Business Process Improvement TRM DC MUG John Reeve

Business Process Improvement TRM DC MUG John Reeve Director Business Process Engineering Interloc Solutions

BPI Project First Steps Define the Puddle v Define Project Scope v Identify Organizational elements v Deliverables Summation of all findings Prioritized Action List Success factors Value Add Chart Roadmap Forward

Business Process Improvement “If you want truly to understand something…” Internal Staff “… try to change it” ld be ou who w s i h t did If you Sponsor? t c e Proj ---- Kurt Lewin Create BPI Project Get everyone involved I a BP think u o y o ? long d How might last t c e proj Interviews – horizontal and vertical Simplify and Standardize Visualize “the way it could be”; KPI ; Auditing Continuous feedback from all

BPI starts with BPR Business Process Review is intended to promote simplification in process, standardization of procedures and productivity improvement across entire enterprise. The BPR is also intended to make processes adaptable so that they can easily be adapted to changing customer and business needs; and position the organization to be actively involved in continuous improvement on a daily basis. The focus is on ROLES – not job titles; and interface points to CMMS; and an Specific goals include: understanding of the “end game” Ø Review organizational roles & responsibilities Ø Evaluate work group communications & cooperation How well do they communicate? Ø Solicit working level input in terms of complaints/solutions; and for management to review these ideas, and consider for action. This is a defining BPI statement Ø Verify all aspects of CMMS system including software, process & organization as it relates to the maintenance function Consultant tips and tricks; Ø Strengthen knowledge in areas of industry best practice. benchmarking Ø Identify the most important improvement opportunities followed by appropriate actions. Identify learning opportunities Training on CMMS concepts Ø Enhance methods for providing customer satisfaction Depending on Industry this could be very important Ø Also, review condition of Foundation Data

Business Process Improvement In addition to continuous improvement sometimes you have to step back and perform a multi -department review (which is a BPR). Modeling Understanding enforcement Standardization Simplification Consolidate and integrate; Eliminate recurring failures; Eliminate unplanned delays Understand complete process; Eliminate work confusion; 5 S – who can Perform benchmarkingname these? Eliminate fear of change As with most new projects this is the #1 fear by user community Eliminate process variations; Implement standardized KPIs; Measure performance Henry Ford benchmarking How? start at end of process and work back Look for isolated, standalone “databases” containing maintenance related data

CMMS Software Upgrade Typical CMMS Software Upgrade Activity List Migrate data A to Z ____________ Rebuild screens new architecture ____________ Rebuild reports ____________ Add a new Worktype ____________ Train users on version changes Wh radin ly upg rrent o is cu ware g soft ns? versio This is a system change; but it is a change at a micro-level, i. e. piecemeal Business Process Reengineering BPR It is not necessarily part of a larger review (macro-level) spanning the entire maintenance process which would review ideal methods for work categorization across the entire enterprise in relation to Key Performance tracking, management reporting needs and industry best practice.

Would you be totally shocked if I told you most of your processes are outdated and illserving? External Influences How did this happen? Change is Happening Internal Influences A good design 5 years ago may no longer make sense today. New Products New Trends New Versions New thinking Aging staff Bill Gates Architectur e Twitter

Version Upgrade vs Business Upgrade • Every 2 years, or there about, the IT department says “we gotta upgrade”. • And, the software vendor says “you gotta upgrade” • But where is the department or group responsible for “process improvement”? • How important is “process improvement” compared to changing versions? Draw Org Chart…; Find BP Mgr Total Cost of Lost Opportunity When is the last time the Maximo Administrator tried to survey every user or principal user group and ask them, “Hey, how’s it goin? ”

Put “Business Upgrade” on its own Schedule Solution Who can do this? Use CMMS as a true knowledge base

Lets Get Started • Establish BPI team. • Start with Executive meeting. • Allow Team Lead to present to Executive team, but then, have management present BPI concepts and purpose to Tell working level they can say the working level. whatever is on their mind • Schedule meetings to include working group (vertical Job planners / schedulers “silos”) -plus- job role (horizontally across multiple work groups). • Make these brainstorming sessions. Unless an organization is prepared to expose itself to a • Be good listener system where feedback can be given on all issues then the • Carefully record inputs opportunity to create real • Once comfortable, then move to flowcharting AS-IS and TO-BE improvement (and buy-in) may be suspect.

Overall Process §Establish Project §Identify Sponsor §Identify Scope §Find Budget §Establish Team §Create Schedule §All-Hands Meeting §Setup Smaller Work Group Meetings; ensure working level has representation §Prepare Questions -- but allow for free format (and controlled venting) §Identify Rules, Policies, Guidelines, Procedures, and Regulations; selfimposed or external §Record Problems, Issues, Concerns, Complaints §Seek Simplification, Standardization §Ask for solutions to problems; and New Ideas §Encourage Process Improvement; Think Outside the Box §Categorize all feedback into Problems, and, Recommendations §Create Value-Add Chart; Prioritize List §Setup Hierarchical KPIs §Seek Input from all Levels §Establish To-Be Flow Charts §Record this input in a formal punchlist §Establish CMMS Procedures §CMMS Functional Team needs to review and prioritize §Establish Clear Roles and Responsibilities §Establish Post Implementation Audit process §Identify potential payback

BPI “tips and tricks” • • Listen closely. Observe interaction. Allow venting. Record comments, complaints, concerns. Ask for solutions. Don’t let someone gripe forever without giving an idea for improvement. • Back at the office quickly write these up. Record “source” of information. Store in categorized punchlist. • Take pictures – people & whiteboard notes. Note: it is important that no specific software by name is mentioned It is easy to complain; but a lot harder to recommend a viable solution during this process in order to remain unbiased. The goal is to re-define the process and establish a go-forward CMMS requirements list which emphasizes client/user needs as well as industry best practice.

Successful CMMS Operation • Explain the end game; “why/how are we using this data? ” • Proper data categorization is critical to maintaining comprehensive equipment & repair histories and form the building blocks for reliability, asset performance management, and financial optimization. • Continually ask for feedback; involve working level • Fight for Details. If you aren’t getting the information you need let them know. Help them to understand why it’s important. Make them part of the accountability team. Proper CMMS input is critical; one of the most important steps is work order closeout

Typical Questions for each Session interview • • • • Name of group and attendees. Role for each person/group. Identification of bottlenecks, problems, complaints, issues – software or process or organization related; also ask for recommendation for improvement. Describe any communication problems. Circle back to policies and regs. Maybe no written reqmt. Maybe tribal knowledge Ask for current work flow (separate out by emergency versus routine) What work categorization methods/process exist Ask: what is Reactive maintenance? Do you have a strategy for reducing reactive maintenance? Describe current analytical/status reports and KPIs – what are they Ask if there are other database(s) containing maintenance related data – including paper/files? Current CMMS system roles & responsibilities (who touches it) (perceptions – good or bad) 80 -90% of all user sites never setup Describe current materials management process – good/bad resource leveled WS Describe planning and scheduling capabilities & knowledge Define/describe methods for failure analysis Define/describe methods for backlog management Describe methods for linking work to locations and assets; ask about spare parts Ask about mobile solution benefits/usage

Setting Up KPI Hierarchy #4 - - Measure & Control

Store Notes in Organized Format Critical Success Factors Assemble / Group most Common Problems Link Problems to Solutions Pro b ns lem tio Solu s

Categorize each Suggestion Multiple Ways Tip: consolidate like requests into one entry – but maintain “count” of duplicates.

Create Weighted Priority – as BPI team Priority ---- Overall significance; relative ranking of importance Level of Effort ---- This factors in-house man-hours or consultant man-hours in scoping, designing, coding and testing - plus documentation and training. Payback ---- This is the cost benefit which might be realized after a period of time, i. e. 3 yrs These three values were setup numerically where it made sense to combine mathematically (Rank column). In this case the higher the number the most beneficial it is to implement.

“If you don’t know where you are going, you will probably end up somewhere else”. --- Sidney Heyward

Identify Future Perfect Brainstorming A good consultant should know: v. Most common complaints by maximo user community v. Your industry v. Maximo product weaknesses v. Tips and Tricks for use Ask consultant to share “tips & tricks” Stretch goals Benchmarking Paradigm shift Encourage user feedback • Capture ideas from anyone • Go to the Top. Find out where they want to go and how they want to get there. Let them explain their vision and where they see the CMMS role. • Encourage openness and availability by all levels of management and plus input/concerns from anyone. Thinking outside the box

Put it all Together In terms of changes and future requirements: Ø Discuss internally with your BPI team Ø Identify critical success factors; link user input to these categories Ø Identify issues as software, process or organization Ø Record source Ø Link to CMMS application (abbreviation) Ø Link Problems to Solutions

Roadmap Forward

In Summary

Defined BPI Project and Explained How You can do this Roadmap Identify organizational roles, policies & regulations, and CMMS software utilization (and design elements) Seek knowledge in many areas including benchmarking, research, user forums, internal staff feedback, and consultant expertise. Identify future opportunities along with payback. Assign weighting. Convert this list to a management tracking list to be managed by CMMS functional team. Identify / document gaps from current design (software, process and organization) to future opportunities. Identify roadmap on how to address these gaps and a schedule showing a phased implementation.

BPR – this is what we do It takes all three to build a System

Questions? YES NO