Process Analysis

Process
Analysis
• Definitions and Importance
• Basics
• Flowcharts
• Process Measurement
Compiled by:
Alex J. Ruiz-Torres, Ph.D.
Multiple Sources + Jacobs & Chase (2018)
Definitions and Importance
2
Process:
Set of activities that transforms a set of inputs
into a set of outputs.
Process Analysis:
The study of the components, activities, inputs,
outputs, measures,… related to a process.
3
Business Processes are defined as a set of activities
that are
1. Well structured.
2. Create a product /output for a customer – service or
physical.
3. Require resources ($, space, people, machines,…) and
inputs (information, raw materials, …).
4. Can be measured.
4
Importance of Process Analysis
–Processes are the backbone of how organizations
function.
–Properly designing and then improving BPs is
essential for business success
• Efficiency, profitability and to meet customer needs.
5
• Process Analysis identifies
– Lack of control points (or too many)
– Redundant steps (or missing)
– Bottlenecks (or excess capacity).
– Starving points (work is not performed for lack of
inputs).
6
Basics
7
Basics
• Process analysis requires determining the scope
of the BP under consideration.
• This includes the level of detail and the start +
finish points.
a) luggage check-in only
b) passenger and luggage check-in, security clearance,
boarding the plane, …
8
Basics
Process analysis must identify
1. Customers and outputs.
2. Suppliers and inputs.
3. Activities and resources.
4. Measures of performance.
5. Entities.
9
Basics
Many possible types of entities
– People: patients in a hospital.
– Forms: admission application at a university.
– Materials: food items at a warehouse.
– Waste: trash collected from offices.
– Vehicles: trucks at a post office.
– Information: inventory information at a store
• Analysis may consider multiple types
– For example patients, forms, and samples …
10
Basics
Business System: Multiple processes
• For example in an airport
– Check-in
– Security
– Luggage to plane
– Passenger loading
– Airplane taxi to runway and takeoff.
–…
• Each with different customers, inputs, entities, resources, and
measures of performance.
11
Entity Resources Activities Output Metrics
Information Passenger Waiting
Airline
exchange; luggage with ticket time,
Check-in Agents; Info
collected; and luggage customer
System
payments checked in. complaints.
Security
TSA Agents; Passengers and Secure
failures;
Security scan carry on luggage passenger
waiting
machines scanned and luggage
time
% of time
Luggage moves
Conveyor Secure luggage
Luggage from check in to
System; luggage in makes it to
to plane airplane;
Airport staff airplane the correct
inspection
plane
Control tower Safe
Airplane request Airplane
Airplane staff; Info landings;
permission to land; has a safe
Landing Systems; Waiting
tower approves, … landing
Runway; … time
12
Airline
System
Security
failures;
waiting
time
% of time
Luggage moves
to plane airplane;
inspection
plane
Control tower Safe
Runway; … time
13
Airline
System
Security
failures;
waiting
time
% of time
Luggage moves
to plane airplane;
inspection
plane
Control tower Safe
Runway; … time
14
Airline
System
Security
failures;
waiting
time
% of time
Luggage moves
to plane airplane;
inspection
plane
Control tower Safe
Runway; … time
15
Airline
System
Security
failures;
waiting
time
% of time
Luggage moves
to plane airplane;
inspection
plane
Control tower Safe
Runway; … time
16
Airline
System
Security
failures;
waiting
time
% of time
Luggage moves
to plane airplane;
inspection
plane
Control tower Safe
Runway; … time
17
Flowcharts
18
Flowcharts
• Flowchart: A visual representation of a process.
• A fundamental component of process analysis is
Process flowcharting.
• There are many types of flowcharts.
– General process analysis
– Information technology
– Assembly/ Manufacturing
19
Flowcharts
• Some basic components of a flowchart are actions,
direction of flows, inspections, and decision
points.
• Commonly used symbols:
ACTION/
OPERATION WAIT CONNECTOR
QUALITY
ACTION MOVE DECISION
20
Flowcharts
https://www.pinterest.com/pin/415879346812907720/
https://www.lucidchart.com/pages/templates/flowchart
21
Flowcharts
http://www.conceptdraw.com/samples/flowcharts
22
Flowcharts
• Developing flowcharts may take as long as a few
minutes to as much as weeks.
– Involves asking questions to all the resources involved and
to its customers. Who does what? what happens then?...
• Depends on process complexity
– Number of different actions.
– Number of decisions and different routes.
– Level of desired detail (the scope).
23
Flowcharts
• Developing good flowcharts is not an easy task.
– Combination of experience and some artistic ability.
• There are multiple software options to develop

flowcharts.
• For most purposes, Microsoft PowerPoint will do.
– Microsoft’s tutorial on developing flowcharts
– https://support.office.com/en-us/article/video-create-a-flow-chart-af4e3f4c-3854-486a-88ff
-eb35692663dc
24
25
Process Measurement
26
Process Measurement
Is understanding/ monitoring the performance of
the BP
– Is it resulting in the desired output?
– How often does it fail to meet the customer’s needs?
– How much time it is taking?
– How much is it costing?
– How much $ is it generating?
27
Process Measurement
It allows organizations to
– Understand their current situation.
– Track behavior over time.
– Understand effect of changes.
– Evaluate performance when compared to competitors.
https://kcerny.wordpress.com/2011/03/18/measuring-high-performance-agile-teams/
28
Process Measurement
Efficiency
= Productivity = Outputs / Inputs.
– For example: number of parts produced per worker.
– Discussed in the Productivity Deck.
Effectiveness
= The quality of the output (correct result).
29
Process Measurement
Efficiency
= Productivity = Outputs / Inputs.
Effectiveness
= The quality of the output (correct result).
– Recruiting process: was the right candidate hired?
– Cooking process: food tasted good?
– Assembly process: did the TV pass the quality test? TV worked
correctly when customer uses it?
– Medical process: patient got well?
30
Process Measurement
Other very important measures relate to time:
– How long did it take to complete the process? = cycle
time (time from start to finish of a process).
– How long did the entity (person, car, loan application)
had to wait? = waiting time.
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