The Power of Process The Power of Process

For Driving Business mprovement For Driving Business mprovement

Fred Hess, Paramount Strategies LLC Fred Hess, Paramount Strategies LLC
Brainstorm Conference Brainstorm Conference - - September 28 September 28- -30, 2008 30, 2008
1 1
2 2
Process Process is the Clark Kent of business is the Clark Kent of business
ideas: seemingly mild and unassuming ideas: seemingly mild and unassuming
but actually amazingly powerful. but actually amazingly powerful.
Michael Hammer, Michael Hammer, Agenda, 2001 Agenda, 2001
The House-Building Contest
How long does it take to build a house?
My baseline => 4 months
The rules are simple:
normal tools must be used
building codes must be followed
no prefabricated components
only the concrete curing can be accelerated
must be finished and landscaped
The record?
????? ?????
Do you think process had something to do with it?
3 3
nsights nsights
Schedule improvement = 99.6%! Schedule improvement = 99.6%!
May not be the most cost effective approach May not be the most cost effective approach
Percentage of non Percentage of non- -value added tasks? value added tasks?
Response to proposed project? Response to proposed project?
Teamwork Teamwork - - single focus single focus
Flawless execution Flawless execution
Lessons learned? Lessons learned?
4 4

Definition of Process Definition of Process
A process is a set of activities that produce A process is a set of activities that produce
products and services for customers. products and services for customers.
GAO's BPR Glossary of Terms GAO's BPR Glossary of Terms
A process is an organized group of related A process is an organized group of related
activities that together create a result of value to activities that together create a result of value to
customers. customers.
Michael Hammer, Michael Hammer, Agenda, 2001 Agenda, 2001
The term The term process process is a proxy for a business is a proxy for a business
operation which is comprised of process steps, operation which is comprised of process steps,
people and tools. people and tools.
Fred Hess, 2004 Fred Hess, 2004
6 6
Common ssues in Companies Common ssues in Companies
CEO
Sales Order Mfg
Procure
ment
Ship
ping
VP VP VP VP VP
Functional departments are usually measured and
controlled vertically

Common ssues in Companies Common ssues in Companies
CEO
CUSTOMER
Sales Order Mfg
Procure
ment
Ship
ping
VP VP VP VP VP
Order
ork usually proceeds through the company horizontally
tem
D
e
p
t

M
t
e
r
i
c
s
Work
An Aerospace View An Aerospace View
PM
CUSTOMER
Procur Electrical Mfg
FM FM FM FM FM
Contract
Deliverable
Design Stress
F
u
n
c
t
i
o
n
a
l

F
o
c
u
s
Work
ork usually proceeds through the company horizontally
8 8
9 9
nsights nsights
Department measurements and the flow of work are Department measurements and the flow of work are
typically at right angles to each other typically at right angles to each other
These vertical measurements typically do not measure These vertical measurements typically do not measure
flow of work and can sometimes cause behaviors that flow of work and can sometimes cause behaviors that
interfere with the flow interfere with the flow
Aerospace and other large enterprises have many Aerospace and other large enterprises have many
more functions than ordinary businesses so the silo more functions than ordinary businesses so the silo
effect is greater effect is greater
f there are no metrics or ownership related to the flow f there are no metrics or ownership related to the flow
of work, it will probably of work, it will probably not not improve improve
9 9
10 10
A Real Life Example A Real Life Example Telecom Manufacturer Telecom Manufacturer
Sales
Finance
Mfg
Order
Deployment
Proposal
Billing
Collections
CIient defined processes
The cIient team, with IBM heIp, had
modeIed the 8 As-Is processes and
were now designing the To-Be
processes, starting with CoIIections.
Do these reaIIy Iook Iike processes?
11 11
Sell
Finance
Product
Mfg
Process
Order
Deploy Propose
Submit
nvoice
Collect
I convinced them that their 8 "processes" were phases of the same process.
What might this process be caIIed?
What was the common business object that
made it the same process?
A Real Life Example A Real Life Example Telecom Manufacturer Telecom Manufacturer
12 12
The Proposal to Cash Process The Proposal to Cash Process
Sell
Finance
Product
Make
Process
Order
Deploy Propose
Submit
nvoice
Collect
Order
CUSTOMER
CoIIections were running at 50%
Customer satisfaction was poor.
ow would you find the root causes?
The common business object is the "Order"
13 13
Analyzing the Proposal to Cash Process
Sales Mfg Order Deploy Proposal Billing
Collect
ions
CUSTOMER
hat were the root causes?
hat group suffered the most pain?
At what point did the salesman get his commission?
ho did the customer call for status or problems?
ho was responsible for customer satisfaction?
14 14
Root Cause Analysis Root Cause Analysis
Findings Findings
The root cause of the collections problem was The root cause of the collections problem was
primarily in sales primarily in sales
No single role owned the customer for the No single role owned the customer for the
duration of the transaction duration of the transaction
No one realized the number of potential No one realized the number of potential
customer customer touchpoints touchpoints
There was no mechanism for collecting and There was no mechanism for collecting and
utilizing all customer information utilizing all customer information
1 1
A A Touchpoint Touchpoint Analysis Was Performed Analysis Was Performed
16 16
# TOUCH POINT DOCUMENT CUST
SAT
EFFECT. EFFIC. ACCESS
CHANNELS
OVERALL
PERF
TREND BUSINESS
IMPACT
CURRENT IMPACT/
CHARACTERISTICS
DESIRED IMPACT/
EXPERIENCE
GAP
1 Marketing/SaIes
2
2
Advertising
Branding
Communications
Product Launch
PubIic ReIations
Trade Shows
6 Future Product
DeveIopment
DeveIop
Customer PIan
DeveIop Service
PIan
Approve Service
PIan
DeveIop
Partnership PIan
DeveIop Account
PIan
CIarification of
Customer's
Business
Reqmt's
How did we proceed? How did we proceed?
1 1
SaIesman
Order/Finance
Mfg Engr
Buyer
BiIIing
DepIoyment
CoIIections
Customer
ot all roles together in workshop
Developed to-be requirements
orked out the handoffs and interactions
Designed the end-end to-be process
Recommendations Recommendations
Adjust the SAP business rules Adjust the SAP business rules
Maintain current configurators and price Maintain current configurators and price
databases databases
Form customers teams Form customers teams
Appoint a Chief Customer Officer Appoint a Chief Customer Officer
Acquire/develop a customer information Acquire/develop a customer information
database and application database and application
18 18
19 19
nsights nsights
The focus on departmental, instead of end The focus on departmental, instead of end- -to to- -
end, processes precluded their ability to end, processes precluded their ability to
determine the root cause of the issues determine the root cause of the issues
There was no ownership of the end There was no ownership of the end- -to to- -end end
process measurements process measurements
Business growth of 30%/year contributed to Business growth of 30%/year contributed to
lack of focus on the customer lack of focus on the customer
The Request for Service Process
An outsource process for obtaining additional An outsource process for obtaining additional
computing resources computing resources
Projects take from 8 to 16 weeks to Projects take from 8 to 16 weeks to
implementation implementation
Average transaction time = 4 days Average transaction time = 4 days
Could take as long as 14 days to obtain a Could take as long as 14 days to obtain a
license key to run an installed application license key to run an installed application
Quick Quick- -hit teams trying to improve process hit teams trying to improve process
performance performance
20 20
The Approach The Approach Step 1 Step 1
21 21
. AnaIyze the Current
State
DesignFIow As-is
DesignFIow To-be
As- Is
To -Be
Checker
Eng Designer
TechnicaI Writer
Drafter
AnaIyst
Team
Leader
Eng. Administrator
Design Eng
TL Scope Work
EA
Assign
Number
TL2 Check Concept
RN0-
Create/Modify
Design
ModeI
TW DeveIop Spec.
Choose
Dev. Concept
Desgn
Disapprove scope
Use Existing
Dsgn
DE
R2
Choose Reject
Approve
R2
D
Doc. DetaiI
Dwg
A
Submit
AnaIysis
C
Check
Drwgs
MuItithread
Reqts
Cgng
ModeI OK ModeI not
OK
2 R4
R4
1
Choose Approve
ResuIts
Chnge
Concept Chnge
Design
DE2 DE3
TL3
R
R
R3
R3
C h e c k e r
E n g D e s i g n e r
T e c h n i c a I W r i t e r
D r a f t e r
A n a I y s t
T e a m
L e a d e r
E n g . A d m i n i s t r a t o r
D e s i g n E n g
T L S c o p e W o r k
E A A s s i g n
N u m b e r
T L 2
C h e c k C o n c e p t
R N 0 - C r e a t e / M o d i f y D e s i g n
M o d e I
T W
D e v e I o p S p e c .
C h o o s e
D e v . C o n c e p t
D e s g n
D i s a p p r o v e s c o p e
U s e E x i s t i n g
D s g n
D E
R 2
C h o o s e
R e j e c t A p p r o v e
R 2
D
D o c . D e t a i I
D w g
A S u b m i t
A n a I y s i s
C C h e c k
D r w g s
M u I t i t h r e a d R e q t s
C g n g M o d e I O K
M o d e I n o t
O K 2 R 4
R 4
1
C h o o s e
A p p r o v e
R e s u I t s C h n g e C o n c e p t
C h n g e
D e s i g n
D E 2 D E 3
T L 3
R
R
R 3
R 3
AppIication
Function, Data,
Infrastructure
Org Design,
Teaming, SkiIIs,
KnowIedge
Issues
Root
Cause
Desired
CapabiIities
Process
EnabIers
Organization
EnabIers
AppIication
Reqmts
SoIution Ideas
End
Process RoIes
E2E Current RFS Process (As-Is)
State 40
QA2/3 Check (state 33)
Rework Loop
Approve
Approve
= Silo
Current State Process Current State Process
Requester
DeIivery
Project
Mgr
SoIution
Team
Prop Mgr
Outsource
Mgr
Procure
Starts With: Request for Service
Ends With: mplementation plan
and solution components ready for
implementation
DeveIop
& DeIiver
ProposaI
DeveIop
SoIution
Obtain
ApprovaI
Obtain
Approval
Obtain
Approval
Perform
Acquisition
Services
EvaIuate
Request
Initiate
Request
Package
Request
22 22
The Approach The Approach Step 2 Step 2
23 23
Project GoaI:
Systematic and RepeatabIe
Approach
DesignFIow As-is
DesignFIow To-be
As- Is
To -Be
Checker
Eng Designer
TechnicaI Writer
Drafter
AnaIyst
Team
Leader
Eng. Administrator
Design Eng
TL Scope Work
EA
Assign
Number
TL2 Check Concept
RN0-
Create/Modify
Design
ModeI
TW DeveIop Spec.
Choose
Dev. Concept
Desgn
Disapprove scope
Use Existing
Dsgn
DE
R2
Choose Reject
Approve
R2
D
Doc. DetaiI
Dwg
A
Submit
AnaIysis
C
Check
Drwgs
MuItithread
Reqts
Cgng
ModeI OK ModeI not
OK
2 R4
R4
1
Choose Approve
ResuIts
Chnge
Concept Chnge
Design
DE2 DE3
TL3
R
R
R3
R3
C h e c k e r
E n g D e s i g n e r
T e c h n i c a I W r i t e r
D r a f t e r
A n a I y s t
T e a m
L e a d e r
E n g . A d m i n i s t r a t o r
D e s i g n E n g
T L S c o p e W o r k
E A A s s i g n
N u m b e r
T L 2
C h e c k C o n c e p t
R N 0 - C r e a t e / M o d i f y D e s i g n
M o d e I
T W
D e v e I o p S p e c .
C h o o s e
D e v . C o n c e p t
D e s g n
D i s a p p r o v e s c o p e
U s e E x i s t i n g
D s g n
D E
R 2
C h o o s e
R e j e c t A p p r o v e
R 2
D
D o c . D e t a i I
D w g
A S u b m i t
A n a I y s i s
C C h e c k
D r w g s
M u I t i t h r e a d R e q t s
C g n g M o d e I O K
M o d e I n o t
O K 2 R 4
R 4
1
C h o o s e
A p p r o v e
R e s u I t s C h n g e C o n c e p t
C h n g e
D e s i g n
D E 2 D E 3
T L 3
R
R
R 3
R 3
AppIication
Function, Data,
Infrastructure
Org Design,
Teaming, SkiIIs,
KnowIedge
Issues
Root
Cause
Desired
CapabiIities
Process
EnabIers
Organization
EnabIers
AppIication
Reqmts
SoIution Ideas
2. DeveIop the Requirements
The current Request for Service (RFS) is burdened by a process that contains a high number
of roIes, tooIs, hand-offs, manuaI activities and rework.
As-s Baseline - Analysis
= 32
. Initiate
Request
$9,9e 0, 5, 10
Submit RFS
2. EvaIuate
and Route
Request
$9,9e 15
Receive Request
Validate Request
Type
Assign the RFS
Category + Queue
Reroute as Needed
Validate Form
Content and Notify
Requester
Validate Funding
nformation
Log Project/New
Business Request
Assign to
Resource
4. DeveIop
and DeIiver
ProposaI to
Customer
$9,9e 30, 33
Finalize Project
Scope Summary
Finalize Proposal
Outputs
Obtain Pricing
Agreement
Perform QA2/3
Submit to
Governance for
Review and
Concurrence
Rework as needed
Deliver FAL and
Project Scope
Summary to
Customer
5. Obtain
ApprovaIs
$9,9e 40, 50,
60, 100
Route to Customer
for Approval and
Signoff
Perform Customer
Review/Response
Receive Signature /
Rework as Needed
Route to Governance
for Final Approval
Obtain Governance
Approval
. Perform
Acquisition
Services
$9,9e 162, 1 3
Acquire Hardware and
Software
Schedule and Begin
mplementation
3. DeveIop
SoIution
$9,9e 20, 23
dentify Required
Work Products
Contact Customer
Within Days
Assign Resources
Gather/Validate
Requirements
Perform Quality
Review w/in Team
Finalize Solution
Outputs
Perform QA1
Review
37
Activities
per step:
+ 4 + 2 + 20 + 5 = 209 +
5
Choices
per step:
andoffs
per step:
9 + + 3 + 4 + 3
= 4 +
3
9
+
4
+ 9 +
7
+ 24 = +
3
IT Tools
per step:
5 9
4 0
5
24 24
Major Contributor to Schedule Delay Major Contributor to Schedule Delay
Capital Requisition Approval Capital Requisition Approval
13 roles required
for approval
2 2
Findings Findings
Excessive number of non Excessive number of non- -integrated applications integrated applications
Many manual handoffs Many manual handoffs
Quick Quick- -fix teams were changing rules weekly fix teams were changing rules weekly
Lengthy approval cycles Lengthy approval cycles
Manual tracking Manual tracking
Multiple procurement systems Multiple procurement systems
26 26
The Approach The Approach Step 3 Step 3
2 2
Project GoaI:
Systematic and RepeatabIe
Approach
DesignFIow As-is
DesignFIow To-be
As- Is
To -Be
Checker
Eng Designer
TechnicaI Writer
Drafter
AnaIyst
Team
Leader
Eng. Administrator
Design Eng
TL Scope Work
EA
Assign
Number
TL2 Check Concept
RN0-
Create/Modify
Design
ModeI
TW DeveIop Spec.
Choose
Dev. Concept
Desgn
Disapprove scope
Use Existing
Dsgn
DE
R2
Choose Reject
Approve
R2
D
Doc. DetaiI
Dwg
A
Submit
AnaIysis
C
Check
Drwgs
MuItithread
Reqts
Cgng
ModeI OK ModeI not
OK
2 R4
R4
1
Choose Approve
ResuIts
Chnge
Concept Chnge
Design
DE2 DE3
TL3
R
R
R3
R3
C h e c k e r
E n g D e s i g n e r
T e c h n i c a I W r i t e r
D r a f t e r
A n a I y s t
T e a m
L e a d e r
E n g . A d m i n i s t r a t o r
D e s i g n E n g
T L S c o p e W o r k
E A A s s i g n
N u m b e r
T L 2
C h e c k C o n c e p t
R N 0 - C r e a t e / M o d i f y D e s i g n
M o d e I
T W
D e v e I o p S p e c .
C h o o s e
D e v . C o n c e p t
D e s g n
D i s a p p r o v e s c o p e
U s e E x i s t i n g
D s g n
D E
R 2
C h o o s e
R e j e c t A p p r o v e
R 2
D
D o c . D e t a i I
D w g
A S u b m i t
A n a I y s i s
C C h e c k
D r w g s
M u I t i t h r e a d R e q t s
C g n g M o d e I O K
M o d e I n o t
O K 2 R 4
R 4
1
C h o o s e
A p p r o v e
R e s u I t s C h n g e C o n c e p t
C h n g e
D e s i g n
D E 2 D E 3
T L 3
R
R
R 3
R 3
AppIication
Function, Data,
Infrastructure
Org Design,
Teaming, SkiIIs,
KnowIedge
Issues
Root
Cause
Desired
CapabiIities
Process
EnabIers
Organization
EnabIers
AppIication
Reqmts
SoIution Ideas
3. DeveIop the To-Be
Process
28 28
. Initiate
Request
$9,9e 0, 5, 10
Submit RFS
2. EvaIuate
and Route
Request
$9,9e 15
Receive Request
Validate Request
Type
Assign the RFS
Category + Queue
Reroute as Needed
Validate Form
Content and Notify
Requester
Validate Funding
nformation
Log Project/New
Business Request
Assign to
Resource
4. DeveIop
and DeIiver
ProposaI to
Customer
$9,9e 30, 33
Finalize Project
Scope Summary
Finalize Proposal
Outputs
Obtain Pricing
Agreement
Perform QA2/3
Submit to
Governance for
Review and
Concurrence
Rework as needed
Deliver FAL and
Project Scope
Summary to
Customer
5. Obtain
ApprovaIs
$9,9e 40, 50,
60, 100
Route to Customer
for Approval and
Signoff
Perform Customer
Review/Response
Receive Signature /
Rework as Needed
Route to Governance
for Final Approval
Obtain Governance
Approval
. Perform
Acquisition
Services
$9,9e 162, 163
Acquire Hardware and
Software
Schedule and Begin
mplementation
3. DeveIop
SoIution
$9,9e 20, 23
dentify Required
Work Products
Contact Customer
Within Days
Assign Resources
Gather/Validate
Requirements
Perform Quality
Review w/in Team
Finalize Solution
Outputs
Perform QA1
Review
To To- -Be Process Be Process - - 1st Release 1st Release
As-s
Activities
per step
To-Be
Activities
per step
11 + + 28 + + + 49 = 109
3 + 14 + 6 + 26 + 20 + 6 = 209
Results Results - - Phase 1 Phase 1
Removed non Removed non- -value add activities 209 => 109 value add activities 209 => 109
Reduced roles from 3 to 30 Reduced roles from 3 to 30
Reduced applications form 32 to 24 Reduced applications form 32 to 24
Reduced handoffs from 66 to 30 Reduced handoffs from 66 to 30
Removed many sources of rework Removed many sources of rework
mplement with WB workflow mplement with WB workflow
Focus on 21 most critical process steps Focus on 21 most critical process steps
Set objectives for Phases 2 and 3 Set objectives for Phases 2 and 3
29 29
30 30
nsights nsights
There was a lack of both a tool and data There was a lack of both a tool and data
architecture architecture
Lack of clear process governance Lack of clear process governance
The process was assembled, not designed The process was assembled, not designed
The quick The quick- -fix attempts actually degraded fix attempts actually degraded
process performance process performance
31 31
The Dell Process Advantage The Dell Process Advantage
Order
Buy
Parts
ook upstream and downstream for
additional improvement opportunities
dentify
Need
nstall
Config
Solution
Maintain
nven
tory
Get
OK
Order
Ass'y Ship
Extranet
Upgrade
nsights nsights
Dell's integration with their customer's processes Dell's integration with their customer's processes
added value added value
Control of standard configurations Control of standard configurations
Workflow for approval and ordering Workflow for approval and ordering
Easy inventory management Easy inventory management
Provided clear competitive advantage Provided clear competitive advantage
Harder for customers to buy from competitors Harder for customers to buy from competitors
32 32
Process Can Drive Schedule mprovement Process Can Drive Schedule mprovement
33 33
What percentage of the time (schedule) would you estimate is
in the tasks?
How much in the white space?
Proxy for eIapsed time
Time
33 33
Process Can Drive Cost mprovement Process Can Drive Cost mprovement
34 34
The Cost of process execution equals the sum of the cost of
all activities times the number those activities are executed.
How much cost is in rework?
34 34
Process Can Provide Tool Requirements Process Can Provide Tool Requirements
3 3
Roles
1 hr
Tool requirements are obtained by compiling the functional
requirements from all the tasks that use the tool.
ntegration requirements can be derived by identifying tasks that
require more than one tool.
3 3
Process Can Provide Skill Requirements Process Can Provide Skill Requirements
36 36
Skill requirements are obtained by compiling the requirements from
all the tasks on the role swimlane
36 36
Process Has Power Process Has Power
An end An end- -end cross end cross- -functional process can: functional process can:
define how all groups/departments/roles must work define how all groups/departments/roles must work
together to achieve the business objectives together to achieve the business objectives
show where the time is spent and where to reduce it show where the time is spent and where to reduce it
identify the cost of the activities in the process and show identify the cost of the activities in the process and show
which ones can be reduced which ones can be reduced
identify the skill requirements required by each role identify the skill requirements required by each role
establish the functional requirements the applications must establish the functional requirements the applications must
have to support the process have to support the process
provide the context for root cause analysis provide the context for root cause analysis
3 3
Process is the most powerful and effective driver
of business alignment and improvement
3 3
Thank You!
Questions?
References:
Google: 4 Hour House
www.2hourhouse.com
38 38
The Part Shortage Lesson The Part Shortage Lesson
A manager in assembly operations found out A manager in assembly operations found out
that Procurement would not say that a part that Procurement would not say that a part
would be late would be late :39 9e d, 9 w,s d:e :39 9e d, 9 w,s d:e..
This meant that Assembly Ops could not This meant that Assembly Ops could not replan replan
until they knew the part was actually late until they knew the part was actually late
They were a victim of a vertical measurement in They were a victim of a vertical measurement in
Procurement that conflicted with Assembly Ops' Procurement that conflicted with Assembly Ops'
goal of minimized assembly cost and schedule. goal of minimized assembly cost and schedule.
39 39 39 39
40 40
We beIieve that the current environment is at CapabiIity Maturity* LeveI . In order to achieve
our target process performance objectives, experience has shown CapabiIity Maturity LeveI 3
or higher is required
* Carnegie MeIIon University CapabiIity Maturity ModeI
As As- -Is BaseIine Is BaseIine - - CapabiIity Maturity LeveI CapabiIity Maturity LeveI
Transformation
Dimension
Maturity ModeI
LeveI
Maturity ModeI
LeveI 2
Maturity ModeI
LeveI 3
Maturity ModeI
LeveI 4
Maturity ModeI
LeveI 5
Process
Few stable processes
exist or are used
'Just do it"
Documented and
stable estimating,
planning, and
commitment processes
are at the project level
Problems are
recognized and
corrected as the occur
ntegrated
management and
engineering processes
are used across the
organization
Problems are
anticipated and
prevented, or their
impacts are minimized
Processes are
quantitatively
understood and
stabilized
Sources of individual
problems are
understood and
eliminated
Processes are
continuously and
systematically
improved
Common sources of
problems are
understood and
eliminated
Organization
Success depends on
individual heroics
"Fire fighting" is a way
of life
Relationships between
disciplines are
uncoordinated,
perhaps even
adversarial
Success depends on
individuals;
management system
supports
Commitments are
understood and
managed
People are trained
Project groups work
together, perhaps as
an integrated product
team
Training is planned and
provided according to
roles
Strong sense of
teamwork exists within
each project
Strong sense of
teamwork exists across
the organization
Everyone is involved in
process improvement
TechnoIogy
ntroduction of new
technology is risky
Data collection and
analysis are ad-hoc
Technology supports
established, stable
activities
Planning and
management data used
by individual projects
New technologies are
evaluated on a
qualitative basis
Data are collected and
used in all defined
processes
Data are systematically
shared across projects
New technologies are
evaluated on a
quantitative basis
Date definition and
collection are
standardized across
the organization
Data are used to
understand the process
quantitatively and
stabilize it
New technologies are
proactively pursued
and deployed
Data are used to
evaluate and select
process improvements
40 40
41 41
Fundamental Process Principles Fundamental Process Principles
A process model is a proxy for a business A process model is a proxy for a business
operation which includes people, process and operation which includes people, process and
tools tools
Of the three elements, people are by far the Of the three elements, people are by far the
most difficult to change (improve) most difficult to change (improve)
The word "process means different things to The word "process means different things to
different people, so it is imperative that it be different people, so it is imperative that it be
defined clearly defined clearly
The end The end- -end process is where the most value end process is where the most value
for business improvement lies for business improvement lies
Process or Tools?
t takes Boeing about years to design a new
airplane
t took Kelly Johnson's Skunk Works 143 d,s to
design and build the P-80 Shooting Star from
scr,9c with 53 peope.
Why the dramatic difference? Better tools?
Or better process and organization?
How many department managers do you think
he had?
42 42
DesignFlow and DMED DesignFlow and DMED Phase Comparisons Phase Comparisons
Initial project planning and
preparation
Understand requirements
and develop process
designs
Configure processes and
test the system
Move from a pre-
production to a productive
operation
Process flow diagrams
and mapping
SPOC
User Requirements
Gap Analysis
System Requirements
Benchmarking
Brainstorming
Process baselining on
key processes
mplementation Plan
Data Standards
System nterfaces
Quality Function
Deployment (QFD)
Creativity Tools
Score Cards
Pugh Matrix
Tool/Templates DF DMEDI
X x
X
X
X
X
X
X
X x
X
X
O
X
X
X
X
Validation Testing
Gap Analysis
System Requirements
Benefits Validation
Control Charts
Score Cards
Tool/Templates DF DMEDI
X
X
X
X x
X
X
Business Case
Project Goals &
Objectives
System Requirements
Process baselining on
key processes
Team Charters
Scope
Project Plan
MGPP
Tool/Templates DF DMEDI
X x
X x
X x
X x
x X
x X
X x
X
Process flow diagrams
and mapping
SPOC
Gap Analysis
System Requirements
Pilot Test & Verify
Validation Strategy
Training Plan
Documentation Plan
Communication Plan
Capability Analysis
Fault Tree
Simulation
Robust Design
FMEA/EMEA
Mistake Proofing
Score Cards
Tool/Templates DF DMEDI
X x
X
X
X
X x
X x
X
X
X
x X
X
X
X
X
X
X
mplement Design
Explore Measure Define
mplement
Review Understand
Design
Design for Six Sigma DMEDI MethodoIogy
DesignFIow
egend
X (Bold) - PreIerred Template/Tool
x (Small) - Similar Template/Tool
X -Common/Customized Tool
or Template
O - Template/Tool Replaced
Plan
43 43
BM CEO Survey - 2006
44 44
4 4
The J Curve
Time
Current
Desired
Organization's
Performance
Change
ImpIementation
What actually
happens
What We
Expect
VOD
VOD = Valley of Despair