Process Mapping 10_15_02.ppt

Process Mapping

Assessing Cost and Value in the Supply Chain: the Process Mapping

Activity

Process Mapping: Origin and Today’s Context

• Originally developed by General Electric in late 1980’s and early 1990’s.

• Management tool to define “Best Practices” as a strategy to improve bottom-line business performance.

• Business process is a “series of steps designed to produce a product or service”.

Business Process Re-EngineeringBPR

• All service processes and processes that support production can be considered business processes, and thus subject to improvement or re-engineering.

• A process is a “value chain” by its contribution to the creation or delivery of a product or service.

• Each step should add “value”

Value: Understanding What the Customer Values

A definition of an activity or work task that adds value is one that:

• Physically changes the work passing through the process with result being more valuable to the customer.

• Requested by the customer and that customer is willing to pay for it

• All other activities are by definition non-value added and should be eliminated.

Business Process Re-Engineering Examples

• Order Management Processes: Purchasing, contracts, receiving, shipping, storage, and materials management

• Financial Management Processes: Payroll, ledger control, taxes, accounts receivable, and accounts payable

• Information Management Processes: Database management, networking, and client-server applications

• Product Development Processes: Product design, testing, configuration, and documentation processes

• Human Resource Processes: Hiring, placement, personnel services, and training.

Motivations to Re-Engineer

• Motivator– Reduce Costs

– Improve quality

– Increase speed

– Overcome a competitive threat

– Change the organizational structure

– Other

• Percent– 84

– 79

– 62

– 50

– 35

– 9

Business Process Improvement Possibilities

• Eliminate duplicate activities

• Combine related activities

• Eliminate inspections

• Simplify processes

• Reduce batch sizes

• Process in parallel

• Outsource inefficient activities

Process Mapping in the EnterpriseBusiness Enterprise

Business GoalsBenchmarking

InformationCustomer

Requirements

BusinessProcesses

Market DistributionManufacturing

SupportProcurement

Logistical Integration

Business ProcessGoals and

Measurement

Business ProcessMapping

Cross FunctionalTeams

Process Mapping—Getting Started

• Begins with a representation of WHAT the specific process is

• Considers activities, information, and interfaces

• Usually shows activities as boxes and uses arrows to represent data and interfaces.

• Major output of the process map is a workflow diagram

Flowchart Symbols Used in Process Mapping

Process DecisionDocument

Data Stored Data Direct Data

ManualOperation

Preparation

The height of the text boxand its associated line

increases or decreases asyou add text. To change thewidth of the comment, drag

the side handle.

Steps to Analyze the Grief Process

• Identify specific causes• Re-analyze in context of linkages to process

activities– Which process activities can be streamlined?

– Is there a role for technology?

– Can certain activities be combined?

– From what perspective is the Process Map being generated? Originator? Purchasing? Supplier?

Benefits of Process Mapping “Grief”

• ID steps in process and time taken to complete

• ID where breakdown occurs and where time savings and additional value can be obtained

• ID where new technologies could be used• Original Problem not only solved, also time

and cost savings from redefining a process

Point of View Owner—Macro Process

Point of View—Manager or Supervisor

Point of View--Senior Mechanic

Point of View--Customer

• Example: Customer intake (ie. Admissions) at hospital– One view: map tasks performed by hospital

personnel to admit a patient– Real view: Patient perspective: routes, tasks,

signatures, and other rqmts the patient needed to perform

• Findings: 40 separate steps and a half-mile walk!

Take-Aways

• Process Mapping is a necessary early first step in BPR.

• Process Mapping is a requirement in Simulation Modeling

• Resolve question of perspective from bottom-up. Document/Key Task/Customer Value Add

• A best practice is a cross-functional team to perform Process Mapping.

• Start with micro-processes and build up and across