Transcript Performance Development Corporation

Business System Requirement Analysis (BSRA)
(Business Process Redesign)
NY DAMA
2012
Presented by:
Arvind D. Shah, Managing Principal
Performance Development Corporation
Princeton, NJ 08540
(609)443-1226
[email protected]
www.perfdev.com
5/9/12
 Performance Development Corporation, 2002. All Rights Reserved.
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History of Accomplishments
Performance Development Corporation (PDC) is recognized internationally for assisting
hundreds of clients in achieving business benefits from advanced technologies. PDC has made
significant contributions through a series of notable accomplishments including:
Model Driven Enterprise Information Integration (2005)
CRM article published in the Journal of International Institute of CRM (UK) (2003)
Business Process Redesign Handbook (1997)
Introduced comprehensive Change Management seminar and methodology(1994)
Integrated Business Reengineering, Total Quality Management, and Information
Engineering methodologies (1991)
Information Strategy Planning Handbook (1990)
The Management Handbook for Information and End User Computing (1988)
Relational Development Environment Guide (1987)
Started the industry-leading Data Base Newsletter (1979)
Developed Data Administration concept (1976)
Developed Service Analysis - a methodology for defining end user requirements (1975)
Published Comparative Analysis of Data Base Management Systems (1973)
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Mission
Enable our customers to clarify and/or achieve their business goals
through the gainful use of knowledge, technology and change methods and
techniques.
PDC helps its clients accelerate their move to new business environments
through knowledge and technology enabled management. We assist
clients as they seek to clarify and implement business strategy in
advanced technology environments. We help management ensure that
the business drives the process and that technology provides practical
value within a changing organizational culture.
Technology Enabler and Driver
New Business
Environment
Old Business
Environment
Empowered Management
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Partial Client List
Manufacturing
Financial /Insurance
Abitibi-Price(Canada)
ALCOA
Ciba-Geigy
EBSCO
Eli Lilly and Company
FMC Corporation
General Motors
Hallmark Cards
IBM
Iron Ore Company(Canada)
Lockheed
Merck and Company
Nycomed(Norway)
Philip Morris
Toshiba(Japan)
United Biscuits (UK)
Weyerhaeuser
Abbey National Bank(UK)
American Express
Bank of America
Bank of Delaware
Blue Cross/Blue Shield
Dow Jones
Fireman's Fund Insurance
JCPenny Life
Johnson and Higgins
Kemper Insurance
Providian Insurance
Transamerica Insurance
UNUM Insurance
USF&G
Utilities
AT&T
Boston Edison
Carolina Power and Light
GTE
National Fuel Gas
Nebraska Public Power District
NYNEX
Oglethorpe Power
Southern California Gas
Southwestern Bell Telephone
United Telephone
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Federal, State, Local
Government
Atomic Energy (UK)
Belmont County, OH
Calgary(Canada) City
Canada Post (Canada)
Delaware Department of Finance
Montgomery County, MD
New Hampshire Dept. HHS
New Jersey Motor Vehicle Services
New Jersey OTIS
South Dakota Dept. of Transportation
Wisconsin Dept. of Transportation
US Agency International Development
US Central Intelligence Agency
US Department of Energy
US Naval Facilities Engineering
Petroleum
Exxon
Getty - Texaco
Indian Oil (India)
Mobil Oil
Norsk-Hydro (Norway)
Shell Oil
Sun Oil
Transportation
Leaseway
Mayflower
Education
Retail
Cornell University
Duke University
University of Michigan
National Education Association
Compucenter(Brazil)
Giant Foods
Sainsbury(UK)
Thorn-EMI(UK)
Venture Stores
American Bible Society
CH2M Hill
Young & Rubicam (UK)
 Performance Development Corporation, 2002. All Rights Reserved.
Service
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Consulting Services
Our scope of consulting and education services is in a constant state of evolution due to the
introduction of new management techniques and advanced technologies and their proven viability in
the marketplace. PDC currently provides consulting, education and placement expertise in the
following areas:
Management
•
Business Process Reengineering
•
Customer Relations Management
•
Information Strategy Planning
•
Enterprise Architecture Planning
•
Visioning and Managing Change
•
Data Management/governance
•
Disaster Contingency Planning
Technology
•
IT Restructuring
•
Technology Architectures and Selection
•
Business Area Analysis
•
Process/Data Modeling
•
IRM for Emerging Technologies
•
Data Warehousing
•
Internet/Intranet/Extranet
Implementation
•
Turnkey Systems
•
Project Management
•
E-Commerce Development
•
Offshore Development
•
Quality Assurance
Professional Services
• Executive Search
• Permanent Recruiting
• Contract Services
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 Performance Development Corporation, 2002. All Rights Reserved.
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Education Services
Effective on-site education course offerings have always been a top priority at PDC. Thousands of
individuals have attended our seminars, normally offered in one, two and three day formats. These
may be condensed to short management presentations. Our current course titles include:
Business Reengineering (2 days)
Provides an intensive, management-oriented overview based on extensive experience and the dramatic
results achieved.
Business Process Redesign (3 days)
Shows how to redesign business processes to increase profits, productivity, competitiveness and customer service.
Information Strategy Planning (3 days)
Describes managing business success through defining organization information needs and priorities in a
structured manner.
Business System Requirements Analysis (3 days)
Shows how to analyze business requirements using data modeling, process modeling, and information
engineering techniques.
Managing the Data Warehouse Commitment (2 days)
Illustrates business driven approaches to utilizing information assets.
Change Management (3 days)
Shows how to integrate change in people, systems and structures.
Information Resource Management (2 days)
Illustrates how to use Data Sharing and Data Availability to accomplish the business improvement objectives.
Data Modeling (2 days)
Explains different levels of Data Modeling that play an important role during the Planning (ISP),
Analysis (BAA) and Design (BSD) phases.
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Arvind D. Shah
Managing Principal
Mr. Shah is a Managing Principal of Performance Development Corporation and is known internationally as a speaker
and authority. Mr. Shah has over thirty years of broad experience, assisting and leading efforts in Strategic Planning,
Change Management, Business Reengineering, Information Engineering, Information Strategy Planning, Data
Administration, Data Warehousing, and Project Management for major corporations worldwide. His consulting has
involved virtually all facets of business and government in a broad range of applications. Mr. Shah's principal interests
have been focused on the end user and managerial aspects of Information Technology. He developed PDC’s approach
to blending Business Reengineering, Total Quality Management (TQM) and Information Engineering. He has also
developed management principles to integrate the front end Internet and client/server environments with the back end
mainframe computing.
Prior to joining PDC, Mr. Shah was with Dow Chemical, General Electric, Exxon and Corning Glass. He was
responsible for project management and design, development and implementation of IT applications in the areas of
customer service, finance and accounting, sales order processing and invoicing, inventory management, facilities
planning, management information, profit planning, sales forecasting, and material management systems. He has
extensive experience with decision support systems and data warehousing. His experience includes:
Business Reengineering
• Developed a Business Process Redesign Methodology that blended Business Reengineering, TQM, and Information
Engineering. Applied Business Reengineering techniques to significantly reduce the Procurement Cycle for parts and
equipment in a Mining organization.
• Decreased the Order Processing and Billing cycle from seven days to one half day through Business Reengineering for a
large Textile company. Guided a major Insurance company in the area of Claims Processing, reducing manpower by
60% while increasing customer service and responsiveness with an overall payback completed in less than two years.
• Headed a project to develop a business reengineering strategy development project for a technology service company.
The deliverables included a plan that blended Business Reengineering and Information Engineering.
• Assisted a major pharmaceutical firm in reengineering their sales force consisting of 2000 sales persons. The team
consisted of the client as well as consultant staff.
Information Engineering
Mr. Shah has directed or assisted over 100 projects involving Information Strategy Plans (ISP’s), Business Area Analysis
(BAA), Data Warehouse, Information Resource Management and other aspects of planning, design and implementation
of information systems for major Fortune 1000 size commercial organizations and government agencies.
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Reengineering of the Information Technology Services (IS) Function
Guided the restructuring of the IS Function for a strategic business unit of a Fortune 1000 sizes global
telecommunications firm. The objective was to prepare for planned business reengineering projects.
Assisted a division of a major Pharmaceutical company in the reorganization of its IS function. The objective was to
build systems using Information Engineering and Client Server Technologies. Directed a project which involved
restructuring the IS function of a Public Utility company. The objective was to transform the IS organization into a
mature organization capable of capitalizing on new technologies while being responsive to business needs. The
impetus was to incorporate Planning, Business Reengineering and TQM in all their projects.
Clients Served
AT&T
National Fuel Gas
Capital Holdings/National Liberty
Navy Federal Credit Union
Southwestern Bell
CH2M Hill, Inc.
State of Delaware
United Biscuits (UK)
GTE
Thorn EMI (UK)
FMC
Iron Ore (Canada)
National Computer Center (Brazil)
Nebraska Public Power District
Eli Lilly
National Fuel Gas
Rodale Press
Unionmutual Insurance Co.
Getty/Texaco Oil
Naval Facilities Engineering Command
Venture Stores
AP Technoglass
State of New Jersey
University of Michigan
Toshiba (Japan)
Nycomed (Norway)
Education
• BS, Electrical Engineering, University of Bombay
• MS, Electrical Engineering, Ohio State University
• MBA, Information Systems, College of William and Mary
Publications
Co-authored the following books:
The Management Handbook for Information Center and End User Computing, published in 1988 by QED Information
Sciences
The Information Strategy Planning Handbook, published in 1990 by Performance Development Corporation
The Business Process Redesign Methodology Handbook published in 1999 by Performance Development Corporation
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Business Systems Requirement Analysis
(Systematically integrating process, data and business rules)
As the bridge from Planning to Design, Business System Requirement Analysis (BSRA)
builds upon the results of Enterprise Architecture or Information Strategy Planning to
document business system requirements. To be successful, you need a comprehensive
methodology which is flexible as well as replicable in addition to modeling tools and
techniques. A BSRA project is usually initiated from two sources. It could come from
systems planning or be initiated to address a specific business need. In either case it is
important that current processes and data sources are analyzed and business rules are
extracted and documented. Equally important is to improve process in order to solve the
current system problems and take advantage of the new system features.
No project can succeed if business analysts did not participate in the business system
requirements analysis. The data gathering, validation and approval are key steps for
delivering a system that meets business needs. The project must have milestones at which
point senior management is involved in decision making.
This presentation includes the discussion of the methodology that evolved over 30 years
of PDC’s consulting experience. The methodology integrates the aspects of enterprise
architecture, information engineering and business process as well as quality
management.
5/9/12
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Business System Requirement Analysis (BSRA)
1. The BSRA Methodology
2. How to plan and scope the project for on-time
delivery of quality results
3. How to gather and document Requirements
4. How to integrate Process and Data
5. How to redesign processes
BSRA
6. How to blend Quality Management
7. How to develop a transition plan
8. How to get management and users involved
9. How to apply this approach to Data Management
Processes
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 Performance Development Corporation, 2002. All Rights Reserved.
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System Development Life Cycle (SDLC)
Scope
Detail
Information Strategy Planning
Business Sys. Req. Analysts
Business System Design
Technical System Design
Implementation
B-551
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BSRA Methodology Overview
1. Plan the Project
Plan
2. Get Management
Input
4. Develop Top-Down
Process Model
5. Analyze Current
Processes
6. Define Data Needs
Analyze
7. Resolve Problems
Redesign
8. Redesign Processes
9. Finalize Data Model
10. Document Business
Rules
11. Prototype Processes
12. Incorporate Quality
Management
Plan Transition
13. Perform
Cost/Benefit/Risk Analysis
14. Develop Transition
Plan
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BSRA Deliverables
 Process Documentation

Process Charts – current & proposed

Process Profiles – current & proposed

Information Sources – current & propose

Highlight Changes

Data Model
 DM Charts
 Entity/Attribute Profiles
 Data Definitions including changes
 Data Conversion Required

Business Rules
 Current & Proposed
 Highlight changes

Technology Assumptions

Cost/Benefit/Risk Analysis
 Process/System Implementation Plan
5/9/12
 Performance Development Corporation, 2002. All Rights Reserved.
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BSRA Methodology Overview
1. Plan the Project
Plan
2. Get Management
Input
4. Develop Top-Down
Process Model
5. Analyze Current
Processes
6. Define Data Needs
Analyze
7. Resolve Problems
Redesign
8. Redesign Processes
9. Finalize Data Model
10. Document Business
Rules
11. Prototype Processes
12. Incorporate Quality
Management
Plan Transition
13. Perform
Cost/Benefit/Risk Analysis
14. Develop Transition
Plan
5/9/12
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Task 1. Plan the Redesign Project
Subtasks
1.1 Define/refine project scope
1.2 Select project team
1.3 Secure Facilities
1.4 Develop project schedule
1.5 Allocate resources
1.6 Define deliverables
1.7 Prepare documentation system
1.8 Obtain management approval
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Importance of Scoping
 Puts fence around project
 Sets Stakeholder expectations
 Data Self-sufficiency
 Size selected will be appropriate
 Timeframe is defined
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Business Areas / Systems Dependency Chart
20%
20%
Guest
Information
13%
Human
Resource
13% 25%
13%
17%
25%
17%
Reservation
Promotion
20%
40%
10%
10%
10%
20%
Facilities
Management
10%
17%
34%
33%
13%
Menu
Information
25%
13%
13%
Ordering
25%
25%
13%
14%
40%
20%
20%
Billing
20%
Purchasing
14%
42% 14%
10%
17%
34%
17%
Trend
Analysis
33%
Cash
Monitoring
17%
17%
NOTE: Percentages refer to the percentage of information classes created by another system.
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Business Process Redesign Project
Executive
Sponsor
Management
Steering
Committee
Project
Manager
BPR &
Quality Mgmt.
Experts
Technology
Experts
Project Team
A
Data
Analyst
Project Team
B
Note: The project must report to the highest possible level management; otherwise the results are diluted.
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Who Gets What Kind of
Education and Training?
• Management and Client
– One-two hour overviews
– Brief education at milestone meetings
• Project Team
– Team-building training in the beginning
– Three day workshop training
– Periodic reinforcement training at beginning of each major task
• Client Representatives
– Four hour overview
– Brief training when needed
• Documentor(s)
– One day documentation training and methodology review
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Interview Estimating
2 hours for preparation
2 hours for interview
2 hours for debriefing/documentation
6 hours
 For every interview hour, provide two hours for
preparation and review.
 Immediate documentation after interview is
recommended.
 In cases where travel is involved, concentrated period
of interviewing must be followed by appropriate time
for documentation and cleanup.
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Focus Group Session Estimating
+ Usually 1/2 or 1 day session.
+ 6 - 12 participants.
+ Limited to single topic.
+ 1/2 day session will require 1/2 day preparation and
documentation.
+ Focus group technique approximately 30% faster than
interviewing.
+ Focus group sessions allow all interested partners to build
consensus on models and issues, so less time is required for
cleanup and integration.
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BSRA Project Plan
Task
1. Plan the Redesign Project
2. Define Project Expectations
3. Benchmark Processes
4. Develop Top-Down Conceptual Process Model
5. Analyze Current Processes
6. Define Information Needs
7. Redesign the Process
8. Prototype the Process
9. Incorporate Quality Management
10. Analyze Technological Requirements
11. Determine Organizational Impact
12. Address Human Resources Issues
13. Perform Cost/Benefit/Risk Analysis
14. Develop Transition Plan
Milestones
-Senior Management Project Review
- Middle Management Approval
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2

4

6
8
Week

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12
14

pdc
16

18
Documentation System
 Process
 Data
 Business Rules
 Systems/technology
 Problems/solutions
 Data gathering
 Communication requirements
Remember a fool is still a fool with a tool
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Project Initiation
Management Role
o Initiate commitment
o Continue education
o Combine with overview session
o Ask for frequent participation
o Solicit departmental support while seeking approval
o Announcement of project from Chief Executive
Officer
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 Performance Development Corporation, 2002. All Rights Reserved.
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BSRA Methodology Overview
1. Plan the Project
Plan
2. Get Management
Input
4. Develop Top-Down
Process Model
5. Analyze Current
Processes
6. Define Data Needs
Analyze
7. Resolve Problems
Redesign
8. Redesign Processes
9. Finalize Data Model
10. Document Business
Rules
11. Prototype Processes
12. Incorporate Quality
Management
Plan Transition
13. Perform
Cost/Benefit/Risk Analysis
14. Develop Transition
Plan
5/9/12
 Performance Development Corporation, 2002. All Rights Reserved.
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Process Definition
A collection of prescribed activities, which, when
performed, add value to product or service
• Produces distinct deliverable whose quality can be
measured
• Has a beginning and end
• Usually repetitive
• At high level is cross functional
• At low level is within a function
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Business Process Model
(High level processes are logical functions)
Manage Restaurant
Perform
Strategic
Planning
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Manage
Guest
Relations
Manage
Cuisine
Preparation
Manage
Food
Operations
Manage
Human
Resources
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Measure
Operations
Manage
Facilities
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Process Decomposition Diagram
(Lowest level process) Example
Take a
Hot Tub
Remove
Clothes
Heat
Tub
Check
Water
Turn on
Heater
Turn off
Heater
Take off
Shoes &
Socks
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Prepare
for Tub
Collect
Toys
Remove
Hat
Call for
Champagne
Take
off Tie
Prepare
to Leave
Enjoy
Tub
Find Ball
for Dog
Play with
Toys
Call for
Towel
Drink
Champagne
Leave
Tub
Call for
Drink
More
Champagne
Champagne
Throw Ball
for Dog
 Performance Development Corporation, 2002. All Rights Reserved.
Call for
Throw Dog
More
in Tub
Champagne
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Dry
Self
Process Profile Content
• Objective
• Description
-------------------------------------











Stakeholder
Deliverable/Output
Trigger
Input
Quality Criteria
Value Added
Information Needed
Organizations (participating)
Frequency
Volume
Availability (response time)
Related Process
-Prerequisite
-Post-requisite
 Tasks
 Problems
 Current system support
Some of these will be developed during project
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Process Profile Example
Process: Guest Services
Objective:
Satisfy diner’s request as appropriate to current demand
Description:
All activities involving resolving time and place for diner, seating,
presenting cuisine, meal, and bill
-------------------------------------------------------------------------------------------------------------------------------(Gather the following information only if easily available)
Stakeholders:
Diner, Maitre D’, waiter, chef
Deliverables/
Output:
Seated diners, minimal vacant table time, bill
Trigger:
Diner calls for reservation
Input:
Request for diner
Quality
Customer satisfaction, vacant table time, accepted order
Value Added:
Increase patron loyalty, increase repeat business
Information
Needed:
Patron information, seating availability, menu
Participating
Organizations:
Guest services, food operations
Frequency:
Cost:
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BSRA Methodology Overview
1. Plan the
Redesign Project
3. Benchmark Processes
2. Define Project
Expectations
4. Develop Top-Down
Conceptual Process Model
5. Analyze Current
Processes
6. Define Information
Needs
7. Redesign the Process
8. Prototype the Process
9. Incorporate Process
Quality Management
10. Analyze Technology
Requirements
11. Determine
Organizational Impact
12. Address Human
Resource Issues
13. Perform
Cost/Benefit/Risk Analysis
14. Develop Transition
Plan
5/9/12
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Current Process Model
View of current business processes








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Who performs?
Where is done?
What is done?
Why it is done?
Timing of processes
Tools used
Documents used or produced
Problems and their significance
 Performance Development Corporation, 2002. All Rights Reserved.
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Current Process Model – Data Gathering
Sources
• Process managers
• Process performers - “doers”
• Current process documentation (e.g. job performance aids)
Techniques
• Interviews
• Focus Groups
• Structured Analysis
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Document Current Processes
Data Gathering Steps
• Summarize major activities performed by interviewee:
• Capture the process flow involved
• List all the activities and repeat to confirm your
understanding
• Review each activity in detail:
• Concentrate on the data sources used
• Ask for copies of each source
• Mark on the source documents the data used
• Discuss any data source not yet accounted for:
• For reports, concentrate on usages
• Watch for information exchanges by telephone/email
• Ask about problems; Invite suggestions for improvements
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Document Current Processes
Data Gathering Suggestions
• Use top-down conceptual model and profile from Task 4 as
guideline and verification of completeness.
• Don’t take anything for granted; there is no such thing as a bad
question.
• Keep the interview on track. Ask an appropriate question when
you think the interviewee is going off the subject.
• Don’t fill out forms in front of users.
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Workflow Diagram
(good for management presentation)
Acquire Ingredients
Pay Invoice
Purchasing
Order
Ingredients
Vendor
Send invoice
Accounting
Department
Release Order
La Nouvelle
Grabbague
Ship
Ingredients
Vendor Warehouse
Store Ingredients
Forward Receiving
Document
Storeroom
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Process Chart
Hierarchical View
Acquire
material
O/P
Receive
materials materials
Pay
Process Flow View
Vendor
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Order
materials
Receive
materials
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Pay for
materials
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Process Map
Acquire Ingredients
Stakeholder
Employee
Buyer
Initiates
Requisition
Generates
PO
Vendor
Receives
PO
Buyer
approves sub.
Calls for
substitution
Ship
product
Warehouse
Receives
product
Time
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Document Current Processes
Current Materials Acquisition Process Chart
Purchase Order
Ordering
Vendor
Purchasing
Process
Requisition
Requisition
Issue
Purchase
Order
Purchase
Order
Purchase
Order
Payment
Pay
Vendor
Approved
Invoice
Ship Order
Receiving.
Shipping
Document
Receive
Shipment
Invoice
Receipt
Reconcile
for Payment
Accounting
Organization
Manual output
Automated output
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Document Current Processes
Example
Process Profile
Name:
Pay Vendor
Objective:
To fulfill contractual obligations to the vendor per the contract for goods and
materials received.
Description:
Printing and transmitting a check after receipt of approved Vendor Invoice on
the date computed based on the payment terms.
Stakeholder:
Vendor, Accounts Payable
Output:
Payment Check
Trigger:
Scheduled payment date
Input:
Approved Vendor Invoice, Vendor Contract, Receipt, Purchase Order
Metrics:
None
Value Added:
Fulfillment of Vendor Contract
Data Needed:
Vendor, Vendor Contract, Vendor Invoice, Payment (Date, Amount, Bank)
Frequency:
Weekly
Response Time:
2 hours
Volume:
500 payments
Problems:
Payment errors in discount calculations
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Process Analysis
Vendor
Customer
Planning
Personnel
Accounting
Maintenance
Stakeholders
Staff
Waiters
Ordering
Maitre d'
Wine Steward
Process
Chef
Operations
La Nouvelle Grabbague
PO
PE
= Process Owner
= Performance
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BO
BO
BO
PO
PO
PO
PO
SU
PE
PE
PE
PE
SU
BO
BO
BO
PO
SU
SU
BO
BO
SU
BO
BO
SU
PO
PO
PO
PO
BO
PO
PO
PO
PO
PO
PO
PO
BO
SU
BO
BO
BO
BO
BO
PE
SU
SU
PE
PE
PE
PE
PE
= Both Policy and Performance
= Support
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©
Analyze Trends
Review Local Market
Adopt Changes
Process Reservation
Enter Order
Present Cuisine
Present Bill
Receive Order
Schedule Order
Prepare Courses
Analyze Usage
Forecast Requirements
Plan Menu
Acquire Ingredients
Maintain Ingredient Inventory
Plan Staff
Acquire Staff
Train Staff
Schedule Staff
Evaluate Staff Performance
Inspect Facilities
Plan Maintenance
Perform Maintenance
Procure Facilities and Equipment
Acquire & Maintain Info Systems
Receive Monies
Pay Monies
Update General Ledger
Perform Cash Management
Monitor Financial Performance
How to Use Process/Organization Matrix
• Customize to suit your needs
• The following cell values might make more sense in your business
P=
Who is accountable for this process
Whose head will be on the block if this process fails
S=
Who supports or participates in the process
A=
Who reviews or approves
CD = Who is the direct customer for this process
CI =
5/9/12
Who is the indirect customer for this process
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Identification of Problems
• Solicit problems/issues process
• Identify the stakeholders impacted by the problem
• Associate with processes
• Associate with goals
• Quantify the impact of problem
• Identify the nature of problem
• Data-oriented
• System limitation
• Human-oriented
• Store in repository
• Assign team responsibility
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Problem Worksheet
Prepared By:
Description
5/9/12
Project:
Organizational
Entity
Data
Not
There
Not
Not
Accurate Feasible
System Limitation
Not
There
Not
Not
Correct Feasible
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Human
Union Training
Policy
pdc
5/9/12
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Inventory of Current Systems
• Existing business systems, automated and manual
• Organizational responsibilities
• Current files/databases
• Systems under development
• Technology platforms
• Measures of satisfaction/effectiveness
5/9/12
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BPR Methodology Overview
1. Plan the Redesign
Project
3. Benchmark Processes
2. Define Project
Expectations
4. Develop Top-Down
Conceptual Process Model
5. Analyze Current
Processes
6. Define Data Needs
7. Redesign Processes
8. Prototype Processes
9. Incorporate Process Quality
Management
10. Analyze Technology
Requirements
11. Determine Organizational
Impact
12. Address Human Resource
Issues
5/9/12
13. Perform Cost/ Benefit/ Risk
Analysis
14. Develop Transition Plan
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Reengineer the Process
Inputs
Mission and Goals
Problem Analysis
Process
Data
NeedsAnalysis
Out-of -the -Box
Thinking
Data Needs
Redesigned Process Ideas
5/9/12
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Do you want to
just redesign
or
reengineer the process?
5/9/12
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Business System Requirement Analysis
How does a typical system project start?
Enterprise Architecture planning
Business Need (M&A or Major change)
Outdated system or technology
5/9/12
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Current Situation (example)
Manual Process for Accounts Payable
Purchasing
Warehouse
Receipt
Document
P.O.
A/P
Invoice
Check
Vendor
A/P reconciles three documents
and prepares checks
5/9/12
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Case 1 – Process Automation
Company A Imaging Technology
Purchasing
Warehouse
Receipt
Document
P.O.
A/P
They are using Imaging Technology but
manual reconciliation
A/P now:
• Reconciles three documents
• Prepares checks
Invoice
Check
Productivity increased 25%
Vendor
A/P reconciles three documents
and prepares checks
5/9/12
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Case 2 – process redesign
Company B shares data and automates matching
Purchasing
Receiving
Receipt
Data
P.O.
• Receiving and A/P both only
add additional data by
sharing common P.O. data
D/B
Check
Invoice
Vendor
5/9/12
• A/P reconciles well-organized
and matched data instead of
documents
Productivity increased 50%
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Case 3 – Process Reengineered
Company C Reengineers the Process
• Only complete shipments
accepted Only
Receiving
Purchasing
Validates
Receipt
P.O.
D/B
• Purchasing can change a PO
• Receiving validates the shipment
receipt online
• A/P trusts receiving so no
reconciliation necessary
Check
• No vendor invoice
Vendor
5/9/12
•Productivity increased 100%
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Business Process Reengineering
Policy and Procedures
Organization
Processes
Business
Process
Redesign
Technology
5/9/12
Customer/Vendor/
Alliances
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Business Process Reengineering
1) Question the validity or need for the process in the
broader picture – can you totally eliminate it?
2) Can this process be outsourced?
3) If outsourced, how will they organize the process?
4) Can we do internally what the outsourcer could do?
5/9/12
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Refine Process Using Redesign Principles
 Question the validity of the process
 Ensure that all the problems are addressed
 Can you do the whole process in one step?
 Capitalize on data sharing
 Eliminate non-value-added processes.
 Re-sequence or use parallel processes to improve performance.
 Eliminate handoffs (Combine processes.)
 Replace a specialist’s function so that non-specialists can handle it
with automated decision making business rules. The specialist only
handles exceptions.
 Replace all pre-approvals after-the fact reporting
 Replace after-the-fact reconciliation with front-end edits, validation,
and quality checks.
 Explore new technologies
5/9/12
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Capitalize on Data Sharing
Steps
Eliminate redundant data entry and storage
Maximize data sharing with internal and external
stakeholders
Refine process design based on data sharing
5/9/12
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Data Sharing Matrix (Process vs Entity)
Entity
Process
Staff
Furnishings & Equipment
Facility
Table
Reservation
Guest
R
R
R
R
C
C
C
R
R
C
R
Analyze Trends
Review Local Market
Adopt Changes
Process Reservation
Enter Order
Present Cuisine
Present Bill
Receive Order
Schedule Order
Prepare Courses
Analyze Usage
Forecast Requirements
Plan Menu
Acquire Ingredients
Maintain Ingredient Inventory
Plan Staff
Acquire Staff
Train Staff
Schedule Staff
Evaluate Staff Performance
Inspect Facilities
Plan Maintenance
Perform Maintenance
Procure New Facilities/Equipment
Acquire and Maintain Info Systems
Receive Monies
Pay Monies
Update General Ledger
Perform Cash Management
Monitor Financial Performance
B-920
5/9/12
General Ledger
Invoice
Vendor
Other Establishment
Menu Line Item
Ingredients
Course
Order
Bill
R
R
R
R
R
R
C
R
R
R
C
R
R
R
C
U
U
U
C
R
R
U
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
C
R
U
C
R
U
R
C
C = Create
U = Update
R = Retrieve
D = Delete
R
C
R
R
R
R
R
R
R
R
R
R
R
U
R
R
R
R
R
R
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R
R
R
C
pdc
C
U
R
Ensure Problem Resolution
Steps
•
Review problem analysis summary from Task 5
•
Add any problems which may be created by the new
design
•
Resolve the problems and refine the processes
5/9/12
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Ensure Problem Resolution
Example
Extended Problem Resolution Table
5/9/12
Problem Name
Cause
Prevention
Recommendation
Matching Errors
Accounting
practices
Automate
sharable records
Eliminate paper items
Delivery errors
Partial
shipment
No partial
shipments
Use data base
Payment errors
Matching
Eliminate paper
Use data base
High cost
Labor
intensity
Automate process Simplify steps
Receiving errors
Lack of
training
Training & audit
Automate validation
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Redesigned Process (Example)
4.5.3 Redesigned Process Map - PEOSH 1
Agency
Employer/
Employee
Compliance
Officer/ Examiner
Central
Office
Management
CRM
Payment
Processing
Upper
Management
Review
Referrals
Complaints/
Inquires
Schedule
Inspections
SH430
Support
High Priority
Cases
SH410
Referrals
DHSS Case
Extension
Requests
Prepare for
Inspections
SH440
DHSS
Conduct
Inspection
SH450
Plan Inspections
(Routine & Other)
SH420
Prepare
Reports
SH460
Follow-Up
Inspection
SH480
Review &
Approve
Penalty
SH500
Violations
1
DHSS Case
Close Case
Identify
Critical Areas
Prepare
Penalty OTC
SH490
Violations
Gain Approval
Review &
Approve
Cases
SH470
No
Violations
Work
Intake/
Complaints
SH400
Identify
Targeted Areas
Penalty
OTC
OTC
Violations
Abated
Approve General
Duty Citation
Approve
Penalty
Fatalities &
3 or more injuries
Commission
Superior Court/
OAL
5/9/12
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Redesigned Process
Process Profile (example)
SH50 Process Payment
OBJECTIVE: Provide support for the deposit transmittal of funds from the General Funds to the
correct Business Account.
DESCRIPTION
•Receive all Checks or Internet Payments with Payment Stub containing identifying information for:
* Permits, Licenses, Certificates, Registration
* Inspection Fees from Insurance Companies
* Penalties
* Public Record Information
• Create a transmittal to accounting and deposit payment within 24 hours of
receipt into a General Fund
• Upon notification create a transmittal to move payments from the General Fund into the correct
Business Account.
• Create an invoice for Boiler Inspection Fees owed to NJDOL from Insurance Companies
PERFORMER: Payment Processing
STAKEHOLDERS/CUSTOMERS: Payment Processing, Accounting, Insurance Companies
TRIGGER: Payment Receipt
5/9/12
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Redesigned Process
Process Profile (example) contd.
INPUT:
Checks, Internet Payment
Payment Stub
Insurance Company Inspections
INPUTS from:
Employer, Employee
Employer, Employee
Insurance Company
OUTPUT:
Deposit Transaction
Invoice for Inspection Fees
OUTPUT to:
Accounting
Insurance Company
DATA USED:
EMPLOYER
EMPLOYEE
VIOLATION
INSPECTION
PAYMENT
DOL ACCOUNT
INSURANCE COMPANY INVOICE
VOLUME/FREQUENCY:
# of Checks received Asbestos 200-350 a month
Boiler 2,000 a month
Mines 30 a month
5/9/12
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Documenting the Process
Process Profile (example) contd.
BUSINESS SYSTEMS MODULES:
Payment Processing
Document Management
Case Tracking/Workflow Management
POTENTIAL TECHNOLOGY:
Web
Document Management
RELATED PROCESSES:
To: SH40 Issue Permits, Licenses, and Certificates
QUALITY METRICS:
• % Checks deposited within 24 hours
BASELINE PROCESS REFERENCE:
12.4.1.5 Manage Collection of Fees
13.4.2.4 Manage Collection of Fees
14.4.2.7 Manage Collection of Fees
SIGNIFICANT CHANGES: (Will guide business rules)
• The most significant change in this area is the centralization of Payment Processing and the
implementation of Payment Stubs for all Fees and Penalties
• Tighter controls will ensure Checks are processed within 24 hours
• All payments will be made via Certified Check or Credit Card Payment on the internet. An interface to
the Accounting System will provide better control over transactions processed
5/9/12
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USER VIEW (Example)
Process:
Vendor
VENDOR
VEND
ID
VEND
NAME
PAYMENT
TERMS
INVOICE
VEND
ID
VEND
NUM
INVOICE
DATE
BANK
PAYMENT
ID
BANK
5/9/12
Pay
BANK
ID
CHECK
NUM
BANK
NAME
CHECK
DATE
INVOICE
AMOUNT
VEND
ID
CHECK
AMOUNT
LAST CHECK
NUM
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BSRA Methodology Overview
1. Plan the Project
Plan
2. Get Management
Input
4. Develop Top-Down
Process Model
5. Analyze Current
Processes
6. Define Data Needs
Analyze
7. Resolve Problems
Redesign
8. Redesign Processes
9. Finalize Data Model
10. Document Business
Rules
11. Prototype Processes
12. Incorporate Quality
Management
Plan Transition
13. Perform
Cost/Benefit/Risk Analysis
14. Develop Transition
Plan
5/9/12
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Prototype the Process
Sub-Tasks
8.1
8.2
8.3
8.4
Develop prototypes
Incorporate technology
Assess feasibility of redesign process
Determine skills required
8.5 Review with sponsor
5/9/12
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Prototyping
What to Expect
• Proof of concept
Prototyping
• Feedback for redesign refinement
• Insight into downstream activities
– Feasibility of process
– Skills that may be required
– Potential organizational effects
5/9/12
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When to Prototype
Drastic change
Political situation
Complex
New
processes technology
5/9/12
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BSRA Methodology Overview
1. Plan the Project
Plan
2. Get Management
Input
4. Develop Top-Down
Process Model
5. Analyze Current
Processes
6. Define Data Needs
Analyze
7. Resolve Problems
Redesign
8. Redesign Processes
9. Finalize Data Model
10. Document Business
Rules
11. Prototype Processes
12. Incorporate Quality
Management
Plan Transition
13. Perform
Cost/Benefit/Risk Analysis
14. Develop Transition
Plan
5/9/12
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Total Quality Management
TQM
Mission: Continuously improve the
ability to achieve the “quality”
objectives for products,
services, and resources
5/9/12
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Incorporate Quality Management
Tasks:
• Define deliverables for a core process
• Identify customers of each major process
(internal/external/ultimate)
• Define customers’ expectations and perception of quality
• Develop metrics for quality of each deliverable
• Develop metrics for internal quality objective.
• Incorporate metrics as part of process
• Incorporate additional entity/attributes
• Develop continuous improvement mechanism
• Refine process definitions/profiles
5/9/12
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Develop Metrics
Example
Process Metrics Template
Process
Customer
Receive
Shipment
Receiving,
Purchasing
Accounting
Metrics
Process Owner
Number of Vendor shipments
rejected:
-for quality
-incomplete shipment
-wrong shipment
Vendor
Number of validation errors
made by receiving
Pay
Vendor
Vendor
Receiving
Productivity of payments
- payments per staff member
- cycle time
Accounting
Number of late or incorrect
payments
5/9/12
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Refine Data Entities and Processes
Example
Data Entity Refinement Template
Data Entity
Requisition
Purchase Order
Receipt
Payment
5/9/12
Attribute
Stakeholder Satisfaction (M1)
Timeliness Indicatior(M2); Error Code (M3)
Shipment Rejection (M4); Receipt Validation (M5)
Payment Error Code (M6)
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Process Quality Management
Deming’s Solution
• Plan
• Do
• Check
• Act
5/9/12
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Quality Feedback Process
Quality
Standards
Modify
Implement
Output
Monitor and
report quality
5/9/12
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Continuous Improvement Mechanism
•Apply existing continuous improvement mechanism
•If Continuous Improvement mechanism does not exist in your
organization, use this project to implement it
•If a new effort is required, provide education and training
5/9/12
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BSRA Methodology Overview
1. Plan the Project
Plan
2. Get Management
Input
4. Develop Top-Down
Process Model
5. Analyze Current
Processes
6. Define Data Needs
Analyze
7. Resolve Problems
Redesign
8. Redesign Processes
9. Finalize Data Model
10. Document Business
Rules
11. Prototype Processes
12. Incorporate Quality
Management
Plan Transition
13. Perform
Cost/Benefit/Risk Analysis
14. Develop Transition
Plan
5/9/12
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Analyze Technology Requirements
• Assessment of hardware, software:
–
–
–
–
New decision/business rules
New internal and external users
New process locations
New organizational structures, procedures
• “What is required”?
• “Is existing technology sufficient?”
•
Is new technology necessary and mature?
•
Any technology required for QM?
5/9/12
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Organizational Readiness for
New Technology
•
•
•
•
•
•
5/9/12
Existing technological infrastructure
Sophistication of current users
Rate at which new technology can be absorbed
Ability to conform to new standards
Potential training effort
Potential support effort
– New roles
– Continuous updating of knowledge
– Continuous upgrading of skills
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Organizational Change Documentation
• Policies
• Procedures
• Responsibilities for redesigned processes
– Owner
– Performer
– Support
– Quality assurance
5/9/12
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Organizational Changes Needed
Example
•
Resource requirements
Relocation of 20 Full Time Equivalents from Accounting.
•
Organizational structure changes
None immediately; but may position Accounting for future
combining of roles.
•
Organizational responsibility changes (business rules)
- Receiving accepting shipments authorizes vendor payment, and
Accounting no longer does manual reconciliation and focuses more
on education and quality assurance for Receiving validation.
- Receiving employees are empowered to accept or reject shipments
and authorize payment.
- Vendor must comply to new “no invoice” and shipment policy.
5/9/12
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Developing a Transition Plan
Process redesign is not complete without a detailed
road map that shows how to get to the new environment
• Project Implementation Schedule (next steps)
• Tasks
•
•
Timing
Resources
• Organization Transition Plan
• New structures
•
•
New reporting relationships
Training
• Technical Transition
• H/W, S/W acquisition or development
•
5/9/12
Data Conversion
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Potential Problems
 Management acceptance and support
 Stakeholder buy-in
5/9/12
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How to get Buy-in
• Executive Management
– Define mission, goals, objectives, opportunities and their burning
issues
– 1 ½ hour Presentation
– Review Redesigned processes – related to their expectations
• Middle Management
–
–
–
–
Participate in Top down Process Model
Validate current environment documentation
Review Redesigned processes – related to their expectations
Assign priorities in the Transition Plan
• User Level
– 50% of the Team comes from the user side
– Data Analyst is continually involved
5/9/12
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Process Management Function
 Establish a charter
 Develop business reengineering and continuous
improvement methodology
 Build process management expertise
 Develop and implement Process Ownership program
 Standardize process documentation
 Initiate culture change initiatives
5/9/12
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How would you apply this to
your Data Management processes?
Who are the stakeholders?
What are the processes required to support their needs?
What data you would need support these processes?
What screens and reports users will need?
Who will build the system to support these needs?
What quality metrics you need?
How can you make your tools easy to use?
Who is the Process Owner for these processes?
5/9/12
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Lessons Learned
For Business System Project
1. Project team should be comprised of:
• The team must have 50% business analysts
• Core team members must be full-time for the duration
of the project
• Average Number 4 (minimum 2, maximum 6)
2. Scope the project so that:
• It takes no more than six months
• Ideal three months
• Average four months
3. You may select:
• One or multiple related processes which has single
executive or committee in charge
4.
5.
6.
7.
5/9/12
Prototype and validate feasibility of new concept
Do not ignore implementation risks
The output must include an implementable action plan
Use an experienced arbitrator and adviser if this is your first time
 Performance Development Corporation, 2002. All Rights Reserved.
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Process Reengineering - Success Factors
• Strong executive sponsor
• Appropriate scope
– Self-sufficient data requirements
– No more than four months for a given phase
• No a priori constraints
– Authority to question any business policy, procedure, or
standard
• Expand horizon to include external agents
• Revolutionary thinking – “out-of-the-box”, but
evolutionary implementation
5/9/12
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Business System Requirement Analysis (BSRA)
(Business Process Redesign)
Thank You
Presented by:
Arvind D. Shah, Managing Principal
Performance Development Corporation
Princeton, NJ 08540
(609)443-1226
[email protected]
www.perfdev.com
5/9/12
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