Implementation Plan Presentation ver1

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Implementation Plan Presentation ver1 Powered By Docstoc
					        Bridge Management System (BMS) Re-write
       Business Process Re-engineering (BPR) Project
               Implementation Plan




                       June 18, 2002
                                                 PENNDOT Highway
BMS Re-Write Project                             Administration
Business Process
Re-engineering
Agenda
   Implementation Strategy
   Basis for Implementation Planning
       Process Integration
       Organizational Development
   Implementation Plan
       Summary of Initiatives
       Potential Schedule for Initiatives
       Cost / Benefit Analyses
   Next Steps for Implementation
   Phase II Work Plan
   Next Steps for Phase II

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Implementation Strategy

   Consists of 3 major components:
     Automation  Opportunities Report
     Implementation Plan
     Phase II Estimate Report




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BMS Re-write BPR Project

   Remaining Phase I Deliverables:
     Implementation Plan (to be presented today)
     Phase II Estimate Report (to be discussed today)




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Basis for Implementation Planning

   Process Integration and Organizational
    Development sessions
     Opportunity for participants to collaborate on
      developing implementation tasks for the change
      recommendations identified by the re-engineering
      teams
     Opportunity for participants to discuss
      organizational impacts of change recommendations
      and plan implementation tasks to address impacts


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Process Integration Team
     Team Members
            Mike Archer        Gannett Fleming, Process Implementation
            Tom Drda           FHWA
            Denny Lebo         Bridge Planning Process Owner
            Paul Majoris       Bridge Maintenance Process Owner
            Earl Mellott       BIS
            Jon Oravec         BMS Re-write Project Manager
            Ron Purvis         BMS Team – Industry Specialist
            Bill Robert        BMS Team – Industry Specialist
            Hal Rogers         Bridge Planning Team Member
            Lou Ruzzi          Bridge Programming Process Owner
            Jim Slaughter      BIS
            William Williams   FHWA, BMS Steering Committee
            Scott Zeevaart     Gannett Fleming, Process Implementation



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   Process Integration Methodology
     Programming
                                    Process Integration
Plannin           Maintenanc            Process Owners presented change
                                         recommendations
   g                   e
                                        Team updated a draft list of initiatives
                                         that consolidated the recommendations
                                        Team broke into two sub-teams to:
                                             Create implementation tasks
                                             Develop cost & benefit assessments for
                                              each initiative
                                        Sub-teams presented results to each
                                         other, updating plan as necessary
     Consolidated                       Team confirmed list of organizational
    Implementatio                        issues to be addressed by the
        n Plan                           Organizational Development Team

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Process Integration Results
   Team reviewed 61 organization, business process,
    and technology recommendations
   Consolidated 61 recommendations into 30
    initiatives
   For each initiative:
       Determined tasks and timeline to complete the initiative
       Identified initiative Owner
       Provided costs / benefits
   Following the session, the BMS Project Team
    worked with participants to:
       Fill some of the “holes” in cost estimates and benefit
        assessments
       Generate the draft Implementation Plan
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Organizational Development Team
     Team Members
            Scott Christie     BMS Steering Committee
            Gary Hoffman       BMS Steering Committee Chair
            John Leisenring    Attending for Jim Kendter
            Denny Lebo         Bridge Planning Process Owner
            Paul Majoris       Bridge Maintenance Process Owner
            Jon Oravec         BMS Re-write Project Manager
            Harivadan Parikh   Attending for Jeff Weaver
            Bob Peda           Director, BOMO
            Hal Rogers         Bridge Planning Team Member
            Lou Ruzzi          Bridge Programming Process Owner
            Dean Schreiber     BMS Steering Committee, Director, BOD
            Lou Schultz        Director, Center for Program Dev & Mgmt
            Aimee Schwartz     Bureau of Personnel
            William Williams   FHWA, BMS Steering Committee


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Organizational Development Methodology
               Organizational Development
                    Team reviewed a high-level introduction of the
                     BMS Re-write BPR project
                             Focus on change recommendations with
                              organizational impacts
                    Team discussed the following issues, developing
                     implementation plans for each
                             Bridge Champion position
                             Bridge Crew Foreman training & testing
                             Resources to deliver the program
                             Training
                             EPR / scorecard-related items
                    BMS Project Team updated the implementation
                     plan with these implementation details

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Implementation Plan

     Prioritizes and schedules tasks for
      implementation
     Establishes cost / benefit criteria for process
      improvements
     Covers:
           30 Initiatives
           137 Implementation Tasks




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Summary of Initiatives
1.    Define Performance Measures
2.    Set Performance Measure Goals & Targets
3.    Prototype “What-if” Modeling & Analysis Tool
4.    Define Work Categories
5.    Establish Bridge Champion Position
6.    Formalize the Department’s Preventive Maintenance Policy
7.    Ensure Legislative Authorization for Needed Bridge Projects
8.    Implement Bridge Bill Coordination
9.    Provide Ad Hoc Reporting Tools
10.   Incorporate FHWA Bridge Goals into Business Plans


                                                 Presented in
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Summary of Initiatives               (continued)


11.   Hold an Annual Bridge Maintenance Program Review (AAR)
12.   Enhance On-line Bulletin 15 (Products)
13.   Develop On-line Pub 55 (Performance Standards)
14.   Provide Uniform Statewide Training for Bridge Crews
15.   Training and Testing Bridge Crew Foremen
16.   Add a Step to Scoping Field View to Prioritize Activities
17.   MORIS / mySAP Requirements
18.   BMS System Requirements
19.   Establish a Minimum Level of Funding for New Bridge Designs
20.   Initiate Bridge Unit Review of all Surface Improvement Projects
      for Deadload and Clearance

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Summary of Initiatives               (continued)


21.   Develop Life Cycle Improvement Policy for Bridges
22.   Expand or Reclassify Bridge Maintenance Priority Codes
23.   Coordinate with Department Asset Management Activities
24.   Initiate a Communication Plan to Present Bridge Needs
25.   Add “Bridge Reserves” Line Items to the TIP
26.   Develop or Acquire Network-level “What-if” Modeling &
      Analysis Tool
27.   Provide Uniform Statewide Training for Bridge Inspectors for
      Encoding Maintenance Priority Codes
28.   Include Maintenance History in Bridge Inspection E-form
29.   Develop a Standard Programming Worksheet
30.   Develop or Acquire Project-level “What-if” Modeling & Analysis
      Tool
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Potential Timeline for Initiatives




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Potential Timeline for Initiatives   (continued)




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Cost / Benefit Analyses
   Detailed costs & benefits for each initiative,
    representing FY 02-03 through FY 07-08
   Long-range benefits of extending bridge life are not
    included in the cost / benefit analysis
       Process Integration Team members hesitant to include
        these benefits in the analysis because benefits assume:
             Changes are implemented
             Funding and other resources are provided for bridge needs
              as the modeling tools suggest
       Two alternative ways to view these long-range benefits



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Long-range Benefits – Method 1
Implementing initiatives & obtaining all funding & resources
result in extending bridge life 20%
   Potential Benefit
        $25M per year
   Calculation Information
        Based on replacement cost for deck area, current value of bridge
         system is $15B
        Bridge life extended 20%, resulting in average expected life of 120
         years
   Result
        ($15B x 20%) / 120 years = $25M+ per year




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Long-range Benefits – Method 2 (Case A)
Implementing initiatives & obtaining all funding & resources
result in annual benefit in bridge needs and user costs
   Potential Benefit – Case A – 10% Increase
        $54M per year
   Calculation Information
        Current backlog of bridge needs is >$2B (BIAS Analysis of NBIS data)
        Assume an effective increase in $300M annual budget or efficiency
         (10% increase to $330M / year in today’s $)
        Discounted 10-year benefit to current operations (BIAS); reflects net
         benefit (User Benefit + Reduced Backlog – Increased Cost to Achieve
         = $436M)
   Result
        Annual benefit in bridge needs & user costs = $54M

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Long-range Benefits – Method 2 (Case B)
Implementing initiatives & obtaining all funding & resources
result in annual benefit in bridge needs and user costs
   Potential Benefit – Case B – 20% Increase
        $89M per year
   Calculation Information
        Current backlog of bridge needs is >$2B (BIAS Analysis of NBIS data)
        Assume an effective increase in $300M annual budget or efficiency
         (20% increase to $360M / year in today’s $)
        Discounted 10-year benefit to current operations (BIAS); reflects net
         benefit (User Benefit + Reduced Backlog – Increased Cost to Achieve
         = $724M)
   Result
        Annual benefit in bridge needs & user costs = $89M

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Long-range Benefits




 BIAS analysis of the effect on bridge needs of increasing bridge budget
                      by 10% (green) and 20% (blue)
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Long-range Benefits
                         100



                          90



                          80



                          70
Net Disc. Benefit ($M)




                          60



                          50



                          40



                          30



                          20


                                                                                              10% Increase
                          10
                                                                                              20% Increase


                           0
                                 1        2       3     4     5           6   7    8      9             10
                                                                   Year

                                     Net discounted annual benefit of an effective increase in
                                                    PENNDOT bridge budget
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Implementation Plan Cost/Benefit Analysis
   The following chart and graph summarize the costs and
    benefits associated with the implementation plan initiatives
       Costs include
             Person hours
             Consulting Fees
             Development software/hardware
             Some operating software/hardware (does not include production
              servers – may use capacity on existing infrastructure)
       Quantifiable Benefits directly associated with the initiatives
        include
             Person hour savings
             Saved road user costs
             Reduced rework



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Summary – Cost / Benefit Analysis

 Fiscal Year                   Cumulative       Annual       Cumulative
     End        Annual Cost       Cost          Benefit        Benefit
  6/30/2003     $ 2,669,228   $ 2,669,228   $     417,611   $     417,611
  6/30/2004     $ 2,640,058   $ 5,309,285   $   2,338,458   $   2,756,069
  6/30/2005     $ 2,557,705   $ 7,866,990   $   4,074,365   $   6,830,434
  6/30/2006     $     5,850   $ 7,872,840   $   4,074,365   $ 10,904,799
  6/30/2007     $    26,430   $ 7,899,270   $   4,074,365   $ 14,979,164
  6/30/2008     $     5,850   $ 7,905,120   $   4,074,365   $ 19,053,529




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Summary – Cost / Benefit Analysis

                       BMS Re-write BPR Cost/Benefit Analysis

 $25,000,000


 $20,000,000


 $15,000,000


 $10,000,000
                                                                Annual Cost
  $5,000,000                                                    Cumulative Cost
                                                                Annual Benefit
                                                                Cumulative Benefit
        $-
                2003     2004   2005   2006   2007   2008




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Next Steps for Implementation

   Approve Implementation Plan
   Identify names as owners of tasks that
    currently list only the organization name
   Start implementation monitoring by Gannett
    Fleming




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Phase II Work Plan – Suggested Tasks
1. Project Management
2. Evaluate and Prototype a Predictive Modeling Tool
3. Implement Short-Term, High-Impact Reporting
   Capability
4. Develop BMS Business Plan
5. Develop BMS User Requirements
6. Perform Software Analysis
7. Prepare BMS Conceptual System Design
8. Develop an Implementation Strategy

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1. Project Management

   Objective
     To manage the success of the BMS Re-Write
      Phase II project through experienced planning,
      careful tracking, and accurate reporting
   Deliverables
     Project Organization Chart
     Project Work Plan
     Status Meeting Schedules, Agendas, and
      Minutes

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2. Evaluate and Prototype a Predictive
   Modeling Tool

   Objective
     To confirm Predictive Modeling Tools can provide
      benefits to PENNDOT’s bridge management
      process
     To evaluate the feasibility of integrating an
      existing Predictive Modeling Tool into the BMS
      system
   Deliverables
     Prototype Modeling Tool Feasibility Report
     Prototype Modeling Tool Evaluation

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3. Implement Short-Term, High-Impact
   BMS Reporting Capability
   Objective
     To implement a reporting capability using the
      existing Relational Bridge Inventory Database
      (RBIDB) and available report writing tools to help
      satisfy the immediate need for a more robust,
      user-friendly reporting capability for the existing
      BMS legacy data
   Deliverables
     Prioritized       list of BMS Reports to be created /
      re-written
     20 BMS Reports

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4. Develop BMS Business Plan

   Objective
     To establish a consistent vision of the new Bridge
      Management System, in its scope, functionality,
      and cost
   Deliverables
     Business         Systems Plan




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5. Develop BMS User Requirements

   Objective
     Todocument the user requirements for the new
      BMS system
   Deliverables
     BMS       Requirements Definition Report




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6. Perform Software Analysis

   Objective
     To identify candidate software packages and
      evaluate the feasibility of integrating these
      packages into the new BMS system
   Deliverables
     Software  Analysis Report
     Alternative System Design Report




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7. Prepare BMS Conceptual System Design

   Objective
     To  create a detailed Conceptual System Design
      for the new BMS system using the system design
      alternative selected in the prior task
   Deliverables
     BMS       Conceptual System Design Report




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8. Develop an Implementation Strategy

   Objective
     To allow the Department to successfully plan for
      and budget the human, hardware, and software
      resources required for implementing the new
      BMS system
   Deliverables
     BMS       System Implementation Plan Report




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Next Steps for Phase II

   Gain consensus on the Work Plan
   Gain consensus on the Estimate
   Issue a Field Purchase Order
   Start Phase II




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