Process Mapping Workshop 11/8/1999

2 Agenda Overview of Processes Core and Support Processes for E+L Process Redesign Process Mapping Concepts

An Overview of processes

4 A set/sequence of related activities aimed at achieving a desired result What are Processes ? SUPPLIER YOUR PROCESS YOUR PROCESS CUSTOMER InputsOutputs Feedback

5 A Business Map represents all the processes that make up the business This is then broken down into multiple processes Then sub processes... … Sub-sub processes... … Activities How are processes defined ?

Core and Support Processes for E+L

7 Core Processes A process That makes a direct difference to the external customer Any change will directly impact the customers Any change in the functioning of the process will result in increase or decrease in customer’s perception of Value. Core processes are: Customer Management Process - Enquiry to Delivery Customer Servicing Process

8 Support Processes SUPPORT PROCESSES are defined as those processes in the organisation which enable the optimal performance of the core organisational process(es). Support processes are:  Manage Finance (including Costing)  Manage Information Systems  Manage Stores  Manage R&D  Manage Quality Systems

9 Why distinguish between core and support processes Supplier Customer Core Process Support Process The benefits of process optimisation comes from focussing maximum effort on rethinking the core process. Only then should support processes be optimised. Maximum effort needed here

10 SUPPLIERS CUSTOMERS Customer Management Process - Enquiry to Delivery Manage Finance Manage Information Systems Manage Stores Manage R & D Manage Quality Systems Core and support process - E+L

Process Redesign

12 Why go for Process redesign Provide a better focus on customers Dissatisfaction with current way of doing business Re-align the business to suit the changed environment

13 Checklist for Process Redesign... Focus on customers and the generation of greater value for customers Remove non-value added (NVA) activities –NVA refers to activities that do not result in any perceived value for customers (e.g. redundant data entry, unnecessary movement of documents) –NVA should be kept only for control purposes Undertake parallel activities, speed up response and development times

14 Checklist for Process Redesign... Concentrate on outputs and link performance measures and rewards to customer related outputs Network related people and activities Ensure people have adequate resources to carry out the tasks

Process Mapping Concepts

16 Process Mapping - The IDEF Approach

17 Introduction IDEF stands for Integration DEFinition language Was developed by U.S. Air force to increase manufacturing productivity Used to produce a ‘function model’, which is a structured representation of the functions, activities or processes within the modeled system Used to analyze the functions the systems performs and to record the mechanisms (means) by which these are done Currently being used in government, industrial and commercial sectors supporting modeling efforts for a wide range of enterprises and application domains

18 Introduction The result of applying this technique is a model that consists of a hierarchical series of diagrams cross-referenced to each other IDEF0 model structure

19 Characteristics Capable of graphically representing a wide variety of business operations to any level of detail Helps in understanding, analysis, improvement and replacement of the existing system Enhances communication between developers and users Well tested and proven Can be generated by a variety of computer graphic tools ex:Visio

20 Concepts Two primary modeling components are functions (represented by boxes) and the data and objects that inter-relate those functions (represented by arrows) Function Name Box Arrow

21 Concepts Boxes represent functions that show what must be accomplished A function is defined as activity, process or transformation Each box will have a name, which is a verb or verb phrase to represent a function and a number Examples of functions are: Process parts Plan resourcesConduct review Monitor performance Design systemInspect part Develop detail design Fabricate component Boxes DEVELOP MODEL 1

22 Concepts Arrows identify data or objects needed or produced by the function An arrow is composed of a line segment, with a terminal arrow head at one end Each arrow shall be labeled with a noun or noun phrase Examples of arrow labels are SpecificationsTest reportBudget Design requirements Detail designDirective Design engineerBoard assemblyRequirements Arrow PERFORM DETAILED DESIGN 1 Preliminary design data

23 Concepts Function Name InputOutput Control Resources Each side of the function box has a standard meaning in terms of box/arrow relationship

24 Concepts Input is something that triggers off a process or enters a process and is transformed into an output. The inputs could be the outputs from a previous step or inputs received from another process or could be received from an external entity. Input PERFORM DETAILED DESIGN 1 Preliminary design data

25 Concepts An output is something that is produced by a process after converting an input that is received from it. An output could be a result that will trigger another process. Every process produces outputs. Every process step should thus show outputs. The outputs may form inputs to the next step of the process or as inputs to another process or may go to an external entity. The outputs of a certain process may be resources or constraints for another process. Output PERFORM DETAILED DESIGN 1 Preliminary design data Recommended detailed design

26 Concepts Controls specify the conditions required for the function to produce correct outputs Every process has a set of policies, guidelines, regulations, rules, shared values and frameworks by which it has to abide A function has to work within the frameworks and cannot exceed/violate them. Each box shall have a minimum of one control arrow and one output arrow Control (Constraints) PERFORM DETAILED DESIGN 1 Preliminary design data Recommended detailed design Design Requirements

27 Concepts Resources are the means used to perform the function Resources are human resources, information systems resources or other such resources that are used by a process in converting the inputs to outputs Resources (Mechanism) PERFORM DETAILED DESIGN 1 Preliminary design data Recommended detailed design Design Engineer Design Requirements

28 Diagrams Graphic diagram is the major component of an IDEF model, containing boxes, arrows, box/arrow interconnections and associated relationships Boxes represent each major functions and these functions are broken down or decomposed into more detailed diagrams, until the subject is described at an activity level The top level diagram (also called context diagram) in the model provides the most general description of the subject represented by the model The top level diagram is followed by a series of child diagrams providing more details about the subject

29 Top level context diagram Each model shall have a top-level context diagram, called the A-0 (A minus zero) diagram, on which the subject of the model is represented by a single box with its bounding arrows. Arrows on this diagram interface with functions outside the subject area to establish model focus A-0 diagram also sets the model scope or boundary and orientation Context diagram has brief statements specifying the model’s purpose and viewpoint –Purpose expresses the reason why the model is created and actually determines the structure of the model –Viewpoint determines from what perspective it is created

30 Example of a Top level context diagram

31 Example of a context diagram

32 Decomposition of top-level function Top-level function is decomposed into sub-function parts, and those parts, in turn, are further decomposed until all of the relevant detail of the whole viewpoint is adequately covered Top-level function is decomposed up to level 2.5 –Context diagram is called a Level 0 diagram –First level of decomposition is called a Level 1 diagram –Decomposition of Level 1 diagram is called as Level 2 diagram –Listing of activities for all the functions on the Level 2 diagram is called as Level 2.5 diagram

33 Decomposition of top-level function IDEF0 model structure

34 Diagram features Outputs as constraints and inputs

35 Diagram features Concurrent operation - Several functions in a model may be performed concurrently, if the needed constraints have been satisfied

36 Diagram features Inter-box connections - Except for the A-0 diagram, a graphic diagram contains a minimum of 3 and a maximum of 6 boxes. Boxes are normally organised diagonally from the upper left corner to the lower right.

37 Diagram features Boundary arrows - Boundary arrows represent the inputs, controls, outputs, or mechanisms of the parent box. All boundary arrows on a child diagram shall correspond to the arrows on the parent box

38 Diagram features Diagram Number - The diagram number is the node number of the parent box (For the context diagram, the number is A-0) Box Number - Each box shall be numbered in the lower inside right corner of the box, to uniquely identify the boxes within a diagram (For context diagram, the number is 0) Node Number - All parent boxes have a node number. A node number is formed by appending the box number to the diagram number (For context diagram, the number is A0)

39 Diagram features IDEF0 model structure

40 Example - Level 0 diagram

41 Example - Level 1 diagram LEVEL 1

42 Example - Level 2 diagram

43 Terminology used in Process Mapping Definition Objective Scope Boundaries Critical Success Factors (CSF) Key Performance Indicators (KPI) Performance Measures (PM) Process Responsibilities (Owners)

44 Terminology used in Process Mapping... Definition - Gives a brief background about the Process Objective - –The objective refers to what the process aims to achieve. –It is something that adds/creates value to the customers and other stakeholders of the process Scope - –The scope of a process refers to all the areas that the process covers. –The key broad areas need to be clearly identified.

45 Terminology used in Process Mapping... Boundaries - –Boundaries are the points where a process starts and where it ends. –Every process has a point that initiates it or triggers it and a point that concludes it or hands off to another the process.

46 Terminology used in Process Mapping... Critical Success Factors (CSF) - –Every process is trying to achieve an objective reflected by its outputs and with a given set of inputs and resources and within the framework imposed by a set of constraints/controls. –Thus, in order to consistently meet the objective the process needs some things (could be qualified input, resources etc) that are very critical to achieving its objective consistently. –These things are called critical success factors. We need to identify these factors for all the processes. –Once the CSFs are defined and all such CSFs are provided, the process should consistently meet its objective. –E.g. Well-defined Corporate strategy for preparing a business plan

47 Terminology used in Process Mapping... Key Performance Indicators (KPI) - –Once processes are defined, one needs to know on a regular basis whether the processes are achieving what they were set to achieve. –Thus the performance of the process needs to be measured. –These measurements have to be made in key areas. These key areas that give an indication of the performance of a process are KPIs. Every process has to have its KPIs defined. –E.g. - Time to prepare Strategic Business Plan

48 Terminology used in Process Mapping... Performance Measures (PM) - –For every KPI that is defined, a Performance measure has to be defined. –Performance measure refers to the standard/target we would like to set/achieve for a KPI. –While KPIs are indicators of performance PMs are targets /standards for each KPI. –E.g. Time to Prepare Strategic Plan is ‘X days from the beginning of the financial year.

49 Terminology used in Process Mapping... Process Responsibilities (Owners) - –Every process should have process owner. –The process owner is responsible for the process performance. –The process owner is defined either as the name of an individual along with the functional designation. –In cases where there are multiple individuals with similar functional designation only the functional designation will suffice.

50 Vision and Mission of E+L Vision –The vision of E+L is to transform itself from a web- handling company today to a control and automation player in the future. The vision involves E+L being a technology and a cost leader in its field. Mission –The Mission statement of E+L is “To meet and surpass customer expectations by world-class manufacturing practices leading to total customer satisfaction”.

51 Key Objectives of the organisation Customer Satisfaction - By being cost-effective and through the best customer response times with total lead-times of between 2-5 weeks Customer Complaints - Needs to be solved in 7 working days with a 48-hour response time. Profit After Tax (PAT) - Should be at least 10% Turnover per employee - Should increase from Rs. 6.5 lakhs per person currently to Rs. 15 lakhs per person Flexibility - Enable the customer to make last minute changes to orders