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Is your organization as efficient as it could be?
How can your company become more efficient?
Are you wasting valuable resources (time, money)?
Are you exerting more effort than necessary to perform your current business processes?
Efficiency & Your Organization
Optimize: Tougher competition in the marketplace is generating the need to better optimize resources
Eliminate Waste: Improve profitability and keep customers satisfied
To improve operations and provide faster customer response
Meet your specific construction (No matter what segment of construction you are in) business requirements
Why Become More Efficient?
Make things better
You need better processes to gain greater control over your environment
You need new technology to stay competitive
You need to bring in new knowledge and techniques to your organization
Why Business Process Improvements (BPi)
CMiC BPi Focus - Stage 1
Stage 1 – Strategic Planning
This is the
What
Who
When
The What
CMiC BPi Focus - Stage 1
Focus on the highest ROI processes
Job Initiation Process
Estimate to JC Budget
Forecast to WIP
Payment Management
Potential Change to Owners Change Order
Contract to Pencil Copy to Owners Invoice
What is a Problem?
Something that results in a loss of productivity
Increases the “Risk-Metric” of a company
Reduced information availability
Creates customer or Employee DIS-satisfaction
What is a Problem?
In summary:
A problem is anything that causes waste!
Waste IS quantifiable
Waste IS not always obvious to the end user
Waste needs to be determined on an ‘end-to-end’ enterprise basis
Current Infrastructure:Non-Integrated Approach
Increased exposure to risk
THE RIPPLE EFFECT
Impact
Current Infrastructure:Non-integrated Approach
Minor “efficiency pop”
Gain is unsustainable and will be levelled off
Improvements will quickly max out
Problems with current infrastructure:
The Efficiency Chain:Everything Is Connected
The improvement is not sustained throughout the organization if only implemented in one business process or department
Because the efficiency curve is not transferred to your next process any temporary gains received will quickly max out
% E
ffici
ency
Efficiency Curve
Time
Current Infrastructure:Non-integrated Approach
Summary:
Current Infrastructure:Non-integrated Approach
The automation of a process provides improvements in one area but does not improve the overall business process across the organization through various departments/
Efficiency curve is not transferred into your next process
The Efficiency Chain: Everything Is Connected
To manage an organization efficiently and effectively you must look at the overall structure and look at savings end to end
The Efficiency Chain: Everything Is Connected
About ABC Company:
The CMiC Advantage: A ROI Process that Makes Sense
100 plus years old
General contracting, constructionmanagement and design-build services
10 Regional offices
Listed in ENR’s Top 100 GeneralContractors List
Multiple construction disciplines
ABC Company: Current Technology Infrastructure (Systems Used)
Accounting - Legacy Character mode system
Standalone Equipment Management system
Standalone SRM System
Offline Bid Management
Minor interfaces developed inhouse
The CMiC Advantage: A ROI Process that Makes Sense
Waste eliminated - reduced # of steps
Redundancy reduced
Time and costly resources saved
Efficiency gained across the entire organization
Business process improved
Reliable and timely information available
The CMiC Integrated Approach Breakthrough Improvements
pinez
The CMiC Integrated Approach Breakthrough Improvements
Example: ForecastingNumber of steps required with Standalone non-integrated approach: 14Number of steps required with CMiC’s integrated approach: 3 Forecast cost and revenue
Review for negative variances and reforecast
Store forecast
Forecasting Comparison of Savings
Savings (Steps)
14
Current CMiC Savings
3
11
Forecasting Comparison of Savings
20
18
16
14
12
10
8
6
4
2
0
Effo
rt U
nits
Savings (Days)
Steps1 3 5 7 9 11 13 15
Current
CMiC
Qualitative Benefits
One database eliminates need to consolidate information from multiple sources
Cost and revenue forecast done from single point of entry
Comparisons with Excel spreadsheets and Standalone PM no longer required
The CMiC Integrated Approach Breakthrough Improvements
The Ripple Effect Revisited
Improvement of Process
Improvement of process
One major IMPROVEMENT can now reflect throughout the organization’s departments
The Ripple Effect Revisited
WORK IN PLACE (WIP)
REVENUE RECOGNITION
FORECASTING
The Ripple Effect Revisited
WIP - Comparison of Savings
Savings (Steps)
12
10
8
6
4
2
0
Effo
rt U
nits
Savings (Days)
Steps
1 2 3 4 5 6 7 8 9 10 11
Current
CMiC
WIP - Comparison of Savings
The CMiC Integrated Approach Breakthrough Improvements
Qualitative Benefits
PM has ability to freeze forecast once completed
One database eliminates duplicate entry and minimizes use of spreadsheets
Comparison of Efficiency
Time
Live Demo
ABC Company:ROI Case Study Overview
Savings Highlights (Effort Units)
Job Forecasting - 16 Effort Units
Subcontract Payment Processing- 11 Effort Units
Human Resources - 12 Effort Units
Job Budget Creation and Billing- 8 Effort Units
CMiC BPi Focus - Stage 1
The Who
Your Team should consist of:
Executive Sponsor
Project Manager
Functional Team Heads from Departments
Example in Forecast to WIP
One Person to represent Accounting
One Person to represent Operations
CMiC BPi Focus - Stage 1
The When
Schedule all stages of the implementation in advance with slide time
CMiC BPi Focus - Stage 2
Stage 2 – Creating a BusinessProcess Map
Think of this as a Schematic Design
Business Process Mapping Seminar Conducted by a Business Process Engineer
Document of all major steps
Inputs and Outputs
Creation of Business Process Documents
CMiC BPi Focus - Stage 3
Stage 3 – Setup of 50% design
Using CMiC Project Engineers CMiC will setup based on the BPM document
These will involve assumptions based on information provided during the Business Process Seminar
This will be presented to the client team
This presentation will involve most major inputs/outputs and steps
CMiC BPi Focus - Stage 4
Stage 4 – Training and Use Case Testing
Concurrently with the setup of 50% design client team will create use cases to test the design assumptions
These use cases should be in 2 categories
80% rule – the normal state of affairs
20% rule – the difficult situations
CMiC BPi Focus - Stage 4
Stage 4 – Use Case Testing
After training by a CMiC trainer the team will ‘beat up’ the design
Test and approve all use cases
If changes to design are required it must be documented and BPM updated
Once all changes are made this will product 80% design
CMiC BPi Focus - Stage 5 And 6
Stage 5 – Training Material
Devlopment of end user training material
Stage 6 – Data conversion
Collection and Validation of Data
CMiC BPi Focus - Stage 7
Stage 7 – Pilot Go Live
The first go live should be conducted ona small scale
A set of key players that are flexible and easy to work with
Final changes will be made to design
CMiC BPi Focus - Stage 8
Stage 8 – Final Go Live
This is where we complete total roll out for the process improvement
Metrics should be gathered and documented of the improvement
CMiC BPi Focus - Stage 9
Stage 9
Post Implementation analysis
What went right
What went wrong
Where can the process be improved next
CMiC BPi Focus - All Stages
Stage 1 – Pilot Go Live
Stage 2 – Business Process Mapping
Stage 3 – 50% Design
Stage 4 – Training and Use Case Testing
Stage 5 – Training Material Creation
Stage 6 – Data Conversion
Stage 7 – Pilot Go Live
Stage 8 – Go Live
Stage 9 – Post Implementation Analysis