1. Process improvement with PISO ® PISO ® Structured Analysis Techniques... workplace creativity driven by strategy... workplace creativity driven by strategy * © D A Deeks University of Sunderland 2005 * ‘Process Improvement for Strategic Objectives’, PISO ® and ‘workplace creativity driven by strategy’ are the property of The University of Sunderland. PISO ® trademark design by Abdul Ali and Matthew James * V5.1 refer sections 1, 2, 5, 6

2. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 Stakeholders Logical views, using data flow diagrams Strategic objectives … strategic objectives engaging with detailed analysis … stakeholders doing it for themselves … data flow diagram logicalisation, twice 1 – for systems efficiency 2 – to meet an agreed strategic objective PISO ® Strategic objectives Stakeholders Logical views, using data flow diagrams PISO  key features

3. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 Stage 0 … identify area requiring improvement PISO  stages Stage 1 … develop objectives Strategic objectives Stage 3 … design proposed system Stage 2 … analyse current system Logical views, using data flow diagrams Stakeholders …

4. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 processes involve us in carrying out activities processes should always ‘add value’ if they are poorly designed in this regard, or are well designed but we have difficulty in carrying them out, we feel frustrated we all have ideas of how we would do the job … if only we could make some changes by examining our reasons for frustration or lack of job satisfaction, we discover our strategic objectives for change Processes, frustrations, strategic objectives

5. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 Strategic objectives individual aspirations, organisational mission statements don’t involve much of ‘how’ an efficient organisation is one where its overall strategic objectives are in line with their employees’ individual ones and process improvement employees have a vast amount of experience, knowledge of what is wrong with the processes they are asked to use ‘what is wrong’ can be transformed into strategic objectives for change PISO ® provides a powerful, step-by-step approach to allow employees to engage their strategic objectives with the processes they use, to bring about effective improvements

6. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 four of the steps use data flow diagrams (dfds) The PISO ® framework by changing the dfds, we improve the processes dfds show processes and the data that flows to and from them refer section 1 p5

7. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 … does what it did before, but much more efficiently (ignore the detail, note the shapes and sizes!) PISO ® ‘before and after’ dfds - Pontefract General Infirmary From this (step 2.2)... to this (step 3.3)... refer section 1 p2-3

8. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 From this (step 2.2)...to this (step 3.3)... PISO ® ‘before and after’ dfds - Marine Construction Ltd … results in something new, to improve control refer section 2 p4, section 5 p3

9. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 LOGICAL dfds depict a logical view of a physical circumstance PHYSICAL dfds depict a physical circumstance LOGICAL VIEWS VARY, dependent upon the information available considered relevant PISO ® uses PHYSICAL and LOGICAL dfds refer section 1 p11-12

10. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 … with physical features and constraints clearly shown PISO ® uses PHYSICAL and LOGICAL dfds refer section 1 p11 Physical...

11. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 Logical... … with physical features and constraints removed, to expose the rationale behind the system PISO ® uses PHYSICAL and LOGICAL dfds refer section 1 p12

12. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 PISO ® uses dfds four times 2 a LOGICAL dfd for ‘systems efficiency’ purposes - to give a logical view of the current ‘system’, with physical constraints removed 3 a second LOGICAL dfd for ‘strategic objectives’ purposes, to give a re- engineered logical view of how the ‘system’ could look if a required strategic objective was incorporated 4 a final PHYSICAL dfd to show how the strategically re-logicalised ‘system’ could be physically implemented. 1 a PHYSICAL dfd to depict the current ‘system’, warts and all refer section 6 p17 refer section 6 p19 refer section 6 p20 refer section 6 p15-16

13. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 PISO ® and strategic objectives... originate within an improvement area developed through stakeholder consensus converted into operational objectives, then expressed in terms of dfd notation drive the strategic re- logicalisation process crucial - the core of PISO ® ’s approach refer section 1 p 7-8, 10-11

14. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 … all data flow diagrams use the same four elements The four ‘elements’ that make up dfds Whether complicated...or simple... 1 Processes 2 Data stores 3 External entities 4 Data flows refer section 1 p13-14

15. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 SYSTEM BOUNDARY The four ‘elements’ that make up dfds 3 An External Entity is a person or place holding information outside the system that the process uses or provides 2 A Data Store is ‘data at rest’ within the system that the process uses, provides or maintains. ‘M’ indicates manual, physical data. (‘D’ indicates computer-based data). 4 A Data Flow shows the data that flows between the processes and the other elements Note: ‘INFORMATION is DATA that has been PUT INTO CONTEXT’ 1 A Process is something that is done by a person or place within the system ME Do my job 1

16. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 SYSTEM BOUNDARY A ‘system’ is one or more processes, fulfilling a need It may involve just one person...

17. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 A ‘system’ is one or more processes, fulfilling a need or it may involve a number of people. Such ‘whole system’ diagrams are called ‘level 1’ dfds SYSTEM BOUNDARY THAT PERSON THIS PERSON Do their job THE OTHER PERSON Do their job 1 2 3

18. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 SYSTEM BOUNDARY THAT PERSON THIS PERSON Do their job THE OTHER PERSON Do their job 1 2 3 If a process is considered to be showing sufficient detail … A ‘system’ is one or more processes, fulfilling a need * * … an asterisk is used to indicate this. refer section 1 p 14,15

19. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 SYSTEM BOUNDARY A ‘system’ is one or more processes, fulfilling a need Processes where more detail is required (i.e. without an asterisk) … * THAT PERSON THIS PERSON Do their job THE OTHER PERSON Do their job 1 2 3 * … are analysed further, using a ‘level 2’ dfd… refer section 1 p15

20. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 SYSTEM BOUNDARY Do this part of my job 1 refer section 1 p15 … and often ‘secret data stores’. A ‘system’ is one or more processes, fulfilling a need … unearthing sub-processes … refer section 6 p21

21. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 When the level 1 dfd covers several departments, each department should be represented by one level 1 process box. 1 When the level 1 dfd represents one sub-sectioned department, each sub-section (which may be only one person) should be represented by one level 1 process box. 2 Greatly assists further analysis Based upon the following guidelines... refer section 1 p16 When the level 1 dfd represents one ‘multi-skilled’ department or individual, each function should be represented by one level 1 process box. 3 The ‘one process per functional area’ rule

22. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 PISO ® step 2.2 - Preparing a level 1 current physical dfd … It is then sent to the Design Office who produce the drawing and material specifications and send this with a partially complete BQ1 to the Materials Office. They price up the material needed using their Material Catalogue and add this detail to the BQ1 before passing it to the Production Office. Here the required labour is estimated and, using the labour rates held in the Labour Rates File, the estimate is added to the BQ1.... Customers send to Marine Construction a specification of the boat they want built. The Sales Office use this detail to make out a special form, BQ1, that includes the customer specification as well as a deadline date for the quote to be ready.... … the ‘system walkthrough’ approach 1 note what happens 2 draw a level 1 process for it refer section 2 p2-3

23. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 PISO ® step 2.2 - Preparing a level 1 current physical dfd Order b Processing Dept Quotes File M5 Sales Office Add mark-up and 5 Process 6 Sales Office prepare quotation BQ1(completed) + quotation (copy2) + drawing + mat spec BQ1(completed) + quotation (copy2) + drawing + materials spec letter of intent BQ1(completed) + drawing + materials spec + quotation (copy2) Letter of intent M4 BQ1(4) + drawing + materials spec BQ1(4) + drawing + materials spec BQ1(4) + drawing + materials spec * * Quotation (copy 1) … The BQ1 is now returned, with the drawings and specifications, to the Sales Office who complete it by adding on an appropriate mark-up by reference to the Sales Manager. Using the now complete BQ1 two copies of a formal quotation are prepared. One copy is sent to the customer and the other is filed with the BQ1, drawing and materials specification in the Quotes File. If and when the customer sends a letter of intent the relevant BQ1, copy of the quote, drawing and materials specification are retrieved from the Quotes File and sent to the Order Processing System. … but is our diagram ‘one process per functional area?’ NO!!

24. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 Remember the ‘one process per functional area’ rule? When the level 1 dfd covers several departments, each department should be represented by one level 1 process box. 1 When the level 1 dfd represents one sub-sectioned department, each sub-section (which may be only one person) should be represented by one level 1 process box. 2 greatly assists further analysis based upon the following guidelines... When the level 1 dfd represents one ‘multi-skilled’ department or individual, each function should be represented by one level 1 process box. 3 Marine Construction refer section 2 p4

25. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 From ‘walkthrough’ level 1 dfd... refer section 6 p15-16 refer section 2 p3-4 … to ‘one process per functional area’. But are we showing sufficient detail? - do we need to expand any processes to level 2?

26. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 From initial ‘one process per functional area’ level 1 dfd … … to refined version, awaiting expansion of processes 1, 3 & 4 refer section 2 p4-5 Datastores M5, M6, M7: removed each used by only one process (‘secret’ to that process) will ‘reappear’ at level 2, with new numbers Processes 1, 3 and 4: asterisks removed

27. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 From level 1 of whole ‘system’ …… to level 2 of one process (process 1) refer section 2 p5-8 Process description at top of process box M5 Quotes File now M1/1 to indicate ‘ownership’ by process 1 (others would be M1/2, M1/3 etc)

28. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005  Remove physical ‘carriers’ of data (documents, telephone calls etc) – and identify the actual data required by the recipient of the data Data flows  Remove data duplication – i.e. where it is known that there is a significant overlap in the actual data held by two or more data stores  Remove or rename data stores that hold physical documents Data stores  Remove people and places  Change ‘experts’ into external entities – i.e. to indicate where human attributes such as authority, subjective judgement etc are required by the system  Remove processes that simply move data around – i.e. where a process exists purely to move physical data, or sort it, etc Processes Existing system ‘one process per functional area’ physical dfd used as basis Dfd elements considered as follows … refer section 3 p3 Guidelines for logicalising for systems efficiency

29. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 In a logicalised dfd... … are removed if they simply file data, or purely move it around in any way File Materials Cost Forms 4 Cost Clerk … have no people or places. Process Materials Cost Forms 2 Cost Clerk 2 ✓ Process Materials Cost Forms Processes Determine Materials Costs 3 … may result in new external entities. Materials Manager ✓ Request for costs expertise Costs expertise If someone who provides subjective judgement is removed from a process they are considered an ‘expert’ and become an external entity, with dataflows indicating their expertise requested and provided

30. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 … and there are usually fewer dfd ‘levels’ D1Customer Details M1 Customer Folder M2Customer Box File … are as few as possible ✓ … are all designated ‘D’, and renamed to ignore any physical carriers of the data Data stores Account application form Account application details Data flows … do not indicate what physically carries the data, but only the specific data required by the recipient. ✓ ✓ Account applicant number In a logicalised dfd...

31. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 From physical... (levels 1 and 2) to logical... (level 1) refer section 3 p4-6 refer section 6 p16-17

32. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005  Remove physical ‘carriers’ of data (documents, telephone calls etc) – and identify the actual data required by the recipient of the data Data flows  Remove data duplication – i.e. where it is known that there is a significant overlap in the actual data held by two or more data stores  Remove or rename data stores that hold physical documents Data stores  Remove people and places  Change ‘experts’ into external entities – i.e. to indicate where human attributes such as authority, subjective judgement etc are required by the system  Remove processes that simply move data around – i.e. where a process exists purely to move physical data, or sort it, etc Processes Existing system ‘one process per functional area’ physical dfd used as basis Dfd elements considered as follows … refer section 3 p3 Guidelines for logicalising for systems efficiency

33. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 In a logicalised dfd... … are removed if they simply file data, or purely move it around in any way File Materials Cost Forms 4 Cost Clerk … have no people or places. Process Materials Cost Forms 2 Cost Clerk 2 ✓ Process Materials Cost Forms Processes Determine Materials Costs 3 … may result in new external entities. Materials Manager ✓ Request for costs expertise Costs expertise If someone who provides subjective judgement is removed from a process they are considered an ‘expert’ and become an external entity, with dataflows indicating their expertise requested and provided

34. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 … and there are usually fewer dfd ‘levels’ D1Customer Details M1 Customer Folder M2Customer Box File … are as few as possible ✓ … are all designated ‘D’, and renamed to ignore any physical carriers of the data Data stores Account application form Account application details Data flows … do not indicate what physically carries the data, but only the specific data required by the recipient. ✓ ✓ Account applicant number In a logicalised dfd...

35. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 From physical... (levels 1 and 2) to logical... (level 1) refer section 3 p4-6 refer section 6 p16-17

36. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 e.g. ‘Create boats that meet a customer’s expectations first time, without modification’ e.g. ‘Create boats that meet a customer’s expectations first time, without modification, by allowing customers on- going involvement in the quotation process’ Developing objectives e.g. ‘Improve patient access to a theatre slot for a vasectomy under local anaesthetic by way of a direct booked admission’ 1 Step 1.1: Identify initial strategic objective(s) ‘Ensure patient kept fully informed and involved in process’ … e.g. ‘Improve patient access to a theatre slot for a vasectomy under local anaesthetic by way of a direct booked admission’ … ‘Reduce waiting time for surgery’ … ‘Make more efficient use of theatre slots’ refer section 4 p2 refer section 6 p18 2 Step 1.2: Identify further stakeholders, & analyse involvement refer section 6 p18 refer section 4 p2 3 Step 1.3: Refine strategic objectives refer section 6 p24

37. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 e.g. ‘Create new customer liaison function’ … Developing objectives e.g. ‘Provide one-stop appointment at GP surgery with successful outcome of booked date and time on theatre slot’ … 4 Step 1.4: Establish operational objectives refer section 6 p18 refer section 4 p2 ‘Automatically provide customer liaison function with up-to-date information regarding quotation progress’ … ‘ALL customer enquiries to be dealt with by customer liaison function’ ‘Reduce number of non-attenders for surgery by ensuring consent/agreement of patient regarding appointment date and time’ … ‘Reduce waiting time for surgery by freeing up consultants from clinic consultations’ … ‘Provide up-to-date ‘procedure’ information, to be given to patient at time of booking’

38. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 ‘Data flows to/from customers to be improved/increased’ … Developing objectives e.g. ‘Minimise number of processes involving patient’ … 5 Step 1.5: Define operational objectives in terms of dfd notation ‘Data flows to/from customers to only contact customer liaison process’ … ‘Include process(es) and dataflows indicating theatre booking and update during GP appointment’ … e.g. ‘Introduce customer liaison process’ ‘Data stores of up-to-date quotation details to be maintained by all stages of quotation process and accessible by customer liaison process’ … ‘Data stores of up-to-date customer queries/responses to be maintained by customer liaison and accessible by all quotation processes’ … ‘Customer liaison process to have direct data flows to all datastores maintained by the quotation processes’ ‘Include process(es) and datastore(s) indicating patient consent to procedure and agreement with booking date and time, during GP appointment’ … ‘Include datastore of patient information’ ‘Include process(es) and dataflow(s) indicating provision of ‘procedure’ information to patient, during GP appointment’ … refer section 6 p18 refer section 4 p3 ‘Ensure data flows to and from patient indicate consent to procedure during GP appointment’ …

39. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 Logicalising to meet strategic objectives 1Step 1.1: Identify initial strategic objective(s) 2 Step 1.2: Identify further stakeholders, and analyse involvement 4Step 1.4: Establish operational objective(s) 5Step 1.5: Define operational objective(s) in terms of dfd notation 6 Step 3.1: Reshape the current logical dfd by considering in turn each objective from (5) above as follows … If answer = YES: Modify or delete the component to meet the objective Question: Might this objective have implications for any existing dfd component ? Question: Might this objective require one or more new dfd component ? If answer = YES: Introduce new component(s) to meet the objective refer section 4 p4 3 Step 1.3: Refine strategic objective(s)

40. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 efficiency objectives Strategic objectives that emphasise efficiency aspects (e.g. time or cost saving, getting rid of duplication of effort) tend to be the commonest and... … typically result in an outcome with fewer processes / dataflows / datastores than the original system. Pontefract is such an example. Strategic objectives that emphasise quality aspects (e.g. extra controls or checks) … … typically result in elements being added, whilst also automatically addressing efficiency aspects. Marine Construction is such an example. Outcomes from efficiency and quality objectives quality objectives refer section 6 p17-19 NOTE: before ADDING a process to check/verify output from another process, establish whether THAT process might be improved to send the right output in the first place!! refer section 4 p3-5

41. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 Logicalising to meet strategic objectives from ‘systems efficiency’… … to ‘strategic objectives’ refer section 4 p3-4 refer section 6 p17-19

42. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 Creating ‘proposed system’ physical dfds More than one proposed system?... Any guidance in the strategic objective? – e.g. … refer section 5 p2-3 ‘… to a maximum cost of …’ ‘… ensuring minimum disruption in the short term’ otherwise, common to give two or three alternatives e.g. … If strategic objective very specific, only one solution may be appropriate … quick and easy short-term ‘fix’ … comprehensive long-term solution

43. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 Creating ‘proposed system’ physical dfds 1Two fundamental organisational questions... 2… which translate into the following dfd questions Which person/department will do this? How will it physically be made to happen? M Is it necessary to re-introduce any physical documents/Manual datastores? e.g. ‘official’ documents, pre-printed leaflets, forms for signature etc. D Do computer Datastores indicate new computer facilities needed? M may be appropriate to have a short-term version with them Manual refer section 5 p2-3 Will existing job functions/departments undertake a process, or are new ones needed? Have any existing job functions/departments become unnecessary to this system? Do any ‘expert’ external entities need to be re-instated within processes? people whose authority/judgement is, after all, necessary to the system consider carefully before giving them back all parts of their old process(es) – some aspects may be better covered by other staff?

44. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 From ‘strategic objective’... to ‘recommended system’ physical places – i.e. people / departments physical data carriers – i.e. documents etc. refer section 5 p2-3 refer section 6 p19-21

45. Process Improvement for Strategic Objectives © D A Deeks University of Sunderland 2005 Physical dfd(s) of current system PISO ® dfd(s) Logical dfd(s) of current system (‘systems efficiency’) Logical dfd(s) of proposed system (strategic objectives’) Physical dfd(s) of proposed system