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Process Simplification for RPA from Complex to Simple Processes As a Pre-Requisite for Process Automation and Implementing AI

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Process Simplification for RPA from Complex to Simple Processes As a Pre-Requisite for Process Automation and Implementing AI Process Simplification for RPA From complex to simple processes as a pre-requisite for process automation and implementing AI 23 November 2018 PM Day 2018 Workshop Typical Application of RPA to Business Processes • Data extracts from IT systems, scanned documents, PDFs, other formats (screen scraping, OCR – optical character recognition) • Data transfer and entry (migrate information from files, formats e.g. CSV) • Regular report preparation and sharing (auto-generate reports, analyze contents and based on the contents, email them to stakeholders) • Quote-to-cash (sales operations processes >> send invoices earlier – pay earlier) • Procure-to-pay (extracting invoice and payment data from multiple systems and integrating information via RPA) • Customer onboarding (customers start using the product after purchase / sign up, loading customer profile and preferences, detailed billing data) • Mass emails (get data from multiple systems and send, regular emails – electronic utilities bills) https://blog.appliedai.com/robotic-process-automation-use-cases/#common-business-processes Typical Application of RPA to Functions Sales Tech support • Create and deliver invoices, CRM • Diagnostics updates • Regular testing Customer service • Software installations • Updated customer profile and • Automated tools for preferences employees / customers • Billing data HR • Resolving basic customer issues • Payroll Finance • Absence management • FP&A activities • Employee data management • Reconciliations Insurance • P&L preparation • Claims processing RPA Enablers and Challenges Enablers Challenges • Standardized and streamlined • Complex processes: inconsistent and business processes non-standard business processes • Underestimating the amount of • Change management capability change to deliver on digital transformation • Lack of leadership strategy for process • Business model and strategy to drive standardization and automation standardization and efficiency Process Simplification Focus improvement efforts on process simplification • Use of quality methods (Lean Six Sigma) to drive process simplification • Automation of simplified processes • Pre-requisite for implementing RPA (robotic process automation) From this… …to this: Use of Lean Six Sigma quality methods for process simplification Lean Six Sigma Process Simplification Roadmap 1. Define 2. Measure 3. Analyze 4. Improve 5. Control Describe the problem Collect baseline data Identify the root cause Select the best solution Sustain the gains ▪ Project Selection ▪ CTQ Metrics ▪ Pareto Chart ▪ Brainstorming ▪ Statistical Process ▪ Project Charter ▪ MSA ▪ Run Chart ▪ Benchmarking Control ▪ VOC ▪ Summary Statistics ▪ Cause and Effect ▪ Force Field Analysis ▪ Control Plan ▪ Define the Problem ▪ Process Capability ▪ Scatter Diagram ▪ Criteria Test ▪ Cost-Benefit Analysis ▪ Map the process ▪ Control Chart ▪ Value Analysis ▪ FMEA ▪ Mistake Proofing Project Critical To Quality Tree Analysis and Charter Selection of Cause & Effect Solution Diagram Statistical Process Control Voice of the Risk Assessment Customer Measurement Surveys and System Analysis Sustainability & data Pareto Chart benefits Proces Solution s Project Implementation Map Summary handover to Run Chart Statistics operations Identify the inputs Identify the Identify the output Optimise Process control (x’s) and value opportunity measures (y’s) the process and sustain the gains adding steps Process Simplification Strategy What is the problem you are trying to solve? (e.g. process too complex, takes too much time to complete, multiple errors) 1. Problem statement Confirm primary purpose of the process Use KPIs to measure 6. Metrics 2. Voice of the – what should the process produce as business impact definition Customer OUTPUT (e.g. a list of numbers, a report, a graph) Prioritize simplification Identify and remove all waste in the 3. Process 5. Pareto processes – process steps that do not add efforts and impact mapping diagram value and make the processes complex (double processing, unnecessary 4. SIPOC approvals, too many details, waiting) diagram Check user requirements about the desired OUTPUT (e.g. level of detail, timeliness, delivery mode) Case study Handout 1 Case Study Description Background In Sales Operations department of a European furniture production company, there is a regular weekly report of sales volumes in country X. Customers of report: Head of Sales in country X, Country Managing Director, account managers Timeline Report is due every Monday 10.00 for previous week data on sales volumes Delivery mode Report is sent by email to all customers Data sources IT system extract (data available at 9.00 on Mondays) and two Excel files (uploaded by Friday EOB on a sharepoint site by a staff member - Tim) Roles and Report is produced by three staff members – extracting the data from IT system (Billy), uploading 2 Responsibilities Excel files on sharepoint (Tim), merging data, data restructuring and dissemination (Anna) Current issues 1. Delays - (report is delivered by 10.00 in only 75% of cases, between 11.00 and 12.00 in 20% of cases, after 12.00 - 5%) 2. accuracy – report contains errors (68 errors for the previous month) - leads to requests to double check, amend errors and resend Customer feedback: Customers unhappy that the report is delivered later than the time agreed and has errors 1. Problem Tool 1: Problem Statement statement A problem statement should: A problem statement should not: • State how big is the problem • Share an opinion about what is wrong • Show data to support the statement • Describe the cause of the problem that we have a problem • Assign blame or responsibility for the • Demonstrate how it is measured problem • Contain quantifiable information • Recommend or prescribe a solution about the problem and its impact on customers 1. Problem Tool 1: Problem Statement statement Handout 2 Case Study: Describe the problem and the business impact …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… 1. Problem Tool 1: Problem Statement statement Case Study: Describe the problem and the business impact The regular weekly report of sales volumes in country X has been consistently delayed (only submitted on time in 75% of cases). It also contains errors (68 errors reported last month) which has led to multiple edits and resubmissions. 2. Voice of Tool 2: Using Voice of the Customer the Customer Proactive and consistent feedback ▪ Foundational concept in quality programs ▪ VOC methods: - Surveys via telephone, mail, email, or online - Focus groups in person or online - Interviews - Beta or user testing - Feedback forms - Customer complaints - Social media or site interaction - Reviews 12 2. Voice of Tool 2: Using Voice of the Customer the Customer VOC helps formulate Critical to Quality (CTQ) characteristics that are the major drivers of Requirement quality within an organization or process Driver Customer Requirement Why identify CTQs? Need • Key characteristics that can be measured Driver Requirement • Critical to narrow and focus work scope • CTQs are factors that drive 80% of customer satisfaction • Helps create the most improvements possible within the available resources • Managing a few critical metrics helps ensure excellent output 2. Voice of Tool 2: Using Voice of the Customer the Customer Translate Voice of the customer feedback into specific and measurable requirements Critical to Quality (CTQ) Diagram Requirement Driver Customer Requirement Need Driver Requirement 14 2. Voice of Tool 2: Using Voice of the Customer the Customer Requirement Driver Case study: CTQ Tree Customer Requirement Need Driver Requirement Report has few to errors (95% of submissions) Report is accurate No report resubmissions required Report received on time (95% of submissions) and accurate Report is received by Report is received on 10.00 on Mondays time (95% of submissions) 15 3. Process Tool 3: Process Maps mapping Benefits of using Process maps • identifying any disconnected steps in a process • identifying and clarifying any responsibilities and relationships • identifying non value-added activities • isolating process bottlenecks • discovering opportunities for improvement • determining corrective actions 3. Process Tool 3: Process Maps mapping Handout 3 Case Study: Process Map Sales Volumes Weekly Report Production and Dissemination Phase Send data extract o IT system download Anna IT system IT(Billy) Excel files uploaded Start on sharepoint Excel files Excel (Tim) files Do additional Anna receives input Download the Excel Consolidate all three Restructure & edit Finalize report checks, edit and End from Billy files inputs volume data Anna resend No Send to end Report correct Yes End customers Customers 4. SIPOC Tool 4: Using SIPOC diagram diagram SIPOC helps you learn about the process, its components and linkages to other processes SIPOCs can be created in a brainstorming session, diagramming takes team effort and analysis to complete. Done by project team, including SMEs and process owner. Level of detail varies from detailed level to high level process. Suppliers Inputs Process Outputs Customers 18 4. SIPOC Tool 4: Using SIPOC diagram diagram Creating a SIPOC Diagram Step 1: Create Process flow Step 2: Set Boundaries and Name Your Process Step 3: Complete Process flow • Name Outputs and Customers • Name Inputs and Suppliers Step 4: Validate the Information 19 4. SIPOC Tool 4: Using SIPOC diagram diagram Handout 4 Case Study:
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