PROCESS DESIGN AND ANALYSIS

Professor Winfred S.William

Xavier Institute of Management
Bhubaneswar

WHAT IS A BUSINESS PROCESS?

Business process is A set of logically related
tasks performed to achieve a defined
business outcome.
A process is a
structured, measured set of activities
designed to produce a specific output for a
particular customer or market. It implies a
strong emphasis on how work is done within
an organization, according to Davenport.

Some Generic Business Processes

Process

Flow Unit

Input-Output
Transformation

Order fulfillment

Orders

From the receipt of an order to

delivery of the product

Production

Products

From the receipt of materials to

the completion of the finished
product

Outbound logistics

Products

From the end of production to

the delivery of the product to the
customer

Supply cycle

Supplies

From issuing of a purchase

order to the receipt of the
supplies

Customer service

Customers

From arrival of a customer to

the departure

New product development

Projects

From the recognition of a need

to launching of a product

Cash cycle

Cash

From the expenditure of

funds( costs) to the collection of
revenues

Process Mapping
Process Maps ( or Process Charts ) trace the sequence of
events for a single item of a single product. They may
include additional information such as cycle time,
inventory, and equipment information.
Examples of work Process:
Building A Circuit Board
Visiting the Physician
Obtaining a Passport
Designing a Work Cell
What Is a Process ?
An orderly, prescribed sequence of events intended to produce a
product or outcome.
Random house Unabridged Dictionary

The origins of Work mapping

The mapping of work
processes began with the
early the early industrial
engineers from 1890 until
1920. during this period ,
Fredrick Taylor developed
standardized work and
time
study.
Taylor
believed that there was
one best way to
perform any task and it
was managements job to
find way.

Origins of Process Mapping

Gilberth was the originator of the
first process mapping system
originally known as Process
Charting Gilberth viewed all work
as process and developed the
symbols and conventions.

How to Map and Analyse a Process

1. Define the process boundaries (starting
2.
3.
4.
5.
6.
7.

point/stopping point).
Document the process (steps and sequence)
Draw appropriate symbols
Check for completeness
Evaluate performance.
Redesign process.
Implement changes.

Process Chart Symbols

Benefits of Process Mapping

Puts a spotlight on waste
Streamlines work processes
Defines and standardizes the steps and
sequence
Promotes deep understanding of the process
being mapped
Builds consensus - helps to get people to
agree on a process

Example of Process Flowchart

Description
of
process

Unload apples from truck

Move to inspection station

Weigh, inspect, sort

Move to storage

Wait until needed

Move to peeler

Apples peeled and cored

15

Soak in water until needed

20

Place in conveyor

10

Move to mixing area

11

Weigh, inspect, sort

Page 1 0f 3

Distance
(feet)

Location: Graves Mountain

Process: Apple Sauce

Time
(min)

Operation
Transport
Inspect
Delay
Storage

Step

Date: 9-30-02
Analyst: TLR

20
100 ft
30
50 ft
360
20 ft

20 ft
30
Total

480

190 ft

Example of Mapping

Process Improvement Tools

Process Maps
A visual model
of a process

2-12

Flowchart of the Process Showing

Handoffs Between Departments

To Accompany

Flow Diagrams
Service visible to customer

Service not visible to customer

Repair
authorized

Customer
drops off
car

Mechanic
makes
diagnosis*

Discuss
needed
work with
customer*

Parts
available
Check
parts
availability

Perform
work

Parts not
available
Order
parts

Repair not authorized

Inspect/
test and
repair

Corrective
work
necessary
Customer
departs
with car

Collect
payment

Notify
customer

* = Points critical to the success of the service

= Points at which failure is most often experienced

Repair complete

Perform
corrected
work

e-admission Process

To-Be

Bank
Branch Officer

Labour Office
Employee

Company
HR Officer

Company
Employee

Work Permit process flow

Request
Work Permit

Receive
physical WP

Save employee
data on disk
Physical
WP

Upload data at
Labour Office
Computer Department

Pay WP fee

Receive
payment receipt

Data OK
WP
Fee

Receive payment
and return receipt

Copyright e-Government
Program (Yesser)

WP
Payment
receipt

Check
Employe
e
data

Data incorrect

Issue
physical WP
Correct
empl. data

e-Administration Process

Drug Order to
Deliver y Process

Process Analysis / Evaluation

Questioning Technique

The questioning technique is the means by

which the critical examination is conducted, each
activity being subjected in turn to a systematic
and progressive series of questions.

PRIMARY QUESTIONS

the
the
the
the
the

PURPOSE
PLACE
SEQUENCE
PERSON
MEANS

for which
at which
in which
by whom
by which

ELIMINIATING
COMBINING
With a view to

REARRANGING
OR
SIMPLIFING

those activities

SECONDARY QUESTIONS
The secondary questions cover the second
stage of the questioning technique, during which
the answers to the primary questions are
subjected to further query to determine whether
possible alternatives of place, sequence,
persons and means are practicable and
preferred as a means of improvement upon the
existing method.

PURPOSE:

what is done?
why is it done?
what else might be done?
what should be done?

PLACE:

where is it done?
Why is it done there?
Where else might it is done?
Where should it be done?

SEQUENCE:

When is it done?
Why is it done?
When might it be done?
When should it be done?

PERSON:

who does it?

Why does that person do it?
Who else might do it?
Who should do it?

MEANS:

How is it done?
Why is it done that way?
How else might it be done?
How should it be done ?

Service Blueprint

Service as Processes
Unlike physical goods, services are
dynamic,unfolding over a period of time through
a sequence of events and steps.
The service could take place over short time
frame or it could take place over several years.

Services as Customer Experience

Service experience is defined as the internal and
subjective response customers have to any
direct or indirect contact with a company.
All services create experiences main issue is:
capability to systematically manage that
experience,do not leave it to chance.

Service Mapping/Blueprinting
A tool for simultaneously depicting the service process,
the points of customer contact, and the evidence of
service from the customers point of view.

Service
Mappin
g

Proces
s
Points of
Contact
Evidenc
e

Service Blueprint Components

CUSTOMER ACTIONS
line of interaction
ONSTAGE CONTACT EMPLOYEE ACTIONS
line of visibility
BACKSTAGE CONTACT EMPLOYEE ACTIONS
line of internal interaction
SUPPORT PROCESSES

Service Blueprint Components

Automotive Service Operation

Arrival not
noticed

Not served in order

Process time-consuming

incorrect
diagnosis

incorrect
estimate

(continued)

The Pizza restaurant Blueprint

E. LAWS, Improving tourism and hospitality services

Building a Service Blueprint

Step
Step11

Step
Step22

Step
Step33

Step
Step44

Step
Step55

Step
Step66

Identify
Identifythe
the
process
to
process to
be
beblueblueprinted.
printed.

Identify
Identifythe
the
customer
customeroror
customer
customer
segment.
segment.

Map
Mapthe
the
process
processfrom
from
the
the
customers
customers
point
pointofofview.
view.

Map
Mapcontact
contact
employee
employee
actions,
actions,
onstage
onstageand
and
back-stage.
back-stage.

Link
Linkcustomer
customer
and
contact
and contact
person
person
activities
activitiestoto
needed
needed
support
support
functions.
functions.

Add
Add
evidence
evidenceofof
service
serviceatat
each
each
customer
customer
action
actionstep.
step.

BUSINESS PROCESS
RE-ENGINERING (BPR)

XIMB

DEFINITION (accdg. To HAMMER & CHAMPY)

RE-ENGINERING IS THE FUNDAMENTAL
RETHINKING AND RADICAL REDESIGN OF
BUSINESS PROCESS TO ACHIEVE DRAMATIC
IMPROVEMENTS IN CRITICAL, CONTEMPORARY
MEASURES OF PERFORMANCE, SUCH AS
COST, QUALITY, SERVICE, AND SPEED.
EXAMPLES:
*
IBM CREDIT
*
FORD MOTOR
*
KODAK
*
SKF
XIMB

Other Process Improvement Tools

Business Process Analysis
Focus on processes that cross functional boundaries
and transitions between departments
Identified nonvalue-adding activities

2-37

THE CHARACTERSTICS OF PROCESS IMPROVEMENT AND

PROCESS INNOVATION COMPARED
Improvement

Innovation

Level of change

Incremental

Radical

Starting Point

Existing processes

Clean slate

Frequency of change

One time, Continuous

One time

Time Required

Short

Long

Participation

Bottom-up

Top down

Typical scope

Narrow, Functional

Cross functional

Risk

Moderate

High

Primary enabler

Statistical control

IT

Type of Change

Cultural

Cultural, structural
XIMB

RECURRING THEMES IN RE
SEVERAL JOBS ARE COMBINED INTO ONE
RECONCILIATION IS MINIMIZED
A CASE MANAGER PROVIDES A SINGLE POINT OF
CONTACT
HYBRID CENTRALIZED/DECENTRALIZED
OPERATIONS ARE PREVALENT
WORKERS MAKE DECISIONS
THE STEPS ARE PERFORMED IN A NATURAL ORDER
PROCESSES HAVE MULTIPLE VERSIONS
WORK IS PERFORMED WHERE IT MAKES THE MOST
SENSES
CHECKS AND CONTROLS ARE DEDUCED
XIMB

PROCESS ENABLERS
ENABLING ROLE OF INFORMATION TECHNOLOGY
EDI
EXPERT SYSTEMS
NETWORK LINKS
HUMAN RESOURCE ENABLERS
AUTONOMOUS WORK TEAMS
CAREER PLANNING
ORGANISATIONAL AND MANAGEMENT DEVELOPMENT

XIMB

Issues Driving BPR

Common External Business Problems
Three Cs
Customers today know what they want, what they are
willing to pay, and how to get products and services on their
Own terms.
Competition is continuously increasing with respect to price,
quality, selection, service and promptness of delivery.
Change continues to occur. Markets, products, services,
technology, the business environment, and people keep changing,
frequently in an unpredictable and significant manner.

XIMB

BPR Methodology
Step 1: Prepare for BPR
Build cross functional team
Identify customer driven objective
Develop strategic purpose
Step 2: Map & Analyze As-Is process
Create activity models
Create process models
Simulate & perform analysis
Identify disconnects & value adding process

XIMB

Step 3: Design To-Be processes

Benchmark processes
Design To-Be processes
Validate To-Be processes
Perform Trade-off analysis
Step 4: Implement Reengineered Process
Evolve implementation plan
Prototype & simulate transition plans
Initiate training programs
Implement transition plan
Step 5: Improve Continuously
Initiate On-going measurement
Review performance against target
Improve process continuously

XIMB

COMMON ERRORS THAT LEAD COMPANIES

OF FAIL AT `RE

Try to fix a process instead of changing it.

Dont focus on business process.
Ignore everything except process redesign.
Neglect peoples values and beliefs.
Be willing to settle for minor results.
Quit too early.
Place prior constraint on the definition of the problem and the scope of the `RE
effort.
Allow existing corporate culture and management attitudes to prevent `RE from
getting started.
Try to make `RE happen from the bottom up.
Assign someone who doesnt understand `RE to lead the team
Skimp on the resources devoted to `RE
Bury `RE in the middle of the corporate agenda.
Dissipate energy across a great many `RE project.
Fail to distinguish `RE from other business improvement programmes.
Concentrate exclusively on design.
Try to make `RE happen without making anybody unhappy.
Pull back when people resist making changes.
Drag the effort out.
XIMB

Example of Real BPR Case ( IBM Credit)

IBM CREDIT Corporation, a wholly owned subsidiary of IBM

BUSINESS: FINANCING THE COMPUTER HARDWARE, SOFTWARE
AND SERVICE THAT IBM SELLS

IBM CREDIT
OLD CONNICTICUT,
USA

Calls
in re
ques

ting
for fi
nanc

i ng

IBMS FSP
(Field Sales
Person)

One of the 14 people logs

in the request

STEP #

DESCRIPTION

Logs request for DEAL on a piece of paper(pop)

Move the pop upstairs to credit dept. Where a specialist

entered the inf. Into a computer & checked the potential of
borrowers credit worthiness and wrote the result on a pop
& dispatched to business process department

Bpd would attach special terms etc., (has its own

computer sy.)

Price keys data Into a spreadsheet to determine the

appropriate interest rate wrote on pop.

Clerical group handles the remaining an administrator

turns all this into a quote letter which goes to FSP by
Federal Express.

LEAD
TIME

OPERATION TIME or
WORK CONTENT

TOTAL L.T
IS 6 TO 14
DAYS Avg.
8 Days

TOTAL W. C/O. T IS 90 MIN.

(Avg)

FSP feels that..

L.T IS TOO LONG. (consequences that the customer
is given enough time to look for
someone else or competitor
could seduce the customer)

NO ONE IS ABLE TO SAY THE STATUS of the

request, when FSP calls
request was lost
somewhere in the chain

IMPROVEMENT MEASURE
CONTROL DESK

But it requires more

Manpower and costs
more & L.T. goes up

What Is the problem?

REMINDER=(8DAYS-90 MINUTES)=

>7 DAYS

THE PROBLEM DOES NOT LIE IN THE TASKS PEOPLE DO.

BUT IN THE PROCESS ITSELF.
THEREFORE PROCESS HAS TO CHANGE NOT THE
INDIVIDUAL STEPS

SOLUTION (outcome of REENGINEERING)

REPLACE

SPECIALISTS
Call Takers
Credit Checkers
Pricers
Administrators
and so on

WITH

GENERALISTS
Example:
One individual supported
by an easy-to-do computer
System that provides access
to all the data & tools that
Specialists use.

Because of the assumption that every BID was unique, difficult

and requires Highly trained Specialists.
Old Process was over designed to handle most difficult Applicants.
Still such applicants might exist. But using 80-20 Rule (pareto)
they are segregated. 80% is handled by Generalists. Remaining
20% is handled by Generalists working with Specialists as TEAM.

RESULTS or BENIFITS

L.T. reduction from 8days to 4 hours more than 90% reduction)

No of DEALS processed has gone up by 100 times not 100%)

Process Improvement A Case Study

BestFit Valves

Scenario Before
Detailed Drawings
Sample Enquiry No
File No XYZ

Drawing
Office
2 3 weeks

1 2 weeks
Process Sheet
z

1 2 weeks
Costing
Dept
File No XYZ

File No XYZ

Bottleneck

Longer duration (Enquiry - Quote)

Redundant processes (Drawing)
Premature drafts (Process sheets)
Cumulative time lag (6 8 weeks)

Breakthrough: Re-engineered
Elimination of redundancy (Drawing)
Application based on Spreadsheet (IT)
Ease of Mapping Spreadsheet Matrix

Scenario After
Sample Enquiry No
File No XYZ

Process Sheet
z

Costing
Dept
File No XYZ

File No XYZ

Scenario After
Sample Enquiry No

Marketing
Dept

Costing
Dept

Spreadsheet Matrix
Type of Finish
Grid
Value

(Cost + Spl
Processes)*
Multiplier=Quote Price
Raw Material Type

Length
Grid value & Raw material

Diamet
er

Grid Value

Optimized Results

Duration cut-down
Quick Response
Quotes by Marketing Dept (IT-enabled)
Cost Monitoring by Costing Dept

Thank you