Project Management in BPM

8/9/2019 Project Management in BPM

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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



C. Bast 09/18/2008 Maximizing the Return of Your Output Technology Investment2

Agenda

• Background & Definitions

• BPM Approach

• Process Architecture

• Process Mapping

• LEAN

• Challenges




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.




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)




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.




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!




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)




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




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




Structure of BPM Body of Knowledge

Source: www.iabpm.org




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




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




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








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




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




Amount of Process Change

Reengineering Redesign ContinuousImprovement

RADICAL Process Change MINOR

Six Sigma

Kaikaku Kaizen




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.”




STRATEGIZE



DESIGN



IMPLEMENT

• Prepare People


CONTROL



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




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




Rummler’s Processing System

Customers

Guiding Processes

Suppliers Enabling Processes

Supply Chain Process

Customer Relationship Process

Source:PerformanceDesign LabProduct Development Process




APQC’s Process Classification Framework

GuidingProcesses

ProductDevelopment

Process

Customer RelationshipProcess

EnablingProcesses

Supply

Chain

Process

Source:

AmericanProductivity &Quality Center




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.




STRATEGIZE



DESIGN



IMPLEMENT

• Prepare People


CONTROL



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




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




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




Modeling Standard by the Object Modeling Group

C Bast 09/18/2008 Maximizing the Return of Your Output Technology Investment29




SIPOC / IGOE

CUST

UMER

S

SUPP

LIER

S

PRO

CESS

INPUTS OUTPUTS





Guiding Processes

Source: BPTrends, E-mail Advisor 02/27/2007





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





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




g p gy

Burlton Elegance Model

Source: Roger T. Burlton, Process Renewal Group

Understanding

Detail

Little

Little

Lots

Lots

Naive Elegant

Incomprehensible Complex




Example of Elegance Model

Project Management in BPM

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