Simulation Modeling

Description

Simulation models are a visual representation of Process models which enable the performance of various “To-Be” scenarios to be observed and analysed prior to implementation.

When to Use

• Simulation models can be utilised in several ways in the delivery of BPI services:
• As a selling tool for BPI engagements (Awaken phase)
• By demonstrating to an organisation that the it can utilise tools that can vividly represent processes and illustrate potential improvements that can be made, simulation models can be very effective in selling the benefits of BPI to executive management, especially those who are non-technical in nature
• Simulation models can be utilised to help understand current processes, determine performance during the “As-Is” Process Assessment drivers and gain consensus from the Organisation's personnel on areas for potential improvement.
• As a development/validation of “To-Be” Process Model
• Simulation models can assist Organisations in radically rethinking how processes could be done and in providing some validation of the results to be obtained through analyses.
• Evaluating benefits/effects of new asset acquisitions
• Evaluating different operational alternatives
• # of shifts/day, # days/week, etc.
• Cost Analysis
• Repair costs, transportation costs, downtime costs,
• Labor costs, work-in-progress costs, scrap costs, etc.

Approach

1. Define objectives of simulation model.
1. Be aware that the objectives of the use of a simulation model have a profound effect on the data that need to be collected as well as on the model that is developed.  For example, if improvement of quality is a key objective behind the BPI initiative, data such as failure rates and rework times will have to be captured at a greater level of detail than would be expected in other cases.
2. Ensure that objectives defined for the simulation model are limited to the minimum amount necessary to achieve the objectives of the BPI initiative.  Avoid modeling all aspects of a client’s operations.
2. Collect appropriate data for the simulation model.
1. Know that possibilities for simulation model data include historical data or the use of statistical models such as Normal or Poisson distributions, which simulate the activity of a particular process step.
3. Build the simulation model.
1. Since the biggest obstacle to the use of simulation models on BPI projects is the time required to build the simulation model, choose the correct simulation tool to help minimise the time required
4. Validate the accuracy of the  simulation model.
1. Validate any simulation model against the performance of current operations to ensure that the model is accurate and can be used by management as an aid in the decision making process.
2. Perform multiple validation tests, if necessary, on a simulation model, to provide a level of accuracy that is sufficient to achieve the objectives that were previously set.
3. Develop validation test plan.
4. Execute the validation tests.
5. Compile/analyse results, and modify simulation model (as necessary).
5. Utilise the simulation model to achieve defined objectives.
1. Be aware that, once an accurate simulation model has been developed, experiments can be conducted, alternatives can be evaluated, and various analyses can occur that allow the Organisation's management to make decisions on issues regarding the BPI initiative.

Guidelines

Tactics/Helpful Hints

• Be aware that, in many cases, the building of a simulation model will be an iterative process with many modifications and enhancements being proposed during the building process.  Evaluations must take place during modeling in these cases to ensure that the increased complexity or accuracy that results in the model justifies the increased time and effort to make the proposed modification or change.
• If an Organisation owns a simulation tool of their own, utilise that tool in the development of a simulation model.  The understanding of Organisation’s personnel of the models developed will be improved, if the Organisation’s own simulation tool is used and it provides the Organisation the opportunity to keep the model so they can build upon it and perform their own analyses in the future.

Role Map Analysis

Description

• Helps to identify the relationships between the people who are accountable for leading change (e.g. project sponsors) and the people who will need to operationalise the change (e.g. affected or “targeted” employees).  It also assists in highlighting potential difficulties relating to committed, ongoing project sponsorship.

When to Use

The Role Map Analysis can be used in two main ways.

• To help structure the development of a Sponsorship Role Map
• Because it is based on objectively accepted factors that ensure effective project leadership/ sponsorship, Role Map Analysis makes it easier for the joint client/consultant team to discuss and resolve sensitive issues at an early stage in the partnership. “Typical” sensitive issues include low commitment levels of potential sponsors to the proposed changes, lack of cross functional networking and ineffective leadership styles. The discussion and resolution of these issues sets an example for how to address similar issues, if and when they arise in later stages of the project.
• Incorporate this analysis into project management
• At every stage of the BPI project, there are decisions made concerning the sponsorship of the next stages.  Role Map Analysis can help to highlight the importance of effective sponsorship by ensuring that each phase and each deliverable within the overall initiative achieves its expected results.

Approach

Initial drafts of the Role Map Analysis can be developed with the client team, or in a work­shop with individuals familiar with the scope of the BPI (Business Process Improvement) initiative.  The initial drafts are then refined through discussions with the leadership team.

1. Identify the target groups of the BPI initiative, and map them against the current organization chart.
2. Identify other groups that need to be engaged to successfully achieve change.
1. For each target group, identify the leader or manager who is likely to be re­sponsible for implementing specific changes. These people need to have the requisite accountability and budgetary decision-making to create the conditions for success.
2. Identify the chain of leadership up to the point where someone can legitimately be seen to be accountable for the total BPI initiative.
3. Indicate the likely reaction of each individual leader to the implementation of the BPI initiative:
1. positive or supportive (+)
2. negative or opposing (-)
3. neutral or unknown (?).
3. Draft the Sponsorship Role Map, and present it to the leadership team for discussion.

Guidelines

Problems/Solutions

• Sometimes, the people who need to strongly support the change may remain unconvinced about the need for change. It is critical that this issue be addressed.  Involve these individuals in Case for Change exercises and coaching. In extreme cases, remove these people from their current sphere of influence. This will involve sensitive discussions with Senior Management and, where appropriate, the individual’s direct manager.

Tactics/Helpful Hints

• Take note of the guidelines in the Sponsorship Role Map deliverable, particularly regarding the use of language and the potentially dysfunctional configuration of roles.
• Be aware that some targets will, in subsequent stages of the change process, become sponsors of specific elements of the overall BPI initiative.

TOGAF - Categories of Stakeholders

• Coming from a Sales and Marketing background a useful tool in analysing breakdowns in organisation structure is Pain Chain Analysis. This provides a way of analysing the breakdown of a process and the impact it has on related processes. An example of a Pain Chain and its impact on roles in the chain is highlighted below.

Quality Function Deployment (QFD)

Description

Translation of customer requirements into lower level design requirements (e.g. process requirements) through the use of the “House of Quality” matrix.

When to Use

• Quality Function Deployment is most typically utilised during the design of new processes in the “To-Be” Process Model deliverable but can also be useful during the creation of the “To-Be” Measurement Dashboard in identifying how processes should be measured.

Approach

• Through the iterative use of the “House of Quality” matrix, QFD allows for customer requirements to be translated into actionable items in production, process planning and in manufacturing production:
• QFD can also be in a similar manner as an effective planning tool for translating company objectives into strategies for departments or divisions

Reference

For more information on the House of Quality Matrix

Process Streamlining and Simplification

Process Streamlining and Simplification

Description

• A systematic approach to improving/optimising business performance by eliminating unnecessary complexity in the current business processes of an organisation.

When to Use

• This technique is used to evaluate and optimise the current performance of existing processes (as opposed to reinventing processes using a "blank-sheet-of-paper” approach).  This approach should be used when there are barriers to completely reinventing the process; there are regulations preventing complete change; or if used as a starting point to orient and stimulate the design team for other process redesign activities. (“As-Is” Process Assessment and “To-Be” Process Model)

Approach

The design team evaluates the work tasks and other elements of the current processes to determine unnecessary work, inefficiencies and redundancies. For each identified work step the team establishes the need and purpose of the task through a series of probing questions.

What is being done and why is it necessary?

• Does this step add value?
• Can the step be eliminated altogether?
• Can the step be consolidated with other operations?
• Is the work being performed by the right people and in the best sequence?
• How could the entire flow be reorganised to reduce complexity and cross department interaction?
• Can this process, or any part of it, be simplified or eliminated?

How is work being performed?

• Why should it be done that way?
• Are there too many inspections, storage or transport actions?
• Is it too complicated in its present form?
• Can it be performed in an easier way?
• Should different forms or supplies be used?
• Is the proper equipment and technology available?
• Is required information available in the appropriate form?
• Can safe mechanical shortcuts be adopted?

When should this step be performed?

• Should this step be performed earlier or later, or combined with some  other step?
• Is it in the proper sequence of the operations?
• By performing the step at this particular time, is it slowing down other operations?

Where is the step being performed?

• Why should it be performed there?
• Can it be performed more easily in some other place?
• Are files, reference, and material sources close to users?
• Is the walking distance held to a minimum?
• Should some other section be handling this work?
• Can the office/plant layout be improved?

Who should perform the job?

• Why should he/she perform it?
• Is someone else better qualified to perform the work?
• Who can perform it most easily, practically, and economically?

Typical topic areas for analysis to supplement the above general questions include purpose, sequence of operations, workflow, and  work checking.

Purpose of procedure

• What is the purpose of the procedure?
• Does the procedure accomplish the purpose?
• Is the procedure justified?
• Can the procedure be eliminated?
• Can part of the procedure be eliminated?

Sequence of operation?

• Does the operation unnecessarily duplicate, either in whole or in part, work performed in other steps?
• Does the operation unnecessarily record information that has been or  will be recorded elsewhere?
• Does the operation require the employee to make a substantial new  study of the information?
• Is the operation performed at the proper place in the procedure?
• Can the operation be co-ordinated and/or combined with another?

Work flow

• Is the work received in a controlled fashion, so that items will be properly distributed and accounted for?
• Is workflow planned and scheduled to meet external or inter departmental deadlines?
• How does the work enter the unit, and how is it removed?  Is this the most efficient method?
• Is there unnecessary writing or copying in the procedure?
• Should any forms be improved or analysed further?
• Can this step occur in parallel with another step?
• Should a step, or series of steps, be done along multiple parallel paths simultaneously?

Checking work

• Are control steps incorporated into each process to check work status and workflow efficiency?
• Are control steps incorporated into each process to prevent and/or detect and correct errors, thereby reducing company liability?
• Is a notation that a step has been performed worthwhile for control or delegation of responsibility?
• Is the work checked; and,  if so, how many times?
• When would an error be caught, if each present check were eliminated?
• Would the result of an error be serious?

The answers to these questions then support the building of the “To-Be” processes.

Results of process modeling

1. Review “As-Is” process maps
2. Evaluate the current processes for unnecessary work (see above questions)
3. Generate ideas for design
4. Create new design
1. Eliminate non-value-added steps.
2. Simplify procedures (e.g. inspections, paper work, etc.).
3. Review “As-Is” process maps
4. Evaluate the current processes for unnecessary work (see above questions)
5. Generate ideas for design
6. Create new design
1. Eliminate non-value-added steps.
2. Simplify procedures (e.g. inspections, paper work, etc.).

Guidelines

Tactics/Helpful Hints

• Do not let streamlining and simplification of the “As -Is” limit the design activities.  This will achieve process improvements but not wholesale rethinking of processes.
• Eliminate redundant and unnecessary work steps.  Every work step within the overall process should add value to achieving the process output.  Throughout the process design each step should be examined as to the consequence of its elimination.  This will help to determine the value associated with the step.
• Look for places to compress or eliminate cycle time from the process.  Places where there are wait time or delays are obvious target areas.
• Ask if work steps can be performed in parallel instead of sequentially.  Computer information systems provide opportunities for the sharing of information enabling work activities to be performed in parallel.
• Pain chain analysis is a useful tool to support this activity. This has been covered in a previous BLOG (click on link).