Qualitative Process Analysis

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Business Process Analysis

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Process Analysis Techniques

Qualitative analysis
• Value-Added Analysis
• Root-Cause Analysis
• Pareto Analysis

Quantitative Analysis
• Quantitative Flow Analysis
• Queuing Theory
• Process Simulation

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Purposes of Qualitative Analysis

Identify and eliminate waste

• Valued-added analysis
Identify, understand and prioritize
issues
• Issue register
• Root-cause analysis (e.g. cause-effect
diagrams)
• Pareto analysis

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Eliminating Waste

"All we are doing is looking at the time line, from the

moment the customer gives us an order to the point
when we collect the cash.
And we are reducing the time line by reducing the non-
value-adding wastes ”
Taiichi Ohno

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Wastes

• If the wastes are removed or reduced, significant benefits can

be realized. These benefits are:
• Dramatically lower costs
• Much faster processes
• Exceeding high quality
• Less frustrated workers
• Happier customers

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 7+1 Sources of Waste
1. Unnecessary Transportation (send, receive)
2. Inventory (large work-in-process)
3. Motion (drop-off, pick-up, go to)
4. Waiting (waiting time between tasks)
5. Over-Processing (performing what is not yet needed or
might not be needed)
6. Over-Production (unnecessary cases)
7. Defects (rework to fix defects)
8. Resource underutilization (idle resources)
Source: Seven Wastes defined by Taiichi Ohno
8th waste coined by Ben Chavis, Jr.

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Waiting

• Definition: The item/work in the process has stopped.

• Manufacturing examples: Machine downtime, bottlenecked
operations, equipment changeover
• Office examples: System downtime, system response time,
approvals from others, information from customers

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Waiting
To eliminate:
• Adequate staffing at the bottlenecked operations
• Shrink changeover through Single Minute
Exchange of Dies (SMED)
• Improve system reliability
• Push decision-making down to lower levels
• Make it easy for customers to provide information
• Cross-train employees so that work can continue
when someone is absent
• Shrink batch sizes and run them more frequently,
ultimately shooting for a batch size of one
• Make sure all supplies are available

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Defects

• Definition: Any form of scrap, mistakes, errors, or correction,

resulting from the work not being done correctly the first time.
• Manufacturing Examples: Production of defective parts, scrap,
waste
• Office examples: Data input errors, design errors, engineering
change orders, invoice errors
• To eliminate:
• Error-proof steps
• Used standardized work instructions
• Post job aids
• Checklists

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Extra Processing

Definition: Having to do anything more than is needed.

• Manufacturing examples: Taking unneeded steps to process the
parts, inefficient processing due to poor tool and product design
• Office examples: Re-entering data, extra copies, unnecessary or
excessive reports
To eliminate:
• Remove unnecessary steps
• Use design for manufacturability
• Link disparate computer systems or use enterprise
resource planning software
• Stop copying everyone on emails
• Stop sending reports and see who complains
• Stop unnecessary signoffs and reviews
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Inventory

Definition: Any supply that is in excess, any form of batch

processing. Producing more than customer demand.
• Manufacturing examples: Any excess inventory, batch processing
• Office examples: Office supplies, sales literature, batch processing
transactions
To eliminate:
• Produce only enough to satisfy your downstream customer
• Ensure that work arrives at the downstream process when
it is required and does not sit there
• Try to shrink batch sizes ultimately to a batch size of one
• Create print on demand processes for reports and
documents

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 Excessive Motion
Definition: Movement of people.
• Manufacturing examples: Reaching for, looking for, or stacking parts, tools, etc.
• Office examples: Walking to/from copier, central filing, fax machine, other
offices
To eliminate:
• Arrange work areas to shrink movement
• Consider cell type manufacturing
• Part trays located close to the worker
• Provide extra fax and copy machines
• Locate files at work stations
• Standardize folders, drawers, and cabinets throughout the work area
(5S)
• Use color codes as much as possible

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Transportation

Definition: Movement of work or paperwork from one step to the

next step in the process.
• Manufacturing examples: Move materials, parts, or finished
goods into and out of storage
• Office examples: Movement of documents from site to site,
office to office
To eliminate:
• Make the distance over which something is moved as
short as possible
• Consider work cells and co-located teams

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 Underutilized people
Definition: People's creativity, ideas, and abilities are not fully
tapped.
• Manufacturing examples: Losing ideas, skills, and improvements
by not listening to employees
• Office examples: Limited employee authority and responsibility for
basic tasks, management command and control
To eliminate:
• Institute Employee Suggestion Systems
• Form worker teams to solve process problems

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Overproducing

Definition: Producing more, sooner, or faster than is

required by the next person.
• Manufacturing examples: Inventory piling up at a slower
downstream step
• Office examples: Printing paperwork before it is really
needed, purchasing items before they are needed,
processing paperwork before the next person is ready for
it
To eliminate:
• Establish a flow sequence to satisfy the
downstream customer
• Create workplace guidelines and standards for
each process
• Create signal devices to prevent over processing,
e.g. FIFO lanes 16
 How to find wastes
Use the "Standing in a circle" exercise.
• The "standing in a circle" exercise was used by Taiichi Ohno to train new
members. This is part of the philosophy of genchi genbutsu which means go
and see at the actual place of work. During this exercise, the member is
directed to stand and observe an operation carefully, and to identify the waste
within the operation and the conditions that cause the waste to exist.
Members are often left standing for 8 hours or more before the sensei is
satisfied that they have seriously seen the waste. During the circle exercise it
is best to simply acknowledge that the waste exists, without the need to
explain it or try to figure out how to "fix" it.
• If the exercise is taken seriously, the amount of waste observed can be
overwhelming. A common reaction is to immediately seek out solutions to
remedy the situation. One must first thoroughly develop an understanding of
the situation prior to beginning corrective action. Standing in a circle for many
hours will allow a thorough understanding, which is necessary before any true
countermeasures can be identified.

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 Decorticate the process
into steps

Classify each step into:

• Value-adding (VA / CVA):
Produces value or satisfaction
to the customer.
Value- • Is the customer willing to pay
for this step?
Added • Business value-adding (BVA):
Necessary or useful for the
Analysis business to run smoothly, or
required due to the regulatory
environment, e.g. checks,
controls
• Would the business
potentially suffer in the long-
term if this step was
removed?
• Non-value-adding (NVA) –
everything else 18
including
handovers, delays and rework
 VA activities refer to activities
within the process that are effective
and directly contribute to satisfying
the customer’s expectations.

Value
Added Examples of these are answering a
customer query via telephone or
email. An easy way to identify
these activities is to ask yourself
the question: ‘If I were to dial the
customer and ask him/her to pay
for this activity, would the
customer do so?’ If no, then it is not
a VA activity, instead, try to classify
this to either BVA or NVA. 19
 • NVA activities neither add
value to the process from
the customer’s perspective
NON- nor are the activities
VALUE- required to conduct
business. NVA activities
ADDING represent waste in the
(NVA) process and potential for
change.
• Examples of these are
activities such as rework,
unnecessary approvals and
double entries.
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 • BVA activities are activities that
BUSINES are essential for the business to
S VALUE- function. This includes
activities relating to policy,
ADDING regulatory compliance,
(BVA) necessary approvals etc.
• These activities add cost to the
process but may not add value
from the customer’s
perspective. However, the
business cannot function
without these.

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 Value added analysis
consists of two stages:
• Value classification
• Waste elimination

Value added analysis =

Value Technique for identifying
Analysis unnecessary steps in a
process and eliminating
them.
• Step = Part of task, or
handover between
tasks.
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• Value Classification:
• Decompose tasks into steps
• When no checklists are available, the process
analyst needs to conduct interviews to decompose
those steps from the task.
• Identify customer of the process, and what positive
outcomes the customer seeks.
• Analyze each step in terms of the value it adds.
• (VA) Value-adding steps = Directly contribute to
positive outcomes of the process.
• ex. Repairing a dryer.

• (BVA) Business value-adding steps = Steps that are

necessary or useful for the company that performs
the process.
• ex. Recording defect in a information system.

• (NVA) Non-value adding = The step is none of the

above.
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 • Strive to minimize/eliminate the NVA
steps.
• Some steps can be eliminated via
automation.

Waste • Some steps can be eliminated by

reducing the control steps.
Eliminati • Weighted against possible
consequences.
on • Before eliminating BVA steps, these steps
should be mapped to business goals and
requirements .
• ex. Regulations.
• "What is the minimum amount of work
required in order to perform the process
to the satisfaction of the customer, while
fulfilling the goals and requirements
associated to the BVA steps in the
process?"

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Example (Equipment Rental
Process)

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Example – Equipment Rental Process

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 Admission Process
Consider the following process for the admission of graduate students at a university. In order to
apply for admission, students first fill in an online form. Online applications are recorded in an
information system to which all staff members involved in the admissions process have access to.
After a student has submitted the online form, a PDF document is generated and the student is
requested to download it, sign it, and send it by post together with the required documents, which
include: 1. Certified copies of previous degree and academic transcripts. 2. Results of English
language test. 3. Curriculum vitae.
When these documents are received by the admissions office, an officer checks the completeness
of the documents. If any document is missing, an e-mail is sent to the student. The student has to
send the missing documents by post. Assuming the application is complete, the admissions office
sends the certified copies of the degrees to an academic recognition agency, which checks the
degrees and gives an assessment of their validity and equivalence in terms local education
standards. This agency requires that all documents be sent to it by post, and all documents must
be certified copies of the originals. The agency sends back its assessment to the university by post
as well. Assuming the degree verification is successful, the English language test results are then
checked online by an officer at the admissions office. If the validity of the English language test
results cannot be verified, the application is rejected (such notifications of rejection are sent by e-
mail). Once all documents of a given student have been validated, the admission office forwards
these documents by internal mail to the corresponding academic committee responsible for
deciding whether to offer admission or not. The committee makes its decision based on the
academic transcripts and the CV. The committee meets once every 2 to 3 weeks and examines all
applications that are ready for academic assessment at the time of the meeting.
At the end of the committee meeting, the chair of the committee notifies the admissions office of
the selection outcomes. This notification includes a list of admitted and rejected candidates. A few
days later, the admission office notifies the outcome to each candidate via e-mail. Additionally,
successful candidates are sent a confirmation letter by post.
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 • Root cause analysis is
a key component of
business process
Root management (BPM)
because it helps
cause organizations identify
Analysis and address the
underlying issues
causing problems
within their
processes.
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 identifying the core issues
that may be affecting a
business process, rather than
focusing on the symptoms or
superficial problems. This
Why RCA allows for a more thorough
understanding of the
is situation and the factors
important contributing to the problem.
in BPM: • Prevent failures and
bottlenecks. By identifying
the root causes of issues,
organizations can implement
corrective actions that
prevent the recurrence of
similar problems in the
future. This proactive
approach helps to improve
the overall stability and
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efficiency of business
 • Continuous Improvement. RCA
is an essential aspect of continuous
improvement, which is a key
principle of BPM. By constantly
Why RCA analyzing processes for root causes
of problems, organizations can
is make incremental changes that
important lead to significant long-term
improvements in performance and
in BPM: productivity.
• Reduce costs. Addressing the root
causes of problems often leads to
cost savings, as it reduces the
need for temporary fixes, rework,
or additional resources to manage
ongoing issues. By optimizing
processes and eliminating waste,
companies can achieve more with
less.

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 • Improve customer satisfaction.
Improving business processes by addressing
root causes can lead to a better customer
experience. Efficient processes result in
timely delivery of products and services,
Why RCA fewer errors, and improved quality, all of
which contribute to higher customer
is satisfaction.
• Identify sources of competitive
important advantage. Companies that consistently
perform root cause analysis and address
in BPM: underlying issues are better positioned to
stay ahead of their competitors. By
continually improving processes and
resolving problems, businesses can adapt
more quickly to changing market conditions
and maintain a competitive edge.
• Improve employee satisfaction. When
employees understand the importance of
RCA and participate in the process, they are
more likely to feel engaged and committed
to the organization's success. Involving
employees in problem-solving activities can
foster a culture of continuous improvement
and shared accountability.
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 • Identifying the problem:
the first step is to clearly
define the problem. This
Steps of should be done in a concise
root manner that clearly outlines
the issue.
cause • 2. Gathering data: the next
analysis step is to gather data related
to the issue. This can include
documents, interviews, or any
other data that can help to
identify the root cause.
• 3. Analyzing data: once the
data has been gathered, it
should be analyzed to identify
patterns or trends that may
be related to the issue.
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 • Identification of root
causes: once the data has
been analyzed, the root causes
Steps of can be identified. This is the
key step of the process, as it is
root the root cause that must be
cause addressed in order to solve the
problem.
analysis • 5. Developing solutions:
once the root causes have been
identified, solutions can be
developed to address the issue.
• 6. Implementing a solutions:
the final step is to implement
the solutions and ensure that
the issue has been fully
resolved.
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 1.Define the problem: Clearly
state the issue you are trying
5 to address. It's important to
have a well-defined problem
whys meth statement to ensure that
od for root everyone involved in the
cause analysis understands the
analysis scope of the investigation.
2.Ask "Why?": Once the
problem is defined, ask "Why
did this happen?" to determine
the immediate cause of the
issue. This first "Why?"
question should focus on
understanding the direct cause
of the problem.
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 "Why?" again to uncover the
underlying causes. Continue this
process of asking "Why?" and
finding answers until you reach the
root cause of the problem. This
usually happens within five
5 iterations, but it could be more or
less, depending on the complexity of
whys meth the issue.
od for root Identify the root cause: The root
cause cause is the fundamental reason
behind the problem, and addressing
analysis it will prevent the issue from
recurring. Keep in mind that there
may be multiple root causes,
depending on the complexity of the
problem.
Implement corrective actions:
Once the root cause(s) has been
identified, develop and implement
corrective actions to address the
issue and prevent it from happening
again. Monitor the effectiveness of
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these corrective actions and adjust
as necessary to ensure the problem
Why-Why Diagram

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 • Healthcare: Root cause
analysis can be used in
healthcare to identify the
cause of medical errors and
develop solutions to prevent
them.
• Manufacturing: Root cause
analysis can help to identify
Examples the cause of production
issues and develop solutions
to increase efficiency.
• Services: Root cause
analysis can be used to
identify and solve problems
related to IT services, such as
software or hardware issues.
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 • Focusing on the symptoms. it
is important to avoid focusing on
the symptoms of the problem
and instead focus on the root
cause.
• Not collecting enough data. it
is important to collect enough
data to ensure that the root
cause is accurately identified.
• Being too quick to implement
Pitfalls solutions. It is important to take
the time to develop effective
solutions that address the root
cause.
• Too much focus on happy
path. In business process
improvement, you often have an
idealized 'happy path' describing
how processes should work that39
is not tied to reality of complex
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 • The Five Ms is a root cause
analysis used in both Lean and
Six Sigma. The idea behind the
five Ms is to look at the issue
from different perspectives to try
and pinpoint the cause, not just
the symptoms.
The standard Six Ms are:
6 Ms • Man/mind power
• Machine (equipment,
technology)
• Material (includes raw materials,
consumables and data)
• Method (process)
• Measurement/medium
(inspection, environment)
• Mileu / Environnment 41
 • Name the problem or effect of interest.

The • Decide the major categories for causes. This

can come from the themes in your affinity
process diagram.
• Typically, your fishbone diagram will have 4-6
for main bones representing the major causes of
what you are analyzing.
creating • Major causes may include the 6 M’s:
a manpower (or personnel),
materials, methods, measurements, and
machines,

fishbone mother nature (or environment).

• Brainstorm for more detailed causes.
diagram Ask why each major cause happens at least 5
times.
• Eliminate causes that do not apply.
• Discuss the causes and decide which are most
important. If you have existing data or can
collect data on the potential causes, then you
can make objective rather than subjective
decisions about the validity of that potential
root cause.
• Work on the most important root causes.
• Perform another iteration to determine 42 root
causes if necessary.
Cause-Effect (Fishbone) Diagrams

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 • Cause-effect diagram (Fishbone
diagram)Consists of:
• Trunk = Main horizontal line
(ex. Big blue arrow)
• Effect that is being analyzed
in a box connected to the
trunk. (ex. Issue)
• Main branch = Arrows from
the box with one of the 6M`s
Fishbone to the trunk.
• Primary Factors = Have a
direct impact on the issue at
hand.
• Secondary Factors = Have
an impact on the primary
factors.
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Cause-effect diagram (rejected equipment)

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Production Line Issue

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Pareto Analysis
• Also called: Pareto diagram,
Pareto analysis
• Variations: weighted Pareto
chart, comparative Pareto
charts
• A Pareto chart is a bar graph.
The lengths of the bars
represent frequency or cost
(time or money), and are
arranged with longest bars on
the left and the shortest to the
right. In this way the chart 47
visually depicts which situations
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 • When analyzing data about the
frequency of problems or
WHEN TO causes in a process
USE A • When there are many problems
PARETO or causes and you want to
CHART focus on the most significant
• When analyzing broad causes
by looking at their specific
components
• When communicating with
others about your data

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 1.Decide what categories you will use to
group items.
2.Decide what measurement is appropriate.
Common measurements are frequency,
quantity, cost and time.
3.Decide what period of time the Pareto chart
will cover: One work cycle? One full day? A
week?
PARETO 4.Collect the data, recording the category
CHART each time, or assemble data that already
PROCEDURE exist.
5.Subtotal the measurements for each
category.
6.Determine the appropriate scale for the
measurements you have collected. The
maximum value will be the largest subtotal
from step The maximum value will be the
largest subtotal from step 5. (If you will do
optional steps 8 and 9 below, the maximum
value will be the sum of all subtotals from
step 5.) Mark the scale on the left side of the
chart. 52
 7. Construct and label bars for each category. Place the
tallest at the far left, then the next tallest to its right, and
so on. If there are many categories with small
measurements, they can be grouped as “other.”
• Note: Steps 8 and 9 are optional but are useful for
PARETO analysis and communication.

CHART 8. Calculate the percentage for each category: the

subtotal for that category divided by the total for all
PROCEDURE categories. Draw a right vertical axis and label it with
percentages. Be sure the two scales match. For example,
the left measurement that corresponds to one-half should
be exactly opposite 50% on the right scale.
9. Calculate and draw cumulative sums: add the subtotals
for the first and second categories and place a dot above
the second bar indicating that sum. To that sum add the
subtotal for the third category and place a dot above the
third bar for that new sum. Continue the process for all the
bars. Connect the dots, starting at the top of the first bar.
The last dot should reach 100% on the right scale.

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