Enhancing Six Sigma with BPM

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Enhancing Six Sigma with BPM

• Greg Robertson
• Director of Six Sigma

October 16, 2008
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Our direction today

• Who is Black Veatch
• Urgency for Change
• The What, Why, How of BPM
• Aligning Six Sigma BPM
• Looking past Defects

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Black Veatch offers leading engineering,
consulting and construction experience in
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Who is Black Veatch?
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3
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12
15
20
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Whats the Urgency for Our Change?
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Whats driving change?
In the constant battle of survivalof the
fittest, every businessmust constantly
re-evaluate itself
Even if you are on the right track, youll get
run over if you just sit there. Will Rogers
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Internal issues driving change in Black Veatch
How is the work done?
Where is our work?
Who does the work?
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External issues driving change in Black Veatch
Changing markets and competitors
More opportunities
More risks
BV strives to create change
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Business Process Management
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A structured approach to Business Excellence
What is Business Process Management BPM refers
to a set of activities to define, manage, or
optimize business processes to meet current or
new organizational needs.
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BPM supports business excellence
Execution Excellence Process Excellence BPM
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Benefits of BPM

• Improved efficiencies
• Process Speed
• Process Consistency
• Process Innovation
• Increased business value
• Improved client satisfaction
• Engaged professionals

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Road to Business Process Management
BPM Six Sigma
Six Sigma
High Performance Team

• 2005 2007
• DMADV, Lean
• Process owner driven
• Significant Value Return
• Excellent implementation

• 2000 2002
• Consultant model
• Process mapping driven
• Implementation challenges

• 2003 2004
• DMAIC Model
• Green Belt driven
• Moderate Value Return
• Improved implementation

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Business Process Management Model
Clients
Develop Mission / Vision
Develop New Business Joe Plubell
Manage Project Execution Ed Walsh
Perform Proc. Functions Mike Gammill
Produce Eng. Design Deliverables Curtis Kling
Construct Projects Hal Smith
Start-Up Commission Mark Bennett
Develop Strategic OP Plan
Core Client Facing Processes
Monitor Division Performance
Manage Marketing John Felski
Manage Finance Dave Mendelsohn
Manage Project Controls Dave Walker
Manage Sales Risk Tom Griffiths
Manage Resources Jim Lewis
Manage Quality Lee Kupfer
Executive Leadership Processes
Key Supporting Processes
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Process owners vs. projects
Define Needs
Define Processes
Monitor Process Health
Learn, Understand, and Share
Execute Processes
BPM
Process Owners Develop and Communicate Process
Knowledge
Project Teams Receive and Apply Process Knowledge
Process Excellence
Execution Excellence
Import Best Practices
Adapt to Process Changes
Establish Metrics Targets
Continuously Improve Processes
Identify Process Issues
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Key process owner roles

• Understand customer needs
• Define, maintain, and communicate their process
• Identify opportunities for improvement
• Implement and sustain improvements
• Develop metrics and targets
• Report on the process health
• Transfer process knowledge

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BPM Maturity Model
Optimized Process continuously evaluated and
improved
Managed Process integrated and metrics established
Defined Process fully documented and the intent
understood
Identified Limited processdocumentation exists
Recognized Success largely depends on individual
effort and knowledge
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BPM Portal
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Benefits of the BPM Portal
Optimized

• Centralized and consistent pathway to documents
• Identifies processes and their owners
• Facilitates knowledge transfer
• Measures BPM progress

Recognized
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Old portal structure was inefficient
Search Source Result
Chief
KC Eng. Depts Engineers
Doc
Center Business Lines
Prod. Offices
Secure Portals
Multiple Versions of Same Document
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BPM portal integrates system
Chief Engineers Business Lines Prod.
Offices Secure Portals KC Eng. Depts
Search Source Result
BPM Portal Knowledge Library
Single Document
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BPM portal page example
Civil/Structural
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Aligning Six Sigma BPM
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We wear many hats
Black belts
Facilitators
Researchers
Consultants

• Mentors

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Focus of Six Sigma Group

• Generating Sustained Improvements
• Improving Performance Culture
• Accelerating the Rate of Improvements

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Six Sigma Scorecard
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3
3
5
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Process Opportunity Example
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Chimney foundations
Reduced the installed cost of large chimney
foundations
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Power plant chimneys
Chimneys over 1,000 feet high Equivalent to
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Baseline design practice
Baseline used cylinder design Mat thickness 1
/ 10 diameter
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New design practice
New approach uses octagon shape and hole Mat
thickness is optimized
Hole Size ½ Diameter
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In summary, .

• BPM can help accelerate, sustain and create change

• An Active Process Ownership culture is key

• Look for opportunities in addition to defects