Business Process Management Software Enabling...

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Unlock The Potential of e-Business

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ASQ Presentation, June 11, 2003

www.6sigmatech.com

Business Process Management SoftwareEnabling Process Quality

www.handysoft.com

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1. What is Business Process Management (BPM) software2. Uses in process engineering and management3. Uses in breaking cultural barriers to Quality4. Uses in implementing and managing Quality programs5. Use in removing functional silos6. The BPM value proposition7. BPM demonstration - HandySoft

Agenda

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BPM Overview

• Automates soft processes into a Web based application– Process centric application rather than application centric process– Stimulates, monitors, reports upon process user behavior– Turns paper into data– Gathers process data, X and Y

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BPM Overview – What it Does

• A workflow in which the suppliers, inputs, outputs, and customers of each activity are defined

• Resources, metrics, variables defined for each activity• Flow charting capabilities – real time living process documentation• Enables document control• Integrates functionally centric applications

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BPM Overview – What it Does

• Provides basic management reporting• Single console for management of key processes *• Simple to Use

– Flow chart the process– Integrate forms and controls– Assign users and roles– Assign metrics and deadlines– Define process variables

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BPM Overview – Technical Role

• An integral part of the Quality team toolkit– Import processes from MS project or simulation tools– Import process maps and swim lanes from design tools– Export volumes of meaningful process data to statistical analysis tools

• Durations• Defects• Users• Customer• Inputs

– Integrate customer satisfaction analysis measures and systems

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BPM Benefits

• Forces people into the process, no other way• Automates data collection• Detects defects in soft processes• Provides flexibility to change process as needed• Provides much process documentation in living format• Reduces learning curve• Reduces implementation time• Reduced cost of data collection• Reduced cost of process implementation • Reduced process management from Quality team• Can be used to automate the iterative continuous improvement cycles• Rapid deployment = earlier improvements = Profit

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BPM Uses in Process/Quality Engineering

• Enables DMAIC– Define: Flow charts, documents metrics, roles, users, inputs, outputs, systems– Measure: Gathers data for measurements, simulates performance– Analyze: Management reporting, open data for use by stats tools– Improve: Rapid, effective deployment of to-be process– Control: process data collection, special case detection, reporting, easier changes

• Automation of engineered processes• Real time detection of special cases

– Inputs– Users– Missed dates

• Defect detection and analysis– Real time– Over time

• Process data collection• Provides a user friendly way to roll out sophisticated process management• Training• Management buy-in• Process enforcement• Removal of cultural barriers

MOPs Process

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BPM Uses in Breaking Barriers to Quality

BPM ImpactImplementation Barriers

System provides an on line, real time way to learn at own pace

No time to learn new processes

Provides the only way to get the job doneNo way to enforce new behavior

Helps this problem with easy reporting, but process owners must analyze and take responsibility for quality.

Don’t have analytical skills

Collaboration is enforced when process is “brought to life”via IS

Doubts over collaboration of others

Systems will show where the problems resideProblem is “out of our hands”

Visible commitment to IS solution reinforces commitment to quality efforts

Process drill will eventually go away

Reduces need for them to see the value and will make their jobs easier

Don’t see the valueOnly the process creators need to know the termsAfraid of 6 Sigma termsDoes the math for themAfraid of mathProvides the only way to get the job doneResistance to changeLess need to understand, process is automatedGeneral lack of understanding

• Process automation reduces training costs– 6 Sigma training– New process training

• Process automation reduces complexity for process owners and users– Automated data collection– Does the math– No need to know Six Sigma terms– Allows process users to focus on their steps in the process

• Process automation removes the need to coax people into the new process– It is the only way to perform the process

• Process automation allows you to rollout a new process under the label of an IT project that makes life easier

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BPM Uses in Implementing and Managing Quality Programs

• Selecting projects and project teams• Storing and managing quality tools and templates• Ensuring some degree of consistency in the approach to process management• Determining and measuring quality project metrics• Gathering the data needed to analyze and improve the Quality team

Six Sigma

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BPM Uses in Removing Functional Silos

• One of the biggest problems in most organizations – Functional silos– Self optimizing– Wall building– Little perspective on the end-to-end process– Blame other departments– Build function specific rather than process centric applications– No clear accountability for process Quality

• BPM does three things to help remove functional silos1. The nature of BPM (automation of the paper flow) drives definition and management of the

process from end-to-end, i.e. customer order → warranty ⇒ measurable end-to-end process

2. BPM tools act as an integration platform riding atop functional applications ⇒ measurable end-to-end process

3. BPM tools create an audit trail exposing where the delays in a process truly reside

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BPM Value $ Proposition

Current Cost Improvement SavingsPer Process SavingsRe-engineering Cost 100,000$ 50% 50,000$ Defects (waste, cust sat.) 300,000$ 75% 225,000$ Reduced re-work 25,000$ 75% 18,750$ Cycle Time (more with same) 500,000$ 25% 125,000$

418,750$ Corporate Savings PossibleCustomer Retention Costs 100,000$ 25% 25,000$ Increasing Market Share 400,000$ 25% 100,000$ Reduced Quality Dept Costs 300,000$ 50% 150,000$

275,000$

• Reduces learning curve• Reduces implementation time• Reduces ongoing process documentation costs• Rapid deployment = earlier improvements = Profit• Reduced cost of data collection• Reduced cost of process implementation • Reduced process management from Quality team

A theoretical process with $500,000 in planned direct costs, 300,000 in defect related costs, and $25,000 in labor to perform rework

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BPM Demonstration

• 6STG has chosen HandySoft BizFlow as our BPM platform of choice– Easy to use– Browser based– Corporate commitment to Six Sigma

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www.6sigmatech.com

Thank You

Greg Sieber: [email protected]

Business Process Management Software Enabling...

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