1.1. Organization and Management of the BPA
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1 Training Workshop on Business Process Analysis in International Trade Module 1: Preliminary stage. Preparation for the BPA Organization and Management of the BPA Somnuk Keretho, PhD Director, Institute of IT Innovation Kasetsart University, Bangkok Joint Workshop on Trade Facilitation and the Single Window September 2015, Moscow
2 Objectives of this session To understand the basic concept about what is a project? and how to manage a project? e.g. basic project management To understand the overall 3 main phases on how to conduct a BPA project. To understand basic roles & responsibilities of those who should involve in the BPA project. 2
3 What is a Project? Definition of a Project (* ISO/DIS 21500:2011 Standard) A project is a unique set of processes consisting of coordinated and controlled activities with start and finish dates, undertaken to achieve an objective. Achievement of the project objective requires deliverables conforming to specific requirements, including multiple constrains such as time, cost and resources. 3
4 What do we need to manage in a project? [Basic Project Management] Time Cost Tasks Resources Requirements Start Date Team & Stakeholders Collaboration Finish Date Deliverables Managing Risks & Issues 4
5 Project Management in general: 4 phases 1. Preliminary (Initiation) 2. Planning (Detailed Design) 3. Implementation 4. Closing 5
6 Project Management Example: Electronic Single Window for Swiss Border Control* BPA is conducted here. BPA is needed here. BPA is needed here. BPA is needed here. BPA is needed here. * EA PM Course in Cybernetic Approach to Project Management Bangkok Prof. Dr. Bogdan Lent (2015) 6
7 What is a BPA Project? A Business Process Analysis (BPA) is a project to understand, then capture and analyze business processes and their attributes such that improvement recommendations can be provided. Procedures and Documents required Who involved Some quantitative indicators Related Rules and Regulations BPA is an important and necessary analysis normally conducted before and during Single Window initiation, planning/design & implementation. 7
8 Why conducting a BPA Project? (Benefits of BPA) 8
9 Three (3) main phases to conduct a BPA Project 1. Defining Scope of and Planning a BPA Project 2. Capturing and Modelling the As-Is Process 3. Analyzing Findings of the BPA and Proposing Recommendations for Improvement (Proposing the To-Be Process) Ref: Business Process Analysis Guide to Simplify Trade Procedures, Updated 2012, UNESCAP/UNECE. 9
10 3 Phases (6 steps) & Deliverables of a BPA Project Phase I Phase II Phase III Step Step 1: Define project scope Step 2: Develop a detailed plan and secure resources Step 3: Acquire background information Step4: Conduct interview and document captured data Step 5: Analyze the as-is processes and identify bottlenecks Step 6: Develop and propose recommendations Deliverable Use case diagram illustrating business domain, process areas, process participants, and key business processes Detailed project plan including an estimation of human resources required, schedules, and software supported tools A list of potential interviewees and their contact information A folder of background information about the business processes under the investigation A list of guiding questions for the interview A set of activity diagrams illustrating activities that come in a specific order and decision points, actors who perform those activities, defined inputs and outputs of each activity, criteria for entering and exiting the business process, relationships among actors, and information flow A set of business process descriptions that describes activity diagram and lists all related rules and regulations Activity diagram illustrating integrated processes in the business domain Time-Procedure chart displaying time required to complete each business process A set of observations of the as-is business processes that have the potential for improvement Final report with recommendations which may include diagrams of to-be business processes 10
11 Several roles & responsibilities are needed for conducting a BPA project plan. BPA core team Stakeholders Project Sponsor (PS): an authorized person(s)/organizations (who has the authority) who can grant the necessary resources and takes the ownership of the deliverables of the BPA project, e.g. by escalating it for actual implementation. Project Manager (PM): A person who is assigned to manage the BPA project, e.g. planning, staffing and controlling this BPA project. Process Analysts (PA): A person(s) who collects data related to the processes, documents/models those processes, identify bottlenecks, and propose improvement recommendations. Domain Experts (DE) - Stakeholder Organizations: Those who are knowledgeable about some specific processes, documentation requirements, practices and laws/regulations related to the scope of the BPA project providing information, verify and validate the findings as captured and proposed by PA. 11
12 Activities for Planning a BPA Project Project Manager/ Project Leader Use Case Diagram Identify tasks and their sequence Process Analysts Project Sponsor Project Manager/ Project Leader 1.2) Develop a detailed plan and secure resources Project Sponsor Estimate efforts Develop project schedule Process Analysts Objective To develop a detailed work plan that helps guide and manage the implementation of a BPA project (WBS Work Breakdown Structure Approach for planning by breaking the works down into several tasks, and several work products (deliverables). Assign process analysts Derive the detailed plan Project Detailed Plan Unacceptable Review and provide feedback Acceptable Unacceptable Review and provide feedback Approve Acceptable 12
13 Project Project An example: a BPA Project Plan Start Date End Date Month 1 Month 2 Month 3 Month 4 WBS 1 Refine the scope of the project - Develop the detailed plan Several iterations of verification & validation (refinement) WBS 2 Collect information - Capture & Document the process WBS 3 Analyze and identify bottlenecks - Provide recommendation for improvement WBS 4 Wrap-up & submit the final report WBS 5 Administrative/Project Tracking Work-Monthly progress report 13
14 Identifying BPA Project Tasks Develop a work breakdown structure for a BPA project A work breakdown structure is an output-oriented description of project tasks. It typically starts with outputs. The work components of outputs are then broken down into tasks necessary to achieve them. Ref: Business Process Analysis Guide to Simplify Trade Procedures, Updated 2012, UNESCAP/UNECE. 14
15 Identifying BPA Project Tasks Use the Business Process Analysis Guide to Capture and Simplify Trade Procedures, as an input for identifying BPA tasks for each output Activity and Activity for the modeling of activity diagrams describing core business processes represented by use cases in the use case diagram Activity for the development of process description for all activity diagrams Activity for the development of an integrated activity diagram Activity for the development of timeprocedure chart Activity for the consolidation and submission of output no. 1 4 to project sponsor for perusal Activity for the identification of bottlenecks Activity for the development of recommendations and/or new business processes 15
16 Small activities may be grouped into one prior to the estimation of efforts for a BPA project. The number of key business processes and stakeholders involved in each business process must be taken into account when estimate time required for elaborating them into activity diagrams. 16
17 Use Case Diagram as an Input for Estimating Time Required to Complete Tasks to Product Output 1 and 2 Source: Case Study Thailand s Export of Frozen Shrimp 17
18 Estimating Efforts for a BPA Project Task Estimate = (PERT*) Optimistic Time + (4 * Most Likely Time) + Pessimistic Time 6 Task/Activity (Shrimp Case) Predecessor Optimistic Time (day) Most-Likely Time (day) Pessimistic Time (day) Estimated Time (day) A None A A A 4.3 A A 4.4 A , A A 4.5 A A 4.6 A A 4.7 A A 4.8 A A 4.9 A A 4.10 A A 4.11 A A 4.12 A A 4.13 A 4.11, A A 4.14 A 4.11, A A 4.15 A 4.7, A 4.10, A A 4.16 A * Project Evaluation and Review Technique 18
19 Developing Project Schedule Task/Activity (Shrimp Case) Predecessor Estimated Time (day) Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 M T W T F M T W T F M T W T F M T W T F M T W T F M T W T F M T W T F A None 7.83 A A A 4.3 A A 4.4 A , A A 4.5 A A 4.6 A A 4.7 A A 4.8 A A 4.9 A A 4.10 A A 4.11 A A 4.12 A A 4.13 A 4.11, A A 4.14 A 4.11, A A 4.15 A 4.7, A 4.10, A A 4.16 A
20 Managing risks Identifying risks that could make some delay or some damages to the project (anything affecting badly on quality, time, and cost of the project). Analyzing the possible likelihood of occurrence (1-5) and its negative impact (1-10) for each risk (if that risk occurs). Mitigating those risks with the high value of likelihood multiplying with its impacts (say, more than 20) --> mitigation actions and plans for those risks should be developed. 20
21 Skills needed for Process Analysts Technology skills: The basic knowledge of UML notations, especially in use case diagrams and activity diagrams is desirable. Related work experience is complementary. Business/ organization skills: It is important that the selected process analysts know or have an access to the individuals of the business domain under investigation. It is also very useful if they have knowledge of a particular organization or industry associated with the targeted business domain. Interpersonal/ communication skills: Process analysts ability to effectively communicate and interact with other project members is mostly crucial to project success. They should have the ability to create and sustain reasonably good relationships with project stakeholders and especially Process Participants/Business Domain Experts. Analytical skills: Process analysts should be able to capture relevant information from verbal expression and written documents, and then formalize them in various types of BPA output. 21
22 Practical Exercise 1 Preparation for the BPA Project Breaking out into small groups by countries, and in each group please perform the following tasks: [Suppose that each group is an initial core team to initiate and will actively involve in conducting a BPA project, as part of the Single Window initiative for international trade improvement in the country) 1. Discuss and propose the stakeholders/institutions who should be the authorized sponsor to officially create/endorse the BPA project, and take the ownership of the deliverables/outputs of the BPA project to escalate/push them further for actual implementation/realization. 2. Discuss and propose names/candidates of the BPA core team: Project Sponsor (SM): Project Manager (PM): Process Analysis (PA): 3. Identify organizations both governments and business entities which should involve as the stakeholders (and provide/identify domain experts) 4. Identify main stages (phases/steps) for implementing the BPA project. 5. Discuss role of each participant on each stage of the project. 6. (if time permitted) Identify one significant risk in this project and how to mitigate its impact and/or its likelihood of occurrence. 22
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