Process Improvement Strategies

After Analyzing….

Once we figure out and have verified what

the issues and challenges are regarding
a particular process, we try to streamline
the process..
Streamlining Processes

 Streamlining processes suggest the

trimming of waste and excess,
contouring to provide the smoothest flow
 It is hoped that with streamlining the
process will operate with the least
disturbance to its surroundings
 In the end, we would like to have efficient
and effective processes
Efficient & Effective Processes
 Have few handovers between staff / departments
 Produce minimum paperwork
 Have high quality outputs
 Deliver the desired output to stakeholders with minimal
contact /liaison
 Have effective ICT systems supporting or facilitating
them
 Are understood & mapped / documented where
beneficial
Note that when we streamline
processes…

ELIMINATE SIMPLIFY INTEGRATE AUTOMATE

Over-production
Non-Value Activity
Waiting Time Forms
Dirty
Transport Procedures
Difficult
Processing Communication Jobs
Dangerous
Inventory Technology Teams
Defects/Failures
Boring
Problem Areas Customers
Duplication Data Capture
Flows Suppliers
Reformatting Data transfer
Processes
Inspection Data analysis
Paper work
Reconciling/
Matching
Cornerstones of Streamlining Processes

 Bureaucracy elimination  Upgrading

 Duplication elimination
 Value-added assessment
 Simplification
 Process cycle-time
reduction
 Error proofing
 Simple language
 Standardization
 Supplier partnerships
 Big picture improvement
 Automation
Bureaucracy Elimination
 Bureaucracy creates excessive paperwork
 Fact: managers spend 40-50% of their time writing and
reading job related materials; 60% of clerical work is
spent on checking, filing, and retrieving information
 Why?
 Paranoia about being blamed for errors
 Poor training
 Distrust of everyone
 Lack of work
 Inability to delegate
 Need to overcontrol
 Unwilling to share information
 Thrill of checking for and finding miniscule mistakes
How do you identify bureaucracy?
 Are there unnecessary checks & balances
 Does the activity inspect or approve someone
else’s work?
 Does it require more than one signature?
 Are multiple copies required?
 Are copies stored for no apparent reason?
 Are copies sent to people who don’t need the
information?
 Is there unnecessary written correspondence?
 Is someone approving something he or she has
already approved?
Duplication Elimination
 If the same activity is being performed at
different parts of the process or by
different individuals in the process, see if
both processes are needed.
Value-Added Assessment

 The object of value-added assessment is

to optimize business value added
activities and minimize or eliminate no
value-added activities.
(X)-Value Add?
Activity

Yes Necessary to No
produce output?

No
Contribute to Contribute to
Customer Req? Bus. Functions
Yes
Yes No

Business
Real Value Add No Value Add
Value Add

Activities that must Activities that do not contribute to meeting

be performed to customer req. These can be eliminated
meet customer req. without deterioration on product/service
functionality
Simplification
 The objective is to reduce complexity
whenever feasible, leading to few stages,
fewer tasks, fewer interdependencies, etc.
 How to simplify?
 Combine similar activities
 Reduce amount of handling
 Eliminate unused data
 Refine standard reports
Process cycle-time reduction

 Long cycle times prevent product delivery to

customers and increase storage costs.
 Strategies:
 Serial vs. Parallel activities
 Change activity sequence
 Reduce interruptions
 Set priorities
 Improved timing
 Location analysis
Error Proofing
 People make errors. So we correct the
errors, but this takes time.
 Our objective in business, is to reduce
double-checking or second guessing
ourselves.
 Strategy
 Make a list of things you could do wrong and then
use error-proofing methods to eliminate the
possibility of making the error. (Negative analysis)
Fail Safing

Creating a control condition

where the customer, server,
or process can take only the
correct (or desired) action
while engaged in a service
process.
Upgrading

Old things, ways and knowledge may

contribute to delays and distractions 
Upgrade them!
Simple Language
 Do you understand your memos?
 Evaluate the present documents used in the
process to ensure that they are written for the
user.
 Strategies:
 Determine the reading and comprehension level of
your audience
 Familiarity with terms and abbreviations

 All procedures that are more than 4 pages long should

start with a flowchart
Standardization
 Standardization of work procedures is
important to ensure that all current and
future employees use the best way to
perform the activity.
 Procedures should exist for performing
most activities
Supplier Partnerships
 All processes have inputs that come from
people outside the process
 Examine each input process and ask:
 Does the process really need the input
 Is it entering the right place?

 Is it at the right quality level?

 Is the timing correct?

 Is it received in the best possible format?

 DO you get more than you need?

Big Picture Improvement

Step out of the current process and define

what the perfect process would be
without the constraints of the present
organization and/or process.
Automation

 Whendeciding where to begin the

automation, look for:
 Repetitive operations that will improve if
performed more quickly
 Operations that will improve when people who
are physically separated communicate more
quickly
 Operations for which standardized computer
system components are available.
Project Management
Fundamentals
What is a Project?
A temporary endeavor undertaken to create a
unique product or service
Temporary
A one time effort; having defined starting and end
dates; having a specified objective and scope of
work to be performed; having a set budget;
usually being performed by a temporary
organization; being led by one ultimately
accountable individual

Unique
Solving a problem or addressing a need
Project vs. Program
vs. Routine Work
“A group of related projects managed in a
coordinated way to obtain benefits and
control not available from managing them
individually. Programs may include
elements of related work outside scope of
the discrete projects in the program.”

PMBOK 2009
What is Project Management?
 The selection, design (planning, scheduling), execution,
control, evaluation, and termination of a project to meet
project objectives and customer expectations within
allocated cost, time, resource, and performance
constraints (Keating, 1998).

 “Project management is the art of creating the illusion

that any outcome is the result of a series of
predetermined, deliberate acts when, in fact, it was
dumb luck.” (Kerzner, 1998)
Project Phases

INITIATION AND
DEFINITION
Step 1 : Define the project

Step 2: Generate Tasks

Step 3: Determine Roles and Responsibilities
Step 4: Define Task Interdependences
PLANNING Step 5: Develop Schedule
Step 6: Perform Resource Allocation
Step 7: Generate Budget
Step 8: Develop Risk Management
EXECUTION
AND CONTROL Step 9: Track and Manage the Project

CLOSE OUT Step 10: Perform Post-Project Review

About Project Scope
Project Scope
 A scope describes what you expect to
deliver to your customer when the project
is complete
 A poorly defined scope is the most
frequently mentioned reason for project
failure.
Project Scope Checklist
 Project Objectives  Milestones
 brief summary of  Important control points
essential proj. in the project
information (who, what,  Technical
why, optional : when &
cost) requirements
 Deliverables  Limits and Exclusions
 typically will include  Reviews with
time, quantity and cost customer
estimates
 Measures of Success
The PM Triage

Resources

Project

Time
Scope
Project Management Dilemma

Time
Cost Scope

Performance

C = f(P,T,S)
Project Management

Project Cost Management

(Some) Sources of Project Costs

Materials Sub-contracted
Work
Labor

Work Package Equipment

Costs Lease

Services

Overhead Tools &

Supplies
Types of Project Costs

Direct Indirect

•Labor
•Benefits Total
=
•Materials
•Contracts
•Support
+ •Overhead
•Admin
Project
Costs
Costs related to a Costs related to a
project that can be project that
traced back to a CANNOT be
cost effective way traced back to a
cost effective way
Types of costs

 Intangible
vs Tangible Costs
 Sunk Cost
 Money that has been spent in the past
 Burdened Cost
 AKA Overhead, is all the "little" stuff that makes
the project possible.
 Can be derived as a percentage of direct labor
or the raw cost
Examples of Burdened Cost
 Examples
 Land purchase or lease cost
 Building lease cost
 Real estate taxes
 Environmental fees and taxes
 Utilities (electrical, water, phone, etc.)
 Staff salaries (management, indirect labor, etc.)
 Maintenance costs
 Real and capital depreciation
Project Risk
Risk
 Dictionary definition: “The possibility of loss
or injury”
 Question: So if there is a possibility of loss
or injury, then why even perform a certain
task?

 The change that an undesirable event will

occur and the consequences of all its
possible outcomes
Risk Management
 The identification of as many risks as
possible
 Minimizing their impact
 The managing of responses to those
events that do materialize
 Providing contingency funds to cover risks
that do materialize.
Risk Identification
 Process of transforming uncertainties and issues
about a project into distinct risks that may be
described and measured.
 Risks cannot be assessed until identified
 Need methodical process
 Risk definition: Scenarios & Consequences
 Central question -- what can go wrong with this project,
activity, task?
 Good risk event definition
 Clear and concise – easily understood
 Risk event captured
Evaluation of Risks – The Risk
Severity Matrix (RSM)
 The RSM is a Systematic determination of
the consequences of identified risk events –
Analysis in 3 phases
 PHASE 1: Determination of likelihood of
occurrence --Low, Medium, or High
 PHASE 2: Determination of Impact of Event
 Low, Medium, or High ON...
 Cost, Performance, Scope, Time (Basics)
 PHASE 3: Determine the Severity of risk event
 Low, Medium, or High
 Constructing the Risk Severity Matrix

Impact
Low Medium High

High Medium High High

Likelihood Medium Low High High

(probability)
Low Low Medium Medium
Planning for risks in the project

 Planning is function of deciding what, if

anything, should be done with a specific
risk event – The STRATEGY for managing
the risk event.
How does one respond to a risk?
 Reduce the Risk
 Common plan that is used.
 Retain the Risk
 The project owner assumes the risk because the
chance of such an event happening is slim (e.g. flood or
earthquake)
 Transferring the Risk
 The risk is passed on to another party (e.g. the whole
development project is given to a contractor - fixed
price contracts)
 Share the risk
 Partnering with another company
Contingency Planning

An alternative plan that will be used if a

possible forseen risk event becomes a
reality

It is necessary to identify the “triggers” that

will activate the implementation of the
contingency plan
Example
 In an afternoon wedding reception that is
held outdoors:

 Risk Event : It might rain during the reception

 Contingency Plan : Set up tents

 Trigger : Overcast clouds in the morning

PMBOK Ratings Impact for a Risk