Presentation process automation for utilities.pptx

process automation is one of the key technologies

1. MANAGE INFORMATION TECHNOLOGY BLUE BOOK PRESENTATION TO EEP IT MANAGEMENT STAFF Presenter: Demeke R. June/5/2014

2. Discussion Topics Part I APQC Overview Part II Bain & Company PCF Customization Overview APQC Electric Utility PCF customization Exercise

3. Part III : Cat-7 Blue Book Customized PCF Service Level Agreement Category Polices Category Benchmarks Templates and Forms

4. Part IV : - Organizational Design

5. APQC Overview Part -1

6. Process Frameworks

7. Understand what a framework is (and isn’t) Identify the components of a strong framework Know how to establish a framework Learning Objectives

8. What is a Framework? Framework Logical environment used to frame elements in a precise fashion Well defined tactic to master the complex environment of an organization (Source: wikipedia.com) A framework is a taxonomy Taxonomy – the science of classification; laws and principles covering the classifying of objects (source: yourdictionary.com) A framework identifies and organizes It is an architecture (or blueprint) It highlights what is important It provides guidance and rules for application

9. Frameworks are Used Everywhere Project Management Government Classification of insects, animals, rocks… Systems or software architecture National defense Health care reform

10. Benefits of a Process Framework Consistent method of organization Common Frame of Reference Integrated views of processes Supports standardization Helps map processes to functions Helps drive consistency across functional areas (or process areas) Helps identify process owners Promotes a common language Helps identify processes risks and controls Enables best practice identification Enables measurement alignment

11. Process Frameworks and Models Process Frameworks Hierarchy or decomposition of processes Accommodate core and supporting processes Methodologies, standards and notations provide common approach and guidelines

12. What is a Process Model? A definition or diagram of a process which represents the information necessary to understand the activities performed and the flows between them Process models take many forms Activity lists Flowcharts Swim lanes SIPOC Process models can represent current or future state

13. Steps to Establish a Process Framework Basic process for building business frameworks Define scope Establish team Define: Policies and procedures Classification scheme Conventions (e.g., naming, storage, access, etc.) Identify core and supporting processes Decompose processes as appropriate Get stakeholder acceptance Deploy (with training and awareness) Enforce

14. APQC’s Process Classification Framework Created with expert and practitioner panels in 1992 Updated annually Globally recognized Defines activities and processes across 12 enterprise-level operating and management categories The PCF is available in two forms: Cross-industry – a neutral framework adaptable across a wide range of industries and sectors Industry-specific – a suite of frameworks featuring industry-unique processes All APQC content linked to cross-industry PCF Research Benchmarks Measures

15. Advantages of Using the PCF Acceleration Content management, benchmarking, and process definition, among others Enablement Multi-partner benchmarking with more than a few partners Measurement PCF as a checklist to map current processes for measurement initiatives Replicate processes across the enterprise for optimum efficiency Simplify data collection by leveraging existing scope.

16. Operating processes Management and support services PCF Overview

17. APQC’s Process Classification Framework

18. Core Processes Produce your products and services The critical few (12 to 15 max) Intuitive both within and outside your organization May be generic across the industry Based on a common value chain But each competitor may approach them differently Unique processes related to company specific products or approach Opportunities Challenges Goals Critical success factors for core processes Results aligned to business goals Designed considering associated measures Resources allocated to execute and improve Focus maintained on customer and stakeholder value

19. Supporting Processes Structure your business approach Management functions Support functions Common activities Home to shared services Finance IT Business excellence Enable success of core processes Create an environment allowing core processes to function smoothly

20. Structure of the PCF Each level of the PCF is defined by the nested levels below it (its children) The nested levels help identify the intended outcome of the parent level, making it possible to create a holistic view of the category or process group Process groups and/or processes within a category may physically be implemented in various areas throughout an organization

21. Key Definitions 1. Category A specifically defined division in a system of classification 1.1 Process Group A process group denotes a collection of one or more processes 1.1.1 Process A series of actions, changes, or functions bringing about a result 1.1.1.1 Activity An component of work that needs to be accomplished within a defined period of time

22. Different Types and Levels of Process Maps Relationship Map Cross Functional Process Map Linear Process Map Job/Task Process Map

23. APQC’s PCF for Electric Utilities 1.0 Develop Vision and Strategy

24. APQC’s Industry Specific Process Frameworks Aerospace and defense Automotive Banking Broadcasting Consumer Products Education Electric Utilities Petroleum Pharmaceutical Telecommunications

25. Modeling Notations A notation is a system of graphic symbols for a specialized use, other than ordinary writing Source: The American Heritage® Dictionary of the English Language, Fourth Edition A variety of notations that can be chosen based on the purpose of the model Audience understanding (manager, worker, IT designer, process analyst) Communication of a particular issue or problem Project team analysis of opportunities for improvement Not all processes can or should be modeled as flowcharts

26. Simple Flowcharting Symbols

27. Modeling Notations (samples from MS Visio 2007)

28. More Modeling Notations BPMN – “lite” Swim Lanes IGOE IGOE Flow Model BPMN Full

29. Key Elements to Understanding a Process – SIPOC/ RAPID

30. Definition of Rapid RAPID is an acronym not a sequence According to B&C RAPID is a methodology they plan to use for process mapping

31. R(Recommend): give a recommendation input (must be provided by consulting) Can be decision or action This person is responsible for making a proposal on a key decision, gathering input, and providing data and analysis to make a sensible choice, in a timely fashion. Consulting with input providers – hearing and incorporating their views, and winning their buy-in. Input from consulted could be ignored Definition of Rapid /cont/

32. Definition of Rapid /cont/ A(Agree): formally agree on a recommendation, (must be provided by consulting could not be ignored) Involves negotiating a modified proposal with the one who recommends if they have changes or concerns to the original proposal. Escalating unresolved differences and issues to the decider if A and R cannot resolve their differences. If necessary, exercising veto power over the recommendation.

33. P(Perform): Be the owner of the effective performances deriving from the chosen recommendation Involves executing a decision once it’s made. And seeing that the decision is implemented properly and effectively. Definition of Rapid /cont/

34. Definition of Rapid /cont/ I(Input): Give a recommendation input(must be provided by consulting, could be ignored ) Involves Providing relevant facts to the one who recommends that shed light on the proposal’s feasibility and practical implications.

35. D(Decide): Reach the final decision (derive the organization towards the action ) Involves Serving as the single point of accountability. Bringing the decision to closure by resolving any bottleneck in the decision-making process. Committing the organization to implementing the decision. Definition of Rapid /cont/

36. Importance of RApid Importance of RAPID is a tool for decision role design It improves quality yield speed and effort of decision effectiveness Can also be used to optimize decision making process to different goals I.e. speed, quality… It is also useful as a “post mortem” tool to diagnose failed decisions – to see what element or elements in the RAPID process was/were lacking or missing so the next time a critical decision has to be made so you are not repeating the same mistakes over and over again.

37. Ensure that only one person "has the D." If two or more people think they're in charge of a particular decision, a tug-of-war results. Watch for a proliferation of "A's." Too many people with veto power can paralyze recommenders. If many people must agree, you probably haven't pushed decisions down far enough in your organization. Avoid assigning too many "I's." When many people give input, at least some of them aren't making meaningful contributions .

38. Part II : Bain & Company PCF Customization Overview Continued on the attached doc. APQC Electric Utility PCF customization Exercise

39. Continued on the attached doc… Part III : Cat-7 Blue Book Service Customized PCF Level Agreement Category Polices Category Benchmarks Templates and Forms