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Business Process Improvement (using Lean Six Sigma)

The Australian Computer Society offers ACS members and non members an opportunity to undertake postgraduate study in one of our specialist subjects Business Process Improvement (using Lean Six Sigma) from the Computer Professional Education Program. The CPe Program consists of three core and one elective subject.  Our elective subjects are normally the last subject undertaken in the CPE Program, unless it is undertaken as a stand-alone subject.

Business Process Improvement is one of the important competencies of an IT professional. For an IT Service organisation, demonstrating performance improvement is essential to compete in the market place. Lean and Six Sigma are proven business process improvement methodologies that have been practiced in many industries, including manufacturing, pharmaceutical, healthcare, financial services for the past two decades. In this course we will apply these proven concepts in an IT organisation. We will also learn about the related best practices including ITIL, ISO/IEC 20000 and CMMI where applicable.

The participants may also undertake a business improvement project after completing this course. Successful completion of the business improvement project will lead to Lean Six Sigma Green Belt certification.

After completing this course, the participant will be able to:

• Understand the principles behind Lean and Six Sigma methodology,
• Understand  ITIL Continual Service Improvement methodology,
• Apply the concepts in the IT environment,
• Develop a business case to promote a change program vision,
• Prioritise the initiatives to ensure maximum improvements are made in the business operations,
• Analyse business processes systematically,
• Establish requirements for the implementation of a significant business process change. Evaluate the financial, cultural, technological, organisational and environmental factors which must be addressed in the change programme,
• Identify the changes required in the process, organisational roles and responsibilities, and scope or nature of service delivery as a result of implementing this process improvement.

CONTENT

Week 1: Introduction to Lean Six Sigma
We will understand the two different methodologies Lean and Six Sigma and how they can be combined to deliver an efficient, customer oriented service. We will also compare the methodologies with ITIL and other best practices.

Week 2: Introduction to Service Quality
In this module we will explore the meaning of “Service Quality”.  We will understand the academic and industry models and the practical manifestation of the models. 

Week 3: Define a business improvement problem
This week we will learn how to define a business improvement problem.  We will develop a Critical To Quality (CTQ) matrix that will capture the “Voice Of Customer”.

Week 4: Define a business improvement problem (continued)
In this module we will develop a project charter based on your understanding of the customer priorities. We will explore the challenges of running a business improvement project.

Week 5: Measure business process
Measurement is key differentiating principle between Lean-Six Sigma and other improvement methods. In this module we will

• revise our understanding of basic statistics
• understand the challenges in collecting metrics in an IT environment
• identify “critical few metrics” that are needed to monitor the business improvement project

Week 6: Measure business processes (continued)
We will understand the steps in developing a practical measurement plan.  We will discover the practical implications of measuring the process variations instead of using the average.

In week 6 you will submit your first Assignment.

Week 7: Analyse business processes
We will analyse the process by developing a business process map.  We will develop an “as-is” process map and a “to be” process map.

Week 8: Analyse business processes (continued)
We will identify and validate the root causes that assure the elimination of “real” root causes and thus the problem the team is focused on.

Week 9: Improve business processes
So far, we have defined, measured and analysed a possible solution. In the improve phase, we have to make the change happen. Depending upon the nature of the change different approaches need to be taken.

The activities in the Improvement phase are:

• Generate Solutions
• Prioritise the solutions
• Pilot the solution, if required

Week 10: Improve business processes (Continued)
We will commence developing a business improvement plan for a major initiative in your organisation. This plan is to be submitted on week 13 for Assessment 2. 

Week 11: Control business process improvement
In “control” module we will understand the importance of planning and executing against the plan. We will also determine the approach to be taken to assure achievement of targeted results.

Week 12: Realise the benefits of business process improvement
Benefits Realisation Management includes:

• Defining the benefits
• Planning to monitor the benefits
• Establish organisation structure, tools to monitor
• Reporting the benefits realised
• Take actions based on information

Week 13: Summary and next steps
In this final week, we will summarise the course and develop an action plan.  You will also submit your second Assignment.

Assessment consists of two assignments plus participation in discussion forums.

• Contributions to the 13 weekly discussion forums, worth 20% of your total assessment.
• Assignment 1 – worth 30% of your total assessment
• Assignment 2 -  worth 50% of your total assessment

To pass the subject overall, it is necessary to pass in both areas of assessment. 

Competencies based on Skills Framework for the Information Age (SFIA)
The course is aligned with SFIA competencies  Business Process Improvement (BPRE) and Benefits Management (BEMN).
The subject is designed to provide Level 5 competencies in BPRE and BEMN.
The participant can optionally undertake a business improvement project after completing the course. The business improvement project will be assessed to ensure the participant has demonstrated Level 5 or Level 6 competencies in BPRE and BEMN. Successful project completion will also lead to Lean Six Sigma GREEN BELT certification.”

Level 6 Analyses business processes; identifies alternative solutions, assesses feasibility, and recommends new approaches, typically seeking to exploit technology components. Evaluates the financial, cultural, technological, organisational and environmental factors which must be addressed in the change programme. Establishes requirements for the implementation of significant changes in organisational mission, business functions and process, organisational roles and responsibilities, and scope or nature of service delivery.

Level 5 Analyses business processes; identifies alternative solutions, assesses feasibility, and recommends new approaches. Contributes to evaluating the factors which must be addressed in the change programme. Helps establish requirements for the implementation of changes in the business process.

Level 6 Promotes the change programme vision to staff at all levels of the business operation, brings order to complex situations, and keeps a focus on business objectives. Works with senior people responsible for the line business operation, to ensure maximum improvements are made in the business operations as groups of projects deliver their products into operational use. Maintains the business case for funding the programme and confirms continuing business viability of the programme at regular intervals.

Level 5 Identifies specific measures and mechanisms by which benefits can be measured, and plans to activate these mechanisms at the required time. Monitors benefits against what was predicted in the business case and ensures that all participants are informed and involved throughout the change programme and fully prepared to exploit the new operational business environment once it is in place. Supports senior management to ensure that all plans, work packages and deliverables are aligned to the expected benefits and leads activities required in the realisation of the benefits of each part of the change programme.

WORKLOAD
To complete the subject you will need to spend 8-10 hours each week reading, communicating with colleagues and tutors, and preparing assignments. 

TEACHING STRATEGIES
This subject is delivered online – No classrooms, just e-learning techniques, plus tutor and peer-to-peer interaction. The course is moderated and supported by a tutor, a personal mentor, student discussion forums and weekly feedback through ACSEducation.  Students are grouped in cohorts of approx. 10 - 20. The students are also supported by the Registrar with email, phone, and fax contact.

SPECIALIST FEATURES OR EQUIPMENT
The subject is supported by a website ACSEducation hosted by Moodle where the online learning takes place. All learning materials plus discussion forums are available through this site, apart from the text book.

REFERENCES
Lean Six Sigma Secrets for the CIO by Bentley and Davis, CRC Press, 2010  ISBN 9781439803790

MORE INFORMATION

For more information on Business Process Improvement (using Lean Six Sigma)  email pam.barnes@acs.org.au  Freecall 1800 671 003              

For information on the Computer Professional Education Program visit www.acs.org.au/cpeprogram 

Updated 8 June 2010