Operational Excellence Methodology Capabilities

Transcription

1 Operational Excellence Methodology Capabilities Duvan Luong, Ph.D. Operational Excellence Networks Contents Copyright Operational Excellence Networks, 2012 Page 1

2 Table of Contents Operational Excellence Methodology Capabilities... 1 Table of Contents... 2 Table of Figures... 2 Introduction... 3 Step 3 - Mastering the Capabilities for achieving the Desired Objectives... 3 Objective Driven Capability Analysis... 5 Capability definition Capabilities Architecture Process Definition Process Mapping Process Map Relationship Map Cross-Functional or Swim-Lane Map Process Flow Map Document Map Process Description Gap Analysis Capability Planning and Deployment Management Support Establish the Oversight Team Capability Documentation Capability Training Summary Table of Figures Figure 1 Example of a Software Quality Assurance Capabilities Figure 2 Example of Configuration Management (CM) Capabilities Architecture Figure 3 Example of Software Product Generation Capabilities Architecture Figure 4 Example of a Unified Modeling Language Symbols Figure 5 Example of a SIPOC Map Figure 6 Example of a High Level SIPOC Process Map Figure 7 Example of a Low Level Process Map Figure 8 Example of a Relationship Map Figure 9 Example of a Cross Functional Process Map Figure 10 Example of a Generic Process Flow Map/Diagram Template Figure 11 Example of a High Level Process Map Figure 12 Example of a Document Map Figure 13 Example of an ETVX Process Model Contents Copyright Operational Excellence Networks, 2012 Page 2

3 Introduction In our everyday lives, we all have objectives. Usually, objectives are associated with obligations from work or from our personal side. Regardless from where the objectives come, our tendency is to fulfill them as fast, as much, and as best we can. Operational excellence is the state of achievement for the work we do to fulfill our objectives. The operational excellence framework and its associated methodology were developed to provide the implementation guidelines and practices to enable achievement of the desired objectives at work. There are 6 steps in the operational excellence methodology: Step 1 - Create a burning desire for success Step 2 - Turn desires into objectives for success Step 3 - Mastering the capabilities for achieving the desired objectives Step 4 - Achieve greatness in execution Step 5 - Ensure the Operational Transparency Step 6 - Continuous Improvement In this paper, Step 3 of the methodology is addressed in detail. Guidelines and practices described here enable achievement of the main objective of this Step - mastering the needed capabilities for achieving the desired objectives. A company will not achieve operational excellence without mastering the necessary capabilities. Step 3 - Mastering the Capabilities for achieving the Desired Objectives In general, capability is the ability to do things to get what one wants or needs. When people talk about having a capability, they usually mean they have process for accomplishing something. This is reasonable because process plays the key role in the delivery of expected results. However, to deliver the expected results, the process must be executed in the right environment with adequate setup and with appropriate support. Capabilities for achieving the desired objectives are a combination of processes, tools, materials, resources, methods, information, people, skills, experiences, etc., coordinated in fulfilling the objectives. There are three categories of capabilities: 1. Process. The core element of a capability, it represents the ability to get the work done to deliver results to the satisfaction of stakeholders. Contents copyright Operational Excellence Networks 2012 Page 3

4 Examples: a process for product development, testing, and delivery; financial planning; bookkeeping 2. Process enabling. The ability to make available and ready the support for the process to be executed properly to achieve its purposes Examples: physical facilities such as buildings, plant, equipment, other assets; information technologies such as applications, databases, networks, and related infrastructure; human resource skills, competencies, staff motivation and capacity, partners, contractors 3. Process guidance. The ability to ensure that the process can be executed correctly Examples: information for execution including lessons learned from experience, stakeholder feedback, knowledge to manage, direct, control or influence company operations' techniques for process execution; reference documentation such as training materials, business rules, best practices; formalized constraints in the form of policies, standards, guidelines, algorithms to be applied to associated events and data conditions, process workflows It is essential to complement processes with process enabling and process guidance to provide a complete capability. In addition, capabilities need to work together in concert and in alignment with business objectives and stakeholders needs in order to for a company to be successful. If you know your enemies and know yourself, you will not be imperiled in a hundred battles; if you do not know your enemies but do know yourself, you will win one and lose one; if you do not know your enemies nor yourself, you will be imperiled in every single battle. Sun Tzu The Art of War Thinking of enemies as the challenges to be addressed in meeting objectives we want to achieve, battles as the efforts to be engaged in solving the challenges, and know yourself as knowing the capabilities for the achievement of the objectives, then Sun Tzu s quote can be paraphrased as: If you know your capabilities and the objectives you want to achieve, you will likely successful in the efforts for achieving those objectives. After burning desire in company Executives is established effectively transformed into business objectives, and communicated to people in the company; the next Step in the operational excellence methodology is mastering of the necessary capabilities to achieve the objectives. Contents copyright Operational Excellence Networks 2012 Page 4

5 The basic premise underlying the operational excellence methodology is: The achievement of the desired objectives is largely determined by the capabilities used to achieve them. Because of this strong linkage, the effort to master capabilities is a key success factor for the achievement of operational excellence. Mastering the capabilities for the achievement of the desired objectives involves: 1. Defining and understanding the capabilities needed for achieving the objectives know what needs to be done 2. Identifying current capabilities know what can do now 3. Defining and understanding the company core competencies know what special abilities are that are competitive advantages 4. Identifying capability gaps know the capabilities still needed to achieve objectives 5. Planning and filling capability gaps - know that capability gaps are being eliminated 6. Documenting and training to support capabilities know the skills and abilities to do job are available Objective Driven Capability Analysis Objective driven capability analysis is a task for identifying and defining the needed capabilities; the current capabilities, and associated capability gaps. The analysis tasks are objective driven because their purposes are tied directly to the needs for the achievement of the objectives. In other words, the identification and definition for the process and its associated enabling and guidance are based upon their ability to contribute to the fulfillment of the objectives. The purpose of the capability analysis is to find answers to the following questions: What are the capabilities (processes, enabling and guidance) that will be needed for the achievement of the objectives? What are the definitions and descriptions for those needed capabilities? What are the current capabilities? Contents copyright Operational Excellence Networks 2012 Page 5

6 What are the gaps between the current and the needed capabilities? The objective driven capabilities analysis starts with a thorough understanding of the objectives. Information gathered from the analysis of the objectives will be used to drive identification and definition of the needed capabilities. The objectives should be analyzed from different operational angles to identify all the information about what the organization wants and needs to achieve. It is necessary to know the objectives backwards and forwards because without a thorough understanding of them, there is no proceeding effectively to identify and define the necessary capabilities. The understanding of all the aspects of the objectives is essential for the identification of the necessary capabilities to achieve them. It s been said that the catalysts for the necessary capabilities are contained within the objectives; we just have to find them. Ask and it will be given you; Seek, and you will find; knock and the door will be opened to you. The New Testament, Matthew, 7:7 The following questions can be used to direct and guide the analysis of objectives for the identification of needed capabilities: Highlight the key elements of the objective by asking: What are the key actions mentioned in the objective? Key results? Target dates? Achievement conditions? These are the challenges that need to be resolved to achieve the objectives. In identifying and understanding the key challenges for the objectives, it is likely that the necessary capabilities will be identified. As an understanding of the objectives develops, focus on bringing the objectives down to their simplest terms. Try to reduce the size and scope of complex objectives to make them easier to handle. A large, overwhelming objective can often be divided into smaller chunks that are easier to deal with one at a time. Accomplishing the analysis of the smaller objectives gives a boost of confidence in the ability to complete the analysis of the original complex objectives. Tackling one small objective at a time provides some experience to deal with the rest of the complex objectives after that. When encountering a difficult situation, it may be appropriate to collect more information on the subject. Knowledge is power and more knowledge will better help in resolving conflicts. Finding precedence is often helpful. Has someone else encountered a similar objective before? If so, find out how that objective was set before, how it was addressed, then see if this applies in the current case. There is no need to Contents copyright Operational Excellence Networks 2012 Page 6

7 reinvent the wheel. Learn from others whenever possible. Don t be afraid to ask for help. Figure out some possible sources and seek them out. After the questions above are answered or addressed for the desired objectives, choosing or identifying the needed and current capabilities should be a straightforward activity. The information gathered about the capabilities should make the definition tasks easier. For each of the clarified objectives, using the following list of questions will lead to identification of the capabilities involved with the objectives - the questions will suggest candidate processes, enabling and guidance that help document, organize, demonstrate, and support the capabilities. The processes will be refined later with documentation completed as described in the Process Definition section. To identify the processes in the capabilities, identify the action and who is its owner in the objective statement? Split out actions and owners if there is more than one. Each identified action is associated with one or more processes. Identify this or these as candidate processes. (Further references to the the process here will mean to the candidate process.) Questions for gathering information about the processes for the needed capabilities: Who is the requester in the process? Who is the actor in the process? What is its purpose? What should the process be doing? How is it performed? Why is it performed? How does this process relate to other existing or candidate processes? What other processes interface with this process? What do these processes need from this process, and what does this process need from the other processes? When are these processes performed? Why are these processes performed? Contents copyright Operational Excellence Networks 2012 Page 7

8 Why are these processes being performed at this time? What are the impacts if these processes are not performed? What is the frequency of these processes? What can go wrong? What can vary in this process? What is already known about this process s variability? What parameters are most sensitive to variation? What is the impact if these processes are performed incorrectly? Questions for gathering information about the user of the processes for the needed capabilities: Who are the users (for the candidate process same reference for the rest of questions on this list)? What do the users do? Whom do the users work for, and what do the users' superiors do? What is the other business process or activity that the user is supposed to perform? What are the user's problems and why are they problems? Why do the users do what they do? Whom do the users do what they do for? When do the users do what they do? Where do the users do what they do? What are the processes performed by that person or persons? Questions for gathering information about the management of processes for the needed capabilities: Are there any priorities for the candidate process (same reference for the rest of questions on this list)? Contents copyright Operational Excellence Networks 2012 Page 8

9 What criteria determine when a process is ready to start? What criteria determine when a process has completed? How does the process create value for customers? By what measure does the company judge the performance of the process? What efforts to improve this process are now under way? Is this process producing scrap or output which requires rework? Is this process in a state of statistical control? Is the process contributed to the achievement of the objectives? Is the process reliable? Is data being collected on this process? If so, what is being collected? If data is being collected, what is the purpose for the data collection, what data is being used, and what are the benefits to the company? Is any traceability being tracked? If so, what is being tracked and at what level? Is there any other data being collected now or later on this process? Are defects detected? Tracked? Analyzed? Prevented? Should all procedures for error detection and correction be clearly documented, and the actions taken as a result of error detection are included? In reviewing the information regarding this process, is there more of a detection or prevention system in place? What are the business transactions which trigger this process or activity? Questions for gathering information for the optimization of the processes for the needed capabilities: For each step or task in the candidate process, ask: Can it be eliminated? (most important) Can it be combined? Contents copyright Operational Excellence Networks 2012 Page 9

10 Can it be done in a different sequence, in a different place or by a different person? Can it be simplified? Questions for gathering information for the process enabling and guidance for the needed capabilities: What are the relevant enabling and guidance capabilities for this objective? For each identify enabling and guidance capability: o What are the description and purpose? o Who are the owner, requester and actor? o What are their roles and responsibilities? o How the capability is integrated with others capabilities to support the objective? o Are there special aspects or points to note for this capability? Can the combination and integration of these processes, enabling, and guidance deliver the fulfillment of the objective? Other generally useful guidelines for gathering information about capability identification: Use the customer's viewpoint: Capability identification and definition should be done from the customer's viewpoint for the purpose of creating value. Ignore or eliminate capabilities that do not add value for the customers. If the goal is to reduce cycle time for the customer, eliminate the non-value-add capabilities or at least remove them from the critical path in process flows. Make capability assumptions: Question why each capability is needed. Sometimes work is performed on the assumption that it's needed when it is not because "that's what has always been done" or is left over from a need that no longer exists. Eliminating capabilities that no longer provide value or combining multiple capabilities will streamline the overall needed capabilities. Focus on delays: Always target delays or waiting points in the processes (the core of the capability). If a process consistently bottlenecks at a certain point, this is a prime opportunity for improvement. Find ways to eliminate the delay by identifying the root cause. An example of such a delay might be waiting on an outside supplier or waiting for someone to perform a step. Contents copyright Operational Excellence Networks 2012 Page 10

11 Focus on inspection points and error corrections: Identify inspection points that look for errors activities to fix errors. These activities are rework, existing only to handle problems that were caused earlier in the processes. Perhaps a task upstream in the process is complex and requires better focus or attention, such as the introduction of checklists to improve accuracy. Identifying and correcting the source of the errors may allow elimination of the rework activities. Focus on decision points: Review each decision point to ensure that a decision is really needed. If the decision is always the same, this is probably bureaucracy without value. If the decision point is necessary, streamline the decision making process through the use of standardized criteria or by including fewer people in the decision. Focus on duplications: Identify process steps where duplicate work happens, which often occurs when data is entered into multiple systems or in a crossfunctional process when one team doesn't realize another team is performing the same thing function. Duplication is usually eliminated through better understanding between teams or simple automation of the data entry. With the information gathered from the appropriate questions of the above list, one can lay out the answers for the needed capabilities (process, enabling, and guidance). Provide additional notes to help figure the best course of action. Visualize each possible capability, considering all the variables involved. Use deductive reasoning by following the logical progression step by step to identify the necessary capabilities. Figure 1 Example of a Software Quality Assurance Capabilities. In some situations, it may be best to start from scratch with the identification of needed capabilities for the fulfillment of the set objectives. This will provide a fresh view of the Contents copyright Operational Excellence Networks 2012 Page 11

12 challenges that are derived from the objectives; from which new solutions using new approaches, processes, techniques, innovations, tools, etc. can be generated. However, in reality, most company objectives are not totally new and do not deviate drastically from the current company direction. In this case, it may be more effective for the identification of the needed capabilities to start with the current perspective of the business operations and activities; if this is the case, when the needed capabilities identification is done, ask qualifying questions to make sure that the solution is not limited to just what is currently being done. Creating a list of optimal capabilities for fulfillment of the company objectives is highly desirable. Typical qualifying questions are: Can the aggregated of the identified needed capabilities deliver solutions for the fulfillment of the objectives? o If yes, what is the rationale? o If no, what are the reasons? What is the missing or the additional capabilities? Why are these capabilities needed? For each identified capability, ask: o Can it be eliminated? (most important information for optimizing the capability) o Can it be combined? o Can it be done in a different sequence, in a different place or by a different person? o Can it be simplified? The answers for these questions will provide information for identifying of a set of more optimal capabilities for the fulfillment of the objectives. Capability definition After the identification of needed capabilities based on their contribution to the fulfillment of the desired objectives, next comes the definition for these capabilities. Capability definition task involves pulling together information about the needed capabilities into the appropriate representations so people can understand and use these capabilities in the fulfillment of the objectives. Typically, this consists of the capabilities architecture and the process definition. Capabilities Architecture Contents copyright Operational Excellence Networks 2012 Page 12

13 The capabilities architecture identifies the capability elements of process, process enabling, and process guidance. It defines the fundamental framework in which the capability elements are integrated; how the processes are related and interact with each other; how the enabling and guidance capabilities relate to the processes; what are the constraints on these capability elements; what the configuration for them is, what the rationale is; and how all of these capabilities elements work together as a cohesive integrated unit" to fulfill the desired business objectives. The capabilities architecture provides the overall big picture of the entire solution for the objectives; it is the primary communication mechanism for reaching the various, often disparate groups that involved in the implementation of the solutions or some piece of the solution. Foremost, the capabilities architecture must be flexible and adaptable to changes in requirements or implementation demands, for that reason, it must be a living document. Figure 2 Example of Configuration Management (CM) Capabilities Architecture. The capabilities architecture provides the answers to the following questions: What are the key decision points that provide the flexibility and make it possible for the solution to meet the business objectives? What are the key decisions that make it possible to overcome the current constraints imposed on the solution? How does the solution take into account the known or planned future objectives? Contents copyright Operational Excellence Networks 2012 Page 13

14 How does the solution take into account the unknown future objectives? What are the constraints imposed by the solution on business? Figure 3 Example of Software Product Generation Capabilities Architecture There are many ways to describe the capabilities architecture in a visual representation. A graphical drawing tool can be of much help here. Automated graphic support can also be of great benefit. To ensure the understanding of the capability structure, make sure the capabilities architecture representation and definition includes: The process, enabling, and guidance The interfaces, interactions, relationship The operational constraints The setup and support dependencies The capabilities architecture can be used: As a training and learning tool for the solution and the relevant capabilities As a reference navigation tool during the implementation Foundation for automation Contents copyright Operational Excellence Networks 2012 Page 14

15 Foundation for simplification, cost reduction, process improvement, etc. Process Definition Once the documentation for the capabilities architecture is done, the task is to define the processes in the capability. As the core element of the capability, processes deserve more attention with details than the other two capability categories of enabling and guidance. Definition for the process capability should include the following information: What are the processes? How are they related to each other? How are they interacting to each other? For each process: o Process purposes o Tasks and task descriptions o Verification requirements o Inputs o Outputs o Start/stop, entry/exit criteria o Involved Stakeholders o Internal/External retained Data/database o Limitations/constraints, etc The process description consists of process map(s) and process description(s) to provide the necessary information coverage for the answers to the above questions. They can be provided in either or both visual and text forms, but, typically with the process map(s) provided in the visual form for the high level process relationship and the flow information and the process description provided in the text form for the detailed low level information. Process Mapping Process mapping is the activity of describing (through the creation of some form of visual presentations maps, diagrams and flowcharts) the step-by-step actions taken by the people who carry out the process to produce a defined set of outputs from a set Contents copyright Operational Excellence Networks 2012 Page 15

16 of specific inputs they received. The resulting process maps depict the inputs, the sequence of actions of the performers, and the outputs in a visual format, usually combining both words and simple graphics. The maps may also include the information about the elapsed time required to perform each step, the feedback the performers receive, conditions of work, consequences, and other related information. The main purpose for the use of a process is to produce the expected results with products, services, some artifacts, or a mix of these. Once the results are identified, the question is: "What is being done to produce or create the results?" Identifying and describing the key process objectives and main activity steps. While collecting and analyzing information about the process, consider such factors as process complexity, the number of organization and individual teams involved, the time and cost issues. The process map should highlight bottlenecks and delays, rework, unnecessary steps and the authority ambiguity of the process. The process map should emphasize and represent the process flow from the customer s point of view, showing whether each step of the process helps create a clear value for the customer. Most importantly, process mapping is about communicating the process to others, so it can effectively be implemented in order to achieve the objectives. Process mapping is a valuable business management tool. It is one of the oldest business techniques for streamlining company work. It is also simple and easy task to do. The following tips facilitate the generation of effective process maps: Follow one product - Process maps are a streamlined version of a business model, so they function best when dealing with only one product or goal. Focus on a small collection of goals, but this will possibly make the process map convoluted and make it potentially difficult for untrained individuals to understand. Pick a main target goal and keep it limited to that. Symbol key - The process map should use a key of symbols that will give the ability to focus in on specific components without having to go through the entire map. Divide the ultimate goal into its various aspects. For instance, it might be appropriate to include operational aspects, transportation aspects, storage aspects and other things along these lines. A good process map will be easy to break down visually. Components - Process maps are essentially a long chain of events, put down on paper in an easy-to-understand form. When the goal is broken down to its base components, be sure to put these all down into the map. Put events chronologically and not categorically. Don't lump all the operational aspects together if they don't happen one after the other. The process map is meant to be an illustration of what is to get done, in the order it needs to get done. Concise description - Visual cues are not enough. Also provide a brief description, so that when the reader makes the visual jump, it is clear what is being looked at. If the first task is operational, put down the operation symbol, Contents copyright Operational Excellence Networks 2012 Page 16

17 and then a brief description of that specific operational task. Only use the smallest number words it takes to understand what is being said. Do not write large paragraphs about each step. Keep it brief, but keep it informative. Try to boil each step down into a maximum of one sentence. Optional information - In addition to the standard information that must be present, there are a few bits of optional information that can be added to enhance the map. Adding rough estimations of how long a particular task might take will give a good estimate of what needs to be planned for. It will also give an estimate of how long the entire goal will take to complete. When finishing a task, go back and write how long it actually took to give a visual sense of the efficiency and for future reference should similar tasks arise. Also, add how many people will be needed for a task, what machinery is needed, and where the task will be accomplished. Make connections - The key to a good process map is efficiency. Once all the tasks are laid out on paper, look for connections that can be made. Find similar tasks or tasks that are done in the same location. Find tasks that can be done at any time and tasks that must be done in a specific order. Restructure the connections to reflect these observations. The map should get to a point where each path leads to the most efficient next step. This will be the guide the user will ultimately use to get the goals accomplished as quickly and as efficiently as possible. Process Map The process map is a graphical representation of the processes that shows in a flow style, all actions, decision points, alternative branches and paths, beginning and ending states, the relevant constraints and conditions, volumes of input and output, approvals, exceptions, and cross-functional hand-offs. A process map visually describes the processes involved, how they are related, how they are interact, and the flow of data across processes and the activities of a process. A process flow can be defined as the sequence and interactions of related process steps, activities or tasks (with associated notes and information related to the process step) that make up an individual process, from beginning to end. The basic goal of the process map is to provide a unifying vision of company processes, so that participating organizations and individuals can have an understanding of their specific role in the overall system. A good process map always effectively represents the "flow" or transition of an item or transaction from the designated start step(s) to the designated end step(s), the sequence and the temporal relationship of events that related and contributed to the delivery of the expected results the products or services. Contents copyright Operational Excellence Networks 2012 Page 17

18 The process map is useful at both of the micro (low) or macro (high) level to emphasize amounts of detail. They can depict many levels of details. Each event can expand to reveal more and more details. Macro-level process maps show the process on a larger scale, higher level of information contents, at the team or at the organization function level (e.g. product generation process map for the company). Micro level process map shows small steps at individual or task level (e.g. software program testing process map for the test department). Macro-level maps consolidate small process events (each of which can be expanded into a micro level process map) into a single larger event. Depending on the process, a process map may focus on an entire organization, a business unit, a division, a function, a work group, or even an individual implementer. If the process involves a complex entity such as a business unit, a series of maps may be produced; start at the highest level, for example, the business unit, and then proceeding to lower levels such as division and work group and eventually down to the department or function team level. Determining an appropriate level for the map is vital. With too much details, the map becomes too large to see, too complex to comprehend or to print; too little and important elements are lost. The level of a process map depends on its purpose; it is very easy to create a process map with too little detail and to overlook non-value added events. To facilitate the creation of process map with the right level of details, the following guidelines can be used to determine the level of details for a process map: Process and work flows at group or company function level - The objective here is to simplify interactions and movements between groups or company functions. In general, company operations normally correspond to the functions of the responsible groups, each operation is associated with a separate group (e.g. Marketing group is responsible for the gathering of the market and customer requirements, Engineering group is responsible for the processes that related to the development and testing of the product, etc.). When generating a process map at this level, be sure to include all operations, transitions, the items or artifacts that exchanged between groups, the conditions and criteria for the exchange, and delays between groups. Process and work flows at a team level - This level of process map involves a finer breakdown of the operations. Once the operations and their associate teams are selected (e.g. the test team for the function of product integration and test).details for the operations of the team will need to be captured in the process map operation steps, decision points, inputs outputs, constraints, etc. Process and workflows at an individual or a task level - At these level, operations are quite detailed. In most situations, a process map is not the best way to describe the process information. A process definition document might be more appropriate. There will be more details on process definition later. Contents copyright Operational Excellence Networks 2012 Page 18

19 An effective process map is a very powerful tool to analyze process work flow and information and data flow. It is also useful in the detection of imperfections in a process for potential improvement. A process map highlights actual and potential problems bottlenecks, backflows, delays, waste, and process gaps. Process maps clarify process boundaries, ownership, responsibilities, and effectiveness measures (metrics). They provide a common understanding of the entire process and specific roles and contributions of process participants. A unifying view of the entire business system provides a framework for multiple management approaches and allows process reengineering on clear, comprehensible customer-oriented basis. Process maps can also be used in mergers and acquisitions (M&A), process improvement, and systems design. Creating a process map on a computer is common and many software programs exist that have symbols created. However, the process map can be are very complex and may need to be revised frequently. Create the process flow on paper and post it publicly for others to offer inputs and critiques before finalizing it for publication. It is very important to catch the rework loops, stops, starts, pick-ups, drop-offs, and other waste so the team fully understands the opportunities. Standard symbols are used within a process map to describe key process elements. These following symbols come from the Unified Modeling Language or UML, which is an international standard for drawing process maps. There are many symbols that can be used. Figure 4 Example of a Unified Modeling Language Symbols. There is a popular, basic model process map called SIPOC (Supplier, Input, Process, Output, and Customer) map. There are many variations of this SIPOC map but it does provide a useful framework for understanding the critical elements, sources, and outputs of a process. It is important to identify the Supplier providing Inputs to a Process, which produces Outputs for a Customer; these are the essential information for the understanding of the process and greatly enhanced its implementation and usage. Contents copyright Operational Excellence Networks 2012 Page 19

20 Figure 5 Example of a SIPOC Map. The SIPOC map is also known as High/Low-level process map which covers both of the high-level and low-level mappings of the process with its basic steps. The suppliers (S) provide input (I) to the process. The process (P) where the activities occur and tasks are executed, resulting in output (O) to meet or exceed the customer (C) expectations. Further definitions for SIPOC are as followed: Suppliers: The internal and external suppliers to the process. Inputs: The inputs to the process. This would include things such as materials, forms, information, staff, etc. Process: The necessary processes to product the expected results. Outputs: The outputs to internal and external customers. This would be anything the business unit produced. Examples of outputs would be reports, ratings, products, documents, etc. Customers: The internal and external customers to the process. This would include anyone who receives outputs. The customer must get the output directly from the business unit and does not necessarily have to be a user of the output. If the output is received from a third party, they are not customers. When creating a SIPOC process map, there is no need to start at the beginning. In fact, it should be more effective to start in the process (P) phase and ask questions about the process itself. The process description should start with the summaries of the most critical three to six process steps. The outputs ( O ) should be document for what delivered to whom (Customers - C). It is necessary to brainstorm and prioritize the most critical few customers; those outputs that are most significant to those customers should ---- Contents copyright Operational Excellence Networks 2012 Page 20

21 be identified, prioritized and grouped together. The identified initial output assumptions should be verified with customer inputs. The last step in the process description is the identification of the inputs (I) that are needed for the process to perform and who are the parties, /suppliers (S), that provide the inputs. Brainstorm and prioritize the identified significant inputs to complete the description for the process using the SIPOC map. Good practices for the creation of a SIPOC map are as follow: Create an area that will allow the team to post additions to the SIPOC diagram. This could be a transparency (to be projected by an overhead) made of the provided template, flip charts with headings (S-I-P-O-C) written on each, or headings written on post-it notes posted to a wall. Begin with the process. Map it in four to five high level steps. Identify the Outputs of this process. Identify the Customers who will receive the Outputs of this Process. Identify the Inputs required for the Process to function properly. Identify the Suppliers of the Inputs that are required by the Process. Verify the accuracy, correctness and completeness of the defined process description the SIPOC map with Project Sponsor, Champion, and other involved stakeholders. Figure 6 Example of a High Level SIPOC Process Map. Contents copyright Operational Excellence Networks 2012 Page 21

22 The SIPOC map is very useful when it is not yet clear: Who supplies Inputs to the process? What specifications are placed on the Inputs? Who are the true Customers of the process? What are the Requirements of the customers? High-Level/Low-Level Process Map (SIPOC map) describes all of the core processes within an organization. The main difference between a high-level and low-level process map is one of scope. The process flow has not changed, just the scope of what is being considered. The processes identified in the High-Level map can each be further subdivided into sub-processes. Each sub-process makes up a low-level process map or process flow chart. A low-level process map is a focused area of a high-level process map resulting from zooming in for more details. The term process map does not refer to the scope of a process being high-level, low-level, or very detailed. A process map is focused on the activity flow, order, or sequence and interaction. The main difference between a high-level and low-level process map is one of scope. The process flow has not changed, just the scope. Low-level process maps can provide a lot of detail for analysis and can be used in place of textual procedures for simple processes. To lean out or reduce the amount of documentation for the processes, the process maps can simplify the procedures and reduce unnecessary paperwork. Organizations with highly trained employees can benefit by using simple process maps. Figure 7 Example of a Low Level Process Map. Contents copyright Operational Excellence Networks 2012 Page 22

23 One problem with low-level process maps is that sometimes it is hard to determine who is responsible for which activity. Another is that they may not conform very well to the preferred SIPOC format. In this case a Cross Functional or Swim Lanes Map can be used to convey individual responsibilities or departmental roles within an organization. A process map helps to establish a shared understanding of what a process is and how it cuts across links business functions. Process maps can also be used for designing processes, writing procedures, defining and achieving objectives, complying with quality standards such as SEI CMM and CMMI and ISO 9000, and building internal control. Analyzing a process map may help reduce cycle time, reduce costs, and increase productivity Depending on the purpose and the scope of the target process map, there are several popular types of process map that can be used to describe the processes, the other popular process map types are: Relationship Map is an expanded SIPOC format, it shows the overall view. They show the departments of an organization and how they interact with suppliers and customers. Cross-functional or Swim Lane Map shows which department performs each step and the inputs and outputs of each step. These maps have more detail than a relationship map but less than a process flow map. Process Flow Map takes a single step from a cross-functional map and expands it to show more details. Document Map shows the relevant documentation, their flows and relationships during the implementation of the process. The documentation flows can be arranged in the swim-lane style each flow or lane consists of the documentation that related to a particular team or function that is involved in the process. Relationship Map Relationship map is the high level map diagram that shows the relationship between the parts or groups of an organization and how these entities involved with suppliers and customers. A relationship map is made up of three main entities: suppliers, the organization and customers. The Organization. The organization is represented by a rectangle in the middle of the chart. It can be a company, division, section, and department. If the organization is large, it may have several sub-organizations or groups which may have inputs and outputs between the other sub-groups. This is all shown within the organization rectangle. The inputs and outputs may be physical items or Contents copyright Operational Excellence Networks 2012 Page 23

24 documents. If there are a lot of sub-groups, the map will get messy try drawing a relationship map for each subgroup, making it the central group. Suppliers. On the left, draw a rectangle representing suppliers. Each supplier has a box. Since this is a template, the boxes have the word "supplier," but fill in the names of the suppliers. The lines coming from the suppliers show what they supply. The lines in the template show the word "input" -- replace that word with the actual commodity. If the supplier supplies pencils, then replace input with pencils. Customers. On the right is a box that shows customers. Fill each box with the actual name of a customer. The lines from the group box to the customers show what is supplied to them. So, replace the word "output" with the actual output. If the group is internal to a corporation, customers may be other departments in the corporation. Don't confuse the corporate customers with external or real customers. Figure 8 Example of a Relationship Map To draw a relationship map, suppliers and what they supply must be known. Similarly, customers must be known as well as what is provided to them. A relationship map of a company may be helpful to a new employee to show them what it is the company produces and what are the raw inputs to the company. When create a relationship map, be sure to ask and get answers for the following questions: Are all inputs and outputs between groups shown? What is required for each input or output? Is it a paper document, , or physical item? Contents copyright Operational Excellence Networks 2012 Page 24

25 What are the external interfaces? These are the most important to the company. Cross-Functional or Swim-Lane Map Cross-functional or swim-lane map shows the high-level processes by each department or function in an organization or project. The map or chart also shows the interactions between processes. In this map type, the customer, departments and external companies are listed on the left. They are separated by dotted lines so it is easy to see which department does which step. Each department has its own "swimming lane." The steps are connected by arrows to show the order the steps are performed. The flow is generally from left to right. The lines are labeled with the input or output of each step. Figure 9 Example of a Cross Functional Process Map. Swim-lane layout arranges the process flow in a way that allows a focus on how roles, resources, organization units, locations, and classifier values are used by activities within the flow. The swim-lane visualization makes unnecessary exchanges between elements in different rows easy to identify, and aids in resolving bottlenecks and redundancies. The swim-lane layout rearranges the elements in a process diagram into a set of rows called swim-lanes. The type of swim-lane layout determines in which row the various elements in the process are placed. The purpose of arranging the elements is to make an unnecessary hand-off between elements in different rows easy to identify, and to aid in resolving bottlenecks and redundancies in the use of, for example, a resource or organization. Contents copyright Operational Excellence Networks 2012 Page 25

26 Cross-functional or swim-lane map is good at depicting responsibilities and with no loss in the low-level process flowchart information. Suppliers and customers are obvious and it does conform to the SIPOC format. Process Flow Map Process flow map takes a single process step from a cross-functional map and expands it to show more details. A process flow map is a visual description of the separate steps of a process in sequential order. A process flow map may include the following elements: Decisions - A decision routes inputs to one of several alternative outgoing paths. Think of a decision as a question that determines the exact set of activities to perform during the execution of a process. Questions might include: "What type of order?", "How will the order be shipped?", and "How will the customer pay?" Forks - A fork splits the process flow into two or more concurrent paths, enabling two or more tasks to be performed in parallel. A fork makes copies of its inputs and forwards them along each of the paths. Forks, like merges and joins, are special elements designed to visually show the control of the flow. Inputs and input criteria - An input is an entry point through which an element (such as a process or task) is notified that it can start, typically because an upstream element, on which it depends, has finished running. An element starts once it has all of its required inputs. The inputs also define the data that the element needs before it can run. Loops - A loop is a repeating sequence of activities contained within a process. Transformations - A transformation is a specialized task that transforms data from one structure to another. Merges and joins - Merges and joins combine multiple processing paths, recombining alternative flows back into a single flow. Joins also synchronize the flows, by combining two or more parallel paths that must all complete before they continue along a single path. Merges and joins are elements that are specially designed to visually show the control of the flow. Annotations - An annotation is an explanatory note added to a process diagram or a structure diagram. Notifications - Notifications are occurrences within a process that can trigger actions. A process can use a notification to send information to one of its alreadyexecuting sub-processes, or a sub-process can use a notification to send information to its parent process. Contents copyright Operational Excellence Networks 2012 Page 26

27 Notification broadcasters and receivers - Notification broadcasters and notification receivers are specialized tasks that enable communication while a process is running. A notification broadcaster publishes notifications, and a notification receiver listens for notifications and produces output. Observers - An observer is a specialized task that watches a process and its associated repositories, and initiates a flow when a certain condition becomes true. For example, an observer can start a flow when a repository exceeds a threshold value. Outputs and output criteria - An output is an exit point through which an element can inform downstream elements that they can now start. The outputs from a process, task, or other element also define the data that the element will produce after it has run. Repositories - Repositories are storage areas for the information that is created in a business process. Every repository has a name and an associated type. Usually the name of a repository is the same as the name of the business items it contains. For example, a repository for invoices is called Invoices. Services - Services are external processes outside the organization that can be used within the organization's processes. Services either provide input to the organization or receive output from the organization. Services have well-defined inputs and outputs, but their internal processes are unknown to the organization and cannot be changed. Start, stop, and end nodes - A start node identifies the beginning of a process flow, and a stop node marks the end. Every process, sub-process, and loop must have at least one stop node. End nodes, by contrast, are simply visual markers within a process that identify the end of a particular flow. An end node stops the path that it terminates, whereas a stop node stops the entire process. Tasks - Tasks are the basic building blocks representing activities in a process model. Each task performs some function. Visually, a task represents the lowest level of work shown in the process. Timers - A timer is a specialized task that initiates a flow at a specified point in time. The default type of process flow map is the free-form layout. All processes have a freeform layout, which places no restrictions on where elements can be in the map. Typical uses for process maps are as follow: Developing the understanding of how a process is done. The map shows complexity, relationships, temporal sequencing, problem areas, redundancy, loops, etc. and where simplification and standardization may be possible. Contents copyright Operational Excellence Networks 2012 Page 27

28 Compare and identify the gaps of the actual versus the ideal flow of a process to identify improvement opportunities. Documenting a process. Facilitate team agreement on the steps of the process and to examine which activities may impact the process performance. Pin point locations and areas where additional data can be collected and investigated. Studying of a process for improvement. Communicating about how a process is done. Planning a project. Provide a framework for training about the processes. To develop a process flow map, the following steps can be used Define the process to be mapped. Write its title at the top of the work surface. Determine the boundaries of the process: Discuss and decide on the boundaries of the process o Define the process starting points (entries) and ending points (exits). o Agree on the level of details for the map to clearly describe the process and to identify problem areas. The process flow map can be a simple high level map showing only information to understand the general process flow, or it might be detailed to show every finite actions and decision points. The map generation can start with a high level map and then add in details later or only where it is needed, or further expansion into the lower level detailed maps. Identify the steps in the process by brainstorming for a list of all major activities and tasks, inputs, outputs, and decisions from the beginning of the process to the end. Write each on a card or sticky note. Sequence is not important at this point, although thinking in sequence may help people remember all the steps. Identify the sequence the steps. Arrange the activities in proper sequence; in the order they are carried out. Draw the process flow map using the appropriate symbols Contents copyright Operational Excellence Networks 2012 Page 28

29 o Pay attention to the detail level for the map: High level map shows key action steps but not decision boxes. Intermediate-level map shows actions and decision points. Low level map show detailed actions and decision points. o Name each process step using simple and meaningful words that are easy to understand. o When all activities are included and everyone agrees that the sequence is correct, indicate the direction of the flow of steps in the process. Draw arrows to show the flow of the process. Test the process map for completeness and accuracy o Are the symbols used correctly? o Are the process steps (inputs, outputs, actions, decision, waits, and delays) identified? o Are the feedback loops closed? o Ensure that every continuation point has a corresponding point elsewhere in the map or on another map. Validate/Review the process flow map with people who are involved in the implementation of the process (workers, supervisors, and suppliers, customers) to see if they agree that the process is drawn accurately and its contents are completed and accurate. Finalize the process flow map o Is this process flow map makes sense? o Are the process flow map contents being used, being followed? o Can the process flow map contents be simplified? Are there obvious complexities or redundancies that can be reduced or eliminated? How different is the current process from an ideal one? When doing the process flow mapping, considering the followings: Don t worry too much about drawing the map the right way. The right way is the way that helps those involved to understand the process. Identify and involve in the flow mapping process all key people involved with the process. This includes those who do the work in the process: suppliers, customers and supervisors. Involve them in the actual flowcharting sessions by interviewing them before the sessions and/or by showing them the developing flowchart between work sessions and obtaining their feedback. Contents copyright Operational Excellence Networks 2012 Page 29

30 Do not assign a technical expert to draw the map. People who actually perform the process should do it. Computer software is available for drawing maps. Software is useful for drawing a neat final map, but the method given here works better for the messy initial stages of creating the flowchart Figure 10 Example of a Generic Process Flow Map/Diagram Template. The above process flow maps uses the basic flowchart symbols. There are other symbols that can also be used for special situations: Transportation or Movement shows that the items (goods/data/work) are being moved between locations, such as from one factory to another. Delay shows where items are waiting in the factory or placed in temporary storage. Storage shows a longer delay or a delay that requires authorization to retrieve the items. Inspection is a circle that shows where in a process the items will be inspected. Contents copyright Operational Excellence Networks 2012 Page 30

31 Figure 11 Example of a High Level Process Map Document Map A document map is a visual description for the documents that related to the implementation of the processes. The relevant documents can be a source of inputs or outputs of the processes. The document map can be generated using the expanded SIPOC format. In this expanded format, each row represents the flow of documents for that particular SIPOC element of Supplier, Input, Process, Output, and Customer. Effectiveness criteria and performance objectives are listed at the bottom. The effectiveness criteria represent the key performance Indicators (KPI), metrics, or measures for the process. Document maps provide a lot of data detail but can be short on activity details. Text based procedures are much better at depicting individual tasks and methods. The table below shows the focus of each process map type, as well as its strengths and weaknesses: Contents copyright Operational Excellence Networks 2012 Page 31

32 Figure 12 Example of a Document Map Table 1 - Process Map Summary Process Map Type Main Focus Strengths Weaknesses Relationship Map High-Level Process Map Low-Level Process Map Cross Functional or Swim Lanes Process Map Document Process Map Relationship, perspective, bigpicture, systems Perspective, bigpicture, systems Low level processes, small-scope Responsibilities Data management Organizational relationship Management, Quality Manual, good for adding metrics Understanding flow, procedures, details HR, job descriptions, job training, procedures Document and record control not focused on process not enough details unclear responsibilities, not SIPOC, alternative flow alternative flow not enough activity detail Contents copyright Operational Excellence Networks 2012 Page 32

33 Process Description Once the generation for the capabilities architecture and the process map(s) is completed, there should be the availability of related information and the good understanding of the needed capabilities: what are the needed capabilities, how are they related and interact with others; and the associate processes: what are the involved processes, what is the detailed information about the flows, the suppliers, inputs, outputs and customers, what are the sequences and other details of how the defined processes work together. This availability of information and the understanding of the needed capabilities will enable the pin-point identification of the key processes that are crucial for the achievement of the objectives. In order to achieve the execution excellent for these key processes, there is a need to describe them clearly, completely, accurately and correctly so all of the involved parties can use them effectively. Figure 13 Example of an ETVX Process Model During the 1980's, IBM introduced the ETVX model as an effective way to document processes. ETVX stands for Entry criteria, Tasks, Validation, and Exit criteria. ETVX model is primarily used for the description of activities in the lower level process, which are a set of tasks to be performed. This is not a method to depict the higher level or organizational level processes. As indicates in its name, there are four key elements in the ETVX model: Contents copyright Operational Excellence Networks 2012 Page 33