In this project descriptive lecture, I will be talking about Process Analysis and Improvement in Project Management.
Lecture Content
• Process Analysis
• Process Improvement and Innovation
• Flowchart Diagrams
• Basic Flowchart Activity
Learning outcome:
- Understanding process improvement and innovation
and how modelling is used in these initiatives. - Understanding the use of basic flowchart diagrams to
describe the flow of activities within processes.
Introduction
• Use process map to identify value-added or non-value-
added activities.
• Elimination of non-value-added steps reduces cycle time
and cost and increases productivity.
• The process maps/models provide the basis for analysing
processes.
• A selection of potential applications purposes of the
analysis are presented.
Process Analysis Applications
• Type of analysis is determined by the type of improvement
initiative or by the reason for selecting the process for
modelling.
– For quality improvement, a work process may be
selected because of errors in the process output.
– In this case, defect data is collected and analysed to
identify and remove the causes of the defects.
Process Analysis Applications
• The use of process maps in a variety of performance
improvement applications follows.
• They contain the following for each improvement
application/initiative:
– Typical analysis questions
– Additional data required
– Map/model portions generally used
Cost Reduction Application
Typical Analysis Questions:
• What does it cost to operate the process?
• What are the causes of cost in this process?
• Which steps cost the most? Why?
• Which steps add value and which do not?
Additional data required:
• Cost for each input, output, and step
• Determination of whether the step is value-added or non-value added
Map Portion Used:
• Inputs
• Outputs
• Steps/Activities
Cycle Time Reduction Application
Typical Analysis Questions:
• Which steps consume the most time? Why?
• Which steps add value and which do not?
• Which steps are redundant, bottlenecks, or add complexity?
• Which steps result in delays, storage, or unnecessary movement?
Additional data required: For each step determine:
• Time
• Whether the step is value-added or non-value-added
• Complexity
• Redundancy
• Bottleneck
• Delays
• Storage
• Transportation
Map Portion Used:
• Steps/Activities 9
Quality Improvement
Application (defects reduction)
Typical Analysis Questions:
• What are the causes of the defects?
• Is variation due to common or special causes?
• How should the process be changed to reduce or eliminate variation?
Additional data required:
• Process requirements
• Common or special causes of variation
• Desired quality characteristics
• Defect categories and descriptions
Map Portion Used:
• Inputs
• Outputs
• Steps//Activities
Customer Satisfaction Measurement Application
Typical Analysis Questions:
• How does process performance data compare to customer
expectations and perceptions data?
Additional data required:
• Customer expectations data
• Customer perceptions data
• Process performance data
Map Portion Used:
• Inputs
• Outputs
• Steps/Activities
Tools and Techniques for Process Analysis and Improvement
Graphical: to display relationships between entities or to
communicate ideas
• Statistical: to gather and analyse data related to repetitive
processes
• Modelling: to present information graphically with high
degree of precision- by using specialized notations
• Text-based: to gather and present more information- by
using reports, narratives, economic analysis, etc.
Business Process Improvement and Innovation
• Aligning business process improvement with objectives and
strategy
• Definitions of process improvement and
innovation/redesign
• Some frameworks for business improvement and
innovation
Alignment of Process Improvement with Corporate Goals & Strategy
• Process improvement/innovation initiatives need to be
directed and informed by a company’s overall objectives &
strategy.
• Corporate goals or objectives should be the fundamental
driver of all business process improvement/innovation
efforts.
• Corporate objectives define the destination.
• The organisational strategy/direction needs to be
articulated and communicated widely.
• Business process improvement contributes towards the
journey to get there. 15 Performance Measurement
• Corporate objectives determine the critical success factors
and performance measures that should be used to evaluate
the success of process improvement initiatives.
• One or more performance measures should be established
for each improvement initiative.
• The measures should be used to determine that the
initiative is actually achieving its purpose.