Business process re-engineering and systems design - implementation

1. A practical guide to business process mapping, systems design & implementation with staff training Using Six Sigma’s DMADV methodology Optimise -GB

2. Knowledge base Six 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. Optimise -GB

3. Knowledge base DMAIC is a six sigma methodology to improve the quality of products and services by reducing defects through business process re-engineering Optimise -GB

5. M A D V Process, policy, systems & training D Optimise -GB

6. M A I C Process, policy, systems & training D Optimise -GB

7. DMAIC to improve and control existing business processes DMADV to create new business processes / systems M A D V Process, policy, systems & training D Define Measure Analyse Improve Control Design Verify Optimise -GB

8. Let us run through a practical guide to implementing a new purchase order system that links into accounts payable and banking M A D V Process, policy, systems & training D Optimise -GB

9. Produce an A2/3 project charter to describe what the project is about and what it is to deliver M A D V Process, policy, systems & training D Optimise -GB

11. Process Improvement Stakeholder Identification! What external stakeholders are there? D M A I C Optimise -GB

14. 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 For our example: M A D V Process, policy, systems & training D Optimise -GB

18. 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 M A D V Process, policy, systems & training D Optimise -GB

19. ...Group the solutions to identify duplications Group the post it notes in an affinity diagram to identify common themes Theme 3 Solution 12 Solution 18 Theme 2 Theme 1 Solution 1 Solution 2 Solution 3 Solution 4 Solution 5 Solution 7 Solution 8 Solution 9 Solution 10 Solution 11 Solution 13 Solution 14 Solution 15 Solution 16 Solution 17 M A D V Process, policy, systems & training D Optimise -GB

20. 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 Kill Implement Later M A D V Process, policy, systems & training D Optimise -GB

21. Formularise the top 3 solutions Solution 1 Who? What? When? Where? How? Why? M A D V Process, policy, systems & training D Optimise -GB

22. Process map the activities Who, which department The what Operations Supplier Finance 1 - Raise purchase order (PO) 2 - Sends good / Invoice 4 – Enter invoice on system 5 – Match PO to invoice 3 – Receipts goods on system 6 – Schedule BACS payments M A D V Process, policy, systems & training D Automated system Optimise -GB

25. Review the process map for possible issues and wastes Waste category Office examples 1. Overproducing Printing / working on paperwork before it is needed 2. Inventory Filed in boxes, office supplies, batch processing 3. Waiting System downtime, managers approval, information from others 4. Extra processing Re-entering data, extra copies, excessive reports, budget process, scanning 5. Correction Data entry, design, invoice errors 6. Excess motion Walking to and from printers, other offices, filing 7. Transportation Excessive email attachments, multiple hand offs, approvals, postal services, internal post 8. Under utilised people Limited employee authority, excessive management control M A D V Process, policy, systems & training D Optimise -GB

29. * Unique reference All tables will need to be linked on a one to many relationship Design data tables (Identify all information requirements) Operations Person ID* Person’s Name (Auto by login) Cost Centre (Auto by login) Contact info 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 M A D V Process, policy, systems & training D Optimise -GB

30. Design data tables (Identify all information requirements) M A D V Process, policy, systems & training D 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 Optimise -GB

31. Design the Graphic User Interface (GUI) From table view To user interface view (Specifying drop down list boxes, fields to auto populate, validation checks, access rights etc) Operations Person ID* Person’s Name (Auto by login) Cost Centre (Auto by login) Approval limit Contact info M A D V Process, policy, systems & training D Optimise -GB

32. 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 M A D V Process, policy, systems & training D Optimise -GB

37. Training manuals: Each process maps should be accompanied by the following documents 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 Examples of what the finished output should look like: example being forms Check list for the activities to confirm completion and sign as authorisation Process map How to guide Policy info Specimen Checklist M A D V Process, policy, systems & training D Optimise -GB

38. 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 M A D V Process, policy, systems & training D Optimise -GB

39. 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 M A D V Process, policy, systems & training D Optimise -GB