1. V.            Process Analysis

–       A process is a defined set of sequential or parallel activities or behaviors to achieve a goal.

–        Process analysis is creating an understanding of the activities of the process and measures the success of those activities in meeting the goals.

–       Process analysis is accomplished through various techniques including mapping, interviewing, simulations and various other analytical techniques and methodologies.

 

The information generated from this analysis will include the following:

• Strategy, culture, and environment of the organization that uses the process (why the process exists)

• Inputs and outputs of the process

• Stakeholders, both internal and external, including suppliers, customers and their needs and expectations

• Inefficiencies within the current process

• Scalability of the process to meet customer demands

• Business rules that control the process and why they must exist

• What performance metrics should monitor the process, who is interested in those metrics and what they mean

• What activities make up the process and their dependencies across departments and business functions

• Improved resource utilization

• Opportunities to reduce constraints and increase capacity

 

When to Perform Analysis

1. Continuous Monitoring

Business Process Management is a long-term commitment as part of the business strategy rather than a single activity that is completed and then forgotten.

2. Event-Triggered Analysis

The following are just a few of the events that may trigger a process analysis.

–       Strategic Planning

–       Performance Issues

–       New Technologies

–       Startup Venture

–       Merger/Acquisition

–       Regulatory Requirements

 

Process Analysis Roles

1.    Optimal Team Attributes

This cross-functional team will provide a variety of experiences and views of the current state of the process and ultimately result in a better understanding of both the process and the organization.

2.    Responsibilities of Analysis Roles

The following describes the responsibilities of each role within process analysis.

–       Analyst: The analyst has the responsibility to decide the depth and scope of the analysis, how it is analyzed, and then proceeds to perform the analysis.

–       Facilitator: Facilitators are often used to lead process analysis teams.

–       Subject Matter Experts: The analysis of a process is best done using the knowledge and expertise of the individuals closest to the process.

 

Preparing to Analyze Process

Before beginning an analysis project the scope of the project and the frameworks and tools to be used should be determined:

1. Choose the Process
2. Scope the Depth of Analysis
3. Choose Analytical Frameworks

Performing the Analysis

The process of analysis is a process of discovery involving finding answers to a series of questions about the process and generating data to ensure that any conclusions are based on facts extrapolated from the data and not on hearsay or generalizations.

• Understanding the Unknown
• Business Environment
• Organizational Culture/Context
• Performance Metrics
• Customer Interactions
• Handoffs
• Business Rules
• Capacity
• Bottlenecks
• Variation
• Cost
• Human Involvement
• Process controls
• Other factors
• Gathering Information

–       Interviewing

–       Observing

–       Researching

• Analyzing the Business Environment

–       Information Flow Analysis

–       S.W.O.T.

• Analyzing Information Systems

–       Information Flow Analysis

–       Information Flow Analysis

• Analyzing the Process

–       Creating Models

–       Cost Analysis

–       Transaction Cost Analysis

–       Cycle-Time Analysis

–       Pattern Analysis

–       Decision Analysis

–       Distribution Analysis

–       Root-cause Analysis

–       Sensitivity Analysis

–       Risk Analysis

 

• Analyzing Human Interactions

–       Direct Observation

–       Apprentice Learning

–       Participatory Video Analysis

–       Activity Simulation

–       Workplace Layout Analysis

–       Resource Allocation Analysis

–       Motivation and Reward Analysis

 

Examples of this in the manufacturing industry

Document the Analysis

This documentation could include any of the following items as appropriate for the

process that was analyzed:

• Overview of the business environment wherein the process lives

• Purpose of the process (why it exists)

• Process model (what it does) including inputs to the process and outputs

• Gaps in performance of the process (why it needs to be re-engineered)

• Reasons and causes for the gaps in the process performance

• Redundancies in the process that could be eliminated and the expected savings

as a result

• Recommended solutions

Considerations

• Executive Leadership

One of the most important factors to ensure success during any stage in a process improvement project is the support and direct encouragement of the executive leadership team.

• Organizational Process Maturity

an organization that already manages their business by process knows the benefits and simply needs to analyze a process in question.

• Avoid Designing Solutions

Although mentioned previously in this document it deserves repeating at this time. Often during the analysis process solutions to process problems will arise.

• Paralysis from Analysis

Further, if the analysis is prolonged, members assigned to the project may not have the time necessary to remain dedicated to the project due to other commitments.

• Analyze with Metrics

The use of metrics throughout the analysis is critical to receiving the validation of the analysis from the leadership or sponsors of the analysis.

• Proper Time & Resource Allocation

resources assigned to improvement projects also have mission-critical responsibilities in the organization. Although it is wise to get the most knowledgeable individuals on the process improvement team, it is usually those same individuals who are critical to running the business.

• Customer Interaction

One of the biggest factors leading to a successful analysis is the consideration of the customer within the process.

• Benchmarking

There are three types of benchmarking techniques that can be used. The first investigates direct competitors of the subject organization. The second type of benchmarking analysis finds organizations in the same industry that are not direct competitors. The final type of benchmarking analysis identifies processes that are similar to the process being analyzed but exist as best practices in other industries.

 

 

• Understanding Organization Culture

Stated previously in this chapter, understanding the culture of an organization is critical to the success of the analysis and ultimately the design and implementation of the new process.

• Avoiding Blame

If any change to a new process is to be successful, it is vital that the analysis avoids any accusation of problems that exist in processes toward any individual or group.

• Potential Threat

The beginning of a process analysis could be considered by the owner of that process as a threat.

• Threat of Obsolescence

When “reengineering” began to be practiced widely among businesses, several executives began to use the term to describe the reason why layoffs had occurred in the organization.

Conclusion

Process analysis creates a common understanding of the current state of the process to show its alignment with the business environment.

Process analysis is not simply an event, but a commitment that allows organizations to continuously improve the processes of the organization by monitoring the performance of these processes and thereby improving the performance of the organization.