Business Process Improvement

RIMS 2013 Forum

Adam BevinsStrategic Asset Manager

2

Knowledge as an asset

Wisdom

Knowledge

Information

DataIntelligent Systems

People

3

• Systematically managing knowledge as an asset

Business Process Improvement

Deming Cycle

Business ProcessesProject Management Processes (PMO) – Level 1

Core Processes – Level 2

Enterprise Data Model

Asset Management Systems

Asset Register Work flow Field Devices

Support SystemsNeeds

AnalysisSpatial

AnalysisFinance

ManagementResource Planning

HRIMS Health & Safety

Presentation Layer

Dissemination Layer

Why have business process improvement?

Condition Assessment

Traditional area of focus

Foundation

• Standardising terminology

• Business Goal– Behaviour: ‘One Downer Way’ across contracts– Customised to the way we do business

• Features– Standardising commercial framework – Provision of process mapping– Consistent system setups– Consistent data and reporting – Training, documentation held centrally

Business Processes

Business Processes - Approach

7

Example

Optimise Routine Maintenance

8

Maintenance Management Process – Downer NZ (Transport – Road)

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Phase

StartCustomer

CustomerServiceCentre2

Determine appropriate Dept.

Action by appropriate party

Downer related

Non - Downer

StartClient

Optimise funding and long-term asset

need

Document 10-year asset renewal plan

Maintenance Intervention

Strategy

Job Management

System

StartDowner

Asset specific inspection schedule(based on asset risk)

Identify defects on assets

Identify best value solution

Asset renewal recommended

Maintenance All-Faults List

Review Resource Capacity

Maintain 3-month rolling programme

of work5

Execute physical work Process claim

Resource management

system

Capture Customer Feedback1

Review productivity results4

EndClient & Downer

Not Enough Resource

Reprioritise work

Maintenance recommended

EndCustomer

Update Asset Register with As-

Built data

Asset Register3

Landscape Process – High level

Execute Contract – Plan: Optimise Routine Maintenance (monthly for 3 month rolling programme)D

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3-May-12

Review against Contract Strategy

(Contract MIS)

Review faults against FWP

Identify other similar work types

nearby

Extract routine maintenance

faults

Schedule against allowable budget

A

Review faults against FWP

Extract routine maintenance

faults

Identify other similar work types

nearby

Review against Contract Strategy

(Contract MIS)

JMS

C

Page 1 of 4

FWP PRS, Intranet

Execute Contract – Plan: Optimise Routine Maintenance (monthly for 3 month rolling programme)

Sys

tem

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25-Jan-12

A

Schedule based on known

productivity to date

Schedule against available resources

Assign programme month

Analyse forecast margin (3 month)

Schedule against external time constraints (ie

deadline)

Review resource capacity across geographic area

Productivity Reporting System

Schedule against external time constraints (ie

deadline)

B

Schedule based on known

productivity to date

Schedule based on known

productivity to date

Schedule against available resources

Schedule against available resources

JMS

Page 2 of 4

Productivity Reporting System

Execute Contract – Plan: Optimise Routine Maintenance (monthly for 3 month rolling programme)C

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B Perform resource levelling

Seek approval

Perform resource levelling

Perform resource levelling

Decide approval

Decide approval

one or more

Execute changes in JMS

C

approved

not approved

JMS

25-Jan-12

Page 3 of 4

Regional JMS

Decide approvalAssign resource to

dispatch

Assign resource to dispatch

Update status

JMS

D

Execute Contract – Plan: Optimise Routine Maintenance (monthly for 3 month rolling programme)S

yste

ms

F&

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anag

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Man

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25-Jan-12

Produce Forecast Margin Report for

F&A Manager

Receive forecast Margin Report

D

Page 4 of 4

Productivity Reporting System

• Standardising roles

• Development of robust job descriptions

• Organisational structure (relevant for larger organisations)

What we learnt on the way

14

Building on business processes

Business ProcessesProject Management Processes (PMO) – Level 1

Core Processes – Level 2

Enterprise Data Model

Asset Management Systems

Asset Register Work flow Field Devices

Support SystemsNeeds

AnalysisSpatial

AnalysisFinance

ManagementResource Planning

HRIMS Health & Safety

Presentation Layer

Dissemination Layer

Condition Assessment

Enterprise Data Model

15

Standardised Activity Codes: Logical Category levels, naming conventions

Naming conventions

Examples: TM6NZT-10-Coastal Otago-P TM6NZT-10-Coastal Otago-C-CM TM6NZT-10-Coastal Otago-C-DA TM6NZT-10-Coastal Otago-C-CS TM6NZT-10-Coastal Otago-C-CN1 TM6NZT-10-Coastal Otago-C-CN2

• OR:

TM6GOR-12-Gore-P TM6GOR-12-Gore-C-RM

Where: TM = Transportation Maintenance 6 = Area (1-6) NZT = NZTA GOR = Gore 10 = Last two digits of Commencement Year of the

contract (calendar year) Coastal Otago = Short Project Identification (as

appropriate for differentiation purposes) -P = Parent (optional, depending on project setup

structure)

And -C-CM = Child Project: Contract Management -C-DA = Child Project: Dunedin Area -C-CS = Child Project: Chip Seal -C-CN1 = Child Project: Construction 1 -C-RM = Roading Maintenance

Standardising our Financial System

4.52200 Direct Materials2401 Aggregates1 (means rock/bulk fill)2402 Aggregate 2 (means sub base)2403 Aggregate 3 (means base course) 2404 Aggregate 4 (means maintenance metal)2405 Aggregate 5 (means sealing chip)2406 Aggregate 6 (means any other aggregate)2409 Sand (plus dust and ice grit)2701 Asphalt Works2702 Asphalt Third Party2750 Asphalt Rap2800 Bitumen2900 Polymer Bitumen2950 Cement3000 Chemical (means Chemical or Additive)3200 Concrete3300 Emulsion3301 Emulsion 1 (means Polymer Emulsion)

3850 Other Materials (means Minor Materials)

Example:FY 2010/11Other materials = $56MAggregates = $24M

Detailed Data Mapping

18

Data Quality through intelligent data Management and people

Business ProcessesProject Management Processes (PMO) – Level 1

Core Processes – Level 2

Enterprise Data Model

Asset Management Systems

Asset Register Work flow Field Devices

Support SystemsNeeds

AnalysisSpatial

AnalysisFinance

ManagementResource Planning

HRIMS Health & Safety

Presentation Layer

Dissemination Layer

Why have business process improvement?

Condition Assessment

Early results

22

Implementation process

Hossein Cheraghi et al. (1999: p.3)

Questions?