3.1. Analyzing the Findings and Proposing Improvement ...

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Training Workshop on Business Process Analysis in International Trade

Joint Workshop on Trade Facilitation and the Single Window

23-25 September 2015, Moscow

Module 3. Assessment of business processes and drafting the

report with conclusions and recommendations for

improvement

3.1. Analyzing the Findings and

Proposing Improvement Recommendations

Somnuk Keretho, PhD

Director, Institute of IT Innovation

Kasetsart University, Bangkok

Training Workshop on Business Process Analysis in International Trade, 23-25 September 2015, Moscow @Somnuk Keretho, PhD

Objectives of this session

� To learn how to develop time-cost/procedure

charts, compiled on the basis of data collected at

the stage of gathering information.

� To learn how to analyze and propose conclusions

and recommendations on

streamlining and simplifying trade procedures.

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Conducting a BPA Project in 3 Phases

1. Defining Scope of and Planning a BPA Project

2. Capturing and Modelling the As-Is Process

3. Analyzing Findings of the BPA and

Proposing Recommendations

for Improvement (Proposing the To-Be Process)

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Ref: Business Process Analysis Guide to Simplify Trade Procedures, Updated 2012,

UNESCAP/UNECE. http://unnext.unescap.org


3.1.1. Developing time-cost diagrams

� Capture quantitative data, especially cost and time,

related to each step (in the Activity Diagram) with

a Delphi Method (for other approaches, the TTFMM in the afternoon

session will discuss more accurate statistical data collection methodology).

� By interviewing few domain experts/practitioners (2 or 3

persons) who are knowledgeable about those steps

� Because of some constraints, we may be able to collect only

some quantitative data with only a small set of data, e.g.

only at the Use Case level (not Activity/Step level).

� Collect at least the normal (average) cases, but if resources

allowed, the best cases and the worst cases

� Verify/validate those quantitative data during background

information gathering, interviewing, site visiting, and

reviewing meeting with stakeholders.

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Training Workshop on Business Process Analysis in International Trade, 23-25 September 2015, Moscow @Somnuk Keretho, PhD 5

Data Collection/Interview Questions

Business Process Analysis:� How many people are involved in this business process?

� What are necessary activities that an exporter/an importer has to take in order to acquire a particular document?

� What are supplementary documents that an exporter/an importer has to submit along with the application form when a particular document is requested?

� How can an exporter/importer submit the application form, how to collect the requested document (manually or electronically)?

� Are copies of documents accepted in lieu of original documents?

� Is there any fee that an exporter/an importer has to pay in order to acquire the document? If so, how much?

� What are the laws or regulations associated with these procedural and documentary requirements?

� Which business processes can be carried out in parallel?

� Which business process has to be carried out simultaneously after another business process ?


Data Collection/Interview Questions

Information Flow Analysis:

� With which other actor in the business do you need to communicate?

� What kind of data do you exchange?

� What kind of information do you send to which actor?

Time Analysis:

� How much time including waiting time in average hours or days does it take to complete this entire business process from the beginning to the end? What is the maximum and minimum time?

� How many actual man-hours does it require to complete this particular activity in this business process?

Cost Analysis:

� How much in average does it cost to complete this particular activity in this business process or to process one document?

Suggestions for Improvement:

� What are problems/ bottlenecks you encounter in procedures and regulations to import or export?

� What are improvements that you would like to see in the near future?

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Data Collection related to Cost

� Cost related to procedures, documentary

requirements to fulfill the international trade

� Including direct cost, e.g. cost of effort (labor cost),

fee related to government or business transactions,

cost of transport services, etc.

� Including in-direct cost, e.g. cost of warehouse when

there is some delay at the port.

� May include or exclude Customs Duty fee (need to

mention explicitly on the report whether the summary

cost include Customs fee or not), e.g. World Bank’s

Trading Across Border data do not include Customs cost.

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Creating a time-procedure chart which informs the average (or normal) time required to

complete each main process and the sequential order those main processes are carried out.

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Drawing a Time-Procedure Chart*

Process Day(s)

1 Buy - Conclude sales contract and trade terms 2

2 Have product sampled and technically examined 14

3 Arrange transport 3

4 Prepare export permit 1

5 Apply for cargo insurance 1

6 Prepare and submit customs declaration

17 Stuff container and transfer it to port of departure

8 Clear goods through customs

9 Handle container at terminal and stow it on vessel 1

10 Prepare documents required by importer as listed in L/C 3

11 Pay - Claim payment of goods 4

1 2 3 4 5 6 7 8 9 10 11

Days

Process

30

20

10

0

5

25

15

35

14 days

3 days

2 days

1 day

3 days

4 days

1 day

1

2

4

3

5

6 7 89

10

11

1 day

1 day

Similarly, a Cost-Procedure Chart could be developed

if the cost for each main procedure/process can be collected.

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5) Analyze the “as-is”

processes and identify

bottlenecks

Project

Sponsor

Project Manager/

Project LeaderProcess Participants/

Business Domain

ExpertsProcess

Analysts

3.1.2 Analyzing findings of

the “As-Is” Business Processes

Objective – To identify the bottlenecks, redundancies, and non-value-added activities

in procedural and documentary requirements

of the “as-is” business processes described

in the activity diagrams, process

descriptions, and time-procedure chart.


Case 1: Thailand’s Export Process of Frozen Shrimp

1 2 3 4 5 6 7 8 9 10 11

Day

Process

30

20

10

0

5

25

15

35

14 days

3 days

2 days

1 day

3 days

4 days

1 day

1

2

4

3

5

6 7 89

10

11

1 day

1 day

1. Buy - Conclude sales contract and trade terms

2. Have product sampled and technically examined

3. Arrange transport

4. Prepare export permit

5. Apply for cargo insurance

6. Prepare and submit customs declaration

7. Stuff container and transfer it to port of departure

8. Clear goods through customs

9. Handle container at terminal and stow it on vessel

10. Prepare documents required by importer as listed in L/C

11. Pay - Claim payment of goods

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2-Day Waiting Time

Case 1: Thailand’s Export Process of Frozen ShrimpExporter (or Representative) Department of

FisheriesHave product

ready for sampling

Submit Request

for Sampling

Notify the date for

sample collection

Authorized Private

Inspector

Collect

sample

Schedule the

sampling date

Examine

sample

Record the result

of examination

Test Report

Deliver

sample

Collect

Test ReportRecord result

of examination

Collect

sample

Record sampling

result

Examine

sample

Collect

Test ReportTest Report

Request for

Sampling

10 working

days

1 working

day

1 working

day

Free of charge but limited

number of inspectors and

laboratory facility


Case 2: Thailand’s Export Process of Jasmine Rice


2. Obtain export permit


4. Arrange the inspection and fumigation

5. Obtain cargo insurance

6. Provide customs declaration

7. Collect empty container(s) from yard

8. Stuff container(s)

9. Transfer to port of departure


11. Handle container at terminal and stow on vessel

12. Prepare documents required by importer

13. Verify the accuracy/authenticity of exported cargo


1 2 3 4 5 6 7 8 9 10 11 12 13 14

Day

Process

20

10

0

5

15

3 days

2 days

3 days

4 days

1 day

1

3

5

6 7 8 9

12

14

2

2 days

4

2 days 10

1 day

13

1 day

16

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Bottlenecks are hiding.

Improvement opportunities

are not obvious.

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Case 2: Thailand’s Export Process of Jasmine Rice

� Review each activity diagram, its accompanied process description, and relevant forms and documents

� Look for redundancies and non-value-added activities in procedural and documentary requirements

Department

of Foreign Trade

Exporter or

Representative

Prepare documentsfor the application

of export permit

Verify submitted

information

Sign and

authenticate A. 4

Correct

Incorrect

Collect A. 4Permit for the Export

of Rice (A. 4)

Application for Permission

to Export Rice (KP. 2)

Evidence of Sales

(Purchase Order or

Sales Contract)

Draft Permit for the Export

of Rice (A. 4)

Sales Report (KP 3)

Application for the

Collection of the Permit

for the Export of Rice (A. 3)

Documentary requirements

of these documents are very

much identical.

Obtain export permit

Exporter or

RepresentativeDepartment of

Foreign Trade


Exercise: Identify Bottlenecks and Redundancies

Department of

Foreign TradeOffice of

Commodity StandardsCustomsExporter or Representative

Prepare documents

for submitting to

Customs at port of exit

Permit for the Export

of Rice (A.4) with actual

quantity exported

Certificate of Standards of Products (MS. 24) with

actual quantity exported

Record the actual

quantity exported

and released date

Acknowledge

the provided

information

Prepare documents

to declare the actual

amount exported



quantity exported



Evidence of Sales

(Purchase Order or

Sales Contract)

Acknowledge

the provided

information

Example of redundant

procedural and

documentary requirements

Acknowledge

the provided

information

Department of

Foreign TradeVerify the

accuracy/authenticity

of exported cargoExporter or

Representative

Customs

Office of

Commodity Standards

Thailand’s Export Process of Jasmine Rice

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6) Develop and Propose

Recommendations

Project

Sponsor

Project Manager/

Project LeaderProcess Participants/

Business Domain

ExpertsProcess

Analysts

3.1.3 Developing and Proposing

Recommendations for Improvement

Objective – To develop recommendations that help remove

bottlenecks and inefficiencies in

procedural and documentary

requirements


Business Process Analysis and

Business Process Simplification

Tips & Techniques

1. Merge some procedures

2. Eliminate redundant procedures and unnecessary

documentary requirements

3. Automate procedures and promote the sharing of

trade and transport data among relevant stakeholders

4. Modify related laws and regulations to facilitate the

operation of the newly designed business processes

5. Reform the regulatory-related organizational

structures, etc-.

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Example: Identify Bottlenecks and RedundanciesDepartment of

Foreign TradeOffice of


Prepare documents

for submitting to




quantity exported



Record the actual

quantity exported

and released date

Acknowledge

the provided

information

Prepare documents

to declare the actual

amount exported



quantity exported



Evidence of Sales

(Purchase Order or

Sales Contract)

Acknowledge

the provided

information

Example of redundant

procedural and

documentary

requirementsAcknowledge

the provided

information

Department of




Representative

Customs

Office of

Commodity Standards



Office of


Prepare documents

for submitting to


Record the actual

quantity exported

and released date

Acknowledge

the provided

information



quantity exported



Evidence of Sales

(Purchase Order or

Sales Contract)

Acknowledge

the provided

information

Department of

Foreign Trade

Department of




Representative

Customs

Office of

Commodity Standards

Example I: Remove Redundancies


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1) Buy

3) Pay

Exporter orRepresentative

Importer

Exporter’sBank

Importer’sBank

Customs

Thai Chamberof Commerce

Port Authority

InsuranceCompany

Carrier(Shipping Line)

Inland Haulage

Department ofForeign Trade

AuthorizedPrivate Inspector

Departmentof Agriculture

Board of Tradeof Thailand

Department ofConsular Affairs

Department ofDisease Control

Office of Commodity Standards

2) Ship

2.1) Obtain ExportPermit

2.4) Obtain cargoinsurance

2.2) Arrange transport

2.8) Transfer to port of departure

2.9) Cleargoods through

customs

2.5) Providecustoms

declaration

2.10) Handle cargo and stow

on vessel

2.11) Preparedocuments required

by importer

2.7) Stuffcontainer(s)

2.3) Arrange theinspection and fumigation

2.12) Verify the accuracy/authenticity of exported cargo

2.6) Collect emptycontainer(s) from

yard

Example II: Simplify, Merge,

and Automate Some

Processes

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Example II: Simplify, Merge,

and Automate Some Processes

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2.5) Provide

customs

declarationExporter or

Representative

Customs

Customs

Prepare Declarationinformation

Verify submittedinformation

Declaration Accept

Declaration Reject

Correct

Incorrect

Exporter or Representative

Acknowledgethe receipt ofdeclaration no.

Commercial Invoice

No. of Permit for theExport of Rice (A. 4)

Export Declaration

Customs

Prepare Declarationinformation

Verify submittedinformation

Declaration Accept

Declaration Reject

Correct

Incorrect

Exporter or Representative

Acknowledgethe receipt ofdeclaration no.

Commercial Invoice

No. of Permit for theExport of Rice (A. 4)

Export Declaration

No. of Certificate of Standards of Products

(MS. 24)

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Example: Simplify, Merge, and Automate Some Processes

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2.9) Clear

goods through

customsExporter or

RepresentativeCustoms

Inland

Haulage

Department of

Foreign Trade2.11) Verify the



Representative

Customs

Office of

Commodity Standards

24

CustomsInland Haulage

Retrieve declarationinformation

Cross check declarationinformation with handed

in documents

Randomly selected

Goods TransitionControl List Audit

Transfer containerto point of inspection

Inspectcargo

Misconductnot foundMisconduct

found

Exporter(or Representative)

Randomly not selected

Record a case to be filed

Record thequantity exported

Acknowledgeactual quantity of

goods to be exported

Equipment Interchange Receipt

Goods TransitionControl List

Department ofForeign Trade

Office of Commodity Standards





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Example: Simplify, Merge, and Automate Some

Processes


2. Obtain export permit


4. Arrange the inspection and fumigation

5. Obtain cargo insurance

6. Provide customs declaration

7. Collect empty container(s) from yard

8. Stuff container(s)

9. Transfer to port of departure


11. Handle container at terminal and stow on vessel

12. Prepare documents required by importer

13. Verify the accuracy/authenticity of exported cargo


1 2 3 4 5 6 7 8 9 10 11 12 13 14

Day

Process

20

10

0

5

15

3 days

2 days

3 days

4 days

1 day

1

3

5

6 7 8 9

12

14

2

2 days

4

2 days 10

1 day

13

1 day

16

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Business Process Analysis and

Single Window Development

Establishment of Single Window and

Paperless Trading Environment

Document Simplification and

Data Harmonization

Business Process

Simplification

Business Process Analysis (BPA)

Data model that define data requirements

and structure of electronic messages

“To-be” business processes

Better understanding about existing “as-is”

business processes and their limitation

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Practical Exercise 5.1

Quantitative Data Collection & Analysis

� Each group, please discuss and collect more

“quantitative data” related to cost & time (normal

best cases) of some Use Cases of your BPA project

� Try to draw a Time-Procedure Chart

by approximately estimating time (days)

that are needed for your selected BP scope

� e.g. try to estimate time needed (the normal best case)

for each main business process (Use Cases)

� Which Use Cases (main processes) can be conducted in

parallel, or which Use Cases must happen before other

Use Cases (precedence conditions).

� And also estimate how much it costs for each Use Case

(if time permitted.)

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Practical Exercise 5.2Identify bottlenecks and recommend improvement opportunities

Discuss in your small group,

� Identify and analyze one or two bottlenecks

in your activity diagram(s)

� Identify and propose improvement opportunities

(check also for feasibilities for your

recommendations, e.g. political, technical, and

financial feasibility)

Be prepared to present your findings.

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3.1. Analyzing the Findings and Proposing Improvement ...

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