Project Management Approach For Business Process Improvement

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Process improvement initiatives are underway. Ensure that the initiative is managed as a strategic project, there are many chances of success. As companies grow, they need to continually analyze and refine their processes to ensure they do business as efficiently as possible. Fine-tuning process is an organization a competitive advantage in a global market.

Process improvement is a strategy and a tool for an organization achieve its long-term goals. An important goal for all organizations to the needs of its customers to be – both internally and externally. changing customer needs – whether due to economic factors, product launches, mergers and acquisitions, expansion or contraction. Ongoing review for improvement and increased efficiency allows companies to effectively adapt to the changing needs of their customers.

Sometimes improving a process can inadvertently have a negative impact on other processes. Suppose a company changes its order processing. Once this process is improved, it is clear that improving the process created a backlog in processing orders in production. One approach to project management would be such questions as part of risk management planning and execution address of the order would have been considered an extension of the ordering process. However, the original project was evaluated to determine whether changes would be to place an order for sale as beneficial to society as a whole, as the investment needed for other parts of society.

A life cycle of a process improvement initiative includes:

* Define / new processes
Measurement process *
* Analyze Process
* Improving the process
* And again define and redefine the process … etc. – a continuous process improvement.

Even if a project defines a beginning and an end in this diagram, we defined a cyclical environment of continuous improvement. While this is ongoing with the operation of the project delivery process improvement status may be confused, it should be seen more as a separate project for each cycle of improvement. Although monitoring is ready when the need is recognized by improvements, defined a project with a beginning and an end and clearly defined objectives and targets are set.

If process improvement initiatives undertaken by a project team formally led by an experienced Project Manager (experience in projects to improve process-type), the following steps at a high level view, understand well the work of the project:

* Document the current process must be analyzed.
* Measure the current process (gathering measures) and the development of a database. Measures, customer or organization.
o Client-based measures may include:
Customer satisfaction +
+ Service Level
+ Time to Market
Accuracy + customer orders

o including measures based organization can:

+ Use of resources
+ With the production line
Cost per unit + development

* Validation of existing and documented process to ensure that the measures referred to appropriate.

* Setting new parameters for the process of the organizational objectives of long-term basis – for example, could encourage an improvement in customer satisfaction from 85% to 93% customer satisfaction on a nine-month period, or reduce the unit cost of $ 25 per unit to $ 15 per unit for a period of one year.

* Analysis of the documented processes to make improvements.

o This, together with documentation of a process, perhaps the greatest amount of time for the project.

* Design and development of process changes to ensure that the improvements desired.

* Check the design process.

* Implementation of the new process of change.

to change * Review and evaluate the results of the new method.

Measure O in terms of basic parameters in a period of time.

Presenting a case study: changes in the process of a manufacturing company

This document provides a comprehensive overview of a case study of a manufacturing company that the value in adopting a project management approach to a change initiative has seen the process.

Overview

XYZ company was aware that their production of widgets to meet no more on customer needs. They saw an increase of 10% every year for widgets in the last 5 years with no end in sight to the increased demand. The CEO had asked an internal team to review the current manufacturing process and propose changes to improve processes and equipment to the requirements for future needs. When the team presented the proposal to the Chief, he recommended an upgrade of production facilities and an overhaul of the production line without robust measures of the number of planned increases. Also missing (and crucial to the outcome), an analysis of what happened in the markets, supply and storage, if such changes were made to the manufacturing process, and whether these departments would be able to cope with these changes. After having these posts in the team, and with past experience in such projects in other companies, decided the director of a consulting project management, Project ABC, sketch d hire a project plan for this initiative. ABC projects focused on process improvement initiatives. The CEO knew that their efforts to implement more successful if they were running as a well run.

The project plan

ABC has a sufficient draft project plan with tentative schedules and costs has been made until the discovery. The project plan included the discovery and identification of the needs of production has increased, and the identification of relevant ministries and / or processes, if increased production performed.

Project ABC knew from experience that other areas of production would be affected. For example, markets have a fixed budget for purchases. Necessary expenses for materials that were not ready to be used in production would wreak havoc on cash flow and require a review of how store materials until they are ready for the manufacturing industry. In addition, other suppliers from whom the acquisition of equipment to be identified, if any, vendors are in no increased purchases to meet. alternative provider must be available to all supply problems arose. It was clear that the procurement must be closely involved with the production to a continuous flow of materials for production to be maintained.

The project team developed a detailed plan for the partners and identify how to proceed, the data are required to collect to accurately document the manufacturing process. This plan contains a detailed list of questions to participants to ensure that all interviewers asked the same questions and collected data. The project team knew from experience that the documentation process a broad understanding of business processes required because the question that people often relevant details inadvertently skipped. Such experienced people were needed to extract the information needed for accurate and detailed documentation.

The project team developed a plan for potential risks and strategies to manage them when they occur. They wanted to be sure, once they determined the ways to make changes to manufacturing processes, they could not for possible changes to other processes into account. They knew that the development of a process would likely have a domino effect throughout the company. For example, during a meeting of scenario planning, found the project team, that if the purchase is to meet the material needs of the production of a single supplier without a backup, it is for there would be potential shortages of materials, delay in production or cost cause at least 30% would. This may not be acceptable and would eventually lead to losing dissatisfied customers businesses lead to competition.

The team developed a change management plan as an important component of the project changes throughout the company would join in and ensure the affected people had to work on board and ready to work with the new processes. In addition, the project team had the people in the production to be affected ready to test new processes and new equipment without interruption to current customer demand to satisfy. Without the support of these people it would be an impossible task and one that had a high potential risk associated with it.

In addition, the project team has sent a message to the company so that employees knew what happened and why, and she asked for suggestions from employees. By obtaining the entry of people who were from the daily work, they have increased the chances of success for the project.

The project structure plan includes several steps to allow the company to look forward and with new processes and equipment modernization, without interrupting production. At each stage there were several tasks to measure the progress and the comparison of expected results and baselines. Evaluations were regularly to ensure that the current plan remained faithful to carry out these objectives. At any time during the project, although tests showed deficiencies in terms of objectives and an assessment of the design process and, if necessary, took place a correction. The project structure plan includes the training time for the people to a new device speed.

The risk management plan’s risks, the current staff is not able to learn, new equipment and play their role in due course. Part of the emergency plan was for employees who respond quickly to new equipment on the new production line adapted for use and maintenance of the old production line with employees who learn more slowly, until they are able to get up to speed. A concept of the integrated team, including mentoring, was established to help attract people to speed on new devices.

Regular meetings with the manufacture, supply, delivery and other departments, instead, to keep the channels of communication and general awareness of the planning. These meetings also served to ensure that staff were comfortable with change and were involved in decisions that affect how they attend to do their work.

Project results

Before the project, the company XYZ has produced 250 widgets per day. At the time of engagement of the initiative process improvement, customer demand had arrived at 250, and increased demand by 10% annually over the past five years, and it seemed that the increase will continue for the foreseeable future.

Executive Directive was to improve manufacturing processes through changes in processes and systems modernization, a goal to produce up to 400 widgets per day. According to current projections, the company would be a period of five years before he committed to a further increase in production to experience the growing customer demand. At this point, if the customer demand continued to increase, the company is better positioned to invest in another production facility to meet the demand for the brand for five years.

In addition, in line with current production, it was, on average, produced an error rate of 3.6% in the widget. Specific guidelines for this project was to try to reduce the error rate by at least half over the next two years.

The following items were discovered during the project:

* Capacity for procurement was limited by cash flow and budgetary matters, and storage. Each new process is needed to account for this, though production has increased and to ensure a smooth flow between the supply and production.
* It is clear that if the number of widgets produced increases, the requirements for the storage and delivery will increase accordingly. A plan was implemented to change storage and delivery processes to reduce the pressure on these functions.

The project took a little longer amortized, but stay within budget. The increase in the schedule due to an underestimation of the space required to store boxes before delivery. This happened primarily because of lower default rates was.06%, well above the target of 1.8%, leading to an increase in the number of units of the widget is stored. Although this was not a contingency plan did not cause the frames to be unhappy. It was a good problem.

Summary

A project management approach, the company has to meet its production needs for the future, while at the same time not interfere with their current production to meet demand. There is never a fault in production, while new methods tested and evaluated. Continuous communication so that everyone in the loop on process changes and actually had the advantage of increasing the participation of workers to improve processes to better meet customer needs. In addition, continuous review and adjustment of planning for risk management, so that the end result was well thought out, and ensure that faults have been made in the proposed changes and could be treated immediately.

Stick to a methodology of standard project management the company has a project with very high risk of priority, to achieve the budget and within a reasonable period to long-term strategic goals.

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