PROCESS MAPPING

Macro Flowcharts
Process Mapping can be done at three level of details : Macro, Functional-activity, and TaskProcedure. Each is used at an appropriate time and place. Usually depict two to seven steps that comprise the critical elements of a process. If it has more than seven steps, then its getting too detailed The advantage :
Capture the big picture, allowing to see the main elements os a process Define the boundaries or scope of a process. We can see the beginning and the end

1. Develop Quote

2. Receive Order

4. Ship and Install

3. Assemble Product

The disadvantage : not detailed enough to spot problem areas

5. Bill and Receive Payment

Functional Activity Flowcharts

functional in the title refers to job titles of people workin in the process, not department titles activity refers to the activities or work performed by each individual Its important to include who perform the activity because:
You can see where most of work is being performed You can determine who does value added step and who doesnt You can see where problems in handoffs occur Without that information, you cant calculate activity, process and quality cost You can spot unnecessary reviews You can see if it makes more sense for someone else to be doing the work

Example of Functional Activity Flowchart

Vertical Approach

Swim lane

Horizontal Approach

Advantage of Functional Activity Flowchart

Advantage of functional activity flowcharts : You can easily spot problems and not get bogged down in details Disconnect between individual and departments are easy to spot They can be used to calculate process, cycle, wait, and move times, among others They can be used to generate activity cost They can be used to generate process cost They can help to identify quality issues and calculate quality costs

Task-Procedure Flowcharts
The most detailed flowchart, explain a particular task Its used in 4 situations :
1. When problem keep showing at a certain box, you can dig into details to find root cause for this particular activity When new activities are created through clean sheet redesign When used for certification purposes, e.g. Validating and testing procedures When used for training purposes.

2.
3.

4.

Creating Task Procedure Flowcharts

1. 2. Name the task or procedure and write it at the top of the page Write the number one in the sequence column to indicate the first step in the activitys you are charting. Next column indicate how long the first step takes; use the appropriate increments of time for the task ( second, minutes, hours,etc) In the symbol columns, check appropriate symbol In the Frustation column, fill if theres anything frustating at this step. H for High, M for Medium, L for Low and blank for no frustation at all Describe this step in detail in description column. Complete the column titled Whiy do we do this step?. This column is necessary for two reasons : When using this flowchart for training, people will wonder why a certain step must be performed If you have a hard time putting rationale in this column, its probably an indication that this step is unnecessary.

3.

4. 5.

6. 7.

Analysis can be done with 2 method : Focus on the frustation column, come up with the idea to address high and medium frustations. ( Theres high correlation between frustation and quality ) Second, scan the Time column. Concentrate on the steps that consume the most time. Shrink time as much as possible, but be sure to maintain the quality for each step

Task Procedure Analysis

Macro Flowchart

Functional-Activity Flowchart

Task-Procedure Flowchart

Installing Process Control

For control purposes, a fourth level of detail, the control level, occurs between the functional activity and the task procedure levels. It provides critical information for both internal and external audit driven by SarbanesOxley act. At the control level of detail, information is given for each activity that comes from the functional activity flowcharts. The seven key components on the activity detail sheet are : General Information Brief Description Task List Form, Policies, Procedures and Manuals End work product of deliverables Application Corporate controls

Example of Functional Activity Flowchart equipped with Control and Sample Form

Control Point Matrix

Customer Order Process
Process reference number COP 01 Activi ty No. 2 Control Point Risk (s) Key Type Category Source Component Caption Assertion Evidence Fictious and / or duplicate sales are recorded Delivery and/or purchase commitments are improperly recorded AR amount is inaccurate Fictious and / or duplicate sales are recorded Unauthorized sales order are placed and filled AR amount is inaccurate Unauthorized sales order are placed and filled Delivery and / or purchase commitment are improperly recorded A discontinued products without any on hand stock cant be selected for an order Y Prevent Configura tion System Control activity Sales Account Receivables Existence and/or occurence Stock, committed transactions

COP 01

An order cant be placed for any customer with a past due amount greater than ninety days An order cant be placed for any customer greater than the customers pre approved limit without sales managers approval Stock thats already allocated cantt be assigned to another order

Prevent

Configura tion

System

Control activity

Sales Account Receivables

Existence and/or occurence

Receivables past due report

COP 01

Prevent

Authoriza tion

Manual

Monitoring

Sales Account Receivables

Accuracy

Authorization Code

COP 01

Prevent

Configura tion

System

Control Environmen t

Sales Account Receivables

Accuracy

Sales Order module configuration rules

Highlight all the main controls in a particular process Linked to the functional activity flowchart

Description of Each Columns

Item
Control Point

Description
Mandatary business rule that must be completed during the normal course of business to satisfy a managerial mandate

Process Control Risk

Key Process Control Types of Process Control Categories of Process Control Source of Process Control Etc...

If the problem at the control point occurs, what effect does it have
Key kontrols are identified by management as the ones used to detect or prevent any material misstatement in the organizations financial report 1. 2. Prevent : used to stop or identify problem before it become an issue Detect : identifies a problem after its occured.

Policies and procedures that help ensure that all management directives are carried out: Management review, Reconciliation, Authorization, Configuration, System Access, Segregation of Duties, KPI, Exception or Edit Where or how a control is implemented. Usually: system, manual or both Etc....