Fundamental Tools of the Trade

Regardless of how you go about improving a process, you will most likely use one or more of following tools:



Therefore, a solid understanding of each of these tools can help almost any process improvement project. This chapter will highlight each of these tools. And some of these tools may get applied above or belowprocess level to get a better understanding of what takes place outside the process layer withinenterprise architecture:



" problems that afflict modern organizations are not task problems. They are process problems. reason we are slow to deliver results is not that our people are performing their individual tasks slowly and inefficiently -We are slow because some of our people are performing tasks that need not be done at all to achievedesired result and because we encounter agonizing delays in getting the work from person who does one task to the person who does the next one. In short, our problems lie not in performance of individual tasks and activities, the units of work, but in the processes, howunits fit together in the whole." - Beyond Reengineering by Michael Hammer

SWOT Analysis

Where processes are impacted by both internal and external factors, it can be useful to apply SWOT - Strengths, Weaknesses, Opportunities, and Threats. SWOT Analysis is a standard tool used by all types of analyst for identifying major strategic issues. SWOT can be used at any organizational level - function, department, group, etc. SWOT is defined as:

- Strength: Any existing or potential resource or capability withinorganization that provides a competitive advantage inmarket.
- Weakness: Any existing or potential internal force that could serve as a barrier to maintaining or achieving a competitive advantage inmarket.
- Opportunity: Any existing or potential force inexternal environment that, if properly exploited, could provide a competitive advantage.
- Threat: Any existing or potential force inexternal environment that could inhibit the maintenance or attainment of a competitive advantage.
You can also fast track the assessment process by simply doing a simple T list ofpluses and minuses.

Root Cause Analysis

Root Cause Analysis is used to clearly understand what’s driving or causing a problem. key is to identify the factors influencingeffect you are starting with. One way to jump startanalysis is to look at:

- 4 M’s: Methods, Manpower, Materials, Machinery
- 4 P’s: Policies, Procedures, People, Plant

Root Cause Analysis is often expressed inform of a fishbone diagram. steps for doing the diagram are:

1. Specifyeffect to be analyzed. effect can be positive (objectives) or negative (problems). Place it in a box onright side of the diagram.



2. List the major categories of the factors that influenceeffect being studied. Use the "4 Ms" (methods, manpower, materials, machinery) or "4 Ps" (policies, procedures, people, plant) as a starting point.



3. Identify factors and sub factors. Use an idea-generating technique to identifyfactors and sub factors within each major category. An easy way to begin is to use the major categories as a catalyst. For example, "What policies are causing�?"



4. Identify significant factors. Look for factors that appear repeatedly and list them. Also, list those factors that have a significant effect, based ondata available.

5. Prioritize your list of causes. Keep in mind thatlocation of a cause in your diagram is not an indicator of its importance. A sub factor may be the root cause to all of your problems. You may also decide to collect more data on a factor that had not been previously identified.

A less formal approach to root cause analysis is to simply useFive Whys technique. With each reiteration of why (say five times), you pull out additional information that possibly helps you identifyroot cause of a problem.

Pareto Chart

In order to focus on significant problems, you can rankimportance in descending order of occurrence. This is typically done using the Pareto Chart. In order to chart problems, you must:

1. Identifyproblems that need to be ranked.
2. Use a standard measurement for ranking, such as frequency, costs, etc.
3. Determinetime frame for evaluating the problems.
4. Collectdata from existing reports or use new data.
5. Label the units of measure on the left vertical axis and labelproblem areas on the horizontal axis.
6. Plot the data, showingdescending order from left to right.

Process Mapping

Process Mapping is regularly used to depictflow of major activities within a process. Process maps range from simple block diagrams to more elaborate swim type diagrams showing the "swimming" flows to and from major functional or organizational units that play a role withinprocess.

In order to flowchart or map a process, you will need to understandactivities, what triggersactivity (inputs), who is involved, the sequential steps, and the outputs associated with the steps. This will require interviewing people assigned to doingactivities. You will also need to examine documents, such as desk procedures, work flow diagrams, and other documents that help describe howprocess works.

Process maps allow you to seebig picture, clarifying sub-processes, sequences, and activities. Process maps should be prepared showing critical information flows and different players involved. Where possible, it is useful to document cycle times in different steps; especially wait times. Once completed, you can useprocess map to answer certain critical questions:

1. Can we eliminate or reduce certain activities?
2. Can we complete the process in less time by changingprocess?
3. Can we improve how we meet customer requirements by changing the process?

Finally, if you are unsure what processes to map, start with those processes that have high impact in terms of costs, time, resources consumed or waste. Core processes are sometimes easier to map due to existing documentation and easy access tointernal players as opposed to external players.

Brainstorming

Brainstorming is used to generate ideas without any real regard formerit of the ideas. You can evaluate the ideas afterbrainstorming session is over. Here are some basic guidelines to follow:

1. Start with a clear definition of what it is you are trying to solve.
2. Make sure everyone understandsproblem or issue.
3. Write down all ideas and don’t judge anything submitted.
4. Give everyone a chance to participate and express opinions.
5. Try not to be too formal, but impose some structure to ensure the brainstorming session is productive.
6. Don’t get discouraged if the brainstorming session starts off slow - best ideas usually get generated at the end of the session.
7. Try to write down all ideas exactly as they are submitted by participants.
8. Make sure you have a broad mix of people inbrainstorming session - process owners, customers, vendors, subject matter experts, etc.

One ofbiggest misconceptions about brainstorming has to do with group brainstorming. Some of the best ideas come out of individual brainstorming where each individual has time to think aboutproblem and submit comments separately. It’s also useful to have a "culture" that nourishes ideas. This provides a natural environment for highly productive brainstorming.

Storyboarding

Storyboarding is a visual approach to brainstorming. Like brainstorming, it attempts to organize multiple ideas and concepts. Unlike brainstorming, it tends to be less structured, allowing for more open participation by anyone who can help getgroup to a common idea. Storyboarding will also require that you group and categorize ideas since you want to visually show how things work. For example, you might show initial events or activities off toupper left on a large white board and then work your way down, visually showing how things flow downward.

To make sure you can storyboard, you’ll need large white boards or butcher paper as well as markers, cards, and other supplies to help illustrate your concept. Use different colors to group and organize common elements. You can take a digital photo ofoutput and refer back to it for later development.

"A process cannot be changed unless allsupporting elements are changed as well. Therefore an essential early step of a reengineering effort is to clearly identify and quantify all ofresources in a corporation that are dedicated to each specific process." -

Force Field Analysis

Force field analysis is used to visually show relationships that help or hinder a solution to a problem. Force field analysis provides a quick list of factors that influence your objective. Here arebasic steps:

1. Defineproblem or objective that you are analyzing.
2. Listforces that impact or influence your problem. Use an idea generating technique like brainstorming.
3. Assign weights or priorities to each force on your list. Place heavier weights on those forces that havehighest impact.
4. Manage based onlist - try to reduce the negative forces and maximize the positive forces to solveproblem.
Focus your efforts on those forces that are easy to implement and yet atsame time, they produce high results. Listed below is an example of how force field analysis is used to help someone stop smoking:

Value Analysis

One ofmost important techniques for improving a process is to make a distinction between value added and non value added activities. Value analysis summarizes all activities between value added and non value added. This distinction is made as follows:



In order to organize your analysis, construct a table with three columns - listing your activities in column 1, denotingactivity as Value Added or Non-Value Added in column 2 and a description or comment on whyactivity was classified as Value Added or Non-Value Added in column 3. If possible, try to estimatecosts of each activity so you can prioritize your analysis for further action. goal is to optimize the value-added activities so they are lean and reduce or eliminatenon-value added activities. Listed below is an example for a Receiving Department:

Issues Analysis

It is often useful to break a problem down into components. Issue analysis is used to define elements of a problem and show these elements in some logical way. This is often accomplished by using an issue tree:



You can useissue tree to show sub-processes at different levels with the process or activity above flowing intolower one. Some key points to consider:

- UseIssue Tree to guide you into underlying root causes.
- Look for duplication betweenactivities within the Issue Tree.
- Validate relationships between problem components by involving process owners and other stakeholders.

Solutions Rating Matrix

solution rating matrix is a process for weighing allpossible solutions against a predetermined set of criteria or rules. Examples of criteria or rules for weighting include: - Ease of implementation
- Effectiveness of solution
- Probability of success
- Resistance to solution
- Cost

Make sure your weights total up to 100%. Now organize your solutions into a matrix and rate each solution on a scale from 1 to 10. Finally, you can multiplyrating scores by the weighting percentages to arrive attotal score. Listed below is a simple example of a solutions matrix for deciding which automobile you should purchase. Based on five criteria, Car "B" isselected choice:

Trend Analysis

One ofbasic tools in evaluating a process is to look at trends. Most trends are reported in a time series graph. This allows a comparison, prompting action on unfavorable trends and recognizingneed to adjust targets on constant favorable trends. basic steps for trend analysis are:

1. Select a specific process, sub-process or activity with outputs.
2. Collect the measurement data onoutputs over consistent time intervals.
3. Monitor performance and see if you need to adjustprocess, sub-process, or activity to change performance.

A few tips to consider when doing trend analysis:

- best outputs or measurements are usually linked to customer needs.
- Collect your measurements at good time intervals that facilitateright degree of management control. Measurements that are too late are useless to managers. Constantly measuringsame things over and over with no corresponding action is also useless.

Simple Example of Trend Line Analysis

Project Management

Much of the work that goes behind improving a process has to do with good project management practices. Larger type initiatives takeform of a formal project, especially Six Sigma type projects. Therefore, sound project management practices are extremely important for major process improvement projects. Here are some important concepts to consider:

- Define your scope for improving a project by breakingscope down into workable elements that you can manage. This is usually accomplished inform of aWork Breakdown Structure, allowing you to delegate activities and tasks to other team members. You need this structure for managing all of the components that make up the project.
- Develop a work schedule for major milestones throughoutexpected life cycle of the project. This work schedule should include your expected costs as well as anticipated start and completion dates.
- Where the stakes and costs are high, consider including a risk management plan as part of how you manage the project. Risk Plan should address "what if" situations that may arise during the course of project.
- Another useful plan to include is a quality assurance plan. You need to have control checks in place to make sure things are getting done right.
- Although it can be somewhat subjective, many executives will probably want some form of cost benefit analysis, showingReturn on Investment for the project. It’s also useful to include a Net Present Value in your business case forproject.
- After you completeproject, you need to conduct a post implementation audit, determining if the project met its original objective and goals. You also want to flush out lessons learned for executing future projects.

NOTE: Short Course 6 provides much more in-depth coverage on project management, including information on how to build a detail project plan and measure project performance.