BAM180 Fundamentals of BPO 102

SAS#2: Quality Management System

Some people generically refer to the group of
PROCESSES documents as a QMS, but specifically, it refers to
• A collection of activities that takes one or more the entire system – the documents just describe it.
kinds of input and creates an output. A QMS integrates the various internal processes
• A sequence of interdependent and linked steps within the organization and intends to provide a
which, at every stage, consume one or more process approach for project execution. A process
inputs (time, energy, money) to create outputs based QMS enables the organizations to identify,
(data, material) measure, control and improve the various core
A process is a series of steps and decisions involved in the business processes that will ultimately lead to
improved business performance.
way work is completed. We may not realize it, but
At its core, a quality management system is an
processes are everywhere and in every aspect of our
integrative element, uniting diverse aspects of a
leisure and work. A few examples of processes might company into a unified purpose of delivering
include: products/services in their best form. Rather than be
• Preparing breakfast seen as a cost burden, an effective quality
• Placing an order management system is viewed as a key component
• Developing a budget of success. Quality management systems focus on:
• Writing a work order Being centered on the customer or consumer of
• Triaging a patient the good or service, actively providing that customer
• Cleaning a room with the best value possible.
• Changing oil in a car Some type of continuous improvement program,
• Strapping down a truck which implies that there is not a “perfect” state, all
• Refueling an aircraft processes can be continually improved upon.
• Putting gas in the car An efficiency imperative that says waste must be
BUSINESS PROCESSES reduced and all resources maximized.
• A business process is a series of steps specifically Top management is to support and provide
designed to produce a product or service. adequate resources to achieve goals.
• A business process begins with an organizational It aids or facilitates a clear understanding of
objective and ends with achievement of the expectations between all participants.
business objective. Measurement and accurate data collection are
A specific event in a chain of structured business incorporated to support data-driven decision making.
activities. The event typically changes the state of data Documentation of QMS processes is maintained
and/or a product and generates some type of output. and controlled.
Business processes occur at all levels of an organization's
activities and include events that the customer sees and Process and business process are similar in a way
events that are invisible to the customer. The term also that they are both collection of activities to come up
refers to the amalgam of all the separate steps toward the with an output. However, in a business process, we
final business goal. Examples of business processes usually call the output as product or service.
include:
receiving orders invoicing shipping products
updating employee information setting a marketing SAS#3: Common Process Improvement
budget. Methodology

QUALITY MANAGEMENT SYSTEMS(QMS)

• QMS is an organization's collective
documentation of processes, policies, plans,
and practices.
• Enables achievement of the goals and
objectives set by providing consistency and
satisfaction in terms of methods, materials,
equipment, etc.
• Think of QMS as a "wedge" that both holds
the gains achieved along the quality journey
and prevents good practices from slipping

Quality Management System is an organization’s

collective documentation of processes, policies, plans and
practices which enables the goals and objectives set by
providing consistency and satisfaction in terms of
methods, materials and equipments.
 BAM180 Fundamentals of BPO 102
So why improve the business process? Some benefits
include:
1. Increased productivity and efficiency:
Continuous improvements in processes can help remove
inefficiencies and ultimately improve the productivity of
team members. With tools for enhancing processes,
organizations can evaluate performance metrics and
evolve processes without restricting the way teams work.
Reporting and analytics provide insights into delivery
trends to remove bottlenecks, predict future issues, and
adapt workflow processes for improved productivity.

2. Faster time to market:

Improving processes by adopting tools such as Kanban
boards and Gantt Charts can help companies deliver
software applications and other products into production
more quickly.

3. Improved product quality:

In addition to accelerating development, process
improvements can lead to higher product quality. For
example, by deploying the proper testing methods,
companies can be more assured that products will
advance to production only when performance, security,
integration, and other issues have been resolved.

4. Increased customer satisfaction and loyalty:

Producing higher-quality products and delivering them in
a timely manner can lead to more satisfied customers.
Happy customers are often return customers, and that
loyalty leads to increased revenue for businesses.

5. Improved employee morale: 1. Total Quality Management (TQM)

Inefficient processes can be highly discouraging for It involves stakeholders as well as the customers in
workers. Who wants to be part of a system that’s broken continuously improving product quality. A key TQM
and leads to frustration? “Weak business processes can activity is a process management where, using a set of
cause the morale of even the most hard-working tools, process performance is measured, analyzed and
employees to decline if they start to feel that all their improved.
efforts are being overwhelmed by the flaws of a system,”
notes online job site Cleverism. 2. Lean Six Sigma
It aims to eliminate the seven kinds of wastes - defects,
6. Competitive advantage: overproduction, transportation, motion,
Continuous process improvements can help set overprocessing, waiting and inventory. It follows the
companies apart from their competition. As noted in an DMAIC framework and analysis tools such as Run
Industry Week article, “the key to differentiating your Charts, Pareto Charts, Scatter Plots, RCA to identify,
company is that your competitors do not design products, analyze and improve process performance.
process orders through customer service, manufacture
them in your plants or even sell and distribute them 3. Quality Management System Standards and
exactly like you do, and that’s where you can create a Certifications
uniqueness that could yield a competitive advantage. It A formalize system that documents processes,
also is where your continuous improvement projects are procedures and responsibilities for achieving quality
concentrated.” policies and objectives and includes International
Organization for Standardization (ISO), Customer
Operations Performance Center Inc (COPC),
Capability Maturity Model Integration (CMMI), and
eSourcing Capability Model for Service Providers
(eSCM-SP).
 BAM180 Fundamentals of BPO 102

SAS#4 : Business Process Mapping and Notation SAS#6: Quality Management Systems in the IT-
Business Process Mapping and Notation BPM Industry
• "standard notation readily understandable by all A. INTERNATIONAL ORGANIZATION FOR
business stakeholders" STANDARDIZATION (ISO)
• Crafted by business analysts
• Reviewed by business managers and performers
who will manage and execute the processes
• Implemented by technical developers

Purpose of process mapping

The purpose of process mapping is for organizations and
businesses to improve efficiency Process maps provide
insight into a process, help teams brainstorm ideas for
process improvement, increase communication and
provide process documentation Process mapping will
identify bottlenecks, repetition and delays. They help to
define process boundaries, process ownership, process
responsibilities and effectiveness measures or process
metrics.

Understanding processes:
Purpose of process mapping
One of the purposes of process mapping is to gain better B. CUSTOMER OPERATIONS PERFORMANCE
understanding of a process. The flowchart below is a CENTER, INC. (COPC)
good example of using process mapping to understand
and improve a process. In this chart, the process is
making pasta. Even though this is a very simplified
process map example, many parts of business use similar
diagrams to understand processes and improve process
efficiency, such as operations, finance, supply chain,
sales, marketing and accounting.

Benefits of process mapping

Process mapping spotlights waste streamlines work
processes and builds understanding. Process mapping
allows you to visually communicate the important details
of a process rather than writing extensive directions.

Flowcharts and process maps are used to:

• Increase understanding of a process
• Analyze how a process could be improved
• Show others how a process is done C. CAPABILITY MATURITY MODEL
• Improve communication between individuals INTEGRATION (CMMI)
engaged in the same process
• Provide process documentation
• Plan projects
Process maps can save time and simplify projects because
they:
• Create and speed up the project design
• Provide effective visual communication of ideas,
information and data
• Help with problem solving and decision making
• Identify problems and possible solutions
• Can be built quickly and economically
• Show processes broken down into steps and use
symbols that are easy to follow
• Show detailed connections and sequences
• Show an entire process from the beginning to the
end
 BAM180 Fundamentals of BPO 102

D. eSOURCING CAPABILITY MODEL FOR SAS#7: Root Cause Analysis

SERVICE PROVIDERS (eSCM-SP) What is Root Cause Analysis?
A root cause is defined as a factor that caused a non-
conformance and should be permanently eliminated
through process improvement. The root cause is the core
issue—the highest-level cause—that sets in motion the
entire cause-and-effect reaction that ultimately leads to
the problem(s).
Root cause analysis (RCA) is defined as a collective
term that describes a wide range of approaches, tools, and
techniques used to uncover causes of problems. Some
RCA approaches are geared more toward identifying true
root causes than others, some are more general problem-
solving techniques, and others simply offer support for
the core activity of root cause analysis.
Root Cause Analysis (RCA) is a popular and often-used
technique that helps people answer the question of why
E. PHILIPPINE QUALITY AWARD (PQA) the problem occurred in the first place. It seeks to identify
the origin of a problem using a specific set of steps, with
associated tools, to find the primary cause of the problem,
so that you can:
1. Determine what happened.
2. Determine why it happened.
3. Figure out what to do to reduce the likelihood that it
will happen again.

RCA assumes that systems and events are interrelated. An

action in one area triggers an action in another, and
another, and so on. By tracing back these actions, you can
discover where the problem started and how it grew into
the symptom you're now facing.

Why a Quality Management System in service industries?

A quality management system works on eight key principles:
1. Customer focus
2. Strong leadership
3. Involvement of people
4. Process approach
5. System approach
6. Continuous improvement
7. Decision making based on facts
8. Creating value for the company, its clients and its suppliers
Many times companies embark on a methodology like Six Sigma,
Lean Six Sigma or others to solve problems without realizing that
these methodologies center on process improvement. For any
improvement methodology to be successful, it is important to first
have a process management and process measurement system. This
helps in identifying defects and then, once a process is improved, a
quality management system provides better control for sustaining
outstanding performance.
 BAM180 Fundamentals of BPO 102

SAS#8: Fishbone Diagram

Why Fishbone Diagram is Important?

HISTORY OF ROOT CAUSE ANALYSIS A cause and effect diagram, often called a “fishbone”
Root cause analysis can be traced to the broader field of total quality diagram, can help in brainstorming to identify possible
management (TQM). TQM has developed in different directions, including causes of a problem and in sorting ideas into useful
a number of problem analysis, problem solving, and root cause analysis.
Root cause analysis is part of a more general problem-solving process and categories. A fishbone diagram is a visual way to look at
an integral part of continuous improvement. Because of this, root cause cause and effect. It is a more structured approach than
analysis is one of the core building blocks in an organization’s continuous some other tools available for brainstorming causes of a
improvement efforts. It's important to note that root cause analysis in itself
will not produce any results; it must be made part of a larger problem-
problem (e.g., the Five Whys tool). The problem or effect
solving effort for quality improvement. is displayed at the head or mouth of the fish. Possible
APPROACHES TO ROOT CAUSE ANALYSIS contributing causes are listed on the smaller “bones”
There are many methodologies, approaches, and techniques for conducting
under various cause categories. A fishbone diagram can
root cause analysis, including:
1. Events and causal factor analysis: Widely used for major, single-event be helpful in identifying possible causes for a problem
problems, such as a refinery explosion, this process uses evidence gathered that might not otherwise be considered by directing the
quickly and methodically to establish a timeline for the activities leading team to look at the categories and think of alternative
up to the accident. Once the timeline has been established, the causal and
contributing factors can be identified.
causes. Include team members who have personal
2. Change analysis: This approach is applicable to situations where a knowledge of the processes and systems involved in the
system’s performance has shifted significantly. It explores changes made problem or event to be investigated.
in people, equipment, information, and more that may have contributed to
the change in performance.
3. Barrier analysis: This technique focuses on what controls are in place
in the process to either prevent or detect a problem, and which might have
failed.
4. Management oversight and risk tree analysis: One aspect of this
approach is the use of a tree diagram to look at what occurred and why it
might have occurred.
5. Kepner-Tregoe Problem Solving and Decision Making: This model
provides four distinct phases for resolving problems:
1. Situation analysis
2. Problem analysis
3. Solution analysis
4. Potential problem analysis