Business System Requirement Analysis (BSRA)

Business System Requirement Analysis (BSRA)
(Business Process Redesign)
DAMA 2010
Presented by: Arvind D. Shah, Managing Principal Performance Development Corporation Princeton, NJ 08540 (609)443 -1226 ads1@perfdev.com www.perfdev.com
9/17/2010
Performance Development Corporation, 2002. All Rights Reserved.
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History of Accomplishments History of Accomplishments

Performance Development Corporation (PDC) is recognized internationally for assisting hundreds of clients in achieving business benefits from advanced technologies. PDC has made significant contributions through a series of notable omplishments including: Model Driven Enterprise Information Integration (2005) CRM article published in the Journal of International nstitute of CRM (UK ) (2003)
Business Process Redesign Handbook (1997)

Introduced comprehensive Change Management seminar and ology(1994)
Integrated Business Reengineering, Total Quality Management, and Information Engineering methodologies (1991)
Information Strategy Planning Handbook (1990) The Management Handbook for Information and End User Computing (1988) Relational Development Environment Guide (1987)
Started the industry-leading Data Base Newsletter (1979) Developed Data Administration concept (1976) Developed Service Analysis - a methodology for defining end user requirements (1975) Published Comparative Analysis of Data Base Management Systems (1973)
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Mission Mission
Enable our customers to clarify and/or achieve their business go als through the gainful use of knowledge, technology and change methods and techniques.
PDC helps its clients accelerate their move to new bus s environments through knowledge and technology enabled management. e assist clients as they seek to clarify and implement business rategy in advanced technology environments. We help management ensure that the business drives the process and that technology pr ides practical value within a changing organizational culture.
New Business Environment Technology Enabler and Driver
Pstc Da Cn Ae i s
Old Business Environment Empowered Management
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Partial Client List Partial Client List

Manufacturing
Abitibi-Price(Canada) ALCOA Ciba-Geigy EBSCO Eli Lilly and Company FMC Corporation General Motors Hallmark Cards IBM Iron Ore Company(Canada) Lockheed Merck and Company Nycomed(Norway) Philip Morris Toshiba(Japan) United Biscuits (UK) Weyerhaeuser
Financial /Insurance
Abbey National Bank(UK) American Express Bank of America Bank of Delaware Blue Cross/Blue Shield Dow Jones Fireman's Fund Insurance JCPenny Life Johnson and Higgins Kemper Insurance Providian Insurance Transamerica Insurance UNUM Insurance USF&G
Federal, State, Local Government

Atomic Energy (UK) Belmont County, OH Calgary(Canada) City Canada Post (Canada) Delaware Department of Finance Montgomery County, MD New Hampshire Dept. HHS New Jersey Motor Vehicle Services New Jersey OTIS South Dakota Dept. of Transportation Wisconsin Dept. of Transportation US Agency International Development US Central Intelligence Agency US Department of Energy US Naval Facilities Engineering
Petroleum
Exxon Getty - Texaco Indian Oil (India) Mobil Oil Norsk-Hydro (Norway) Shell Oil Sun Oil
Transportation
Leaseway Mayflower
Utilities
AT&T Boston Edison Carolina Power and Light GTE National Fuel Gas Nebraska Public Power District NYNEX Oglethorpe Power Southern California Gas Southwestern Bell Telephone United Telephone
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Education
Cornell University Duke University University of Michigan National Education Association
Retail
Compucenter(Brazil) Giant Foods Sainsbury(UK) Thorn-EMI(UK) Venture Stores
Service
American Bible Society CH2M Hill Young & Rubicam (UK)
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Consulting Services Consulting Services

Our scope of consulting and education services is in a constant state of evolution due to the introduction of new management techniques and advanced technologies and their proven viability in the marketplace. PDC currently provides consulting, e on and placement expertise in the following areas: Management Business Process Reengineering Customer Relations Management Information Strategy Planning Enterprise Architecture Planning Visioning and Managing Change Data Management/governance Disaster Contingency Planning Technology IT Restructuring Technology Architectures and Selection Business Area Analysis Process/Data Modeling IRM for Emerging Technologies Data Warehousing Internet/Intranet/Extranet
Implementation Turnkey Systems Project Management E-Commerce Development Offshore Development Quality Assurance
Professional Services Executive Search Permanent Recruiting Contract Services
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Education Services Education Services

Effective on-site education course offerings have always been a top priority at PDC. Thousands of individuals have attended our seminars, normally offered in one, two and three day formats. These may be condensed to short management presentations. Our current course titles include:
Business Reengineering (2 days) Provides an intensive, management -oriented overview based on extensive experience and the dramatic results achieved. Business Process Redesign (3 days) Shows how to redesign business processes to increase profits, productivity, competitiveness and customer service. Information Strategy Planning (3 days) Describes managing business success through defining organization information needs and priorities in a structured manner. Business Area Analysis (3 days) Shows how to analyze business requirements using data modeling, process modeling, and information engineering techniques. Managing the Data Warehouse Commitment (2 days) Illustrates business driven approaches to utilizing information assets. Change Management (3 days) Shows how to integrate change in people, systems and s tures.
Information Resource Management (2 days) Illustrates how to use Data Sharing and Data Availability to accomplish the business improvement objectives. Data Modeling (2 days) Explains different levels of Data Modeling that play an important role during the Planning (ISP), Analysis (BAA) and Design (BSD) phases.
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Arvind D. Shah Managing Principal

Mr. Shah is a Managing Principal of Performance Development Corporation and is known internationally as a speaker and authority. Mr. Shah has over thirty years of broad experience, assisting and leading efforts in Strategic Planning, Change Management, Business Reengineering, Information Engineering, Information Strategy Planning, Data Administration, Data Warehousing, and Project Management for major corporations worldwide. His consulting has involved virtually all facets of business and governme broad range of applications. Mr. Shah's principal interests have been focused on the end user and managerial aspects of Information Technology. He developed PDCs approach to blending Business Reengineering, Total Quality Management (TQM) and Information Engineering. He has also developed management principles to integrate the front end Internet and client/server environments with the back end mainframe computing. Prior to joining PDC, Mr. Shah was with Dow Chemical, General Electric, Exxon and Corning Glass. He was responsible for project management and design, develop d implementation of IT applications in the areas of customer service, finance and accounting, sales order ocessing and invoicing, inventory management, facilities planning, management information, profit planning, sales forecasting, and material management systems. He has extensive experience with decision support systems and data warehousing. His experience includes:
Business Reengineering
Developed a Business Process Redesign Methodology that blended Business Reengineering, TQM, and Information Engineering. Applied Business Reengineering techniques to significantly reduce the Procurement Cycle for parts and equipment in a Mining organization. Decreased the Order Processing and Billing cycle from seven days to one half day through Business Reengineering for a large Textile company. Guided a major Insurance company in the area of Claims Processing, reducing manpower by 60% while increasing customer service and responsiveness with an overall payback completed in less than two years. Headed a project to develop a business reengineering strategy development project for a technology service company. The deliverables included a plan that blended Business Reengineering and Information Engineering. Assisted a major pharmaceutical firm in reengineering their sales force consisting of 2000 sales persons. The team consisted of the client as well as consultant staff.
Information Engineering Mr. Shah has directed or assisted over 100 projects involving Information Strategy Plans (ISP s), Business Area Analysis (BAA), Data Warehouse, Information Resource Management and other aspects of planning, design and implementation of information systems for major Fortune 1000 size commercial organizations and government agencies.
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Reengineering of the Information Technology Services (IS) Function Guided the restructuring of the IS Function for a strategic business unit of a Fortune 1000 sizes global telecommunications firm. The objective was to prepare for planned business reengineering projects. Assisted a division of a major Pharmaceutical company the reorganization of its IS function. The objective was to build systems using Information Engineering and Client Server Technologies. Directed a project which involved restructuring the IS function of a Public Utility company. The objective was to transform the IS organization into a mature organization capable of capitalizing on new technologies while being responsive to business needs. The impetus was to incorporate Planning, Business Reengineering and TQM in all their projects. Clients Served AT&T National Fuel Gas Capital Holdings/National Liberty Navy Federal Credit Union Southwestern Bell CH2M Hill, Inc. State of Delaware United Biscuits (UK) GTE Thorn EMI (UK) FMC Iron Ore (Canada) National Computer Center (Brazil)
Education
Nebraska Public Power District Eli Lilly National Fuel Gas Rodale Press Unionmutual Insurance Co. Getty/Texaco Oil Naval Facilities Engineering Command Venture Stores AP Technoglass State of New Jersey University of Michigan Toshiba (Japan) Nycomed (Norway)
BS, Electrical Engineering, University of Bombay MS, Electrical Engineering, Ohio State University MBA, Information Systems, College of William and Mary
P ublications
Co-authored the following books: The Management Handbook for Information Center and End User Computing, published in 1988 by QED Information Sciences The Information Strategy Planning Handbook, published in 1990 by Performance Development Corporation The Business Process Redesign Methodology Handbook published in 1999 by Performance Development Corporation
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Business Systems Requirement Analysis Business Systems Requirement Analysis

(Systematically integrating process, data and business rules) (Systematically integrating process, data and business rules)
As the bridge from Planning to Design, Business System Requirement Analysis (BSRA) builds upon the results of Enterprise Architecture or Information Strategy Planning to document business system requirements. To be successful, you need a comprehensive methodology which is flexible as well as replicable in addition to modeling tools and techniques. A BSRA project is usually initiated from two sources. It could come from systems planning or be initiated to address a specific business need. In either case it is important that current processes and data sources are analyzed and business rules are extracted and documented. Equally important is to improve process in order to solve the current system problems and take advantage of the new system features. No project can succeed if business analysts did not participate in the business system analysis. The data gathering, validation and approval e key steps for delivering a system that meets business needs. The project must have mile at which point senior management is involved in decision making. This presentation includes the discussion of the methodology that evolved over 30 years of PDCs consulting experience. The methodology integrates the aspects of enterprise architecture, information engineering and business process as well as quality management.
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1. The BSRA Methodology 2. How to plan and scope the project for on-time delivery of quality results 3. How to gather and document Requirements 4. How to integrate Process and Data 5. How to redesign processes 6. How to blend Quality Management 7. How to develop a transition plan 8. How to get management and users involved 9. How to apply this approach to Data Management Processes
BSRA
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System Development Life Cycle (SDLC)
Scope
Detail
Information Strategy Planning Business Sys. Req. Analysts Business System Design Technical System Design Implementation
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BSRA Methodology Overview

1. Plan the Project 2. Get Management Input 4. Develop Top-Down Process Model 5. Analyze Current Processes 6. Define Data Needs
Plan Analyze
7. Resolve P roblems
8. Redesign Processes 9. Finalize Data Model 10. Document Business Rules
Redesign
11. Prototype Processes 12. Incorporate Quality Management
Plan Transition
13. Perform Cost/Benefit/Risk Analysis

14. Develop Transition Plan
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BSRA Deliverables
Process Documentation Process Charts current & proposed Process Profiles current & proposed Information Sources current & propose Highlight Changes Data Model DM Charts Entity/Attribute Profiles Data Definition changes Data Conversion Required Business Rules Current & Proposed Highlight changes Technology Assumptions Cost/Benefit/Risk Analysis Process/System Implementation Plan
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Plan Analyze
Redesign
Plan Transition

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Task 1. Plan the Redesign Project

Subtasks
1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 Define/refine project scope Select project team Secure Facilities Develop project schedule Allocate resources Define deliverables Prepare documentation system Obtain management approval
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Importance of Scoping
u Puts fence around project u Sets Stakeholder expectations u Data Self-sufficiency u Size selected will be appropriate u Timeframe is defined
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Business Areas / Systems Dependency Chart

20% 20%
Promotion
40%
20%
13%
Guest Information
17%
10% 10% 10% 17%
20%
Human Resource
13% 25% 13%
25% 17% 34%
Facilities Management
10%
Reservation
33% 13% 13%
Menu Information
25% 13% 25%
Ordering
25% 13% 40% 14%
20% 20%
Billing
20%
Purchasing
14% 42% 14%
10% 34% 17%
17% 33% 17%
Trend Analysis
Cash Monitoring
17%
NOTE: Percentages refer to the percentage of information classes created by another system.
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Business Process Redesign Project

Executive Sponsor Management Steering Committee Project Manager BPR & Quality Mgmt. Experts
Technology Experts
Project Team A
Data Analyst
Project Team B
Note: The project must report to the highest possible level management; otherwise the results are diluted.
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Who Gets What Kind of Education and Training?

Management and Client
One-two hour overviews Brief education at milestone meetings
Project Team
Team-building training in the beginning Three day workshop training Periodic reinforcement training at beginning of each major task
Client Representatives
Four hour overview Brief training when needed
Documentor(s)
One day documentation training and methodology review
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Interview Estimating
2 hours for preparation 2 hours for interview 2 hours for debriefing/documentation
6 hours
q For every interview hour, provide two hours for preparation and review. q Immediate documentation after interview is recommended. q In cases where travel is involved, concentrated period of interviewing must be followed by appropriate time for documentation and cleanup.
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Focus Group Session Estimating

+ Usually 1/2 or 1 day session. + 6 - 12 participants. + Limited to single topic. + 1/2 day session will require 1/2 day preparation and documentation. + Focus group technique approximately 30% faster than interviewing. + Focus group sessions allow all interested partners to build consensus on models and issues, so less time is requir for cleanup and integration.
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BSRA Project Plan

Task
1. P lan the Redesign P roject 2. Define P roject Expectations 3. Benchmark P rocesses 4. Develop Top-Down Conceptual P rocess M odel 5. Analyze Current P rocesses 6. Define Information Needs 7. Redesign the P rocess 8. P rototype the P rocess 9. Incorporate Quality M anagement 10. Analyze Technological Requirements 11. Determine Organizational Impact 12. Address Human Resources Issues 13. Perform Cost/Benefit/Risk Ana lysis 14. Develop Transition P lan Milestones -Senior Management Project Review - Middle Management Approval
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12
14
16
18
22
Week
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Documentation System
& Process & Data & Business Rules & Systems/technology & Problems/solutions & Data gathering & Communication requirements
Remember a fool is still a fool with a tool

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Project Initiation
Management Role
o Initiate commitment o Continue education o Combine with overview session o Ask for frequent participation o Solicit departmental support while seeking approval o Announcement of project from Chief Executive Officer
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Plan Analyze
Redesign
Plan Transition

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Process Definition
A collection of prescribed activities, which, when performed, add value to product or service Produces distinct deliverable whose quality can be measured Has a beginning and end Usually repetitive At high level is cross functional At low level is within a function
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Business Process Model

(High level processes are logical functions)
Manage Restaurant
Perform Strategic Planning
Manage Guest Relations
Manage Cuisine Preparation
Manage Food Operations
Manage Human Resources
Manage Facilities
Measure Operations
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Process Decomposition Diagram

(Lowest level process) Example
Take a
Hot Tub
Heat Tub
Remove
Clothes
Prepare
for Tub
Enjoy Tub
Prepare
to Leave
Leave Tub
Check Water
Turn on Heater
Turn off Heater
Collect Toys
Call for
Champagne
Find Ball for Dog
Call fo r
Towel
Call fo r More
Champagne
Drink Champagne
Take off Shoes & Socks
Remove
Hat
Take off Tie
Play with Toys
Drink
Throw Ball
Champagne
for Dog
Call fo r Throw Dog More in Tub Champagne
Dry Self
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Process Profile Content

Objective
Description
-------------------------------------[ [ [ [ [ [ [ [ [ [ [ [
Stakeholder Deliverable/Output Trigger Input Quality Criteria Value Added Information Needed Organizations (participating) Frequency Volume Availability (response time) Related Process -Prerequisite -Post -requisite [ Tasks [ Problems [ Current system support
Some of these will be developed during project

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Process Profile Example

Process: Guest Services
Objective: Description:
Satisfy diners request as appropriate to current demand
All activities involving resolving time and place for diner, seating, presenting cuisine, meal, and bill ---------------------------------------------------------------------------------------------------------------------(Gather the following information only if easily available) Stakeholders: Deliverables/ Output: Trigger: Diner, Maitre D, waiter, chef
-------
Seated diners, minimal vacant table time, bill Diner calls for reservation
Input:
Quality Value Added:
Request for diner

Customer satisfaction, vacant table time, accepted order Increase patron loyalty, increase repeat business
Information Needed:
Participating Organizations:
Patron information, seating availability, menu
Guest services, food operations
Frequency: Cost:
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1. Plan the Redesign Project 3. Benchmark Processes 2. Define Project Expectations 4. Develop Top-Down Conceptual Process Model 5. Analyze Current Processes 7. Redesign the Process 6. Define Information Needs
8. Prototype the Process
9. Incorporate Process Quality Management

11. Determine Organizational Impact 12. Address Human Resource Issues
10. Analyze Technology Requirements

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Current Process Model

View of current business processes
v v v v v v v v
Who performs? Where is done? What is done? Why it is done? Timing of processes Tools used Documents used or produced Problems and their significance
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Current Process Model Data Gathering

Sources Process managers Process performers - doers Current process documentation (e.g. job performance aids) Techniques Interviews Focus Groups Structured Analysis
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Document Current Processes

Data Gathering Steps
Summarize major activities performed by interviewee:
Capture the process flow involved
List all the activities and repeat to confirm your understanding Review each activity in detail:
Concentrate on the data sources used Ask for copies of each source Mark on the source documents the data used
Discuss any data source not yet accounted for:

For reports, concentrate on usages Watch for information exchanges by telephone/email
Ask about problems; Invite suggestions for improvements

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Data Gathering Suggestions
Use top-down conceptual model and profile from Task 4 as guideline and verification of completeness. Dont take anything for granted; there is no such thing as question.
Keep the interview on track. Ask an appropriate question when you think the interviewee is going off the subject.
Dont fill out forms in front of users.
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Workflow Diagram
(good for management presentation)
Acquire Ingredients
Pay Invoice
Purchasing
Order Ingredients
Vendor
Release Order
Send invoice
Accounting Department
La Nouvelle Grabbague
Store Ingredients
Ship Ingredients
Vendor Warehouse
Forward Receiving Document
Storeroom
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Process Chart
Hierarchical View
Acquire material
O/P Receive materials materials
Pay
Process Flow View

Order materials Receive materials Pay for materials
Vendor
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Process Map
Acquire Ingredients
Stakeholder Employee
Initiates Requisition Generates PO
Buyer approves sub.
Buyer
Vendor
Receives PO
Calls for substitution
Ship product
Warehouse
Receives product
Time
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Current Materials Acquisition Process Chart
Purchase Order
Ordering
Purchasing
Vendor
Purchase Order Shipping Document
Receiving.
Process Requisition
Requisition
Issue Purchase Order
Ship Order
Receive Shipment
Purchase Order
Invoice Receipt
Payment
Pay Vendor
Approved Invoice
Reconcile for Payment
Accounting
Organization Manual output Automated output
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Example
Process Profile
Name: Objective: Description: Stakeholder: Output: Trigger: Input: Metrics: Value Added: Data Needed: Frequency: Response Time: Volume: Problems: Pay Vendor To fulfill contractual obligations to the vendor per the contract for goods and materials received. Printing and transmitting a check after receipt of app on the date computed based on the payment terms. Vendor, Accounts Payable Payment Check Scheduled payment date Approved Vendor Invoice, Vendor Contract, Receipt, Purchase O rde r None Fulfillment of Vendor Contract Vendor, Vendor Contract, Vendor Invoice, Payment (Date, Amount, Bank) Weekly 2 hours 500 payments Payment errors in discount calculations ved Vendor Invoice
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Process Analysis
Vendor
Stakeholders
Staff
Custom er Pl anni ng Personnel Accounti ng M ai ntenance Wai ters Orderi ng M aitre d' Wi ne Stew ard Chef
Process
Operatio ns La No uvelle Grabbague An al yze Trends Revi ew Lo cal M arket Ado pt Ch anges Process Reservation Enter Order Present Cuisi ne Present Bill Recei ve Order Schedule Order Prepare Courses An al yze Usage Forecast Requirements Pl an M enu Acqui re Ing redi ents M ai ntai n Ingredient Inventory Pl an Staff Acqui re Staff Trai n Staff Schedule Staff Eval uate Staff P erfo rm ance Inspect F acilities Pl an M ai ntenance Perform M ai ntenance Procure F acilities and Eq ui pm ent Acqui re & M ai ntai n Info S ystems Recei ve Monies P ay M o nies Update General Ledger Perform Cash M anagement M o nitor Fi nanci al Perform ance PO PE = = Process Ow ner Perform ance BO BO BO PO PO PO PO PE SU BO BO BO PE PE PE SU
SU BO BO SU BO BO PO PO PO PO BO
PO
SU
SU
PO
PO PO PO PO PO PO BO SU = = B oth Policy and P erform ance Support
BO BO BO BO BO PE
SU SU
PE PE PE PE PE
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How to Use Process/Organization Matrix

Customize to suit your needs The following cell values might make more sense in your business
P= Who is accountable for this process Whose head will be on the block if this process fails
S= A=
Who supports or participates in the process

Who reviews or approves
CD = Who is the direct customer for this process CI =

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Who is the indirect customer for this process

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Identification of Problems
Solicit problems/issues process Identify the stakeholders impacted by the problem Associate with processes Associate with goals Quantify the impact of problem Identify the nature of problem Data-oriented System limitation Human-oriented Store in repository Assign team responsibility
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Problem Worksheet
P repared By: P roject:
Organizational
Data
Not There Not Not Accurate Feasi ble
System Limitation
Not There Not Co rrect Not Feasi ble Unio n
Human
Trai ni ng Policy
Description
Entity
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Inventory of Current Systems

Existing business systems, automated and manual Organizational responsibilities Current files/databases Systems under development Technology platforms Measures of satisfaction/effectiveness
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BPR Methodology Overview

1. Plan the Redesign Project 3. Benchmark Processes 2. Define Project Expectations 4. Develop Top -Down Conceptual Process Model 5. Analyze Current Processes 7. Redesign Processes
6. Define Data Needs
8. Prototype Processes
9. Incorporate Process Quality Management 11. Determine Organizational Impact
10. Analyze Technology Requirements
12. Address Human Resource Issues

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13. Perform Cost/ Benefit/ Risk Analysis

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Reengineer the Process

Inputs
Mission and Goals Problem Analysis Process Data NeedsAnalysis Out-of -the -Box Thinking
Data Needs
Redesigned Process Ideas

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Do you want to just redesign or reengineer the process?
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Business System Requirement Analysis

How does a typical system project start?
Enterprise Architecture planning
Business Need (M&A or Major change)
Outdated system or technology
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Current Situation (example)

Manual Process for Accounts Payable
Purchasing P.O.
Warehouse Receipt Document A/P
Invoice
Check
Vendor
A/P reconciles three documents and prepares checks
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Case 1 Process Automation

Company A Imaging Technology
Purchasing P.O.
Warehouse Receipt Document A/P They are using Imaging Technology but manual reconciliation A/P now:
Invoice
Check
Reconciles three documents Prepares checks

Productivity increased 25%
Vendor
A/P reconciles three documents and prepares checks
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Case 2 process redesign

Company B shares data and automates matching
Purchasing P.O.
Receiving Receipt Data D/B
Receiving and A/P both only add additional data by sharing common P.O. data A/P reconciles well-organized and matched data instead of documents
Productivity increased 50%
Invoice Vendor
Check
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Case 3 Process Reengineered

Company C Reengineers the Process
Only complete shipments accepted Only
Receiving Purchasing P.O. D/B Check Validates Receipt
Purchasing can change a PO Receiving validates the shipment receipt online A/P trusts receiving so no reconciliation necessary No vendor invoice Vendor Productivity increased 100%
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Business Process Reengineering

Policy and Procedures
Organization Processes Business Process Redesign

Customer/Vendor/ Customer/Vendor/ Alliances Alliances
Technology
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Business Process Reengineering

1) Question the validity or need for the process in the broader picture can you totally eliminate it? 2) Can this process be outsourced? 3) If outsourced, how will they organize the process? 4) Can we do internally what the outsourcer could do?
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Refine Process Using Redesign Principles

Question the validity of the process Ensure that all the problems are addressed Can you do the whole process in one step? Capitalize on data sharing Eliminate non -value-added processes. Re-sequence or use parallel processes to improve performa e. Eliminate handoffs (Combine processes.) Replace a specialists function so that non -specialists can handle it with automated decision making business rules. The specialist only handles exceptions. Replace all pre-approvals after -the fact reporting Replace after-the-fact reconciliation with front-end edits, validation, and quality checks. Explore new technologies
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Capitalize on Data Sharing
Steps
Eliminate redundant data entry and storage Maximize data sharing with internal and external stakeholders Refine process design based on data sharing
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Data Sharing Matrix (Process vs Entity)

Entity
General Ledger Invoice Vendor Other Establishment Menu Line Item Ingredients Course Order Bill
Process
Analyze Trends Review Local Market Adopt Changes Process Reservation Enter Order Present Cuisine Present Bill Receive Order Schedule Order Prepare Courses Analyze Usage Forecast Requirements Plan Menu Acquire Ingredients Maintain Ingredient Inventory Plan Staff Acquire Staff Train Staff Schedule Staff Evaluate Staff Performance Inspect Facilities Plan Maintenance Perform Maintenance Procure New Facilities/Equipment Acquire and Maintain Info Systems Receive Monies Pay Monies Update General Ledger Perform Cash Management Monitor Financial Performance B-920 9/17/2010
Staff Furnishings & Equipment Facility Table Reservation Guest R R R R C C C R R C R R
R R C R
R R R R R R R R R R R U C R U R C
C R
R R
C R R U R R R R R R R R
R R R C R
R C R R
C = Create U = Update R = Retrieve D = Delete
R R
R C U U U
R R R R U R R R R R R R Performance Development Corporation, 2002. All Rights Reserved. 58 R R R R R C C U R
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Ensure Problem Resolution

Steps
Review problem analysis summary from Task 5 Add any problems which may be created by the new design Resolve the problems and refine the processes
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Ensure Problem Resolution

Example
Extended Problem Resolution Table

Problem Name
Matching Errors Delivery errors Payment errors High cost Receiving errors
Cause
Accounting practices Partial shipment Matching Labor intensity Lack of training
Prevention
Automate sharable records No partial shipments Eliminate paper
Recommendation
Eliminate paper items Use data base Use data base
Automate process Simplify steps Training & audit Automate validation
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Redesigned Process (Example)

4.5.3 Redesigned Process M ap - PEOSH 1
Agency Employer/ Employee Referrals Extension Requests Referrals DHSS DHSS Case OTC Penalty OTC Follow-Up Prepare Inspection Penalty OTC SH480 SH490 Violations Review & Approve Penalty SH500 Com plaints/ Inquires
Com pliance Officer/ Examiner Central Office Management
Schedule Inspections SH430
Prepare for Inspections SH440
Conduct Inspection SH450
Prepare Reports SH460
Support High Priority Cases SH410 Work Intake/ Complaints SH400
Plan Inspections (Routine & Other) SH420
Gain Approval Review & Approve Cases SH470 No Violations
Violations DHSS Case
CRM
Paym ent Processing
Close Case
Violations Abated
Upper Management
Identify Targeted Areas
Identify Critical Areas Fatalities & 3 or more injuries
Approve General Duty Citation
Approve Penalty
Review Comm ission Superior Court/ OAL
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Redesigned Process
Process Profile (example)
SH50 Process Payment
OBJECTIVE: Provide support for the deposit transmittal of funds from the General Funds to the correct Business Account.
DESCRIPTION Receive all Checks or Internet Payments with Payment Stub containing identifying information for: * Permits, Licenses, Certificates, Registration * Inspection Fees from Insurance Companies * Penalties * Public Record Information Create a transmittal to accounting and deposit payment within 24 hours of receipt into a General Fund Upon notification create a transmittal to move payment om the General Fund into the correct Business Account. Create an invoice for Boiler Inspection Fees owed to NJDOL from Insurance Companies PERFORMER: Payment Processing STAKEHOLDERS/CUSTOMERS: Payment Processing, Accounting, Insurance Companies TRIGGER: Payment Receipt
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Redesigned Process
Process Profile (example) contd.
INPUT: Checks, Internet Payment Payment Stub Insurance Company Inspections OUTPUT: Deposit Transaction Invoice for Inspection Fees DATA USED: EMPLOYER EMPLOYEE VIOLATION INSPECTION PAYMENT DOL ACCOUNT INSURANCE COMPANY INVOICE VOLUME/FREQUENCY: # of Checks received Asbestos 200 -350 a month Boiler 2,000 a month Mines 30 a month
INPUTS from: Employer, Employee Employer, Employee Insurance Company OUTPUT to: Accounting Insurance Company
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Championing a BPR Initiative

Process Profile (example) contd.
BUSINESS SYSTEMS MODULES: Payment Processing Document M anagement Case Tracking/Workflow M anagement POTENTIAL TECHNOLOGY: Web Document M anagement RELATED PROCESSES: To: SH40 Issue Permits, Licenses, and Certificates QUALITY METRICS: % Checks deposited within 24 hours BASELINE PROCESS REFERENCE: 12.4.1.5 M anage Collection of Fees 13.4.2.4 M anage Collection of Fees 14.4.2.7 M anage Collection of Fees SIGNIFICANT CH ANGES: (Will guide business rules) The most significant change in this area is the centralization of Payment Processing and the implementation of Payment Stubs for all Fees and Penalties Tighter controls will ensure Checks are processed within 24 hours All payments will be made via Certified Check or Credit Card Payment on the internet. An interface to the Accounting System will provide better control over transactions processed
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Plan Analyze
Redesign
Plan Transition

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Prototype the Process

Sub-Tasks
8.1 Develop prototypes 8.2 Incorporate technology 8.3 Assess feasibility of redesign process 8.4 Determine skills required 8.5 Review with sponsor
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Prototyping
What to Expect
Proof of concept
Prototyping
Feedback for redesign refinement Insight into downstream activities Feasibility of process Skills that may be required Potential organizational effects
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When to Prototype
Drastic change Complex New processes technology

9/17/2010 Performance Development Corporation, 2002. All Rights Reserved.
Political situation
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Plan Analyze
Redesign
Plan Transition

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Total Quality Management
TQM
Mission: Continuously improve the ability to achieve the quality objectives for products, services, and resources
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Incorporate Quality Management

Tasks:
Define deliverables for a core process Identify customers of each major process (internal/external/ultimate) Define customers expectations and perception of quality Develop metrics for quality of each deliverable Develop metrics for internal quality objective. Incorporate metrics as part of process Incorporate additional entity/attributes Develop continuous improvement mechanism Refine process definitions/profiles
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Develop Metrics
Example
Process Metrics Template

Process
Receive Shipment
Customer
Receiving, Purchasing Accounting
Metrics
Number of Vendor shipments rejected: -for quality
Process Owner
Vendor
-incomplete shipment -wrong shipment

Number of validation errors made by receiving Pay Vendor Vendor Productivity of payments - payments per staff member
Receiving
Accounting
- cycle time
Number of late or incorrect payments
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Refine Data Entities and Processes

Example
Data Entity Refinement Template

Data Entity
Requisition Purchase Order Receipt Payment Attribute Stakeholder Satisfaction (M1) Timeliness Indicatior(M2); Error Code (M3) Shipment Rejection (M4); Receipt Validation (M5) Payment Error Code (M6)
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Process Quality Management

Demings Solution
Plan Do Check Act
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Quality Feedback Process

Quality Standards
Modify
Implement
Output
Monitor and report quality
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Continuous Improvement Mechanism

Apply existing continuous improvement mechanism If Continuous Improvement mechanism does not exist in your organization, use this project to implement it If a new effort is required, provide education and tra ning
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Plan Analyze
Redesign
Plan Transition

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Analyze Technology Requirements

Assessment of hardware, software:
New decision/business rules New internal and external users New process locations New organizational structures, procedures
What is required? Is existing technology sufficient? Is new technology necessary and mature? Any technology required for QM?
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Organizational Readiness for New Technology

Existing technological infrastructure Sophistication of current users Rate at which new technology can be absorbed Ability to conform to new standards Potential training effort Potential support effort New roles Continuous updating of knowledge Continuous upgrading of skills
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Organizational Change Documentation

Policies Procedures Responsibilities for redesigned processes Owner Performer Support Quality assurance
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Organizational Changes Needed

Example
Resource requirements
Relocation of 20 Full Time Equivalents from Accounting.
Organizational structure changes

None immediately; but may position Accounting for futu combining of roles.
Organizational responsibility changes (business rules)

- Receiving accepting shipments authorizes vendor payment, and Accounting no longer does manual reconciliation and focuses more on education and quality assurance for Receiving valid ion. - Receiving employees are empowered to accept or reject shipments and authorize payment. - Vendor must comply to new no invoice and shipment policy.
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Developing a Transition Plan

Process redesign is not complete without a detailed road map that shows how to get to the new environment
Project Implementation Schedule (next steps)

Tasks
Timing Resources
Organization Transition Plan New structures

New reporting relationships Training
Technical Transition H/W, S/W acquisition or development
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Data Conversion
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Potential Problems
Management acceptance and support Stakeholder buy-in
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How to get Buy-in

Executive Management
Define mission, goals, objectives, opportunities and their burning issues 1 hour Presentation Review Redesigned processes related to their expectations
Middle Management
Participate in Top down Process Model Validate current environment documentation Review Redesigned processes related to their expectations Assign priorities in the Transition Plan
User Level
50% of the Team comes from the user side Data Analyst is continually involved
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Process Management Function

Establish a charter Develop business reengineering and continuous improvement methodology Build process management expertise Develop and implement Process Ownership program Standardize process documentation Initiate culture change initiatives
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How would you apply this to your Data Management processes?

Who are the stakeholders? What are the processes required to support their needs? What data you would need support these processes? What screens and reports users will need? Who will build the system to support these needs? What quality metrics you need? How can you make your tools easy to use? Who is the Process Owner for these processes?
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Lessons Learned
For Business System Project
1. Project team should be comprised of: The team must have 50% business analysts Core team members must be full-time for the duration of the project Average Number 4 (minimum 2, maximum 6) 2. Scope the project so that: It takes no more than six months Ideal three months Average four months 3. You may select: One or multiple related processes which has single executive or committee in charge 4. 5. 6. 7.
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Prototype and validate feasibility of new concept Do not ignore implementation risks The output must include an implementable act lan Use an experienced arbitrator and adviser if this is your first time
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Process Reengineering - Success Factors

Strong executive sponsor Appropriate scope
Self-sufficient data requirements No more than four months for the study
No a priori constraints
Authority to question any business policy, procedure, or standard
Expand horizon to include external agents Revolutionary thinking out-of-the-box, but evolutionary implementation
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(Business Process Redesign)
Thank You
Presented by:
Arvind D. Shah, Managing Principal Performance Development Corporation Princeton, NJ 08540 (609)443-1226 ads1@perfdev.com www.perfdev.com
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Business System Requirement Analysis (BSRA)

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(Business Process Redesign)

Performance Development Corporation, 2002. All Rights Reserved.

History of Accomplishments History of Accomplishments

Business Process Redesign Handbook (1997)

Performance Development Corporation, 2002. All Rights Reserved.

Performance Development Corporation, 2002. All Rights Reserved.

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Performance Development Corporation, 2002. All Rights Reserved.

Arvind D. Shah Managing Principal

Business Systems Requirement Analysis Business Systems Requirement Analysis