Business Process Improvement

Handbook Handbook
What you THINK your process is

What It ACTUALLY Is

What it SHOULD Be

PROCESS MANAGEMENT OVERVIEW

SOME FACTS ABOUT PROCESS AND FUNCTIONAL MANAGEMENT 1. Effective and efficient processes are repeatable, dependable and robust, and deliver to customer(s) requirements and expectations. 2. Many organizations are structured into functional silos to facilitate direction and control. Organizations of this nature hinder process effectiveness and efficiency. 3. Features of a functional/silo organization: They think vertically rather than horizontally. They are internally focused rather than customer focused. They make work and generate job growth to build empires. They do not have the company as a whole in mind. 4. The first time a process gets mapped, it is usually very convoluted and loaded with opportunities for streamlining by removal of non-value added activities. 5. It is essential to map the process before beginning the improvement cycle so you can see what you need to improve and to base your improvements on hard fact, data and information; (i.e.: Who does what? When do they do it? Where do they do it? Why do they do it and finally How do they do it? Otherwise, you are only imagining what you have to improve.) 2

CONTINUOUS IMPROVEMENT
Process improvement has many levels and it is far from stagnant. It starts with Phases 1 and 2 of the model below. Once phases 1 and 2 are completed, Phases 3 and 4 may be explored in the quest to achieve the most effective and efficient process that provides valued services and products to the customer by introducing best in class practices.

Business Process Improvement (BPI) Guidelines

The following steps identify the major activities encompassed in the six-phase approach for Business Process Improvement (BPI). You are encouraged to use this guideline in order to achieve proper understanding of the respective existing (As-Is) process and the associated issues/concerns. This is expected to pave the way for identifying improvement opportunities followed by streamlining of the process and ultimately defining the ToBe process and an appropriate system for measuring the effectiveness of the affected process. General BPI Steps: 1. Preparation for Workshop

1.1. Identify the Workshop Facilitator Using the BPI methodology and tools the facilitator guides the team through the workshop and brings the team together in the understanding and improvement of the process. The facilitator must ensure that the team performs to its potential, i.e. that the workshop dynamics support the fulfillment of the process mandate. As important as the technical knowledge of the BPI methodology and tools are, it does not guarantee the success of a workshop. The successful application of the technical knowledge rests on the facilitation skills. Facilitation is best suited to those people who: are inclined to be extroverted enjoy interaction with people in a group setting comfortable with assuming the leadership role prefer developmental rather than directive style are perceptive are able to confront issues without alienating the team or diminishing the Process Owner, Manager and/or Sponsors role are skillful in diffusing conflicts 1.2. Identify Process Manager / Owner / Sponsor The Process Owner, Manager and/or Sponsor are the people who will be responsible for managing any changes to the process determined by the workshop. As they are the ones who will provide the information to complete the Process Improvement Mandate, it is necessary to clearly identify who they are.

Roles & Responsibilities

PROCESS MANAGER Is primarily responsible and accountable for the day-to-day activities of the process Will drive implementation. Will obtain resources for the project as required. Will provide session participants with project status PROCESS OWNER Is responsible and accountable for the overall effectiveness and efficiency of the process Facilitates the resolution of interface problems between functional departments PROCESS SPONSOR/CHAMPION Is implicated in the process as a supplier, customer or key stakeholder. Has decided that the process requires either understanding or improvement. Has the agreement of the Process Manager and/or Owner to analyze the process Is often appointed by the Process Owner.
Refer to Process Questionnaire (Appendix K) and Process Mandate Form (Appendix L). 1.3. Meet with Manager/ owner / sponsor Define Mandate Refer to Process Mandate Form (Appendix L) o Process mandate Checklist - to ensure the process definition is complete: Identify Process Owner(s) & Process Manager(s). Review Process Name. Define Major Process Problems. Define the Boundaries. Determine the Scope. Define Major Process Expectations. - Define Objectives. Objectives shall be tangible, measurable, clear & concise. Objectives shall be SMART Select Team Participants In order to be effective, the team should have representation from all major areas involved in the process. The team members selected need to: Be empowered to speak on behalf of the rest of their organization. Have the time to focus on the project. Be willing to participate actively. Be committed to implementing the action plan that is developed during the workshop. The Process Manager, Owner and/or Sponsor should act as a leader on the team, providing the Facilitator with direction and support. Note: Refer to stages of team formation; Appendix B. 7

Review Proposed Game Plan (Agenda) for the Workshop

To help determine if any preparation is required for the workshop (e.g. statistics to be gathered), review with the Process Manager, Owner and/or Sponsor what you want to include in the agenda for the workshop. Note: Refer to Sample of workshop Agenda (Appendix M). You may choose those items which will accomplish the objectives defined in your Process Mandate. For example: Do you need Process Analysis? What tools should be used? Is it a new process with no As Is and only a To Be process required?

Determine Logistics

o o o

Determine the number of days required for the workshop o Identify an appropriate conference room Select a possible date for the workshop Determine the workshops date and daily schedule Gather the supplies required for the session: - Brown (butcher block) paper (subject to availability in the market) - Post-It-Notes - Markers - Flip charts - Masking tapes (1 inch width) - Masking tapes (1/2 inch width) - Visio software for capturing the maps electronically - Access to a plotter to print the electronic maps o Identify who will do what 2. Workshop Kick-Off

2.1. Participants Introduction This helps to determine whether or not you have representation from all the areas touched by the process. 2.2. Team Mandate Presentation by Process Manager, Owner and/or Sponsor The Teams Mandate is what you will use throughout the workshop to focus the group on the purpose and deliverables of the session. Have the Process Manager. Owner and/or Sponsor present the Team Mandate. This provides them with the opportunity to clarify the scope and achieve alignment with the objectives. 2.3. Workshop Agenda Review Review the agenda with the participants including the start and end times for the workshop. 2.4. Discuss Roles of Facilitator and Team members Facilitators Role The facilitator must ensure that the team performs to its potential, i.e. that the workshop dynamics support the fulfillment of the process mandate. Using the BPI methodology and tools the facilitator guides the team through the workshop and brings the team together in the understanding and improvement of the process. This entails keeping the discussion on track, managing conflict when necessary, and ensuring that everyone gets the opportunity to participate and to express their

views openly. They act as a catalyst for change, encouraging the team to challenge the status quo and to question non-value added activities in the process. In summary, the facilitators role is: Provide structure Gate-keeping Maintain group focus Mediate Feedback Challenge Participants Role for an Effective Workshop Be on time and dont leave early Be fully dedicated No talking over one another No side conversations Listen to be listened to Keep the discussion focused Participate actively Eliminate the obstacles to solve the problems Look for common ground Be open-minded Focus on ETs best interests Speak up! Dont hide problems No cheap shots Have fun! 2.5. Present housekeeping logistics Eliminate disruptions (pagers, phone calls) Breaks - time to pick up messages Lunch time - Between and - Washrooms / smoking rooms 2.6. Collect Expectations Ask each participant and capture his/her expectations on a flip chart for follow-up to check if the expectations have been met by the end of the workshop. 2.7. Process Management briefing (if necessary) Ensure that the team is aware of what process management is all about.

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3.

Process Understanding

3.1. Map the process As Is Refer to Appendix P for Mapping Symbols and to Appendix Q for Mapping Techniques.

The As Is mapping is central to gaining a shared understanding of the current process. It is used to: 1. simply fine-tune, rather than change an existing process or 2. improve a process by introducing significant changes; the As Is mapping becomes a crucial first step in the shaping of the To Be process. During the As Is mapping the team will: develop the fact-based conclusions about the current process identify the most-bang-for-the-buck opportunities identify no-brainer changes build an imperative for changing the As Is

Mapping Guidelines o Map one product / service from start to end o First, map the As Is, not the To Be or Should Be

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o One breath explanations (Keep activity descriptions focused and to the point) o Document all steps and their sequence at the agreed upon level. o Document hand-off criteria, paperwork, and needed approvals o Resist problem solving o Use the 80/20 rule (Map the normal flow - 80% /not the exceptions - 20%) Macro Map: To help the team get started, you may draw a Macro Map before attempting a detail map of the process. Use the Macro Map form. The following are to be identified in the Macro Process Map.

1. Process Name Give the process name which focuses on the product / service. 2. Process Problems The process problems are the reasons WHY the process needs improvement. 3. Boundaries The boundaries specify what events, transactions or tasks START (3a) the process and END (3b) it. 4. Scope The scope defines which areas/sub-processes should be included in the analysis, and which should be excluded.

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5. Phases The phases are the high level activities of the process. 6. Major Players The major players are organizations, departments, or people that are involved in the process. 7. High Level Activities The high level activities highlight the major activities in the process. (Usually the only mapping symbols used in a macro map are the activity bubbles.) Detail Mapping Steps: 1. Identify the main phases (stages) of the process and, using Post-It-Notes to record the phases, lay them out across the top of your process map. 2. Have the team list all the major players that get involved in the process either by department name or job titles down the left side of your process map.

3. State the start boundary and ask What is the first thing that happens and who does it? 4. Using the mapping symbols, describe the activities that occur in each phase for/by each player. 5. Continue mapping the next steps in the process. Allow each participant to describe his own activities. 6. Allow constructive discussions if it helps the team clarify activities. However, do not focus on challenging the process at this stage. 7. If issues and concerns (I&C) are raised around a particular activity, capture them on a flip chart under I&C, number them and attach a small red dot or Post-It-Note, with a matching number, to the corresponding activity on the map. 8. If participants discover opportunities for improvement, capture them on a flip chart under Opportunities, number them and attach a small green dot or Post-It-Note, with a matching number, to the corresponding activity on the map.

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3.2. Process Analysis The purpose of process analysis is to expand the understanding of problems and solutions from all necessary perspectives. The Process Analysis is used to: o further the understanding of the As Is o decide whether the As Is requires improvement o determine the root cause of problems o generate ideas and conclusions for the To Be o perform a comparative analysis between the To Be and the As Is Process Analysis has at its disposal a multitude of charting and problemsolving techniques. They can be applied in conjunction with fundamental principles and patterns such as standardization, elimination of bureaucracy, etc., found at work in a business environment. Some of the following tools may be used depending upon the nature of the process as well as the teams and the facilitators preference (refer to the Appendix for detailed description on each of the tools): o Brainstorming o Affinity Diagram o Decision matrix o Workload Analysis o Input / Output Verification o Cause and Effect / Fishbone Diagram o Force Field Analysis Brainstorming (Appendix D) Brainstorming is an idea generation technique. The function of brainstorming is to come up with as many ideas as possible. Affinity Diagram (Appendix E) The affinity diagram is a tool that allows a team to organize and summarize natural groupings of ideas / issues. Decision Matrix (Appendix F) A decision matrix is useful for determining the best solutions suited to be implemented. Workload Analysis (Appendix G) Workload Analysis is a tool used to understand the volume and types of products / services involved in the process.

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Input / Output Verification (Appendix H) The Input / Output Verification is a tool which can be used to identify all information transfers (interfaces) between activities within a process. Cause and Effect / Fishbone Diagram (Appendix I) The cause and effect diagram is used to identify, explore, and graphically display, in increasing detail, all of the possible causes related to a problem or condition to discover its root cause(s). Force Field Analysis (Appendix J) The force field analysis tool is used to identify the forces and factors in place that support or work against the solution of an issue or problem so that the positives can be reinforced and/or the negatives eliminated or reduced. 3.3. Process Improvement

How do we improve a process? Process improvement is in itself a complex process and there is no one magic recipe for it. Numerous BPI workshops have shown that the only magic comes from the four vital, yet hard to measure ingredients: the groups willingness to embrace change the groups creative intensity the facilitators skill the synergy between the group and the facilitator These ingredients provide a foundation for an effective application of whatever patterns and principles are used. 3.3.1. Principles, Patterns and Methods Use the following principles, patterns and methods to identify, challenge, and eliminate the non-value added activities from your As-Is process as well as when developing the To Be process (Refer to Appendix A to Identify and Select Opportunities and to Appendix N for details on the items listed below). 1. Elimination of Bureaucracy 2. Elimination of Duplication 3. Simplification 4. Standardization 5. Value-added Assessment 6. Error-proof the Process 7. Process Time Reduction How do we map the To Be?

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3.3.2. Map To Be process Use the same mapping symbols and techniques as for the As Is. 1. Have the As Is map displayed in a convenient position for reference. 2. Set up a length of brown butcher block paper for the To Be. 3. Use Post-It notes to record the main phases across the top of the paper. 4. Place Post-It notes with the departments names or position titles down the left side of the To Be map. 5. In this step, the demand on the teams creativity is at its highest. Using all the information that has been accumulated, the team will need to judiciously apply: a) I&C and Opportunities identified during the As Is mapping and b) Process Analysis findings and c) Principles and Patterns found in the following section. 6. If issues and concerns (I&C) are raised around a particular activity, capture them on a flip chart under I&C, number them and attach a small red dot or a Post-It-Note, with matching number, to the corresponding activity on the map. 7. If participants discover opportunities for improvement, capture them on a flip chart under Opportunities, number them and attach a small green dot or StickIt-Note, with matching number, to the corresponding activity on the map.

3.3.3. Review Process Ownership Sometimes, during creation of the To Be process, ownership of the process comes into question. Does the original owner still own the process or are the changes so dramatic, that ownership falls to someone else? 3.3.4. Review As Is Issues & Concerns and Opportunities

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As one of the final steps in validating the To Be process, you need to review the issues and concerns and opportunities raised during the As Is process mapping and analysis. Determine if they have been incorporated into or corrected by your new process. If not, check with the team and decide if they are still valid concerns or opportunities. 3.3.5. Concluding the Process Improvement Step In order to ensure that the new process youve designed is complete, review the Process Mandate to verify that the problems originally highlighted will be addressed by the new process. It may be necessary to modify your new process slightly. 4. Process Review & Implementation

4.1. Develop Process Metrics / Measures Process metrics help in determining whether the process is healthy. If there are good process related metrics in place and the process is not working appropriately, the metrics you choose should indicate this. (Refer to Appendix O for details) 4.2. Develop Action Plan Having developed the best To Be process is not the end. To accomplish this, the team will need to develop a comprehensive action plan. It will include action items based on the issues and concerns and opportunities, but it is not limited to these items. During the development of the To Be process map, some issues and concerns and opportunities may have been raised and captured on flip charts. If the I&C or opportunity has not been incorporated into the To Be process, create an action item which addresses the point. Subsequent to addressing all of the issues and concerns and opportunities, there may still be other actions required to implement the To Be process. Ask the team to identify these actions and determine an actionee and target completion date for these items. 4.3. Review Team Expectations Review with the team the expectations captured at the start of the workshop. Convert the expectations which have not been addressed into action items, with assigned Actionees name and target dates. Add these to your Action Plan. 4.4. Management Review Where appropriate, the team should review their findings, conclusions and recommendations with the appropriate process stakeholder(s) at the close of the workshop. Logistics for the Management Review should have been discussed and agreed to during the initial meeting with the Process Manager, Owner and/or Sponsor. 4.5. Assign Follow-up Roles

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In order to ensure that all participants understand what is expected of them after the workshop, present the following roles and responsibilities. Roles & Responsibilities: PROCESS MANAGER To drive implementation To obtain resources as required To provide participants with project status

PROCESS OWNER Responsible for the effectiveness and efficiency of the process Facilitates the resolution of interface problems Eliminates roadblocks to implementation of To Be process PARTICIPANTS To complete action items on time To challenge the Process Manager to follow through on implementation FACILITATOR To provide additional support as agreed to with Process Manager/Owner
4.6. Establish Feedback Mechanism To keep the momentum of the project, status meetings must be held on a regular basis with all team members. These meetings are designed to ensure completion of all project action items and to allow the Process Owner the opportunity to intervene if actionees are encountering roadblocks in achieving results. 4.7. Team Recognition & Closure When all project action items have been completed / implemented, an appropriate project closure is required. This may be in the form of: a letter of acknowledgment and thanks to the team members a project article in P&WC News a project team lunch in the Executive Dinning room a dinner certificate for two for each team member or any combination of the above

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5.

CONTINUOUS IMPROVEMENT

Now that the workshop is over and the challenging work of implementing all the creative ideas is underway, the good news is your journey is not over. Process improvement has many levels and it is far from stagnant. At this point youve completed Phases 1 and 2 of the model below. Phases 3 and 4 are other areas that may be explored in your quest to achieve the most effective and efficient process that provides valued services and products to the customer. 5.1. Process Benchmarking 5.2. Process & Systems Re-engineering

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Appendices
A. IDENTIFY AND SELECT OPPORTUNITIES21 B. STAGES OF TEAM DEVELOPMENT.23 C. MANAGING MEETINGS...28

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D. BRAINSTORMING.29 E. AFFINITY DIAGRAM30 F. DECISION MATRIX...31 G. WORKLOAD ANALYSIS...32 H. INPUT/OUTPUT VERIFICATION34 I. CAUSE & EFFECT / FISHBONE DIAGRAM.35 J. FORCE FIELD ANALYSIS37 K. PROCESS QUESTIONAIRE..38 L. PROCESS MANDATE.39 M. SAMPLE OF A WORKSHOP AGENDA..42 N. PRINCIPLES & PATTERNS.44 O. DEVELOP PROCESS MATRICS..51 P. MAPPING SYMBOLS.53 Q. MAPPING TECHNIQUES..54

Appendix A Identify and Select Opportunities This section will help you identify and select process opportunities you need to improve. Criteria for Selecting Process Improvement Opportunities Most internal/external complaints Highest cost Long cycle time Known better way Current results not satisfactory Easy to fix problems

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Generating Potential Improvement Ideas You might want to conduct a brainstorming exercise with a group of people to determine areas of potential improvement. After all ideas have been captured, clarify any that are not understood by the group. Combine ideas where it makes sense. Determining Which Improvement Opportunities have the Most Impact Assign a number to each of the ideas generated in the brainstorming exercise above. Create a set of sticky dots with all the numbers for each team member. Using the Ease / Impact Table on the following page, let each person assign the ideas to a quadrant based on his/her perception of the ease of the project (in terms of cost and human resources) and the impact of the project (benefit). For each idea, count the number of sticky dots in each quadrant and record on the Impact Table Scoring Matrix. Multiply all quadrant 2 items by 2, quadrant 3 items by 3 and quadrant 4 items by 4. Add quadrant totals across each row for each item. The items with the lowest score are potential low cost, high benefit opportunities.

Ease / Impact Table Ease / Impact Table Scoring Matrix Voting was based on the following criteria: Quadrant 1 = easy to implement and high impact. Quadrant 2 = hard to implement and high impact. Quadrant 3 = easy to implement and low impact. Quadrant 4 = hard to implement and low impact.

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Appendix B Stages of Team Development The following pages are intended to provide you with an understanding of the stages a team may go through during a workshop. None of these four stages are static teams might regress to lower stages of development then move forward, only to regress again during various phases of the workshop. Newly Formed Fragmented Reconfigured The Whole

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STAGE 1: NEWLY FORMED

This stage is representative of all early stages when people first come together. Productivity at this stage is typically low as members begin their orientation to the task. Members are process dependent - meaning they look to the formal leader for direction

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STAGE 2: FRAGMENTED

At this stage members have been together for awhile and begin to experience feelings of dissatisfaction. This dissatisfaction results from a struggle for leadership, incomplete / ineffective communication, arguments and members taking issues personally. The members begin organizing tasks and begin experiencing conflict. Commonly at this stage, there is a dip in morale due to the disillusionment or discrepancy between the hopes / expectations of members and reality.

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STAGE 3: RECONFIGURED

At this stage members begin facing internal conflict openly and honestly and start reestablishing relationships with one another. As the ways of working together become more clear, through the open flow of data, there is less dissatisfaction, increased level of trust and respect and ultimately more cohesion.

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STAGE 4: EFFECTIVE TEAM - THE WHOLE

This is the stage of true effectiveness from both a process (interdependent) and task (problem solving) standpoint. Members have a high level of trust in one another allowing them to face differences openly. Leadership within the team shifts according to the demands of task and preferences of group members. Human relations are very harmonious and there is a recognized need to accomplish tasks - this leads to high levels of productivity.

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Appendix C Managing Meetings Tips Have a defined purpose for the meeting and publish it in advance Create an agenda for the meeting Get agreement on the agenda at the beginning of the meeting Have an agreed-to start and end time Restate conclusions and assignments to ensure agreement and to provide reinforcement or a reminder Control interruptions Accomplish the purpose of the meeting

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Appendix D Brainstorming

What is it? Brainstorming is an idea generation technique that can be used at almost any point in the problem solving process. The function of brainstorming is to come up with as many creative ideas as possible. Why is it useful? Encourages all team members to get involved in the problem solving process. Taps creative thinking Gets a lot of information out in a short period of time Why is it used? To identify potential problems, causes, solutions. To determine data and sources of data to be collected. How is it done? Write the topic, problem or issue on the flip chart. Ensure the group understands the statement State a finite time for the exercise at the beginning, or state that the exercise will continue until all the ideas are exhausted Ask team members to take a few minutes to think silently about the topic Generate ideas - 2 methods: Free-for-all: Everyone calls out ideas as they think of them. Round-robin: Each person presents one idea at a time in sequence. If they dont immediately have an idea, pass them by for this turn. They will get another chance. Record all the ideas Encourage building on others ideas The Real Rules Relax your brain; dont worry about being right Absolutely no criticism! No domination by any one individual No evaluation of any kind is permitted All participants are encouraged to think of the wildest ideas possible Quantity of ideas is encouraged Participants are encouraged to build upon or modify previously suggested ideas Keep task statement visible

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Appendix E Affinity Diagram What is it? The affinity diagram is a tool that allows a team to organize and summarize natural groupings of ideas / issues. How is it done? Write the topic, problem or issue on the flip chart. Ensure the group understands the statement. State a finite time for the exercise at the beginning Brainstorm about the topic, problem or issue Write each idea on a separate piece of paper Without talking, have the team sort the ideas generated during brainstorming into 5-10 groups. Create a heading for each group

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Appendix F Decision Matrix Why use it? A decision matrix is useful for determining the most important solution to be implemented. How is it done? Define the major criteria used to evaluate the possible solutions. The criteria must be specific and representative. (ie: Effectiveness of solution, feasibility, acceptance potential, etc.) Rate the criteria in the order of importance (ie: If there are 6 criteria determined, the most important is 1 and the least important is 6. No two criteria can be rated the same.) number of columns = number of criteria + 2 number of rows = number of solutions + 1 criteria across top (Highest lowest (being 1)) solutions down side (no specific order) Assign ratings of between 0 and 10 to the possible solutions where 0 = fails to meet criteria 10 = fully meets criteria Multiply the criteria rating by the solution rating and enter the result in the upper right corner of each cell. Add each result across columns: enter in far right column The solution with the highest total rating on the right is probably the best solution to resolve the problem.

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To understand the volume of products / services involved in the process: Make up a list of products and services Can it be divided into categories? (customer, inputs, class, values, repetitions, etc.) Make an analysis of quantity per category (%) (qty per customer, % of time, etc.) For example, look at the charts below. The immediate conclusion might be that Plant 1 is creating the greatest work load for Office Supplies. If you look at the second chart, you would see that the biggest amount of work is from Plant 5. Take the time to review your process from a few different perspectives.

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Appendix H Input / Output Verification Why use it? The Input / Output Verification is a tool that can be used to identify all information transfers (interfaces) between activities within a process. Why is it useful? Identifies any information that is not required (outputs that are not needed as inputs, or input that are not needed to perform the activity. Identifies formal / informal information flow Identifies input sources and output destinations How is it done? Number each activity in space provided. Copy the activity description from the process map to the space provided. Identify the inputs (what is needed to do the activity) on the left-hand side of the form. Identify the outputs of the activity and write them on the right-hand side of the form. You can identify who is responsible for providing the inputs along with any procedure linked to this activity.

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Appendix I Cause & Effect / Fishbone Diagram What is it? The cause and effect diagram is used to identify, explore, and graphically display, in increasing detail, all of the possible causes related to a problem or condition to discover its root cause(s). Why is it useful? Enables a team to focus on the content of the problem, not on the history of the problem or differing personal interests of team members Creates snapshot of the collective knowledge and consensus of the team on a problem. This builds support for the resulting solution. Focuses the team on causes, not symptoms How is it done? 1. Formulate the problem statement First, everyone must agree on the issue or problem raised. This is followed by a statement illustrating the situation. The statement must; describe the effect focus on discrepancies be measurable be specific be unambiguous 2. Conduct a brainstorming session to determine the possible causes of a given effect. (See Appendix on Brainstorming) 3. Establish the categories of causes: Group the main causes into applicable categories: Polices (higher-level decision rules) Procedures (steps in a task) Plant (equipment and space) People (the human element) Environment (buildings, logistics, and space) Measurement (data collection) Note: There is no perfect set or number of categories. Make them fit the problem. 4. Construct the cause and effect diagram structure: On a large sheet of paper taped to the wall: trace a long arrow pointing to the problem statement indicate the categories above and below the arrow

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

5. Analyze the probable root cause: Determine the root causes producing the effect by repeatedly asking of each cause listed on the diagram Why does it happen. A brainstorming session will enable you to look at a problem from different angles. Write all the root causes on the diagram. 6. List the causes in order of priority: The objective is to list the root causes by priority in terms of validation and implementation. Some causes can be easily ruled out while others may seem complex and take longer to rule out. The causes to be investigated in the short term should be marked with a red dot on the diagram; those the team plans to look into later (medium) should be marked with a green dot. 7. Devise a validation plan: Every cause to be investigated, whether in the short or medium term, must be assigned to someone in the group who will be responsible for validating it. Each person responsible for validating one or more causes must set aside the time needed to validate these causes before the next meeting can be held.

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Appendix J Force Field Analysis What is it? The force field analysis tool is used to identify the forces and factors in place that support or work against the solution of an issue or problem so that the positives can be reinforced and/or the negatives eliminated or reduced. Why is it useful? Presents the positives and negatives of a situation so they are easily compared Forces people to think together about all the aspects of making the desired changes a permanent one Encourages people to agree about the relative priority of factors on each side of the balance sheet Encourages honest reflection on the real underlying root cause of a problem and its solution How is it done? 1. Draw a large T on a flip chart A) At the top of the T, write the issues or problem that you plan to analyze To the far right of the top of the T, write a description of the ideal situation you would like to achieve. B) Brainstorm the forces that are driving you towards the ideal situation. These forces may be internal or external. List them on the left side. C) Brainstorm the forces that are restraining movement towards the ideal state. List them on the right side.

2. Prioritize the driving forces that can be strengthened or identify restraining forces that would allow the most movement toward the ideal state if they were removed. Achieve consensus through discussions or by using ranking methods

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Appendix K Process Questionnaire This 20 point questionnaire can be used to assist the Process Manager, Owner and/or Sponsor in defining his process. 1. What business goals are supported by this process? 2. Does the process have specific quantifiable goals? 3. Where does the process begin (document or transaction)? 4. Where does the process end (document or transaction)? 5. What major sub-processes are included in the process? 6. What major sub-processes are not included in the process? 7. Who are the process customers? 8. Are customer requirements documented? 9. What is the impact of poor process performance? 10. Who are the process suppliers? 11. Are supplier requirements documented? 12. What is the impact of poor supplier performance? 13. How resource intensive is the process? Dollars People Time 14. Who is responsible for the functioning of the process? 15. How do you know if the process is working? 16. What functional groups does this process involve? 17. Is the process documented? 18. Does the process include periodic process reviews with established process measures? Effectiveness (customer needs) Efficiency (business needs) 19. Is the process stable, repeatable and predictable? 20. What is the name of the process being described (if any)?

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Appendix L Process Mandate

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Define Process Mandate It is necessary to define the process mandate to ensure complete understanding between the Process Owner, Manager and/or Sponsor and yourself regarding the problems the workshop is intended to resolve and the objectives the workshop is intended to achieve.

1. & 2. - PROCESS OWNER, MANAGER AND/OR SPONSOR List the Process Owner, Manager and/or Sponsor name. 3. - DETERMINE PROCESS NAME Determine a meaningful name for your process which describes the service or output of the process. 4. - MAJOR PROCESS PROBLEMS In what way does the process: Negatively affect the customer Negatively affect business strategies Create problems or fail to produce required output 5. & 6. - DEFINE THE BOUNDARIES OF THE PROCESS The boundaries of a process specify which event, transaction or task STARTS the process and which ENDS it. 7. & 8. - DEFINE THE SCOPE The scope is the definition of what areas and/or sub-processes should be included in the analysis and what should be excluded. 9. - DEFINE THE EXPECTATIONS Expectations are the Process Owner, Manager and/or Sponsors needs for the process in terms of effectiveness, efficiency and adaptability.

10. - DEFINE THE OBJECTIVES Objectives are tangible, measurable, clear & concise. Objectives are SMART Specific Measurable Achievable Realistic Timely

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PROCESS MANDATE CHECK LIST A last check to ensure the process definition is complete. Identify Process Owner(s) & Process Manager(s). Review Process Name. Define Major Process Problems. Define the Boundaries. Determine the Scope. Define Major Process Expectations. Define Objectives.

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Appendix M

SAMPLE OF A WORKSHOP AGENDA

PROCESS NAME
BUSINESS PROCESS DEVELOPMENT WORKSHOP DATE LOCATION

Kick-off
1. Round table introduction (name, role, experience and link with the process) 2. Team mandate presentation by sponsor 3. Review agenda 4. Present: Participants roles Facilitators role Housekeeping 5. Collect workshop expectations from team 6. Process Management (video, presentation, etc.)

Process Understanding
1. As is process mapping (macro and/or detail map) 2. Process analysis Brainstorming Affinity Diagram Analysis Decision Matrix Process Analysis Sheet Cause & Effect / Fishbone Input / Output Verification Force Field

Process Improvement
1. To be process map 2. Review process ownership 3. Review As Is Issues & Concerns and Opportunities

Process Review & Implementation

1. Metrics presentation 2. Metrics design 3. Develop action plan based on: To Be Process Map Issues & Concerns Opportunities Metrics 4. Review Team Expectations

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5. Management Review 6. Whats next ? Roles and Responsibilities of the follow-up team Facilitators role Process owners role Feedback mechanisms to the players Schedule for follow-up sessions

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Appendix N PRINCIPALS AND PATTERNS This section describes of principles, patterns and methods that can be used to identify, challenge and eliminate the non-value added activities from your As Is process. These principals and patterns should also be kept in mind while developing the To Be, so as not to repeat the sins of the old process. Elimination of Bureaucracy Bureaucratic activities are activities that exist primarily for protection and information purposes. Activities of this type do not contribute to the content of the process output. Often, these activities take the form of review, approval, multiple signatures, inspection, and multiple copy distribution and filing. How do we identify bureaucracy? Ask the following questions: Why is there a check and balance in the process? Is there another check and balance which does the same thing? Does the activity aim to inspect or approve someone else's work? Does it require more than one signature? Does the 2nd, 3rd, etc. signer actually read the document? Why are multiple copies required? Are copies stored for no apparent reason? Do hard copies duplicate online accessible information? Do hard copies duplicate each other? Are copies sent to people who do not need the information? Does the activity cause a delay in the process? Is there unnecessary correspondence? Is the activity's sole purpose to protect someone? Is someone approving something he has already approved (e.g. approving capital purchases approved during the budget process)? You need to keep in mind however, that some bureaucracies are imposed by regulatory authorities and cannot be changed. These types of bureaucracies are called business rules or needs.

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Elimination of Duplication Duplication of effort usually creeps into the process over time. Rarely is duplication installed into the original process intentionally. Typically it happens because: no one realizes the duplication exists or why someones job now depends on the duplicate steps remaining in place lack of trust in the previous execution of the same activity Aside from the additional cost and resources associated with duplication, it can also cause other problems: multiple files/databases contain discrepancies checks and balances necessary to verify duplication are not in sync different results from duplicate activities (which are right?) personal systems set up outside of the process How do we eliminate duplication? Ask the following questions: Why does the duplication exist? How can duplication be eliminated while still meeting needs? Which of the duplicated activities provides the most value? Is the cost of duplication justified by the benefit? What does the duplication cost in terms of customer satisfaction?

Simplification Simplifying a process means reducing complexity wherever possible. Complexity makes a process difficult to manage and even more difficult to adjust, when necessary. Complex processes tend to be rigid and are difficult to understand, which may lead to a lack of shared understanding of the entire process. As processes become simpler, chances increase that the process will be executed accurately and efficiently. How do we simplify a process? By combining similar activities Abandoning collection of data for reasons that no longer exist Refining forms and reports to contain only necessary information Reducing the amount of handling (e.g. phone vs. mail) Re-sequencing of steps for smoother flow 46

Rearranging data in a more user-friendly format

Standardization For a given activity, standardization of work procedures is required to ensure the consistency of execution. Standardization of work procedures is essential to establishing an efficient process. Procedures should exist and be adhered to for most processes. They should be easy to understand and not open to interpretations. Training in the procedures should be provided to all employees involved in the process. How do we standardize a process? Do procedures exist for this process? Are the procedures current and updated regularly? Do people follow the procedures? Are the procedures clear and easy to understand? Has everyone involved in the process been trained in the procedures? Value-Added Assessment Non-value-added activities are obvious targets for elimination. How do we determine if an activity adds value? The following questions should be asked: Why is this activity performed? (Ask Why? five times.) Was this activity established to accommodate exceptions? Was this task established to accommodate errors? Does this task create a bottleneck in the process? If so, why? What would happen if we stopped performing this activity? Who would care if we stopped doing this activity? Does the reason for the activity still exist? Does the benefit of performing this activity outweigh the cost?

How to Cure a Handoff: When a handoff is identified, the following questions should be asked: Are there recording activities associated with this handoff?

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 Can the handoff and/or the recording activity be eliminated? Does a cost/benefit analysis justify the recording activity? Is there a better way to route the work to eliminate handoffs? Some other types of non-value added activities to watch out for are: Inspection/approval activities with no decisions following regarding the outcome of the action. Decisions that cause the process to loop back many times into the process. Too many approvals without adding value. Error-Proof the Process Typically, there are always opportunities to make errors in a process. The primary goal of error proofing is to minimize those opportunities. The number of ways to error-proof a process is limited only by ones imagination. How do we error-proof a process? Try to: Use check lists Reduce distractions Use different colors to identify different types of work Use computer programs that help prevent errors (e.g. spell-checkers) Write instructions down; simplify the language Create standard operating procedures Repeat instructions to ensure understanding Mark files clearly Provide standard routing/information slips Test forms on people who are not involved in the process Aim for self-explanatory forms Use envelopes with windows Bar-code documents, containers

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Process Time Reduction Cycle Time = Elapsed time to complete one pass of process Process Time = Actual work time to complete one pass of process In a business process, time is money. How do you reduce cycle time in a process? Performing activities in parallel instead of sequentially Changing activity sequence to reduce number of handoffs and amount of geographical movement Reducing interruptions (especially in bottleneck areas) Improving timing by knowing limitations (e.g. mail pickup times, cutoff times/dates) Reducing output movement by locating near the source Location analysis (is the activity being performed in the right place?) Setting and communicating priorities (reduce the impact of the squeaky wheel) Elimination of activities New Process Patterns Michael Hammer, author of the book Re-engineering the Corporation, has identified several patterns that redesigned processes tend to follow. The redesign efforts considered in developing the patterns were radical, transformational efforts seeking quantum improvements in process performance. Following is a summary of those patterns (adapted from Hammer seminar materials). Keep these in mind when developing your To Be process.

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Relocate Work to the Customer In this pattern, the customer does the work where it would be most effective and efficient. This involves providing expertise, resources, and tools for the customer to perform and monitor the activity. The pattern is applicable with simple activities, where a high degree of coordination, overhead, or transaction costs exist. Benefits: reduced coordination and overhead, elimination of intermediaries. Relocate Work from the Customer This pattern is the opposite of the previous one. Here the organization is able to provide better service to the customer, add value and optimize total process performance by doing some of the work the customer currently does. This can put you in a position to do work cheaper and better and to become the vendor of choice. Benefits: better planning and control, improved customer satisfaction, reduced coordination and overhead, and elimination of intermediaries. Minimize Number of Interconnections and Interfaces Application of this pattern will reduce complexity and reconciliation needs. By reducing interconnections between functions, customers, and/or suppliers, simplicity is achieved. Appropriate for processes that have multiple interconnections with extensive reconciliation or duplication. Benefits: consistency, improved service, and elimination of reconciliation functions. Reconfigure and Reorder Steps This involves rearranging the activities to reflect potential parallelism. By breaking the activities into steps, we identify those steps which take a long time and hold up other activities. This allows us to set up parallel activities, so the end point is reached sooner. Benefits: reduced cycle time. Integrate and Compress Tasks In processes that are made up of simple tasks, multiple tasks may be performed by the same person rather than few (i.e. caseworker approach). If tasks are more complex, a case-team approach may be more appropriate. Benefits: reduced the number of handoffs, wait time, process overhead, and overall process time; improved control of the process. Establish Coordination of Experts Appropriate when process is performed by a diverse set of experts performing very complex tasks. A case manager can coordinate the process and serve as the glue that holds people together. Benefits: eliminate wasted effort. Eliminate Coordination That Adds Little Value The opposite of the previous one, this pattern involves elimination of coordination activities that provide little or no value to the process. Applicable for less complex processes where bottlenecks appear due to coordination activities. Benefits: faster cycle time and improved service.

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Decrease Range of Alternatives This idea is appropriate when there are high costs associated with information collection and analysis. The premise is that sacrificing precision will enhance simplicity and convenience. Rather than assuming more accurate is better, compare cost of precision to benefit. Benefits: reduced information collection overhead, faster decision making, and reduced complexity. Increase Range of Alternatives Again, the opposite of the previous pattern, this one is appropriate when the cost/benefit analysis of higher degrees of accuracy justifies the additional work involved. Benefits: increased customer focus and service, improved resource utilization. Make Decisions Early For Efficiency of Labor and Capital This pattern means anticipating rather than reacting. Applicable to processes with high resource costs and slow decision making. Benefits: efficient resource utilization, reduced process management and control overhead. Make Decisions Late For Flexibility This pattern, again the opposite of the previous one, encourages decision making as late in the process as possible for those decisions that involve fluctuating costs. Benefit: allows flexibility in changing conditions. Shattering Assumptions As processes evolve, underlying assumptions lead to spoken and unspoken rules that impede the efficiency of the process. Assumptions are difficult to identify because they are embedded in our minds as a multitude of unchallenged beliefs. How de we identify the underlying assumptions and challenge the validity of each one? Michael Hammer has developed a six step methodology which leads us to the rule that governs the assumption. 1. Define the problem 2. Find the rule (ask why until you can no longer answer it) 3. Identify the assumption (ask why the rule exists) 4. Question the validity of the assumption 5. If assumption is found invalid, rewrite the rule 6. If assumption is found to be valid, how can we invalidate it or work around it? After applying some of the previous improvement ideas to the process, there are probably a few remaining problem areas or activities in the process that have not been resolved. We can look for assumptions in these activities.

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Appendix O DEVELOP PROCESS METRICS Process metrics help in determining whether the process is healthy. If there are good process related metrics in place and the process is not working appropriately, the metrics you choose should indicate this. Three Types of Metrics 1. Input the capability to perform a specific activity, behavior, or condition 2. In-Process The process of the specific activity, behavior, or condition to a particular situation 3. Output The performance results of the activity, behavior, or condition on achieving the stated goals of the business For Example- Engineering Change (EC) Process Metrics might be: 1. Input Number of Requests for Engineering Change (RFEC) 2. In-Process Turnaround time (How long does it take to process a RFEC?). 3. Hand-offs (How many times does the RFEC change hands in the process?) 4. Output Number of ECs; Cost of an EC. Characteristics of good Metrics 1. Relevance - Communicates a clear message or information 2. Completeness - Makes important factors visible 3. Timeliness - Indicates changes or trends in real time 4. Elegance - Provides maximum insight from minimum data

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Some Specific Performance Metrics

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The following are examples of process and result oriented metrics. When developing metrics keep in mind which type is the most appropriate to measure your process.

Appendix P Mapping Symbols The following symbols are used in mapping to depict a process. The description within the activity should be 3 to 6 words, starting with a verb.

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Appendix Q Mapping Techniques The following are some examples of mapping techniques.

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