BPMSGapAnalysis.ppt

GapAnalysis BusinessProcessManagement 6 2 ScorecardstoManageResults IndicatorsofProcessPerformance CoreandEnablingProcesses Critical to CustomerOutputs CustomerFocusedObjectives C S I P O Scorecards Whatwillbemeasured Gap Cluster Cluster Project Project Project Project SixSigmaProjects Whatprojectsareneededtoclosethegaps Whatarethekeymeasuresofprocessperformance WhatarethegapsbetweenprocessperformanceandCTCobjectives 6 3 Whatdoyoumeasure Y f x1 x2 xn WhataretheY s measuresoftheoutputsofyourbusinessprocess Y sareimportanttoyourcustomerortheyaredirectlyrelatedtowhat simportanttoyourcustomerWhataretheX s measureswithinyourbusinessprocessthatcorrelatetotheoutputmeasures Y InternalanduncontrollableInternalandcontrollable 6 4 WeareSeekingtheDriversofProcessImprovementY x1 x2 x3 x4 xn Process ProcessEffectiveness Outside In ProcessEfficiency Inside Out and 6 5 MetricCategories ProcessEffectivenessProvidesRequiredFeaturesFreedomfromDeficiencies DefectrateAccuracyActual PlanDeliveryOn TomeTimelinessResponseTime ProcessEfficiencyEffectiveatLeastCostCompetitive AdaptabilityEffective EfficientIntheFaceofChange CostPerTransactionTimePerActivity CycleTime ProcessYieldOutputPerUnit Space FTE Time TotalCycleTime SetUpTimeForNewCustomerNeedsCycleTimeforSpecialCustomerRequestsPercentageofSpecialRequestsNotMet 6 6 Measuresprovideabasisfor SpecificallycommunicatingperformanceexpectationstoteammembersQuantifyingwhatisreallyhappeningintheorganizationIdentifyingperformancegapswhichshouldbeanalyzedandeliminatedEffectivelymakingandsupportingdecisionsregardingresourceallocationandactionplanning 6 7 HierarchyofProcessMeasures Level1 ExternalCustomerMeasuresLevel2 InternalEndofProcessIndicatorsLevel3 MetricsatKeyJuncturesorMilestonesofProcessLevel4 SteporActivityMeasures 6 8 HierarchyofProcessMeasures CUSTOMER FUNCTIONA FUNCTIONB FUNCTIONC M3 M2 M2 M3 M1 internal M1 external M1 ExternalCustomerRequirementsMeasuresrelatedirectlytocustomerrequirementsM1 InternalEndofProcessMeasuresreflectcustomerrequirementsaswellasbusinessrequirements theseareend of processmeasuresM2Sub ProcessMeasuresoutputofsub processesand orfunctionsM3KeyProcessStepMeasuresoutputofspecificprocesssteps 6 9 HowtoDevelopProcessMeasures OUTPUTCRITICALDIMENSIONMEASUREGOALTRACKINGDEVICE 1 2 3 4 5 IdentifysignificantoutputsIdentifycriticaldimensionsDevelopmeasuresforDevelopgoalsforeachDefinethetrackingdevice endofprocess sub process foreachsignificantoutputeachcriticaldimensionmeasure ThegoalshouldanddatasourceforeachJob represent entitled performancemeasure EXAMPLE Contractprepared AccuracyTImeliness NumberoferrorsrequiringreworkTimefromagreementmadetocontractprepared 0 3workingdays Contractreworknumbers Contractprint outdates Booksshipped Quantity Timeliness Accuracy Shipmentvolumeperday Numberofon timeshipments Numberofshippingerrors 15 000perday 95 ontime Dailyshippingreport Billingerrorreport Billingerrorreport 0 6 10 ProcessMeasurementChart M1 External Trainingmaterial CRITICALDIMENSION INPUT MEASURE GOAL Accuracy Timeliness M1 Internal OUTPUTCRITICALDIMENSIONMEASUREGOAL TrainingMaterial Timeliness M2s SUB PROCESSOUTPUTCRITICALDIMENSIONMEASUREGOAL Timeliness Timeliness Timeliness M3s PROCESSSTEPOUTPUTCRITICALDIMENSIONMEASUREGOAL Timeliness Timeliness 6 11 ReviewyourcoreprocessmapEstablishmeasurementsofprocesseffectivenessthatlinktoCustomerCTQEstablishgoalsforprocesseffectivenessQuantifythegapsbetweendesiredandcurrentperformance Step1 GapAnalysisforCustomerExpectations ProcessEffectiveness UseGapAnalysisTable 6 12 S O ProductionPlan CriticalY FastdeliveryofmanagementinformationCustomer ManagementRequirement 4days As Is8day 2days MRP Estimatematerialconsumption P O MaterialSourcing Production ITC ProductShipping Product Materialinventories Calculatematerialcost Closingprocessinputandoutput D D Calculatelaborcost Calculateexpense Calculateoverheadcost Closingbankaccount D 3days Dday X1 X2 SamsungExample 6 13 Calc Productcost Closingsales Estimatesalesprofit Calc Otherexpenses Estimatefinancingcost Estimatepre taxprofit B L P Lverification END D 6days D 7days D 8days Profitinwon Financialreport D 5days X3 X4 X5 SamsungExample continued 6 14 CustomerRequirement D 4days R 12hr SamsungExample GapAnalysisTable 6 15 Step2 GapAnalysisforCompanyExpectations ProcessEfficiency ReviewyourcoreprocessmapIdentifyareaswhereprocessefficiencycanbeimproved EstablishmeasurementsofprocessefficiencyEstablishgoalsforprocessefficiencyQuantifythegapsbetweendesiredandcurrentperformance UseGapAnalysisTable 6 16 GapAnalysisSummary NextSteps 6 17 ProcessDashboards TranslatingCTCRequirementsintoProcessDashboards CriticaltoQualityCTCs TheseRequirementsarethenquantifiedintoCTQs ProcessMeasures PerformanceDashboards Customer s Requirements TheCTQsaremonitoredandcontrolledtoensureconsistentperformance OverallperformanceisaggregatedintoDashboardsthatcanbesummedintoacompany leveldashboard KeyIssuesMustBeTranslatedIntoCustomerRequirements 6 19 BasicConceptofProcessDashboards Process ProcessMeasures CorporateDashboards Step1 Step3 DonebytheAssociate Speed Accuracy Cost Productivity Volume Service 6 20 DashboardExamples LogisticsCompany PartsOrderInput FreightVerification CarrierOnTimePerformance OnTimePerformance CubeUtilization ofErrors ofUnitErrors Benchmark OnTime OnTime 99 8 99 7 6 21 AccuratePartsOrderInput PartsOrderInput ofErrors 6 22 AccurateFreightVerification CompleteredesignoffreightverificationprocessVerifyatsupplierpickupvs plantreceivingInstitutecontroldocumentationCompletemanageranddrivertrainingInstallvehiclecommunicationsandintegratewithpartsorderingsystem Eliminatereceivingdockworkforce 20people 1 6MMannualsavingsImprovedprocessto5 4Sigma Results ImprovementTeamActions FreightVerification ofUnitErrors 6 23 MaximizeTrailerCubeUtilization Developshipmentdataforeachpart weight dimensions packaging UtilizedproprietaryCompanysystemstoimproveperformanceRDS RouteDevelopmentSystemTransLoad LoadModelingDEPOT LocationOptimization Reducedplanttransportationcostsby24 Annualsavings 4MMsavings Results ImprovementTeamActions CubeUtilization Utilized Benchmark 6 24 MeasuresofInputs Process Outputs 6 25 DataCollectionPlanWorksheet 6 26 BalancedScorecards 6 27 BalancedScorecardDefinition Managementtoolprovidingcomprehensivemeasureofhowtheorganizationisprogressingtowarditsstrategicgoals Shouldcontainjustenoughdata butnomore similartothefrontpageofanewspaper 6 28 ScorecardBalance Balancesfinancialandnon financialmeasures Balancesshort andlong termmeasures Balancesperformancedrivers leadindicators andoutcomemeasures lagindicators FinancialCustomerProcessLearningandGrowth 6 29 BalancedScorecardDesignMonitorProgressinAchievingGoals FinancialPerspective CustomerPerspectivePerceptionsof price servicequality InternalPerspectiveCycletime productivity processes Learning GrowthPerspectiveKnowledge productdevelopment Outcomes Activities MeasuresshouldbedesignedtoworkaswarninglightssignalingwhethertheagreedactivitiesarebeingundertakenandwhethertheyproducetheexpectedoutcomesTargetsarederivedfromthevisionstatement TheyexpresswhatneedstobeachievedbywheninordertorealizethevisionforthefuturewithintheagreedtimeframeExtraordinaryactivitiesandprojectsfurtheringachievementofobjectivesneedtobeidentifiedandprioritized Objectives Measures Targets Initiatives 6 30 StepbyStep Whatisourcompany svisionforthefuture Mission Vision 6 31 StepbyStep Mission Vision Financial Whatisourcompany svisionforthefuture Whatarethefinancialobjectiveswithrespecttoachievingthevision 6 32 StepbyStep Mission Vision Customer Financial Whatisourcompany svisionforthefutur