BPMS 06 Gap Analysis

Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,6-,*,Gap Analysis,Business Process Management,Service,Quality,Cost,Delivery,Distributor,Internal,OEM,User,Customer Expectations,What are the major customer expectations?,Critical Issues,Span Units&Scale,Process Output Measure,CTC Issues,What are the Operational Definitions of CTC Issues?,Customer Span,What do Customers See?,Scorecards to Manage Results,Indicators of Process Performance,Core and Enabling Processes,Critical-to-Customer Outputs,Customer Focused Objectives,C,S,I,P,O,Cross Functional Mapping,What is Process that produces CTC Outputs?,Scorecards,What will be measured?,Gap,Cluster,Cluster,Project,Project,Project,Project,Six Sigma Projects,What projects are needed to close the gaps?,What are the key measures of process performance?,What are the gaps between process performance and CTC objectives?,2,What do you measure?,Y=f(x,1,x,2,x,n,),What are the,Ys,-measures of the outputs of your business process?,Ys are important to your customer or they are directly related to whats important to your customer,What are the,Xs,-measures within your business process that correlate to the output measures(Y),Internal and uncontrollable,Internal and controllable,3,We are Seeking the Drivers of Process Improvement,Y=(x,1,x,2,x,3,x,4,x,n,),Process,Process Effectiveness,(Outside-In),Process Efficiency,(Inside-Out),and,4,Metric Categories,Process Effectiveness,Provides Required Features,Freedom from Deficiencies,Defect rate,Accuracy,Actual/Plan,Delivery On-Tome,Timeliness,Response Time,Process Efficiency,Effective at Least,Cost Competitive,Adaptability,Effective&Efficient,In the Face of Change,Cost Per Transaction,Time Per Activity(Cycle Time),Process Yield,Output Per Unit(Space,FTE,Time),Total Cycle Time,Set Up Time For New Customer Needs,Cycle Time for Special Customer Requests,Percentage of Special Requests Not Met,5,Measures provide a basis for,:,Specifically communicating performance expectations to team members,Quantifying what is really happening in the organization,Identifying performance gaps which should be analyzed and eliminated,Effectively making and supporting decisions regarding resource allocation and action planning,6,Hierarchy of Process Measures,Level 1:External Customer Measures,Level 2:Internal End of Process Indicators,Level 3:Metrics at Key Junctures or Milestones of Process,Level 4:Step or Activity Measures,7,Hierarchy of Process Measures,CUSTOMER,FUNCTION A,FUNCTION B,FUNCTION C,M3,M2,M2,M3,M1-internal,M1-external,M1-External,Customer Requirements Measures,relate directly to customer requirements,M1-Internal,End of Process Measures,reflect customer requirements as well as business requirements these are end-of-process measures,M2,Sub-Process Measures,output of sub-processes and/or functions,M3,Key Process Step Measures,output of specific process steps,8,How to Develop Process Measures,OUTPUT CRITICAL DIMENSION MEASURE GOAL TRACKING DEVICE,1,2,3,4,5,Identify significant outputs Identify critical dimensions Develop measures for Develop goals for each Define the tracking device,(end of process,sub-process,for each significant output each critical dimension measure.The goal should and data source for each,Job)represent“entitled performance measure,EXAMPLE,Contract prepared,Accuracy,TImeliness,Number of errors,requiring rework,Time from agreement made to contract prepared,0,3 working days,Contract rework numbers,Contract print-out,dates,Books shipped,Quantity,Timeliness,Accuracy,Shipment volume per day,Number of on-time shipments,Number of shipping errors,15,000 per day,95%on time,Daily shipping report,Billing error report,Billing error report,0,9,Process Measurement Chart,M1-External,Training,material,CRITICAL DIMENSION,INPUT,MEASURE,GOAL,*,Accuracy,*,Timeliness,M1-Internal,OUTPUT CRITICAL DIMENSION MEASURE GOAL,Training,Material,*,Timeliness,M2s,SUB-PROCESS OUTPUT CRITICAL DIMENSION MEASURE GOAL,*,Timeliness,*Timeliness,*,Timeliness,M3s,PROCESS STEP OUTPUT CRITICAL DIMENSION MEASURE GOAL,*,Timeliness,*,Timeliness,10,Review your core process map,Establish measurements of process effectiveness that link to Customer CTQ,Establish goals for process effectiveness,Quantify the gaps between desired and current performance,Step 1:Gap Analysis for Customer Expectations,Process Effectiveness,Use Gap Analysis Table,11,S/O,Production,Plan,Critical Y,:Fast delivery of management information,Customer,:Management,Requirement,:4days(As-Is 8day 2days),MRP,(Estimate material consumption),P/O,Material,Sourcing,Production,ITC,Product,Shipping,Product/,Material inventories,Calculate material cost,Closing process input and output,D,D,Calculate labor cost,Calculate expense,Calculate overhead cost,Closing bank account,D+3 days,D day,X1,X2,Samsung Example,12,Calc.Product cost,Closing sales,Estimate sales profit,Calc.Other expenses,Estimate financing,cost,Estimate pre-tax profit,B/L,P/L,verification,END,D+6d