BPMS 06 Gap Analysis

GapAnalysisBusinessProcessManagementServiceQualityCostDeliveryDistributorInternalOEMUserCustomerExpectationsWhatarethemajorcustomerexpectations?CriticalIssuesSpanUnits&ScaleProcessOutputMeasureCTCIssuesWhataretheOperationalDefinitionsofCTCIssues?CustomerSpanWhatdoCustomersSee?ScorecardstoManageResultsIndicatorsofProcessPerformanceCoreandEnablingProcessesCritical-to-CustomerOutputsCustomerFocusedObjectivesCSIPOCrossFunctionalMappingWhatisProcessthatproducesCTCOutputs?ScorecardsWhatwillbemeasured?GapClusterClusterProjectProjectProjectProjectSixSigmaProjectsWhatprojectsareneededtoclosethegaps?Whatarethekeymeasuresofprocessperformance?WhatarethegapsbetweenprocessperformanceandCTCobjectives?2Whatdoyoumeasure?Y=f(x1,x2,…,xn)WhataretheY’s-measuresoftheoutputsofyourbusinessprocess?Y’sareimportanttoyourcustomerortheyaredirectlyrelatedtowhat’simportanttoyourcustomerWhataretheX’s-measureswithinyourbusinessprocessthatcorrelatetotheoutputmeasures(Y)InternalanduncontrollableInternalandcontrollable3WeareSeekingtheDriversofProcessImprovementY=(x1,x2,x3,x4,…xn)ProcessProcessEffectiveness(Outside-In)ProcessEfficiency(Inside-Out)and4MetricCategoriesProcessEffectivenessProvidesRequiredFeaturesFreedomfromDeficienciesDefectrateAccuracyActual/PlanDeliveryOn-TomeTimelinessResponseTimeProcessEfficiencyEffectiveatLeastCostCompetitiveAdaptabilityEffective&EfficientIntheFaceofChangeCostPerTransactionTimePerActivity(CycleTime)ProcessYieldOutputPerUnit(Space,FTE,Time)TotalCycleTimeSetUpTimeForNewCustomerNeedsCycleTimeforSpecialCustomerRequestsPercentageofSpecialRequestsNotMet5Measuresprovideabasisfor:SpecificallycommunicatingperformanceexpectationstoteammembersQuantifyingwhatisreallyhappeningintheorganizationIdentifyingperformancegapswhichshouldbeanalyzedandeliminatedEffectivelymakingandsupportingdecisionsregardingresourceallocationandactionplanning6HierarchyofProcessMeasuresLevel1:ExternalCustomerMeasuresLevel2:InternalEndofProcessIndicatorsLevel3:MetricsatKeyJuncturesorMilestonesofProcessLevel4:SteporActivityMeasures7HierarchyofProcessMeasuresCUSTOMERFUNCTIONAFUNCTIONBFUNCTIONCM3M2M2M3M1-internalM1-externalM1-ExternalCustomerRequirementsMeasuresrelatedirectlytocustomerrequirementsM1-InternalEndofProcessMeasuresreflectcustomerrequirementsaswellasbusinessrequirements–theseareend-of-processmeasuresM2Sub-ProcessMeasuresoutputofsub-processesand/orfunctionsM3KeyProcessStepMeasuresoutputofspecificprocesssteps8HowtoDevelopProcessMeasuresOUTPUTCRITICALDIMENSIONMEASUREGOALTRACKINGDEVICE12345IdentifysignificantoutputsIdentifycriticaldimensionsDevelopmeasuresforDevelopgoalsforeachDefinethetrackingdevice(endofprocess,sub-process,foreachsignificantoutputeachcriticaldimensionmeasure.ThegoalshouldanddatasourceforeachJob)represent“entitled”performancemeasureEXAMPLEContractpreparedAccuracyTImelinessNumberoferrorsrequiringreworkTimefromagreementmadetocontractprepared03workingdaysContractreworknumbersContractprint-outdatesBooksshippedQuantityTimelinessAccuracyShipmentvolumeperdayNumberofon-timeshipmentsNumberofshippingerrors15,000perday95%ontimeDailyshippingreportBillingerrorreportBillingerrorreport09ProcessMeasurementChartM1-ExternalTrainingmaterialCRITICALDIMENSIONINPUTMEASUREGOAL*Accuracy*TimelinessM1-InternalOUTPUTCRITICALDIMENSIONMEASUREGOALTrainingMaterial*TimelinessM2sSUB-PROCESSOUTPUTCRITICALDIMENSIONMEASUREGOAL*Timeliness*Timeliness*TimelinessM3sPROCESSSTEPOUTPUTCRITICALDIMENSIONMEASUREGOAL*Timeliness*Timeliness10ReviewyourcoreprocessmapEstablishmeasurementsofprocesseffectivenessthatlinktoCustomerCTQEstablishgoalsforprocesseffectivenessQuantifythegapsbetweendesiredandcurrentperformanceStep1:GapAnalysisforCustomerExpectations–ProcessEffectivenessUseGapAnalysisTable11ClosingBooksProcess(Monthly)SalesResourcemgtPurchasingMfgR&DHRAccountingStaffFinanceTIMES/OProductionPlanCriticalY:FastdeliveryofmanagementinformationCustomer:ManagementRequirement:4days(As-Is8day±2days)MRP(Estimatematerialconsumption)P/OMaterialSourcingProduction→ITCProductShippingProduct/MaterialinventoriesCalculatematerialcostClosingprocessinputandoutputDDCalculatelaborcostCalculateexpenseCalculateoverheadcost①②Closingbankaccount③D+3daysDdayX1X2SamsungExample12ClosingBooksProcessSalesResourcemanagementPurchasingMfgR&DHRAccountingStaffFinanceTotalCalc.Productcost②①ClosingsalesEstimatesalesprofitCalc.OtherexpensesEstimatefinancingcostEstimatepre-taxprofitB/L,P/LverificationEND③D+6daysD+7daysD+8daysProfitinwonFinancialreportD+5daysX3X4X5SamsungExample-continued13ProcessOutputInternalProcessMetrics(CycleTime)Baseline(X)GoalGapYQuickmanagementinformation(FinancialReport)x1:ClosingsalesX:D+6R:±2X:D+3R:±12hr3days36hrx2:ClosingprocessinputsandoutputsX:D+3R:±1X:D+1R:±12hr2days12hrx3:EstimatemanufacturingcostX:D+4R:±1X:D+2R:±12hr2days12hrx4:EstimatefinancingcostX:D+5R:±2X:D+3R:±24hr2days24hrx5:B/S,P/LverificationX:D+8R:±1X:D+4R:±12hr4days12hrCustomerRequirement:D+4days(R:±12hr)SamsungExample–GapAnalysisTable14Step2:GapAnalysisforCompanyExpectations–ProcessEfficiencyReviewyourcoreprocessmapIdentifyareaswhereprocessefficiencycanbeimproved.EstablishmeasurementsofprocessefficiencyEstablishgoalsforprocessefficiencyQuantifythegapsbetweendesiredandcurrentperformanceUseGapAnalysisTable15GapAnalysisSummary&NextStepsAnalyzePerformanceofProcessVs.CustomerExpectations&CompanyGoalsGAPCURRENTGOALMEASUREIncludeSub-ProcessesDefineCriticalOutputslinkedtoCustomerCTQCoreProcessIdentifyGapsandUseforProjectIDGapClusterClusterClusterProjectProjectProjectProjectProject16ProcessDashboards17TranslatingCTCRequirementsintoProcessDashboardsCriticaltoQualityCTCsTheseRequirementsarethenquantifiedintoCTQs.ProcessMeasuresPerformanceDashboardsCustomer(s)RequirementsTheCTQsaremonitoredandcontrolledtoensureconsistentperformance.OverallperformanceisaggregatedintoDashboardsthatcanbesummedintoacompany-leveldashboard.KeyIssuesMustBeTranslatedIntoCustomerRequirementsBasicConceptofProcessDashboardsProcessProcessMeasuresCorporateDashboardsStep1Step3Step2DonebytheAssociateSpeedAccuracyCostProductivityVolumeService19DashboardExamples–LogisticsCompanyPartsOrderInputFreightVerificationCarrierOnTimePerformanceOnTimePerformanceCubeUtilization#ofErrors#ofUnitErrorsBenchmark%OnTime%OnTime99.899.720AccuratePartsOrderInputDevelopsupplier’soperationsmanualAnalyzesuppliernonconformanceOrientsupplierstoJITprocessMonitorsupplierperformanceImprovementTeamReducedplantinventoryby$95MMFrom6daysto<24hoursAnnualsavingsof$6.5MMConvertedinventorystoragespacetoproductioncapacityImprovedprocessto4.8SigmaResultsPartsOrderInput#ofErrors21AccurateFreightVerificationCompleteredesignoffreightverificationprocessVerifyatsupplierpickupvs.plantreceivingInstitutecontroldocumentationCompletemanageranddrivertrainingInstallvehiclecommunicationsandintegratewithpartsorderingsystemEliminatereceivingdockworkforce-20people$1.6MMannualsavingsImprovedprocessto5.4SigmaResultsImprovementTeamActionsFreightVerification#ofUnitErrors22MaximizeTrailerCubeUtilizationDevelopshipmentdataforeachpart(weight,dimensions,packaging)UtilizedproprietaryCompanysystemstoimproveperformanceRDS-RouteDevelopmentSystemTransLoad-LoadModelingDEPOT-LocationOptimizationReducedplanttransportationcostsby24%Annualsavings-$4MMsavingsResultsImprovementTeamActionsCubeUtilization%UtilizedBenchmark23MeasuresofInputs,Process&OutputsUnitBeingProcessedProcessIndicatorMeasurementDisplayIPOCreditDecisionCredit-decisionCycleTimeCredit-decisionCycleTimeRunChartFrequencyofCredit-decisionCycleTimesHistogramContractAmortizationErrorsNumberofErrorsRunChartFrequencyofErrorstoDeriveSigmaHistogramTelephoneCallIncomingVolumeNumberofTelephoneCallsReceivedRunChartAnswerRateNumberofTelephoneCallsAnsweredPerHourRunChartAnswerRateNumberofCustomerComplaintsRunChartCreditApplicationCompletenessNumberofOmittedEntriesRunChartCredit-ApplicationTotalCycleTimeCredit-applicationTotalCycleTimeRunChartFrequencyofCredit-applicationCycleTimesHistogramInitial-DecisionCycleTimeTimeFromInputtoInitialDecisionRunChartInputDelayTimeFromReceipttoInputRunChart24DataCollectionPlanWorksheetClarifyDataCollectionGoalsDevelopOperationalDefinitionsandProceduresMeasureTypeMeasureTypeDataOperationalDefinitionSamplingCollecting/RecordingOtherConditionstoRecordWhatHowWhatWhereWhenHowMany(AttachDataForm)MethodofValidatingMeasurementSystemSketchOutthePreliminaryDataDisplay25BalancedScorecards26BalancedScorecardDefinitionManagementtoolprovidingcomprehensivemeasureofhowtheorganizationisprogressingtowarditsstrategicgoals.Shouldcontainjustenoughdata,butnomore(similartothefrontpageofanewspaper).27ScorecardBalance…Balancesfinancialandnon-financialmeasures.Balancesshort-andlong-termmeasures.Balancesperformancedrivers(leadindicators)andoutcomemeasures(lagindicators).FinancialCustomerProcessLearningandGrowth28BalancedScorecardDesignMonitorProgressinAchievingGoalsFinancialPerspectiveCustomerPerspectivePerceptionsof:price,servicequalityInternalPerspectiveCycletime,productivity,processesLearning&GrowthPerspectiveKnowledge/productdevelopmentOutcomesActivitiesMeasuresshouldbedesignedtoworkaswarninglightssignalingwhethertheagreedactivitiesarebeingundertakenandwhethertheyproducetheexpectedoutcomesTargetsarederivedfromthevisionstatement.TheyexpresswhatneedstobeachievedbywheninordertorealizethevisionforthefuturewithintheagreedtimeframeExtraordinaryactivitiesandprojectsfurtheringachievementofobjectivesneedtobeidentifiedandprioritizedObjectivesMeasuresTargetsInitiativesVisionStrategy29StepbyStepWhatisourcompany’svisionforthefuture?Mission&Vision30StepbyStepMission&VisionFinancialWhatisourcompany’svisionforthefuture?Whatarethefinancialobjectiveswithrespecttoachievingthevision?31StepbyStepMission&VisionCustomerFinancialWhatisourcompany’svisionforthefuture?Whatarethefinancialobjectiveswithrespecttoachievingthevision?Whatcustomermeasuresarekeyfordesiredfinancialperformance?32Mission&VisionCustomerFinancialWhatisourcompany’svisionforthefuture?Whatarethefinancialobjectiveswithrespecttoachievingthevision?Whatcustomermeasuresarekeyfordesiredfinancialperformance?InternalProcessesAtwhatinternalprocessesmustweexceltosatisfyourcustomers?StepbyStep33Learning&GrowthWhatmustwedotodevelopourinternalprocessresources?StepbyStepMission&VisionCustomerFinancialWhatisourcompany’svisionforthefuture?Whatarethefinancialobjectiveswithrespecttoachievingthevision?Whatcustomermeasuresarekeyfordesiredfinancialperformance?InternalProcessesAtwhatinternalprocessesmustweexceltosatisfyourcustomers?34CustomerCustomerSatisfaction&ValuePerceptionsCustomerRetention,ReferencesNewCustomersAcquiredCompetitivePricingAtwhatcustomermeasuresdoweneedtoexceltoproducethedesiredfinancialperformance?FinancialSalesNetIncomeCost-Per-UnitProcessedWhatarethefinancialobjectiveswithrespecttoachievingthevision?Whatisourcompany’svisionforthefuture?ProcessEffectivenessAtwhatdoestheprocessneedtoexceltodelightcustomers?Timeliness/SpeedReliability/AccuracyConvenienceTreatment/InteractionTangiblesFailureRecoveryLearning/GrowthNewProductsIntroducedCompetenciesAcquiredContinuousLearning(e.g.,Patents)TeamWorkChallengesOvercomeWhatmustwedotodevelopourinternalresourcesinordertoexcelatourprocesses?TypicalBalancedMeasuresExpressedin#’s%’s,Yields,StigmaLevel35ScorecardFormat&ExamplePerspectiveObjectivesMeasuresTargetActualCompCommentsLagLeadFinancialCustomerInternalProcessesLearning&Growth36StrategicObjectivesLagMeasuresLeadMeasuresTargetActualLastMonthCommentsFinancialExceedshareholderexpectationsIncreasesalesvolumeImprovemarginsDiversifyincomestreamSharePriceROIGrossrevenue($1,000m)Grossmarginsas%ofgrossrevenueOperatingexpensesas%ofgrossrev.%incomefromtop20%ofcustomers#ofproducts=5%ofgrossrevenue7225%6,000352050659.5212/35,48731.524.270452.755,12729.926.482452wkhigh:65.5low:47.75YTDfigureCommoncause;targetunreachableCustomerIncreasesalestoexistingcustomersDiversifycustomerbaseAttractnewcustomersCross-sellratioCustomerreturnsonratePreferredSupplierContactsv.stargetaccountsNewbusinessrevenue($1,000m)Advertising$spent2035303/2850025,0001390203/2880024,5002195225/2860022,30026of201cust.–specialcausetowCommoncause–95avg.foryearSpecialcause–dropped6inarowAllinaerospaceindustrySpecialcausehighCommoncauseInternalBusinessProcessesTargetprofitablemarketDevelopnewproductsOptimizeproductionprocessDevelopresearchcapabilities#segmentsidentifiedNewproductsales$ProductdevelopmenttimeProductioncycletimeDevelopofmarketresearchvs.plan340,00030days90min.75025,000N/a285min.50032,000240days190min.50Nonewsinceaerospace5mos.agoCommoncauseNonewproductstomkt.thismonthCommoncause-reengr.needed?NonewmilestonesreachedLearning&GrowthDevelopemployeeskillsIntegratesystemsProofperemployeeEmployeesurvey#trainingdaysperemployeeRetentionrateDevelopmentofMISstrategyvs.planOrdersreceivedviainternet50,00090299901030,00060.759590020,00065.25100900Commoncause;24,000avg.foryearCommoncause;75avg.foryearSpecialcause;highsalestrainingCommoncauseAheadofplan–finishinsixweeksNosystemsoperationalyet37演讲完毕，谢谢观看！