Methods for analyzing and optimizing business processes. Simple ways to optimize business processes Optimize business processes as a way to reduce costs
Kovalev Sergey Mikhailovich,Kovalev Valery Mikhailovich,(Magazine "Director's Consultant", No. 7 (234), April 2005)
The text of the article, broken down into parts, is presented in the following sections:
Part 1.
"Development of goals and indicators for optimizing business processes"
Analysis and optimization of business processes
In previous publications, the first stage of building and optimizing the activities of an enterprise was considered, "Developing a model" as is. " and the third stages: "Analysis of the model" as it is "and" Development of the model "as it should", but only in relation to business processes. Analysis of the existing and development of a new optimal organizational structure according to the classics of building an organization is the next step and will be considered further (see Fig. 1).
Figure 1. The main formula and classics of building and optimizing an organization
Technologies for analysis and optimization of business processes Determination of goals and criteria for optimization of business processes
After identifying priority business processes, you need to proceed to their detailed description, analysis and optimization. The practice of implementing such projects has shown that before carrying out a detailed description of business processes, it is necessary to formulate the main goals and criteria for their optimization. At this stage, this can be done using the results of express diagnostics of the company's activities, carried out to determine the degree of problematicity of business processes.
Priority planning of optimization objectives and criteria is necessary to increase the effectiveness of the process improvement project. Any project at the initial stage must have a clearly formulated and realistic goal.
Many companies implementing projects to improve business processes make a typical mistake: they start aimlessly describing business processes in the hope that after the development of detailed process diagrams, problems will be discovered, ways to solve them and, accordingly, goals and optimization criteria are formulated. The practice of implementing such projects has shown that this approach is ineffective, since aimless description of business processes often does not give any results and takes a lot of time and effort, which leads to further refusal to carry out such work.
Moreover, without initially formulating the goals and criteria for optimizing the process, it is impossible to choose the desired approach and description methodology, as well as a tool for analysis and improvement. At the same time, it is impossible to build a compact diagram of a business process that provides answers to the necessary questions.
Basic indicators, goals and criteria for optimizing business processes
So, before describing, analyzing and optimizing business processes, you need to formulate goals and criteria for their optimization. The goals and criteria for optimizing business processes are based on key process indicators that determine the effectiveness and competitiveness of an organization. In our book, these indicators are grouped and presented in the form of five groups:
indicators Effectiveness business process - R $
indicators Cost business process - C $
indicators Time business process - t
indicators Qualities business process - Q
indicators Fragmentation business process - FRAG
This article talks about 7 simple techniques that can be applied to optimize both business processes in general and sub-processes and operations.
These techniques are not "know-how", but have long been actively used all over the world. The purpose of this article is to compile a simple and short "cheat sheet" describing the basic optimization techniques.
Technique # 1 - Moving the IFR (ideal end result) out of the process.
When optimizing any business processes, a clear description of the IFR is required. As the sophisticated reader guessed, this is the first step from the inventive problem solving algorithm created by the TRIZ developers. What would seem to be easier than the formation of an IFR in the design of a business process? But human consciousness plays a cruel joke with him, concluding the search for IFRs exclusively within the framework of the process itself.
Example 1
The Moscow-based company manufactures products that are used by customers throughout the CIS. The company has a logistics center that delivers goods to the client with its own trucks. Recently, the cost of maintaining a logistics center began to increase. Those. delivery of products to customers in the same way becomes problematic. The wrong way to determine the RBI will look like this: "Reduce delivery costs by our logistics center by 10%" In this case, a number of not bad solutions can be found:
a) change trucks to more advanced ones that require less repair and maintenance costs
b) use cheaper fuel
c) negotiate with customers in order to convince them to pay more for delivery, etc.
But at the same time, the author of the optimization of the process closes for himself all the other resources of this situation. What opportunities are overlooked? To answer this question, let's form the IFR in a different way, namely on the basis of the understanding that the meaning of the business process should go beyond itself. Those. the meaning of the work of the logistics center is not in the work of the logistics center itself, not in the fact that the movers put the company's product on the truck, and the driver took it to the client, but in helping the implementation of a more global business process, namely the sale of the company's products through delivery goods to the company's customers. Therefore, in this case, the IQR, in my opinion, will sound better formulated as follows: "To make the receipt of the company's product by customers no more than N rubles per V km." Thus, when searching for solutions to this problem, consciousness no longer closes itself only within the framework of the work of the logistics center, but at the same time does not exclude the possibility of its use, and we add to the already obtained possible solutions those that in the first case could not have come due to a narrower areas of search for solutions:
d) outsourcing delivery
e) the possibility of discounts for customers who pick up products on their own
f) opening of production in the regions of presence of large clients, etc.
How to use the trick?
Form an IFR that could be achieved not only through the implementation of the process, but also in all available ways, as it was in the example.
Technique # 2 - Excluding unnecessary steps from the process.
When implementing this technique, it is necessary to consider the purpose of each step of the process, to ask the question whether it is possible to exclude any steps or to combine them.
Example 2
In the Technosila company, when hiring a seller for work, he had to go through the following stages:
- Phone interview with HR manager
- Face-to-face interview with the HR manager at the central office
- Interview with the store director
- Bring the documents necessary for employment to the central office
And only after passing all these stages he could start working in the store of his choice.
The tasks of the HR manager are to prevent random people from getting an interview with the store director, such as those who are not appropriate in age, education and place of residence, etc. the role of the HR manager is a kind of filter, and the decision on hiring is made by the store director. After analyzing the tasks of these stages, the management came to the conclusion that stages 2 and 4 are unnecessary because it is possible to weed out a candidate who does not meet the basic requirements during a telephone interview. The fourth stage, namely the registration of the employee, was transferred directly to the supermarket where the future employee will work.
How to use the trick?
- Are there stages that duplicate each other, can one of them be removed?
- Are all the stages of the process necessary for the main purpose of the process, if there are such steps that can be dispensed with?
Reception number 3 - changing the sequence of stages of the process execution
Example 3
In his book "How to put things in order in your business" Mikhail Rybakov describes an interesting example of the procedure for granting a loan at a bank. The sequence of the described actions is such that first the bank manager prepares all the documents and only when 90% of the work is completed, a request is sent to the security service. If the security service does not approve the issuance of a loan, 90% of the work turns out to be wasted man-hours, depreciation of equipment and other consumables, plus lost profit. It is clear that each business has its own risks, but the task of the leader seeks to reduce them in every possible way, and in this case it is extremely easy to do it. To do this, you just need to check a potential client by the security service to make one of the first steps in the procedure for applying for a loan, this will allow you not to make unnecessary operations in case of refusal.
How to use the trick?
Analyze the business process outlined in steps, through questions.
Which of the steps in the process are most critical to the successful completion of the process?
Can these steps be moved closer to the beginning of the process?
Technique number 4 - Crushing operations
I.L. Vikentiev at seminars repeatedly repeats that the more perfect business processes are, the less requirements they impose on the qualifications of employees. The essence of this technique consists precisely in such a fragmentation of processes and operations, which leads to a simplification of the process as a whole. In fact, this is the conveyor principle of operation, which has been known since ancient times. One of the most brilliant examples of how such a principle can improve productivity is the case described by Adam Smith.
Example 4.
An English artisan of the 17th century maintained a workshop that produced pins. Each apprentice guided the pin production process from start to finish. Due to the economic crisis, the owner was unable to pay for the work of qualified employees in his workshop, so their cooperation was terminated (he fired them). As a result, it was decided to divide the production of pins into small, sequential operations. Each of these operations could be mastered by any unprepared person, or rather, they recruited boys from the street 15-16 years old. Thanks to this move, not only did labor costs decrease, but production increased by more than 200 times! If earlier the workshop produced about 80 pins per day using the labor of skilled craftsmen, now the workshop produced 48,000 pins through the efforts of apprentices.
How to use the trick?
What operations in the process require the most qualifications of the performer?
Can these operations be divided into simpler operations so that the requirements for the performer would be reduced?
Reception number 5 - Taking operations outside the main process
Often in complex processes, saturated with operations, the same performer performs all the operations, which significantly delays the process, and also significantly reduces its quality. Because as we know the masters of generalists are very rare. We can be convinced of this by looking into a rural auto repair shop, where the same employee is engaged in the repair of the "chassis" and, if necessary, he will undertake the repair of the carburetor, which is difficult to imagine in any professionally equipped workshop.
Example 5
In the furniture holding Stolplit, initially sellers were engaged in credit processing. In this regard, a lot of difficulties arose in the work of retail outlets:
- Firstly, the process of registration itself was much delayed, i.e. I have already said that you cannot be a pro in everything, both in sales and in the execution of bank documentation.
- secondly, for obvious reasons, the total number of clients served decreased when issuing loans, i.e. turnover was falling
- in the third, sellers often made mistakes when preparing loan documents, which again reduced the number of loans issued, etc. etc.
In the described situation, it is clearly seen that the registration of a loan is the anchor that slows down the sales process in retail outlets, but should, on the contrary, stimulate it. Because it is absolutely clear that today not a single point is complete without the provision of a credit sale service. On the face of a clear contradiction, the service of selling on credit should be present at the point of sale, but at the same time it should not draw on resources.
The solution was simple: a remote credit processing center (UTSOK) was created, which worked with all banks as Stolplit partners. The seller's task was only to make a photocopy of the passport and send it to the UTSOK to indicate the type, amount and term of the loan.
How to use the trick?
Analyze the steps of the prescribed business process through questions
What are the most energy-intensive operations in this process?
Can these operations be entrusted to other performers without prejudice to the process? Moreover, it is important to understand that operations can be entrusted not only by an employee of their company, but also outsourced.
Reception number 6 - Combining the operation in time and (or) space
Example 6
Combining mining and production. The production of canned fish is often located directly on the fishing vessels. In the places where minerals are extracted, their processing is often organized.
Example 7
In a beauty salon, several masters can work with a client at the same time.
How to use the trick?
Analyze a step-by-step business process by asking:
If in this process the operations that would be more expedient to combine in time and (or) space?
Reception number 7 - Automation, transfer of the execution of part or all functions to the machine
This technique is used in a situation where a technical device can completely take over all operations for the implementation of the process, and a person periodically maintains the device.
Example 8
The first vending machines to replace the seller appeared in the United States in the 1880s.
In 1946, the first coffee machines appeared, replacing not only the seller, but also the bartender, because not only sold, but made coffee from whole roasted beans.
How to use the trick?
Analyze the business process outlined in steps, by means of questions:
If at the moment there are technical devices (machines, programs) that can perform operations present in the process without loss of quality.
List of sources:
- E-book “Introduction to TRIZ. Basic concepts and approaches "v. 3.0
- Creative method: "Ideal final result (IFR)"
- Rybakov M.Yu. “How to put things in order in your business. Workshop "Icarus 2011
- Oleg Bezrukov "Is it possible to increase labor productivity by 10,000% within a year?"
Denis Bondarenko, business coach.
Original Russian Text © D.A. Bondarenko, 2012© Published with the kind permission of the author
Business process optimization methods.
First, you need to understand for yourself what goal we are pursuing, intending to optimize or reengineer one or another business process?
In other words, first you need to set a specific task, otherwise the optimization will not bring any effect.
Let's consider, in short, the main methods used to optimize business processes:
1.SWOT analysis (analysis of strengths and weaknesses business process)
SWOT analysis is a strategic planning method used to assess factors and phenomena that affect a project or enterprise. All factors fall into four categories: strengths, weaknesses, opportunities, and threats.
The principle of the method is to search and elimination / enhancement weaknesses and minimizing potential risks and threats.
2. Method of cause-effect (Ishikawa diagram - Cause and Effect Diagram)
Ishikawa diagram - the so-called. Fishbone Diagram or Cause and Effect Diagram, and also as a Root Cause Analysis diagram.
One of the seven main tools for measuring, evaluating, controlling and improving the quality of production processes included in the "seven quality control tools":
Control card;
Pareto chart;
Bar graph;
Checklist;
Ishikawa diagram;
Stratification (stratification);
Scatter plot.
Such a diagram allows you to identify the key relationships between various factors and more accurately understand the process under study. The diagram helps to determine the main factors that have the most significant influence on the development of the problem under consideration, as well as to prevent or eliminate the action of these factors.
3. Benchmarking
The method of analyzing the superiority and assessing the competitive advantages of partners and competitors of the same type or related industry in order to study and use all the most productive. A bit like industrial espionage, however, the difference is that this method is carried out using superficial observations.
4. Analysis and optimization of business processes based on indicators (KPI)
Key performance analysis method. The principle of setting ultimate goals for the project, with the achievement of which the "bar" is raised, or. if the goals cannot be achieved, the means of achieving or the goals themselves are revised.
5. Brainstorming
The method in which the solution of the problem is discussed and all possible ways are put forward, on the basis of this, the most effective is selected with the terms of reference. discussion participants
6. Techniques Lean, "6 Sigma"
A method for identifying productivity gains by reducing defects in the manufacturing process
7. Calculation and modification of the fragmentation of the process
The method of reducing or increasing the constituent parts of a business process
8. Analysis of the business logic of the process
elimination of ineffective procedures
distribution of responsibility for the implementation of business processes and delegation of decision-making authority
linking parallel jobs
fixing information at the source and including information processing in real work
9. Method of functional cost analysis (FSA-analysis)
The principle of the analysis is to achieve the maximum functionality of the object with minimal costs, both for the seller and the buyer.
10. Method of simulation (dynamic) BP modeling
A technique that makes it possible to represent human actions and the application of technologies used in the studied reengineering processes within the framework of a dynamic computer model. Simulation involves the implementation of four main stages:
1) building a model,
2) launching the model,
3) analysis of the obtained performance indicators,
4) assessment of alternative scenarios.
A very effective method, provided all the necessary quantities to build the model are up-to-date and accurate.
11. Calculation and analysis of the labor intensity and duration of the business process
The methodology was created to calculate the optimal number of employees in the enterprise and the load on them.
12. Analysis of the matrix of distribution of responsibility
The technique of drawing up a visual functional table that strictly distributes the organization to structural divisions, links, and so on. In other words, tasks are assigned to structural divisions
For an optimal solution to optimize business processes, you can use all methods as a whole, or separately, depending on the tasks and the amount of analyzed information.
Settlement and graphic work
on the topic: "Reengineering of business processes of the software development department of a consulting firm"
by discipline: " Business Process Reengineering Basics»
Completed Art. gr. Pim-161
A. L. Tkachenko
"____" ___________ 2017
V. I. Starikov
"____" ___________ 2017
Introduction. 3
1 Organizational methods for optimizing business processes ………………. …… 4
1.1 Methods for optimizing business processes. 4
1.2 Reengineering of business processes. eleven
1.2.1 Planning. 12
1.2.2 Reengineering. fourteen
Conclusion. 16
Bibliographic list …………………………………………………… ..17
Introduction
In the activities of each company, sooner or later, a period of decline begins. The reasons can be very different - old equipment, ineffective organization of staff work, the use of outdated production technologies, etc. In this case, the company, or rather, its management team, has a choice: to leave everything as it is, and, most likely , go bankrupt, try to improve in any way problematic business processes, or completely and radically change these processes, that is, reengineer them.
Reengineering is the rethinking and radical restructuring of business processes in order to improve such important indicators as cost, quality, speed of operation, finance and marketing in order to achieve a leap forward improvement in a firm's performance.
Reengineering is aimed at ensuring that not only each link of the business is effective, but also that the entire system of their interaction is aimed at obtaining the maximum multiplier effect, i.e. the effect that cannot be obtained by each individually, but can be achieved through joint efforts, organized in an optimal way.
1 Organizational methods for optimizing business processes
Business process optimization methods
In modern enterprises, problems may arise associated with the effective work of some divisions of the enterprise or the enterprise as a whole. To improve the efficiency of the enterprise, it becomes necessary to change the structure of business processes occurring in the enterprise, that is, the need to improve business processes.
Business process improvement is preceded by a number of methods:
· Documenting the process;
· Measurement of indicators;
· Self-assessment and assessment of indicators;
· Planning for improvement.
These methods are for understanding the problem, for analyzing the problem, for generating ideas, etc. The main purpose of these methods is to determine the contribution to improvement. The following improvement tools contribute to these goals:
· Simplification;
· Idealization;
· Analysis of working cells;
· Statistical process control / control chart;
· Reengineering of the business process;
· Benchmarking.
Main purpose simplification method is to eliminate losses and unnecessary excess costs of elements of the business process. The simplified process goes easily, without resistance, without lowering the level of indicators either within the process itself, or in its interaction with the external environment, within which it exists. To achieve the effect of simplification, there are several techniques that can be used separately. But when they are combined, the effect is much greater.
The solution to the problem can be started by studying a real-life process, from a detailed analysis of individual steps, from calculating the actual economic effect, determining the value added, etc. You can, on the contrary, make an attempt to mentally free yourself, abstract from reality and try to imagine an ideal process. This is the thought that underlies method of idealization process. It is important to be able to imagine how good an ideal process would be if it were free of waste and other unwanted elements. It is clear that the ideal process cannot be implemented in practice. However, the differences between ideal and actual processes can form the basis for decisions and improvement projects.
Idealization- This is a typical group exercise where multiple participants come up with as many different ideas as possible. It is very important that the group includes those employees who are involved in the relevant process, since it is these people who think all the time about how it should be, ideally. On the other hand, outsiders can also come up with fresh ideas. Thus, the group must be mixed.
Quality function structuring method (SFC) was originally intended to organize the product development process. consumer-oriented.
The peculiarity of the SFC is that it allows you to identify the relationship between the requirements and the means of their satisfaction, and also provides a method for analyzing these relationships. This feature is implemented by building a special table that has the shape of a house (see Fig. 1.1). It is called the “home of quality”. This is where the research results are accumulated. They are used to improve the business process. In the areas of the "house" are placed the investigated elements. In fig. 1.1 is an example of the placement of elements in the "house of quality".
Rice. 1.1 General view of the "quality house" An example of the placement of elements in the premises of the "quality house"
In what?" in fig. 1.1 contains a set of requirements for the process. The most important of them are those presented by external consumers. Requirements from external suppliers, internal customers and suppliers, and other interested parties can also be posted here.
Importance weights are placed in the importance weights of specific requirements.
In "How?" elements are placed, which are the means used to satisfy various requirements. If, for example, it is required to shorten the time of customer service, then the appropriate tool placed in "How?" Might, for example, increase the bandwidth during peak periods.
In the "Matrix of correspondences (relations)" in the center of the house of quality are placed elements that directly reflect the relationship between results or requirements and the means of their satisfaction. The symbols used to denote these relationships are shown in Fig. 1.2.
Rice. 1.2 Symbols used for the correspondence matrix
In "How?" against "How?" on the roof of the quality house (see Fig. 1.1), elements are placed that represent the relationship between the various means of satisfying the requirements. Suppose, for example, that the means to improve the service process is to cut staff. But this, in turn, is also a means of reducing the costs incurred by the company. There is a conflict situation, which is easily revealed when considering the "roof". The symbols that should be used to designate the elements of this matrix are shown in Fig. 1.3.
Rice. 1.3 Symbols for designating the elements of the matrix placed on the "roof of the quality house"
In Why? (see Figure 1.1) hosts elements that can be used to benchmark processes. Process benchmarking is similar to product benchmarking.
The "How many" contains the results of the analysis. For this, the importance of the consumer requirement under consideration is multiplied by the corresponding weight value. The sum of such products is placed in the cell under the corresponding column of the matrix. The larger the sum of these products, the more requirements can be met in a specific way corresponding to this column.
The basis for the analysis of work cells is the need for a clear definition of the technical requirements, regardless of whether a physical product or service is being produced, whether it is done for an external or an internal consumer.
The analysis of a working cell has several goals:
· Above all, a discussion of these requirements will help the cell identify the needs and wishes of the various stakeholders. Thus, the tacit misunderstanding between the supplier and the consumer will be clarified.
· In addition, discussion will help introduce metrics that can be used to monitor whether the input and output quality is good enough.
· Such analysis will help to ensure that the minimum number of defective and defective products will be sent for rework. And if alterations are not possible, then the product will have to be thrown away. Such a system prevents defective products from reaching the consumer. If a defective product gets to the final consumer, it will do much more harm than its rejection at an intermediate stage of production.
Before starting consideration statistical process control (PMS), it is necessary to define some basic concepts of statistics. First of all, it is important to understand the difference between chronic and sporadic variation:
· A variation is called chronic if it is characteristic of the process under consideration and is caused by many reasons, of which one cannot be distinguished, which determines the deviations. This variation is natural for the process. You should always expect her to appear. You need to live with it until the very nature of the process changes. If, for example, the timing of the total time of mail delivery to the office of a large company is carried out, then this time will inevitably vary depending on various factors, such as the pace of walking of an individual postman, the number of letters delivered, the number of mistakes made, and the amount of time spent waiting for the elevator. etc.
· Variation is called sporadic if it is caused by factors that are rare, usually more severe than chronic variation. Deviations can often be traced back to one single cause. Sporadic variation can be ruled out if this cause is eliminated. For the previously considered example with the timing of the postman's path, such a reason may be the use of an inexperienced novice postman, an error while sorting mail, an elevator breakdown.
The purpose of the SUP is to classify variations according to these two groups. This allows for further improvement.
main idea benchmarking- comparison. Before exploring the benchmarking procedure, it is important to consider some concepts.
The noun benchmarking means that there is some predetermined position that is used as a reference for making measurements. This concept has migrated to the economy, where it means the following. Measured "best-in-class" achievement is considered the standard of excellence for the business process.
The concept of benchmarking can be given the following philosophical definition. Benchmarking means:
• be smart enough to admit: there is always someone who is better than you in something;
· Be wise enough to learn everything from him, and then catch up and surpass the teacher.
This definition reveals the essence of benchmarking, namely learning from others. The term benchmarking is perhaps taken from the physical geography of surfaces, where the position of a given set of points in relation to some point of reference is studied. In surveying, such a reference point can be a high peak or some other easily identifiable or easily recognizable landmark. The literal translation of the English term benchmarking literally means: "stone bench". (Imagine that on the top of the mountain, so that everyone can see, there are two stone slabs. They are installed on the edge and moved slightly from each other. A third slab is placed on top of them. The result is a stone bench). It is this idea of comparison with a certain standard, a special reference point, and has found wide application in economics.
Benchmarking is viewed by many as a method of comparing individual key indicators of an organization, often financial, with those of competitors or with the industry average in order to rank it. This could have been the main purpose of benchmarking in the old days. However, now the field of application of the method is expanding. Here are its main elements in the modern sense:
1). Measuring the level of indicators of your own with the indicators of a benchmarking partner. The purpose of measurements is to compare and record improvements.
2). Comparison of performance levels, practice processes, etc.
3). Learning from the example of benchmarking partners to introduce improvements in their organization.
4). Improvement. This is the main goal of any benchmarking.
There are four main reasons for doing benchmarking in an organization striving for improvement:
1) Benchmarking helps an organization understand and develop a critical attitude towards existing business processes.
2) Benchmarking gives impetus to an active learning process in the organization and motivation for change and improvement.
3) With the help of benchmarking, the organization can find new sources of improvement and new ways of working instead of those that are accepted in our environment.
4) With the help of benchmarking, new standards are determined for measuring the performance of business processes.
Thus, when we talk about benchmarking, we are talking about comparing our enterprise with other enterprises.
Julia Lelina
Optimization of business processes
In modern management practice, the process approach is widely used. This article presents the author's practical experience in researching and optimizing business processes.
There are several types of events, each of which can serve as a reason for starting a program for improving (improving) business processes. These include both objectively ineffective actions and problems with achieving the intended results, as well as changes in the environment (the appearance of new technologies, competitors, etc. on the market).
In any organization with a hierarchical structure, managers, as a rule, have top-level (conceptual or strategic) knowledge of all functions under their authority, and employees have knowledge of an exclusively highly specialized function that they perform on a daily basis (operational activities of a certain area of work). This "gap" between a manager and a subordinate is normal, but carries the risk that no one has a complete picture of all processes with all the nuances and specifics.
Problems often arise at the junctions of work or the transfer of information between different departments or even between employees within the same department.
As a result, the organization faces the task of optimizing work and processes in order to reduce costs or losses (financial, material, time, labor) for the performance of certain work.
An effective solution to the optimization problem is to use " process approach " and "8D Team Problem Solving Techniques".
Quick reference
About the process approach
The process approach is considered to be the systematic identification and management of the processes involved in an organization and especially their interrelationships.
A process is any activity or set of activities that uses resources to transform inputs into outputs.
The process model of an enterprise consists of many business processes, the participants of which are structural divisions and officials of the organizational structure of the enterprise.
Process-oriented organizations strive to remove the barriers and delays that arise at the intersection of two different parts of the organization in the execution of the same business process.
A business process is understood as a set of different types of activities that together create a result that has value for the organization itself, the consumer, the client or the customer.
The basis for managing a separate business process and a group of business processes are performance indicators, among which are:
- costs of implementing a business process,
- calculation of time for the implementation of a business process,
- business process quality indicators.
The principles of the process approach are enshrined in the international standard for the certification of the series' quality system ISO 9000 in order to increase customer satisfaction by fulfilling the requirements of the quality management system.
According to ISO 9000, when evaluating a process control system, it is necessary:
- identify and define the process;
- distribute responsibility;
- implement and maintain procedures (process control);
- evaluate the effectiveness of the process in achieving the required results
Quick reference
8D Methodology (8 Discipline) is a methodology for solving local problems in processes.
The 8D method is also known as: Global 8D, Ford 8D or TOPS 8D.
The 8D method was developed at Ford and consists of 8 sequential steps to solve a problem, the cause of which is completely or partially unknown. In the 8D methodology, team, process, problem and analytical approaches are used.
Each step (step) of the 8D Method has a D in its name, which stands for Discipline.
D0 - Define the problem and develop a plan.
D1 - Team building.
D2 - Description of the problem.
D3 - Containment of the problem.
D4 - Analysis of the problem.
D5 - Development of corrective actions.
D6 - Implementation and validation of corrective actions.
D7 - Develop preventive action.
D8 - Closing mini-project 8D.
The 8D method is a problem-solving methodology for improving a product or process. It is structured in 8 disciplines, highlighting the synergy of the group. The 8D technique is teamwork. It is assumed that the group as a whole is more effective than the qualitative sum of its individual members.
Where to begin?
Observation and fixation
The study of the process with the aim of its optimization (improvement) should be considered as a project. At the start of the project, it is necessary to set goals, appoint a project manager and an analyst, define a focus group (usually heads of areas / departments, experts), outline the project boundaries (what processes are to be studied), develop a plan of meetings and actions.
To study the processor, it is better to assign the role of the analyst to an independent expert, for whom the topic of study will be new, i.e. you need a "side view", a new experience (an employee who performs certain operations on a daily basis adapts to them and often does not notice "problem areas"). An analyst can be either an employee of an organization or from an invited (consulting) company.
Consider a situation where the task is to optimize and reduce costs / losses without the need to develop official documents intended for inspection bodies (for example, in accordance with ISO requirements), but to organize quick and justified improvements or reduce costs.
The survey begins with a study of the available documentation (regulations, instructions, regulatory documents, etc.) and the collection of information. The collection of information can be organized in the form of questionnaires, meetings, but the most effective is the personal presence of the analyst at the workplaces of all employees involved in the process to study their actions.
Observation- research method, which consists in purposeful and organized perception and registration of the behavior of the object under study.
Conversation with the manager
The head of the department describes the "big picture" of the subdivisions under his jurisdiction: external and internal communications, organizational structure (distribution of functionality), goals and objectives, a complete chain of sequence of actions (without details), reporting, statistics.
Studying the actions of performers in the workplace
An employee at each work site tells in detail and shows the sequence of his actions, the forms of documents that he uses in his work and forms (inputs-outputs), where and how he transfers information / documentation, with whom he interacts, what software he uses, the sequence of work in the interfaces used systems. At this stage, measurements are made of the time spent on the operation; identifies problems during the operation; and also discusses possible solutions to problems.
Focus group discussions
Discussions are an important part of the study. Focus group experts should take an active part, put forward their proposals (even the most unrealistic and complex - any). In practice, the "5 Whys" method is an effective tool.
The information received should be recorded by any convenient means: writing on A4 sheets / notebook, laptop, dictaphone, any convenient means that allow you to reproduce the information.
At this stage, the analyst's task is listen, observe, fix.
Method "5 why?"
Method "5 why?" invented by Sakichi Toyohara and used by Toyota as their manufacturing methodologies evolved. Currently, the technique of determining the root cause of a problem by asking a five-fold "Why" question is used in the concepts of lean manufacturing, kaizen, 6 sigma, and others.
The method does not offer rigid rules and restrictions: in terms of what questions to ask and / or how long the question should be kept asking to look for additional reasons. Thus, even if the method is followed, the result depends on the knowledge and perseverance of the people involved.
Since when answering the question posed, several options may arise, the “5 why” method does not exclude building a “tree” of reasons. Therefore, the approach is similar to the method of cause-effect diagrams and Ishikawa diagrams ("Fishbone"). It is quite possible that some of the reasons in the analysis process will be common for several branches at once.
Complete Analysis Five "Why?" follows one answer to the "How" question for each of the discovered root causes of the resulting tree or diagram. The received answers should result in the implementation of solutions.
How to format the information received and make it structured?
Visualization and description of processes
When defining the business processes that exist in an organization, it is advisable to start describing the processes at the top level. Further, for each top-level process, its decomposition is done (a more detailed description). The number of levels of decomposition of processes is determined by the tasks of the project and should not be too large (no more than 6-8 levels).
The upper level of the description of business processes corresponds to the processes that are controlled by top managers, the second level, as a rule, is considered at the level of large functional divisions, then the functions performed at workplaces are considered.
Within the links of the functional hierarchy, there are flows of information directed from top to bottom (management decisions) and from bottom to top (reports).
The visualization of the information obtained during the survey is the result of the analyst's creative approach to displaying the sequence of operations of the process.
The most common among modeling methodologies, and, importantly, approved by the State Standard of Russia, are the standards of the family IDEF.
IDEF0 concept
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IDEF0 is based on the SADT (Structured Analysis & Design Technique / Development Technology) approach and is used to create a functional model of a system or process that displays its structure, functions, as well as information and material flows converted by these functions.
The IDEF0 concept is based on the following provisions:
Model. It is an artificial object, an image of a system. The model is developed to reengineer an existing system or create a new one. The model describes what happens in the system, what it transforms, what tools it uses to perform its functions, what the system produces as a result, and how it is managed.
Block modeling. The system under study is represented as a set of interconnected, dependent on each other blocks that reflect the processes occurring in the system. Each function of the system is associated with a block displayed on the IDEF0 diagram by a rectangle. Arrows entering and leaving a block describe the interfaces through which this block interacts with other blocks and the external environment. In this case, the incoming arrows describe the conditions that must be fulfilled simultaneously for this block to perform its function.
Conciseness and precision. The graphical language IDEF0 allows you to concisely, accurately and unambiguously describe all the elements of the system and the connections between them, as well as identify erroneous, unnecessary or duplicate connections.
Transfer of information. The means of information transfer in IDEF0 include:
- Easy to read and understand diagrams.
- Natural language labels and accompanying text to clarify the meaning of the diagram elements, as well as a glossary.
- Sequential decomposition. Blocks can be broken down into their component parts and presented in the form of more detailed diagrams. You can start the next level of decomposition only after the final completion of the "parent level" model.
- Diagram and block tree diagrams that allow you to read the diagram by sequentially expanding the levels of detail.
Iterative modeling. Model development in IDEF0 is a step-by-step procedure. At each step, the model is discussed by analysts and experts in the studied area, then corrected, after which the cycle repeats.
Separation of "organization" from functions. The model should not be tied to the organizational structure of the company. On the contrary, the organizational structure should be the result of the application of the model, which will allow, firstly, to assess the adequacy of the model, and secondly, to propose solutions to improve this structure.
Design IDEF (Meta Software) or BP-Win (CA) can be used as IDEF0 compliant software.
The graphical diagram is the main component of the IDEF0 model, containing blocks, arrows, connections of blocks and arrows and their associated relations. The blocks represent the main functions of the modeled object. These functions can be broken down (decomposed) into their component parts and presented in the form of more detailed diagrams; the decomposition process continues until the object is described at the level of detail necessary to achieve the goals of a particular project. The top-level diagram provides the most general or abstract description of the object to be modeled. This diagram is followed by a series of child diagrams that provide a more detailed view of the object (see IDEF0 Functional Modeling Methodology).
ARIS- methodology and software product of the same name by IDS Sheer. ARIS eEPC notation is an extension of IDEF3 notation.
A business process in eEPC notation is a flow of sequentially performed work (procedures, functions), arranged in the order of their execution. Flows of material resources and information can be displayed between processes. To describe the infrastructure required to complete the process, the Product / Service and IT system objects are used.
In accordance with the ARIS methodology, each process can be considered in five aspects:
- Organizational aspect- is a set of organizational units, their relationships and the corresponding structures involved in the process;
- Information aspect- displays the composition of data and information involved in the process;
- The governing aspect- describes the relationship between different types of process models;
- Functional aspect- contains descriptions of functions, individual subfunctions and their relationships with each other and with the main functions.
- Product aspect- determines the composition of products and resources of the process, as well as their relationship with each other and with elements of other models.
Organization in ARIS is viewed from four points of view:
- Organizational structure,
- Functional structure,
- Data structures,
- Process structures.
Description of current processes
Model AS IS ("As Is")
Model AS IS("As is") - a model of the existing state of the organization.
This model allows you to systematize the ongoing processes, as well as the information objects used. On the basis of this, bottlenecks in the organization and interaction of business processes are identified, the need for certain changes in the existing structure is determined.
This model is often called functional and is performed using various graphical notations and case tools. At the stage of building the AS IS model, it is considered important to build a model as close to reality as possible, based on real process flows, and not on their idealized representation.
Designing information systems and managing processes implies building an AS IS model and a further transition to the TO BE model, which is the key to automating "correct", improved processes.
In my practice, at the stage of describing the AS IS model, I use the ARIS eEPC notation to display the sequence of execution of procedures (functions) in the form of a block diagram (a free version of ARIS Express can be downloaded). This approach is the simplest and most effective because allows participants to quickly understand the structure of the entire process.
Relationships between objects have a certain meaning and reflect the sequence of execution of functions within a process. The figure below shows the simplest eEPC models describing fragments of a business process.
The arrow connecting Event 1 and Function 1 “activates” or initiates the execution of Function 1. Function 1 “creates” Event 2, followed by the logical “AND” symbol, “starting” the execution of Functions 2 and 3.
The eEPC notation is built on certain semantic description rules:
- each function must be triggered by an event and must end with an event;
- each function can not contain more than one arrow, "starting" the execution of the function, and out of no more than one arrow, describing the completion of the function.
The business process must be characterized by some indicators so that the process can be measured and its effectiveness evaluated.
Performance indicators can be divided into 5 main groups:
- quality;
- lead time;
- number;
- costs;
- ease of use.
Any processes can be divided into two components - one that adds value to the product, and one that does not increase its consumer value. The criterion for increasing the component of adding value to the process can be used as a basis for optimizing business processes. Moreover, this criterion can be chosen as a defining principle to simplify any business process.
When a product (service) passes through an organization's business process chain, two things happen to its value:
- In the production process, the product absorbs the cost of labor, materials, energy expended on it, as well as other related costs. However, the added value of a product is not directly related to these costs.
- The value of a product is increased by adding such qualities as functionality, aesthetics, brand name and similar aspects to the product that are important to the customer. Ultimately, this will make it possible to sell it at a price higher than the total costs that were spent on the product, i.e. get revenue.
Assessmentbusiness process measurements must be carried out from the client's point of view... Typically, companies view their business processes in four distinct categories:
- product and service development;
- demand generation;
- satisfaction of demand;
- planning and enterprise management.
Identifying bottlenecks (losses)
Process optimization
Process bottlenecks- operations and communications that reduce the efficiency of the process, increasing its labor intensity and cost. Bottlenecks are usually duplicated operations / jobs, over-normal time delays, data loops, overloads of individual elements, material / time and other losses. To identify and eliminate such bottlenecks, business processes are optimized.
14 steps to optimize the processes of E. Deming
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In accordance with the management principles of E. Deming, to optimize each process, it is necessary to perform 14 steps sequentially:
- Describe the scope of the process. For this:
- List all events that start the process.
- List all points of the end of the process and the outputs of this process to other processes
- Highlight the main process steps, tasks and activities that belong to this process.
- List all tasks and activities about which there is doubt, whether they belong to this process, in order to find out which of them should be kept and which should be excluded.
- List all the inputs and outputs of a process, including all resources used by the process.
- Create a model of the process in its current state (as is - as is).
- Identify indicators of the quality of the functioning of the process. At this stage, it is very important to obtain an exhaustive list of factors that will help assess the effectiveness of the process. To do this, you can use 6 aspects of quality, breaking down the indicators into the following groups:
- Acceptability and suitability. This group of indicators evaluates the product from the point of view of the consumer.
- Timeliness... This group includes time indicators, including the date the product or service was provided to the end user, development time, etc.
- Accuracy and completeness... These two criteria are mutually complementary. For example, incomplete documentation may be considered inaccurate.
- Quality of customer interaction... The product developer must take into account all the requirements of the client and constantly contact the customer.
- Process efficiency... These are indicators that characterize the cost of costs, rework, waste and other waste of time and resources.
- Business efficiency... These indicators relate to the output of the process, to the strategy for its implementation, for example, the profitability of the product.
- Record the results characterizing the current state of the quality of the process functioning. The main difficulties that will have to be faced at this stage may be: lack of measurement techniques, registration rules and human resources to collect information.
- Describe data that characterize the consumer's opinion about the quality of the process. The list of data is obtained on the basis of a consumer survey, which can be conducted in any form: telephone surveys, interviews, the formation of focus groups. In doing so, it is important to find out if the offered product or service is what the consumer actually wants, if there is anything else that the consumer would like, and if there is something that the product developer should not do. Next, you need to establish a connection between the results of a survey of consumer opinions about a product or service with the quality indicators that were determined in step 3.
- Describe data that allows you to compare the course of similar processes in your and other organizations. The process should be assessed in terms of existing competition. To do this, you need to understand how other companies implement similar processes. The metrics for which the assessment will be carried out may be taken from data published by a competitor in the open press. The purpose of the benchmarking analysis is to support decision making at stages 10 ... 12.
- Develop standards for each indicator obtained from the results of step 3. As such standards for each indicator, you can set three boundary points: the first point characterizing the lowest quality level still acceptable to the consumer, the second is the match point setting the average value of the indicator for the aggregate of companies operating in this area of the market (or the value of the indicator at which consumers stop complaining about the product or service) and the third point is the "leader level", which is determined by the quality of the functioning of the processes of the strongest competitors (or the value of the indicator at which complete customer loyalty is achieved ).
- Identify the problems that arise during the implementation of this process. These include any deficiencies in the quality of the functioning of the process in your organization, low efficiency in the use of resources. The list of problems also includes unrealized process capabilities, for example, any profitable products or services that are in demand in your market area, but which your company does not deal with.
- Develop a report on the results of the analysis of problems arising during the implementation of the process. All problems should be classified and ordered in terms of their priority and importance. The report can be both in text and in tabular or graphical form, for example, in the form of an Ishikawa causal diagram. The latter is preferred because diagrams allow you to design and prioritize multidimensional solutions.
- Offer a list of potential solutions. Using the results of the previous step, you should now brainstorm to find ideas that can be used to achieve process improvement. Depending on the severity of the problem, there can be three ways to solve this problem:
- make a quick, intermediate decision that does not affect the basic basic characteristics of the process with minor changes in the content of the process;
- improve the current process to a significant extent, but within the framework of the previous ideology;
- re-do the process.
- Display a vision of the future state of the process. At this stage, you should identify possible changes in the products and services produced by the company, and note the degree of improvement that is expected to be achieved. The result of this step should be a "as should be" or "to be" model.
- Prepare a list of initiatives required to achieve the desired state of the process. At this stage, it is necessary to display what activities should be implemented in order to transfer the process from the “as is” state to the “to be” state. Each initiative should be described as: "Process change", "Method and tool change", "Organizational change" or a combination of changes. The list of initiatives should be ordered according to two criteria: first, by quality, i.e. in terms of importance to consumers, and then in terms of the time it will take to achieve results - at the top of the list should be activities that can be implemented faster.
- Conduct a preliminary analysis of initiatives in terms of their cost-effectiveness. An estimate should be made of the costs of each of the initiatives and the degree to which the product or service has improved as a result of that initiative. This can be done in several ways, for example, assessing the new net profit (NP) that the company will receive after changing the business process, or assessing the new ROI (Return On Investment). It should be borne in mind that the assessment of profit should be carried out not for one business process, but for the whole of the company's activities in order to exclude initiatives when the optimization of some processes occurs due to negative changes in other business processes. Once the costs have been estimated, the list of initiatives should be reordered based on cost-effectiveness.
- Prepare a report on the project as a whole, containing recommendations for optimizing the process. Based on the prepared report, appropriate changes are made to the process, or the process is created anew.
7 simple process optimization tricks:
Reception number 1: Moving the IFR (ideal end result) out of the process
Form an IFR that could be achieved not only through the implementation of the process, but also by all available means
Reception number 2: Excluding unnecessary steps from the process
It is necessary to consider the purpose of each step of the process, to ask the question whether it is possible to exclude any steps or combine them:
- Are there stages that duplicate each other, can one of them be removed?
- Are all stages of the process necessary for the main purpose of the process, are there any that can be dispensed with?
- Which of the steps in the process are most critical to the successful completion of the process?
- Can these steps be moved closer to the beginning of the process?
The more perfect business processes are, the fewer requirements they place on the qualifications of employees. The fragmentation of processes and operations is carried out, which leads to a simplification of the process as a whole.
- What operations in the process require the most qualifications of the performer?
- Can these operations be divided into simpler operations so that the requirements for the performer would be reduced?
Often in complex processes saturated with operations, one and the same performer performs all the operations, which significantly delays the process, and also significantly reduces its quality.
- What are the most energy-intensive operations in this process?
- Can these operations be entrusted to other performers without prejudice to the process? Moreover, it is important to understand that operations can be entrusted not only by an employee of their company, but also outsourced.
- If in this process the operations that would be more expedient to combine in time and (or) space?
To assess losses (problems), you can apply FMEA method:
- make a list of the possible consequences (S) of each failure (problem / loss);
- get an expert assessment of each consequence, in accordance with its severity, usually on a 10-point scale (10 corresponds to the most serious consequences);
- assess the likelihood of a consequence (O) on a 10-point scale;
- assess the probability of detecting a failure and its consequences (D) on a 10-point scale;
- calculate for each the consequences of the risk priority ratio - R (Risk Priority Number - RPN), where RPN = S x O x D;
- select failures (problems / losses) to work on;
- take measures to eliminate or reduce failures (problems / losses) with a high risk indicator;
- calculate a new risk indicator taking into account the developed measures.
All detected and studied failures are classified according to the degree of criticality, ease of detection and elimination, and frequency of occurrence. The main task is to identify problems before they arise and begin to affect customers.
The higher the RPN, the more dangerous the violation and the more destructive its consequences. First of all, it is necessary to eliminate or reduce the risk in those who have this value higher.
FMEA(abbreviation from Failure Mode and Effects Analysis, failure modes and consequences analysis) - a methodology for analyzing and identifying the most critical steps in production processes in order to manage product quality.
According to the US military standard MIL-STD-1629 "Procedures for Performing a Failure Mode, Effects and Criticality Analysis", FMEA is a procedure that analyzes all possible system errors and determines the results or effects on the system in order to classify all errors relative to their criticality for the operation of the system.
The most well-known decision-making methods for optimizing business processes are brainstorming technologies, the method of nominal groups and benchmarking.
Brain storm Is a method of collective production of new ideas, developed back in the thirties of the last century. The essence of the method is to separate the process of putting forward ideas from the process of their critical assessment and selection. The optimal number of participants in such a group is 5 ... 10 people. The group should have a facilitator - a person who leads the group discussion process. He is both a generator and an analyst of ideas. The brainstorming process presupposes certain rules of work: no criticism; an atmosphere comfortable for all participants in the assault. The purpose of this event is to collect as many ideas as possible, even those that seem unrealistic. All ideas should be promptly recorded. For the second stage - the analysis of the ideas put forward - usually specialists are involved who did not take part in the generation of ideas. As a result, a final list is drawn up, in which only those solutions that are supported by the majority of participants remain.
Nominal group method on the contrary, it restricts the communication of the group members. Each participant is provided with a complete description of the process and all the data for making a decision. Each member of the group, without discussion with colleagues, sets out their ideas on paper. Then all the members of the group take turns presenting their ideas to the whole group, strictly one idea at a time. No discussion is allowed here either. And only after the end of the presentation of ideas, there is a group discussion, evaluation and selection of ideas.
Benchmarking- it is a constant study of the best in the practice of competitors. The concept of benchmarking originated in the late 1950s, when Japanese specialists visited leading companies in the USA and Western Europe in order to study and then use their experience. In preparing the list of initiatives required to achieve the desired state of the optimized process, the method of competitive intelligence can play an important role. Sometimes this method is also called the best practice method.
Although an individual approach is always used to optimize each business process, nevertheless, you can list the basic principles of business process reengineering, which in many use cases led to positive results:
- horizontal compression of the process, when several sub-processes are combined into one;
- vertical compression of the process (empowering employees and increasing the role of each of them);
- selection of another version of the process execution;
- transferring the process geographically to a more suitable place;
- reducing the number of checks and control actions;
- reduction in the number of approvals - a single point of contact is provided by one manager or an automated system.
To determine the causal relationship between the identified problems and their causes, you can use Ishikawa diagram(diagram "fishbone", from English. Fishbone Diagram, also known as a "root cause analysis" diagram).
The diagram helps to determine the main factors that have the most significant influence on the development of the problem under consideration, as well as to prevent or eliminate the action of these factors.
The main arrow indicates the problem. Factors that exacerbate the problem are shown by arrows slanting to the main one to the right, and those that neutralize the problem are shown with a tilt to the left. As the level of analysis deepens, the arrows of the factors of the second order can be added to the arrows of the factors, etc. The figure below shows such an example with two levels of bones: the 1st level is indicated in red - the main (root) ones: a, b, c, d, and blue level 2 - in-depth (detailing) reasons (factors) of the investigated influence on the result (among the factors of the 2nd level are, like those that enhance the effect of the 1st level - e, f, g, h , i, l, m, o, p, and those that weaken it - k, n). The key challenge is to have three to six main categories that cover all possible influences.
Description of the optimized process
TO BE model
The TO BE model is created on the basis of the AS IS model with the elimination of the identified shortcomings in the existing organization of business processes, as well as with their improvement and optimization. This is achieved by eliminating bottlenecks identified based on the AS IS analysis.
The visualization methods for the TO BE model are the same as for the AS IS model.
A common modeling mistake is creating an idealized model. An example is modeling based on the knowledge of the manager, and not on the specific contractor. The manager is familiar with how the work is supposed to be performed according to the manuals and job descriptions, and often does not know how the subordinates actually do the routine work. As a result, an embellished, distorted model is obtained, which carries false information and which cannot be used in the future for analysis. This model is called SHOULD BE.
Sometimes the current AS IS model and the future TO BE are very different and the transition from the initial state to the final one becomes not obvious. In this case, a third model is needed that describes the transition from the initial state to the final state, since such a transition is also a business process.
Planning and implementation of optimization measures
Implementation of the TO BE model
After identifying losses ("bottlenecks"), assessing deviations and their consequences, developing measures to eliminate them, it is necessary to determine the priority directions of changes, to determine the priorities for implementation.
First of all, it is necessary to identify the activities that affect the quality of the product / service and are important for external consumers (customers), then determine the measures that solve temporary losses in the execution of operations within the organization (and first indicate what is being implemented faster).
In order to prioritize, it is useful to identify the opinion of customers (what they want to get) and how the competitors' processes are organized, i.e. study the external environment, identify the wishes of customers that are not implemented in the studied processes of the AS IS model.
The initial task of the TO BE implementation is to establish a corrective action plan for the elements and operations with the highest RNP and in line with the identified priorities.
The implementation plan contains a sequence of implementation of the developed recommendations for eliminating bottlenecks with an indication of the timing, responsible for the implementation, performers.
I recommend drawing up the TO BE model implementation plan using MS Project (free version of Project Expert) or in the form of a "90 days plan" used in the "A3 thinking" methodology for quick decisions, or for short-term implementations of the Scrum and Agile methodology.
- suitability (from the point of view of consumers);
- timeliness;
- accuracy and completeness;
- the quality of interaction with the client;
- cost of costs, loss of time (costs of performing operations);
Plan in Project it is convenient to develop for tracking the load of resources and automatically calculating the dates and dates of the beginning and end of sequential and parallel jobs.
90 days plan It is useful for quick improvements, the implementation of which is designed for a cycle of 90 days. The plan indicates the actions, performers, deadlines, results and status (in progress or not yet started) to quickly visualize the real situation for the implementation of the plan.