1. ISA 201 Intermediate Information Systems Acquisition

2. Lesson 14 Continuous Process Improvement and Business Process Reengineering

3. Today we will learn to:
Identify the DoD policy that describes the Implementation and Management of the DoD-Wide Continuous Process Improvement Program
Define Continuous Process Improvement (CPI)
Define Business Process Reengineering (BPR)
CPI & BPR

4. Business Process Reengineering (BPR)
Lesson Plan
Business Process Reengineering (BPR)
Continuous Process Improvement (CPI)
Principles of Lean
Exercise
Principles of Six Sigma
CPI & BPR

5. Business Process Reengineering (BPR) Defined
“The fundamental rethinking and radical redesign of business processes to achieve the dramatic improvements in critical contemporary measures of performance, such as cost, quality, service and speed.”
DoDI
The Department defines BPR: a logical methodology for assessing process weaknesses, identifying gaps, and implementing opportunities to streamline and improve the processes to create a solid foundation for success in changes to the full spectrum of operations.”
2012 DoD Business Process Reengineering Assessment Guidance
CPI & BPR

6. Why BPR?
Subtitle III of Title 40 of the United States Code (AKA Clinger-Cohen Act) requires BPR.
Section 1072 of the National Defense Authorization Act (NDAA) for Fiscal Year 2010 introduced new requirements into the Department’s investment review process stipulating defense business system (DBS) modernizations may not be certified to obligate funds in excess of $1 million without a determination of whether appropriate business process reengineering (BPR) had been completed.
2012 DoD Business Process Reengineering Assessment Guidance
It’s the Law!
CPI & BPR

7. Performing BPR The DoD does not mandate a specific BPR methodology.
The goal of BPR is to ensure that the business processes supported by the DBS have been streamlined, and/or eliminated or unique requirements and interfaces have reduced to the maximum practical extent.
2012 DoD BPR Assessment Guidance Standard.
CPI & BPR

8. Performing BPR
Functional Sponsor and PM are responsible for completing assessment form prior to IRB
13 assessment questions requiring tailored objective evidence based upon submission type:
Development
Modernization
Research
Technical Refresh
Sustainment.
Source: Appendix B, 2012 DoD Business Process Reengineering Assessment Guidance
CPI & BPR

9. Continuous Process Improvement (CPI)
Lesson Plan Status
Business Process Reengineering (BPR)
Continuous Process Improvement (CPI)
Principles of Lean
Exercise
Principles of Six Sigma
CPI & BPR

10. CPI Defined
“Continuous Process Improvement—a comprehensive philosophy of operations that is built around the concept that there are always ways in which a process can be improved to better meet the needs of the customer and that an organization should constantly strive to make those improvements.” 2008 Continuous Process Improvement /LSS Guidebook Revision 1
CPI & BPR

11. CPI Policy
“A robust, effective CPI/LSS program will leverage the right tools and methods for problems being addressed, including Lean Six Sigma, theory of constraints, and business process reengineering.”
2009 DoDI
CPI & BPR

12. CPI Guidebook
CPI provides organizations a structured approach for analyzing how they are currently doing work and how they can improve their processes to do the job more efficiently and effectively on an ongoing basis.
Process improvements resulting from applying CPI effectively will greatly benefit the Department, in terms of both improved operations and reduced resource consumption.
Application of tools from Theory of Constraints, Lean and Six sigma will improve both production and service processes.
CPI & BPR

13. Principles of Lean Lesson Plan Status
Business Process Reengineering (BPR)
Continuous Process Improvement (CPI)
Principles of Lean
Exercise
Principles of Six Sigma
CPI & BPR

14. Lean
A methodology for continuous process improvement, focused on work flow, customer value, and eliminating process waste; unique from traditional process improvement strategies in that its primary focus is on eliminating non-value added activities
2009 DoDI
CPI & BPR

15. Key Lean Concepts Five Principles of Lean Thinking:
Specify the value of a process from the customer’s perspective.
Identify the value stream for each process
ELIMINATE WASTE: Make value-creating steps flow
The customer must pull value through the process
Continuously pursue perfection
Source: Lean Thinking, Womack and Jones
CPI & BPR

16. Eight Sources of Waste
CPI & BPR

17. Exercise Lesson Plan Status Business Process Reengineering (BPR)
Continuous Process Improvement (CPI)
Principles of Lean
Exercise
Principles of Six Sigma
CPI & BPR

18. Eight Sources of Waste Exercise
“When you are agile, you get lean” (Pages 1-4 – Student CD)
Describe the principle and provide your assessment and at least 1 example
Team 1: Inventory in software development
Team 2: Motion in software development; Waiting in software development.
Team 3: Over-production in software development;
Team 4: Over-processing in software development
Team 5: Transport in software development; Defects in software development;

19. Principles of Six Sigma
Lesson Plan Status
Business Process Reengineering (BPR)
Continuous Process Improvement (CPI)
Principles of Lean
Exercise
Principles of Six Sigma
CPI & BPR

20. Six Sigma
A disciplined, data-driven methodology for process improvement that focuses on satisfying customer requirements while minimizing waste by reducing and controlling process variation.
2009 DoDI
Six Sigma evaluates a process in terms of performance, accuracy, and consistency—Reduce Variation of Processes
CPI & BPR

21. Variation What Is It? General Principles
“Short Answer.” A change in the value of a measured characteristic
“Long Answer.” The difference between things that are produced under conditions that are as nearly alike as it is possible to make them
No two products or characteristics are exactly alike because any process contains many sources of variability
General Principles
No two things are alike
Variation can be measured
Individual outcomes are not predictable
Groups form patterns with definite characteristics
CPI & BPR

22. Variation: Common And Special Causes
Time
If only common causes of variation are present, the output of the process forms a distribution that is stable over time and is predictable
If special causes of variation are present, the process output is not stable over time and is not predictable.
CPI & BPR

23. Six Sigma Methodology
CPI & BPR

24. CPI & BPR Review
BPR—fundamental rethinking and radical redesign of business processes
Lean—eliminating non value adding waste from our process
Six Sigma—reduce variation in key process attributes leading to stable and predictable outcomes
CPI & BPR

25. Today we learned to:
Identify the DoD policy that describes the Implementation and Management of the DoD-Wide Continuous Process Improvement Program
Define Continuous Process Improvement (CPI)
Define Business Process Reengineering (BPR)
CPI & BPR