RE-ENGINEERING BUSINESS PROCESSES – A WINNING APPROACH TO TRANSFORM BUSINESSES USING THE BUSINESS VALUE ENHANCEMENT METHODOLOGY (BVEM)-Senthil Anantharaman, -Tata Communications Limited, Chennai.- senthil.anantharaman@tatacommunications.com

ICQRE - 2011INTERNATIONAL CONFERENCE ON

QUALITY & RELIABILITYENGINEERING

Recent Trends & Future Directions

Theme: Quality - New Frontiers20th December 2011

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“ The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical modern measures of performance, such as cost, quality, service, and speed”.

Hammer and Champy

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INTRODUCTION Business Process Re-Engineering

Goals Radically redesign organization’s existing resources. Dramatic improvement in Service, Quality and Speed. Contributes significantly than improving processes.

Differences from Continuous Process Improvement Massive change in contrast to small changes. Focus on relations in contrast to parts

Return on investment Better customer satisfaction/lesser complaints More net profit Less cycle time Opportunities for innovation/ produces new opportunities and markets

Disadvantages Lowers employees morale Substantial investment in computers and IT

Reasons for failure in BPR implementations.

Change

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BUSINESS VALUE ENHANCEMENT METHODOLOGY

(BVEM) A unique 11 stepped comprehensive BPR methodology

Reduces failures in BPR implementations.

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11 STEPS IN BVEM

o 1) Create Process Mission.o 2) Capture Voice of Stakeholders.o 3) Create SIPOC.o 4) Draw As –Is Process Maps.o 5) Create Measurement System Blue Print.o 6) Conduct Bench Marking.o 7) Perform Gap Analysis.o 8) Create To-Be/Future State Process Maps.o 9) Create Process Tables.o 10) Create Dashboards.o 11) Perform Failure Mode Effects Analysis.

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STEP 1 : CREATE PROCESS MISSION • Why does this process exist? • For whom does it exist? • What are our own reasons for setting this process up – what are our

drivers? • Not the same as Process Goals. Precedes and is more generic than

goals but

specific in its scope. Characteristics of a good Process Mission • Reflects and Represents the values of the Process founders • Brief, succinct, but clear • Covers “reason why” the process was set up. • Specific to what you are delivering Ex. Process Mission of a traditional restaurant’s kitchen : To be the first choice in our catchment area for home-like food cooked

using traditional recipes and processes. From this : The Stakeholders will be identified The Vision and Goals will be based on how Stakeholders describe their

expectations form this process.

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STEP 2 : CAPTURE VOICE OF STAKEHOLDERS

STEP 2.1 •Understanding our stakeholders• Who are we in business for?

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STEP 2 : CAPTURE VOICE OF STAKEHOLDERS(VOS)

Step 2.2 Understanding Stakeholder Needs How do you understand???

1.List all Stakeholder groups 2.List roles/levels within each 3.List individual representatives 4.Conduct interview/Record responses 5.Convert to Expectations/Needs in the QFD. 6.Brainstorm metrics 7.Look for measures with high correlation

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STEP 3 : SIPOC - TO SCOPE THE CUSTOMERS VIEW OF THE PROCESS

Build the SIPOC so it represents the Customer (stake-holder of the process) view.

Capture this view formally in defining the Output. The Output defines the sub processes (components ) in the Process

The Process then determines the Input. The Output and the Input are tangible, physical….and have attributes that are then measured

The Output coincides with the Start Point. The Input coincides with the End Point.

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STEP 4 :DRAW AS – IS PROCESS MAPS

•Start with strategic high level L 0’s,•Proceed to L1’s of each L 0’s•Proceed to L2’s which are more detailed with activities and decision boxes

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If you can't describe what you are doing as a process, you don't know what you are doing." - Deming

"Measurement is the first step that leads to control and eventually to improvement. If you can't measure something, you can't understand it. If you can't understand it, you can't control it. If you can't control it, you can't improve it."- H. James Harrington

"Without a standard there is no logical basis for making a decision or taking action."-Joseph M. Juran

What gets measured gets done, what gets measured and fed back gets done well, what gets rewarded gets repeated."- John E. Jones

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STEP 5 : CREATE MEASUREMENT SYSTEM BLUE PRINT

1.List all metrics/measures 2. Write out operational definition of the metric 3. Identify distinct data elements in each metric 4. For each data element identify certified data source 5. Determine when the data has to be extracted 6. Determine the method of collection 7. Determine the frequency of collection 8. Determine who will collect

Look to have measures that gives us distributions

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STEP 6 : CONDUCT BENCH MARKING

STEPS IN BENCHMARKING•Select subject•Define the process•Identify potential partners•Identify data sources•Collect data and select partners•Determine the gap•Establish process differences•Target future performance•Communicate•Adjust goal•Implement•Review and recalibrate

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STEP 7 : PERFORM GAP ANALYSIS

Goals• Determines the variance between business requirements

and

current capabilities It identifies gaps between the optimized allocation and

integration of the inputs (resources), and the current allocation level

How to perform?????? Decide the topic/subject you are going to perform gap

analysis on For Ex Revenue, Market share etc. Identify the As-Is Situation based on attributes. Identify the goals over a specific time frame. Identify the current gap and where you would want to be in. Determine how gap need to be filled …by using 5 M’s.

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STEP 8 :CREATE TO –BE PROCESS MAPS•Implement the corrections from gap analysis, use lean tools like VSM and create To – be/Future state process maps.•Start with strategic high level L 0’s,•Proceed to L1’s of each L 0’s•Proceed to L2’s which are more detailed with activities and decision boxes

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STEP 9 : CREATE PROCESS TABLES PROCESS TABLE AND ITS ELEMENTS Key Advantage : Single point of information Process/Sub Process Names–Each Process and sub process has its own

documentation. Clear link to the Deployment Flow Charts. •Activity id–In the format 1.1.1.1…The number of places corresponds to

the number of levels of drill down. •Activity –Description of specific task…taken as is from Deployment flow

chart. Verb-Noun format. •TAT –standard time for task. •R–the role(s) Responsible for this activity/task. •A –the role Accountable –only one and as far down as it will go. •C –the role(s) that need to be consulted (two-way). •I –the role(s) that need to be informed (one way). Input–define at activity level for those activities that need an Input.

Develop format/instructions, link as hyperlinks. •Source –where the specific input is obtained from. •Output -define at activity level for those activities that need an Output.

Develop format/ instructions, link as hyperlinks. •Destination-where the specific input is obtained from. •KPI –For all input and output points examine if a metric is required to

ensure success of the process.

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STEP 10 : CREATE DASHBOARDS Create dashboards of KPI’s obtained in

Process Table. Helps to unearth any patterns. Future resource for continuous improvement

projects applying lean, six sigma etc.

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STEP 11 : PERFORM FMEA

A structured approach to:

•Identify the ways in which a process can fail to meet critical customer requirements•Estimate the risk of specific causes with regard to these failures•Evaluate the current control plan for preventing these failures from occurring•Prioritize the actions that should be taken to improve the process.

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BRINGING ABOUT THE BPR TRANSFORMATIONSOME MIGRATION STRATEGIES

Full cutover to the new process, a phased approach, a pilot project, or creating an entirely new business unit.

Integration of the new process(/s) with other processes

Consciously managing behavioral as well as structural change, with both sensitivity to employee attitudes and perceptions, and a tough minded concern for results.

Use of proper BPM software tool like Case-wise is prescribed.

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BIBLIOGRAPHY

K.B.Unni, Symposium, Seven Hat Consulting, Bangalore, India.

Michael Hammer & James Champy, Re-Engineering The Corporation.

Michael Covert, Successfully Performing BPR, Visible Systems Corporation, MA, USA.

From Wikipedia, the Free Encyclopedia.

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THANK YOUVIEWERS

AND SPECIAL THANKS TO

BE TEAM, TATA COMMUNICATIONS LTD.