Project methodology

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Project methodology
Chapter 5 Prepare for the Journey
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Objectives
At the end of this unit, you will be able
to 1.0 Identify the eight key decision points
in any BPR project. 2.0 Explain the steps of
the BPR project methodology and the outcome for
each of these steps. 3.0 Explain the importance
of a well-structured methodology.
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8 DECISION POINTS BPR PROJECT
1.0 Do we need to reengineer/redesign this
business operation? - Boundaries, scope, and
interface points? - How should we structure the
project? - Who should be on the team? 2.0 What
is the end vision of the results of the
reengineering/redesign? - Goals,
priorities? - Values, principles reflected in
the vision?
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8 DECISION POINTS BPR PROJECT
3.0 What is the detailed design for our
reengineered business operation? - How do the
processes function? - Systems and infrastructure
needed. - Belief systems and culture that must
be in place. 4.0 Will our new design for the
business operation work? 5.0 What is the plan for
getting that design implemented? - Time, Risks
and Costs?
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8 DECISION POINTS
6.0 Should we fund the implementation of the
BPR? 7.0 Is the implementation going as
planned? - Corrections and changes to make to
ensure complete transition to the vision
environment. 8.0 Is the reengineered/redesign
business operation ready to take on
responsibility for continuous improvement to the
processes? - Yes provide skills and knowledge
to people to do it right. - No keep working
with them until theyre ready.
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BPR PROJECT METHODOLOGY
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Step 1 Frame The Project
Purpose Decision to proceed/not proceed with
project. Define and structure the
project. Outcome Project Framework Statement
Provides concrete and documented evidence for
the need to redesign. The data is required
to create the vision the reengineered decision
operation.
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Step 1 Frame The Project
Key Activities 1.0 Assemble analysis team the
core group of the project team 2.0 Draft project
frame the team works on the scope, boundaries,
and interface points for the reengineering
effort. 3.0 Conduct a current situation analysis
(AS IS) the team gathers data and analyzes the
current situation this means observing work
flows, determine root causes of problems related
to production, errors, etc. The results should
prove or disprove the need for radical change to
the business operation.
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Step 1 Frame The Project
Key Activities 4.0 Produce the Framework
Statement the analysis of the current
situation is documented in a framework
statement. 5.0 Recommend project go/no-go
decision if the situation analysis supports
the necessity of a reengineering project, then
the analysis team must recommend how to
proceed specify desired outcomes describe
techniques necessary to achieve them identify
executive sponsor(s), a project director, core
group, champion team members by name and
organization unit develop schedules and
allocate funding. 6.0 Contract with executive
sponsors be clear with your executives that
you want a contract to create the reengineering
design and develop an Implementation Plan.
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CAUSE AND EFFECT DIAGRAM
The Ishikawa diagram is a graphical method for
finding the most likely causes for an undesired
effect.
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PARETO CHART
A special form of vertical bar graph that
displays information in such a way that
priorities for process improvement can be
established. It shows the relative importance of
all the data and is used to direct efforts to the
largest improvement opportunity by highlighting
the "vital few" in contrast to the "many others."
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Step 2 Create The Vision, Values, and Goals
Purpose Create a picture of what the operation
wants to become. Project executives
sponsors and the project team must agree to the
vision of the reengineered environment and its
supporting values and goals. Outcome Vision,
Values, and Goals Statement. Key
Activities 1.0 Prepare for project kickoff
meeting and vision session. 2.0 Conduct the
project kickoff meeting promote and formally
announce the project 3.0 Conduct the vision
session team develop and agree on the vision,
values, and goals for the project.
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Step 2 Create The Vision, Values, and Goals
Key Activities 4.0 Create the Vision, Values
Goals Statement this document becomes the
primary means of communicating the purpose of
the reengineering project throughout the
organization. 5.0 Validate the Vision, Values
Goals Statement the team revises or refines
the statement after the vision statement has been
circulated throughout the organization.
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Step 3 Redesign the Business Operation
Purpose Design a new way of doing business
that is in alignment with the vision, values,
and goals. Outcome Redesign Blueprint Consisting
of Physical/Technical Infrastructure, and Value
Components. The blueprint provides the
foundation for a realistic and feasible
implementation and enables the team to estimate
Implementation costs and forecast implementation
benefits.
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Step 3 Redesign the Business Operation

• Physical/Technical Component
• What work will be required to produce the
  products or services? What business policies,
  practices and controls needed to ensure
  effective performance?
• What information do we need to operate
  effectively? Who will do what work?
• What computer systems, communication networks,
  and other technologies must be used to enable
  the work to be done effectively?

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Step 3 Redesign the Business Operation

• Physical/Technical Component of the Blueprint is
  structured into four distinct models
• Process Model is the core of the Blueprint and
  depicts work processes in the reengineered
  environment.
• -Key business outcomes (e.g. products,
  services) and criteria for
• judging their quality.
• -Business processes required to produce and
  support the business outcomes.
• - Description of how those processes relate
  to each other, including work flows, information
  flows and timing dependencies.

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Step 3 Redesign the Business Operation
A process must create or transform physical
items or data. A process must add value to an
outcome. b. The Information Model
describes all data required to perform and make
decisions within the reengineered business.
c. Organization Model defines the new or
existing organization structure, job positions,
and job configurations (such as team structures)
required to perform and support the redesigned
processes. d. Technology Model documents
the databases, applications, communications, and
networking required to support the redesigned
business processes.
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Step 3 Redesign the Business Operation
Infrastructure Component a. Management
strategy b. Management system Value
Component a. Organizational culture b. Power
utilization c. Belief systems.
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Step 3 Redesign the Business Operation
Key Activities 1.0 Prepare for the Blueprint
sessions. 2.0 Conduct the Blueprint sessions -
the team develops and reaches consensus on the
business operation redesign. 3.0 Document the
Blueprint write a concise and understandable
document. 4.0 Validate the Blueprint - refine or
correct the blueprint before publication.
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Step 4 Conduct Proof of Concept
Purpose To refine the estimate of the projects
expected benefits and to see if the
business operation design performs as
expected. Outcome Benefits statement presents
qualitative and quantitative benefits of
implementing the business operation redesign
based on the results of the simulation or pilot
tests. Key Activities 1.0 Determine need for
proof of concept hard data, commitment to
implementation, radical change, initial cost
estimates, realistic expectations. 2.0 Select a
proof of concept approach simulation or pilot
test? 3.0 Develop proof of concept requirements
and plan.
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Step 5 Plan the Implementation
Purpose Develop a realistic action plan for
implementing the reengineering
Blueprint. Outcome Implementation Plan (provides
the road map)- a detail implementation and action
plan with specific milestones and process owner
identified. Key Activities 1.0 Prepare for the
implementation planning sessions. 2.0 Conduct
the implementation planning sessions. 3.0 Docume
nt the Implementation Plan. 4.0 Validate the
Implementation Plan.
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Step 6 Obtain Implementation Approval
Purpose To get the funding and resources to
begin Blueprint Implementation. Outcome
Funded Resource Request human resources,
facilities and equipment, and direct budget for
external consulting, and training. Key
Activities 1.0 Develop the approval strategy
ensure that all stakeholder executives have
the opportunity to become involved in the
decision making for the implementation. 2.0 Ask
for approval.
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Step 7 Implement the Redesign
Purpose To transition the business operation
from the current environment to the
reengineering environment. Outcome Measurement
results should show movement toward the
reengineering goals as stated in the Vision,
Values, and Goals Statement. In the form of
progress reports and measurement results. -
frequency and volumes of transactions -
number of customer inquiries, complaints and
responses. - number of errors, discrepancies,
changes and corrections. - elapsed or
dedicated time required for process cycle. -
customer satisfaction with services performance
and products delivered.
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Step 7 Implement the Redesign
Key Activities 1.0 Consistent periodic meetings
regular meeting to share learning, monitor
implementation progress, and resolve issues as
they arise. 2.0 Celebrate success people who
make them happen should be rewarded. 3.0 Conduct
critical reflections project team should work
proactively with the line organizations to
anticipate problems with the implementation work.

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Step 8 Transition to a Continuous Improvement
State
Purpose To bring closure to project team
activities and have line organizations
continue to improve the reengineered
environment. Outcome Continually improved
performance through improved process
reducing unproductive activities and increasing
customer satisfaction. Key Activities
Ongoing measurement and critical reflection by
operations units.