Risk Analysis in Process Design

Any good process improvement project, will have a slide with the before & after process map. The "before" process map depicts the process as-is, ideally at the project/initiative kick-off. The "after" process map shows the future state of the new, improved process. The hypothesis here is that the new, improved process, if implemented, will result in waste-elimination, reduced cycle-time, higher efficiency, increased output etc. depending on the scope of project.

Now, when the project leader, who is usually the Black Belt or Master Black Belt, presents this proposed process to either the leadership team, champion, or key stakeholders to get their buy-in, one question is usually asked.

"What are the risks involved with this new process? What can we potentially miss if we implement this process? What will fall apart if we stop following the current process?"

In my opinion, a very simple tool can be used to address these valid concerns. I call it Risk-Opportunity chart. I am not sure if it is a part of the standard Lean/Six-Sigma tool-set, but found it to be very useful. In the form of a classic four-blocker, this tool provides an excellent visual of not only the risks involved, but the opportunities associated along with. Remember that with every risk, comes an opportunity.

The Risk-Opportunity matrix will look like this. This is definitely a team-based tool. The Black Belt or project leader will facilitate this tool with the project team members, consisting of the process-owner and key experts of current process.

Steps:

1. Assemble the team in a room. Post the "before" and "after" process maps posted on a side-wall (on flip charts). Draw the four-blocker on a flip-chart.

2. Start going over the "after" process map step by step while asking the question: what are the potential risks involved here? You may refer to the "before" process-map whenever needed. (Having a high-level SIPOC of current process will immensely help)

3. Quantify every risk as Low or High per team consensus. For every risk, ask what is the associated opportunity. Quantify the opportunity as Low or High per team consensus.

4. Write the risk/opportunity pair in appropriate block of the four-blocker.

After finishing the data-collection, chart a strategy to address these risks involved in the priority shown as 1-2-3-4 . This tool will greatly enhance your understanding of the new process and its potential impact on other processes as well. Also, the visual created will come as a handy tool to communicate the analysis to others.

Let me know if you have questions or feedback regarding this.