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Project Management
inBusiness Process Management
A non-IT perspective
Chuck Bast, PMP NPDP
Laser Cartridge R&D
Printing Solutions & Services Division
Lexmark International, Inc.
PMI Bluegrass Chapter
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C. Bast 09/18/2008 Maximizing the Return of Your Output Technology Investment2
Agenda
• Background & Definitions
• BPM Approach
• Process Architecture
• Process Mapping
• LEAN
• Challenges
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C. Bast 09/18/2008 Maximizing the Return of Your Output Technology Investment3
Best Practices
• “Best Practices” are situational
• “Know Why”; not just “Know How”
• PMBOK (Chapter 1, Paragraph 1.1)
It’s purpose is to identify “good practice”
It should not be applied uniformly on all projects
It is the responsibility of the project management team to determinewhat is appropriate for any given project.
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What is a Process?
ACTIVITIES OUTPUTS INPUTS
• A set of interrelated actions and activities performed to achieve a specifiedset of products, results, or services. (Project Management Institute)
• Set of interrelated or interacting activities which transforms inputs into
outputs (ISO 9000:2005)• A set of interrelated work activities characterized by a set of specific inputs
and value added tasks that make up a procedure for a set of specificoutputs. (American Society for Quality)
• A series of interrelated activities that convert inputs into results (outputs) …
(American Productivity & Quality Council)
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What is Business Process Management?
• Business Process
Any set of activities performed by a business that is initiated by an
event, transforms information, materials or business commitments, andproduces an output.
Source:
- Executive Editor and Founder
• Business Process Management
1. We use business process management to refer to aligning processes with
the organization's strategic goals, designing and implementing processarchitectures, establishing process measurement systems that align with
organizational goals, and educating and organizing managers so that theywill manage processes effectively.
2. We occasionally use Business Process Management or BPM to refer tovarious automation efforts, including workflow systems, XML Business
Process languages, and packaged ERP systems.
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PMI Definitions:
• Project - A temporary endeavor undertaken tocreate a unique product, service, or result.
• Process - A set of interrelated actions andactivities performed to achieve a specified set
of products, results, or services.
Is a Project a Process?
A PROJECT IS A PROCESS!
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Projects VS Operational Processes
“Organizations perform work to achieve a set of objectives. Generally,work can be categorized as either projects or operations, although thetwo sometimes overlap .…… Projects and operations differ primarily in
that operations are ongoing and repetitive, while projects are temporaryand unique.” (PMI PMBOK Guide, 3rd Edition, page 6)
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Word Association Game
TEMPORARY &UNIQUE
ONGOING &REPETITIVE
Predictable Unpredictable
Routine Innovative
Automated Manual
Effective Efficient
Stability Change
Rigid Flexible
Heuristic Based Data Driven
Radical Improvement Continuous Improvement Control Empowerment
Science Art
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Business Process Management Organizations
• Business Process Trends
www.bptrends.com
• Business Process Management Institute
www.bpminstitute.org
• Object Management Group/ Business Process Mgmt Initiative
http://www.omg.org
• Association of Business Process Management Professionals
www.abpmp.affiniscape.com
• International Association of Business Process Management
www.iabpm.org
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Structure of BPM Body of Knowledge
Source: www.iabpm.org
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Burlton’s BPM Approach
BusinessContext
Architect &Align
Vision for Change
UnderstandExisting Processes
RenewProcess Design
Develop Enablers& Support
Implement Change
Nurture &Continuously Improve
Business ProcessManagement
1st editionby
Roger T. Burlton2001
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Harmon’s Approach
Corporate Strategic Planning
Plan Redesign Effort
Analysis of anExisting Process
Design ofNew Process
Develop Resources
Transition toNew Process
Business ProcessChange
1st editionby
Paul Harmon2002
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BPM Approach by Jeston & Nelis
Implement
Develop Organizational
Strategy
Process Architecture
Understand Existing Processes
Innovate
People Sustain Performance
Realize Value Launch Pad
Business ProcessManagement
1st editionby
John Jeston and Johan Nelis2006
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Six Sigma
A method that provides organizations tools to improve the capability oftheir business processes. This increase in performance and decrease inprocess variation lead to defect reduction and improvement in profits,employee morale and quality of products or services. Six Sigma quality is
a term generally used to indicate a process is well controlled, ±6 fromthe centerline in a control chart. (American Society for Quality)
D efine M easure Analyze I mprove C ontrol
D efine M easure Analyze D esign V erify
DMAIC
DMADV
aka Design for Six Sigma
I mprove C ontrol
D efine M easure Analyze D esign V erify
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D efine
M easure
Analyze
I mprove C ontrol
D esign V erify
Six Sigma in Business Process Management
STRATEGIZE
• Develop Strategy
• Develop Architecture
DESIGN
• Initiate Project
• Analyze Existing Process• Design New Process
IMPLEMENT
• Prepare People
• Develop Resources• Transition to New Process
CONTROL
• Realize Benefits
• Continuously Improve
DMADV
DMAIC
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Amount of Process Change
Reengineering Redesign ContinuousImprovement
RADICAL Process Change MINOR
Six Sigma
Kaikaku Kaizen
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Reengineering
Reengineering The Corporation by
Michael Hammer &
James Champy1993, 2003
“Reengineering is the fundamental rethinking and radical
redesign of business processes to achieve dramaticimprovements…..”
“Reengineering is not restructuring or downsizing …
downsizing and restructuring only mean doing less withless. Reengineering, by contrast, means doing morewith less.”
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STRATEGIZE
• Develop Strategy
• Develop Architecture
DESIGN
• Initiate Project
• Analyze Existing Process• Design New Process
IMPLEMENT
• Prepare People
• Develop Resources• Transition to New Process
CONTROL
• Realize Benefits
• Continuously Improve
Strategy
“A strategy is an internally consistent configuration of activities that
distinguishes a firm from its rival.”
“The value chain disaggregates a firm into its strategically relevantactivities…… The value chain displays total value, and consists ofvalue activities and margin. Value activities are the physically and
technologically distinct activities a firm performs….Value activitiescan be divided into two broad types, primary activities and supportactivities”
Competitive Strategy,Competitive Advantage
byMichael E. Porter
1980, 1998 1985, 1998
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Architecture
Improving Performance “How to manage the white
space on the organization chart” By
Geary Rummler & Alan Brache
1995
CEO
Function 1 Function 2 Function 3
Process
Function 1
Function 2
Function 3
Activity
Activity
Activity
Activity
?
Activity
Activity
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Rummler’s Processing System
Customers
Guiding Processes
Suppliers Enabling Processes
Supply Chain Process
Customer Relationship Process
Source:PerformanceDesign LabProduct Development Process
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APQC’s Process Classification Framework
GuidingProcesses
ProductDevelopment
Process
Customer RelationshipProcess
EnablingProcesses
Supply
Chain
Process
Source:
AmericanProductivity &Quality Center
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Enable Business Processes
Suppliers
ValueCollaboration
CRM
SupplyNetwork
Dev.
Business Mission & Strategy
Corporate Governance
Core Business Processes
ProcessMang.
ProcessMang.
ProcessMang.
ProcessMang.
ProcessMang.
ProcessMang.
ProcessMang.
ProcessMang.
ProcessMang.
Market Research Develop Acquire Build Fulfill Brand Sell Support
Manage Information
Develop Technology
Manage Human ResourceManage Finance & Accounting
Manage Quality & Business Excellence
Manage Safety, Health & Environment
Customers
ValueCollaboration
SRM
SupplyNetworkDev.
The Enterprise Characterized by the Value Reference Model
Customer RelationshipProcess
Supply Chain Process
Product Development Process
GuidingProcesses
Suppliers
Customers
EnablingProcesses
Source: Value Chain Group Inc.
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STRATEGIZE
• Develop Strategy
• Develop Architecture
DESIGN
• Initiate Project
• Analyze Existing Process• Design New Process
IMPLEMENT
• Prepare People
• Develop Resources• Transition to New Process
CONTROL
• Realize Benefits
• Continuously Improve
Process Improvement / Change
Leading Changeby
John P. Kotter1996
1. Establish a Sense of Urgency
2. Create the Guiding Coalition
3. Develop a Vision and Strategy
4. Communicate the Change Vision
5. Empower Broad-Based Action
6. Generate Short-Term Wins
7. Consolidate Gains and Produce More
Change 8. Anchor New Approaches in the Culture
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Process Maps
Act as a communication tool
How the work gets done
Who does the work
What the critical interfaces are
What systems are used
Where the metrics and controls are
Uncover improvement opportunities
Disconnects
Waste
Activity sequencing
Resource imbalance
Activity #2
Time
Activity #4Time
Activity #3
Time
Activity #1Time Activity #5
Time
Start
?
End
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Common Issues with Process Maps
“Chain Gang” “Cute but Useless”
C B t 09/18/2008 M i i i th R t f Y O t t T h l I t t28
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Modeling Standard by the Object Modeling Group
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SIPOC / IGOE
CUST
UMER
S
SUPP
LIER
S
PRO
CESS
INPUTS OUTPUTS
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Guiding Processes
Source: BPTrends, E-mail Advisor 02/27/2007
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The Machine that
Changed the World by
James P. Womack,
Daniel T. Jones& Daniel Roos
1990, 2007
LEAN
• LEAN is modeled after Toyota
• Is called LEAN because “it uses less ofeverything compared with mass production”
• Five Principles
1. Specify value from the standpoint of the customer
2. Identify all the steps in the value stream and eliminate
those that don’t add value but only add waste (muda)
3. Make the remaining steps flow instead of batch andqueue.
4. Let the customer pull value from the upstream activity
5. Pursue perfection through continuous improvement(kaizen)
Lean Thinkingby
James P. Womack &
Daniel T. Jones1996, 2003
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Challenges of Business Process Management
• The field is rapidly evolving, both in knowledge & technology
• There are many different efforts or methodologies for
process improvement• Politics within the organization can be destructive
• A broad skill set is needed to prevent pieces of the business
from being optimized at the expense of the whole business• Must correctly address temporary & unique processes VS
ongoing & repetitive processes
• Change is difficult to implemented• Modern businesses are complicated
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g p gy
Burlton Elegance Model
Source: Roger T. Burlton, Process Renewal Group
Understanding
Detail
Little
Little
Lots
Lots
Naive Elegant
Incomprehensible Complex
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Example of Elegance Model
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