=Paper=
{{Paper
|id=Vol-2196/BPM_2018_paper_32
|storemode=property
|title=How to Handle a Massive Change: Guidance on a Process Improvement Project, Our Journey to Excellence
|pdfUrl=https://ceur-ws.org/Vol-2196/BPM_2018_paper_32.pdf
|volume=Vol-2196
|authors=Zeynep Öztürk,Pýnar Bakal
|dblpUrl=https://dblp.org/rec/conf/bpm/OzturkB18
}}
==How to Handle a Massive Change: Guidance on a Process Improvement Project, Our Journey to Excellence==
https://ceur-ws.org/Vol-2196/BPM_2018_paper_32.pdf
How to Handle a Massive Change: Guidance on a Process
Improvement Project, Our Journey to Excellence
Zeynep Öztürk, Pınar Bakal
FNSS Savunma Sistemleri A.Ş., Oğulbey Mahallesi Kumludere Caddesi No: 11, 06830
Gölbaşı, ANKARA, TURKEY
zeynep.ozturk@fnss.com.tr
pinar.bakal@fnss.com.tr
Abstract. In this paper FNSS’s Design & Development (D&D) Process Improve-
ment studies are presented. With the increasing number of projects and employ-
ees FNSS launched an improvement project aiming to revise and enhance its
D&D processes to remain competitive and efficient under these circumstances.
Based on the gaps between “As-Is” and “To-Be” process models, existing pro-
cess is revised and improved. Numerous new and significant practices like
Earned Value Management and Lessons Learned Capturing & Sharing Sessions
are introduced within the new process. A management practice based on PDCA
(Plan-Do-Check-Act) approach is defined and currently being used for the man-
agement of the new D&D process. Through all this effort, FNSS obtained a
streamlined but also flexible process which creates outputs that add value. Re-
sults show that improvements made throughout the project contributed to the out-
put quality, through put time and stakeholder satisfaction considerably.
Keywords: Design Process, Process Improvement, Interface Management, De-
fense Industry, Performance Management, Engineering Management, PDCA
1 Introduction
FNSS Savunma Sistemleri A.Ş. (FNSS), a joint venture company owned by Nurol
Holding Inc. and BAE Systems Inc., is a leading manufacturer and supplier of tracked
and wheeled armored vehicles and weapon systems for the Turkish and Allied Armed
Forces. FNSS develops its wide range of indigenously designed tracked and wheeled
vehicles and weapon systems at its own R&D Division, and using its own engineering
experience. In the last seven years, the number of concurrent programs tripled and and
this significant growth in business volume resulted in a considerable increase in number
of engineers in the R&D department. In order to ensure quality and remain competitive,
FNSS needs to continuously improve its processes in that exponentially growing envi-
ronment [1].
F. Casati et al. (Eds.): Proceedings of the Dissertation Award and Demonstration,
Industrial Track at BPM 2018, CEUR-WS.org, 2018. Copyright © 2018 for the indi-
vidual papers by its authors. Copying permitted for private and academic purposes.
This volume is published and copyrighted by its editors.
How to Handle a Massive Change: Guidance on a Process Improvement Project, Our
Journey to Excellence
The existing process was mostly valid for a small, dedicated group working on a single
project. With a small group of engineers and relatively less workload things were going
well. However, as it comes to doing many things with many people, a comprehensive
and well defined process (in terms of interfaces, inputs, outputs, responsibilities etc.) is
required to ensure quality and efficiency. In addition, with increasing number of pro-
jects, stakeholder management became vital for FNSS and it should be effectively man-
aged. Therefore, it was highly required for FNSS to reconsider its processes to align
with stakeholder expectations.
For this purpose, the company launched a project in consultation with Truenord
Management Consultancy aiming to redesign, deploy and improve its design processes.
This study covers the story of FNSS’s Design Process.
The rest of the paper is organized as follows: in Section 2 we introduce the design
process and highlight major improvements, Section 3 is devoted to the deployment
phase. In Section 4 we discuss results achieved and in Section 5 conclusion is given.
2 Design & Development Process
D&D processes improvement studies started with the establishment of a project
team, including representatives of all stakeholders (both internal and external). The core
team, who runs the project actively, consisted of functional managers, project managers
and capture managers. Besides, a review team consisting of upper management and
functional & program directors was established to review and approve the progress at
pre-defined milestones of the project.
After the team was established, our next step was to analyze the “As-Is” situation.
Throughout the workshops organized with the participation of all stakeholders (sup-
porting units, engineers from different hierarchical levels etc.), areas in the “As-Is”
model that need improvement were determined. Based on the feedbacks from work-
shops and team members, “To-Be” model was constructed and gaps between the cur-
rent state and future state were identified. Existing design processes were then revisited
and main steps in the process were redefined. After main steps were established and
approved, related parties worked on the detailed process steps, input-output definitions,
interface and responsibility distributions accordingly.
In this section, we discuss distinctive aspects of FNSS’s new D&D process and what
we improved throughout our project.
2.1 Responsibility Matrix:
Step by step definition of a process provides a road map for how things should be done.
RACI (Responsible, Accountable, to be Consulted, to be Informed) matrix (Please see
Fig.1) defines responsibilities for design steps. It is a useful tool to streamline complex
chain of events, enable clear communication, facilitate quick and efficient decisions
and establish accountability among team members. It also clarifies interfaces with other
departments such as Project Management and other project team members. Lack of
such clarity often causes trouble if responsibilities are not defined clearly. [2]
Zeynep Öztürk, Pınar Bakal
Function 1
Function 2
Function 3
Function 4
Function 5
Function 6
Function 7
Task # Task Input Output Notes
1. Process Step 1
1.1 Task/activity 1.1 xxxx document xxxx document C A I R I
1.2 Task/activity 1.2 xxx report A R I C
FS dependency with
1.3 Task/activity 1.3 xxx report xxx plan R C A I
1.1
2. Process Step 2 xxx plan xxxx document Interface with 1.2
2.1 Task/activity 2.1 xxxx document xxx drawing C R A
FS dependency with
2.2 Task/activity 2.2 xxx report xxxx document C A R
2.1
Fig. 1. RACI Matrix
2.2 Design Reviews:
Design reviews are vital to assess the degree of completion of technical efforts related
to major milestones before proceeding with further technical effort. [6] Therefore, de-
sign review activities are defined at related milestones throughout the process. With the
RACI matrix, contributors’ responsibilities for these reviews are stated. Besides, design
review content is defined and a standard design review presentation template is pro-
vided to design engineers. This ensures that vital information and risks are reviewed,
design review entry & exit criteria are met and related decisions/mitigation plans are
approved by the authorities before continuing with the next steps in design. Review
meetings are being audited to ensure that the design review content complies with the
provided template and meeting objective is achieved.
2.3 Tailored Process:
Technical specifications differ a lot from project to project. Therefore, following the
same, rigid, step by step defined process for all projects is not reasonable. In the plan-
ning phase of a project, related parties decide on which parts should be tailored. This
decision is made through a review and approval cycle defined in the RACI matrix.
2.4 Lessons Learned:
Capturing important lessons learned to prevent future failures and improve the pro-
cesses is crucial for all businesses. With increasing number of projects and employees,
this is also essential for FNSS. To ensure capturing and transfer of the lessons learned
in one project to the others, specific process activities are defined at several stages
throughout the process. Furthermore, weekly meetings are held where technical leaders
share the lessons learned with functional managers and other technical leaders. These
lessons learned items are then documented in the Lessons Learned Database and shared
with the rest of the organization.
How to Handle a Massive Change: Guidance on a Process Improvement Project, Our
Journey to Excellence
2.5 Earned Value Management.
Another concept introduced was Earned Value Management (EVM), which provides
greater visibility and control of activities, enables proactive decision-making, and raises
awareness of time, cost and performance among project team members. [3]
For this purpose, a heat map report is designed and deployed (Please see Fig. 2) [4].
In this report, schedule and cost performance indicators are calculated for each work
package and the status is visualized using a color scheme. Using heat map, related par-
ties analyze the status, identify possible bottlenecks, and decide on schedule and/or
budget updates when necessary.
Project Task Estimated Estimated Plan % Eng Hours Eng Hours Eng Hrs Actual % Schedule Eng Hrs
Owner
Space Name Start Date End Date Complete Budget Spent % Complete Status Status
Project 1 WP 1 21.03.2017 25.05.2018 97,00% 1400 1112,35 79,45% 93,59% 0,96 1,18 Engineer 12
Project 1 WP 2 28.03.2017 8.05.2018 100,00% 800 574,55 71,82% 96,82% 0,97 1,35 Engineer 13
Project 1 WP 4 10.04.2017 27.04.2018 100,00% 840 904,92 107,73% 88,10% 0,88 0,82 Engineer 14
Project 6 WP 5 4.04.2017 27.04.2018 100,00% 640 261,5 40,86% 83,61% 0,84 2,05 Engineer 3
Project 1 WP 6 21.03.2017 10.05.2018 100,00% 740 700,25 94,63% 89,58% 0,9 0,95 Engineer 3
Project 1 WP 7 20.03.2017 27.10.2017 100,00% 440 240,5 54,66% 100,00% 1 1,83 Engineer 8
Project 1 WP 8 16.05.2017 2.05.2018 100,00% 800 809,1 101,14% 71,43% 0,71 0,71 Engineer 5
Project 2 WP 9 15.06.2017 29.06.2018 80,00% 1728 1744,75 100,97% 79,82% 1 0,79 Engineer 21
Project 1 WP 10 1.03.2017 27.07.2018 96,00% 320 718 224,38% 96,00% 1 0,43 Engineer 22
Fig. 2. Heat Map
Based on heat map, project level Schedule Performance Indicators (SPI) and Cost
Performance Indicators (CPI) are also calculated and presented to upper level manage-
ment each month (Please see Fig. 3).
Sum of Man Sum of Total Reported
Current Eng Planned Actual
Total Power Hours / Current Eng Hour
Project Hour Budget completion Completion
Reported Budget Budget (Heat Map)
(Heat Map) % %
Hours (EAC) %
Project 1 125831 375338 235458 53% 58% 51%
Variant 1 93615 100500 100500 93,1% 95,0% 85,0%
0,9 0,9
Variant 2 2296 5000 5000 45,9% 50,0% 55,0% 1,1 1,2
Variant 3 23753 56333 56333 42,2% 45,0% 47,0%
1,0 1,1
4492 35125 35125 12,8%
Variant 4
Variant 5 139 2500 2500
Fig. 3. Project30,0%
5,5%
Status12,0%
10%
Report
5%
0,4
0,5
0,9
0,9
Variant 6 1537 36000 36000 4,3% 10% 4% 0,4 0,9
2.6 Management of D&D Process:
Apart from aforementioned specific improvements on D&D process, we set a thorough
system based on PDCA (Plan-Do-Check-Act) approach for the management and exe-
cution of this new D&D process.
Plan.
In the planning phase, required resources are determined and the standard D&D pro-
cess is tailored in accordance with the projects’ technical requirements and approved
by the related authorities.
Zeynep Öztürk, Pınar Bakal
To manage the design plans for different projects, a task management platform “Eno-
via” is used. Design schedules, responsibilities are defined and monitored with the help
of this platform.
To support resource planning, a master engineering schedule (MES) where main
phases of all projects are seen on the same schedule is prepared and maintained. Based
on this schedule, monthly resource requirements of projects are determined and updated
when necessary.
Do.
“Do” consists of the documented processes and procedures which define how we do
what we do. Our RACI matrix is an important element of the “Do” part.
Check.
“Check” is the part which provides a snapshot of the essential information required to
review the current status by making use of KPIs and some pre-defined reports. Also,
based on stakeholders’ expectations additional reports can be generated and reported to
the related parties.
Four KPIs are used in order to provide a snapshot of the essential information re-
quired to review the current status:
KPI #1: Process adherence is measured for each project at different milestones, by using
a set of questions, and improvement areas are determined.
KPI #2: Compliance to the contractual requirements is measured to ensure quality of
the process.
KPI #3 & KPI #4: Engineering hour utilization rate and on time completion rate of the
process are also measured, which provides information on efficiency of the process in
terms of time and cost.
In addition to the process KPIs defined above, automatic performance reports are
generated and sent to related parties with different frequencies depending on the organ-
izational levels. These reports include;
Percentage of tasks completed on time in the previous period
Number and list of late activities
Work package level schedule and engineering hours status
These reports support management of the design tasks and facilitate proactive deci-
sion making at different hierarchical levels.
Act.
In regular meetings, process KPIs are reviewed and required actions are planned. Ac-
tions are tracked regularly. Besides, if any retrogression is observed in the performance
reports, this is escalated to the superior manager through automatic escalation reports.
For instance, if any task is late more than 15 days, department manager receives an
escalation report regarding this situation. If the task is late more than 30 days, then the
escalation report is sent to the R&D division director. Based on the escalation reports,
managers are expected to take action.
How to Handle a Massive Change: Guidance on a Process Improvement Project, Our
Journey to Excellence
3 Deployment
In this section, we discuss the deployment phase of the new D&D process.
As a first step, several meetings were held where the details of the new process and
improvements made were shared. Most of the participants had already attended the
workshop sessions made throughout the project. The last sessions were more of a sum-
mary/reminder of what had been done during the deployment phase. Giving the stake-
holders the chance to contribute to what is being done in the early stages of the project
increases the sense of ownership and hence eases deployment.
Another important decision in the deployment phase is the implementation of the
new D&D process on the ongoing projects. For that, a deployment plan is made together
with the related technical leader and functional managers. Current status of each project
is evaluated and the closest upcoming D&D process activity is determined. From that
activity on, new D&D process is implemented.
To deploy and improve the D&D process, adherence is measured within certain in-
tervals through audits. These audits include a set of questions that measures adherence
to the process plan tailored in the planning phase. D&D process adherence audit is per-
formed in two parts: concept design phase and detail design phase.
In the concept design phase audit, technical leader answers four questions listed be-
low for each task completed in the concept design phase.
Is the task completed as per plan (on time)?
Is the task done as per RACI?
Are all inputs completely taken into consideration and collected in standard format?
Are expected outputs completely delivered and accessible?
In the detail design phase audit, engineers who designed subsystems are audited by
the technical leader. This audit questions whether tasks in the D&D process flow are
completed as required and on time for that specific subsystem or not.
Audit results are then processed and improvement areas are reported. Reported is-
sues provide considerable feedback for future projects and hence promote improve-
ment. This improvement can be seen quantitatively in the audit results presented in the
Fig. 4 and Fig. 5. Our overall process adherence maturity level rose to 80% from 69%
from one project to the next one within one year period. Our aim was to achieve 90%
adherence level within 2 years period; currently we have scores above 85% on the new-
est projects and we are very close to reach this objective.
Zeynep Öztürk, Pınar Bakal
PROCESS ADHERENCE MATURITY - PROCESS STEP LEVEL - CDP
PROCESS ADHERENCE AUDIT DASHBOARD
100% 100%
100% 92%
90%
80% 71%
PROCESS ADHERENCE MATURITY - PROJECT LEVEL 70% 64%
59%
60% 55%
50%
37%
40%
69% 30%
20%
10% N/A
0%
PROCESS ADHERENCE MATURITY - PHASE LEVEL
CDP MATURITY DDP MATURITY
66% 72%
Fig. 4. Process adherence audit results of the 1st project after deployment of the D&D process
PROCESS ADHERENCE MATURITY - PROCESS STEP LEVEL - CDP
PROCESS ADHERENCE AUDIT DASHBOARD
96% 100%
100% 91%
87%
90% 81% 83%
80% 74%
70%
PROCESS ADHERENCE MATURITY - PROJECT LEVEL 60% 53%
50%
40%
80%
30%
20%
10% N/A
0%
PROCESS ADHERENCE MATURITY - PHASE LEVEL
CDP MATURITY DDP MATURITY
82% 78%
Fig. 5. Process adherence audit results of the 2nd project after deployment of the D&D process
4 Results Achieved
New practices contributed to the output quality significantly. After deployment of the
new D&D Process, number of Corrective and Preventive Action Requests (CPARs)
from other departments decreased (Please see Fig. 6). This is a good sign of how this
new process increased quality of work done and produce outputs that add value.
As in all multi-stakeholder environments, interface management was a problematic
issue for FNSS as well, even within the same department, it was troublesome. Feed-
backs gathered from supporting units after deployment of the new process improve-
ments indicate that interfaces are now managed more effectively and collaboratively.
Additionally, external stakeholder satisfaction is measured through periodical surveys.
As survey results show, new D&D process boosted external stakeholder satisfaction
also.
How to Handle a Massive Change: Guidance on a Process Improvement Project, Our
Journey to Excellence
Total # of CPARs
350
300
250
200
150
100
50
0
2017-10 2017-11 2017-12 2018-01 2018-02 2018-03
Fig. 6. Decrease in CPARs
Introduction of Earned Value Management approach to the D&D process contrib-
uted to engineering hour budget and schedule adherence significantly and hence makes
it possible to reach project timelines within budget.
5 Conclusion
In this paper, we discussed FNSS’s journey on D&D process in the significantly grow-
ing environment. Through all this effort, FNSS obtained a streamlined but also flexible
D&D process. Output quality and throughput time improved significantly. Increased
involvement of stakeholders resulted in better management of interfaces. Last but not
least, as the process improvement team, we are continuously working to maintain and
improve our processes based on the standards &guidelines like CMMI-DEV, IpX etc.
and adapt new practices when necessary.
6 References
[1] https://turbinehq.com/2017/importance-of-process/
[2] Role & Responsibility Charting (RACI), Michael L Smith, James Erwin,
https://pmicie.starchapter.com/images/downloads/raci_r_web3_1.pdf
[3] Earned value management systems (EVMS), https://www.pmi.org/learning/li-
brary/earned-value-management-systems-analysis-8026
[4] Engineering Management through M-PDCA in Defense Industry: The Case of FNSS, Pınar
Bakal, Zeynep Öztürk, Ari Bostan, http://ceur-ws.org/Vol-1985/BPM17industry09.pdf
[5]. MIL-STD-499A