2011 business process management

Business Process Management

Baldrige Criteria

Identify Customers and Their Needs/Requirements(Customer and Market Knowledge) 3.1Input

Establish Mission, Vision, Values, and Leadership System(Leadership) 1Driver

Define Measures of Successand Collect Data (Measurement,

Analysis, and Knowledge Management)(Customer and Market Knowledge)

Develop Goals, Key SuccessFactors, and Strategies Tied

to Performance Measures(Strategic Planning)

2Goal/

Strategies3.1

4Data/Measures

Achieve Excellent Levels and Trends in Measures of Product/Service Outcomes, Customer Satisfaction,

Financial/Market Results, Workforce Results, Process Effectiveness, and Leadership Results

(Results)

Continually Meet or Exceed CustomerRequirements and Desires

(Customer Relationships and Satisfaction)

Create and Manage Human Resource Systems to Achieve High Performance

(Workforce Focus)

Define, Measure, Control, and Continuously Improve Key Work Processes

(Process Management)

3.2

5

6

Results

Processes/Systems

7The Pocket Guide to Baldrige Award

Criteria

Mark Graham Brown

Why Business Process Management?

ขยายความชดัเจน

Customer Value

Customer Value

Customer Value


Functional Management

What are objectivesof these functions?

Sales Marketing Production Logistics Finance & Legal

SalesVolume,

etc.

Market Share,

etc.

Overall Plant

Effeciencyetc.

Delivery &

Inventory Cost , etc.

ROI, Costof Capital,

Compliances, etc.


How do Customers Go Through Your Organization?

Product/Service Quotation Process

Sales Marketing Production Logistics Finance& Legal

Product/Service Delivery Process

Product/Service Payment Process

Proc

ess

Obj

ecti

ves

Functional Objectives

Stra

tegi

c O

bjec

tive

s of

the

Org

aniz

atio

n


Pur

chas

ing

Dep

artm

ent

Mat

eria

ls D

epar

tmen

t

Fina

nce

Dep

artm

ent

Functions drivethe business

Processes are acknowleeged, but Function dominate

Processes drivethe business

CU

STO

ME

R

Pur

chas

ing

Dep

artm

ent

Mat

eria

ls D

epar

tmen

t

Fina

nce

Dep

artm

ent

Procure to Pay

Order to Cash

Recruit to Retire

Moving from Functional to Process View





Without changing our pattern of thoughts,we will not be able to solve the problemwe created withour current pattern of thoughts.

Albert Einstein


Process Mapping

How do you make a Cup of Coffee?

The Nescafe Process

The Expresso Machine Process

The Starbucks Process

A process converts inputs into outputs

What is a Process?

Core The 5-7 high level Processes in an

Organization that can have a profound impact on a Strategic Business Objectives.

Key Sub The Multiple Lower level Processes that

Constitute a Core Process.Enabling

Processes that may not have an Impact on Customer Satisfaction but are Vital for the Performance of the Organization.

Types of Business Processes

Process mapping: Visually represents the work process

Identifies problem areas and opportunities for process improvement

Provides a common understanding of the entire process and specific roles and contributions of process participants.

Before you can improve a process, you must understand it.

Why Process Mapping?

Process maps are good for: Streamlining work activities and telling new

people, as well as internal and external customers, "what we do around here."

Helping in the effort to reduce cycle time, avoid rework, eliminate some inspections or quality control steps, and prevent errors.


Process maps are a great problem solving tool: Helps us determine what is the

problem/what it is not


1. Determine the Boundaries 2. List the Steps 3. Sequence the Steps 4. Draw Appropriate Symbols 5. System Model 6. Check for Completeness 7. Finalize the Flowchart

7 Step to Process Mapping

Step 1: Determine the Boundaries

1. Bracket the process.2. Think about the process of making coffee.

I could start by growing coffee beans, or purchasing a can of ground beans, or reaching into the kitchen cabinet.

3. After proceeding, you might find your boundaries are too large or too small; that’s okay, just readjust.

1. Use sticky notes for brainstorming.2. Have everyone put stuff up without

editing or commenting.3. You’ll find that steps are at different

granularities; later you’ll have to organize hierarchically. For instance, “plant seed” might be one, but within that would be “prepare the soil,” “punch a hole in the dirt,” “place seed,” etc.

Step 2: List the Steps

1. The steps are on sticky notes: Move them around.

2. Engage in discussion with other group members.

Step 3: Sequence the Steps

1. Keep it simple to start. Use just the bare number of different symbols.

2. See next slide for basic shapes of ovals, squares, diamonds, and arrows.

Step 4: Draw Appropriate Symbols

These are theshapes we’ll beneeding to usefor process mapping.

Step 4: Draw Appropriate Symbols

1. Step back and consider impacts from and to other parts of the system.

2. Reach back to the SIPOC model and ensure appropriate inputs included.

3. Re-evaluate the level of granularity for the process; is the current granularity appropriate for what you are trying to accomplish?

Step 5: System Model

SIPOC

1. Run through the process as mapped and ensure it makes sense.

Step 6: Check for Completeness

1. Recheck for redundancy; add missing steps.

2. Ensure group consensus.3. Take a digital picture (largest image size

possible) of process map.4. Record. While a high-powered program is

coming, for the time being, use Visio or some other available software program.

Step 7: Finalize the Flowchart

1. Here a "department" or "agency" dimension is added horizontally along the top of the chart.

2. Draw vertical lines to separate the functional boundaries.

3. When the flow moves from one function to another, a horizontal line denotes this.

4. Draw the sequence of activities from top to bottom.

5. Use the task and decision-making symbols as before and always connect symbols with arrows indicating the direction of flow.

Deployment Flow Chart

Process Profile Work Sheet for ERP

Work Flow Survey for ERP

Process Flowchart for ERP

Process Mapping Best Practices

Best Practices

Mistake # 1: Map all the trees but miss the forest

Foreground goals to create focus

Mistake # 2: Focus on the seller, instead of the customer

Determine how to create value for the customer

Value to the customer is identified

Comparison

Mistake # 3: This process does not specify measureable results

Assessment metrics incorporated

Link support tools, skills, and competencies

Engage your people in process mapping

EFFECTIVE LEARNING:

Source : National Training Laboratory, U.S.A.

ENJOY !

Process Mapping

Process Mapping for Lean Six Sigma

6 Sigma Process Mapping Steps

1. Identify the process and its primary inputs and outputs (30,000 ft. view)

2. Identify all steps in the process (5,000 ft. view)

3. List output variables at each step

4. List input variables (and operating parameters) at each step

5. Classify each input variable as Controllable, Noise or a Standard operating procedure

Step 1: (High Level) Identify the Process and Inputs/Outputs

Identify external inputs Raw materials Energy requirements Incoming information

Identify end customer requirements (outputs, or Y’s) on-time correct quantity perfect quality CTQ


Examples - Step 1

MoldingStamping CPrep CSolvent CNozzle S

CoverageThicknessHardnessColorLeak test

Outputs

Manufacturing

Price & availabilityOrder confirmation Promise dateOrder number

Order EntryEDIFAXEmail

OutputsNon- Manufacturing

Inputs

Inputs

Step 2: Identify All Steps in the Process Identify the process flow steps

Tips – Try to show in 3 – 8 Steps Start with the end and the beginning. Then, fill in

the middle. Include all value-added and non value-added

steps Process steps, inspection/test, rework, scrap points

WALK THE PROCESS! A Process Map isn’t done on the computer! While you walk the process you will also be

identifying x’s and y’s (next steps)


Examples – Step 2

STEP 1Answer Phone / Greet Customer

STEP 2Determine Part Number / price / need date

STEP 3Get PO #

STEP 5Complete order worksheet

STEP 6Input order on computer

STEP 7Verify order info - fax to customer / transmit to plant

STEP 4Identifyship to address, method of shipment

STEP 8Verify plant receiptof order

Step 3: List Output Variables

Include all output variables (the y’s). Defines the scope and objectives of the process Indicates where measurements are taken during the

process Labels and differentiates between what is and what is not

currently measured Defines “In-Process” parameters (y’s) which are measured

UPSTREAM from the final output (Y)

Tip: May be easier to list the outputs and inputs (Steps 3 and 4) by step before moving on to the next step


STEP 1Answer Phone / Greet Customer

STEP 2Determine Part Number / price / need date

STEP 3Get PO #

STEP 4Identifyship to address, method of shipment

OUTPUTS

•Prompt answer•Live body

•Customer info•Pricing•Availability

•Customer PO

•Ship to address•Method of shipment

Examples – Step 3


STEP 7Verify order info - fax to customer /transmit to plant



•Complete order info from customer

•Order in computer•All fields completed•Promise date•Printed confirmation

•Correct info•Confirmation to customer•Order sent to plant

•Completed order entry

OUTPUTS

Examples – Step 3 (continue)

List all input variables (x’s or factors)


Step 4: List Input variables

Classify the input variables CONTROLLABLE INPUTS (C) NOISE INPUTS (N) STANDARD OPERATING PROCEDURES (S)

NOTE: Further experimentation confirms the estimated classification! THESE CAN CHANGE!

Step 5: Classify Input Variables


CONTROLLABLE INPUT variables (C)Input variables (x’s or factors) that can be changed to see the effect on output variables. These are sometimes called Independent Variables

x’s that are critical (Key Process Input Variables)

x’s that have no effect


NOISE (N)Inputs that impact the outputs but are:1. Uncontrollable2. Too costly to control3. Preferably not controlled

Example - An environmental variable such as humidity


STANDARD OPERATING PROCEDURE (S)

Inputs that are defined by operating procedures that may be considered “common sense activities”

Examples: Training, Cleaning, Preventive Maintenance


Examples – Step 4 & 5

•Order worksheet form C •Customer supplied info N

•Order worksheet C•Computer entry screens C•Lead time info from mfg. N

•Printed confirmation sheet C•Customer contact info N•Confirmation procedure C

•Correct info in computer C•Mfg .plant contact C

INPUTS

•Complete order info from customer

•Order in computer•All fields completed•Promise date•Printed confirmation

•Correct info•Confirmation to customer•Order sent to plant

•Completed order entry

OUTPUTS



STEP 7Verify order info - fax to customer /transmit to plant


Team Effort Process experts/ specialists/ engineers Operators Supervisors Technicians

Possible Inputs to Mapping Brainstorming Operator manuals Specifications Operator experience 6M’s

• Man, Machine (Equipment), Method (Procedures), Measurement, Materials, Mother Nature (Environment)

Keep it Simple – Use Excel to allow copying into next tool (Cause and Effect matrix)

Preparing the Process Map

Process Map Example

Process Mapping Provides Inputs to Cause and Effect Matrix Potential Failure Mode Effect Analysis Control Plan Capability Studies Experimentation

Process Mapping helps us gain process knowledge!

Process Map Summary

Process Improvement Methodology

LEAN MANUFACTURING:Reduce Lead Time by eliminating waste in

the Value StreamProvides the Game Plan and Plays

SIX SIGMA:Reduce process variationProvides the Play by Play Analysis and

Instant Replay

Lean or Six Sigma?

Lean or Six Sigma?

LEAN MANUFACTURING: Flow FocusedLean cannot bring a process under

statistical control

SIX SIGMA: Problem FocusedCan not dramatically improve process

speed or reduce invested capital

NEED BOTH!

Lean Six Sigma

Lean 5 Principles

Lean Tools

Lean Origins

Toyota Production System

Six Sigma

Six Sigma Origins

Process Maps or Flowcharts: Graphical representation of a process or system showing process or product transformation. In other words, what is being done, by who and what choices are being made. (Ideally process maps should include cycle times, defect information, etc.)

X-Y Matrix: A ranking method used to prioritize process inputs (X’s) to process outputs (Y’s

Fishbone or Cause and Effect Diagrams: Provides a starting point for problem analysis. Problems are diagrammed into categories of Machinery, Material, Methods and Labor (Manpower).

Six Sigma Tools

Check Sheets: Checklists of what is to be accomplished, etc..

Scatter Diagrams: A graphical representation between two measurements (variables).

Pareto Charts: A method for organizing errors based on the number of errors created by a particular attribute (ex. Machine, Supplier, Product, Individual, etc.).

FMEA’s (Potential Failure Mode and Effects Analysis): A detailed document which identifies ways in which a process or product can fail to meet critical requirements.

Six Sigma Tools (Cont.)

Lean Six Sigma DMAIC Phases

Customer’s Perspective

Six Sigma - Define

Six Sigma - Measure

Analyze

Improve

Control

Applying Lean Six Sigma

LSS Continuous Improvement

Xerox Lean Six Sigma

Xerox Lean Six Sigma

BACKUP

SIX SIGMA

Statistical Perspective

Quantitative Perspective

Quantitative Perspective

Operational Perspective

DMAIC Phases

Define

COPIS

Measure

Measure

10 Key Elements

Measure

Analyze

Value Stream Mapping

Fishbone Analysis

Fishbone Diagram

Scatter Plots

Improve

Improve

Pilot Solution

Control

SIX SIGMA

Six Sigma

Six Sigma

Six Sigma

Six Sigma

Six Sigma

Six Sigma

Six Sigma

Six Sigma

Six Sigma

DMAIC Methodology

DMAIC Methodology

DMAIC Methodology

DMAIC Methodology

DMAIC Methodology

DMAIC Methodology

DMAIC Methodology

DMAIC Methodology

DMAIC Methodology

DMAIC Methodology

DMAIC Methodology

DMAIC Methodology

DMAIC Methodology

DMAIC Methodology

DMAIC Methodology

DMAIC Methodology

DMAIC Methodology

DMAIC Methodology

DMAIC Methodology

DMAIC Methodology

DMAIC Methodology

DMAIC Methodology

DMAIC Methodology

DMAIC Methodology

DMAIC Methodology

DMAIC Methodology

DMAIC Methodology

DMAIC Methodology

SYSTEMS THEORY

Systems Theory

The whole is greater than the sum of its parts and is seen as a set of interrelating, interacting hierarchy of sub-systems some of which may be self-organizing.

Systems Theory sees our world in terms of 'systems', where each system is a 'whole' that is more than the sum of its parts, but also itself a 'part' of larger systems.

The concept that all people, places, things and forces in the universe are integrated into a hierarchy of mutually influential matter and energy.

Systems Theory for the Rest of Us

Muck about in one place, and you’ll impact something somewhere else, something you likely hadn’t considered.

It’s all one big whole. The caution: When working on your piece of the

pie, attempt to see the relationships and impacts elsewhere.

LATEST LEAN SIGMA

Lean Six Sigma Cycle

Define the problem or requirements. Measure the process and gather data associated

with the problem or requirements. Explore the data to identify a cause and effect

relationship between variables. Develop a new process so that the problem is

eliminated and the new results meet the new requirements.

Implement the new process under a control plan.

DMEDI process

Define (Map Current State)

Measure (Lean Metrics)

Explore (Value Stream)

Develop (Map Future State)

Implement (Kaizen)

DMEDI process

THE CUSTOMER IS

ALWAYS RIGHT !

Sometimes confused, mis-informed, rude,stubbon, changeable, and even down right stupid

BUT NEVER WRONG..
