business process re-engineering and systems design - implementation
DESCRIPTION
Business process re-engineering and systems design - implementationTRANSCRIPT
A practical guide to business process mapping,
systems design & implementation with staff
training
Using Six Sigma’s DMADV methodology
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Knowledge baseSix Sigma: seeks to improve the quality of goods and services by identifying and removing defects (errors) caused by variation of working. Six sigma simply means 3.4 defects per million opportunities (DPMO)
DMADV is a six sigma methodology to ensure that new business processes and systems are aligned with one another and the requirements of the end customer.
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Knowledge base
DMAIC is a six sigma methodology to improve the quality of products and services by reducing defects through business process re-engineering
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Knowledge base
You can use DMADV for:
New systems software New systems hardware New business processes New products to market New services to market
You use DMAIC methodologies for Improving existing processes
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M A D VProcess, policy, systems & training
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M A I CProcess, policy, systems & training
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M A D VProcess, policy, systems & training
D
Define
Measure
Analyse
Improve
Control
Design
Verify
DMAIC to improve and control existing business processes
DMADV to create new business processes / systems
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Let us run through a practical guide to implementing a new purchase
order system that links into accounts payable and banking
M A D VProcess, policy, systems & training
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Produce an A2/3 project charter to describe what the project is about and what it is to deliver
M A D VProcess, policy, systems & training
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Design(Workshop event)
Agree what the objectives
Identify the people to be involved
Agree how the deliverables will be measured and signed off
Agree Critical To Quality Factors
Build a high level process map
M A D VProcess, policy, systems & training
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Process Improvement
D M A I CStakeholder Identification!
People directly involved in the process Business
Champions (2-5)
IT
Procurement
Finance
Project Managers
HR
Training Dept
Legal department
Sales & Marketing
Related process areas
Risk & ComplianceQuality AssuranceWhat external
stakeholders are there?
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Process Improvement
D M A I CStakeholder Identification!
People directly involved in the process Business
Champions (2-5)
IT
Procurement
Finance
Project Managers
HR
Training Dept
Legal department
Sales & Marketing
Related process areas
Risk & ComplianceQuality Assurance
For our example:
OperationsFinanceProcurementITPolicies and control
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A project charter should consist of: Vision, why are we doing this? Objectives for the project KPI’s of current business (if available) Critical To Quality requirementsIssue logs to resolveBusiness case to weigh up benefits and costs Version / change control to monitor changes to the programme’s direction
Please note that you can obtain a free template from www.optimise-gb.com
M A D VProcess, policy, systems & training
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Vision: To minimise the number of handovers between people and department for purchase orders, invoices and payments
CTQ: Errors to be minimised between purchase order and suppliers being paid
M A D VProcess, policy, systems & training
D
For our example:
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Objectives: To automate payments from purchase order receipts, reduce FTE’s by 75%, reduce paper work that goes missing by 100%
Current issues: •Paper work going missing•Invoices not authorised•Suppliers paid too early or too late•Amounts paid is different from invoice value
M A D VProcess, policy, systems & training
D
For our example:
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Analyse (Workshop event)
Draw out the process
Identify the flows of information
Understand the trigger points and policies / Service Level Agreements (SLA’s)
Review and add to the issues log
M A D VProcess, policy, systems & training
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Shout out as many ideas as possible
Do not discuss ideas at this stage
Questions should only be asked for clarification purposes
Everyone should suggest an idea
No judgements or criticisms should be made
Do not talk over others
Generating solutions: Good practiceM A D V
Process, policy, systems & training
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Identify the solutions
Solution 1
Use post it notes and put the solutions on a blank wall
Solution 2 Solution 3 Solution 4 Solution 5 Solution 6
Solution 7 Solution 8 Solution 9 Solution 10
Solution 11
Solution 12
Solution 13
Solution 14
Solution 15
Solution 16
Solution 17
Solution 18
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Theme 3
Solution 12Solution
18
Theme 2Theme 1
...Group the solutions to identify duplications
Solution 1
Group the post it notes in an affinity diagram to identify common themes
Solution 2
Solution 3
Solution 4
Solution 5
Solution 7Solution 8
Solution 9
Solution 10
Solution 11
Solution 13
Solution 14Solution
15
Solution 16
Solution 17
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Evaluate solution
Easy to Implement
Big Impact
Hard to implement
Small Impact
Solution 1 Solution 3
Solution 6 Solution 7 Solution 8 Solution 9
Solution 2
Implement Now Possible
KillImplement Later
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Solution 1
Who?
What? When?
Where?
How?
Why?
Formularise the top 3 solutions
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Process map the activities
Operations
Supplier
Finance
1 - Raise purchase order
(PO)
2 - Sends good / Invoice
4 – Enter invoice on
system
5 – Match PO to invoice
Who, which department The what
3 – Receipts goods on system
6 – Schedule BACS payments
M A D VProcess, policy, systems & training
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Automated system
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Policies and Service Level Agreements
M A D VProcess, policy, systems & training
D
Management approval limits to approve invoices (Senior managers to sign of invoice above £25K)
Invoices to be paid within payments terms, specified in supplier contracts
Suppliers should only see their own PO’s when loading invoices
For our example:
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Design(Workshop event)
Review the process maps Identify efficiencies through systems Develop flows of information Identify data tables Agree trigger of events within process
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Review the process map for possible issues and wastes
Waste category Office examples1. Overproducing Printing / working on paperwork before it is needed2. Inventory Filed in boxes, office supplies, batch processing3. Waiting System downtime, managers approval, information from
others4. Extra processing Re-entering data, extra copies, excessive reports, budget
process, scanning5. Correction Data entry, design, invoice errors6. Excess motion Walking to and from printers, other offices, filing7. Transportation Excessive email attachments, multiple hand offs,
approvals, postal services, internal post8. Under utilised people Limited employee authority, excessive management
control
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Remove transportation of paperwork, which leads to lost invoices by inputting data from the invoice and PO onto the system
Prevent invoices being sent for approval by applying a notification on the desktop
CTQ’s and issues
For our example:
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CTQ’s and issues
Stop the use of email notifications blocking up the system by giving access to the system to the end users
Request the supplier to scan the invoice onto the system by giving them access to their PO’s
Payments made by the system upon PO approval to prevent transposition errors or omissions
For our example:
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Design data tablesConsiderations
What information is required, types?
What information should be optional or mandatory?
How is information protected / validated?
How will table of information be linked?
What will users see and how will they access data / information?
What are the reporting requirements?
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Operations
Person ID*
Person’s Name(Auto by login)
Cost Centre(Auto by login)
Contact info
* Unique reference
All tables will need to be linked on a one to many relationship
Supplier details
Supplier code*
Supplier Name
Contact Details
Bank details
Discounts %
Payment terms
Goods info
Product code*
Product Name
Product Description
Product price
Order info
Order ID / PO*
Products details
No. Units
Product price
Value of order
Date of order
Date goods received
Date Paid
Design data tables(Identify all information requirements)
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Design data tables(Identify all information requirements)
M A D VProcess, policy, systems & training
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Data Field Mandatory / Optional / Auto populated
Validation / Parameters
Calculations
Order No. Auto populated Incremental number
Product details
Mandatory Drop down of product details
No. Units Mandatory >0
Product price Auto populated Based on product code
Value of order Auto populated Unit price X No. Units
Order info
Order ID / PO*
Products details
No. Units
Product price
Value of order
Date of order
Date goods received
Date Paid
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Design the Graphic User Interface (GUI)
Operations
Person ID*
Person’s Name(Auto by login)
Cost Centre(Auto by login)
Approval limit
Contact info
From table view To user interface view (Specifying drop down list boxes, fields to auto populate, validation checks, access rights etc)
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Use mistake / error proofing to prevent future problems
Use colour and clear
help guides for users
Use system interfaces to
prevent manual working
Use drop down lists instead of free text
fields
Use colourful pictures to show the
expected end result
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System workflow Person in operations places an order Message on managers desktop to approve order System automatically emails order request to supplier Person in operations receives good and receipts item on
system (Journal posted into Finance) Supplier loads invoice details through a web app scanning the
invoice System is triggered to match units receipted against order and
if correct transacts a payment to the supplier and posts invoice to general ledger (Finance)
Please note that any data / information that falls outside policy / CTQ’s should automatically be sent to managers
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Verify Create a proto type of the system Create Standard Operating Procedures (SOP’s) of how to use system Pilot test the system with people that will ultimately use the system Sign off solution as satisfactory
M A D VProcess, policy, systems & training
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Test proto types
Choose users that are not experts with systems
Provide them with dummy activities to test the system
Ensure that each functionality is tested
Identify issues / bugs and fix at the end of each day and re-test the system from scratch
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Create user guides:
Show each process step with a screen shot of the event
Use simple language
Ensure policies are highlighted
Inform the user of the dos and donts
Test the manuals through UAT
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Training manuals: Each process maps should be accompanied by the following documents
Process map
How to guide
Policy info
Specimen
Process map of who does what
Procedure of how to carry out activity clearly numbered with screen shots
What is expected, policies behind work, rules and regulations that apply
Checklist
Examples of what the finished output should look like: example being forms
Check list for the activities to confirm completion and sign as authorisation
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Staff training:
Ensure that every user involved in the business process has been given training.
Use tests to ensure understanding and ensure employees sign to acknowledge that training has been given
Do not allow access to systems or allow person to work in process if they have not been trained
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Control / Capability Charts
Use software to plot the time
taken for each activity and
automatically inform managers
if activities fall outside of the control limits
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For other solutionsContact
Simon Misiewicz through Web: www.optimise-gb.com
Email: [email protected] or
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