Process Based Management Department Communication Cascade Oct-2007 “CONVERGENCE” Process Based Management Department Communication Cascade Oct-2007

Agenda Need for PBM Process Concept Progress So far Department Processes Benefits of PBM Way Forward

Need for PBM To have a framework for Process Management. To have well defined & structured Processes To identify the gaps in Process Control To find the ways and means to bridge the above gaps To identify and track measures for all our Processes To bring in internal / external Customer Focus through Process Management To institutionalize Process Improvement cycles

Concept of a Process The term process refers to linked activities with the purpose of producing a product or service for a customer (user) within or outside the organization. Typically a process has set of inputs, outputs, control mechanisms and process owner. Also a process has a set of effectiveness (output) and efficiency measures (in process) . A process could be set of sub-processes.

Progress on PBM so far Adopted Process Based Management (PBM) Model Developed an integrated Enterprise Process Model (EPM) for TPC encompassing all Processes across organization (Basis of Process Classification) Processes Classification List comprising of Level 1(15 Nos), Level 2(88 Nos) and Level 3 (415 Nos) Processes has been identified Process Hierarchy established Based on the Process Classification List, Level 2 Process Owners have been identified by Level 1 Process Owner Similarly Level 3 Process Owners have been identified by the respective Level 2 Process Owners. Developed Process Document Formats for uniform use across the organization Created Process Owner Guide as a ready reckoner to help in Process management Training imparted to Level 3 Process Owners for defining and managing their Processes Level 3 Process Owners are using the Standard Format for defining & deploying their Processes Defined Process is being reviewed by L2 Process Owners

Department Processes Understand processes applicable to our Department (Departmental Processes) Refer the hard copy of one of the department processes. Item by item reading. Understanding the measures of all the Departmental Processes

Benefits to TPC by implementation of PBM Take care of the deficiencies of the current processes classified under ISO and streamline the same. Coverage of non ISO department like support services under PBM. Uniformity of process structure across the organization. Systematic deployment of PBM will lead to organization alignment and integration. Will give a boost to our journey towards Business Excellence.

Way Forward Process documentation audit of Level-3 processes - Compliance by Level-2 owner Deploy the process by monitoring the defined measures - By respective Level-3 Owner Implement improvement action plans arising out of customer feedback, process rating and FMEA - by Level-3 owners Prepare EPM Process Manual (summary sheet of all Level 1,Level 2,and Level 3 Processes) – By Convergence Team

The Convergence Team Radhakrishna M K - Leader Shripad M Zare Swati R Mehendale Bhaskar B Yatnalkar Khushroo R Cooper Ghanshyam Pant - Consultant

ANY QUESTIONS?

FAQs Why new initiative? Why not address deficiencies in present initiatives and improve the same? Presently for same set of activities, we have different ISO processes due to division wise certification, resulting into functional silos. EPM is a systematic approach to define organisational processes and identify / assign responsibility to process owners EPM will – Take care of the deficiencies of the current processes classified under ISO and streamline the same. Ensure structured process documentation for support services which are not ISO certified. Ensure appropriate measures as per the internal customer requirement are defined / tracked Enable systematic Companywide process integration, reviews and improvement. Reinforce ADLI (Approach, Deployment, Learning, Integration) elements in the processes

FAQs (contd) How it will be ensured that this new initiative will be used in the right spirit? Senior leadership demonstrating commitment to processes. Linkage of process measures to BSC & KRA. Participation of Senior leadership in defining, monitoring, & improving the processes. Does using a new format for Level-3 processes mean duplication of ISO formats? No. New formats are more comprehensive. These will replace ISO formats in future. Formats have been cleared by ISO consultant/auditor

FAQs (contd.) Why not do pilot project and see efficacy of the system before doing company wide implementation? The system has been successfully implemented in other Tata organizations and efficacy demonstrated. While creating the system, other Tata organizations have already taken inputs from Baldrige experts. The system implementation will be across the organization. Why not have process classification based on TBEM criteria from 1 to 7? The classification is based on natural work flow of managing and improving processes and escalation of measurements. Level-3 process listing ensures coverage of multiple requirements of TBEM criteria.

FAQs (contd.) How does this process help in designing common MIS formats? The standardized approach for defining the Measures will help in standardizing the MIS formats. Key Level – 3 Process Measures will constitute the MIS for a particular Location & Function. Internal Benchmarking will further help in improving and standardizing the Process Measures. If Level 2 and Level 3 process owners don’t have structural authority, how do they monitor the process and drive process improvement cycles? The process owners will have authority to monitor and improve the processes and will also be trained for the purpose. They can use various mechanisms like audit, annual conference / workshops for monitoring and improving the process The responsibility for improving performance using the processes is with the concerned functional authority.

Planning, Control & Improvement are the different elements of PBM PBM Model Planning, Control & Improvement are the different elements of PBM

Design References 1) American Productivity & Quality Center (APQC) Process Classification Framework (PCF) - A framework designed on the basis of best practice companies like Boeing, BT, IBM, Ford Motors, etc. 2) Tata Chemicals Ltd – Wherein the initiative of classifying companywide processes for effective management was initiated 2 years back. (They too have used APQC PCF)

Hierarchy of Processes Level – I Processes Level – II Processes Level – III Processes 88 Processes 415 Processes 15 Processes Policies, Work Instructions, Formats, Manuals

Enterprise Process Model Customers and Other Stake Holders (Employees, Investors, Community, Channel Partners, Suppliers) LEADERSHIP PROCESSES Leadership Governance Strategy Planning Sustainability Continual Improvement DEMAND IDENTIFICATION PROCESSES DEMAND FULFILLMENT PROCESSES Project Mgt. Capacity Creation Process Operations Sourcing Production & Delivery Processes Customer Mgt. Service Processes Market & Business Development Safety, Health & Environment Human Resource Mgt. Asset Mgt. Finance & Accounts Mgt. Information Mgt. SUPPORT PROCESSES Products & Services DEMAND MANAGEMENT PROCESSES Requirements, Needs, & Expectations