Matakuliah
Tahun
: M0734-Business Process Reenginering
: 2010
The Development of BPR
Pertemuan 5
The Development of BPR
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Elaboration Phase :
Why ?
How ?
Outputs
Risks
Elaboration Phase
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Why ?
Project Team members gain sufficient understanding
and elaboration of the current processes to be able
to improve the processes in the Improvement Phase
• Collection appropriate metrics to gain further understanding
• Prioritizing for improvement/redesign
• Base lining based on current status
Use this phase to :
• Focus on the ‘What-is’, not the ‘What-if’
• Elaborate and understand current processes – do not overDetail document the processes
• Prioritize Improvements on the processes
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How ?
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Step 1 :
Communications
To provide information to the stakeholders and
people within the organization about the project, the
objectives, how people will be involved and when
they will be involved in the Elaboration phase
Stakeholders will be actively engaged in this phase
and will be answering questions about their current
process activities and associated metrics
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Step 2 :
Elaboration Workshops
To ensure a common understanding of the facts
about the current processes
To analyze whether improvement is possible, or even
necessary
To assist with an understanding of the process
interactions and impacts upon other processes
within the organization
To understand and document the interfaces to
existing legacy system and applications, which will
be essential for the Improvement phase
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Step 2 :
Elaboration Workshops
Schedule workshops early and conveniently
• Schedule them well ahead to ensure that Subject Matter Experts (SME) are
available
• Allow some contingency in the number of workshops scheduled
• Specify the length of workshops (no longer than three hours)
‘Framing’ Participants
• Set expectations of project sponsor and participants
• Discuss and agree on format and purpose of the workshop
• Outline the broad format of the workshop, role of participants, expectations,
and purpose of the workshop
Conduct the workshops – structured and controlled
• Attended by executor (or team leader) of processes, not managers who think
they know the processes
• Use the agreed modeling standard
• Stick to scheduled time and timeframes
• Avoid ‘the power of one’ – dominance of a single person within the workshop
• Avoid too much details, focus on getting just enough information
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Step 3 :
Metrics Analysis
Purpose :
• To assist in the understanding of the process(es) and their impact upon the organization
• To provide prioritization for further investigation
• To provide a baseline for comparative purposes with the Improvement phase of the project
Information collected :
• Transactional information – volumes, which role completes the tasks, and the proc
• Transactional data to reconcile against the resourcing levels within each process a
reasonability of processing times and volumes, and to identify any additional proce
• Direct labor cost per process, which is calculated based on task time, process tran
and labor recovery rates → ABC (Activity-based Costing)
• IT costs and other overheads allocated to the process, based on daily task time
How the metrics are collected :
• During workshops
• By interviewing management and staff to validate the information gained during
workshop
• By various surveys and questionnaires
• From management reports
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Step 3 :
Metrics Analysis
Activity-based Costing (ABC)
Sample simplified costing matrix (reproduced with the permission of MPM Group Pty Ltd, trading as TouchPoint
Process Management Services)
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Step 4 :
Root Cause Analysis
Purpose :
• To find the actual ‘root’ cause of an issue or non-performing process
• Process can not be improved without addressing the root cause of the issue
How ?
• Elaboration workshops
• Observation, investigation, analysis and speaking to daily executors of the processes
Questions to ask :
• Where are the errors or rework coming from?
• Is this being caused by other process(es)?
• Is the information being received correctly?
• If not, what can be done to rectify the situation?
• Do the staff executing this process have the skills to complete it?
• Could the forms being used be better designed?
• Does the organization have sufficient capacity to complete this process to the desired
standard?
• Are staff idle?
• Do the steps in the process add value to the stakeholder requirements and goals of the
process?
• Are the steps in the process being completed in the appropriate sequence?
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Step 5 :
People Capability Matrix
Purpose :
• To provide useful information about both the current and future environment and
capability of staff
How ?
• Identify key processes
• Identify knowledge capabilities/skills required
• Assign a rating on the matrix
Questions to ask :
•
•
•
•
Look at the current people capability versus the future needs
Do it from a ‘big picture’ level, not at a person level, at this phase of the project
Review role description areas at a high level
Review people core competency enhancement requirements
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Step 5 :
People Capability Matrix
Filled with number 0 – 4
People Capability Matrix (reproduced with the permission of MPM Group Pty Ltd, trading as TouchPoint Process
Management Services)
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Step 6 :
Available Information
Purpose :
• To gain an understanding, within the project scope, of the currently available information
within the organization
Types
• Tacit human, education, experience (basically, in people’s ‘heads’ and not documented
within the organization)
• Explicit documented knowledge within the organization. Documentation can include the
knowledge built into automated solutions, such as workflow or application systems
How?
• Elaboration workshops
• Discussions with related parties
• Develop a matrix of Key Processes vs. Information Categories and identify the information
sources related to the processes
• Knowledge is categorized into two classifications :
• Tacit human knowledge
• Explicit document knowledge
• For explicit document knowledge, a clear location and storage of the documents/manuals
need to be identified for future reference
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Step 6 :
Available Information
Knowledge and information need map
People Capability Matrix (reproduced with the permission of MPM Group Pty Ltd, trading as TouchPoint Process
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Management Services)
Step 7 :
Improvement Priorities
Purpose :
• To clarify which areas of business and processes that can be improved and allow fo
quick wins
Possible Prioritization Outcome
•
•
•
•
•
•
•
•
Leaving the process(es) as it is – it is good enough
Improving – which means the process(es) needs ‘tweaking’ or small changes only
Amalgamating with other process(es)
Redesigning – starting with a blank sheet of paper
Total improvement – thinking outside the ‘box’ and making radical changes
Outsourcing
Insourcing
Eliminating the process
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Step 8 :
Quick Wins
Purpose :
• To find quick wins to easily justify that the project is self-funding and has
immediate
impact on the business
How?
• Revisit these quick wins via workshops with the business, validate them in
more detail and
prioritize them for implementation
• Validate the feasibility of implementation; ensuring that the quick wins are costeffective
(that is, the cost of development and implementation does not outweigh the
benefits to be
gained), and that they will be useful and efficient solutions for the business
• Once this has been validated, document the proposed solution(s) for approval
by
stakeholders (internal and external)
• After approval is obtained, finalize and execute a more detailed development
and
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implementation plan
Outputs
 Process models of the current processes
 Appropriate metrics to establish a baseline for
future improvement
 Measurement and documentation of the current
or actual performance
 Documentation of what works well and what
could work better
 Identification of any ‘quick wins’
 A report on the phase :
 The purpose of the elaboration phase
 The process issues found during the
workshops
 A list of stakeholders and their relevance to
the project
 Findings :
• Current process(es)
• Metrics
• Identified quick wins
 A suggested improvement phase
prioritization
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Risks
Risks
Mitigation Strategy
Processes are not reviewed
Ensure the review is end-to-end, go back project sponsor for
Workshops over-run
Plan workshop carefully, follow the plan carefully and make sure the
achieved
Workshop modeling is too
Make sure to aim to model only in sufficient detail to get common
improvement, do not overkill
Workshop participants do not
understanding of the processes
Go back to business and discuss about it, change workshop
Metrics analysis is too detailed
Do not analyze metrics too detail, only aim for sufficient information
commence
No metrics gathered
Go back to project sponsor if necessary to get the necessary data
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