TOTAL QUALITY MANAGEMENT AND OPERATIONAL EXCELLENCE: TEXT WITH CA. Case study 6 Process management and improvement at the heart of Fujitsu UK & Ireland BMS COMPANY BACKGROUND Fujitsu is the leading Japanese information and communication technology (ICT) company offering a full range of technology products, solutions and services. @vér 70000 Fujitsu people support ‘customers in more than 100 countries. The company uses its experience and the power of ICT to shape the future of society with Fujitsu’s customers. For more information refer to: [Link]. Fujitsu UK and Ireland is a leading IT systems, services and products company employing over 10,000 people with an annual — GQVEHUEISPEDOMMION. Additionally, Fujitsu's GHHeHOperationsunehe UK bring its total employee numbers to over 14,000 and its total revenues to £1.8 billion. Its @USiMESSUSMRNCHAbINgUCHStOMEISELOD FATT 1 TTS applications, systems integration, managed services and products for_ customers in the private and public sectors including retail, financial. "services, telecoms, government, defence and consumer sectors. For more information refer to: [Link]. QUALITY MANAGEMENT IN FUJITSUTOTAL QUALITY MANAGEMENT AND OPERATIONAL EXCELLENCE: TEXT WITH CA. GijisWSapproachitolqualityhas; for many years, beenibasedionaD integrated Business Management System (BMS). ‘This fulfils the _ tequirements of all the external standards upon which it bases its GhanageMientAnayicontrolfapproachd These standards include the following certifications, some of which are specific to particular business or capability units: + TickIT (primarily in UK) + CMMI-Dev + E-GIF (UK Government inter-operability frame-work) + IT-CoBP (UK Government code of best practice) + CLAS (UK Government accreditation of individual security “practice consultants), + CHECK (IT systems penetration testing standards in our ‘security practice) + Association of Project Managers — + Information Systems Examination Board. The Business Management System is registered to ISO 9001 for design, development, production, installation & servicing registration is to the revised Standard EN ISO 9001 that covers UK & Ireland and is continually updated. Fujitsu’s data centre, networks and internet managedservices businesses have ISO/IEC27001 (Information Security) certification. All services are based on Fujitsu's best practice standards, informed by the IT Infrastructure Library (ITIL) and ISO/IEC20000 that are HEI@GHEEEIBMSIto underpin the _—— quality and to promote re-use. Its poliey is to comply with all applicable EU, international and national environmental legislation andgtoyachievemSO14000 throughout the company according to a planned implementation.TOTAL QUALITY MANAGEMENT AND OPERATIONAL EXCELLENCE: TEXT WITH CA. Gijitsimastachieved Registration EOMSOMOOD for all locations it "directly controls on the UK mainland and in Northern Ireland. It has a PrograMmmeloficontinwallassessmienbin place to undertake regular audits across the organization to ensure it adheres to IS014001. > in particular section 404 relating to internal controls. Fujitsu’s London North data centre was the first in Europe to achieve the coveted Tier III status (99.98 per cent site availability) from The Uptime Institute. (hiSHAtng@iSiEheléommercial OpamiunD THE BUSINESS MANAGEMENT SYSTEM BLUEPRINT At the core of the BMS are mandatory master policies and key — business processes that are owned by members of the senior (@aaeSHIpPMEAM. These, along with related sub-policies, local processes and procedures, are structured in logical, functional and operational views, making relevant processes easy to find and therefore apply (Figure C6.1). Master policies are at the top of the hierarchy, being the fundamental principles and standards adopted by the top — "management team for their governance of the company. A senior executive, reporting to the Chief Executive Officer, owns eachamasters in a ‘Standard for Policy and Process Management’ which covers: + policy management + key principles of the Fujitsu UK and Ireland process modelTOTAL QUALITY MANAGEMENT AND OPERATIONAL EXCELLENCE: TEXT WITH CA... i Figure C6.1 Embedding compliance — policies, processes and proceduresTOTAL QUALITY MANAGEMENT AND OPERATIONAL EXCELLENCE: TEXT WITH CA... Figure C6.2 UK&I committees & management boards Figures C6.3-C6.5 show the BMS blueprint, process governance and management. The’ + GiigneaoMaeMoperatingMMsdel, but independent of organization structure + Single process owner for each Key Business (standard company) Process + Key Business Processes span the whole business, supporting regional governance by implementing master policies + Key Business Processes are managed @SinguiheNkeyaProces®TOTAL QUALITY MANAGEMENT AND OPERATIONAL EXCELLENCE: TEXT WITH CA. applicable to the scope of the Business Management System (c.g. ISO 9001, ISO 20000, ISO 27001, IS014001, CMMI, IiP, UKGov. IT COBP) + Minimal number of Key Business Processes, which are formally — “managed, measured, reviewed and improved (BusinesslProcessicovering thelrequirement; such processes must conform to the requirements and have been approved by the relevant Key Business Process owner(s) + To be accessible via a single BMS Portal. Process assets and examples provide a ready means of access to techniques, tools, templates, checklists, lessons learned, reference (Giaterialland linksitolother sourcesiofirelevantimaterial, with options of viewing dependent on role being performed or stage of the activity being addressed. Techniques that are essential to the proper following of process and, in some cases, to the adherence to specific external standards, models or codes of practice are entitled ‘Standard for...’TOTAL QUALITY MANAGEMENT AND OPERATIONAL EXCELLENCE: TEXT WITH CA... Fujitsu UK and | oe Ca Pore Cretan Gowate say pe Cr Figure C6.3 BMS blueprintPERATIONAL EXCELLENCE: TI ITH CA. TOTAL QUALITY MANAGEMENT AND Figure C6.4 Process governance Process Strategy ‘Owning Committee Process Roadmap ‘Authorize Improvements Manages process improvement and deployment * Stakeholders (e.g. process Users, SMEs, sesrvce line reps) + Review feedback and process performance metrics Det) Pera Develops process improvements Supports deployment Figure C6.5 Process governance Figure C6.6 shows the Fujitsu UK & Ireland Customer Solution Gifecycle Model, a ‘role based’ cepresentationjofhowithereustomer) This allows users to locate appropriate processes dependent on the customer facing activities they are undertaking. The benefit of having _ this view is that it does not require a detailed level of specific process These @UStOMmer—ifacing—processes) together with the internal management processes, constitute the Business Management System. Several of the processes shown comprise a number of constituent processes where the level of detailed content requires it. Figure Co.7 shows the BMS Processes. Worliiig with’ accountable’ ‘owners to amend/ improve processes across the whole Region and to (Giabeaquessons|heamnbincreasestengagenient with operational teams, Page 487 of 520 83%TOTAL QUALITY MANAGEMENT Al PERATIONAL EXCELLENCE: TEXT WITH CA. professional communities and RLT (Regional Leadership Team). In an ever more complex and rapidly changing world, to consistently achieve desired results, GWSiMeSSiiprocesses tin Fujitsn @egion’SimANAgENTENLCOMMINNEES. Owners of processes are ‘to ensure appropriate integration of their processes and co-ordinate for customer benefit and to mainitainiregistration|withithelexteral (@@RAAA® This is achieved by a regular forum attended by their process champions, COLES) a) champions are expected to work with a number of experienced | @zactitionerspin the definition and subsequent improvement of processes — through change/review panels and process action teams. ROP cccoumtAbilities «and ~—cesponsibilities in process management are fillyMlistedMand@desctibedifor: regional process owner, process architect, process manager, process interface manager, service line compliance manager, Business Excellence director, process operator and process facilitator. Page 488 of 520TOTAL QUALITY MANAGEMENT AND OPERATIONAL EXCELLENCE: TEXT WITH CA. Customer Figure C6.6 ‘The customer solution lifecycle model "Specifications are given for I key business processes, including the role of key/local process group(s). Change control is exercised to ensure processes comply with — ISO9001 requirements and to maintain logical linkages with other processes. (REGUESTSMOPAMEWPLOCESSIto be added to the standard company set will be directed to Governance & Compliance as administrators of the BMS portal, who then verify the requirement with the appropriate) _management committee, ensure a process owner (and champion if required) is appointed and briefed and, through the KPG, help ensure that any new process is properly aligned with existing processes when introduced. + asa result of formal process review by the process owner; Page 489 of 520, 83%TOTAL QUALITY MANAGEMENT AND OPERATIONAL EXCELLENCE: TEXT WITH CA. + by anyone in Fujitsu UK & Ireland submitting a change proposal to the process owner or Governance & Compliance. + through Lessons Learnt feedback which is analysed for related process improvement actions. Records of changes requested and completed are maintained to support the company’s ISO9001 registration. + conforms with ISO9001 requirements + conforms with any other relevant standard or code of conduct to which UK&I Region adheres + conforms with the Fujitsu UK & Ireland Stand - ard for Policy & Process Management + has appropriate links to and from other processes by reference to their process modelling tool + identifies changes made from the previous version + is approved by KPG/management committee (where applicable). If the revised process is acceptable it is published on the BMS portal and a copy filed in the relevant section of the process improvement repository on SharePoint. If for any reason the process fails the conformance checks, the identified problem, together with a recommended alteration, is passed back to the owner for resubmission. Page 489 of 520, 83%TOTAL QUALITY MANAGEMENT AND OPERATIONAL EXCELLENCE: TEXT WITH CA. pee C6.7 The + brief aims and objectives + text/tables defining steps and accountabilities (optional if flowchart included) Page 490 of 520 83%TOTAL QUALITY MANAGEMENT AND OPERATIONAL EXCELLENCE: TEXT WITH CA. + a@piocessilowchartlistalimandatoryeelement of the process documentation + Tinks/eross-references to process assets/ collateral (also known as templates, tools, checklists and procedures) + control points + definition of minimum measures of the process and any reports generated during process execution + reference to applicable policies and standards and related processes + process improvement repository — the process's KPM project on SharePoint + brief change history + definitions included in Vikipedia with the process owner set up to receive alerts should another employee attempt to change the definition. A Process Maturity Tool’ is used to assess conformance with good _ practiceyjidentify priorities for improvement action and summarize evidence of improvement successes. This may be used at any time but is especially relevant during process reviews. Theyaimpisytoyachieye Gandmaintain(a|score in excess of 75\per cention) all axes within two years of a process being introduced and to at least maintain this level. @stowdoing\solisjustified. More specific targets may be set from time to time by the management committees or key process group. “Maturity of process management is highly dependent on | measurement being used to inform the process review activity. Accordingly, a (ficiallipartloflaliprocess! owners esponsibilityain> Fujitsu is to specify and subsequently review a set of measures that 1 minute left in book 33%TOTAL QUALITY MANAGEMENT AND OPERATIONAL EXCELLENCE: TEXT WITH CA. _ will form the basis of improvement decisions and evidence of _ i it i i Following completion of a ‘Mid-Term Plan,’ owners of key business processes Each Within this common library structure are folders for: + email log + working files, including archive of published versions of process and associated documents + process strategic development plan and release schedule + process measures — plans, actuals and results of analysis or links to alternative records + process feedback, awaiting review + process review records, including records of maturity assessments + process improvement plans and progress + process tailoring matrix + archived review records and other materials. for the qumeseamo’ (Qa VASSHFARe in Fujitsu UK & Ireland @MpHSEAMAUMS of key aspects: + Objective evaluation of processes and work products is earning r 83%TOTAL QUALITY MANAGEMENT AND OPERATIONAL EXCELLENCE: TEXT WITH CA. achieved byy@squalityraudits and (b)qualitymeviewsirespectively, The points at which quality reviews must be conducted are specified in process descriptions. Projects and organizational units must arrange quality audits, to be conducted by auditors who are independent of the project, and which are scheduled into project plans. + Additional quality audits can be arranged by business _ andmnocessaaicllea rel cvangertemalstandards, + The frequency of quality audits is determined by business need; it is expected that auditing should be more frequent at the — time of introduction of significant process change. Projects of duration exceeding six months have at least one quality audit conducted. — + The A eS _the work products. + ‘The outputs from quality audits are key inputs to process ‘RPROVEREREMACEMIEES; accordingly dormalgereporting and Ghiohiteringioficormectivelactionsiisixequired> at project, unit and corporate levels, depending on the nature of the improvements. Quality audit reports are recorded on the Fujitsu UK & Ireland Assessors Database. + Quality audits are carried out only by individuals who have been specifically trained on the relevant standards and approved (WYTHE EAAGAQTlity. Guidance on the conduct of quality audits is available in a document: ‘Standard for Conducting Quality Audits’. ¢HEIQWALIEESTEs that are built-in to processes with much rigour earning reading speed 83%ITH CA. TOTAL QUALITY MANAGEMENT AND PERATIONAL EXCELLENCE: TI as they ensure that the activity/project is progressing on target and within budget. This i: ‘team members and via regular checkpoint reviews. Guidance on the conduct of quality reviews is available in a document ‘Standard for Conducting Quality Reviews.’ THE FUJITSU PROCESS MANAGEMENT CYCLE ‘The Fujitsu Process Management Cycle is a representation of the Key Process Management process and has four phases ~ Design-Deploy- (REVEWAAPFOve (See Figure C6.8). ORSSANPFOCESSUSIMESIgAed and deployed, the review and improvement phases form a continuous — cycle until there is a need to fundamentally redesign the process. Define the business need, the + To implement the process and purpose, the scope and the nasil doa and TS "Define the customers & suppliers. hedhow en eviseanne chen, Who are the customers and what dothey need from the process? | CBxGRTAIISETCTAE What inputs are needed and who Who will need to be trained, how will supply them? and when? Include a pilot of the training. ERs consins ce | CReRRITEREAETEEOSTERS. legislation) and what resources Review the pilot and make any will be needed (people, necessary changes to the process. equipment ete)? "Design the data collection Define the roles and fchaniams Publish the process and operate & manage the process . " a associated material and what responsibilities will they carry? Brief/train all who need to knowTOTAL QUALITY MANAGEMENT AND OPERATIONAL EXCELLENCE: TEXT WITH CA. Design and document the process Deployed flowchart and supporting documentation. Define performance measures and targets What measures will be used to check the effectiveness of the process and what are the target values for those measures? Design and document the sub- processes. (users, contributors, recipients, quality assurance reps) Establish measurement collection. Ensure feedback mechanisms in place Determine review point Isolate the area to work on. Identify and analyse appropriate data. Additional specific data may need to be collected on this area of the process. Identify the root cause(s) of the problem. Involve representatives of all groups directly involved in the problem area. Identify a potential solution Which addresses the root cause(s). Conduct an internal or external benchmark to identify best practice. Implement a pilot ~ and evaluate the results. Modify the solution if necessary. Institutionalise the solution. Revise the process documentation, train all those involved and devise new process measures to monitor the Page 492 of 520 Review the need. Does the process still meet the business need? Review conformance. Is the process being operated as planned in all areas? Review roles & responsibilities. Are the roles still appropriate, are any changes needed? Review and analyse the performance data. Is the process operating to specification, is it meeting targets? Review and analyse feedback. Collect and review feedback from stakeholders. Review opportunities for improvement. Have any problems arisen related to this process, what elements of the process can be improved? - Definition 84%TOTAL QUALITY MANAGEMENT AND OPERATIONAL EXCELLENCE: TEXT WITH CA. effectiveness ~ Asset material (templates, Improve the process improvement | __“hecklists, guides) process. - Tailoring Guidelines/local Share learning and experience Processes with other process improvement | ~ Pducation/Training groups. - Measurement Might benchmarking yield further opportunities? Rank: the opportunities. Prioritise, taking into account the importance, urgency and cost of improvements. Figure C6.8 Fujitsu process management cycle The GMS@falfilsmtWwourOles: firstly, OMMARCMCAdiynavalablenane accessible all essential information about the business's purpose, as direction to employees (as such, it constitutes the company’s Quality Manual in compliance with the requirements for a Quality Management System (BS EN ISO 9001), as well as the requirements for a SERViGeIManagement System (ISO/IEC 20000-1), an fiformationlSécurib=lManagementasystem, (18027001), an @avironmentalManagement system (I[S014001) and an Occupational Health and Safety Management System (OHSAS 18000)). ‘The ggepncgrolepisgtogsupportgstandardizationgendgbesty e former role could be seen as ‘Fit for Audit’, the latter ‘Fit for Purpose’. Given this, the BMS is a fully Integrated Management System (IMS). 1 minute left in book 84%TOTAL QUALITY MANAGEMENT AND OPERATIONAL EXCELLENCE: TEXT WITH CA. The benefits of operating in the way described in this case study are iti It has taken Fujitsu a long time to capture the baseline data but they now have in place an improvement cycle which not only fixes issues but tackles root cause (in most cases processes being not fit for purpose or not fit for use) and embeds that change in the business (Figure C6.9). It is gevognized that some of problems are cultural and some unique to a specific incident. So the policy deployment — process approach to the BMS is. 1 minute left in book 84%TOTAL QUALITY MANAGEMENT AND OPERATIONAL EXCELLENCE: TEXT WITH CA. Figure C6.9 Standardization and value-add ACKNOWLEDGEMENT The author is grateful for the help and information provided by Simon Dennis, Head of The Business Management System (BMS), Commercial, Legal & Assurance, Fujitsu UK & Ireland, in the preparation of this case study. DISCUSSION QUESTIONS 1. Evaluate the business management system (BMS) approach adopted by Fujitsu UK and Ireland, in relation to the size and complexity of the business; how may this need to be adapted to provide a suitable approach for an organization in the public sector? 2. Discuss the links between the process frameworks developed in Fujitsu and the BMS deployment. 3. What role could benchmarking play in the development of the BMS in Fujitsu?