Process Analysis

Topics to Discuss

• Process analysis• Flowcharting • Types of processes • Measuring process performance

Process Definition

• Process is any part of an organization that takes inputs and transforms them into outputs

• A business process is a collection of related, structured activities or tasks that produce a specific service or product (serve a particular goal) for a particular customer or customers

• A series of actions or steps taken to achieve an end• A process can be ideally represented using

flowcharts

Definition of Process Analysis

• A structured review and assessment of an identified process for the purpose of reducing risk, improving efficiency, and controlling costs.

• Documentation and detailed understanding of how work is performed and how it can be redesigned.

Process Analysis Role in OM

• Process Strategy• Process Analysis • Process performance and Quality• Constraint management • Process layout • Optimized systems

Benefits of Process Analysis

• Focus on identified risk• Improve efficiency• Decrease costs• Measure process performance• Assess workload requirement• Improve customer satisfaction• Better understanding and documentation• Identification of needs to develop / clarify

policies

Terminology

• Cycle Time: Is the average successive time between completions of successive units.

• Utilization: Is the ratio of the time that a resource is actually activated relative to the time that it is available for use.

Process Flowcharting

• Process flowcharting is the use of a diagram to present the major elements of a process. The basic elements can include tasks or operations, flows of materials or customers, decision points, and storage areas or queues.

• It is an ideal methodology by which to begin analyzing a process.

Flowchart Symbols ... 1

Tasks or operations, e.g. Machining, collecting money etc.

Decision points, e.g. Sorting of letters depending upon the destination

Flowchart Symbols ... 2

Storage areas or queues, e.g. Machine Components waiting for further services

Flow of material, information, e.g. Employee information going from HR to payroll

Flowchart Symbols ... 3

Process terminator

Flowchart Example – Going to Movie

TicketsAvailable?

yes

no

Go for themovie

Look for other options

Types of Processes

• Single stage (coin operated weighing machine)• Multiple stage – Buffering : Storage area between stages – Blocking : Activities must stop as there is no place

for storage – Starving : Activities must stop as there is no work – Bottleneck

Other Types of Processes

• Make to Order – Based on actual order – Minimum inventory levels maintained – Example – Tailored garments

• Make to Stock– Based on forecasted demand – Customers served from stocks – Example – Fast food restaurant

• Hybrid process combines both the features (Burger King)

Some Measures

• Throughput time = Average time for a unit to pass through the system

• Cycle time = Average time between completion of units • Throughput rate = 1 / cycle time • Efficiency = Actual output / standard output • Productivity = Output / Input • Utilization = Time activated / Time available • Run time = Time required to produce a batch • Setup time = Time required to get the machine ready• Operation time = Setup time + Run time

Common Issues in Process Analysis

• Timing of performing of task e.g. renewals• Lack of routine communication• Lack of management oversight• Poor adherence to procedures• Rules or processes not aligned with enabling

legislation• Redundant process steps• Improper sampling or no sampling

IT Issues in Process Analysis

• Computer software, hardware outdated• No training on software• Process steps not automated• Reporting modules not purchased• User needs not adequately addressed

Redesigning the Process

• What is being done?• When is it being done?• Who is doing it?• Where is it being done?• How is it being done?• How well does it do on the various metrics of

importance?• You can ask WHY to all these answers.

Re-designed Processes

• ATM / Internet banking • Self check-in kiosk at airports • Self ordering kiosk at restaurants

Process Throughput Time Reduction

• Parallel processing• Re-sequencing / clubbing of activities • Reduction of interruptions • Use of technology• Defects prevention

Process Throughput Time Reduction – Examples

• Bank teller • Tele-checking at the airport • Computerized railway booking / using post

office facilities • Fast food restaurants • Opening of multiple counters for the movie

booking

Common Mistakes

1. Not Connecting with Strategic Issues2. Not Involving the Right People in the Right Way3. Not Giving the Design Teams and Process Analysts a

Clear Charter and Then Holding Them Accountable4. Not Being Satisfied Unless Fundamental

“Reengineering” Changes Are Made5. Not Considering the Impact on People6. Not Giving Attention to Implementation7. Not Creating an Infrastructure for Continuous Process

Improvement.