SCM300 FINAL STUDY GUIDE
resources Dr. H.J.Harrington
Processes use an Organization's _______________ to provide definitive results." -___(who said this quote)______ - Business Process Improvement
1. INTENTIONS and PARAMETERS were considered 2. STRIVES for REPRODUCIBLE RESULTS 3. Can be MEASURED. Can be MANAGED.
What Makes Up a Good Process?
-MANAGEMENT - What do you and stakeholders want to manage? -INDIVIDUAL ACCOUNTABILITY - Someone is accountable for every step - Merit? Firing? -ORGANIZATIONAL ACCOUNTABILITY- Big picture taken into account. Considers co-dependent stakeholders and processes. Big picture.
What Makes Up a Good Process?: Can be MEASURED. Can be MANAGED.
-STAKEHOLDERS and GOALS - Have a purpose. Who? What? And Why? -DEFINE VALUES - Defining message to employees and customers. -DEFINE SUCCESS - Be specific. How will success be measured? -EFFICIENT and EFFECTIVE - Can goals be achieved with minimal waste? -RELATIONSHIP to SYSTEM- Considers co-dependent processes. Big picture
What Makes Up a Good Process?: INTENTIONS and PARAMETERS were considered
Deliverables
Project Management Description of services/products to be delivered -Presentation and/or Documents: Design, Process, Report, Contract -Research (Data or Document) -Physical item or Intangible outputs (Software)
Objectives
Project Management Goals. Expectations or desired outcomes in the following categories: -Performance and Quality - Improve the design of product -Budget - Reduce the cost of logistics by 10% -Time - Reduce delivery times by 2 days
Milestones
Project Management A Specific Event in a Project. -Date of an important decision - Choose location for Factory -Start of a new phase of project, End of a project phase - Begin electrical wiring in the home -A deadline - Date home must be completed and inspected
Each corner: Performance, cost, and time in the center: quality. all about trade offs.
Project Priorities Triangle
1. Find all possible Paths from Start to End. 2. Find the Critical Path(CP) or Paths. 3. Find the Cheapest Task to Crash in the Critical Path. In some cases you may need to consider crashing more than one task in order to affect all Critical Paths. Suppose you have 2 Critical Paths - ABC and ABD If the Crash Costs are A-$10, B-$15, C-$5, and D-$4 In this case Crash C and D ($9 total) - Reduces each CP by 1 week On the other hand, if instead A-$10, B-$15, C-$6, and D-$6 In this case crash only A ($10 total) - Reduces each CP by 1 week 4. Crash that item (or those items) by one week. 5. Change completion time in the Activity On Node (AON) Diagram. 6. Change Path times for all affected Paths. 7. Find the New Critical Path or Paths. 8. Repeat steps 3 through 7 until you've reached the desired project time. 9. Find total cost to reduce Total Project time to desired project time. 10. Take note of the increased pressure on each activity. Only those items not in any critical path will have slack time. All items on the Critical path must be completed within time allotted.
10 steps in How to Crash a Project
Good Intentions - Goal Oriented, Stakeholders considered, Effective and Efficient, Outputs are desired Reproducible Results - Documented and Easily Understood Measurable and Manageable - Entire system considered. Accountability, good metrics, easy to identify problems.
3 Aspects of a Good Process
1. MAKING ASSUMPTIONS - Never assume. Investigate. Investigate more. 2. DEVELOPING SOLUTIONS TOO SOON - Long lasting solutions are rarely obvious 3. LISTENING TO CLIENT's PRE-FABRICATED SOLUTIONS - Why now? It's bullshit. 4. SCOPE INFLATION - Limited time. Limited Resources. Stay focused. 5. STICKING TO A DEAD-END SCOPE - Is it time to quit? 6. MAINTAINING HAPPINESS - Change is difficult.
6 things to avoid to be a Good Consultant
1. DATA SKILLS - Are you skilled at Data Collection, Data Analysis? 2. VALUES FEEDBACK - Seek Feedback, Use Feedback 3. CREATIVITY - Be creative in developing solutions 4. UNDERSTANDS PEOPLE - Create solutions that work for humans 5. CHANGE AGENT - Anticipate Learning Curves and Resistance to Change 6. DESIRE TO HELP PEOPLE - Don't get angry. Remember you are there to help. 7. VALUES SIMPLICITY - Easy to Understand Solutions - Explain changes, benefits, metrics...
7 Aspects of Being a Good Consultant
Executive Dashboards Explained: Intended to help executives evaluate, manage, and plan. One of the primary goals of Executive Dashboards should be to make management and decision making easier. While most are visually engaging, some are so comprehensive in the data they provide, that they can often become both confusing and intimidating to managers and executives.
A computer- generated visual representation of a company's performance that is often available to executives on nearly any of their digital devices. Provide managers with important data that likely includes, but is not limited to, KPIs. Often includes both real time data and historic data as well as color coded performance centers that help managers quickly spot positive, negative, or neutral output.
System of metrics Basketball example: Points/game, Rebounds/game, Assists/game, Turnovers/game, Turnovers caused/game Academic example: GPA, Standardized Test Scores, Years to complete degree
A group of metrics that collectively attempt to provide a multi-dimensional view of a resource or outcome. collection of measurements used to evaluate a process, person, company, etc. from multiple perspectives
SCOR Model (Supply Chain Operations Reference)
A measurement tool that enables supply chain partners to track performance, communicate progress, and develop opportunities for improvement.
a Project
An endeavor in which human, material, and financial resources are organized, in a novel way, to undertake a unique scope of work, of a given specification, within the constraints of cost and time, so as to achieve a beneficial change defined by quantitative and qualitative objectives.
Shared metrics Example: Student grades and instructor evaluation are two metrics that measure in only a single direction. A student may earn a poor grade so they may retaliate and write a negative professor evaluation. It's difficult to tell if the instructor was poor, the student, or both. Imagine if there was a metric that would require good output from both student and instructor. If such a metric existed, the instructor may try harder to engage the student and create a better learning environment. Meanwhile, the student may work to understand the material better and guide their instructor as to their specific needs.
A metric that is impacted by two related parties
Balanced Scorecard (BSC)
A performance measurement tool that focuses on strategic activity and strategic outcomes. While some companies alter the 4 elements of this, most companies utilize some form of the traditional version of this that tracks output in 4 different areas.
Performance Metric Basketball example: Points per game Academic example: GPA
A single performance measurement used to evaluate, motivate, and improve performance
Managerial Paralysis Explained: If someone gave you a data set of 1000 numbers and told you the key to making an important business decision was somewhere in the data set, would you make a decision quickly or take a long time to find the data that would support the right decision? Even if you found data to support your decision would you be confident that the data you found was definitive? In the era of big data, managerial paralysis can be a daily challenge. In a world that demands speedy decisions, managers that do not have a firm understanding of performance measurement and data analytics are likely to suffer the stress associated with Managerial Paralysis
A situation where managers are inundated with data. This overflow of data actually slows decision-making and may even result in managers stalling or avoiding decision-making
mislead managers. example: suppose a basketball player makes an average of 6 baskets per game and takes an average of 8 shots per game. This player would seem to be quite effective in scoring baskets and they would also appear to be very efficient, successfully making 75% of attempts. These 2 measurements alone do not account for adaptability. We don't know if the player scores these against good or bad teams, children or adults, left-handed or right-handed players, etc. In order to more fully assess this player's shooting ability one or more measures of adaptability would be required.
A system that does not measure all of the 3 key measurement system attributes effectively is subject to ________________
1. Effective- Were the desired goals met? examples: goals scored, deliveries completed, products manufactured, courses passed, etc 2. Efficient- A measure of the resources used in the process. examples: minutes played, shots taken, cost of gas to make deliveries, amount of aluminum used, hours studied, etc. 3. Adaptable- A measure of the conditions in which the tasks were completed. Flexibility of the process to handle special requests and changing customer expectations. Examples: road games, rainy days, against top ranked opponents, small class size, online course, etc.
A well rounded system of metrics should include a group of individual metrics that together measure each of the attributes. What are the 3 key measurement system attributes?
Activity On Node
AON (_____________________) Network Diagram
1. Plan- demand and supply chain planning 2. Source- Purchasing process 3. Make- Manufacturing Process 4. Deliver- Logistics and transportation 5. Return- reverse logistics
According to the SCOR model, the 5 primary supply chain processes are:
Balanced Scorecard
Aligns Vision, Mission, Customer Expectations, Day-to-Day Operations Management. Allows for communication of corporate progress. Is success in one metric detrimental to the organization, team, individual in another area which is important to the Overall Goals/Mission/Objective?
ill-conceived metric
An ________________ can motivate bad behavior and cause managers to make poor decisions.
Business Process
Any activity or group of activities that takes an input, adds value to it, and provides an output to an internal or external customer.
Knowing the relationships between the stakeholders helps a manager understand how certain actions by one party may result in certain reactions by the other stakeholders. It may also begin to reveal how ambitious, lazy, or nefarious individuals may try to take advantage of metrics.
As basic as this may seem it is very often the primary reason poor metrics and poor systems of metrics are developed, adopted, and implemented. What is the importance of stakeholders?
1. Development of poor or limited processes - May result in limited capacity, inefficiency, confusion... 2. Lack of appropriate tools, technology...
Bad Processes. How do limitations make bad processes?
1. Market Evolution - Customer's needs have changed 2. Miscommunication - New employees do not understand goals, process...
Bad Processes. What are some reasons why a process could go from being good to bad? (used to be good)
1. Ambiguity - Goals are not clearly understood. Laziness, Hubris, Lack of information 2. Misalignment- Goals and Actions not in alignment 3. Miscommunication - Employees do not understand goals, process...
Bad Processes. What are some reasons why a process was never good?
Rectangle Diamond Oval Arrow (to depict Flow and symbol) Rectangle within a Rectangle Circle Half- Oval Connector (2 circles with arrows on each)
Basic Flow Chart Symbols
Lower Costs Reduced Risks Product Safety Improve Predictability Superior Quality Enhanced Process Consistency Greater Brand Protection Simplified Operations Serve the Customer and the Organization
Benefits of Business Process Management
1. General Process Flow Problems - Quality Control Tool 2. Information Technology 3. Required Resources, Quality of those Resources 4. Operational Considerations - What can be learned through Testing? 5. Everyone sees the process differently - What is learned in each Department?
Business Process Design: Value of Flowcharts
1. Marketing - Customer, Suppliers, Product Line, Forecasting, Branding 2. Finance - Project Feasibility, Return on Investment 3. Accounting and IT - Costs and Data Management
Business Process Design: Value of Flowcharts Everyone sees the process differently - What is learned in each Department?
-What type of software will be used to facilitate the process? -Where will data be collected? Data needs for Marketing, Finance/Accounting, SCM -Database development and IT infrastructure requirements
Business Process Design: Value of Flowcharts Information Technology
1. Potential failure points in process 2. Average service encounter time, Variability concerns 3. System Capacity -Operational difficulties, Bottlenecks, Process flexibility 4. Waiting Line Management -Customer Service -Facility, Infrastructure, and Staffing Requirements
Business Process Design: Value of Flowcharts Operational Considerations - What can be learned through Testing?
-Employees and Managers - Skills, Training, Staffing requirements to meet demand -Materials and Capital Equipment -Money
Business Process Design: Value of Flowcharts Required Resources, Quality of those Resources
1. Managing from a distance - Executive to Associate 2. Bigger requires better business processes - The more locations or larger the customer base for a company the more important the standardized processes that make up its operations - Wal-Mart, McDonald's, Dell, etc. Key to franchising (Cut and paste businesses) 3. Top managers understand business processes - The more processes utilized by a company the more important it is to have managers that understand the importance of properly designing, effectively managing, and improving processes.
Business Processes and Supply Chains Ties to Growth, Quality, Design and Improvement:
fabric
Businesses processes are the ________ of an organization
Clothing Purchased and Priced -> Design Catalog - Style, Ease, Order Info -> Distribute Catalog -> Customer Places Order -> Pick, Package, and Label Order -> Deliver Order -> Support and Returns
Call Center Example: Block Diagram
Corporate Career Successful Leaders get more responsibility, power, money... Top Project Managers have the ability to choose projects, teams... Unskilled, unintelligent, and "control freaks" are easily exposed in a project environment
Careers Built on Improvement Projects Corporate Career
Resume Builder - Little stories about your career What you have done. Ability to get results. Leadership experience. How do you deal with adversity and ambiguity... Good way to document your accomplishments (Grades & Degrees are useless)
Careers Built on Improvement Projects Resume Builder - Little stories about your career
Vital to Corporate Careers - No matter what the major Well-defined goals Teams and Individuals have responsibilities Recommendations and Implementation Measurable Results - Success or Failure?
Careers Built on Improvement Projects Vital to Corporate Careers - No matter what the major
Connector (2 circles with arrows on each)
Connector: Output leads to another flow chart or into another flowchart What is the Basic Flow Chart Symbol?
SECTION ONE - Present a Valuable Idea -List Values, Objectives, and Goals - What does the client want? -Recommend - Basic Solutions and Anticipated Benefits SECTION TWO - Convince on all fronts -Cost-Benefit Analysis - Money is important -Value to Work Ratio - Expected outcome / Expected investment -Organizational fit - Rules, Regulations, Culture, Organizational structure SECTION THREE - How will success be Measured? -Explain the GAP and the path to success with metrics -How will metrics signal positive and negative? SECTION FOUR - Implementation (Making the idea happen)
Consulting: Selling your Solution What are the 4 sections in Recommendations: Prepare to Sell?
-EX company: computer silicon wafers - A bad process is created when someone keeps to the same safe routine - A successful business continues if you learn a faster or better way of doing things - If steps are important you need to communicate that to the employee, some people try to be good employees by finding easier ways, but sometimes the skip important steps that they never fully knew or understood A story told by consultants to other consultants and their clients to explain how their processes got so bad
Cow Path Theory
Diamond
Decision point where multiple flow paths possible What is the Basic Flow Chart Symbol?
Half- Oval
Delay in Process What is the Basic Flow Chart Symbol?
An arrow WITHIN the business process flowchart
Depicts Flow of Customer/ Material within the Process
Cow Path Theory
Effective does not mean Efficient
1. Managers fail to use the data- Some managers may choose to follow their intuition or personal beliefs to guide their decisions, despite valuing metrics. 2. Blind belief in institutional metrics- Companies may not bother to test their traditional metrics or investigate behaviors the metrics may influence. Some managers believe that "these are the numbers we've always used, why make a change?" 3. Incomplete Measurements- Some managers prefer to only measure what they and/ or their departments do well. To them, the perception of positive outcomes is more important than actually achieving the company's primary goals. 4. Utilizing too many metrics- Some organizations get too excited about measuring. Any measurement that can be captured is not only measured but it is made available to managers. This can confuse managers and lead to managerial paralysis. 5. Driving toward perfection may waste resources- When managers drive employees to make perfect scores, extreme employee efforts may be inefficient (marginal returns, poor use of resources) 6. What do these numbers really mean?- We may know high numbers are good and low numbers are bad, but do managers understand what the results indicate? How much better is a 3.8 GPA than a 3.6? Is their a significant difference in the quality of these students? How do they help the 3.6 student and/ or instructor?
Even in organizations that value performance measurement, there are a number of common errors that companies often make. What are 6 common measurement pitfalls in business?
the diversity of issues
From a supply chain perspective, the BSC approach is a good way to demonstrate ___________________________ in a supply chain, which could ultimately impact the bottom line.
1. Gap between Desired State and Present State? >Utilize key metrics and goals to identify size of GAP. 2. Analyze why gap exists 3. Share and discuss with clients DO NOT DEVELOP SOLUTIONS
GAP Analysis
individual goals
Goals and Stakeholders The key to developing metrics that meet stakeholder goals is first recognizing all the stakeholders and then understanding their __________________. Who are all the primary stakeholders? What does each party want? How do these parties interact? How will certain stakeholder actions impact other parties?
system of metrics
In most cases a single metric does not provide enough information to help a decision maker make the most informed decision. As a result, managers will often develop a _____________________ that will provide a more well-rounded picture of the person, company, resource, or outcome being evaluated. Take a moment and think about which 3 to 5 metrics you might use to evaluate the full value of a basketball player, a college graduate, a co-worker, or even a college professor.
shared metrics
In supply chains where buyer- supplier cooperation is vital to supply chain excellence, having metrics that motivate companies to work toward outcomes that favor both sides of a supply chain relationship is vital. Modern supply chain managers are working to develop ___________________ across their supply chains, but as you might imagine, developing these sophisticated metrics is not easy.
Key performance indicators (KPIs) Explained: in the era of big data where dozens, hundred, even thousands of performance metrics are available to managers at any time, companies will often develop a set of KPIs. These are established to provide managers a dashboard view of corporate performance. Think of it like a car dashboard that gives you metrics so you are more easily able to identify a possible problem. KPIs are established simple, but important metrics, that can act as an early warning sign of of problems emerging in the company. Or the opposite.
Individual performance metrics identified by the company as being imperative to achieving the organizations most important goals
Circle
Inspection Requirement What is the Basic Flow Chart Symbol?
1. DEFINE THE PROJECT -Clarity of objectives. Eliminate ambiguities. Avoid Arguments later. 2. ESTABLISH PROJECT PRIORITIES -Choose two types of quality: Cost, Time, Performance 3. WORK BREAKDOWN STRUCTURE -Break work items into smallest units. -Estimate of needs: people, Time, Cost 4. TRACK PROJECT PROGRESS - -Are we on-time, ahead of schedule, behind schedule? -What happens when different groups need help? -Importance of project management software
Key Steps of Project Management
Performance Measurement
Measuring employee performance for the purpose of motivation, improvement, statistical reference, promotion, termination, etc.
Arrow SYMBOL
Movement Transportation What is the Basic Flow Chart Symbol?
Rectangle within a Rectangle
Process: Depicts an entire process Likely depicted in another flowchart What is the Basic Flow Chart Symbol?
Oval
Terminator: Depicts Start/End Entrances and Exits to Process What is the Basic Flow Chart Symbol?
1. Why are most initial processes inefficient? How do typical processes develop? --Who was the developer? Development conditions? --Why weren't inefficiencies addressed? Immediately? Later? --Why are some process inefficiencies sometimes required? Regulations?
Questions to ask with Cow Path Theory
Crashing the Project
Shortening the Time of the Project by increasing the number of resources usually in the most cost effective manner. When Crashing in this class, ALWAYS choose the cheapest solution.
Business Process
Step-by-step breakdown that aids in providing high quality results on a consistent basis utilizing minimal resources.
Define Goals and Parameters- 1. Goals, Values, Stakeholders 2. Block Diagram 3. Establish the Scope Define Success- 4. Define the Service 5. Measurement & Management Considerations Build it, Test it, Improve It- 6. Primary Steps Detailed 7. Develop a Process Map 8. Evaluation, Testing
Steps of Designing a Business Process
Define Success- 4. Define the Service - Get more specific. Establish exactly what process needs to accomplish 5. Measurement & Management Considerations - Metrics and Data. How will they be used?
Steps of Designing a Business Process. What are the 2 steps in Define Success?
Build it, Test it, Improve It- 6. Primary Steps Detailed - Begin to build the process steps 7. Develop a Process Map - Create a visual representation of the process 8. Evaluation, Testing - Evaluate the process before rolling out.
Steps of Designing a Business Process. What are the 3 steps in Build it, Test it, Improve It?
Rectangle
Task, Operation, Data Collection What is the Basic Flow Chart Symbol?
Critical Path
The Longest Path (in terms of time) in the AON Network Diagram. This path dictates the expected completion time of the Project. Items on this path must be completed in time in order for project to be completed on schedule.
-Metrics can help identify strengths, weaknesses, areas of improvement, and areas of decline. -Metrics can create a platform for unbiased recognition and/or promotion of people, groups, and companies. (If a global company has 50 purchasing managers that all apply to become the chief purchasing officer, how can a top executive make a fair and informed decision about which of those 50 managers will get the 5 allotted interview spots?) -Metrics can sometimes point to corrective actions. (Suppose a basketball team is losing a number of games by small margins. Their results in most measured categories are above average or excellent, but they have very poor free throw data. Should the team spend an equal amount of time improving in all facets of the game or is their perhaps a better way to utilize their limited time in practice?)
The Value of Metrics What are some ways Metrics can provide valuable output to managers?
Slack
The amount of time an activity or path can be delayed with impacting the length of the critical path.
impact the financial results. A company with a poor work environment, a stagnant work environment, or a poorly trained work force is likely to experience issues at many levels. All of these problems could very soon impact processes, customers, and profits.
The theory behind the BSC approach is to proactively look for problems before they _________________________. Rather than wait for profits to decline or sales to drop, a company should see problems that may be on the horizon by measuring beyond financial results.
SCOR Model (Supply Chain Operations Reference) The SCOR Model is complex and can be difficult and/ or expensive to implement, but a large group of global companies have. Many of those companies have reported improved supply chain performance since the adoption of the SCOR model.
This management tool is considered valuable because it connects supply chain activities from suppliers at one end of the supply chain to customers at the opposite end of the supply chain, and all supply chain parties in between.
-DOCUMENTATION - "Written" step-by-step explanations available. Video? Audio? -EASILY UNDERSTOOD - Well defined job descriptions, job requirements -HIRING and TRAINING - Who will be hired? What will they need to succeed? -SCALE and CAPACITY - Under which demand conditions will this process work? -ADAPTABLE - Can the process adapt to changing needs? Changing environment?
What Makes Up a Good Process?: STRIVES for REPRODUCIBLE RESULTS
1. Stakeholders and Goals- Have a plan that resolves around them. 2. Good metrics 3. Simplicity- Try to tie metrics to easy to understand outcomes, resources, and behaviors to attempt to keep things simple. Otherwise, it may be difficult for managers and employees to understand resulting data. 4. Completeness- Be sure system accounts for efficiency, effectiveness, and adaptability. 5. Redundancy- Make sure multiple metrics are not measuring the same thing. 6. Continuous Improvement- Try to motivate employees to work while still boosting morale. 7. Leadership- Measurement systems must be explained and fully supported by leaders at every level. When managers are unable to explain the importance of each metric, employees lose confidence in the validity of the system. Also, if managers do not support certain metrics, employees will not respect those metrics.
What are 7 keys to designing a system of metrics that will help monitor the output of an employee, a process, or company.
-Applying for a Business Program to exemplify a Swim Lane Flowchart -Pizza Delivery to exemplify Basic Flow Chart Symbols
What are some examples he used in Module 9?
• Supply chain goals are not met - Bad metrics drive companies away from being effective, efficient, and adaptable. • Poor output - Employees may be working quickly but it could cause them to make more mistakes. • Waste - Employees driven to work quickly may make more defects and as a result employee time was wasted, materials and energy were wasted, and more resources will be used to produce and deliver new items, and recover defective items. • Undesirable employee behaviors - Employees may be driven to cheat, seek shortcuts, and engage in activities that provide marginal returns. • Managers may make poor decisions - Managers may be fooled by data related to poor metrics. It's also possible managers may intentionally make poor decisions if they feel it could result in better numbers in poor metric categories favored by top management, especially if those metrics are tied to monetary bonuses and/or promotions. • Employee victimization - Honorable employees may become victims of employees that will "game" the performance metric system at any cost. When employees that take shortcuts are rewarded, honorable employees feel hurt for doing the "right thing." • Undeserved winners - Unqualified and/or dishonorable employees may be promoted into positions of power. This could result in long-term corporate dysfunction. • Lack of Contentment - When employees understand that the performance measurement system is flawed they become unhappy with their jobs and lose motivation. Their job performance and decision making is no longer driven by positive values and creativity, but rather by satisfying a system of numbers.
What are some negative outcomes that may be associated to poor metrics?
• Helps to establish and support standards - Students incapable of getting a C or better in their algebra course should not be allowed to progress to the geometry course. • Motivate good behavior - Sales employees that do not receive an 8 out of ten average or higher on their weekly customer evaluations will not receive their bonus. . • Identify trends - 80 customers that purchase product A typically purchase product B within 3 weeks of their product A purchase. • Manage from afar - Ford Motors has manufacturing facilities around the world in over 50 countries. Performance metrics allow the very top executives at Ford to understand which facilities are performing well or struggling on a daily basis without having to be at each of those facilities. • Managing large numbers of resources - American Express employs over 50,000 people in dozens of countries around the world. Without performance metrics it would be difficult to identify areas of strength and/or weakness among their pool of human resources. • Performance data can facilitate decision making and planning - In each of the above items and associated examples, making good decisions and developing plans with higher probabilities of success is dependent on having access to performance measurement data.
What are some reasons organizations utilize performance metrics?
Generalists & subject matter experts. Subject matter experts can give you very specific guidance
What are the 2 Consultant types?
Define Goals and Parameters- 1. Goals, Values, Stakeholders - What needs to be accomplished? Who is involved? 2. Block Diagram - A process is part of something bigger. Describe the system in which process will lie. 3. Establish the Scope - Define parameters of process. Beginning and End.
What are the 3 steps in Define Goals and Parameters in Designing a Business Process?
1. DESIRED STATE - Quantifiable Goals 2. PRESENT STATE - Collect Data and Observe 3. GAP ANALYSIS - Compare Present vs Desired State 4. PROJECT SCOPE - You can't fix everything. Stay focused. 5 COLLECT and SHARE DATA, ANALYZE - Investigate. Get Feedback. Consider solutions. 6. DEVELOP SOLUTIONS - Solutions they will buy. Make an impact. Push for creativity. 7. DEVELOP IMPLEMENTATION PLAN - Provide a path to adoption.
What are the 7 steps of Business Process Improvement? (BPI)
-Measureable - can it be measured with a good degree of accuracy? -Easily understood - how can employees and managers know what they need to do if they don't understand the metric? -Attainable - Employees need to feel that meeting the goals for that metric are feasible. -Strategically oriented- Align goals with desired actions. Does the metric motivate employees to work toward the desired goals of the company? -Easy to measure- How much effort, time, and money is required to accurately track the metric? The cost of the tracking the metric should not outweigh the value the metric provides the organization -Provides value- Beyond motivating good behavior, data produced should provide managers and employees with information that will lead to better resource utilization, the production of competitive outputs, and the early identification of both positive and negative trends -Provides guidance- Metrics are intended to make managing easier. It should be clear what good numbers and bad numbers are. If required, a metric should point managers to corrective actions -Cheater proof- A well crafted metric should not be easily manipulated. Managers should develop metrics where negative behaviors might be anticipated and defended against before the implementation of the metric.
What are the Requirements of a Good Metric? This list provides guidance in creating high quality metrics. It is also helpful in evaluating metrics that are presently being used by an organization.
1. Find all possible Paths from Start to End. 2. Find the Critical Path(CP) or Paths. 3. Find the Cheapest Task to Crash in the Critical Path. In some cases you may need to consider crashing more than one task in order to affect all Critical Paths. Suppose you have 2 Critical Paths - ABC and ABD If the Crash Costs are A-$10, B-$15, C-$5, and D-$4 In this case Crash C and D ($9 total) - Reduces each CP by 1 week On the other hand, if instead A-$10, B-$15, C-$6, and D-$6 In this case crash only A ($10 total) - Reduces each CP by 1 week 4. Crash that item (or those items) by one week. 5. Change completion time in the Activity On Node (AON) Diagram.
What are the first 5 steps in How to Crash a Project
6. Change Path times for all affected Paths. 7. Find the New Critical Path or Paths. 8. Repeat steps 3 through 7 until you've reached the desired project time. 9. Find total cost to reduce Total Project time to desired project time. 10. Take note of the increased pressure on each activity. Only those items not in any critical path will have slack time. All items on the Critical path must be completed within time allotted.
What are the last 5 steps in How to Crash a Project
Step ONE: DESIRED STATE -Interview Client - Identify Objectives, Goals and Metrics -Goals must be quantifiable. Establish a hierarchy.
What do you do in Step 1: Desired State of Business Process Improvement? (BPI)
Step TWO: PRESENT STATE -Interview, Observe, and/or Collect Data (Utilize the same metrics from "Step One") -Process Maps and Data Inspections - Do actions and documentation match?
What do you do in Step 2: Present State of Business Process Improvement? (BPI)
Step THREE: Gap Analysis - Gap between Desired and Present State -Illustrate the GAP - utilize desired metrics and goals Do NOT develop Solutions!!! -Share and discuss the "GAP" with clients. Why does the gap exist? Consider potential causes.
What do you do in Step 3: Gap Analysis of Business Process Improvement? (BPI)
Step FOUR: Develop Project Scope -Develop a focused project. Which GAPS will be addressed on this improvement project? -Establish goals and desired outcomes. -What will be investigated? What will be developed?
What do you do in Step 4: Develop Project Scope of Business Process Improvement? (BPI)
Step FIVE: Collect Data, Share Data, Analyze -Deeper Internal and External Investigation - Benchmark, learn from others, success/failure -Get Feedback- Share and Discuss Findings -Consider possible elements of a solution
What do you do in Step 5: Collect Data, Share Data, Analyze of Business Process Improvement? (BPI)
Step SIX: Develop Solutions and Recommendations Does this problem even require change and/or innovation? If a solution is needed, where to start? -Focus on YOUR client - Avoid one-size fits-all solutions -Start with Two Options - Change Nothing, Eliminate Process -Get Innovative: Embrace the Repugnant "Good Ideas" are Useless - Will they actually adopt the idea? Do some issues require further study? Future projects Get Feedback Early and Often Are you Preparing for Resistance at Final Presentation?
What do you do in Step 6: Develop Solutions and Recommendations of Business Process Improvement? (BPI)
Step SEVEN: Develop an Implementation Plan How should these ideas be put into action? Be Specific! -Timeline -Training and Development Considerations Outlined -Anticipated problems and corrective actions -Metrics, Standards, and Checkpoints
What do you do in Step 7: Develop an Implementation Plan of Business Process Improvement? (BPI)
The cow is told by boss to go drink water. It runs into walls but eventually finds water. Boss is happy, customer is happy, and more customers want to see the cow drink. The cow doesn't have room for error and accepts flawed system of drinking water rather than trying faster and effective way. When old cow leaves, new cow comes in and is expected to do job the way the old cow did, when it clearly sees faster and more effective way to reach water.
What does the Cow Path theory demonstrate about how processes develop and how bad processes become accepted?
Supply Chains are made up of a series of interconnected and interdependent processes. Each Process is a mini-supply chain - Managing Inputs and Outputs at a smaller scale.
What is a Businesses Processes relationship to supply chain management?
A metric that is specific, measurable, attainable, relevant, and timely.
What is a SMART metric?
Desired: 1. Interview: Identify objectives, goals and metrics 2. Primary objectives: What they want 3. Quantity Objective: How we will measure 4. Repeat until everyone agrees Present: 1. Interview 2. observe and or collect data 3. process maps and data inspections 4. utilize the same metrics from desired state
What is the difference between desired state and preferred state?
1. Financial Results- Utilizes some basic financial metrics related to cost, revenues, and profit. 2. Customer Related Results- Measures to see if the company is meeting the customers product and/ or service requirements as well as customer satisfaction expectations. 3. Internal Business Process Results(Operational Effectiveness)- Measure to see that the business processes in the supply chain are running efficiently and effectively. 4. Learning and growth results- Measures the working environment, the dedication to continuous improvement, and other issues that are related to a company's human resources. Can we change/improve to meet future needs
While some companies alter the 4 elements of their balanced scorecard, most companies utilize some form of the traditional scorecard that tracks output in 4 different areas. What are the 4 different areas?
Never Was Good Used To be Good Limitations
Why do bad processes exist?
