Detailed Study Notes on Engineering Process Design

Introduction

  • Course Instructors

    • Assoc Prof Yee Fook Cheong: Yee.FookCheong@SingaporeTech.edu.sg

    • Adj Prof Goh Thong Ngee: thongngee.goh@singaporetech.edu.sg

    • Dr. Ivan Tan: af_ivan.tan@singaporetech.edu.sg

    • Dr. Stephen Lee: af_stephen.lee@singaporetech.edu.sg

Course Materials

  • All lecture recordings and course materials are for personal use in relation to studies.

  • Unauthorized distribution considered a breach of code of conduct, subject to disciplinary action.

Course Overview: Design of Engineering Processes

  1. Process Definitions and Models

  2. Process Scope

  3. Process Analysis

  4. Publishing Processes

  5. Process Frameworks

    • What Is a Process Framework?

    • How to Leverage a Framework

    • Customizing a Framework

  6. Management of Processes

    • Process Management

    • Strategic Alignment

    • Governance

    • Process Models

    • Change Management

    • Process Performance

    • Process Improvement

    • Tools and Technology

Process Definitions and Models

  • Definitions and models used to clarify what constitutes a process.

Process Scope

  • Determine where a process starts and ends, outlines its boundaries.

  • Importantly influences how processes are perceived and managed.

Process Analysis

  • Use of various tools and techniques to analyze processes effectively.

  • Focus on understanding stakeholder engagement based on roles.

  • Apply best practices for publishing and sharing process documentation.

Process Frameworks

What is a Process Framework?

  • Defines what work is being done and organizes business activities.

  • Example: APQC's Process Classification Framework (PCF).

  • All organizations maintain an 'Order to Cash' process.

How to Leverage a Framework

  • Organizes the process library, defining clear categorizations for processes.

Customizing a Framework

  • Organizations can adapt frameworks to fit their specific needs and contexts.

Key Concepts of Process Frameworks

  • Process Frameworks (The What): outlines what processes must exist.

    • Examples:

    • Receive customer order

    • Fulfill order

    • Invoice customer

    • Receive payment

  • Process Descriptions (The How): details how work is executed in a unique way by an organization.

    • Examples:

    • Orders received via SAP / Oracle / email.

    • Invoices generated automatically every Friday.

    • Payments processed via GIRO / PayNow.

Specific Examples of Process Frameworks and Descriptions

  • Employee Recruitment:

    • WHAT: Recruit employee, Onboard employee, Manage performance, Process resignation.

    • HOW: Recruitment via LinkedIn; HR requires approvals during interviews; performance reviews annually.

  • Procurement Process:

    • WHAT: Identify need, Select supplier, Purchase goods/services, Pay supplier.

    • HOW: Purchases requiring approval specified by dollar amounts.

  • Funding Proposal Process:

    • WHAT: Identify funding opportunity, Submit proposal, Manage awarded grant, Report outcomes.

    • HOW: Internal approvals must take place; budgets validated by Finance Office.

Process Scoping Questions

  • Boundaries: Where does the process start (trigger) and end (outcome)?

  • Context: What is the relevant environment and market for the process?

  • Constraints: What legal or regulatory requirements bind the process?

  • Stakeholders: Who are all individuals or groups affected by this process?

Essential Components of Processes

  • Every process must have a clear starting (trigger) and ending point (outcome).

  • Without clear boundaries, there is a risk of confusion, misalignment, and ineffective improvement efforts.

Context Definition

  • Defining the context includes knowing the industry (public or private), geographic scope, and digital manual balance of the organization.

Business Rules and Constraints

  • Business rules are non-negotiable mandates that must be followed such as laws, regulations, and company policies.

  • Examples include compliance with financial audits and processing personal data as per regulations like GDPR.

Stakeholders

  • Stakeholders can be anyone involved in or impacted by the process: customers, owners, performers, and supporting functions, regulators.

  • Example of a Procure-to-Pay process includes various roles such as requestors, approvers, suppliers, and finance team.

Process Scoping and Analysis

  • A detailed scoping is crucial to identify the beginning and the end of the process, understand the context, and determine all relevant rules and constraints.

  • Stakeholder Analysis: A critical process to gather requirements and ensure stakeholder engagement.

    • Tools for stakeholder analysis include: interviews, surveys, focus groups, observational studies.

Communication Strategy Based on Audience

  1. Executive Leadership:

    • Care about results and strategic alignment.

    • Message: "This process impacts our revenue."

  2. Process Executors (the Doers):

    • Interested in workflow and skills to simplify job functions.

    • Message: "This new design will make your job easier."

  3. Process Oversight (Supervisors & Quality):

    • Focused on decision-making and quality control metrics.

    • Message: "New KPIs are put in place for ensuring quality."

  4. Support Functions (IT, Trainers):

    • Will need to understand their role in supporting new tools and training.

    • Message: "Your team needs to train staff on new processes."

End-to-End Processes (E2E)

  • E2E processes span multiple departments, delivering total value to a customer.

  • Example processes include:

    • Idea-to-Launch: Involves R&D, Engineering, Marketing, and Sales.

    • Hire to Retire: Involves HR, Payroll, Benefits.

    • Lead to Cash: Involves Marketing, Sales, Fulfillment, Finance.

Tools for Process Analysis

  • Utilizing tools such as RACI and SIPOC to gain lines of responsibilities and process flows.

RACI Chart

  • Defines roles and responsibilities for each process step:

    • Responsible (R): Do the work.

    • Accountable (A): Ultimately answerable for task completion.

    • Consulted (C): Offering input before decision-making.

    • Informed (I): Notified post-decision.

  • Problems often stem from unclear ownership and excessive consultation.

SIPOC Diagram

  • A high-level overview of inputs and outputs relevant to a process.

    • S: Suppliers

    • I: Inputs

    • P: Process steps

    • O: Outputs

    • C: Customers

Process Definition Document (PDD)

  • A central document consolidating all relevant information for a specific process.

  • Essential components within a PDD include:

    • Process name and owner

    • Scope and boundaries

    • Flowchart

    • SIPOC and RACI charts

    • Key Performance Indicators (KPIs)

Governance and Best Practices in Process Publication

  • Establish clear design standards and ensure awareness of processes is maintained.

  • Key governance steps include appointing accountable process owners and setting regular review cycles.

Summary of Key Takeaways

  • Clearly scope processes to understand boundaries, context, and stakeholder needs.

  • Design and analyze processes using structured tools.

  • Model and document to foster shared understanding of operations.

  • Publish effectively to ensure process adherence and continuous improvement.

  • Remember: processes are dynamic and need continuous updates based on business evolution.