1. Workshop
October 2015

2. Research (research current state)
Stage 2
Research
(research current state)

3. 1. Understand area of focus to be benchmarked
2. Define performance measures
3. Identify current performance
4. Prioritise and finalise the practices to be benchmarked
5. Review project progress and TOR
6. Obtain approval to start the next stage of TRADE
Equipment errors
Information errors
Time taken
Focus on best practices in:
Equipment transfer
Information transfer
(training, utilisation of space, speed, managing small teams, safety systems)

4. Step 1 – Understand area of focus to be benchmarked
Literature review
Review of company documentation
Process flow charts
Brainstorming
Questionnaires
Structured interviews
Focus groups
Expert presentations

5. There is a variety of company documentation that may help you to have a better understanding of your project
Annual reports
Financial ratio analysis
Operational performance reports
Minutes of meetings
Patents
Audits
Operational and quality system manuals
Business excellence assessments
Questionnaire data
Project files
Previous benchmarking projects
Process flow charts

6. The Fishbone Diagram is a good tool to use to aid in the understanding of a problem/issue
Management
Man
Method
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Effect
Cause
Cause
Cause
Effect = problem statement
Cause
Cause
Cause
Cause
Cause
Cause
Measurement
Machine
Material

7. Example of a Fishbone Diagram applied to the airline industry

8. Drawing a process flow chart will help team members to better understand the current process and the main areas for improvement

9. Common process flow chart symbols

10. 4/25/2017
Definitions
Process:
Any activity or series of activities that takes an input, adds value to it, and provides an output to a customer.
System:
A group of processes that are related and may or may not be connected.
BPI Presentation 10

11. The Process Picture Process Add Value Prevent Errors Identify Errors
Correct Errors
Requirements
Requirements
Supplier
Customer
Input
Output
Feedback
Measurement
System
Feedback
Feedback

12. Process Hierarchy Processes Processes Processes Sub-Processes
What is the BPI Methodology?
It makes use of the people involved in the process to measure, analyze, document, streamline, benchmark, and improve the process.
Business Process Levels
Macro-process: The work flow that is required to conduct a major business objective.
Sub-processes: A logical, related, sequential set of work flow that makes up a major part of the macro-process.
Activities: Things that take place within the process. They are usually performed by units of one (one person or one department).
Tasks: Detailed steps taken to perform an activity.
Activities
Tasks

13. Each symbol on the flowchart provides an opportunity for improvement
Operation symbols
Decision symbols
Inspection symbols
Delay symbols
Documentation symbols
File symbols
Transportation symbols

14. 4/25/2017
Process loops or branches are opportunities for improvement/ streamlining
Main
Loop
Branch
BPI Presentation 14

15. Using a Rainbow Flowchart where colours illustrate different types of processes or opportunities for improvement can be very useful
Bureaucracy
Business Value-Add
Start
End No
Yes
No Value-Add
Value-Add

16. High level of bureaucracy Out-of date processes Overly complicated
4/25/2017
When reviewing the area of focus you are likely to identify many opportunities for improvement and potential solutions
High level of bureaucracy
Out-of date processes
Overly complicated
Not used processes
Costly
Time consuming
Irritating
Record potential solutions as you proceed
through the project
BPI Presentation 16

17. Step 2 – Define performance measures
Cost – for example, labour cost, material cost, product/service cost
Quality – for example, error rate, complaint levels, defect levels
Time – for example, production time, cycle time, value added time, changeover time, delivery time, response time
Value – for example, customer satisfaction, staff satisfaction, community satisfaction

18. Performance Measures Record Sheet
Type of measure
Purpose
Relates to
Benchmark
Target
Current performance
Formula
Frequency
Who measures?
Source of data
Who acts on the data?
What do they do?
Notes and comments

19. 7 reasons for measuring performance and recognising success
What gets measured gets done;
If you don't measure results, you can't tell success from failure;
If you cannot see success, you cannot reward it;
If you cannot reward success, you are probably rewarding failure;
If you can't see success, you can't learn from it;
If you can't recognize failure, you can't correct it;
If you can demonstrate results, you can win public support.
Osborne, David, and Ted Gaebler  Reinventing Government: How the Entrepreneurial Spirit Is Transforming the Public Sector. Reading, MA: Addison-Wesley.

20. Step 3 – Identify current performance
What is your current performance?
Historical trends?

21. Step 4 – Prioritise and finalise the practices to be benchmarked
Review your findings from steps 1 to 3 and decide if you want to stick with your current Terms of Reference or make the project smaller or bigger…
Whatever you decide. Make sure you prioritise which processes are most important to improve!

22. Area of focus – inconsistent customer service levels
Break the “area of focus” down into its component parts and prioritise what is most important to improve
Area of focus – inconsistent customer service levels

23. Examples of prioritisation criteria
Does the process/practice/issue show a direct linkage to strategic direction and current objectives?
Is the problem frequent/infrequent or critical/non-critical?
Is the process owner behind the project and supportive of change?
Can results be obtained within 6 months?
What is the likelihood of finding better practices?
What would be the likely cost of implementation?

24. Step 5 - Review project progress and TOR
Step 6 – Obtain approval to start the next stage of TRADE