iDatix Workshop: PEX Week Part 1
description
Transcript of iDatix Workshop: PEX Week Part 1
Synchronizing People, Processes & Information for Automating Operational Effectiveness
Enabling collective awareness for better decision making
Presenters Jeremiah Mapes
Steve Lincoln
Shanna Dulong
Martin Levesque
Process Improvement Consultant
Process Improvement Consultant
Product Manager & Process Improvement Consultant
Director of Professional Services
Session Breakdown & Agenda
General Intro & ClosetMaid (15 min) Session 1
● Common Errors in Analysis - Introduction (10 min)● Process Description & Role-play Scenario Video (5min)● Group Participation (45 min)● Corrective Action Review (15 min)
BREAK (10 min) Session 2
● Design Pitfalls Introduction (15 min)● Group Participation (25 min)● Corrective Action Review (15 min)
Session 3● Continuous Improvement Discussion (15 min)● Wrap Up / Q&A (5 min)
Their Mission for Reducing DSO’sHarnessing tribal knowledge and eliminating routine decisions to dramatically improve response times.
Martin LevesqueDirector of Professional Serviceswww.iDatix.com
Reducing DSO Through Automation
Automate Routine Decisions to Accelerate Processing for Each Type of Credit being Issued by ClosetMaid to their Client Base in the U.S, Canada and Mexico
(Defective products, Shortages, Promo incentives) Develop a Platform that Brings Together the 3 Elements of their
Business: People, Processes and Information Use Existing Legacy AS400 System Events and Logic to Drive
Workflow Automate Escalation and Sign Off of Approvals via Dollar
Amount/Regional Exec. Provide New Human Centric Process Metrics
Manual DSO Process
Three Major Areas of the Credit & Collections Process
Initial Claim Review Escalation of Approvals Final Review & Release
Using these component areas as a reference, let’s look at how they are represented in our automated workflow.
Combining People, Process and Information
Data from retailers is sent to Closetmaid through EDI Transfer Enters local database server
● Credit memo documents are created from raw data● Document is stored in iSynergy where it enters workflow
Automatic escalation based on debit code
Target
Wal-mart
Home Depot
Outsourced DE Team
EDI Transfer
Local AS400
Update DM Transactions Escalate
Process
Release
Credit Memos Are Automatically Created
Eliminating Routine Decisions
Supporting Docs Associated for Review
Verify Valid Signatures, Claim code.Balance Credit in workflow with AS400
AS400Claim CodeRouting OVER $10,000?
Manager Review
VP Review
UNDER $10,000?
Accounting Review
Credit Released in AS400 and Exits Workflow
Automated Routing Review
Automated Escalation of Approvals
Facilitated Final Review
WalmartEDI
Create Credit Memo
Ready to begin Session 1!
Session 1 of 3
Pitfalls Of AnalysisIdentifying and avoiding common errors found in the discovery process
Objectives
Pitfall #1: Client Self Diagnosis
Pitfall #2: Focusing on Exceptions
Pitfall #3: Not Getting all Perspectives
Pitfall #1: Client Self Diagnosis
Indicator: Process sequence is ignored● Only describes actions that involve execution of work ● Omits what triggers work to begin and how it completes● Routine tasks are left out of the process
Indicator: Being stubborn about solving X (my problem)● Frustration is top of mind● Ideal current state is not part of the conversation● My problem is paramount to all others
Indicator: Provided a vague vision, goals, objectives● The exec sponsor wants the process to “work better”● The mid-manager wants to deal with fewer problems● The knowledge worker is overwhelmed
Pitfall #2: Focusing on Exceptions
Indicator: Problems hide the core process ● Criteria for how and why something happens is missed● Relationship of exception to the core process is assumed● Solving for a specific issue defines how work is performed
Indicator: Frequency is not discussed● High impact, high frequency● Low impact, high frequency● High impact, low frequency● Low impact, low frequency
Indicator: Impact to business is not considered ● Describing departmental impact as rare● Inter-departmental impact is too politically sensitive to discuss● Organizational impact often involves external factors
Pitfall #3: Not Getting all Perspectives
Pitfall #3: Not Getting all Perspectives
Indicator: Total faith in one source ● Talking to the process owner is not possible● Information gatekeepers are afraid to reveal anything● KPI’s are used to tell the whole story
Indicator: Trusting an issue is real ● A vocal process critic is assumed to be right● Process description has words like always and never● Details about tasks not associated with the core
process
Indicator: Process description is assumed consistent ● Gaining consensus is not part of the methodology● Process discrepancies and gaps remain unclear● The entire process is loosely defined, but clear to
everyone.
Meet Craft Brew Co.
Craft Brew Co. is a microbrewery Will be studying their Material Fulfillment & Payment process
● Brewers submit material (ingredient) requisitions for individual batches of beer that they are tasked with brewing
Personnel available for interview● Brewmaster● Accounting Manager● AP Clerk● Receiving Agent
Hands On Activity
Get in groups of 15.
We will rotate between groups as you perform the business analysis on our roles in the process.
Your task is to identify the pitfall and take some notes on how your group either corrected the pitfall or would correct the pitfall.
Each round of questioning will last 8 minutes.
Analysis Pitfall Review
The hands on activity is over
Review Each Pitfall to decide which role(s) were exemplifying the behavior
Pitfall Corrective Action●How did you correct each identified pitfall?
General Review
Ask a question, and then ask it again
Ideally you would interview people involved in the order they interact with the process ● Not practical for workshop due to time constraints● Can’t always get access to people you need at a given time
Recommended to revisit interviewees to reconfirm after interviews covering the same process steps especially for discussions that occur out of order
Self Diagnosis: My Problem Demonstrated
Brewmaster● Partial orders affecting profits
We could better track when each brew is able start● Late payments
Costing us penalty fees Causing delays in delivery of subsequent orders
● Receiving not notifying the brewers Accounting Manager
● Receiving unnecessary invoices for approval ● Not receiving invoices for approval that I should be receiving
Receiving Agent● Blame game from Accounting● Brewers make us do multiple trips back and forth because they forget items● Receive POs for items with distant deliveries mixed in with current deliveries
Self Diagnosis: Vague Vision Demonstrated
Brewmaster● I want to become the number 1 craft
brewery!
● We need better scheduling so that we can increase profits
● If we can increase profits, we could brew at higher volumes
Self Diagnosis – Corrective Action
Self Diagnosis ● Provide a framework for the interviewee to follow how to describe the
process in terms of people, actions and artifacts needed to execute Middle of the Process
● Define Starting Point – How do you know you have something to do in this process? What triggers you to take action? What are the expected inputs and outputs of this role?
● Define ideal completion point and high frequency, high impact exceptions My Problem
● Investigate stated external factors negatively impacting the role separately Vague Vision
● Recognize that vague visions lead to vague results● Use the vision as a starting point ● Zoom into details of the vision
Focus on Exceptions Demonstrated
AP Clerk● Vendor Documentation Exceptions
Barley Breeze – different invoice format every time Duplicated invoices spanning multiple purchase orders
● International Vendor Exceptions Currency issues causing additional work for international orders
● Personnel Issues Brewers forgetting add all ingredients needed on the initial order Orders missing paperwork – requires redo of Purchase Orders
Focusing on Exceptions – Corrective Action
Exceptions Dominate the Interview● Maintain focus on Core Process● Recognize when the discussion is getting off track● Reset the conversation to focus on the ideal state of the process
Frequency is Ambiguous● Ask about Frequency● How Often does this happen? How bad does it affect us?● (Event Impact) X (Frequency) = total business impact
Impact to the Business is not Covered● Investigate stated external factors negatively impacting the role separately
Exceptions – Impact versus Frequency
Moderate InterestException
High Interest
Rule
Low InterestException
Moderate Interest
Rule
Business Impact
Frequency
Not Getting All Perspectives Demonstrated
Approval levels● AP Clerk say values are $250 for Accounting Manager review and $1000 for
Brewmaster review.● Accounting Manager & Brewmaster says values are $500 for Accounting
Manager review and $5000 for Brewmaster review.
Production Goals● Brewmaster wants to increase production rates by 15% by decreasing the
overall cycle time from requisition to batch completion.● AP Clerk delays orders by 5 days due to brewers frequently submitting
incomplete requisitions
Not Getting All Perspectives – Corrective Action
Trust but verify the information provided is accurate● Follow up with all resources involved with the process● Maintain an environment of confidentiality
Validate stated issues are experienced by others● Revisit and observe end users for demonstrated behavior● Collect feedback on possible solutions
Gaining Consensus is Key● When differences are identified, bring the team back together and
establish a common understanding of the process.
Up Next: Session 2
Common Design Pitfalls