BPMS 06 Gap Analysis.ppt

1、Gap Analysis,Business Process Management,6-2,Scorecards to Manage Results,Indicators of Process Performance,Core and Enabling Processes,Critical-to-Customer Outputs,Customer Focused Objectives,C,S,I,P,O,Scorecards,What will be measured?,Gap,Cluster,Cluster,Project,Project,Project,Project,Six Sigma P

2、rojects,What projects are needed to close the gaps?,What are the key measures of process performance? What are the gaps between process performance and CTC objectives?,6-3,What do you measure ?Y = f (x1, x2, , xn),What are the Ys - measures of the outputs of your business process? Ys are important t

3、o your customer or they are directly related to whats important to your customer What are the Xs - measures within your business process that correlate to the output measures (Y) Internal and uncontrollable Internal and controllable,6-4,We are Seeking the Drivers of Process ImprovementY = (x1, x2, x

4、3, x4, xn),Process,Process Effectiveness (Outside-In),Process Efficiency (Inside-Out),and,6-5,Metric Categories,Process Effectiveness Provides Required Features Freedom from Deficiencies,Defect rate Accuracy Actual/Plan Delivery On-Tome Timeliness Response Time,Process Efficiency Effective at Least

5、Cost Competitive,Adaptability Effective & Efficient In the Face of Change,Cost Per Transaction Time Per Activity (Cycle Time) Process Yield Output Per Unit (Space, FTE, Time) Total Cycle Time,Set Up Time For New Customer Needs Cycle Time for Special Customer Requests Percentage of Special Requests N

6、ot Met,6-6,Measures provide a basis for: Specifically communicating performance expectations to team members Quantifying what is really happening in the organization Identifying performance gaps which should be analyzed and eliminated Effectively making and supporting decisions regarding resource al

7、location and action planning,6-7,Hierarchy of Process Measures,Level 1: External Customer Measures Level 2: Internal End of Process Indicators Level 3: Metrics at Key Junctures or Milestones of Process Level 4: Step or Activity Measures,6-8,Hierarchy of Process Measures,CUSTOMER,FUNCTION A,FUNCTION

8、B,FUNCTION C,M3,M2,M2,M3,M1-internal,M1-external,M1-ExternalCustomer Requirements Measures relate directly to customer requirements M1-InternalEnd of Process Measures reflect customer requirements as well as business requirements these are end-of-process measures M2Sub-Process Measures output of sub

9、-processes and / or functions M3Key Process Step Measures output of specific process steps,6-9,How to Develop Process Measures,OUTPUT CRITICAL DIMENSION MEASURE GOAL TRACKING DEVICE,1,2,3,4,5,Identify significant outputs Identify critical dimensions Develop measures for Develop goals for each Define

10、 the tracking device (end of process, sub-process, for each significant output each critical dimension measure. The goal should and data source for each Job) represent “entitled” performance measure,EXAMPLE,Contract prepared,Accuracy TImeliness,Number of errors requiring rework Time from agreement m

11、ade to contract prepared,0,3 working days,Contract rework numbers,Contract print-out dates,Books shipped,Quantity,Timeliness,Accuracy,Shipment volume per day,Number of on-time shipments,Number of shipping errors,15,000 per day,95% on time,Daily shipping report,Billing error report,Billing error repo

12、rt,0,6-10,Process Measurement Chart,M1-External,Training material,CRITICAL DIMENSION,INPUT,MEASURE,GOAL,* Accuracy,* Timeliness,M1-Internal,OUTPUT CRITICAL DIMENSION MEASURE GOAL,Training Material,* Timeliness,M2s,SUB-PROCESS OUTPUT CRITICAL DIMENSION MEASURE GOAL,* Timeliness * Timeliness,* Timelin

13、ess,M3s,PROCESS STEP OUTPUT CRITICAL DIMENSION MEASURE GOAL,* Timeliness,* Timeliness,6-11,Review your core process map Establish measurements of process effectiveness that link to Customer CTQ Establish goals for process effectiveness Quantify the gaps between desired and current performance,Step 1

14、: Gap Analysis for Customer Expectations Process Effectiveness,Use Gap Analysis Table,6-12,S/O,Production Plan,Critical Y : Fast delivery of management information Customer : Management Requirement: 4days (As-Is 8day 2days),MRP (Estimate material consumption),P/O,Material Sourcing,Production ITC,Pro

15、duct Shipping,Product/ Material inventories,Calculate material cost,Closing process input and output,D,D,Calculate labor cost,Calculate expense,Calculate overhead cost,Closing bank account,D+3 days,D day,X1,X2,Samsung Example,6-13,Calc. Product cost,Closing sales,Estimate sales profit,Calc. Other ex

16、penses,Estimate financing cost,Estimate pre-tax profit,B/L,P/L verification,END,D+6days,D+7 days,D+8days,Profit in won,Financial report,D+5days,X3,X4,X5,Samsung Example - continued,6-14,Customer Requirement: D+4days (R: 12hr),Samsung Example Gap Analysis Table,6-15,Step 2: Gap Analysis for Company E

17、xpectations Process Efficiency,Review your core process map Identify areas where process efficiency can be improved. Establish measurements of process efficiency Establish goals for process efficiency Quantify the gaps between desired and current performance,Use Gap Analysis Table,6-16,Gap Analysis

18、Summary & Next Steps,6-17,Process Dashboards,Translating CTC Requirements into Process Dashboards,Critical to Quality CTCs,These Requirements are then quantified into CTQs.,Process Measures,Performance Dashboards,Customer(s)Requirements,The CTQs are monitored and controlled to ensure consistent perf

19、ormance.,Overall performance is aggregated into Dashboards that can be summed into a company-level dashboard.,Key Issues Must Be Translated Into Customer Requirements,6-19,Basic Concept of Process Dashboards,Process,Process Measures,Corporate Dashboards,Step 1,Step 3,Done by the Associate,Speed,Accu

20、racy,Cost,Productivity,Volume,Service,6-20,Dashboard Examples Logistics Company,Parts Order Input,Freight Verification,Carrier On Time Performance,On Time Performance,Cube Utilization,# of Errors,# of Unit Errors,Benchmark,% On Time,% On Time,99.8,99.7,6-21,Accurate Parts Order Input,Parts Order Inp

21、ut,# of Errors,6-22,Accurate Freight Verification,Complete redesign of freight verification process Verify at supplier pick up vs. plant receiving Institute control documentation Complete manager and driver training Install vehicle communications and integrate with parts ordering system,Eliminate re

22、ceiving dock workforce - 20 people $1.6MM annual savings Improved process to 5.4 Sigma,Results,Improvement Team Actions,Freight Verification,# of Unit Errors,6-23,Maximize Trailer Cube Utilization,Develop shipment data for each part (weight, dimensions, packaging) Utilized proprietary Company system

23、s to improve performance RDS - Route Development System Trans Load - Load Modeling DEPOT - Location Optimization,Reduced plant transportation costs by 24% Annual savings - $4MM savings,Results,Improvement Team Actions,Cube Utilization,% Utilized,Benchmark,6-24,Measures of Inputs, Process & Outputs,6

24、-25,Data Collection Plan Worksheet,6-26,Balanced Scorecards,6-27,Balanced Scorecard Definition,Management tool providing comprehensive measure of how the organization is progressing toward its strategic goals. Should contain just enough data, but no more (similar to the front page of a newspaper).,6

25、-28,Scorecard Balance,Balances financial and non-financial measures. Balances short- and long-term measures. Balances performance drivers (lead indicators) and outcome measures (lag indicators).,Financial Customer Process Learning and Growth,6-29,Balanced Scorecard DesignMonitor Progress in Achievin

26、g Goals,Financial Perspective,Customer Perspective Perceptions of: price, service quality,Internal Perspective Cycle time, productivity, processes,Learning & Growth Perspective Knowledge/product development,Outcomes,Activities,Measures should be designed to work as warning lights signaling whether t

27、he agreed activities are being undertaken and whether they produce the expected outcomes Targets are derived from the vision statement. They express what needs to be achieved by when in order to realize the vision for the future within the agreed timeframe Extraordinary activities and projects furth

28、ering achievement of objectives need to be identified and prioritized,Objectives,Measures,Targets,Initiatives,6-30,Step by Step,What is our companys vision for the future?,Mission & Vision,6-31,Step by Step,Mission & Vision,Financial,What is our companys vision for the future?,What are the financial objectives with respect to achieving the vision?,6-32,Step by Step,Mission & Vision,Customer,Financial,What is our companys vision for the future?,What are the fina