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Chapter Analysis

The document outlines a 6-step process analysis methodology: 1) identify opportunities for improvement, 2) define the scope, 3) document the current process, 4) evaluate performance, 5) redesign the process, and 6) implement changes. Key tools for process analysis include flowcharts, service blueprints, process charts, checklists, histograms, bar charts, Pareto charts, scatter diagrams, cause-and-effect diagrams, and benchmarking. Benchmarking involves comparing internal processes to industry leaders to identify best practices and set goals for improvement.

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30 views

Chapter Analysis

The document outlines a 6-step process analysis methodology: 1) identify opportunities for improvement, 2) define the scope, 3) document the current process, 4) evaluate performance, 5) redesign the process, and 6) implement changes. Key tools for process analysis include flowcharts, service blueprints, process charts, checklists, histograms, bar charts, Pareto charts, scatter diagrams, cause-and-effect diagrams, and benchmarking. Benchmarking involves comparing internal processes to industry leaders to identify best practices and set goals for improvement.

Uploaded by

angel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Process Analysis

Shahedul Alam Khan


Senior Lecturer
Department of Business Administration
Leading University
Process Analysis
• Process Analysis is the documentation and detailed understanding of
how work is performed and how it can be redesigned.
2
Define scope
1 3
Identifies Document
opportunities process

4
6
Implement Evaluate
changes performance
5
Redesign
Process
Step 1: Identifies Opportunities
• Managers must pay attention to four Core Processes.
• Identify whether the internal or external customers are satisfied or
not with the service or product they receive.
• Identify the gaps between processes’ competitive priorities and
current competitive capabilities.
• Utilize Suggestion System to get ideas from employees directly
involved with the processes. A Suggestion system is a voluntary
system by which employees submit their ideas on process
improvements.
Step 2: Define scope
• It establishes the boundary of the process to be analyzed. Process
can be broad like covering the whole organization or it can be too
narrow like nested process. But avoid- trying to boil the ocean
• Design Team. A group of knowledgeable, team-oriented individuals
who work at one or more steps in the process, do the process
analysis, and make the necessary changes.
Step 3:Document Process
• Documentation includes
• making a list of the processes’-
• Inputs
• Suppliers (internal and external)
• Outputs and
• Customer (internal and external)
• Showing this information in a diagram, with a more detailed breakdown given
in a table.
• Understanding the different steps performed in the process, using one or
more diagrams, tables and charts.
• While doing so, analyst must note down the degree of customer contact and divergence
and visible steps to customers.
Step 4: Evaluate Performance
• Metrics are the performance measures for the process and the steps
within it.
• Analyst can use measures of-
• Quality
• Customer satisfaction
• Time
• Cost
• Errors
• Safety
• Environmental measures
• On time delivery
• Flexibility
Step 5: Redesign the process
• Analysis of the process and its performance on the metrics should uncover
the disconnects or gaps, actual and desired performance.
• Gaps can be caused by
• Illogical
• Missing
• Extraneous steps
• Design teams then generates a list of ideas to improve the process or
reduce the gaps
• Ideas those are justifiable, where benefits outweighs cost, should be
implemented
• The new ideas should be documented as proposed showing clearly the
before and after picture.
Step 6: Implement Change
• Develop a plan and carry out it.
• Implementation should be participative for tackling resistance
• New job , skills and resources may be needed to implement.
Documentation Process
• Three techniques are effective for documenting and evaluating
processes:
• Flowcharts
• Service blueprint
• Process charts
Flowcharts
• A flowcharts is a diagram that traces the flow of information,
customers, equipment or materials through the various steps of a
process.
• Also known as flow diagram, process map, relationship maps or blueprints.
• Typically drawn with boxes with a brief description of the step inside
• Line and arrows are used to show sequences.
• The rectangle shape is the usual choice for a box, other shapes can
differentiate between different types of steps.
• Divergence is also communicated when an outgoing arrow from a step splits
into two or more arrows that lead to different boxes.
Flowcharts
Hand Department
offs Boundaries
Flowcharts can be created for several levels:
Strategic level
• Shows the core processes and their linkage. Give a bird’s eye view of the overall
business.
Flowcharts can be created for several levels:
Process level
Divergence
get into the details of the process being analyzed.

High Customer Contact


Contact
Low Customer
Flowcharts can be created for several levels:
Nested Process level
• created for steps that were more aggregated.
Service Blueprint
• A service blueprint is a special flowchart of a service process that
shows which steps have high customer contact.
• It shows a clear line of visibility.
Process Charts
• Process Charts is an organized way of documenting all the activities
performed by a person or group of people at workstation, with a
customer, or working with certain materials.
• Analyzes a process using a table.
• Type of activities in a process:
• Operation: Changes, creates or add something
• Transportation: moves subject (person, material, tools or equipment) to one
place to another
• Inspection: checks or verify something but does not change
• Delay: subject is held up awaiting for further action
• Storage: something is put away for later time.
Process Charts
• Steps to complete a chart for a new process:
• Identify each steps to be performed
• Observe the steps and categories the steps
• Record the distance traveled or time taken to perform the each steps
• Summarize the steps, time and distance data
Data Analysis Tools
• Checklists
Checklists is a form used to record the frequency of occurrence of certain
service or product characteristics related to performance.
• Can be measurable on a-
• Continuous scale
• Yes or No basis
• Histograms
Histograms summarizes data measured on a continuous scale, showing the
frequency distribution of some quality characteristics.
• Bar Chart
Bar chart is a series of bars representing the frequency of occurrence of data
characteristics measured on a yes-or-no basis.
Data Analysis Tools
• Pareto Chart
Vilfredo Pareto, a nineteenth century Italian scientist. He proposed that
most of an activity is caused by relatively few of its factors.
Pareto’s concept is that ‘80 percent of the activity is caused by 20
percent of the factors’. It is called 80-20 Rule. By concentrating on the
20 percent of the factors (the vital few), managers can attack 80
percent of the problems. In short, Relatively few factors cause most of
the performance shortfalls. The vital few can be identified with a
Pareto chart.
Pareto Chart, a bar chart on which the factors are plotted in decreasing
order of frequency along the horizontal axis.
Data Analysis Tools
• Pareto Chart
Pareto Chart, a bar chart on which the factors are plotted in decreasing
order of frequency along the horizontal axis.
The chart has two vertical axis, the one on the left showing frequency
like a histogram and the one on the right showing the cumulative
percentage of frequency.
The cumulative frequency curve identify the vital few factors that need
immediate attention.
Data Analysis Tools
• Scatter Diagrams
Which is a plot of two variables showing whether they are related, can be
used to verify or negate the suspicion.
• Cause-and-Effect Diagrams
Developed by Kaoru Ishikawa.
A diagram that relates a key performance problem to its potential causes.
Helps manager to trace disconnects directly to operations involved
Also called fishbone diagram
The main performance gap is labeled as the fish’s head and the major
categories
Benchmarking
• Benchmarking is a systematic procedure that measure firm’s
processes, services and products against those of industry leaders.
Companies use benchmarking to better understand how outstanding
companies do things so that they can improve their own processes.
Benchmarking focuses on setting quantitative goals for improvement.
• Competitive benchmarking is based on comparison with a direct industry
competitors.
• Functional benchmarking compares areas such as administration, customer
service, and sales operation with those of outstanding firms in any industry.
• Internal benchmarking involves using an organizational unit with superior
performance as the benchmark for other units.
Benchmarking
Benchmarking consists of four basic steps:
• Steps 1: Planning. Identify the process, service, or product to be benchmarked
and the firms to be used for comparison; determine the performance metrics for
analysis; collect the data.
• Step 2: Analysis. Determine the gap between the firm’s current performance and
that of benchmark firm; identify the causes of significant performance gap.
• Step 3: integration. Establish goals and obtain the support of managers who must
provide the resources for accomplishing the goals.
• Step 4: Action.
• Develop cross-functional team of those affected by the changes;
• develop action plans and team assignments;
• implement the plans;
• monitor progress;
• recalibrate benchmarks as improvements are made.

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