Educ Process Improvement Day 2

8/7/2019 Educ Process Improvement Day 2

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Process Improvement Strategies


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AfterAnalyzing.

Once we figure out and have verified what

the issues and challenges are regardinga particular process, we try to streamline

the process..


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Streamlining Processes

Streamlining processes suggest the

trimming ofwaste and excess,

contouring to provide the smoothestflow

It is hoped that with streamlining the

process will operate with the least

disturbance to its surroundings

In the end, we would like to have efficient

and effective processes


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Efficient & Effective Processes

Have few handovers between staff / departments

Produce minimum paperwork

Have high quality outputs

Deliver the desired output to stakeholders with minimalcontact /liaison

Have effective ICT systems supporting orfacilitating

them

Are understood & mapped / documented wherebeneficial


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Note that when we streamline

processes

ELIMINATE SIMPLIFY INTEGRATE AUTOMATE

Over-productionNon-Value Activity

Waiting Time

Transport

Processing

InventoryDefects/Failures

DuplicationReformatting

Inspection

Reconciling/Matching

Forms

ProceduresCommunication

TechnologyProblem Areas

FlowsProcessesPaper work

Jobs

TeamsCustomers

Suppliers

Dirty

DifficultDangerous

Boring

Data CaptureData transferData analysis


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Cornerstones ofStreamlining Processes

Bureaucracy elimination

Duplication elimination

Value-added assessment

Simplification

Process cycle-time

reduction

Error proofing

Upgrading

Simple language

Standardization

Supplier partnerships

Big picture improvement

Automation


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Bureaucracy Elimination

Bureaucracy creates excessive paperwork

Fact: managers spend 40-50% of their time writing andreading job related materials; 60% ofclerical work isspent on checking, filing, and retrieving information

Why? Paranoia about being blamed for errors

Poor training

Distrust ofeveryone

Lack ofwork

Inability to delegate

Need to overcontrol

Unwilling to share information

Thrill ofchecking for and finding miniscule mistakes


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How do you identify bureaucracy?

Are there unnecessary checks & balances

Does the activity inspect or approve someoneelses work?

Does it require more than one signature?

Are multiple copies required?

Are copies stored for no apparent reason?

Are copies sent to people who dont need the

information? Is there unnecessary written correspondence?

Is someone approving something he or she hasalready approved?


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Duplication Elimination

If the same activity is being performed at

different parts of the process or by

different individuals in the process, see if

both processes are needed.


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Value-Added Assessment

The object ofvalue-added assessment is

to optimize business value addedactivities and minimize or eliminate no

value-added activities.


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(X)-Value Add?

Activity

Necessary to

produce output?

Contribute to

Customer Req?

Contribute to

Bus. Functions

Real Value Add BusinessValueAdd

No Value Add

Activities that must

be performed to

meet customer req.

Activities that do not contribute to meeting

customer req. These can be eliminated

without deterioration on product/service

functionality

Yes No

No

YesYes

No


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Simplification

The objective is to reduce complexity

wheneverfeasible, leading to few stages,

fewer tasks, fewer interdependencies, etc.

How to simplify?

Combine similar activities

Reduce amount ofhandling

Eliminate unused data

Refine standard reports


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Process cycle-time reduction

Long cycle times prevent product deliveryto customers and increase storage costs.

Strategies:Serial vs. Parallel activities

Change activity sequence

Reduce interruptions

Set priorities Improved timing

Location analysis


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Error Proofing

People make errors. So we correct the

errors, but this takes time.

Our objective in business, is to reducedouble-checking or second guessing

ourselves.

StrategyMake a list of things you could do wrong and

then use error-proofing methods to eliminate the

possibility ofmaking the error. (Negative

analysis)


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Fail Safing

Creating a control

condition where thecustomer, server, or

process can take only the

correct (or desired) action

while engaged in aservice process.


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Upgrading

Old things, ways and knowledge may

contribute to delays and distractions Upgrade them!


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Simple Language

Do you understand your memos?

Evaluate the present documents used in

the process to ensure that they are writtenfor the user.

Strategies:

Determine the reading and comprehension

level ofyour audience

Familiarity with terms and abbreviations

All procedures that are more than 4 pages long

should start with a flowchart


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Standardization

Standardization ofwork procedures is

important to ensure that all current and

future employees use the best way to

perform the activity.

Procedures should exist for performing

most activities


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Supplier Partnerships

All processes have inputs that come from

people outside the process

Examine each input process and ask:Does the process really need the input

Is it entering the right place?

Is it at the right quality level?

Is the timing correct?

Is it received in the best possible format?

DO you get more than you need?


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Big Picture Improvement

Step out of the current process and define

what the perfect process would bewithout the constraints of the present

organization and/or process.


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Automation

When deciding where to begin the

automation, look for:

Repetitive operations that will improve ifperformed more quickly

Operations that will improve when people who

are physically separated communicate more

quicklyOperations for which standardized computer

system components are available.


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Project Management

Fundamentals


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What is a Project?

Atemporary endeavor undertaken to create aunique product or service

TemporaryA

one time eff

ort; having defined starting andend dates; having a specified objective and

scope ofwork to be performed; having a setbudget; usually being performed by a temporaryorganization; being led by one ultimately

accountable individual

UniqueSolving a problem or addressing a need


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Project vs. Program

vs. Routine Work

A group of related projects managed in a

coordinated way to obtain benefits and

control not available from managing them

individually. Programs may include

elements of related work outside scope of

the discrete projects in the program.

PMBOK 2009


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What is Project Management?

The selection, design (planning, scheduling), execution,

control, evaluation, and termination ofa project to meet

project objectives and customer expectations within

allocated cost, time, resource, and performance

constraints (Keating, 1998).

Project management is the art ofcreating the illusion

that any outcome is the result ofa series of

predetermined, deliberate acts when, in fact, it wasdumb luck. (Kerzner, 1998)


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Project Phases

Step 1 : Define the projectINITIATION AND

DEFINITION

Step 2: Generate Tasks

Step 3: Determine Roles and Responsibilities

Step 4: Define Task Interdependences

Step 5: Develop Schedule

Step 6: Perform Resource Allocation

Step 7: Generate Budget

Step 8: Develop Risk Management

PLANNING

Step 9: Track and Manage the ProjectEXECUTION

AND CONTROL

Step 10: Perform Post-Project ReviewCLOSE OUT


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About Project Scope


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Project Scope

Ascope describes what you expect to

deliver to your customer when the project

is complete

A poorly defined scope is the most

frequently mentioned reason for project

failure.


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Project Scope Checklist

Project Objectives

briefsummary of

essential proj.

information (who, what,why, optional : when &

cost)

Deliverables

typically will include

time, quantity and cost

estimates

Measures ofSuccess

Milestones

Important control points

in the project

Technicalrequirements

Limits and Exclusions

Reviews with

customer


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The PM Triage

Project

ScopeTime

Resources


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Project Management Dilemma

Cost

Perfor ance

i eScope

C = f(P,T,S)


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Project Management

Project Cost Management


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Work PackageCosts

Labor

Materials Sub-contractedWork

EquipmentLease

Tools &Supplies

Overhead

Services

(Some) Sources ofProject Costs


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=Total

ProjectCosts

LaborMaterialsContractsSupport

BenefitsOverheadAdmin+

Types ofProject Costs

Costs related to a

project that can be

traced back to a

cost effective way

Direct Indirect

Costs related to a

project that

CANNOT be

traced back to a

cost effective way


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Types ofcosts

Intangible vs Tangible Costs

Sunk Cost

Money that has been spent in the pastBurdened Cost

AKA Overhead, is all the "little" stuff that makes

the project possible.

Can be derived as a percentage ofdirect labor

or the raw cost


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Examples ofBurdened Cost

Examples

Land purchase or lease cost

Building lease cost

Real estate taxes Environmental fees and taxes

Utilities (electrical, water, phone, etc.)

Staffsalaries (management, indirect labor, etc.)

Maintenance costs Real and capital depreciation


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Risk

Dictionary definition: The possibility of

loss or injury

Question: So i

fthere is a possibility o

floss or injury, then why even perform a

certain task?

The change that an undesirable event will

occur and the consequences ofall its

possible outcomes


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Risk Management

The identification ofas many risks as

possible

Minimizing their impact

The managing of responses to those

events that do materialize

Providing contingencyf

unds to cover risksthat do materialize.


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Risk Identification

Process of transforming uncertainties and issuesabout a project into distinct risks that may bedescribed and measured.

Risks cannot be assessed until identifiedNeed methodical process

Risk definition: Scenarios & Consequences

Central question -- what can go wrong with this project,activity, task?

Good risk event definitionClear and concise easily understood

Risk event captured


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Evaluation ofRisks The Risk

Severity Matrix (RSM)

The RSM is a Systematic determination of

the consequences of identified risk events

Analysis in 3 phases

PHASE 1: Determination of likelihood of

occurrence --Low, Medium, or High

PHASE 2: Determination of Impact ofEvent

Low, Medium, or High ON... Cost, Performance, Scope, Time (Basics)

PHASE 3: Determine the Severity of risk event

Low, Medium, or High


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Planning for risks in the project

Planning is function ofdeciding what, if

anything, should be done with a specificrisk event The STRATEGY for managing

the risk event.


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How does one respond to a risk?

Reduce the RiskCommon plan that is used.

Retain the RiskThe project owner assumes the risk because the chance

ofsuch an event happening is slim (e.g. flood orearthquake)

Transferring the RiskThe risk is passed on to another party (e.g. the whole

development project is given to a contractor - fixed

price contracts) Share the riskPartnering with another company


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Contingency Planning

An alternative plan that will be used ifa

possibleforseen risk event becomes areality

It is necessary to identify the triggers that

will activate the implementation of the

contingency plan


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PMBOK Ratings Impact for a Risk

Documents

Educ Process Improvement Day 2