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

Optimized Six Sigma

Organization
Managed DMAIC , DFSS

Defined
BPMS
Repeatable
Initial Stage
Chaotic of Organization

Defining Accountability
4
 Business Process Management System ( BPMS )

BPMS : What Does It Mean ?

IS NOT IS

• Just a set of Dashboards • Ongoing Accountability for

• 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 C
L
U I U
O
P N S
Y
P P T
A
L U O
L
I T M
T
E S E
Y
R R

7
2. Process Management Chart
Process Name: Process Owner: Date:
Process Map Monitoring Response Plan
Departments
Measures Standard, Spec. Data Collection Immediate Process
Application Document (Process Measures
Dealer Entry Credit Preparation Legal Lessee Except Where Noted)
Or Target Method Control/Fix Improvement

8
3. Process Review Procedures
Process Dashboard

Avg. # Handoff
% Accurate

A B C D E
Control Chart Call Type
Current Normalized Yield – FP Yield Trends For Core Process 4.0
100%
Normalized
RTP
4.1 4.2 4.3 4.4 4.5
First Pass

0%
% 92 80 99 73 96 90% 1st 2nd 3rd 4th
Qtr Qtr Qtr Qtr

PM Team 9
4. Aligned Accountability And Commitment-Reinforcing Practices

Partnership
Bonus
Process

Team
Outcome Customer
Performanc
s Satisfaction
e Targets

Recognition

& Goals

10
 Looking at a process Horizontally

Sales Service CC Billing

Delivery

11
BPMS Methodology
 BPMS Methodology

Step No Step Description Step Explanation

State the objectives of Process
1 Create Process Mission Mapping
Map the As-Is Process
2 Document Process
Identify Customer and
3 Document Customer & Process requirements Document their Requirements
Identify process outputs and
check if it meets customers
4 Identify Output & Process Measures 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 Step Explanation

Build System for Managing the
5 Build process management system Process
6 Establish data collection plan Plan for Data Collection
Collect Data and Monitor
7 Process performance monitoring Process Measured
8 Develop dashboards with spec limits & targets Prepare Process Dashboards

9 Identify improvement opportunities Do Gap Analysis

Step 1 - 5 : Infrastructure ,Step 6 : Implementation ,Step 7 - 9 : Execution

2 weeks 4 - 8 weeks Continuous Process

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 PDCA Cycle

Plan
Check and Act Step1: Process Mission
Step7: Process Performance Monitoring Step 2: Document Process
Step8: Dashboards Step3: Customer Requirements
Step9: Improvement Opportunities 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

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 BPMS Team

Receive Log Assign Resolve Inform

Complaint Complaint Complaint Complaint Customer

Process
Operators
Process Owners

Process Champions

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 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

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 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

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 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.

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 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 Process End

Complaint Call to Customer

Customer Calls Handling Informing him of
Process 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%

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 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

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Process Mission Goal Categories
Customer/Client Financial

Effective Resolution of Complaints

Faster Resolution of Complaints

Capabilities/Learning/Innova
Process tion

Reduction in % of Complaints

Reduction in % of Repeat Complaints

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 Preliminary Process Goals
Possible Goal Categories For Processes – Components For A
Balanced Process Dashboard
Customer Financial

➤ Customer Satisfaction And Value ➤ Sales

Perceptions ➤ Net Income
➤ Customer Retention, References ➤ ROI/ROA
➤ New Customers Acquired ➤ Cost-Per-Unit Processed
➤ Competitive Positioning

Process Learning/Innovation/People/

➤ Effectiveness ➤ New Products

➤ CTQs Or Defect Occurence ➤ Competencies Acquired
➤ Timeliness/Speed ➤ Continuous Learning
➤ Reliability/Accuracy & Transfer of Best practices
➤ Convenience ➤ Job Satisfaction
➤ Treatment/Interaction ➤ Training
➤ Tangibles
➤ Failure Recovery
➤ Efficiency
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 Process Mission
 Effective designing of training programs to enhance performance
Purpose
improvement .
 Improve employee skill sets.
Importance  Enhance operational performance.
 Contribute to employee retention and loyalty
 Starts with: Identification of Performance Needs
Boundaries  Ends with: Measuring Training Effectiveness

 Enhance Employee Performance

 Effective Training Delivery
Process Goals  Optimize training costs
 Better Administration of Training Programs

 Supervisory and Management Training, Voice and Accent Training

Process Includes
(Pre-Process and On Floor)

Process  Process Training

Excludes

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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 Requirements

Boundary Boundary

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 to stop
point. List final customer first

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

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Example Of Deployment Flowcharting : Exit Management
Example Of Deployment Flowcharting
Employee 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

Receive Laptop

Telecom Revokes Dialcomm Card

Closing of House Lease / Car Lease

Admin

0 DAY 20 DAYS
Payroll / Accounting Processing of Top sheet / Refund Chq
TIME
Don’t Automate , Obliterate
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 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 Log Assign Resolve Inform

Complaint Complaint Complaint Complaint Customer

41
 Example: Complaint Handling Process

Level 3 (Detailed Process Map)

Start

Take Customer N
Complaint QR
Call
Y
Understand Nature
Log In Customer
of
Complaint
Complaint

If you look at Understanding For the step Log In Customer

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
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

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 Format: Standard Operating Procedure

STANDARD OPERATING PROCEDURE TITLE

Process: SOP Number Revision Page

Company Effective Date

1.0 Purpose
2.0 Scope
3.0 Materials/Equipment
4.0 Procedures
5.0 Definitions
6.0 Roles and Responsibilities
7.0 Safety Precautions
8.0 Formats and Records

43
Step3:Document Customer and
Process Requirements
 Translating Customer Needs Into Customer Requirements

Translation Of Needs

Voice Of The Customer(s)

Your Outputs Key Issues/CTQ
Customer Requirements

Outputs Of Your But Customer Clarification Of Key Issues Must

Process Are Needs Are Stated The Customers’ Be Translated
Designed To In The Language Language Into Customer
Satisfy Customer Of The Customer Identifies The Requirements
Needs Profitably Key Issues

“ I HATE FILLING OUT THIS FORM ” “ FORM TAKES TOO LONG TO COMPLETE “ FORM TO TAKE 5 MINUTES
HENCE TIMELINESS “ TO COMPLETE “

OR “ TOO MANY CROSS-REFERENCES “ FORM TO TAKE LESS THAN

HENCE TOO COMPLICATED “ ONE MINUTE TO COMPRE-
HEND “

“ I DON’T UNDERSTAND BANKING “ AMBIGUOUS INSTRUCTIONS “ “ USERS UNDERSTAND THE

JARGON “ INSTRUCTIONS ON THE
FORM WHEN READ FOR
THE FIRST TIME “

45
 BPMS Methodology Step 3: Document Customer and Process
Requirements

 TheSteps 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

Time Resolve complaints quickly
complaints

Every time I have the Repeated

Ensure complaints do not re-occur
same complaint Complaints
When I complaint the
Agent
people do not Increase knowledge of agents
Understanding
understand

Agents behave rudely Agents Empathy Improve Agent Skills

49
 Example Of Step 3 of Customer Needs Into Customer Requirements
Translation

Process 1.0 - Produce and Deliver Pizza

Voice of the Customer After Clarifying… Customer(s)
The Key Issue(s) is… Requirements

“ I want the pizza that I ordered” Accuracy Right pizza to right person

“I want my delivery person to be Politeness Pizza person is polite

friendly”

“I want my pizza when you said it Timeliness Pizza delivered on time as promised
would be here” to customer

“I want my pizza hot and tasty” • Usability / features Pizza satisfies customer’s taste
• Palatability expectations

“I’m not going to pay a lot for this Price Price is equal to or less than all other
pizza!” 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 Measures That Are Output Measures

And Delivery Internal To Your Are Measures
Requirements Process. They Include Used To
Placed On Your Quality And Delivery Determine How
Suppliers. Measures Important Well Customer
To Your Internal Needs And
Customers As Well As Requirements
Waste And Cycle Time Are Met.
Measures. They Are
Correlated To The
Pertinent Output
Measures.

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 (s) Unit of

Process Output Measures
Requirements Measure

Resolve complaints
Time TAT for Complaints
quickly
Resolved Complaint
Ensure complaints do
Percentage % of Repeat complaints
not re-occur

Increase knowledge Knowledge

Knowledge Scores
Agent Training of agents Scale
Completion
Agents
Improve Agent Skills Call Quality
Empathy

56
 CTQ Tree with Input, Process and Output Measures
Example Of1.0Step
Process: 4 and Deliver Pizza
- Produce

Process Specific
Customer Output Process Input
CTQ Customer Requirements
Requirements Measurements Measurements Measurements
(Specifications)

Right pizza to right Y1: % of wrong X1.1: % orders

Accuracy 100%
person pizzas delivered matched (post oven)

Y2: % of
Politeness Pizza person is polite 100%
complaints

Pizza delivered on time as Y3: Time - order

Timeliness <45 mins. taken to pizza X3.1: Cook time X3.4: Order volume
promised to customer
delivered
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 POwners POwners POwners

Operators Operators Operators 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

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 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 Owner: Date:
Process Map Monitoring Response Plan
Departments
Measures Standard, Spec. Data Collection Immediate Process
Application Document (Process Measures
Dealer Entry Credit Preparation Legal Lessee Except Where Noted)
Or Target Method Control/Fix 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

 An Operational Definition Is A Precise Description That

Definition 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 Definition
Unit The Item Produced Or Processed. It
Is The Specific Product Or Service
Used To Evaluate Whether Or Not
Customer Requirements Are Met
Defect Any Event That Does Not Meet The
Specifications Of A CTQ
Defective Any Unit That Contains One Or
More Defects. Such a Unit Is
Called A “Defective Unit”
Defect Any Event Which Can Be Measured
Opportunity That Provides A Chance Of Not
Meeting A Customer Requirement
Example
➤ Bill Or Invoice
➤ Customer Inquiry
➤ Incorrect Address On A Bill
➤ Bill With An Incorrect Address
➤ Bill With Two Defects, Incorrect
Address And Total Amount Due
➤ Name, Address, Item
Description And Total Amount
Charged On A Bill. Each
Represents An Opportunity For
A Defect
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 Example of Data Collection-Level

Visa Processing time

India China Pakistan Sri Lanka

Bangalore Pune Kolkatta Hyderabad

Designation 1 Designation 2 Designation 3 Designation 4

Visa Type 1 Visa Type 2 Visa Type 3 Visa Type 4

Collect data at this level

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 Data Collection Format - Sample

No of Data Points
Done By Date of Collection
Cycle Time for
Visa Number Visa Type City Country Designation
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 Develop Operational Definitions

Collection Goals And Procedures
Operational Other Conditions Collecting/ Sampling
Definition To Record Recording
Type Type How
Measure Measure Data What How (Attach Data Form) What Where When Many

Date_____ Region_____
Billing Discrete
Output Inaccurate Reconcile Accts. Systematic One
Accuracy Invoice/Bill
= Bill with invoice Receivable – every
Product
any of 5 with Defect 1 2 3 dept. – nth bill
fields not customer 1 II invoices where n is
matching order for 2 IIII IIII IIII prior to be selected at
customer 5 fields 3 III mailed random
order form 4 III III between
Total 1 and 30.

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.
# of # of
# Def. # Non
Defects Defects
Data # Def. 26 0 26
Collector # Non 0 125 125 Date
26 125 151 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
 Ifwe 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

Process Specific
Customer's Customer's Output Process Measure- Input
Requirement Requirements Measurements ments Measurements
(Specifications)

Long time is
TAT for
taken for <=5 hours
Complaints
complaints

Every time I
% of Repeat
have the same <10%
complaints
complaint

When I
complaint the Knowledge
>=80%
people do not Scores
understand

Agents behave Call Quality

>=80%
rudely

78
 BPMS Methodology Step 7: Process Performance Monitoring

Process
Measures Monitoring Contingenc
y

Output Measures (Y) and

Input/ Process Measures Control Limits, Monitor Item Frequency Responsibility Source Contingency
(X) Specifications Plan

<5hrs Time Every ABC Workflo

TAT for Complaint w
Complaints
<10%
% of Repeat
complaints
>80%
Knowledge
Scores
>80%
Call Quality

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

Variation For A Variation

Type Of Data Period Of Time Over Time
Discrete ➤ Pareto Diagram ➤ Run Charts
➤ Bar Charts ➤ Control Charts
➤ Pie Charts – p-Chart
– c-Chart
– u-Chart
– Individual
Measurement

Continuous ➤ Histograms/Frequency ➤ Run Charts

Diagrams ➤ Control Charts
➤ Box Plots – Individual
➤ Multi-Vari Charts Measurement
– X–R Chart

81
Step8: Develop Dashboards
With Specification Limits
 Process Dashboard
A Visual Display Of Key Measures Of Process Performance

Cycle COPQ
Time
Accuracy
Defects

Sales Sigma

83
Dashboard Attributes

A Dashboard Is:

 A Management Tool
 ProjectMonitoring
 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 Limits
 Should be customer specified
 In Absence of customer specified specifications
 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 15
14
80
12
70 11
60 10
Minutes

TAT 9 % Repeat
50 8 8

%
Spec Spec
40 6
30 30 30 30 30 5 5 5 5
27.4 4
20 20.4 20.4
2
10
0 0
1stAug 2nd Aug 3rd Aug 4th Aug May June July Aug
Day Month

87
Step9: Identify Improvement
Opportunities
 Operate Process Management System

Develop
PM System

Refine/
Implement
Rebuild

Operate

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 Operate Process Management System

Two Components :

 Process Reviews
When To Review
What To Review

 Taking Action
Selecting A Solution

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Operational Management Phase
External Continue
Environmental Control
Information Actions

Yes
Dashboard Indicators

Satisfied
Process
With
Review
Indicators?

No

Plan & Implement

Internal
Improvement Actions
Environmental
for Unsatisfactory
Information
Indicators
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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

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 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

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 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.

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 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

14
15
A look at the dashboard tells us
12
11
that the % repeat complaints offers
10
9 % Repeat
more scope for improvement that
8 8
Turn Around time
%

Spec
6
5 5 5 5
4

0
May June July Aug
Month

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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

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