Process Improvement Framework
- 1. © 2016 SHRIMAPI Consulting Inc. All rights reserved. Proprietary and confidential. April 20th, 2016 Business Process Improvement (BPI) Services Framework
- 2. © 2016 SHRIMAPI Consulting Inc. All rights reserved. Proprietary and confidential. Slide 2 Project Selection Rapid assessment and validation Screen initial list Prioritize list and select projects Scope and define projects 1. Rapid assessment and validation ―Establish process baseline, develop hypotheses about likeliest rich targets for improvement, and validate with data 2. Screen initial list ―Score each project on benefit/effort and create matrix ―Select highest priority opportunities for further analysis 3. Prioritize list and select projects ―Assign selected opportunities to sponsors 4. Scope and define projects ―Draft project charters Outcomes ― Projects selected are aligned with strategic company objectives i.e. Identifies what is important to the organization ― Selection and prioritization of projects based on the value of their benefit- effort ― Problems, goals and metrics identified are well defined and agreed upon ― Clearly defined scope ― Positions and aims the improvement project for success
- 3. © 2016 SHRIMAPI Consulting Inc. All rights reserved. Proprietary and confidential. Slide 3 Evaluate the Process Define the baseline Perform value-add analysis Define the baseline ―Provides a visual view of the as-is process ―Identifies what’s really currently happening in the process ―Establishes the mark against which improvement will be measured Perform value-add analysis ―Determines the value of each step based on whether it is Customer value-add, Business value-add or Non-value-add Outcomes ―Define the baseline ▪ Answers to the questions: 1. Is there really a problem? 2. What is the real problem? ▪ Status of current process performance ▪ A complete picture of process details i.e. the value stream maps with flow and data ―Perform value-add analysis ▪ Identification of critical value drivers their impact on the business and the sources of inefficiency and ineffectiveness
- 4. © 2016 SHRIMAPI Consulting Inc. All rights reserved. Proprietary and confidential. Slide 4 Define the Baseline Steps 1. SIPOC (Supplier, Input, Process, Output, Customer) ― Leverage available existing process models and SIPOC in repository ― Create SIPOC, if necessary 2. Utilize existing KPI and other reporting metrics to: ― Obtain repository information on process data ― Perform additional measurements, if required 3. Value Stream Maps (VSM) ― Check to see if available ― Create VSM if not available to obtain visual of process details i.e. flow and data Outcomes ―Answer to the question: “Is there a problem?” ―Discovery of the real problem ―Identification current process performance ―Establishment of mark against which improvement will measured ―Validated view of how the process is currently being executed ―A “complete picture” of the process for performing value-add analysis
- 5. © 2016 SHRIMAPI Consulting Inc. All rights reserved. Proprietary and confidential. Slide 5 Steps 1. Determine the value of each step in the process based on whether it is – ― Customer value-add: An activity essential to deliver a service to the customer, a function that enables on-time delivery ― Business value-add: Something that improves effectiveness in a process or addresses regulatory requirements ― Non value-add: Any activity not required to meet customer needs or run the business 2. Classify "wait" or "idle" time in the process that can be eliminated 3. Identify rework loops in the process that can reduced 4. Check for non-value-added work in decisions and hand-offs than can be removed Outcomes ―Recognition of waste and defects in the process ―Discovery of the actual amount of value- add time in the process ―Answers to the questions – ▪ Does the customer care if this activity, decision, or movement is done? ▪ Does this activity change the product or service physically? ▪ Is this step essential to doing it “right the first time” (not a rework loop)? ―Identification of the opportunities for improvement Perform Value-add analysis
- 6. © 2016 SHRIMAPI Consulting Inc. All rights reserved. Proprietary and confidential. Slide 6 Steps 1. Using the results of the value-add analysis, identify the changes to be made by: ― Working on eliminating as many non-value add activities as possible ― Identifying solutions to streamline or automate business value-add activities ― Enhancing the customer value-add activities 2. Then work on creating to-be process maps 3. Conduct walk-through of to-be/new process 4. Obtain approval/buy-in/sign-off on to-be process 5. Develop plan of action – Implementation plan Outcomes ―Elimination of waste in process ―Reduction of non-value-add activities ―Efficient and effective customer value- add actions ―To-be process that will be efficient, effective ―Plan that is effective to manage the implementation and the change Improve the Process
- 7. © 2016 SHRIMAPI Consulting Inc. All rights reserved. Proprietary and confidential. Slide 7 Manage the Change Implement Changes Perform Updates Follow-up Why is it important? ―Provides impetus to implementation plan and execution ―Will help identify resistance and allow for the mobilization of acceptance ―Once implemented will sustain the improvement ―Increased probability of meeting project objectives ―Define implementation needs: Systems People Training Steps 1. Implement changes ― Technology – change/update systems/applications if necessary ― People – manage resource changes if required ― Training – Conduct process training as required ― Roll-out and use the “new” process 2. Perform updates – Repository ― Update KPI/Reporting ― Update process models, SIPOC, and VSM ― Update policies, procedures and work instructions 3. Follow-up ― Calculate benefits from process improvements ― Communicate results to stakeholders ― Recognize the team