Technology and Operational Strategy 20MBA302

Semester III CIE 40

Marks
Course code 20MBA302 SIE 60
Marks
Teaching 03 Exam Hours 03
Hours/week
(L:T:P)
Credits 03 Faculty Sheethal.C

Module 2: PROCESS MANAGEMENT MAPPING

Introduction to Process Management Mapping
“Processes are how people within an organization collaborate in
order to accomplish a goal. Essentially everything we do in an
organization involves or contributes to some type of process”.
A business process has typical characteristics:
 It exist some special business need
 Collaboration between multiple people or groups

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MEANING
Process Mapping Consists of a collection of tools and methods used to
understand an organization and its processes. Those tools allow us to
document, analyze, improve, streamline and redesign business processes to
realize organizational efficiencies. A process map is visual aid for picturing
work processes and shows how inputs and tasks are linked and highlights the
steps require to consistently produce a desired output.

Login into Bank website

Customer
login to
website

Customer Asked
to Login

Login Details Customer is notified as

approved Login Failure

Login Approved

Customer
Views
Balance

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Benefits of using Process Maps

1. Pictures guide better than words: The use of graphs, charts, tables
and images guides better than a big complied report with lot of data
fixation issues in it.
2. Process maps facilitate improvements in the process, since it
becomes easy to pin point the specific areas that need changes, like
bottlenecks, delays, capacity constraints etc. in the light of efficiency
and effectiveness of the process.
3. Decision making becomes fast as it deals with the ‘show me’ aspect
and not the ‘tell me’ aspect of the process and the problem areas.
4. The improvements made in the process can easily be tracked
using process maps since it becomes possible to audit and understand
different areas in the process as well as the organization.
5. Visual illustration for training would be much more effective than
any oral tools. The visual example register faster in human brains
and helps them understand the things better and fast.
6. In the need of change, when the organization moves on making the
changes without understanding the current working process, it is
likely to commit more mistakes or deploy its resources in creating
more troubles. Process maps provide a detailed outlook of the
current process and guides the effective management of change.

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7. Process maps serves as a measurement tool for a process, that is

very much necessary to manage and finally improve it.

STEPS FOR DEVELOPING PROCESS MAPS

Business managers can develop an effective process map that facilitates
improvement in the business processes by following some simple steps. The
steps for developing the process map are identified as under:
Step 1 : Select the process
Firstly, the managers must identify the reason for creating the process map.
Is it that the process is not performing up to its mark? Or firm wish to plan a
new service? Or the goal is to augment the value derived from the process?

Secondly, the beginning should be identified, that is the event that create the
demand for the process map and trigger behind the process

Thirdly, the end needs to be uniquely defined, that is what parameters or

conditions will finally satisfy the demand.

Lastly, the business managers must develop a document containing

information about details of the specific process, business problem,
shareholders expectation, business objectives and scope of the process.

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Ex:
1. Identify the process involved in Just In Time

CUSTOMER PLACES
AN ORDER

MANUFACTURER
ORDERS THE
MATERIAL
REQUIRED

SUPPLIER DELIVERS
THE MATERIAL
REQUIRED

MANUFACTURER
ASSEMBLES THE
PRODUCT

CUSTOMER RECIVES
THE PRODUCT

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Step 2 : Identify the scope of the process steps

The business manager must observe the entire process and collect data and
information. The observed process and collected data must then be properly
documented. It is allows essential to identify all the parameters that are
involved in the process like the machinery, suppliers, etc.., it is allows vital
to identify and verify the inputs involved and outputs of the process.

Customer Places an order

International National
Dealers Dealers

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Step 3 : Plan and schedule resources

Identify the systems that are involved in the process. It is necessary that the
mindset of the managers should be shifted from functional to process-
oriented while designing the process map and this can be done by focusing
on the roles and not the jobs. Based on the systems and roles, proper
scheduling of the people involved, task involved and estimated time needs to
be done.
Manufacturer orders the material required
TIER-1
TOYOTA
MANUFACTURERS

DOMESTIC
SUPPLIER TIER-2
OEM’S
IDENTIFY
THE
SUPPLIER
TIER-1
TOYOTA
INTERNATIONAL
MANUFACTURER
IMPORTS S

TIER-2
OME’S

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Step 4: Select Mapping techniques

The next step is to select the mapping technique, like process flowchart or
deployment flowchart. Next would be to plan the process interviews with
individuals as well as focused groups.
Step 5: Conducting interviews
Now it is time to conduct the interviews! Plan and conduct the interviews
in the sequence of roles established in the process map. Explain the
purpose, objective and scope of the interviews as well as the process maps
to the participants in order to reap effective results, while conducting the
interviews, it is vital to identify and establish the input tasks, roles, output
tasks, decisions, task performed and linkage to other processes.
Step 6: As-Is process
Describe the activities that help to transform inputs to outputs. It is time to
map the actual process without considering the ideal should be process or
as per standard operating procedures (SOP). areas where multiple methods
occur, causes of bottlenecks, extra works and wastes and factors that
obstruct process members from performing effectively and efficiently.
Step 7: Analyze, evaluate and Sign-off
Review the process steps thoroughly to learn any redundancies, delays,
unnecessary steps, ambiguous roles, cycle time, activity lapse, repeated
activity flows, bottlenecks and rework loops. Next is to evaluate the
performance of the process. One can make use of the tools to measure the
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same using Pareto Charts, Cause and Effect diagram, process behavior
charts.

Process Map

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Process Flow Charts

Process flowcharts are standardized such that anyone who has an
understanding of flowcharts can look at one and know what is happening.
They follow the logical flow of information so that business stakeholders
have a guide as to how to fulfill processes properly.

Table Showing basic flowchart symbols and their functions:

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EX: Document Approval Process

The following is a basic document approval process, and it can apply to
just about any type of document (legal, HR, etc.…,)
1. The document is submitted
2. If the document is disapproved, process canceled.
3. If approved, the document is stored in a relevant folder
4. Automatic email sent to any relevant party or, as it would look like in
a flowchart…

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STEPS TO CREATE PROCESS FLOWCHART

1. Identify tasks
2. Compile the necessary information
3. Double-check the process
4. Create the flowchart: Create flowchart using the basic

ADVANTAGES OF PROCESS FLOW CHARTS

The following are the benefits that flowchart can effect:

1. Visual Clarity
2. Instant Communication
3. Effective Coordination
4. Efficiency Increase
5. Effective Analysis
6. Problem Solving
7. Proper Documentation

Ishikawa diagrams are sometimes to as fish bone diagrams,

herringbone diagrams, cause and effect diagrams, or Fishikawa. They are
casual diagrams created by Kaoru Ishikawa to show the cause of a specific
event. They resemble a fish skeleton with the “ribs” representing the cause
of an event and the final outcome appearing at the head of the skeleton.

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The purpose of the Ishikawa diagram is to allow management to determine

which issues have to be addressed in order to gain or avoid a particular
event.

Other common uses of the Ishikawa diagram include using it as a

methodology for creating product design that solve practical problems. It can
also be used in quality defect prevention to identify potential factors causing
an overall effect. Each cause or reason for imperfection is a source of
variation. Cause are usually grouped into major categories to identify and
classify these sources of variation.

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Advantage and Disadvantage of Fishbone Diagram

Advantages Disadvantages

1.Helps identify cause and effect 1. Irrelevant potential causes can

cause confusion

2.Helps develop in-depth joint 2. Complex issues may lead to a

brainstorming discussion messy diagram

3.Works well with the 5Whys to 3. Lends itself to the divergent

drill down to a root cause quickly approach

4.Helps prioritize relevant causes, 4. Based on opinion rather than

allowing you to address underlying evidence it needs testing to prove
root causes results

Creating a Fishbone Diagram

1. Identify the problem
The first step in creating a fishbone diagram is agreeing upon and
writing down the exact problem you’re facing. Have your team figure
out who’s involved, what the problem is and when and where it occurs.

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2. Brainstorm the major categories of causes

Step two is deciding how to categorize the cause of the problem at
hand- the factors that may be part of the problem. These could be
equipment, material, system, external forces, people, etc.., in a
manufacturing setting they usually revolve around the 6Ms we
discussed earlier.
 People
 Material
 Method and
 Machine
3. Identify possible causes

Step three really kicks off the brainstorming session as you identify
possible causes of the problem that may be related to each factor.
Visualize these possible cause by drawing shorter lines off of the
“bones” of the diagram. If a particular cause is a bit more complex
draw smaller sub-branch lines coming off of the “cause” line.

 People- Inspector, maintenance staff, MRO staff, supply staff

 Material- Parts used on machines
 Method- Inspection training, maintenance training, inspection and
maintenance procedures

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 Machine-Inspection history, maintenance history, age of the

machine.
4. Analyze the diagram
Using tools like 5Whys, investigation and surveys you can now
investigation the problem further and test to see which of these
potential cause is, in fact, contributing to the problem.

When to use a Fishbone Diagram

A few reasons a team might want to consider using a fishbone diagram
are:
 To identify the possible causes of a problem.
 To help develop a product that addresses issues within current
market offerings.
 To reveal bottlenecks or areas of weakness in a business process.
 To avoid reoccurring issues or employee burnout.
 To ensure that any correction actions put into place will resolve
the issue.

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What is a Cause and Effect Relationship?

A Cause and Effect Diagram is a graphical tool for displaying
a list of causes associated with a specific effect. It is also known as a
fishbone diagram or an Ishikawa diagram (created by Dr. Kaoru
Ishikawa, an influential quality management innovator). The graph
organizes a list of potential causes into categories.

The Cause and Effect Diagram shown here happens to have six branches.
There is nothing magic about the number of branches. This one happens to
be six because sometimes it's convenient to have the chart coincide with the
Six M's. [i.e.. Man (in the Generic Sense), Machine, Material, Method,
Measurement, and Mother Nature] The team often chooses to use
homogeneous groupings for the branches; however, many groupings there

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are. that's how many branches will be on the chart. (below)

Example: A company has experienced problems with a particular

machine. The drilling operation is producing an excessively large size
of burr. What's a burr? If you were to drill a hole in metal; then, if you
were to run your finger across the hole and it cuts your finger, the cut
was caused by a burr. It's virtually impossible to drill a hole without a
burr, but it isn't impossible to minimize the size of them. The team
chose to use a Cause and Effect Diagram to list as many causes as
possible that might have an effect-which in this case is the burr.

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Steps to analyze a cause and effect relationship:

1. Identify the Problem

2. Identify the Root Cause
3. Identify the Sub- Causes
4. Analyze and Validate the Issue
5. Develop an Action Plan

THEORY Z APPROACH

Theory Z is an approach to management based upon a combination of

American and Japanese management philosophies and characterized by,
among other things, long-term job security, consensual decision making,
slow evaluation and promotion procedures, and individual responsibility
within a group context. Proponents of Theory Z suggest that it leads to
improvements in organizational performance.

THEORY Z AS AN APPROACH TO MANAGEMENT

 Theory Z represents a humanistic approach to management. Although it
is based on Japanese management principles, it is not a pure form of

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Japanese management. Instead, Theory Z is a hybrid management

approach combining Japanese management philosophies with U.S.
culture.
 According to Professor Ouchi, Theory Z organizations exhibit a strong,
homogeneous set of cultural values that are similar to can cultures. The
clan culture is characterized by homogeneity of values, beliefs, and
objectives. Clan cultures emphasize complete socialization of members
to achieve congruence of individual and group goals.
 Theory Z organizations exhibit characteristics of clan cultures, they
retain some elements of bureaucratic hierarchies, such as formal
authority relationships. Performance evaluation, and some work
specialization.
 Proponents of Theory Z. suggest that the common cultural values
should promote greater organizational commitment among employees
FEATURES OF THEORY Z

1. LONG-TERM EMPLOYMENT- Type Z organizations generally

make life-long commitments to their employees and expect loyalty in
return. This promotes stability in the organization and job security
among employees."
2. CONSENSUAL DECISION MAKING- The Type Z organization

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emphasizes communication, collaboration, and consensus in decision

making. This marks contrast from the traditional Type A
organization that emphasizes individual decision-making.

3. INDIVIDUAL RESPONSIBILITY-Type Z organizations retain the

emphasis on individual contributions that are characteristic of most
American firms by recognizing individual achievements, albeit
within the context of the wider group.

4. SLOW EVALUATION AND PROMOTION The Type A

organization has generally been characterized by short-term
evaluations of performance and rapid promotion of high achievers.
The Type Z organization, conversely, adopts the Japanese model of
slow evaluation and promotion.

5. INFORMAL CONTROL WITH FORMALIZED MEASURES-

The Type Zorganization relies on informal methods of control, but
does measure performance through formal mechanisms.

6. MODERATELY SPECIALIZED CAREER PATH -The Type Z

organization adopts a middle-of-the-road posture, with career paths
that are less specialized than the traditional U.S. model but more
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specialized than the traditional Japanese model.

7.HOLISTIC CONCERN- The Type Z organization is characterized

by concern for employees that goes beyond the workplace. This
philosophy is more consistent with the Japanese model than the U.S.
model.

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