Process modelling and mapping Analysis tools and techniques

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Process modelling and mappingAnalysis tools and
techniques
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Process Mapping

• To develop an understanding of the current
  processes, key weaknesses and issues
• To identify opportunities for improvement

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Identify functional responsibilities

• create relationship model-
• discuss organisation with functional managers
• determine responsibilities of each functional
  business unit
• identify interfaces between business units
• identify external relations with customers/
  suppliers

unit 1
supplier
unit 3
customers
unit 2
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Structure the process diagram
We use swimlanes, boxes and arrows only.......
Define the organisation units
Draw in the main activities
Start here
Identify information flow
Do something
order
Describe an activity by verbs phrases
Do something else
Swimlanes show which Department is involved
Then do something else
.........Use free text to highlight major SWOTS
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An example.........
CR Customer Request
Sales
Submit customer request
Admin submit CR to customer engineer
Tactical Marketing
Engineers generate CR
Admin logs CR with tracking
Admin enters CR to database
Product Marketing
Call engineer for re-check
Review bid/ no bid
Determine options/ customer fit
Customer Engineering
Admin logs CR in tracking system
Engineer manager assigns engineer
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Typical questions when analysing a
process..........

• where does the process begin and what is the
  outcome?
• how long does it take, how often do we use it?
• why do we do it this way?
• what would happen if we didnt do it?
• why are so many people involved?
• where does it go next, or whats next?
• what value is produced for the customer?
• why is it so complicated and why are there so
  many hand overs?

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Analysis techniques - workflow tracing

• indicates information and materials flow
• show time dependencies between activities
• shows who performs each activity
• similar to data flow diagrams
• information or material flow implies time
  dependencies
• illustrates sequential/ concurrent nature of
  processes
• highlights departmental hand-offs and boundaries
  of responsibility

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Workflow tracing - approach

• walk through the process - with someone who
  knows it!!
• tag a document or work item and follow it through
  the process - note times, decisions, problems
  etc.
• avoid skewing results
• the items you are following should not get
  preferential treatment

This is very time consuming use only when other
methods dont provide enough information
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Analysis tools and techniques

• ABC analysis
• Cycle time analysis
• Root cause analysis
• Problem analysis
• Ishikawa (cause-effect) analysis
• Pareto analysis
• Structured brainstorming

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Activity Based Costing

• firstly build the process model by activity
• use the model to build an activity dictionary
• in workshop(s) assign rough cut costs to
  activities
• use supervisors to assign costs

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Cycle time analysis

• cycle time for a process is the total time taken
  from the first activity to the last e.g.. book
  to bill
• times are assigned to all activities
• including store and hold
• times can be collected by operators
• at details level, or via payroll at the
• macro level
• preparation of activity sheet needs careful
  planning
• be particularly sensitive to client staff
  perceptions

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Bringing it together - model measure
Customers
Call to place an order
Accept order terms
Negotiate order changes
Sales Clerks
Input order details
Confirm availability and accept terms
Call customer to change order
Approve order
Sales Managers
Approve order
Financial Managers
Process credit card information
Inventory report
Financial staff
Order sent to warehouse
Warehouse
Average elapsed time for order 3 hours Full time
equivalent employees 42 First time approvals (no
errors) 85 Order promises kept 92
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Problem analysis

• to identify root causes of the weaknesses
  identified in current processes
• to identify opportunities for improvement

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Problem analysis

• Techniques for problem analysis include
• structured brainstorming
• pareto analysis (80/20 rule)
• Ishikawa (cause and effect)

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Structured Brainstorming

• Rules for brainstorming
• focus on the topic being brainstormed
• any idea is allowed be wild!! Have a wilder idea
  than anyone else!!
• build on previous ideas
• no discussion or comment (analysis sessions will
  follow)
• no criticism of any idea - there are no bad ideas
• facilitator keeps ideas flowing - quantity is
  good
• scribes capture every idea

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Pareto Analysis - the 80/20 rule
100
80
60
40
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Component failures
Assembly error
Incorrect installation
Shipping damage
Pareto analysis is a way to separate the vital
few from the trivial many
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Ishikawa (Cause and Effect or fishbone analysis)
Materials
Manpower
Causes
Effect

• Alternative bones
• environment
• political issues
• geography

Machines
Methods
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Ishikawa (Cause and Effect or fishbone analysis)

• define the problem (effect) as accurately as
  possible in a few words
• use brainstorming as a warm-up technique to list
  as many causes as possible
• review causes and group into major categories
• label each bone on the diagram and populate
  with causes
• make a further check top confirm the root causes
  (not intermediate causes) have been identified

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Opportunities for improvement

• Opportunities for improvement come from
• identifying problems
• attack root causes
• attack the 80 - there may be quick hits
• recognising process analysis patterns
• over complexity
• redundant activities
• lack of clear responsibility (i.e. no process
  owner)
• data generated but not checked
• checkers checking checkers
• time delays e.g. documents waiting in in-trays

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Analysis patterns

• Common process patterns at the detail level
• artificial ordering of activities
• artificial time delays
• batching of data/work/materials
• redundant activities
• checkers checking checkers
• downstream reconciliation
• redundant/ fragmented data
• tramp data/ material

• Common process patterns at the big picture
  level
• functional silos or fragmented responsibility
• fragmented customer relationships
• inadequate IT support
• inordinate process complexity
• rework, poor quality, valiant QC efforts

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• Generic Business activity
• Get order
• Identify opportunities
• Assess marketplace
• Identify product opportunities
• Develop market plan
• Market product
• Manage customer
• Manage order/enquiry
• Provide management information
• Develop product
• Fulfil order
• Support product

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