The Business Productivity Audit (BPA) by qjj20151


									                         The Business Productivity Assessment

The Business Productivity Audit (BPA) is a management consulting service to assess the
efficiency and effectiveness of your organization’s execution of business processes, both
manual and automated. The end products of the productivity audit include 1) what
processes to change 2) what they should be changed to, and 3) a proof of concept
demonstration that the changed processes will facilitate the productivity increases
promised in the scope.

The BPA begins with a definition of the scope of the audit via the Business Model of the
vertical market of the client. The scoping effort results in an alignment of needs and
capabilities with the customer’s business processes and existing automated systems.

Then, the proven techniques of Rapid Process Analysis® (RPA) and Business System
Adaptation® (BSA) are applied to the changes, which result in the design and
specification for the proof of concept demonstration.

                             RPA               BSA



The audit deliverables are both hard and soft. The hard deliverables depend on the scope
of the business processes to be audited. The soft deliverables, regardless of the processes
in the scope of the audit, include 1) an alignment of processes to the unique structure and
culture of the internal organizational process, and 2) assurance of congruency between
the internal organizational processes with the customer. Specifically, the essence of the
customer value proposition as it relates to business processes is that the organization’s
response to external customer events are both efficiently and effective. Specific hard
deliverables include 1) a unique ‘process model’ of the organization how it responds to
internal and external events; 3) the RPA and BSA deliverables and 3) the proof-of-
                        The Benefits of Continuous Improvement

Perhaps the greatest benefit of the Business Process Audit is the knowledge transfer from
management consultants at IRC to the client of the productivity audit methodology itself.
The client can trust that the artifacts of the audit that are unique to the clients business
will remain with the client after the audit is complete. The client can then continuously
define new productivity projects, scope of processes to be changed, conduct the analysis,
the system adaptation, and implement the changes himself. We will, of course, be
available to guide the client efforts and advise her of new technologies and business best
Business Productivity Audit Methodology

   Business Strategy                                            Business               Business
   Business Process                           Business           System                Systems
                            Rapid Process
     Improvement                             Productivity      Adaptation             Engineering
                            Analysis (RPA)
                                             Audit (BPA)          BSA)

                                        I. SCOPE - Determine
                                        Which Process to Audit

                        RPA                                      BSA
                       II. DIAGNOSIS - Assess               IV. PROGNOSIS - Design
                       the AS-IS process                    TO-BE system adaptation
                       performance                          models

                       III. PROGNOSIS - Design              V. PRESCRIBE - the
                       TO-BE process models                 system implementation

                                        VI. Proof-Of-Concept

I. SCOPE – Determine which processes to Audit


customer‟s or vertical business model

customer‟s list of pain points, includes perceived capabilities needed to relieve pain

list of the nature of productivity enhancements

Process design changes– 1) realign overall process flow to customer needs 2) realign
process to value-chain 3) integrate new product/service attributes 4) establish new
value-added functions 5) align value-adding processes to customers willingness to
pay 6) redesign flow for process, work culture, resource demand, customer need, or
value-adding fundamentals

Structural changes – 1) align tasks to responsibilities 2)align measurements to
responsibilities 3) align process flow to assure quality at the source 4) establish high-
performance work teams 5) align job types with processing paths 6) align tasks
Scope/resource skill to work domains.
Business Process Dimensions

Market Related – Reaching new customer, Promoting product, Time to market,
Responsiveness to change, pricing of product

Product related – time to develop, new product, design of product, technology of
product, support of product

Production related – cost of product, quality of product, lead time to manufacture,
flexibility of production, process design, product differentiation, delivery reliability
product options

Finance related – cost of funds, source of funds, product financing, financial


Scope the candidate processes to audit

Categorize pain points to business process dimensions

Associate pain points to specific processes in business model

Define the nature of process change desired

Decide the nature of process change

Prioritize Audit Candidates

Considering two questions as prioritization criteria

What do customers value most highly?

Can we achieve and sustain process performance?
Output: Scope of the Audit

Prioritized processes to audit

Nature of process change

As-is process “quick-map” (assembly of activities that make up the process)

Scope deliverable: Matrix: rows=processes/activities; columns = the nature of the
process change

II. DIAGNOSIS - Assess the AS-IS process performance


As-Is Process “quick-map” of activities

Value-added diagnosis questions

Identify non-value added activities by asking these 4 questions:

Could this activity be eliminated if some prior activity were done differently (or

Does the information technology exist to eliminate this activity (NOTE: a key linkage
to designing step VI. SIPOC BSA model of the BPA methodology)

Could this activity be eliminated without harming the form, fit, or function of the
customers product?

A „yes‟ answer to any of the above 3 questions means the activity does NOT add

Is this activity required by an external customer and will that customer pay for it?

The answer is the ultimate measure of an activities value. If no, the activity is a good
candidate for elimination.
Parameters of process measurement

Cost, cycle-time, level of defects, reliability

Examples of quantifiable goals by industry sector

Service: 1) reduce turnaround time for pricing (x days to same day) 2) Eliminate
customer call back by 20% 3) Reduce printed report distribution operation by 60%

Mfg: 1) 100% on-time delivery 2) 85 % reduction in order-entry cycle time 3) 89 %
reduction in order entry auditing 4) 67% reduction in administrative shipping
errors 5) reduce overall time spent in “quote to ship cycle” by 50%

Office Productivity using IE tools.

Process: Diagnosis

Simultaneously: Assess value added activities and IT capabilities need

Set quantifiable goals for process measurement

Sketch the „To-Be‟ process quick-map


To-be process quick map

Identification of value added activities (Gemba)

Identification non-value activities

Process performance goals

RPA process analysis report (

                           III.   PROGNOSIS - Design TO-BE process models

                                          Input: As-is quick map

                                          Process: Activity Analysis

                                          Identify Supplier/Input/Output/Customer

                                          Decompose process/activities

                                          Network the logical flow of activities

                                      Attribute the SIPOC with quantifiable goals

SIPOC model of “to-be” process

Analysis report

IV. PROGNOSIS - Design TO-BE system adaptation models



Module Capabilities assessed in Value Added Assessment


Simultaneously Synchronize process SIPOC model with Module Capabilities to

achieve process goals as defined in he audit

maximize ROI and

achieve competitive advantage



Quantified process goals

V. PRESCIBE – System implementation parameters (set-up/workflow/roles)


                           SIPOC/BSA models

                           Module system set-up parameters



                           1. Input-output screen print: When client agrees on layout
                           of the screens, print the screen and identify it as the
                           input/output screen associated with a SIPOC model
                          2. Application Screen print: When the client agrees on the
                          set-up parameters, print the screen and associate it with a
                          SIPOC model

                          Data Store update: Identify and document the specific data
                          store (table) and attributes that were changed to
                          accommodate the Input and Output

VI . Proof of Concept

Input: prescription


Using I/O, set-up screens, and data table updates

Unit and system test

Explicitly quantify productivity improvements
Output – institutionalized process changes

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