification
Errors are prevented by use of clearly written and easily available materials,
procedures, and tools.
Process Checks
Performance of specific in-process checks to prevent errors.
Poka - Yoke Devices
Ensures errors cannot become defects by automatically detecting error conditions and
immediately rejecting the part or shutting down the process. Poka-Yoke devices work
best when a specific step must be taken to re-start the process once a defect has
been detected.
80. 80 11/3/2011 – v2.0
Solution Selection - Double Team Decision Making
3 - 5 Suggestions 3 - 5 Suggestions
Board
Three Suggestions from
the 1. Double Team
Three Suggestions from
the 2. Double Team
3 - 5 Suggestions 3 - 5 Suggestions
1 2 3
4 5 6
|||| || ||||
| |||| | |||
Selection of the
2-3 most voted
solutions
5 3 1
81. 81 11/3/2011 – v2.0
How to perform a Double Team Exercise
1. Present the problem/gap Team Leader ~ 2 min
2. Create ideas (3-5 ideas per person) All Individually ~ 10 min
3. Discussion and ideas in double teams Double Teams ~ 15 min
choose the 3 best ideas
hang on the wall
4. Present to other teams Double Teams ~ 5 min
no discussion
5. Place solutions into groups Team ~ 5 min
6. Voting All Individually ~ 5 min
choose the best solutions
5 votes per person
max 2 votes per solution
max 1 vote per own solution
7. Counting the votes Team Leader ~ 5 min
8. Choose the solution Team ~ 2 min
Double team (“2&2”) is a team working technique which ensures everybody’s
contribution in creating ideas.
82. 82 11/3/2011 – v2.0
IMPACT
EFFORT
High
Medium
Low
HighMediumLow
These opportunities are
usually good candidates
for the 1st Phase
These opportunities are usually
good candidates for the 2nd
Phase
These opportunities may require
additional analysis to see if they
are worthwhile
QuickHits–JustDoIt
Impact – Effort Matrix
83. 83 11/3/2011 – v2.0
Solution Selection Table
SOLUTION # 1
SOLUTION # 2
SOLUTION # 3
SOLUTION # 4
Effectiveness Cost Time Resources avail.
70 %
90 %
50 %
65 %
20 000
52 000
24 000
18 000
14
5
12
15
Yes
Partly
No
Yes
Resource Availability Yes = enough resources (own)
Partly = not enough own resources, but more
available in the organization
No = no resources available in the organization
Time in Weeks
Costs in Local Currency
84. 84 11/3/2011 – v2.0
Group Work #5: Business Process Improvement - 5. Step
30 Minutes
The Task:
analyze your process using two or three
specific tools
identify and select 2-3 major improvement
opportunities for your process
On Flip Chart share:
your improvement opportunities
any learning points
any concerns as to how to apply this step of
the method in practice?
85. 85 11/3/2011 – v2.0
Business Process Improvement - 5. Step Management Review
Introduce the results of the process analysis to the process
owner / management sponsor
Agree the most beneficial improvement options with the owner /
sponsor
Gain commitment to the improvements
Agree next management review at Step 6
86. 86 11/3/2011 – v2.0
Business Process Improvement - 5. Step Summary
Process Analysis allows us to
challenge the current way the process operates
gain the knowledge required to consider any improvement
select the most beneficial improvement options
Three areas of process analysis are
process issues (activities)
people issues
technology issues
A large set of tools, techniques and software can be used to support
process analysis.
90. 90 11/3/2011 – v2.0
Continuous Process Improvement Methodology
3.
Define
Measures
2.
Map
Process
1.
Define
Process
A Method to Achieve
Operational Excellence
Step 6:
IMPROVE PROCESS
91. 91 11/3/2011 – v2.0
The purpose of this module is to:
Make you aware of the issues associated with change
Provide you with a simple method for planning and
implementing the improvements
Give you guidance on how to deal with problems
Introduce the change sheet tool
Business Process Improvement - Objectives
92. 92 11/3/2011 – v2.0
Change Management
Improving processes is very likely to affect the way people
work by
changing the process flow
eliminating non-value-adding activities
People tend to resist change because of the fear of
unclear future
having to learn new things
Therefore, it is important to plan for change.
93. 93 11/3/2011 – v2.0
Group Work #6: Change Management
15 Minutes
The Task:
consider a major change that has
happened to you
how did this change feel to you?
On Flip Chart share:
the positive and the negative reactions to
the change
94. 94 11/3/2011 – v2.0
The Cycle of Change
Outward looking
Inward looking
Future
opportunities
Past
problems
Denial
Resistance Exploration
Commitment
People in the denial
stage are trying to
avoid dealing with the
fear and uncertainty of
prospective change.
They are hoping they
won't have to adapt.
When people can no
longer deny that
something is or has
happened, they tend to
move into a state of
anger, accompanied by
covert and/or over
resistance.
This is the stage where people
have stopped denying, and
while they may be somewhat
angry, the anger has moved out
of the spotlight. They have a
better understanding of the
meaning of the change and are
more willing to explore further,
and to accept the change.
This is the payoff stage,
where people commit to
the change, and are
willing to work towards
making it succeed. They
know it is a reality, and at
this point people have
adapted sufficiently to
make it work.
95. 95 11/3/2011 – v2.0
KEEP IN MIND THAT …
The only person who likes change is a WET BABY.
96. 96 11/3/2011 – v2.0
The Change Sheet
•PLAN
•DO
•CHECK
•ACT
•REVIEW
A tool to help teams plan and implement the selected improvements
97. 97 11/3/2011 – v2.0
Areas of Planning
Remember that every improvement has potential impact in
three main areas:
the process itself
the people related to the process and the improvement
The technology which supports the process
Plan for the impact in these areas and create implementation
plans for these too.
98. 98 11/3/2011 – v2.0
Planning for Improvement
Section 1 THE REQUIRED CHANGE
Single change objective
Why the change?
Expected benefits
Key policies
Section 2 THE FUTURE SCENE
‘Look and feel’ when successfully implemented
1 - 4
99. 99 11/3/2011 – v2.0
Planning for Improvement
Section 3 PEOPLE AFFECTED
Who are they?
What’s in it for them?
Expected reaction to the change
Section 4 ENABLING THE CHANGE
Who is in the change team
Their roles
Their responsibilities
Impact on other systems and processes
Other resources required
1 - 4
100. 100 11/3/2011 – v2.0
Plan
Section 5 PLANNING THE CHANGE
THE PLAN
Tasks and deliverables
Responsibilities
Outline timescales
RISKS related to …
Time
Cost
Quality
Process
People
5
101. 101 11/3/2011 – v2.0
Do
Section 6 AWARENESS AND TESTING
Implementing the process improvements for
pilot and testing
Gain user commitment
Determine the measures of success
Pilot and test
6
102. 102 11/3/2011 – v2.0
Check
Section 7 THE RESULTS OF THE CHANGE
Did the awareness and testing come out as
planned?
Check the results against measures of success
Revisit previous sections in the change sheet
New actions?
7
103. 103 11/3/2011 – v2.0
Act
Section 8 MODIFY THE PLAN AND COMPLETE
THE CHANGE
How are you measuring and reviewing progress
in the implementation of improvements?
How do you deal with problems and changes?
How are you training people?
Any new actions?
8
104. 104 11/3/2011 – v2.0
Review
Section 9 THE IMPACT OF THE CHANGE
Was the implementation of improvements
successful and effective?
Were the benefits gained?
What lessons did you learn?
What recommendations would you make for
future improvement projects?
9
105. 105 11/3/2011 – v2.0
Dealing with Problems
The Ten Point Recovery Plan (1/2)
Require Compliance
Requiring from people what they agreed to do and pointing out the impact their
lack of delivery will have on others
Recover
Re-examine budgets and schedules to see if savings can be made later in the
project
Narrow Scope
Eliminate non-essential elements (the ‘wants’?)
Deploy More Resources
Increase the number of people/machines etc.. Need to balance the increased cost
against the importance of the deadline
Accept Substitution
If something is not available or too expensive. Need to balance against other
project requirements
106. 106 11/3/2011 – v2.0
Dealing with Problems
The Ten Point Recovery Plan (2/2)
Seek Alternative Sources
When a supplier cannot deliver within budget, schedule and quality
specifications
Accept Partial Delivery
If the full amount can be delivered at a later stage
Offer Incentives
For meeting time, cost and quality requirements if the going gets tough
Escalate
Put a case to senior management if the blockages become too severe
Renegotiate/change the project requirements
Discuss with the client the possibility of increasing the budget, extending the
deadline or relaxing some other requirement
107. 107 11/3/2011 – v2.0
Stakeholder Analysis Matrix
How Do You Make a Stakeholder Analysis
Matrix?
Step 1: Begin by making a list of anyone whom
has interest or influence over the activity, project
or initiative.
Step 2: Draw a box divided into four equal
quadrants. Make sure you create this box large
enough to fit in the various stakeholders when it
is the appropriate time. Divide each quadrant
into fourths again. You should now have sixteen
quadrants.
Step 3: Label down the left side starting at the top with “Significant Importance,” “Some Importance,” “Little
Importance,” “No Importance.”
Step 4: Label across the top starting at the left with “Significant influence,” “Some influence,” “little influence,”
“No influence.”
Step 5: Begin to organize your stakeholders according to importance and influence.
Step 6: When you are done with step 5, your matrix will be a graphic display of who holds the most
importance and influence (the group in the upper left-hand corner) and who holds the least amount of
influence and importance (the group in the lower right-hand corner). Those in the high importance/influence
category will be the first ones to consult since they carry a heavy weight in the direction of the project.
108. 108 11/3/2011 – v2.0
Force Field Analysis
Step 1: Define your current situation.
Step 2: Define where you want to be, what you want to achieve and/or
what the situation would be like if there was not the problem you are trying
to solve.
Step 3: Identify the forces -[either helping - (positive) or hindering -
(negative)] you see on your way from the current situation to the future
state.
Record only existing forces, not planned
Step 4: Identify the relative strength of the helping and the hindering forces.
Step 5: Identify your action areas to help you use the forces around you.
109. 109 11/3/2011 – v2.0
Example to Force Field Analysis
Current Situation
Production Culture
Future Situation
Customer Culture
Helping Forces Hindering Forces
Competitors actions
Customer Demands
Marketing skills
Advertising Agencies
History of the company
Management Incentives
Budget process
110. 110 11/3/2011 – v2.0
Action Planning
Divide solution(s) into actions.
Assign responsibilities.
Create a schedule.
Measure: Time
Quality
Cost
Time (25% improvement)
Quality (50% reduction
in expenses of quality
failures)
Cost (20%
productivity
improvement)
WHO?
WHEN?
WHAT?
111. 111 11/3/2011 – v2.0
Team Identification:
Team Members:
Team Location:
Present Situation: Desired State:
Challenges/Problems:
Priorities: Problem Statement:
Objectives: Strategy/Project Action Items/Targets
Process Owner:
Date Updated:
Next Review:
Owner
Action Plan Template
112. 112 11/3/2011 – v2.0
Improvement Objective:
Team Identification:
Team Members:
Process Owner:
Date Updated:
Next Review:
Action
Items
Item
Owner
Schedule and Milestones (Plan vs. Actual) Performance
Target ActualMMYR MMYR MMYR MMYR MMYR MMYR MMYR MMYR MMYR MMYR MMYR MMYR
Comments or observations:
Implementation Plan Template
113. 113 11/3/2011 – v2.0
Group Work #7: Business Process Improvement - 6. Step
30 Minutes
The Task:
complete the first two sections
the required change
the future scene
in the change sheet to plan for your process
improvement
On Flip Chart share:
any learning points
any concerns as to how to apply this step of the
method in practice?
114. 114 11/3/2011 – v2.0
Business Process Improvement - 6. Step Management Review
Owner/sponsor commitment is particularly important at this
phase, since improving a process is likely to
change the way the process operates
have on impact on people’s work
have an impact on other processes
Make sure that the process owner/management sponsor fully
agrees to the improvement plans
115. 115 11/3/2011 – v2.0
Business Process Improvement - 6. Step Summary
Improving a process has potential impact on three areas:
the process itself
the people working with the process
the technology supporting the process
Therefore, it is important to
be aware of the issues associated with change
plan for improvements
agree improvements with the process owner / management sponsor
A simple method - the change sheet tool - helps you to plan and
implement the improvements
116. 116 11/3/2011 – v2.0
3.
Define
Measures
2.
Map
Process
1.
Define
Process
Continuous Process Improvement Methodology
A Method to Achieve
Operational Excellence
Step 7:
MANAGE PROCESS
117. 117 11/3/2011 – v2.0
The purpose of this module is to:
To discuss how to follow up process performance
To discuss how to relate BPI 7 business process
improvement to routine management
To discuss how to maintain the benefits and ensure
continuous improvement by repeating the BPI 7 business
process improvement process
Business Process Improvement - Objectives
118. 118 11/3/2011 – v2.0
BPI 7 and Continuous Improvement
BPI 7 is a continuous process improvement methodology
BPI 7 does not stop after completing the first round of the BPI 7 cycle
To ensure that BPI 7 continues to be an effective improvement
tool, BPI 7 teams should:
identify the points of conflict with other teams and resolve them
identify which management teams should support the review of
process performance
identify any other barriers to ongoing improvement
119. 119 11/3/2011 – v2.0
BPI 7 and Routine Management
The BPI 7 process should be integrated into routine
management in order to
ensure follow up of process performance
allow the process owner to fulfill his/her responsibilities in a
systematic way
To manage process performance it needs to be clearly defined
what is to be managed
by whom
at what frequency e.g. daily, weekly, monthly
how performance data should be reported
120. 120 11/3/2011 – v2.0
Checklist for Managing BPI 7
Ensure you have:
Process Name
Process Owner / Management Sponsor
Process Performance Measures
Managed by:
‘XYZ Team - whose members are
Who meet every .....
And use the following performance data.....’
121. 121 11/3/2011 – v2.0
The Management Team
Consider involving the following people:
A customer(s)
A supplier(s)
A representative of other critical interface processes
Somebody not involved in the process
Process owner / management sponsor
A facilitator (if not the process owner)
Budget holder (may be the process owner)
Information Systems expert
Human Resources expert
122. 122 11/3/2011 – v2.0
Considerations at Management Team Meetings
What issues are there that are effecting performance of the
process?
Is the process meeting its Time, Cost, Quality and Customer
Satisfaction targets?
What action do we need to make sure that the process meets
its targets?
Do we need to revise our targets?
How are our improvement plans progressing?
What support do we need to provide to process teams?
123. 123 11/3/2011 – v2.0
Repeating BPI 7
It is anticipated that the routine improvement - steps 4 to 7 - will go on
throughout the year
BPI 7 will be repeated in full when process performance circumstances
require: for example,
where there is a substantial change in the process
where customer requirements change
where supplier performance changes
The team managing the process, led by the process owner/ management
sponsor, is responsible for taking appropriate action using BPI 7
Define
Process
Map
Process
Define
Measures
Set
Targets
Analyze
Process
Improve
Process
Manage
Process
Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7
124. 124 11/3/2011 – v2.0
Group Work #8: Business Process Improvement - 7. Step
20 Minutes
The Task:
complete the Manage Process worksheet
On Flip Chart share:
any learning points
any concerns as to how to apply this step of
the method in practice?
125. 125 11/3/2011 – v2.0
Business Process Improvement - 7. Step Summary
BPI 7 is a continuous process improvement methodology
it does not stop after completing the first round of the BPI 7 loop
it needs to be repeated
it should be integrated into routine management
The management team defines who, when and with what data to
follow up process improvement - other information comes from earlier
steps
126. 126 11/3/2011 – v2.0
REMEMBER …
The FIRST STEP is always the HARDEST.
127. 127 11/3/2011 – v2.0
Business Process Improvement
The End …
“Perfection is not attainable, but if we chase perfection we can catch
excellence.” - Vince Lombardi
128. 128
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