20050517 TCBACMeeting Process

The Role of A Business Analyst in Process Improvement: 

The Role of A Business Analyst in Process Improvement May 2005

Introduction/Welcome: 

Introduction/Welcome What is Process Improvement? Key Concepts How do Companies Deploy PI? Role of a BA in PI Challenges for the BA Questions / Wrap Up

What is Process Improvement?: 

What is Process Improvement? Business Process Reengineering Lean / Lean Enterprise Six Sigma Kaizen Events Transactional Process Improvement Cost reduction, Just in Time, TQM, ??????

Quality: 

Quality The source of defects is almost always linked to variation – which means that customers will not get what they want Sigma levels measure defects per million opportunities.

Quality: Is 99% Good Enough?: 

Quality: Is 99% Good Enough? 3.8 s 99% Good Product or Service 6 s 99.99966% Good 20,000 Articles of mail lost per hour Seven 15 minutes per day Unsafe drinking water One minute per seven months 5,000 1.7 Two per day major airports One every five years 200,000 per year 68 Incorrect surgical procedures per week Short or long landings at Wrong drug prescriptions

Key Concepts: 

Key Concepts Cross-functional Process View Data Driven Continuous Improvement

Key Definitions: 

Key Definitions LEAN: a set of management principles, tools and best practices modeled after the Toyota Production System (TPS) designed to identify and eliminate WASTE in all processes. SIX SIGMA: a set of principles, statistically based tools and best practices emerging from the quality movement designed to identify and eliminate VARIATION in a process. Six Sigma focuses on improving the value adding processes. LEAN ENTERPRISE – the application of best practices in both Lean and Six Sigma to eliminate waste and variation across the entire organization. + =

Lean and Six Sigma: 

Lean and Six Sigma How Lean and Six Sigma work Together: Eliminate Waste (non value added activities) Standardize work; stabilize processes Reduce Variability for greater efficiencies (why reduce variability on non-value added activities?) Lean Enterprise is much more than tools or projects…it is a new way of thinking and behaving….a cultural change.

Kaizen - Definition: 

Kaizen - Definition Kaizen, or “blitz effort”, is to quickly & immediately make improvements in an isolated area. Kaizen Events are extremely efficient in eliminating waste and beginning to drive culture change.

How do Companies Deploy PI?: 

How do Companies Deploy PI? Company-wide Department Specific efforts Disguised as other initiatives (e.g., new system implementation) Individual initiatives

Role of a BA in PI: 

Role of a BA in PI Document current state and other stuff! Analyze current practices Develop / document future state Determine steps / gaps Implement solutions – quick hits, longer term

Document Current State and Other Stuff: 

Document Current State and Other Stuff What’s Key? Good listening skills Ability not to assume – capture the facts, issues, measures – all the information known today Broad thinking Ability to capture current state accurately on paper

Process Mapping Exercise: 

Process Mapping Exercise A young couple, Mary and Tom, have recently moved into their first home. It’s an older home and they are eager to remodel it. Every month, they tackle a new project (e.g., paint the guest room, wallpaper the bathroom). At the first of every month, they make a list of items that they will need to purchase and then make a trip to the local Menards to buy the supplies they will need for that month’s project. On one particular month, they go to the store and begin their shopping. Their typical approach is to walk up and down every aisle and choose the items that are on their list. While browsing the paint section, they are approached by a sales associate asking if they have any questions or need assistance. They ask a few questions and continue on with their shopping.

Process Mapping Exercise: 

Process Mapping Exercise Upon checkout, the clerk asks if they found everything that they needed. Mary quickly reviews the list. Upon review of the list, they discover they forgot an item. Mary continues with checkout while Tom goes back to retrieve the forgotten item. They complete checkout, load the items in the car and head home.

Current Process Map - Example: 

Current Process Map - Example

Analyze Current Practices: 

Analyze Current Practices What’s Key? Ability to ask “why” and ask it 5 times! Question the status quo, tribal knowledge, etc. Throw away paradigms

Develop / Document Future State: 

Develop / Document Future State What’s Key? Think out of the box Creativity before capital – technology should be a last resort Through words and pictures, create a vision of the future

Ten Challenges for Process Improvement: 

Ten Challenges for Process Improvement Preempt or eliminate non-value added activities Outsource or insource Leverage supplier or customer Minimize hand-offs Convert serial processing to parallel Restructure the organization Change the physical layout Automate manual processes Use existing technology more effectively Use alternative technologies

Determine Steps / Gaps: 

Determine Steps / Gaps What’s Key? Ability to assess current and future and document steps required to get from one to another Ability to develop a time phased work plan Identify short term or quick hits

Implement Solutions: 

Implement Solutions What’s Key? Ability to document standard operating procedures Ability to follow a project plan

Challenges for the BA: 

Challenges for the BA Doesn’t need to be pretty – balance of time versus value Separating yourself from IT/IS Convincing the business community of your value

Questions?: 

Questions?

Reference Materials: 

Reference Materials The Basics of Process Mapping by Robert Damelio Mapping Work Processes by Dianne Galloway Improving Performance: Managing the White Space on the Organization Chart by Rummler and Brache

Reference Material: 

Reference Material

Reference Materials: 

Reference Materials www.isixsigma.com www.lean.org www.rummlerbrache Note: great search results on Google using process+mapping

Slide26: 

You use PowerPoint to prepare the grocery list You've Worked on Process Improvement Too Long When

You've Worked on Process Improvement Too Long When: 

You've Worked on Process Improvement Too Long When Before you order your meal you ask the waiter to list the restaurant's core competencies

Slide28: 

You refer to dating as pilot testing You've Worked on Process Improvement Too Long When

Slide29: 

You can spell paradigm You've Worked on Process Improvement Too Long When

Slide30: 

You actually know what a paradigm is You've Worked on Process Improvement Too Long When

Slide31: 

You understand your airline's fare structure You've Worked on Process Improvement Too Long When

Slide32: 

You include executive summaries in your love letters You've Worked on Process Improvement Too Long When

Slide33: 

Your St. Valentine's Day cards include bullet points You've Worked on Process Improvement Too Long When

Slide34: 

You celebrate your wedding anniversary by conducting a performance review You've Worked on Process Improvement Too Long When

Slide35: 

You believe you never have any problems in your life, just "issues" and "improvement opportunities" You've Worked on Process Improvement Too Long When

You've Worked on Process Improvement Too Long When: 

You've Worked on Process Improvement Too Long When You refer to your vacation plan as a "vision" statement

Slide37: 

When dining out, you order "low-hanging fruit" for dessert You've Worked on Process Improvement Too Long When

Slide38: 

You can explain to somebody the difference between reengineering, downsizing, rightsizing, and firing people You've Worked on Process Improvement Too Long When

Slide39: 

You actually believe the explanation you gave for the difference between reengineering, downsizing, rightsizing, and firing people You've Worked on Process Improvement Too Long When

Slide40: 

You talk to the waitress about process flow when dinner arrives late You've Worked on Process Improvement Too Long When

Slide41: 

You think of your subtracting strokes from your golf score as creating a "balanced scorecard" You've Worked on Process Improvement Too Long When

Slide42: 

You naturally think of a collection of strangers on an elevator as a "cross-functional team" You've Worked on Process Improvement Too Long When

Slide43: 

You're planning a family reunion and begin to identify a list of "critical success factors" You've Worked on Process Improvement Too Long When

Slide44: 

You offer “constructive feedback” to your dog You've Worked on Process Improvement Too Long When

Slide45: 

You missed the entire break because you stayed in the room to read every one of these slides You've Worked on Process Improvement Too Long When