Business Process Management Software Enabling Process Quality
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1 ASQ Presentation, June 11, Business Process Management Software Enabling Process Quality
2 Agenda 1. What is Business Process Management (BPM) software 2. Uses in process engineering and management 3. Uses in breaking cultural barriers to Quality 4. Uses in implementing and managing Quality programs 5. Use in removing functional silos 6. The BPM value proposition 7. BPM demonstration - HandySoft
3 BPM Overview Automates soft processes into a Web based application Process centric application rather than application centric process Stimulates, monitors, reports upon process user behavior Turns paper into data Gathers process data, X and Y
4 BPM Overview What it Does A workflow in which the suppliers, inputs, outputs, and customers of each activity are defined Resources, metrics, variables defined for each activity Flow charting capabilities real time living process documentation Enables document control Integrates functionally centric applications
5 Provides basic management reporting Single console for management of key processes * Simple to Use Flow chart the process Integrate forms and controls Assign users and roles Assign metrics and deadlines Define process variables BPM Overview What it Does
6 An integral part of the Quality team toolkit BPM Overview Technical Role Import processes from MS project or simulation tools Import process maps and swim lanes from design tools Export volumes of meaningful process data to statistical analysis tools Durations Defects Users Customer Inputs Integrate customer satisfaction analysis measures and systems
7 BPM Benefits Forces people into the process, no other way Automates data collection Detects defects in soft processes Provides flexibility to change process as needed Provides much process documentation in living format Reduces learning curve Reduces implementation time Reduced cost of data collection Reduced cost of process implementation Reduced process management from Quality team Can be used to automate the iterative continuous improvement cycles Rapid deployment = earlier improvements = Profit
8 BPM Uses in Process/Quality Engineering Enables DMAIC Define: Flow charts, documents metrics, roles, users, inputs, outputs, systems Measure: Gathers data for measurements, simulates performance Analyze: Management reporting, open data for use by stats tools Improve: Rapid, effective deployment of to-be process Control: process data collection, special case detection, reporting, easier changes Automation of engineered processes Real time detection of special cases Inputs Users Missed dates Defect detection and analysis Real time Over time Process data collection MOPs Process Provides a user friendly way to roll out sophisticated process management Training Management buy-in Process enforcement Removal of cultural barriers
9 Process automation reduces training costs 6 Sigma training New process training BPM Uses in Breaking Barriers to Quality Process automation reduces complexity for process owners and users Automated data collection Does the math No need to know Six Sigma terms Allows process users to focus on their steps in the process Process automation removes the need to coax people into the new process It is the only way to perform the process Process automation allows you to rollout a new process under the label of an IT project tha makes life easier Implementation Barriers BPM Impact General lack of understanding Resistance to change Afraid of math Afraid of 6 Sigma terms Don t see the value Process drill will eventually go away Problem is out of our hands Doubts over collaboration of others Don t have analytical skills No way to enforce new behavior Less need to understand, process is automated Provides the only way to get the job done Does the math for them Only the process creators need to know the terms Reduces need for them to see the value and will make their jobs easier Visible commitment to IS solution reinforces commitment to quality efforts Systems will show where the problems reside Collaboration is enforced when process is brought to life via IS Helps this problem with easy reporting, but process owners must analyze and take responsibility for quality. Provides the only way to get the job done
10 BPM Uses in Implementing and Managing Quality Programs Selecting projects and project teams Storing and managing quality tools and templates Ensuring some degree of consistency in the approach to process management Determining and measuring quality project metrics Gathering the data needed to analyze and improve the Quality team Six Sigma
11 BPM Uses in Removing Functional Silos One of the biggest problems in most organizations Functional silos Self optimizing Wall building Little perspective on the end-to-end process Blame other departments Build function specific rather than process centric applications No clear accountability for process Quality BPM does three things to help remove functional silos 1. The nature of BPM (automation of the paper flow) drives definition and management of the process from end-to-end, i.e. customer order warranty measurable end-to-end process 2. BPM tools act as an integration platform riding atop functional applications measurable end-to-end process 3. BPM tools create an audit trail exposing where the delays in a process truly reside
12 Reduces learning curve Reduces implementation time Reduces ongoing process documentation costs Rapid deployment = earlier improvements = Profit Reduced cost of data collection Reduced cost of process implementation Reduced process management from Quality team BPM Value $ Proposition Current Cost Improvement Savings Per Process Savings Re-engineering Cost $ 100,000 50% $ 50,000 Defects (waste, cust sat.) $ 300,000 75% $ 225,000 Reduced re-work $ 25,000 75% $ 18,750 Cycle Time (more with same) $ 500,000 25% $ 125,000 $ 418,750 Corporate Savings Possible Customer Retention Costs $ 100,000 25% $ 25,000 Increasing Market Share $ 400,000 25% $ 100,000 Reduced Quality Dept Costs $ 300,000 50% $ 150,000 $ 275,000 A theoretical process with $500,000 in planned direct costs, 300,000 in defect related costs, and $25,000 in labor to perform rework
13 BPM Demonstration 6STG has chosen HandySoft BizFlow as our BPM platform of choice Easy to use Browser based Corporate commitment to Six Sigma
14 Thank You Greg Sieber:
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