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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 Six Sigma Organization
Optimized Managed
DMAIC , DFSS
Defined Repeatable
BPMS Initial Stage of Organization
Chaotic
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
Measures Legal
Lessee
(Process Measures Except Where Noted)
Process Owner:
Date:
Monitoring
Response Plan
Standard, Spec. Or Target
Data Collection Method
Immediate Control/Fix
Process Improvement
8
3. Process Review Procedures
% Accurate
Avg. # Handoff
Process Dashboard
Control Chart
A
B
C
D
Current Normalized Yield – FP
Yield Trends For Core Process 4.0 100%
4.1 % 92
4.2 80
4.3 99
4.4 73
E
Call Type
Normalized RTP First Pass
4.5 96
90%
0%
1st Qtr
PM Team
2nd 3rd Qtr Qtr
4th Qtr
9
4. Aligned Accountability And Commitment-Reinforcing Practices
Partnership Bonus
Process Team Performanc e
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
1 2
Step Description
Create Process Mission Document Process
3
Document Customer & Process requirements
4
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
Clearly
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.
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
Customer Calls
Process
Complaint Handling Process
End
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
Financial
Effective Resolution of Complaints Faster Resolution of Complaints
Process
Capabilities/Learning/Innova tion
Reduction in % of Complaints Reduction in % of Repeat Complaints
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
Process ➤ Effectiveness ➤ CTQs Or Defect Occurence ➤ Timeliness/Speed ➤ Reliability/Accuracy ➤ Convenience ➤ Treatment/Interaction ➤ Tangibles ➤ Failure Recovery ➤ Efficiency
Financial ➤ ➤ ➤ ➤
Sales Net Income ROI/ROA Cost-Per-Unit Processed
Learning/Innovation/People/ ➤ New Products ➤ Competencies Acquired ➤ Continuous Learning & Transfer of Best practices ➤ Job Satisfaction ➤ Training
31
Process Mission Purpose
Importance
Effective designing of training programs to enhance performance improvement .
Improve employee skill sets. Enhance operational performance. Contribute to employee retention and loyalty
Boundaries
Process Goals
Process Includes Process Excludes
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
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
Requirements
Boundary
Boundary
Requirements
S
I
P
O
C
Suppliers
Inputs
Process
Outputs
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
Exit Management Example Of Deployment Flowcharting
Submit Resignation
Receive completed no dues
Manager Delete Process specific ID
Business HR
Advise Payroll to stop Salary Payment Conducts Exit Interview Formalities
Technology
Delete Email ID’s
Telecom
Revokes Dialcomm Card
Receive Laptop
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)
40
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
Complaint
N
QR
Y Understand Nature of 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
Log In Customer Complaint
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
42
Format: Standard Operating Procedure STANDARD OPERATING PROCEDURE
Process: Company
1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0
TITLE
SOP Number
Revision
Page
Effective Date
Purpose Scope Materials/Equipment Procedures Definitions Roles and Responsibilities Safety Precautions Formats and Records
43
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
“ I HATE FILLING OUT THIS FORM ”
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 “
“ I DON’T UNDERSTAND BANKING JARGON “
“ AMBIGUOUS INSTRUCTIONS “
Customer(s) Requirements Key Issues Must Be Translated Into Customer Requirements
“ 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 “
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
Time
Resolve complaints quickly
Every time I have the same complaint
Repeated Complaints
Ensure complaints do not re-occur
When I complaint the people do not understand
Agent Understanding
Increase knowledge of agents
Agents behave rudely
Agents Empathy
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…
Customer(s) Requirements
“ I want the pizza that I ordered”
Accuracy
Right pizza to right person
“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
Measures
Example
Business
Customer Driven
On-Time Delivery
Subprocess
Internal
Cost/Unit Produced
Microprocess
Control Metrics
Time In Queue
53
Input, Process And Output Measures Input Measures
Process Measures
Output Measures
The Key Quality And Delivery Requirements Placed On Your Suppliers.
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 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
Resolved Complaint
Agent Training Completion
Process (s) Requirements
Unit of Measure
Measures
Resolve complaints quickly
Time
TAT for Complaints
Ensure complaints do not re-occur
Percentage
% of Repeat complaints
Increase knowledge of agents
Knowledge Scale
Knowledge Scores
Improve Agent Skills
Agents Empathy
Call Quality 56
CTQ Tree with Input, Process and Output Measures Example Of1.0Step 4 and Deliver Pizza Process: - Produce
CTQ
Customer Requirements
Process Specific Customer Requirements (Specifications)
Accuracy
Right pizza to right person
Politeness
Pizza person is polite
100%
Timeliness
Pizza delivered on time as promised to customer
<45 mins.
100%
Output Measurements
Y1: % of wrong pizzas delivered
Process Measurements
Input Measurements
X1.1: % orders matched (post oven)
Y2: % of complaints
Y3: Time - order taken to pizza delivered
X3.1: Cook time
X3.4: Order volume
X3.2: Oven temperature X3.3: Delivery time
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
Operators
POwners
Operators
POwners
Operators
POwners
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
Measures Legal
Lessee
(Process Measures Except Where Noted)
Process Owner:
Date:
Monitoring
Response Plan
Standard, Spec. Or Target
Data Collection Method
Immediate Control/Fix
Process Improvement
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
To Provide A Clear Way To Measure The Characteristic
Identifies What To Measure
Identifies How To Measure It
Makes Sure That No Matter Who Does The Measuring, The Results Are The Same
71
Operational Definitions Are Critical For DPU, DPMO And Six Sigma Calculation
Item Unit
Definition
Example
The Item Produced Or Processed. It Is The Specific Product Or Service Used To Evaluate Whether Or Not Customer Requirements Are Met
➤ Bill Or Invoice
Defect
Any Event That Does Not Meet The Specifications Of A CTQ
➤ Incorrect Address On A Bill
Defective
Any Unit That Contains One Or More Defects. Such a Unit Is Called A “Defective Unit”
➤ Bill With An Incorrect Address
Any Event Which Can Be Measured That Provides A Chance Of Not Meeting A Customer Requirement
➤ Name, Address, Item Description And Total Amount Charged On A Bill. Each Represents An Opportunity For A Defect
Defect Opportunity
➤ Customer Inquiry
➤ Bill With Two Defects, Incorrect Address And Total Amount Due
72
Example of Data Collection-Level Visa Processing time
China
India
Bangalore
Pune
Designation 1
Visa Type 1
Kolkatta
Designation 2
Visa Type 2
Sri Lanka
Pakistan
Designation 3
Visa Type 3
Hyderabad
Designation 4
Visa Type 4
Collect data at this level 73
Data Collection Format - Sample No of Data Points Done By Visa Number
Date of Collection Visa Type
City
Country
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
Develop Operational Definitions And Procedures Operational Definition
Measure Billing Accuracy
Type Measure
Type Data
Output
Discrete
What
Other Conditions To Record
How
Collecting/ Recording (Attach Data Form) Date_____
Inaccurate = Bill with any of 5 fields not matching customer order form
Reconcile invoice with customer order for 5 fields
Sampling
What
Where
How Many
When
Region_____
Invoice/Bill
Product Defect 1 2 3 1 II 2 IIII IIII IIII 3 III 4 III III
Accts. Receivable dept. – invoices prior to be mailed
Total
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
Please Sketch Out The Preliminary Data Display For Region
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
# of Defects
# of Defects Date
Defect type
75
GE Capital Services Proprietary
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
Long time is taken for complaints
<=5 hours
TAT for Complaints
Every time I have the same complaint
<10%
% of Repeat complaints
When I complaint the people do not understand
>=80%
Agents behave rudely
>=80%
Process Measurements
Input Measurements
Knowledge Scores Call Quality
78
BPMS Methodology Step 7: Process Performance Monitoring
Measures
Output Measures (Y) and Input/ Process Measures (X)
Process Contingenc y
Monitoring
Control Limits, Specifications
TAT for Complaints
<5hrs
% of Repeat complaints
<10%
Knowledge Scores
>80%
Call Quality
>80%
Monitor Item
Time
Frequency
Every Complaint
Responsibility
ABC
Source
Contingency Plan
Workflo w
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
Type Of Data Discrete
Continuous
Variation For A Period Of Time
Variation Over Time
➤ Pareto Diagram ➤ Bar Charts ➤ Pie Charts
➤ Run Charts ➤ Control Charts
➤ Histograms/Frequency
➤ Run Charts ➤ Control Charts
Diagrams ➤ Box Plots ➤ Multi-Vari Charts
– – – –
p-Chart c-Chart u-Chart Individual Measurement
– 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
Should be customer specified In Absence of customer specified specifications
Limits
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
Repeat Complaints
100
16
90
90
80
12
70
11
10
60
TAT Spec
50 40
%
Minutes
15
14
8 6
30
30
20
20.4
30 27.4
30
30 20.4
10
4
8
9
5
5
May
June
% Repeat Spec 5
5
July
Aug
2 0
0 1stAug
2nd Aug
3rd Aug Day
4th Aug
Month
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
Dashboard Indicators
External Environmental Information
Internal Environmental Information
Continue Control Actions
Yes
Process Review
Satisfied With Indicators?
No Plan & Implement Improvement Actions for Unsatisfactory Indicators
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
15
14 12
11
%
10 8 6 4
8
9
5
5
May
June
% Repeat Spec 5
5
July
Aug
A look at the dashboard tells us that the % repeat complaints offers more scope for improvement that Turn Around time
2 0 Month
96
Approaches To Change 1.
Troubleshoot Or Quick Hit – Just Do It!
2.
Process Improvement – DMAIC
3. Process Design/Redesign/Reengineering – DMADV 4. Change Acceleration Process ( CAP ) – Can Be Used With All The Above Methodologies 97
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 Six Sigma Organization
Optimized Managed
DMAIC , DFSS
Defined Repeatable
BPMS Initial Stage of Organization
Chaotic
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
Measures Legal
Lessee
(Process Measures Except Where Noted)
Process Owner:
Date:
Monitoring
Response Plan
Standard, Spec. Or Target
Data Collection Method
Immediate Control/Fix
Process Improvement
8
3. Process Review Procedures
% Accurate
Avg. # Handoff
Process Dashboard
Control Chart
A
B
C
D
Current Normalized Yield – FP
Yield Trends For Core Process 4.0 100%
4.1 % 92
4.2 80
4.3 99
4.4 73
E
Call Type
Normalized RTP First Pass
4.5 96
90%
0%
1st Qtr
PM Team
2nd 3rd Qtr Qtr
4th Qtr
9
4. Aligned Accountability And Commitment-Reinforcing Practices
Partnership Bonus
Process Team Performanc e
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
1 2
Step Description
Create Process Mission Document Process
3
Document Customer & Process requirements
4
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
Clearly
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.
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
Customer Calls
Process
Complaint Handling Process
End
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
Financial
Effective Resolution of Complaints Faster Resolution of Complaints
Process
Capabilities/Learning/Innova tion
Reduction in % of Complaints Reduction in % of Repeat Complaints
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
Process ➤ Effectiveness ➤ CTQs Or Defect Occurence ➤ Timeliness/Speed ➤ Reliability/Accuracy ➤ Convenience ➤ Treatment/Interaction ➤ Tangibles ➤ Failure Recovery ➤ Efficiency
Financial ➤ ➤ ➤ ➤
Sales Net Income ROI/ROA Cost-Per-Unit Processed
Learning/Innovation/People/ ➤ New Products ➤ Competencies Acquired ➤ Continuous Learning & Transfer of Best practices ➤ Job Satisfaction ➤ Training
31
Process Mission Purpose
Importance
Effective designing of training programs to enhance performance improvement .
Improve employee skill sets. Enhance operational performance. Contribute to employee retention and loyalty
Boundaries
Process Goals
Process Includes Process Excludes
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
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
Requirements
Boundary
Boundary
Requirements
S
I
P
O
C
Suppliers
Inputs
Process
Outputs
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
Exit Management Example Of Deployment Flowcharting
Submit Resignation
Receive completed no dues
Manager Delete Process specific ID
Business HR
Advise Payroll to stop Salary Payment Conducts Exit Interview Formalities
Technology
Delete Email ID’s
Telecom
Revokes Dialcomm Card
Receive Laptop
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)
40
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
Complaint
N
QR
Y Understand Nature of 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
Log In Customer Complaint
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
42
Format: Standard Operating Procedure STANDARD OPERATING PROCEDURE
Process: Company
1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0
TITLE
SOP Number
Revision
Page
Effective Date
Purpose Scope Materials/Equipment Procedures Definitions Roles and Responsibilities Safety Precautions Formats and Records
43
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
“ I HATE FILLING OUT THIS FORM ”
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 “
“ I DON’T UNDERSTAND BANKING JARGON “
“ AMBIGUOUS INSTRUCTIONS “
Customer(s) Requirements Key Issues Must Be Translated Into Customer Requirements
“ 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 “
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
Time
Resolve complaints quickly
Every time I have the same complaint
Repeated Complaints
Ensure complaints do not re-occur
When I complaint the people do not understand
Agent Understanding
Increase knowledge of agents
Agents behave rudely
Agents Empathy
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…
Customer(s) Requirements
“ I want the pizza that I ordered”
Accuracy
Right pizza to right person
“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
Measures
Example
Business
Customer Driven
On-Time Delivery
Subprocess
Internal
Cost/Unit Produced
Microprocess
Control Metrics
Time In Queue
53
Input, Process And Output Measures Input Measures
Process Measures
Output Measures
The Key Quality And Delivery Requirements Placed On Your Suppliers.
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 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
Resolved Complaint
Agent Training Completion
Process (s) Requirements
Unit of Measure
Measures
Resolve complaints quickly
Time
TAT for Complaints
Ensure complaints do not re-occur
Percentage
% of Repeat complaints
Increase knowledge of agents
Knowledge Scale
Knowledge Scores
Improve Agent Skills
Agents Empathy
Call Quality 56
CTQ Tree with Input, Process and Output Measures Example Of1.0Step 4 and Deliver Pizza Process: - Produce
CTQ
Customer Requirements
Process Specific Customer Requirements (Specifications)
Accuracy
Right pizza to right person
Politeness
Pizza person is polite
100%
Timeliness
Pizza delivered on time as promised to customer
<45 mins.
100%
Output Measurements
Y1: % of wrong pizzas delivered
Process Measurements
Input Measurements
X1.1: % orders matched (post oven)
Y2: % of complaints
Y3: Time - order taken to pizza delivered
X3.1: Cook time
X3.4: Order volume
X3.2: Oven temperature X3.3: Delivery time
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
Operators
POwners
Operators
POwners
Operators
POwners
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
Measures Legal
Lessee
(Process Measures Except Where Noted)
Process Owner:
Date:
Monitoring
Response Plan
Standard, Spec. Or Target
Data Collection Method
Immediate Control/Fix
Process Improvement
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
To Provide A Clear Way To Measure The Characteristic
Identifies What To Measure
Identifies How To Measure It
Makes Sure That No Matter Who Does The Measuring, The Results Are The Same
71
Operational Definitions Are Critical For DPU, DPMO And Six Sigma Calculation
Item Unit
Definition
Example
The Item Produced Or Processed. It Is The Specific Product Or Service Used To Evaluate Whether Or Not Customer Requirements Are Met
➤ Bill Or Invoice
Defect
Any Event That Does Not Meet The Specifications Of A CTQ
➤ Incorrect Address On A Bill
Defective
Any Unit That Contains One Or More Defects. Such a Unit Is Called A “Defective Unit”
➤ Bill With An Incorrect Address
Any Event Which Can Be Measured That Provides A Chance Of Not Meeting A Customer Requirement
➤ Name, Address, Item Description And Total Amount Charged On A Bill. Each Represents An Opportunity For A Defect
Defect Opportunity
➤ Customer Inquiry
➤ Bill With Two Defects, Incorrect Address And Total Amount Due
72
Example of Data Collection-Level Visa Processing time
China
India
Bangalore
Pune
Designation 1
Visa Type 1
Kolkatta
Designation 2
Visa Type 2
Sri Lanka
Pakistan
Designation 3
Visa Type 3
Hyderabad
Designation 4
Visa Type 4
Collect data at this level 73
Data Collection Format - Sample No of Data Points Done By Visa Number
Date of Collection Visa Type
City
Country
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
Develop Operational Definitions And Procedures Operational Definition
Measure Billing Accuracy
Type Measure
Type Data
Output
Discrete
What
Other Conditions To Record
How
Collecting/ Recording (Attach Data Form) Date_____
Inaccurate = Bill with any of 5 fields not matching customer order form
Reconcile invoice with customer order for 5 fields
Sampling
What
Where
How Many
When
Region_____
Invoice/Bill
Product Defect 1 2 3 1 II 2 IIII IIII IIII 3 III 4 III III
Accts. Receivable dept. – invoices prior to be mailed
Total
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
Please Sketch Out The Preliminary Data Display For Region
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
# of Defects
# of Defects Date
Defect type
75
GE Capital Services Proprietary
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
Long time is taken for complaints
<=5 hours
TAT for Complaints
Every time I have the same complaint
<10%
% of Repeat complaints
When I complaint the people do not understand
>=80%
Agents behave rudely
>=80%
Process Measurements
Input Measurements
Knowledge Scores Call Quality
78
BPMS Methodology Step 7: Process Performance Monitoring
Measures
Output Measures (Y) and Input/ Process Measures (X)
Process Contingenc y
Monitoring
Control Limits, Specifications
TAT for Complaints
<5hrs
% of Repeat complaints
<10%
Knowledge Scores
>80%
Call Quality
>80%
Monitor Item
Time
Frequency
Every Complaint
Responsibility
ABC
Source
Contingency Plan
Workflo w
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
Type Of Data Discrete
Continuous
Variation For A Period Of Time
Variation Over Time
➤ Pareto Diagram ➤ Bar Charts ➤ Pie Charts
➤ Run Charts ➤ Control Charts
➤ Histograms/Frequency
➤ Run Charts ➤ Control Charts
Diagrams ➤ Box Plots ➤ Multi-Vari Charts
– – – –
p-Chart c-Chart u-Chart Individual Measurement
– 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
Should be customer specified In Absence of customer specified specifications
Limits
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
Repeat Complaints
100
16
90
90
80
12
70
11
10
60
TAT Spec
50 40
%
Minutes
15
14
8 6
30
30
20
20.4
30 27.4
30
30 20.4
10
4
8
9
5
5
May
June
% Repeat Spec 5
5
July
Aug
2 0
0 1stAug
2nd Aug
3rd Aug Day
4th Aug
Month
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
Dashboard Indicators
External Environmental Information
Internal Environmental Information
Continue Control Actions
Yes
Process Review
Satisfied With Indicators?
No Plan & Implement Improvement Actions for Unsatisfactory Indicators
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
15
14 12
11
%
10 8 6 4
8
9
5
5
May
June
% Repeat Spec 5
5
July
Aug
A look at the dashboard tells us that the % repeat complaints offers more scope for improvement that Turn Around time
2 0 Month
96
Approaches To Change 1.
Troubleshoot Or Quick Hit – Just Do It!
2.
Process Improvement – DMAIC
3. Process Design/Redesign/Reengineering – DMADV 4. Change Acceleration Process ( CAP ) – Can Be Used With All The Above Methodologies 97
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