Process mapping

PROCESS MAPPING Process : A series of actions, changes or functions that bring about an end or a result.

What is a Process? Everything that happens within an organization is a process or a series of processes An organization’s success is determined by how well those processes work – and work together A process may be unique to a department or individual A process may be cross-functional or organizational-wide

Why Map Processes? Knowledge integration – a process map may be used as a guideline for others to follow Communication - a process map displays information in an easy-to-follow format Analysis – when all aspects of a process are displayed, it is easier to see potential problems Improvement – because it is easier to see where in the process problems may occur, it allows improvements efforts to be concentrated in the right areas, rather than the “Let’s try this...” approach.

What is a Process Map? A defined graphical representation of a process showing the: Steps of the process Inputs and outputs for each step Suppliers and customers Media used Issues in present process

What is the Difference Between a Process Map and a Flowchart? Process Mapping is: Clear and easy to follow More compact (more info in less space) Allows multiple inputs and outputs for each decision activity Can be understood by everyone, not just those with flowchart experience Identifies “issues’ in the process Involves stakeholders when being developed (accountability)

What is the difference between a process map and a flowchart? Flowcharting: Not clear and easy to follow Takes up more space Turns a process into a system diagram Does not identify issues

Process Mapping Sessions Capture Issues Such As... Non-value added activities Delay points in the process Cumbersome forms Lack of supporting documentation and information Lack of understanding Inconsistency

Core Processes A core process is a process that directly affects the product/service that the company provides. Examples: Design Sales/Marketing Production

Support Processes A support process is one that sustains Directs or improves the core processes. Examples: Preventative maintenance Procurement process Hiring process

Selecting the Process What to consider when selecting a process to map: The process should be manageable Not too big to start with Ripe for improvement Able to demonstrate early results Not a high-level process Should be of interest to many people Motivating to work on Impacting the business now Not highly political – management needs to be amenable

Management Support is Required! Management must be supportive of the process mapping procedure for it to be effective. Team members must be allowed by their managers to attend meetings, work on their assigned tasks and have access to all relevant information

Team Members & Responsibilities Process Owner Facilitator Team Leader Team Members Can be the same person

Process Owner A person on the team who... Is accountable and responsible for the implementation, measurement and improvement of a process Has the authority to change the process, at any time Authorizes resources, including time away from regular work Actively supports the process Breaks down barriers (authority issues) Communicates that the analysis is important

Facilitator Plans the session Maintains team focus on the process Ensures process “As-is” is captured Makes sure everyone participates Preferably independent of the process Respected by all levels of organization Diplomatic & fair Good time management skills

Team Leader Organizes meetings Instructs team members on data needs Participates, doesn’t dominate Makes & tracks team member assignments Supports the facilitator Able to break down barriers

Team Members Subject matter experts on the process Represent various aspects of the process Represent different locations if applicable Attend all team meetings and provide input Complete assigned action items

How to Map the Process The process map should include: The process flow Suppliers and customers Inputs & outputs Responsibilities Measurement Issues for improvement

Before You Begin, Define... Make sure you clearly define the scope of the process before you begin to map – everyone should be on the same page regarding where the process begins and ends. This will ensure that all participants are focused on the correct process.

Definitions: Suppliers – people/departments/functions who supply the inputs to the first step in the process Customers – people/departments/functions who receive the end product from the process Inputs – items/materials/information that a supplier(s) transfers to the processor(s) for use in the process Outputs – items/materials/information that a processor(s) transfers to the customer(s) during or at the end of the process Media – method by which inputs and outputs are transferred (email, fax, shipping)

Mapping the Process Control the flow of dialogue – keep participants on track and focus on process “as-is” Don’t ask ‘yes’ or ‘no’ questions – ask open-ended questions instead Follow the logical flow of the process Focus first on “assume it works” – then return to capture “what if it fails” Map activities not functions (i.e. ‘send invoices to A/P’ not ‘A/P’ – be specific) Have a team member keep a documented “issues list” – check periodically to make sure all issues have been captured Make sure everyone participates Keep the pace moving, park unresolved issues after 5 minutes

Swimlanes, Flipcharts & Post It ™ Notes Swimlanes help to clearly define who does what & when Shows transfer of responsibilities Sticky notes placed on a flip chart allow for free thinking/flexible arrangement and can be permanently attached later

Sample Swimlane Process Map – Customer Complaint Resolution

Questions to Ask When Process Mapping What triggers or starts the process? What are the inputs? What is the next step? What are the outputs? What media is used? (fax, email, hardcopy) How is the customer (internal & external) affected by this? How is the supplier (internal & external) affected by this? Does this step require special training? Does this step need documentation? What are the potential problems in this step?

Identifying & Recording Issues Capture all issues – someone should be recording them during the meeting Allow ½ hour before the end of the session to review issues – make sure everyone understands it Get a volunteer to take ownership for each issue (only 1 owner per issue) Review what it means to be an issue owner – gathering info, follow up, etc. Owner commits to a response date

Examples of Issues Delay points in the process Cumbersome forms used in the process Non-value added activities Repetition in the process Confusion in the process Misunderstanding between processors Lack of documentation

Save the Results of the Session Tape Post It™ notes in place before removing flip-chart sheets Verify issues have been recorded The process owner is responsible for pushing changes, should be accountable Process map should be entered into a tracking mechanism, such as Visio ®

Disseminate Draft Map Send team members draft map – allow them to review it and confer with coworkers that the map is accurate Publish the issues list- to allow it to be edited/expanded based on input Be prepared to reconvene the team several times before the map is completely accurate Keep the momentum going, don’t wait too long between meetings

Analyze the Data Identify “Quick Win” opportunities for improvement Sometimes the initial mapping exercise can illuminate easy & obvious opportunities for improvement Use common sense to asses the value of each step in the process to identify these opportunities Teams should always be prepared to identify & pursue quick win opportunities – the return on investment is high

How to Recognize a “Quick Win” Easy to implement – making the change or improvement does not require a lot of coordination or planning Fast to implement – making the change or improvement does not require a lot of time Cheap to implement – The change or improvement does not require a large investment of capital, human resource, equipment or technology Within the team’s control – the team and its management are able to gain the support necessary to make the change. The scope of the change is within the team’s ability to influence.

Measure Data Data should be analyzed and measured. Measurements should be specific and actionable

Types of Measurements Timeliness – Do we meet the defined criteria (e.g., 48 hours for billing) Accuracy – Number of issues resolved on first enquiry Cycle Time – Time it takes from point A to point B Efficiency – Output vs. input (e.g., # of invoices processed per hour) CTC (Critical to Customer) – Impacts the customer (incorrect invoices, wrong product shipped, etc.) CTB (Critical to Business) – Customer may not be directly affected, but it is critical to the business (cycle time, cost/margin)

Measurements Require Clear Definition Operational Definition A precise description of the specific criteria used for the measures (the what), the methodology to collect the data (the how), the amount of data to collect (how much), and who has responsibility to collect the date (the who) Provides everyone with the same meaning Ensures consistency & reliability Describes the scope of a measure (what is included and what is not included)

Examples of Measurement Definition Poor : “Cycle time for applications.” Good : “Collect data from all applications received by fax on a weekly basis. The response time will be determined by the date and time of the fax received as shown on the faxed application to the time the approval/rejection letter is faxed to the applicant as shown by the fax log. The data will be reported weekly as an average response time per application.”

Example Measurement Definition: Cycle Time for Loan Application Processing Loan Type Loan Amt. Dealer Time of Day Day of Week Randomly selected from Sept. 2005 The 1 st Week of the Month, 10/2/05 to 10/9/05 Tim Smith Dave Jones 289 Loan Applications Processing Fax Center Fax Date, Time Decision Fax Date, Time Time to Process a Loan Application Other Data that Should be Collected at the Same Time How Will Data be Collected When Will Data be Collected Who Will Collect the Data Sample Size Data Source & Location Operational Definition Performance Measure

Measurements: Charting Various types of analysis/charting may be used to display measured data Pareto Analysis Run Charts Histograms (Bar Charts) Pie Charts

Conduct “Value-Added” Analysis Value-added activities are those that directly contribute to serving the customer Non-value-added activities are those that create cost without adding value to the product or service

Value-Added Example Planning Time Moving Time Wait Time Setup Time Process Time Inspection Time Only Process Time is value-added

Non-Value-Added vs. Value Added % The typical company has 95% NVA & 5%VA A company concentrating on improving value-added performance might have 97.5% NVA & 2.5% VA A world-class manufacturer might have 50% NVA & 50% VA

Value Added Activity Categories Value-added – transforms or shapes a product or service towards that which satisfies the customer’s real or perceived needs or wants (e.g., material, labor, process costs, field sales, advertising) Strategic Activity – indirectly transforms a product or service and is strategically important to the long-term health of the business (e.g., training, marketing, capital investment, new product development)

Non-Value-Added Activity Categories Support Activity – does not add value as perceived by customer, but provides a service which maintains the operations process or is driven by actions outside the organization (QA, purchasing, logistics, human resources) Waste – within control of the organization, consumes time, resources and space, but does not contribute to the transformation of the product (inspection, material handling, rework, supervision, expediting)

Interpreting the Results of Value-Added Analysis Activities identified as non-value-added are candidates for a more detailed analysis A more detailed process map of the non-value-added activity may be required Root cause analysis techniques can help to identify the reasons for bottlenecks, delays, etc. (Why, why, why, why, why..)

Process mapping

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