1. Defining Processes BEFORE ERP
QC Chamber of Commerce
ERP User Group
July 20, 2017
Presented by:
Tom Waggoner
President
Living More Inc.

2. What is Process Mapping? Why do we care? What are the choices?
Agenda
What is Process Mapping?
Why do we care?
What are the choices?
What if we do nothing?
You find Profit where you find Process

3. Every day is a learning opportunity, and the failures
Who am I and Why should you care?
7 International manufacturing company launches – 5 continents.
10 International distribution operation launches – 3 continents
6 Full life cycle ERP implementations
8 LEAN transformations / turn-arounds
1 Coffee Shop
Every day is a learning opportunity, and the failures
Of others provides a clear path to avoid.

4. “The First Step in Finding the Best Way” – Frank Gilbreath
What is Process Mapping
Process Mapping is not a NEW thing.
1921: introduction of th “flow process chart. Frank Gilbreath to ASME members.
1930’s: integrated within business training at “Work Simplification workshops”: - Allen Morgensen
1944: Procter and Gamble
1947: ASME introduces standardized symbology.
“The First Step in Finding the Best Way” – Frank Gilbreath

5. Process baselines are required for IMPROVEMENT
So why bother BEFORE ERP?
All reasons for implementing an ERP solution can be summarized into ONE -
Reduced Cost
Scalability / easier to grow
Process Integration
Order to Cash transparency
…….
IMPROVEMENT
The benefits of ERP are GREAT;
Process baselines are required for IMPROVEMENT

6. Why do we care?
Major steps of Process Improvement:
SIX SIGMA
Process Identification (objectives, scope, etc)
Information gathering (What, who when, where)
Process Mapping (visualization of facts / information)
Analyze
Develop / Install
Manage
Measure
Analyze
Define
Improve
Control
There can be no measurable improvement without a baseline; if not measurable, its not meaningful

7. Why is this the LAST priority?
Why do we care?
Defining / Mapping process BEFORE provides a LIFETIME of value.
Pre-ERP Value (Process Mapping)
ERP Implementation Value
Business Process Improvement
Process / workflow clarifications
Internal and External Training
Compliance (Regulatory and Certification)
Internal Audit
Roles and Responsibilities (RACI)
Gap and Risk Management
Transactions and Interfaces
Org Transformation / readiness
Security
Sustainability
System authorizations
ERP = Improvement. Improvement requires baseline.
Why is this the LAST priority?

8. Process Mapping helps define WHY and WHAT will be improved by ERP.
Why do we care?
Every journey has a starting point.
Understanding your processes is required to pick the right solution (what is CRITICAL to your success?).
Improvement is change and meaningful improvement is measurable.
The ability to measure change requires a baseline.
If you don’t know “who, what, when, and where”, who does? (not your consultant!)
The ability to quantify improvement = Objectives
Process Mapping helps define WHY and WHAT will be improved by ERP.

9. Updating with changes is key to Lifetime Value!
What are the choices?
There are 6 basic choices for process mapping*
SIPOC – Supplier / Input / Process / Output / Customer (Very simple)
High Level Map – Flow more than Detail; typically find color coding and other font actions
Detailed Process Map – Work instruction level; step by step detail
Swim Lane – “Cross organizational who does what”; very common within ERP implementation projects. Excellent ability to identify People, Process and Technology steps.
Relationship – not technically a Process Map; Document / information workflow relationships
Value Stream – Very detailed; typically a driver of LEAN initiatives. Bring a Lunch!
Picking the right approach is the beginning:
Updating with changes is key to Lifetime Value! *

10. What are the choices? A quick peak at the 6 process maps*:
Very simple, sometimes includes “Requirements” (SIPOC-R)
Most common; summarizes steps / actions and participants. *

11. What are the choices? A quick peak at the 6 process maps*:
Takes High Level and breaks down each action into specific steps and decisions.
Often used to visualize “business / transaction communication” plans. NOT a Process Map. *

12. What are the choices? A quick peak at the 6 process maps*:
Very common within ERP projects. Allows the ability to indicate people, process, technology and transactions.
Long-term value for change impact analysis, training, access authorization levels.
HIGHLY recommended. *

13. What are the choices? A quick peak at the 6 process maps*:
Very detailed, contains high level of technical process information. Primary value / use is within LEAN initiatives. *

14. What are the choices?
There are literally HUNDREDS of software packages available.
GARTNER is the industry “expert” providing generally unbiased and objective assessment of technology tools.
Captera is also a good resource for comparative information
“Visio” is generally considered universal; not always considered a BPM tool.
“TIBCO” is an excellent, feature rich tool (People, process, tool, documentation, etc.)
But you can start today simply by using…… *

15. What are the choices?
PowerPoint and Excel provide the ability to create process maps
Long term maintenance is not optimal, however; the price is right! *

16. Poorly defined objectives – what are we trying to achieve?
What if we do nothing?
The REAL Top 3 reasons for ERP implementation failure:
DATA transformation – common oversight, not prioritized – KILLER!
Poorly defined objectives – what are we trying to achieve?
Lack of Organizational Change Management
Establishing Goals and Objective, critical to defining Scope, requires an understanding of current conditions for measurable results.
Your process maps ARE the BASELINE required to set OBJECTIVES and establish SCOPE! *

17. The COST can be immeasurable!
What if we do nothing?
5 Risks associated with doing nothing:
No measurable criteria for ROI.
Inability to identify the origin of critical data, loss of historical information
Lack of effective training – who needs to be trained on what?
Ineffective Change Management / lack of business continuity
FAILURE
Doing nothing doesn’t always result in nothing;
The COST can be immeasurable! *

18. Questions?

19. Leading Change from the Driver’s Seat
Detailz
Strategic Management Consutling
Leading Change from the Driver’s Seat
Making the Best, Better
Don’t miss a turn……
Tools and Experience to guide your organization through the traffic, eliminate the noise, and create an efficient and sustainable future.
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