Sustainable Lean Six Sigma

Transformation through Cordys

www.cordys.com
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www.cordys.com
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Sustainable Lean Six Sigma
It is the ideal platform to empower transformation to
Lean management, and to manage business operations
in the various stages of its transformation journey
from traditional practices via transition phases and
nhay lowards Leah mahagemehl. 0Iagram provIdes a
schemalIc represehlalIoh ol Cordys 80P. Some "mahua"
process improvement implementations, where cultural
changes and organizational changes or process changes
are implemented, without considering opportunities for
real process automation, may consequently introduce
subslahlIa rIsI ahd are IIey lo be sub-oplIma. Such
solutions, where organizations, processes, services, rules
ahd measuremehl syslems ohy exIsl "oh paper" ahd Ih
lhe mIhd ol peope, are dIlncul lo slahdardIze ahd re-use.
Ihese soulIohs are aso dIlncul lo suslaIh, sIhce lhere Is
ho goverhed worIow aulomalIoh. IhIs Ihlroduces lhe
rIsI ol waslIhg chahge ellorls. Il Is aso dIlncul lo mahage
"mahua" processes, ahd peope cah easIy sIde-bacI lo
olds ways of doing work, as opposed to the Cordys BOP
soulIoh lhal supporls peope Ih lheIr worIow lo maIe
daIy operalIohs more elleclIve ahd elncIehl, hehce eah
ahd hIghy oplImIzed.
Cordys 80P empowers Leah SIx SIgma Ih mahy ways. Ihe
main motivation for deploying Cordys BOP comes from
maIIhg chahge produclIve ahd suslaIhabe. Cordys 80P wI
amplify quick wins, and the earlier a company can roll-
oul Ils Leah SIx SIgma Improvemehls over lhe Cordys 80P
busIhess operalIohs pallorm, lhe beller Il Is.
0Iagram z provIdes a vIsuaIzalIoh ol lhe maIh reasohs
lor ulIIzIhg Leah SIx SIgma lor busIhess oplImIzalIoh.
Ih lhIs paper, we dIscuss how Cordys lacIIlales Leah SIx
SIgma "6eheralIoh I" quIcI wIhs ahd how Il empowers
"6eheralIoh II" ellorls oh lhree dImehsIohs: process,
peope ahd orgahIzalIoh. IhIs paper locuses oh eah
transformation and on the work of knowledge workers,
especIay Ih servIce IhduslrIes such as nhahcIa servIces,
telecom operators, energy companies, as well as in the
pubIc seclor.
A Ihowedge worIer Is "a persoh who geherales vaue by
using knowledge to deliver results, as opposed to a manual
worIer who uses machIhery lo produce lhIhgs". Ihowedge
work might range from more repetitive work like claim
handling, to innovative work such as introduction of
hew producls or servIces. Ihowedge worIers operale Ih
lhe domaIhs ol lhe lrohl olnce as we as Ih bacI olnce
processes. we see IhcreasIhgy lhal Ihowedge worIers
heed beller "worIow supporl" lor cross-deparlmehla
processes. Cordys deIvers cross-deparlmehla worIow
solutions that result in increased customer satisfaction with
reduced operalIoha cosls (0PLX).
Diagram1: The Business Operations Platform process layer enables the automation of processes
across the entire organization, and beyond, by externalizing the control
Corporate & Cloud Applications, Services and Data
Cloud Provisioning
Business Operations Platform (BOP)
Grid Foundation
Corporate & Cloud Applications, Services and Data
Composite Application Framework (CAF)
Business Process Management Suite (BPMS)
Service Oriented Architecture (SOA)
MashApps
Composer
Composite
Applications
Business Process
Management
Enterprise
Service Bus
Business
Services
Master Data
Management
Case
Management
Rules
Management
Business Activity
Monitoring
User Interfaces Task Management
MashApps
Marketplace
Introduction
Business Process Management (BPM) and process improvement are part of the core DNA of Cordys
Business Operations Platform (BOP) which supports the management as well as continuous
improvement of business processes, both cross-departmental and enterprise-wide.
www.cordys.com
White Paper
Sustainable Lean Six Sigma
Value stream mapping and base-lining for
business processes
Cordys BOP focuses on the design, modeling, execution,
mohIlorIhg ahd Improvemehl ol execulabe processes.
Processes guide people, interactions and transactions and
Ihlegrale appIcalIohs ahd dala. 8olh vaue slream modes
("maps") ahd (execulabe) busIhess process modes cah
be used lor ahaysIs purposes, bul Ih dIllerehl ways. A
vaue slream mode Is aboul lhe cohlexl ("whal") ahd lhe
purpose ("why") ol lhe process, whereas uhderyIhg modes
ol execulabe processes are aboul lhe "how" ol lhe worI.
Business performance regarding the contribution of teams/
uhIls, Ih lerms ol lIme, cosl ahd quaIly cah be ahayzed.
The units and teams implement their contributing services
vIa processes. Ihese operalIoha process ows ahd cases
can be automated via Cordys BOP, but may also reside in
ehlerprIse appIcalIohs (e.g. LRP) or mIghl eveh be mahua.
0Iagram + provIdes ah ImpressIoh ol ah Ihlegraled vaue
slream mode Ih Cordys 80P.
From the value stream, drill-down is supported to
execulabe processes. 0Iagram u shows a lragmehl ol a case
management process, implementing the service behind
one of the value activities in the value stream (prepare
morlgage). Process- ahd Case-aclIvIlIes cah be mohIlored
ahd ahayzed Ih lhe Ihe-ol-busIhess cohlexl. Process
modes ahd Iey Perlormahce IhdIcalors (IPIs) are cosey
Ihlegraled Ih order lo quIcIy ocale ahd nx lhe rool-cause
ol bollehecIslwasle. (See dIagram + lor a IPI gauge Ih lhe
"Prepare Horlgage" slep).
Waste elimination with Cordys
Ih Leah, seveh calegorIes ol wasle have beeh denhed:
0elecls (poor quaIly, causIhg reworI),
Transportation,
Waiting,
Overproduction,
Inventory,
HolIoh ahd
Lxlra ProcessIhg.
In some cases waste can only be eliminated through
process aulomalIoh. IhIs Is ohe ol lhe obvIous exampes
to prove that deployment of a platform like Cordys BOP
acceerales eah Improvemehls.
Cordys customers have clearly reached a much higher rate
of First-Time-Right in their operational business processes;
this applies to a number of industries including Insurance,
IeecommuhIcalIohs ahd LhergylulIIlIes. wheh cuslomer
orders, requests and other customer-centric processes are
handled in an automated and controlled way, through
Cordys 80P, orgahIzalIohs ceary behenl lrom lhe ellecls ol
Ihcreased lhroughpul wIlh hIgher quaIly.
Diagram 2: Keys to Lean Six Sigma
LEAN Generation I: Taking Control
When applying lean transformation to processes, people and the organization in order to take
control, one of the key drivers is to create momentum for process improvement and build a
foundation of basic capability from which to progress.
Lean Six Sigma
Focusing on customer satisfaction and
operational excellence
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Process Flow
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White Paper
Sustainable Lean Six Sigma
Two patterns of BPM in one
Within the realm of business process automation and
management, we can generally identify two different
pallerhs ol 8PH. IIrsly, produclIoh worIow, whIch Is
very common in application integration and transaction
processing, whereby human interaction is involved to
handle exceptions or to give quick feedback, but where the
humah worIers areh'l Ih lhe drIvIhg seal. A we Ihowh
slahdard lor produclIoh worIow Is 8PHR (8usIhess Process
HodeIhg RolalIoh). Cordys has supporled lhIs slahdard
Ih Ils sollware pallorm. Il a busIhess process cah be
modeed Ih a owcharl wIlh sequehlIa ahd oplIohay
parae aclIvIlIes, lheh we cohsIder lhIs lo be "produclIoh
worIow". Il lhere are loo mahy uhcerlaIhlIes aboul lhe
"ow" ol lhe busIhess process ahd a ol ol dyhamIcs are
Ihvoved lhal cahhol be "pre-pahhed" Ih a owcharl, lheh
we use aholher pallerh ol 8PH - case mahagemehl.
Case mahagemehl Is a more dyhamIc lype ol worIow,
where Ihowedge worIers cah decIde oh-lhe-y (Ior
example, through the role-based web user interface) how
lhe case shoud be hahded lurlher. Ihe maIorIly ol worI
processes in service companies or public agencies follow,
by halure, lhe case mahagemehl slye ol worIIhg. Cordys
BOP supports and offers a fully functional and modular
case mahagemehl soulIoh. Ih Cordys 80P, produclIoh
worIow processes, as we as case mahagemehl processes,
are denhed graphIcay (vIsuay) ahd Ihlegrale peope,
appIcalIohs ahd dala. Ihey are execuled accordIhg lo lhe
mahlra "whal you mode Is whal you execule".
Ior Ihslahce, Ih 0Iagram u, lhe morlgage preparalIoh
process wI be "orcheslraled" by Cordys 80P exacly as
modeed. IhIs ImpIes lhal, Ih order lo IdehlIly delecls
and their underlying root-causes, real-time analysis
can be applied in Cordys at the process execution layer,
resulting in immediate visibility and control across people,
appIcalIohs ahd dala as parl ol lhe ruhhIhg process. A
information that case workers need is maintained centrally
ahd cah be ooIed up ("pued") lrom a cehlra ocalIoh
oh-demahd. IhIs Is hol ohy cohcerhed wIlh case Ihslahce
dala (cehlra "case ne"), bul aso wIlh olher dala, such as
worI IhslruclIohs. Ior exampe, Ih lhe cohlexl ol hahdIhg
ega cases, case worIers mIghl have lo ahayze IurIsdIclIoh.
Jurisdiction is concerned with many documents and
papers. Ihe same appIes lo cases Ih healhcare - ahaysIs
of information to support diagnosis, best selection of
lrealmehl ahd medIcIhe, elc.
In Lean, the focus is not only on elimination of defects,
bul aso oh prevehlIhg lhem lrom occurrIhg. A we-
orchestrated process or well-coordinated case delivers
immediate insight in unnecessary movements, such
as lypIca hahd-oll poIhls belweeh lrohl olnce ahd
bacI olnce. Cordys provIdes IhsIghl Ih such IhelncIehl
lrahsporlalIoh, whIch Is lhe basIs lor eah Improvemehls.
In case management, the workers themselves are largely
involved in deciding which activities to do, but in a
cohlroed mahher, lhIs eImIhales wasle.
State management keeping track of
milestones
A strong feature of Cordys is the ability to model case
slales, or mIeslohes. Ihe use ol such slales wI aso maIe
Cordys Ihslahce HohIlor very elleclIve as lhe basIs lor
mahagIhg lhe slream ol cases. Case modes cah vary lrom
"reguar" lo "specIa". Reguar cases lehd lo be recurrIhg
processes and common milestones and events can be
denhed. Ior Ihslahce, Ih lhe Horlgage requesl hahdIhg
exampe ol 0Iagrams + ahd u lhe nrsl Slale Is "Horlgage
Requesl IhIlIaled" whIe lhe secohd slale Is "Horlage Ih
PreparalIoh". Ih Cordys, Il Is possIbe lo phase loow-up
decisions (to add next activities to the case) over the life
cycle of the case, by enabling such decisions only when
cerlaIh case slales (mIeslohes) have beeh reached.
Diagram 3: Impression of Cordys value stream model
Mortgage & Life Insurance
Order Accept
Prepare M
Request
Order LI
Life Insurance Dept.
Customer Facing Dept.
Customer
Mortgage Dept.
Life Insurance
Order M Mortgage Mortgage & LI
Handle Case
Prepare LI
Property 1: Claim Date
Property 2: Claim Amount
Property 3: Claimant Age
Total time: 10:25
www.cordys.com
White Paper
Sustainable Lean Six Sigma
Lean Six Sigma: Voice of the Customer
Ih Leah, lhe "VoIce ol lhe Cuslomer" Is aboul caplurIhg
lhe vIew ahd requIremehls ol lhe cuslomer. Cordys web
forms generation capabilities can be used for the collection
ol cuslomer leedbacI. Ihe Improved processlcase cah be
extended with case related customer interaction, via an
on-line application, whereby customers can be asked to
provIde leedbacI oh how lheIr case Is hahded. Cuslomer
feedback can also be collected via on-line surveys as part
ol a hew cuslomer-cehlrIc way ol worIIhg.
Analysis of customer demand patterns is another way
lo coecl voIce ol lhe cuslomer IhlormalIoh. Cuslomer
demand patterns can be abstracted from historic case-
and process-instances, as recorded in the Cordys Instance
HohIlor. AccordIhg lo lhe Cordys vIsIoh, busIhess modeIhg
slarls wIlh expIcIl denhIlIoh ol busIhess drIvers, goas
ahd obIeclIves. VoIce ol lhe cuslomer obIeclIves cah lheh
be denhed ahd lhe melrIcs syslem wI be lIed lo lhe
obIeclIves.
Leadership vision and behaviors
Lean enterprise governance requires lean leadership
lrom execulIve eve dowh lo "lrohl-Ihe" worIers.
Iherelore "Irohl-Ihe" worIers are Ihvoved Ih cohlIhuous
Improvemehl. AppyIhg eah ehlerprIse goverhahce cah be
considered an extension and further evolution of Cordys
cosed-oop 8PH melhodoogy lhal Is aready praclIced Ih
numerous projects where business processes are analyzed,
implemented, managed, monitored and improved, based
oh Cordys lechhoogy (see 0Iagram s).
Diagram 4: Cordys case model for the mortgage preparation process
Diagram 5: Cordys closed-loop BPM methodology for continuous
business optimization







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Cordys
Closed-Loop
Business Operations
Improvement
www.cordys.com
White Paper
Sustainable Lean Six Sigma
IhIs melhodoogy, orIgIhalIhg lrom lhe 8PH area, has much
Ih commoh wIlh lhe A+ process ol Leah ahd lhe 0HAIC
proIecl melhodoogy ol SIx SIgma, ahd cohsIsls ol lhe
loowIhg phases:
Qualify and Analyze the organization; select a process,
determine goals and scope, and analyze the as-is process
ahd Ils gaps. LquIvaehl lo "0enhe", "Heasure" ahd
"Ahayze" Ih 0HAIC
0esIgh ahd Hode ah oplImIzed lo-be process, Ils sub
processes, case aclIvIlIes ahd rues. IhIs phase, logelher
wIlh lhe hexl ohe, Is equIvaehl lo "Improve" Ih 0HAIC
0eveop ahd 0epoy servIces, IhlegralIohs,
lrahslormalIohs ahd user IhleraclIohs. IhIs maIes lhe
"Improve" slep Ih 0HAIC reay suslaIhabe
Ruh ahd HohIlor busIhess processes by coeclIhg
process perlormahce IhlormalIoh, such as elncIehcy ahd
elleclIvehess, lor ahaysIs ahd oplImIzalIoh. LquIvaehl lo
"Cohlro" Ih 0HAIC
wIlh Cordys 80P, Improvemehl ellorls IIe 0HAIC, A+,
cosed-oop 8PH ahd IaIzeh, cah be very we denhed ahd
mahaged as cases. Ihe melhodoogy cah be empowered by
lhe lechhoogy.
Stakeholder engagement and
communications
Lean transformation success depends on the engagement
of the people, as empowered workers in empowered work
leams. Lmpowered worIers ahd worI leams shoud aso be
gIveh obIeclIve, dIrecl-lrom-reaIly leedbacI. Case leams
musl careluy ahayze success ahd laIure. Cordys 8usIhess
AclIvIly HohIlorIhg (8AH) as Ihlegraled wIlh cases ahd
processes ehabes lhIs capabIIly- see 0Iagram 6. Cordys 80P
facilitates participation of stakeholders in lean improvement
ellorls Ih varIous ways. As Cordys 80P Is avaIabe oh-
line via a web-browser, lean transformation stakeholders
can access information directly to review metrics, or to
parlIcIpale Ih rea-lIme correclIve or prevehlIve aclIoh.
Business models designed in Cordys are available online
and stakeholders can participate in collaborative analysis,
mahagemehl ahd mohIlorIhg, lhrough Cordys Sollware-as-
a-ServIce supporl. 0peralIoha measuremehl ahd reporlIhg
Cordys is a rich source of business data and performance
(e.g. IPI) dala, as a reevahl evehls lrom lhe execulIoh
of processes, across departmental applications, such as
CRH ahd LRP, logelher wIlh assocIaled busIhess obIecl
attributes, can be stored and retained in Cordys Instance
HohIlor. IhIs Is essehlIa lo Leah SIx SIgma.
Cordys BOP provides a complete infrastructure for
application, web-service and data integration, which is
capable of abstracting any business data required, from
ahy dala source. 0ala abslraclIoh cah be dohe Ih rea-
lIme as we as Ih balch. 8AH (see 0Iagram ) Is based oh
lhIs Ihlraslruclure. 8AH Is used lo cacuale ahd presehl
busIhess perlormahce melrIcs (IPIs ahd IPI lrehds), ahd lo
raise events and trigger corrective and preventive action,
wheh requIred.
Quality assurance systems
As dIscussed above, lypIca SIx SIgma orIehled melrIcs cah
be mohIlored. Ahy dala, requIred lor SIx SIgma-lype ol
analysis can be abstracted from applications and processes,
vIa lhe IhlegralIoh Ihlraslruclure ol Cordys 80P. IhIs
ehabes rea-lIme mohIlorIhg. 8ased oh mohIlored evehls
or cohdIlIohs, bolh Ih rea-lIme, as we as IPI-based,
cases or processes can be started to conduct root-cause
ahaysIs, as we as correclIve ahd prevehlIve aclIoh. 0ala
quality management is an integral aspect of total quality
mahagemehl. Cordys 80P ollers Ihlegraled supporl lor
(master) data quality management, supporting techniques
such as cleansing, de-duplication and cross-referencing of
dala, bolh Ih balch ahd Ih rea-lIme. Smoolh IhlegralIoh
with components from data quality product vendors, such
as Trillium and Human Inference, is offered out-of-the
box.
Diagram 6: Cordys Business Activity Monitoring - online KPI monitoring
White Paper
Sustainable Lean Six Sigma
Creating excellence is about delivering transformational
results, by embedding the lean culture into the new
busIhess. Cordys cuslomers have ceary reached a much
higher rate of First-Time-Right in their operational business
processes - this applies to a number of industries including
Ihsurahce, IeecommuhIcalIohs ahd LhergylulIIlIes.
When the improvement initiative effort ramps up, the
number of changes to be implemented in the operations
(in execution) will increase rapidly, and there has to be
a way to implement business changes in a fast and agile
way. Cordys 80P ehabes exacly lhIs, as hew busIhess
processes ahd "composIle" (or "mashup") appIcalIohs cah
be "composed" oh-lhe-y, lrom exIslIhg or hewy crealed
web-services, leveraging existing IT infrastructure and
applications, and based on well-integrated, graphical and
oh-Ihe avaIabe modes. Cordys 80P Is hIghy scaabe. Il
is able to massively manage business processes, enterprise-
wIde. IhIs aso ehabes lhe compahy lo slahdardIze 8PH
based oh a sIhge pallorm.
To summarize, a lean transformation approach combined
with the Cordys BOP facilitates the standardization of
continuous improvement efforts, facilitating increased
cuslomer salIslaclIoh whIe reducIhg cosls.
LEAN Generation II: Creating Excellence
www.cordys.com
www.cordys.com
Cordys Is a goba provIder ol sollware lor busIhess process IhhovalIoh. 6oba zooo compahIes wordwIde have seecled Cordys lo achIeve perlormahce Improvemehls
Ih lheIr busIhess operalIohs such as Ihcreased produclIvIly, reduced lIme lo marIel ahd lasler respohse lo ever-chahgIhg marIel demahds.
Ieadquarlered Ih lhe Relherahds, Cordys Is a goba compahy wIlh olnces Ih lhe AmerIcas, LHLA ahd AsIa-PacInc.

CopyrIghl zo Cordys Sollware 8.V. A rIghls reserved.
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