Business Process Management System

Table Of Contents
What is BPMS The Methodology The BPMS Team

The nine step approach includes: 1. Create Process Mission 2. Document Process 3. Document Customer & Process requirements 4. Identify Output & Process Measures 5. Build process management system 6. Establish data collection plan 7. Process performance monitoring 8. Develop dashboards with spec limits & targets 9. Identify improvement opportunities

2

What is BPMS

Why BPMS
Stages of Maturity of Process
Optimized Managed Defined Repeatable Chaotic BPMS
Initial Stage of Organization Six Sigma Organization

DMAIC , DFSS

Defining Accountability
4

Business Process Management System ( BPMS )

BPMS : What Does It Mean ?

IS NOT

IS

• Ongoing Accountability for • Just a set of Dashboards • Just a set of Process Maps Managing the process • Involves use of Structured Methodology & Continuous Revision

Generate Dashboards using a structured methodology which has nine steps so that you measure the right thing and also update it on an ongoing basis as customer’s requirements keep on changing with time.

5

What is BPMS

Methodology that enables organization to look at processes from the Customers point of view Methodology that brings processes, people and information together Enables a team to look at processes horizontally instead of vertically Enables companies to model, deploy and manage mission-critical business processes, that span multiple enterprise applications, corporate departments BPMS is usually used to make processes Repeatable & Reliable.

6

Four Components Of A Process Management System
1. PM Team Organized Around A Process (Core, Enabling), With Clear Process Goals / Performance Expectations

S U P P L I E R

I N P U T S

C U S T O M E R

L O Y A L T Y

7

2. Process Management Chart
Process Name:
Process Map
Departments Dealer Application Entry Credit Document Preparation Legal Lessee

Process Owner:
Monitoring Measures
(Process Measures Except Where Noted)

Date:
Response Plan Immediate Control/Fix Process Improvement

Standard, Spec. Or Target

Data Collection Method

8

3. Process Review Procedures

Process Dashboard
Avg. # Handoff % Accurate

Control Chart Current Normalized Yield – FP 4.1 % 92 4.2 80 4.3 99 4.4 73 4.5 96 90%
0% 100%

A

B

C

D

E

Call Type Yield Trends For Core Process 4.0
Normalized RTP First Pass 1st Qtr 2nd 3rd Qtr Qtr 4th Qtr

PM Team

9

4. Aligned Accountability And Commitment-Reinforcing Practices

Process
Team Performanc e

Partnership Bonus

Targets

Outcome s

Customer Satisfaction Recognition

& Goals

10

Looking at a process Horizontally

Sales

Service Delivery

CC

Billing

11

BPMS Methodology

BPMS Methodology

Step No

Step Description

1 2 3 4

Create Process Mission Document Process Document Customer & Process requirements Identify Output & Process Measures

Step Explanation State the objectives of Process Mapping Map the As-Is Process Identify Customer and Document their Requirements Identify process outputs and check if it meets customers requirements

Step 1 - 5 : Infrastructure ,Step 6 : Implementation ,Step 7 - 9 : Execution 2 weeks 4 - 8 weeks Continuous Process

13

BPMS Methodology

Step No

Step Description

5 Build process management system 6 Establish data collection plan 7 Process performance monitoring 8 Develop dashboards with spec limits & targets 9 Identify improvement opportunities

Step Explanation Build System for Managing the Process Plan for Data Collection Collect Data and Monitor Process Measured Prepare Process Dashboards Do Gap Analysis

Step 1 - 5 : Infrastructure ,Step 6 : Implementation ,Step 7 - 9 : Execution 2 weeks 4 - 8 weeks Continuous Process
14

PDCA Cycle

Check and Act Step7: Process Performance Monitoring Step8: Dashboards Step9: Improvement Opportunities

Plan Step1: Process Mission Step 2: Document Process Step3: Customer Requirements Step4: Process Measures Step5: Process mgmt system

Do Step6: Data Collection

15

BPMS Team

BPMS Team

 Champion  Process

Owner  Black Belt or Green belt  SME (Subject Matter Expert)  Team Members

17

BPMS Team

Receive Complaint

Log Complaint

Assign Complaint

Resolve Complaint

Inform Customer

Process Operators Process Owners Process Champions

18

BPMS Team

 How

to Select Team Members

 

The BPMS team should have at least one member from the departments that the process flows A BB/GB is a project leader A SME is on call. He is called to clarify technical points

19

Step1: Create Process Mission

Why A Process Mission?

A Process Mission Provides Purpose And Goals For A PM Team , keeps the PM Team focussed , clarifies what’s expected of the team
21

BPMS Methodology Step 1: Create Process Mission

The Steps involved in creating Process Mission are Process Purpose Process Importance Process Boundaries Process Goals Process Scope

22

BPMS Methodology Step 1: Create Process Mission

Process

Purpose

The objectives of the process needs to be clearly defined with respect to what it intends to achieve

For Example
The purpose of complaint handling process is to effectively resolve customer complaints. It is also intended that the complaints be analyzed so that complaints do not re-occur. The ratio of complaints to the number of customers should show a downward trend over a period of time

23

BPMS Methodology Step 1: Create Process Mission

Process

Purpose cont…

Pitfalls
Do not mention the purpose of the BPMS, but clearly define what the process for which the BPMS is created is expected to do.

For Example
The purpose of complaint handling process is to effectively document the process of handling customer complaints and to capture complaint data.

24

BPMS Methodology Step 1: Create Process Mission

 Process

Importance

mention how the process will go about satisfying the customer Customer here signifies External Customer Internal Customers. For Example
The customer handling process is important as it tries to reduce customer dissatisfaction. It also is an effective feedback mechanism to other customer handling process.

Clearly

25

BPMS Methodology Step 1: Create Process Mission

Process Boundaries
While

preparing the process it is essential to understand the start and end of the process. This enables in the correct selection of the process team Ensure that the process goals are capable of being met with the process boundaries For Example
The customer handling process starts when a complaint is received from the customer and ends when a call is made back to the customer informing him of resolution

26

BPMS Methodology Step 1: Create Process Mission

Process Boundaries

Start

Process

End

Customer Calls

Complaint Handling Process

Call to Customer Informing him of Resolution

27

BPMS Methodology Step 1: Create Process Mission

Process Goals
We

identify the measures that would tell us if the process is meeting its objectives Process Goals can be in four categories  Customer Goals  Financial Goals  Process Goals  Learning and Innovation Goals For Example
The goal of customer handling process is to ensure that the percentage of complaints should be less than 5%. The complaint handling process also ensures that the repeat complaints from customers is less than 10%
28

BPMS Methodology Step 1: Create Process Mission

 Process

Scope

Clearly State what areas are covered by the Process  Also State what areas are left out by the process For Example
Scope of Customer handling Process In-Scope Includes all types of complaints related to mobile services in Bangalore Out-Scope Excludes complaints out of Bangalore

29

Process Mission Goal Categories
Customer/Client Effective Resolution of Complaints Faster Resolution of Complaints Financial

Process Reduction in % of Complaints Reduction in % of Repeat Complaints

Capabilities/Learning/Innova tion

30

Preliminary Process Goals
Possible Goal Categories For Processes – Components For A Balanced Process Dashboard Customer
® Customer Satisfaction And Value Perceptions ® Customer Retention, References ® New Customers Acquired ® Competitive Positioning

Financial
® ® ® ® Sales Net Income ROI/ROA Cost-Per-Unit Processed

Process
® Effectiveness ® CTQs Or Defect Occurence ® Timeliness/Speed ® Reliability/Accuracy ® Convenience ® Treatment/Interaction ® Tangibles ® Failure Recovery ® Efficiency

Learning/Innovation/People/
® New Products ® Competencies Acquired ® Continuous Learning & Transfer of Best practices ® Job Satisfaction ® Training

31

Process Mission
Purpose

Effective designing of training programs to enhance performance improvement . Improve employee skill sets. Enhance operational performance. Contribute to employee retention and loyalty Starts with: Identification of Performance Needs Ends with: Measuring Training Effectiveness Enhance Employee Performance Effective Training Delivery Optimize training costs Better Administration of Training Programs Supervisory and Management Training, Voice and Accent Training (Pre-Process and On Floor) Process Training
32

Importance

 

Boundaries

  

Process Goals

   

Process Includes Process Excludes

Step2:Document Process

What Is A Process ?

A PROCESS IS A SERIES OF LINKED ACTIVITIES WITH CLEAR START AND FINISH AND A DEFINED RESULT OR OUTPUT
Recruitment Process : Starts with getting Requisition by E-mail from Operations . This triggers the process. Ends with right candidate on board . Linked Activities are : CV sifting , Preparation for interview, Conduct interview , Rating, Database updating etc.

34

Why Mapping ?

Process Mapping is essential to understand the Steps, Events, And Operations That Constitute A Process

35

Process Mapping Symbols
Arrow: Indicates the flow from one activity to another. Oval. Ovals indicate both the starting point and the ending point of the process steps. Box. A box represents an individual step or activity in the process.

Triangle. A triangle shows where an in-process measurement occurs.

Circle. A circle indicates that a particular step is connected to another page.

Diamond. A diamond shows a decision point, such as yes/no or go/no-go.
36

Define the Process : Use SIPOC
Elements that both influence & contribute to the Process

Requirements Boundary

Requirements Boundary

Requirements

S
Suppliers

I
Inputs

P
Process

O
Outputs

C
Customers

Measures

Measures

Process Map
37

Process Deployment Flowcharting
1. Identify participants of process from start point. List final customer first to stop

2. Identify “trigger” or initial step and identify “final” step

3. Identify who receives the output of the initial step and what activity they perform

4. Repeat by identifying who receives output from second step and what activity they perform

5. Continue identifying steps and align vertically with participants
38

Example Of Deployment Flowcharting :
Employee Manager Delete Process specific ID Submit Resignation

Exit Management Example Of Deployment Flowcharting
Receive completed no dues

Business HR

Advise Payroll to stop Salary Payment Conducts Exit Interview Formalities

Technology

Delete Email ID’s

Receive Laptop

Telecom

Revokes Dialcomm Card Closing of House Lease / Car Lease

Admin

Payroll / Accounting

0 DAY

Processing of Top sheet / Refund Chq

20 DAYS

TIME

Don’t Automate , Obliterate

39

BPMS Methodology Step 2: Document Process

 Process

     

Documentation

Process Documentation Happens on 6 levels
Level 1 (Process name) Level 2 (High Level Process Map) Level 3 (Detailed Process map) Level 4 (Standard Operating Procedures) Level 5 (Forms and Formats) Level 6 (Records)

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Example: Complaint Handling Process

Level 1(Process Name)

Complaint Handling Process

Level 2 (High Level)

Receive Complaint

Log Complaint

Assign Complaint

Resolve Complaint

Inform Customer

41

Example: Complaint Handling Process

Level 3 (Detailed Process Map) Start Take Customer Call N

Complaint Y
Understand Nature of Complaint

QR

Log In Customer Complaint

If you look at Understanding Nature of Complaint, it may require the agent to follow a script to pinpoint the problem area. This step will be further drilled down into a Standard Operating Procedure. This is Level 4

For the step Log In Customer Complaint, The format for logging in has to be detailed. This is level 5. A filled up form is a record. This needs to be stored for future reference. This is level 6

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Format: Standard Operating Procedure
STANDARD OPERATING PROCEDURE TITLE

Process: Company

SOP Number

Revision Effective Date

Page

1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0

Purpose Scope Materials/Equipment Procedures Definitions Roles and Responsibilities Safety Precautions Formats and Records

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Step3:Document Customer and Process Requirements

Translating Customer Needs Into Customer Requirements
Translation Of Needs

Your Outputs Outputs Of Your Process Are Designed To Satisfy Customer Needs Profitably

Voice Of The Customer But Customer Needs Are Stated In The Language Of The Customer

Key Issues/CTQ Clarification Of The Customers’ Language Identifies The Key Issues
“ FORM TAKES TOO LONG TO COMPLETE HENCE TIMELINESS “ OR “ TOO MANY CROSS-REFERENCES HENCE TOO COMPLICATED “

Customer(s) Requirements Key Issues Must Be Translated Into Customer Requirements

“ I HATE FILLING OUT THIS FORM ”

“ FORM TO TAKE 5 MINUTES TO COMPLETE “ “ FORM TO TAKE LESS THAN ONE MINUTE TO COMPREHEND “ “ USERS UNDERSTAND THE INSTRUCTIONS ON THE FORM WHEN READ FOR THE FIRST TIME “

“ I DON’T UNDERSTAND BANKING JARGON “

“ AMBIGUOUS INSTRUCTIONS “

45

BPMS Methodology Step 3: Document Customer and Process Requirements

 The
   

Steps involved in Document Customer and process requirements are
Identify Customer List Customer Needs Identify Key Issue Convert Customer Needs into Process requirements

46

Understanding Customer Requirements

ASK……… ….!! “….What do you think we need to improve?....”
47

What does the Customer Want?

Voice Of the Customer (VOC)

Interviews

Focus Groups

Surveys

Organizational Metrics

48

Translating Customer’s Voice into Process Requirements After Clarifying… Process (s) Voice of the Customer.. The Key Issue Requirements (s) is… Long time is taken for complaints Every time I have the same complaint When I complaint the people do not understand Agents behave rudely Time Repeated Complaints Agent Understanding Agents Empathy Resolve complaints quickly Ensure complaints do not re-occur Increase knowledge of agents Improve Agent Skills

49

Translation Example Of Step 3 of Customer Needs Into Customer Requirements

Process 1.0 - Produce and Deliver Pizza Voice of the Customer After Clarifying… The Key Issue(s) is…
Accuracy

Customer(s) Requirements
Right pizza to right person

“ I want the pizza that I ordered”

“I want my delivery person to be friendly”

Politeness

Pizza person is polite

“I want my pizza when you said it would be here”

Timeliness

Pizza delivered on time as promised to customer

“I want my pizza hot and tasty”

• Usability / features • Palatability

Pizza satisfies customer’s taste expectations

“I’m not going to pay a lot for this pizza!”

Price

Price is equal to or less than all other pizza providers

50

Step4: Identify Output and Process Measures

Identify Output & Process Measures

AS IN MAPPING , IT IS IMPORTANT TO REMEMBER AT WHAT LEVEL OF THE PROCESS ARE WE FOCUSSING. WHILE CUSTOMER FOCUSSED CTQs HELP TO KEEP CUSTOMER FIRST , THE DEEPER WE GO IN TO THE ORGANIZATION , THE MORE INTERNALLY FOCUSSED THE WORK BECOMES . THEREFORE , IT IS IMPORTANT AT TIMES TO “JUMP UP” TO SEE THE RELATIONSHIP OF YOUR MEASURE AND THE PURPOSE OF THE LARGER PROCESS.

52

Levels Of Measurement Data

Process Level
Business Subprocess Microprocess

Measures
Customer Driven Internal Control Metrics

Example
On-Time Delivery Cost/Unit Produced Time In Queue

53

Input, Process And Output Measures
Input Measures
The Key Quality And Delivery Requirements Placed On Your Suppliers.

Process Measures
Measures That Are Internal To Your Process. They Include Quality And Delivery Measures Important To Your Internal Customers As Well As Waste And Cycle Time Measures. They Are Correlated To The Pertinent Output Measures.

Output Measures
Output Measures Are Measures Used To Determine How Well Customer Needs And Requirements Are Met.

54

BPMS Methodology Step 4: Identify Output and Process Measures

 Once
  

Process Requirements are identified the following steps have to be taken
Identify Input Measures Identify Process Measures Identify Measures for Process Outputs

55

BPMS Methodology Step 4: Identify Output and Process Measures

Process Output

Process (s) Requirements

Unit of Measure

Measures

Resolved Complaint

Resolve complaints quickly Ensure complaints do not re-occur Increase knowledge of agents Improve Agent Skills

Time

TAT for Complaints

Percentage Knowledge Scale Agents Empathy

% of Repeat complaints

Agent Training Completion

Knowledge Scores

Call Quality
56

CTQ Tree with Input, Process and Output Measures Example Of Step 4 and Deliver Pizza Process: 1.0 - Produce

CTQ

Customer Requirements

Process Specific Customer Requirements (Specifications)

Output Measurements

Process Measurements

Input Measurements

Accuracy

Right pizza to right person

100%

Y1: % of wrong pizzas delivered

X1.1: % orders matched (post oven)

Politeness

Pizza person is polite

100%

Y2: % of complaints

Timeliness

Pizza delivered on time as promised to customer

<45 mins.

Y3: Time - order taken to pizza delivered

X3.1: Cook time X3.2: Oven temperature X3.3: Delivery time

X3.4: Order volume

57

Step5: Build Process Management System

Build Process Management System

It shows the following : •Process Steps through Flow Chart •Measures & Targets •Monitoring System •Contingency Plan
59

BPMS Methodology Step 5: Build Process Management System

 How
     

do we manage Processes

Process Structure Process Training Process Distribution Process Resources Process Compliance Process Review

60

Process Structure
Process Champion

POwners

POwners

POwners

POwners

Operators

Operators

Operators

Operators

Process Champion: Has overall responsibility for the process. He is one person who has overall view of the process Process Owners: Person Responsible for the process which flows through his department Process Operators: All persons who work on the processes

61

Process Training

Process Training The process owner and the Process Operators have to be trained on the process. The training has to cover • • • • Customer and Process Requirements Standard Operating Procedures Process Measures and their Specification Limits If the process requires specific skills, a certification criteria needs to be set

62

Process Distribution

Process Distribution The entire process docket needs to be available with every process owner The process distribution can be available as • • • Electronic Format or as Manual Format Ensure latest process is available Recent changes needs to be clearly visible. Reasons for change should also be specified

63

Process Resources

Process Resources The process resources are those requirements without which the process will not be able to run effectively Resources include • • • Skill and education of process operators System Requirements Audit and Review requirements

It is required that these requirements be clearly documented and updated on a regular basis

64

Process Compliance

Process Compliance It is required that process be regularly audited to ensure compliance Auditing frequency can be determined • • • Effectiveness of process measures to meet customers requirement Based on time periodicty Any major change in the process

Audit is one tool which is used to keep the process live. The audit reports • • • • • Should be shared with the management Should be shared with the process owners Corrective and Preventive actions to be documented for non compliance Re-audit to ensure that the actions have been implemented Re-Document any change in the process

65

Process Review

Process Review It is required that process be regularly reviewed to ensure capability in meeting customers requirements Review frequency can be determined • • • Effectiveness of process measures to meet customers requirement Based on time periodicty Any major change in the customers requirement

Process Reviews looks at • • • Is process capable of meeting customers requirements Scope of reducing costs, and defects Is our process better than the competitors benchmarks

66

Process Management Chart
Process Name:
Process Map
Departments Dealer Application Entry Credit Document Preparation Legal Lessee

Process Owner:
Monitoring Measures
(Process Measures Except Where Noted)

Date:
Response Plan Immediate Control/Fix Process Improvement

Standard, Spec. Or Target

Data Collection Method

67

Step6: Establish Data Collection Plan

BPMS Methodology Step 6: Establish Data Collection Plan
Why Data Collection Plan?  Ensures Data collection is done effectively

 Makes Data collection systematic instead of random and haphazard.

 Addresses questions like  Who will collect the data ?  How many variables?  What type of data: Discrete or Continuous?  How many data points?  Any specific time of the day to be collected?  Any specific process / instrument to be used?

69

What Data Should be collected ?
   Data Collection focuses on the process output measures Data should be collected at every level of variables The least count of data should be specified during the data collection exercise

70

Operational Definition
Defining The Measure

Definition

An Operational Definition Is A Precise Description That Tells How To Get A Value For The Characteristic You Are Trying To Measure. It Includes What Something Is And How To Measure It To Remove Ambiguity

Purpose

Everyone Has The Same Understanding Identifies What To Measure Identifies How To Measure It Makes Sure That No Matter Who Does The Measuring, The Results Are The Same

To Provide A Clear Way To Measure The Characteristic
  

71

Operational Definitions Are Critical For DPU, DPMO And Six Sigma Calculation

Item Unit

Definition The Item Produced Or Processed. It Is The Specific Product Or Service Used To Evaluate Whether Or Not Customer Requirements Are Met Any Event That Does Not Meet The Specifications Of A CTQ Any Unit That Contains One Or More Defects. Such a Unit Is Called A “Defective Unit” Any Event Which Can Be Measured That Provides A Chance Of Not Meeting A Customer Requirement

Example ® Bill Or Invoice ® Customer Inquiry

Defect Defective

® Incorrect Address On A Bill ® Bill With An Incorrect Address ® Bill With Two Defects, Incorrect Address And Total Amount Due ® Name, Address, Item Description And Total Amount Charged On A Bill. Each Represents An Opportunity For A Defect

Defect Opportunity

72

Example of Data Collection-Level
Visa Processing time

India

China

Pakistan

Sri Lanka

Bangalore

Pune

Kolkatta

Hyderabad

Designation 1

Designation 2

Designation 3

Designation 4

Visa Type 1

Visa Type 2

Visa Type 3

Visa Type 4

Collect data at this level
73

Data Collection Format - Sample
No of Data Points Done By Visa Number Visa Type City Country

Date of Collection Designation Cycle Time for Visa Processing

The Data Collection Format shown above covers, Visa Number, Visa Type, City, Country, Designation, and Cycle time for Visa Processing.

A format for Data Collection ensures that data is collected on input variables (Xs) that have been identified during Brainstorming

74

Data Collection Plan Worksheet
Clarify Data Collection Goals Operational Definition Measure
Billing Accuracy

Develop Operational Definitions And Procedures Other Conditions To Record Collecting/ Recording (Attach Data Form)
Date_____ Region_____

Sampling How Many

Type Measure

Type Data

What

How

What

Where

When

Output

Discrete

Inaccurate = Bill with any of 5 fields not matching customer order form

Reconcile invoice with customer order for 5 fields

Product Defect 1 2 3 1 II 2 IIII IIII IIII 3 III 4 III III Total

Invoice/Bill

Accts. Receivable dept. – invoices prior to be mailed

Systematic – every nth bill where n is selected at random between 1 and 30.

One

Plan for Data Consistency And Stability Method Of Validating Measurement System
Check the results for a specific data collector for a one day selected at random per month. Collect the bills, sampled and appropriate order forms. Compare results.
Data Collector # Def. # Non 0 26 # Def. 26 0 125 125 # Non 26 125 151

Please Sketch Out The Preliminary Data Display
For Region

# of Defects Date

# of Defects Defect type

GE Capital Services Proprietary

75

Step7: Process Performance Monitoring

BPMS Methodology Step 7: Process Performance Monitoring

 What
  

to Monitor

Output Measures Input Measures Process measures

 If

we only monitor output measure we come to know of a problem after it occurs  Hence input and process measures are also monitored
77

BPMS Methodology Step 7: Process Performance Monitoring

Customer's Requirement

Process Specific Customer's Requirements (Specifications)

Output Measurements

Process Measurements

Input Measurements

Long time is taken for complaints Every time I have the same complaint When I complaint the people do not understand Agents behave rudely

<=5 hours

TAT for Complaints

<10%

% of Repeat complaints

>=80%

Knowledge Scores Call Quality

>=80%

78

BPMS Methodology Step 7: Process Performance Monitoring

Measures

Monitoring

Process Contingenc y
Contingency Plan

Output Measures (Y) and Input/ Process Measures (X)

Control Limits, Specifications

Monitor Item

Frequency

Responsibility

Source

TAT for Complaints % of Repeat complaints Knowledge Scores Call Quality

<5hrs

Time

Every Complaint

ABC

Workflo w

<10%

>80%

>80%

79

All Processes Have Variation

  

All Repetitive Activities Of A Process Have A Certain Amount Of Fluctuation Input, Process And Output Measures Will Fluctuate This Fluctuation Is Called Variation Variation Is The “Voice Of The Process” – Learn To Listen To It And Understand It

Measurement

Time 80

Tools For Understanding Variation
Variation For A Period Of Time
® Pareto Diagram ® Bar Charts ® Pie Charts

Type Of Data Discrete

Variation Over Time
® Run Charts ® Control Charts

– – – –

p-Chart c-Chart u-Chart Individual Measurement

Continuous

® Histograms/Frequency

Diagrams ® Box Plots ® Multi-Vari Charts

® Run Charts ® Control Charts

– Individual Measurement – X–R Chart

81

Step8: Develop Dashboards With Specification Limits

Process Dashboard
A Visual Display Of Key Measures Of Process Performance

Cycle Time

COPQ
Accuracy Defects

Sales

Sigma

83

Dashboard Attributes

A Dashboard Is:

A Management Tool
 Project

Monitoring  Improvement
 

A Set Of Critical Indicators A Tool To Be:
 Developed  Tested

84

Key Considerations

How Do You Want The Information Displayed? To What Level Do You Want To “Drill Down” In The Information? How Might You Want To Segment The Information For Making Critical Decisions?

85

BPMS Methodology Step 8: Develop Dashboards with Spec Limits

 Specification
 

Limits

Should be customer specified In Absence of customer specified specifications
 

Management Specifications Benchmark Specifications

 

Should be clearly shown on the dashboard Visually tells an employee if the process is meeting specifications

86

BPMS Methodology Step 8: Develop Dashboards with Spec Limits

TAT for Complaints 100 90 80 70
Minutes

Repeat Complaints
16 15

90

14 12 10 TAT Spec 8 6 8 5 % 9 11

60 50 40 30 20 10 0 1stAug 2nd Aug
Day

% Repeat Spec 5 5

30 20.4

30 27.4

30

30 20.4

4 2 0

5

3rd Aug

4th Aug

May

June Month

July

Aug

87

Step9: Identify Improvement Opportunities

Operate Process Management System

Develop PM System

Refine/ Rebuild

Implement

Operate
89

Operate Process Management System

Two Components :

Process Reviews
When

To Review What To Review

Taking Action
Selecting

A Solution

90

Operational Management Phase
External Environmental Information Continue Control Actions

Dashboard Indicators

Yes

Process Review

Satisfied With Indicators?

No Plan & Implement Improvement Actions for Unsatisfactory Indicators

Internal Environmental Information

91

Selecting A Solution
Current Situation Target

}
Gap
Type Of Action? No Action Troubleshoot Quality Improvement Design/Redesign
92

BPMS Methodology Step 9: Identify Improvement Opportunities

Dashboards will give insight into any improvement opportunities that may be present in the process Improvement opportunities can also be analyzed by
  

Audit Process Review Process Measures not meeting Specifications

93

Audit

   

 

The organization shall conduct internal audits at planned intervals Audit is done to ensure that process conforms to the planned arrangements Audit shall conform that process is effectively implemented and maintained. An audit programme shall be planned, taking into consideration the status and importance of the processes and areas to be audited, as well as the results of previous audits. The audit criteria, scope, frequency and methods shall be defined. Selection of auditors and conduct of audits shall ensure objectivity and impartiality of the audit process. Auditors shall not audit their own work. The management responsible for the area being audited shall ensure that actions are taken without undue delay to eliminate detected non-conformities and their causes. Follow-up activities shall include the verification of the actions taken and the reporting of verification results

94

Process Review

Review input The input to process review shall include information on:  results of audits  customer feedback  process performance and product conformity  status of preventive and corrective actions  follow-up actions from previous management reviews  changes that could affect the quality management system, and  recommendations for improvement. Review output The output from the process review shall include any decisions and actions related to:  improvement of the effectiveness of the process  improvement of the product related to customer requirements, and  resource needs.

95

BPMS Methodology Step 9: Identify Improvement Opportunities

Six Sigma projects are identified by using dashboards. Particularly for processes that consistently fail to meet the specifications

Repeat Complaints
16 14 12 10 8 6 4 2 0 May June Month July Aug 8 5 % 9 11 % Repeat Spec 5 5 15

A look at the dashboard tells us that the % repeat complaints offers more scope for improvement that Turn Around time

5

96

Approaches To Change
1. 2. Troubleshoot Or Quick Hit – Just Do It! Process Improvement – DMAIC

3. Process Design/Redesign/Reengineering – DMADV 4. Change Acceleration Process ( CAP ) – Can Be Used With All The Above Methodologies
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