Document workflow and it's management - Paperless ...€¦ · •What are the manual steps in the...

Document workflow and it's management -

Paperless management from a managerial aspect

Papadimitriou, StratosChlomoudis, CostasKoliousis, IoannisDepartment of Maritime Studies University of Piraeus

Agenda•Document workflow introduction•Document workflow managerial perspective•BPM Primer

The Vision - Why moving to a paperless organization? Paper-based organization is not efficient enough anymore…..

Paperless vs paperbased

Increasing legal and compliance

pressure

Security and confidentiality

threats

Changes in work environment 24/7, Home

working, collaborative

Technology (from iPad to electronic

signature) Sustainable development &

Green IT

Crisis Environment

Increasing competition

requires agile organisation

Paper Dox slow down the company, increases resource requirements, weakens profitability and competitiveness,

But more importantly: Reduces responsiveness AND compliance!

By the way, what is “change” ?Impact of change on organization

92% of change efforts fail because of human issues!The main impacts and the main challenges concerning change are linked to humans

Source : organizational dynamics, Jim Markowski

42

27

23

4 4

Reasons of change’s failure

Leadership

Culture

People

Technology

Other

Human

Process

IT System

Paper Documents

Source: “Converging to paperless……a change management approach” IrisLink2011

Managing change in paperless projects things to consider…

Be Specific

• Define “transition” procedures

• Measure impact on organization and day-to-day

• Map out change cartography

“on systems, processes and people”

• Build a realistic action plan / assess risks

Communicate

• Involved key stakeholders in the implementation

• Collect immediate feedback from the users and adapt accordingly

• Train, Educate, Show and remain practical : COMMUNICATE

• Support the organisation and stay close

Submitting necessary paperwork is not always an easy task! The existing situations regarding reporting formalities for ships (administered by the

Master or Ship’s Agent) arise from: • Port state control inspections• IMO FAL forms • International Ship and Port Security (ISPS) code • VTM Directive (SSN Notifications) • Customs (import /export) declarations

Although the content of the forms is (somewhat) standardised there are several issues that need to be addressed:

• The interpretation of the ‘timing rules’ (what needs to be submitted at 72, 24, 2 hours before arrival) may differ from state to state (often combined forms are used in practice)

• There may be additional national or port specific requirements that should be communicated efficiently to the reporting party

• In many countries ship formalities are still discharged manually. In other cases, information is submitted electronically through various channels

• Authorities responsible for various ‘clearances’ differ from country to country and therefore the necessary flexibility must be built into interoperable solutions

An overview of ship formalities and related information flows is given in the following diagram.

MOS4MOS & Ship Formalities

Many users that are obliged to cope with various requirements (that often don’t generate profits) :

Many different reporting formalities external to the shipping / logistics company:

…but you have to aim BIG!

NGSW concepts have to address the requirements of the three key stakeholders in regulatory information management:

• Business (trade and transport) needs to:• provide regulatory information in standard format

irrespective of destination and mode;

• submit information electronically, ideally extracted automatically from operational processes;

• easily manage changes arising from new regulations.

• National Authorities need to:• enforce regulations efficiently;

• co-operate with authorities in different countries;

• easily manage changes arising from new regulations.

• EU needs to • support the implementation of policy and

• facilitate the above requirements.

ELECTRONIC SHIP FORMALITIES

CONCEPT

Average time

measured in

hours

INITIAL VALUE AND PILOT TARGET 7.43 hours

RESULTS FROM TESTS AND PILOTS

FINAL IMPLEMENTATION EXPECTED TARGET 2.89 hours

PORT COMMUNITY COLLABORATIVE

SOLUTIONS

CONCEPT

Average time

measured in

hours

INITIAL VALUE AND PILOT TARGET 11.87 hours

RESULTS FROM TESTS AND PILOTS

FINAL IMPLEMENTATION EXPECTED TARGET 4.47 hours

These initiatives, have tangible results in daily operations, indicatively:SANITIZED

SHIPOWNER,

CAPITAIN

SHIPP.AGENT

INTERAGENT

d.o.o.

CIVIL LIABILITY

CERT.(PAPER)

SHIP SANITA.

CONT.CERTIF.

(PAPER)

PRE-ARRIVAL

(PAPER)

CUSTOMS

OFFICE

SHIPP.AGENT

INTERAGENT

d.o.o.

SHIPP.AGENT

INTERAGENT

d.o.o.

URSP-

SLO.MARITIME

ADMINIST.

(SSN PORTAL)

PRE-ARRIVAL

(EL)

SHIPP.AGENT

INTERAGENT

d.o.o.AVISO (MAIL)

CONSIGNEE /

NOTIFY PARTY

MARITIME

POLICE STATION

SHIPP. AGENT

INTERAGENT

d.o.o.

AGENT FROM

PIRAEUS

SHIPP.AGENT

INTERAGENT

d.o.o.

B/L

(PAPER)

CHASSIS NOS

UNITS

LIST (EL.)

CARGO

MANIFEST

(PAPER)

T2L

(PAPER)

CUSTOMS

MANIFEST (EL.)

CARGO

MANIFEST

(PAPER)

POK (SDIS,NPID)

WORK ORDER

(EL)

DISPOSITION

(EL)

NOTICE OF

VESSEL

ARRIVAL ((EL)

CREW LIST

(PAPER)

PASSENGER

LIST (PAPER)

SGS

SHIPP.AGENT

INTERAGENT

d.o.o.

CIVIL LIABILITY

CERT.(PAPER)

SHIP SANITA.

CONT.CERTIF.

(PAPER)

CHASSIS NOS

UNITS

LIST (PAPER.)

DOCUMENTS FLOW GRAPHIC DEPICTION - CURRENT SITUATION

DOCUMENTS FLOW GRAPHIC DEPICTION - AFTER IMPROVEMENT

SHIPOWNER,

CAPITAIN

SHIPP.AGENT

INTERAGENT

d.o.o.

CIVIL LIABILITY

CERT.(PAPER)

SHIP SANITA.

CONT.CERTIF.

(PAPER)

PRE-ARRIVAL

(PAPER)

CUSTOMS

OFFICE

SHIPP.AGENT

INTERAGENT

d.o.o.

SHIPP.AGENT

INTERAGENT

d.o.o.

URSP-

SLO.MARITIME

ADMINIST.

(SSN PORTAL)

PRE-ARRIVAL

(EL)

SHIPP.AGENT

INTERAGENT

d.o.o.

AVISO (MAIL)

CONSIGNEE /

NOTIFY PARTY

MARITIME

POLICE STATION

SHIPP. AGENT

INTERAGENT

d.o.o.

AGENT FROM

PIRAEUS

SHIPP.AGENT

INTERAGENT

d.o.o.

B/L

(PAPER)

CHASSIS NOS

UNITS

LIST (EL.)

CARGO

MANIFEST

(PAPER)

T2L

(PAPER)

CARGO

MANIFEST

(PAPER)

POK (TLM)WORK ORDER

(EL)

DISPOSITION

(EL)

NOTICE OF

VESSEL

ARRIVAL ((EL)

CREW LIST

(PAPER)

PASSENGER

LIST (PAPER)

SGS

SHIPP.AGENT

INTERAGENT

d.o.o.

CIVIL LIABILITY

CERT.(PAPER)

SHIP SANITA.

CONT.CERTIF.

(PAPER)

…which benefits also come from re-engineering the processes!SANITIZED

Yesterday Tomorrow (?)

Get around the definition proliferation

• EDM (Electronic Document Management): the management of different kinds of documents in an enterprise using computer programs and storage.

• DM (Document Management): The capture and management of documents within an organization

• ECM (Enterprise Content Management): the technologies, tools, and methods used to capture, manage, store, preserve and deliver information, content, and documents related to organizational processes

• Workflow: The automatic routing of documents to the users responsible for working on them

• BPM (Business Process Management ): a systematic approach to improving an organization's business processes

• DI (Document Imaging): The online storage, retrieval and management of electronic images of documents

Paper-intensive, inefficient business processes• Need automated workflow functionality for all processes

• Gain new levels of efficiency without adding staff

• Eliminate paper processing and reallocate staff to value-added work

• Solve issue of processing and distributing paperwork across departments and locations

• Streamline audit preparation and response time

• Manual data entry is prone to error

• Compliance is very difficult and penalties are currently even higher

Business Challenges

What drives organizations to go paperless?

• Intensive, paper-based, manual processes

• Time consuming activities (shuffling paper, copying, filing, etc.)

• Difficult to track (lost documents, filed in wrong folder, setting on someone’s desk)

• Matching Documents to Requirements

• Managing high volume of documents from different sources

• Receive faxes, emails, EDI and LOTS of paper from many locations from many users

• High document processing and storage costs

• File cabinets occupying expensive real estate

• Paying for outside storage

• Lack of visibility of invoice and other documents in the process

• What happened to that documents I sent you?

The Steps to Go Paperless

Understand the problem

Goals & Requirements

Map the current process

Design the solution & Test

Approve and high level buy in

Implement company / system

wide

• Involve key users/departments and understand the problem:• Paper reduction in the workplace

• Too many file cabinets

• Difficulty in finding information (time + costs)

• Distributed offices make it challenging to share documents

• Need for increased security in accessing information

• Industry/Government regulations

• Too many systems, not integrated, difficult to distribute documents

• Time and cost to retrieve and distribute documents

• Managing the approval process

• Fax machines, MFD (Multi-Function Devices), scanners, etc.

• Sorting and delivery

• Slow response to inquiries

Understand the Problem

P2P Process – Executive View

Re

ceiv

ing

Make copies of documents

Sends copy to Accounting

Locate receiving document

Advanced Shipping Notification

Match to packing slip

Notate exceptions

Accept orderFiles in

receiving

Accounting files copy

Sends copy to Purchasing

Purchasing files copy

AP receives documents

Makes copies

Sends copy to Approver

Matching of documents Conforming

Non-Conforming

Reconcile process GL Coding Voucher entry Print checks

Match checks with paperwork

Approve / Sign

Mail

A/P

Sends copy to ReceivingPu

rch

asin

g

User fills out requisition form

Walks to Purchasing to deliver requisition Enters PO in the

systemPrints approved PO

Mails / Faxes PO to vendor

File copy in Purchasing

Sends copy to Accounting

Source: The 7 Steps to go paperless, Kurt Wachtendorf

P2P Process – User View


Purchasing Process – Real World


Receiving Process – Real World


AP Process – Real World


• What would you like to accomplish?• Eliminate paper-based retrieval

• Provide immediate access to AP related documents

• Automate routing of exceptions to the proper person

• Streamline workflow and exception handling process

• Provide automated audit trail to meet regulations

• Reduce people costs / time

• Eliminate off-site storage

• Notification of exception invoices

• Make more space available

• Take full advantage of AP discount opportunities in a more timely manner

• Consolidate operations in one single office, eliminating redundant processes at other locations

Goals and Requirements

Source: adapted from “The 7 Steps to go paperless”, Kurt Wachtendorf

• What would you like to accomplish? (Continued)• Utilize immediate access to information for more timely and accurate analysis

• Provide access to all authorized users at any location from their workstation

• Electronically capture invoices when they arrive and utilize electronic workflow for approval and processing

• Reduce or eliminate the need for multiple copies of certain documents

• Reduce labor expense for processing these documents (printing, copying, filing document research, etc.)

• Reduce mailing and shipping costs associated with delivery of documents to and from remote locations

• Reduce time and work effort for audits with imaged documents

• Reduce cost of check payments


Source: adapted from “The 7 Steps to go paperless”, Kurt Wachtendorf

• Key questions• What are the manual steps in the process (photocopying, delivery, sorting,

following-up on approval)?

• Can we automate anything in the purchasing process?

• Can we centralize any of the Purchase-to-Pay processes?

• How do you handle receiving documents (invoices, other docs, etc.)?

• How do you send your payments?

• Who and how do you get your checks signed?

• Who needs to review and approve invoices with exceptions?

• How do you file and retrieve the documents?


• It’s more than just technology• Think about the documents you receive or create

• Invoices, Packing Lists, Bills of Lading, Purchase Orders, Credit/Debit Memos, AP Checks, Receiver Reports generated from your business application

• Think about the ways in which you send/receive documents• Faxes, Emails, Mail

• It is more than simply transforming paper into image format, it includes:• Scanning, Indexing, Archiving

• Searching, Retrieving

• Sending it out to other people for approval, getting alerts and notifications, etc.

• Integrating into your business application

• AND it includes integrating your business process into the equation

Process Mapping

• How to map the current process:• Identify points of origin, decisions and where it ends

• Map the process, not only one task

• Identify all personnel involved

• Identify potential user issues

• Identify all integration points with core applications

• Identify document-related as well as activity-related tasks

• Identify the ‘problem areas’ or ‘opportunity areas’

Process Mapping

• Explore different scenarios to solve the problems identified

• Validate chosen scenario with key users

• Identify the technology required

• Identify changes to business processes, business rules, etc.

• Prioritize implementation plan

• Schedule review of solution design with executive management

Design the Solution & Test

• Lack of communication between IT and users

• Lack of understanding from the vendor of what the problem really is

• Resistance from users on changing the way they usually do things

• System integration issues

• Short-term focus sacrificing long-term viability

• Scope creep

• Missed deadlines

Common pitfalls…

• 49% of IT projects fail 1

• Total U.S. project waste is $55 billion ($38 billion in lost dollar value and $17 billion in cost overruns) 1

• 55 % to 75 % of IT projects fail to meet their objectives 2

• 40% are never fully implemented

• Executives from 117 organizations stated that support costs after software implementation were 20% over original estimate 3

• 86% of projects fail for reasons other than technology 4

• 32% of project failures occur due to poor project management skills 4

…and ugly truths!

1: 2010 CHAOS Report, Standish Group; 2: META Group; 3: The Conference Board Survey; 4: KPMG Information Risk Services study

31Source: The 7 Steps to go paperless, Kurt Wachtendorf

What is a (Business) Process?Collection of related events, activities and decisions, that involve a number of actors and resources, and that collectively lead to an outcome that is of value to an organization or its customers.

Examples:

• Order-to-Cash

• Procure-to-Pay

• Application-to-Approval

• Claim-to-Settlement

• Fault-to-Resolution (Issue-to-Resolution)

Processes and Outcomes• Every process leads to one or several outcomes,

positive or negative• Positive outcomes deliver value

• Negative outcomes reduce value

• Fault-to-resolution process• Fault repaired without technician intervention

• Fault repaired with minor technician intervention

• Fault repaired and fully covered by warranty

• Fault repaired and partly covered by warranty

• Fault repaired but not covered by warranty

• Fault not repaired (customer withdrew request)

What is a Business Process: Recap

BPM Notation• A standardized graphical notation for drawing

business processes in a workflow

• Flow objects:• Event

• Activity

• Gateway

• Connecting objects

Example: Business process 1

http://en.wikipedia.org/wiki/BPMN

http://en.wikipedia.org/wiki/BPMN

BPM: What is it?Body of principles, methods and tools to design, analyze, execute and monitor business processes

Why BPM?

InformationTechnology

Process

Change

Yields

Yields

BusinessValue

Index Group (1982)

Enables

How to engage in BPM?

Continuous Process Improvement (CPI)

• Does not put into question the current process structure

• Seeks to identify issues and resolve them incrementally, one step at a time and one fix at a time

Business Process Re-Engineering (BPR)

• Puts into question the fundamental assumptions and principles of the existing process structure

• Aims to achieve breakthrough, for example by removing costly tasks that do not directly add value

How the process worked? (“as is”)

Source: Marlon Dumas, “Business Process Management (BPM) Lecture 1: Introduction”

Reengineering Process (“to be”)

Source: Marlon Dumas, “Business Process Management (BPM) Lecture 1: Introduction”

How to engage in BPM?

Process

Modeling

Tools

Process

Management

Systems

0. Process identificationand opportunity

assessment

1. Process discovery (as-is)

2. Process analysis

3. Process re-design (to-be)

4. Process implementation

5. Processmonitoring/controlling

Process Identification

Core processes

Support processes

Management processes

Quote handling

Product delivery

Invoice handling

Detailed quote

handling process

Process Discovery

Analysis

Qualitative analysis

• Root-cause analysis

• PICK charts

• Issue register

Quantitative Analysis

• Flow analysis

• Queuing analysis

• Process simulation

Additional Issues

• Criticality

• Benefits

• Usability (internal)

• Usability (external)

• Image?

End of Session

Thank you for your attention!

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