BPMS 05 Core Process Mapping

1、Defining Core & Enabling ProcessesBusiness Process ManagementCross Functional MappingServiceQualityCostDeliveryDistributorInternalOEM UserCustomer ExpectationsWhat are the major customer expectations? Critical IssuesSpan Units & ScaleProcess Output MeasureCTC IssuesWhat are the Operational Definitio

2、ns of CTC Issues?Customer SpanWhat do Customers See?Scorecards to Manage Results Indicators of Process Performance Core and Enabling ProcessesCritical-to-Customer OutputsCustomer Focused ObjectivesCSIPOWhat are the core processes that create the CTC process outputs?Can you describe these processes w

3、ith a cross-functional map?2What is a Process?An organized group of related activities that together create a result of value to customersDr. Michael Hammer3DEMING On Processes“Eighty-Five Percent of the Reasons For Failure to Meet Customer Expectations Are Related to Deficiencies in Systems and Pro

4、cessRather Than the Employee.The Role of Management is to Change the Process Rather Than Badgering Individuals to Do Better.4The Importance of ProcessProcess is the heart of an enterprise: how value is created and delivered customersProcess thinking is different than departmental thinking: cross-fun

5、ctional and outcome orientation is the perspectiveThe identification of ones process is a fundamental statement of identity: we are what we do, and we do what we judge to be important5Business ProcessesProduction, Union Contract NegotiationOrder Entry, Quoting, Pricing, ProposalPurchasing, Receiving

6、, Month-end ClosingEngineering Change Notice, Returns, ShippingPayroll, Accounts Payable & ReceivableProduct Development, Hiring, RelocationCapital Spending Requests, Termination6Most Processes are Cross-FunctionalThe process of order fulfillment may involve the functional departments of:Customer Se

7、rvicePlant SchedulingMaterial ControlMultiple Production DepartmentsPackagingWarehouseShippingBillingAccounts Receivable7And Most Functional Departments are Involved in Multiple ProcessesThe functional department of Marketing is involved in processes of:Order AcquisitionPrice DeterminationCompetitiv

8、e AnalysisProduct DevelopmentMarket ResearchEtc.8Functionally Focused OrganizationLeaders are focused on functional successGoals & strategy is developed by individual functionsImprovements are prioritized and addressed within functionsStrategy & ActionSalesFinanceMarketingHuman ResourcesPurchasingMa

9、nufacturingProduct DevelopmentFunctionsCustomers?Independent Functions9Customer-Focused OrganizationProducts and services for customers are not produced by functional departments, but by processes which tend to cross departmental linesThis will be the focus of our work in BPMS . To align departmenta

10、l processes to focus on customersStrategy & ActionSalesFinanceMarketingHuman ResourcesPurchasingManufacturingProduct DevelopmentCross Functional ProcessCustomersInterdependent Functions10Core ProcessesHave a major affect on customer satisfaction, by determining how well the company meets customer ne

11、edsAre your essential identity with customersAre the core competencies of the company and your functional department in the customers view11Common Core Business ProcessesVirtually all companies are built around four Core Business Processes which drive the ultimate success of the company. These proce

12、sses deliver significant value to the customer and assure survival and growth:Core Business ProcessesCustomer Service ProcessOrder Generation ProcessNew ProductDevelopmentOrderFulfillmentProcessEnabling ProcessesCompetency Development, Market Research, IS Development/Management, etc.12Business Proce

13、ss RelationshipsEnabling Processes Provide support of Value-Creating and Asset-Creating ProcessAsset-Creating Processes Provide the internal assets used by Value-Creating ProcessesCore Processes Provide results of direct value to customersSuppliersCustomersGoverning Processes Provide Direction to Va

14、lue-Creating and Asset-Creating ProcessesThese are also key processes to improveThese are also key processes to improveThese are also key processes to improve13Example Purchasing ProcessesEnabling ProcessSUPPLIER EVALUATIONAsset-Creating ProcessSUPPLIER DEVELOPMENTGoverning ProcessCONTRACTSCore Proc

15、essMATERIALS CAPACITYSuppliersCustomers14Example Sales ProcessesEnabling ProcessBIDS & PROPOSALSAsset-Creating ProcessCUSTOMER DATABASESGoverning ProcessBUSINESS PLANNINGCore Process CUSTOMER ORDER GENERATIONSuppliersCustomers15Defining a ProcessesDefining a business process may not be obviousMost b

16、usiness processes cross traditional organizational linesThey overlap with other processesSometimes they are fragmented or partially missingThere may not be a well defined singular process . you may need to “find it16How to Define a Business ProcessSelect a critical customer metric, e.g., On-Time Del

17、ivery.Identify the key interaction between the customer and yourself, e.g., customer orders product is your process input and customer receives product is your process output. Trace your process output backward (or forward) through all process steps that create the output. Make a list of all process

18、 steps and where they occur. This chain of process steps is the customer-linked process.Identify the departments and individuals affected by the process outputs, internal, external (including customers and suppliers). These are the Stakeholders of the process.17Team WorkoutSelect a critical customer

19、 issue CTCIdentify the output of your process that determines customer satisfaction for the CTCIdentify the customer input that generates the need to provide the process outputBrainstorm the steps that link the customer input to your process outputMake a list of the major process steps and the the d

20、epartments who perform the work18Example: Steps in Process to Resolve Customer ComplaintsCustomer returns productQuality contacts customer and defines problemQuality examines product for visual problemsManufacturing tests product to determine functional issuesQuality requests corrective action planR

21、esponsible department completes corrective action planQuality reviews corrective action planQuality reports results to customerQuality audits corrective actions to verify effectiveness19History of Process MappingGeary Rummler-Alan Brache (since 1965)Developed Relationship & Process MappingBook - Imp

22、roving Performance, 1990Motorola (since 1983)Added Timeline to Process MapMike Rother-John ShookBook - Learning to See, 1998Developed Value Stream Mapping20Process Map TypesA. Functional/Deployment MapIdentifies inter-relationships of process steps among functions, departments, people who are involv

23、ed in the process to identify barriers, detours and opportunities for simplification (who does the work)B. Process Variables Input/ OutputIdentifies the detailed process flow with inputs to each process step and outputs from each process step(what work is done)C. Process FlowchartingIdentifies the s

24、ystems logic relationships of detailed process activities (how work is done)21Cross-Functional Mapping22Cross Functional MapA map that conveys process hand offs between functions or departmentsRows represent functions Process steps move left to right as time progressesConcurrent activities grouped “

25、top to bottomFunction 1Function 2Function 3Function 423Cross Functional MappingDocuments:Inter-relationships among functions, departments, people who are involved in sequential process deployment activities.Reveals:Barriers, rework paths, delays, blank spaces, information needed and created, and det

26、oursProcess StepRepeat Process StepDecideDelayStorageDocumentend24Sales OrderFinance ExampleProduction Plan MRP(Estimate material consumption)P/OMaterialSourcingProduction ITCProduct Shipping Product/Material inventoriesCalculate material costClosing process input and outputDDCalculate labor costCal

27、culate expenseCalculate overheadClosing accountD+3 daysD day25Calc. Product cost Closing salesEstimate sales profitCalc. Other expensesEstimate financing costEstimate pre-tax profitB/L,P/LverificationENDD+6daysD+7 daysD+8daysProfit in won Financial reportD+5daysFinance Example - continuedClosing Boo

28、ks Process (Monthly)26Team Exercise - Cross Functional Map Attach 3 lined flip chart pages to create the mapping surface The horizontal rows indicate functional departments Review the information from your Core Process List start, end, major steps, functional departments, etc Use Sticky Notes to wri

29、te the process steps, and arrange the sticky notes in time sequence left to right Use more sticky notes if you see more steps to add Use Flow Charting symbols to show relationships among the process steps. Ask for help from the course instructors at this point. They will be very helpful27Cross Funct

30、ional Mapping StepsIdentify the Functional groups that are involved in the process and list on the left side of page. List the customer first.Draw horizontal lines to distinguish functional groupsStart on left side of map, place the first step in the process in the upper left corner, starting with t

31、he customerContinue to place process steps according to following guidelinesTime increases from left to right across mapSteps that occur simultaneously should be stacked on top of each otherArrows always exit on right and enter on left sides of process symbolsProcesses that are connected, but are mo

32、re than one lane apart should be connected with dotted lines 28Mapping AdviceAlways map with a team - one person will not have all process knowledgeObserve the process in many different conditions, repeatedlyWatch the process in real time to observe and obtain detailsDont let space be an issue Use p

33、ost its on the wallIf your map does not have enough space to list all the information, use numbered reference sheets as attachmentsMaintain your process maps and date and update them as necessary use them for ongoing reference keep them current29Process Variables Mapping30Process Variables Mapping S

34、tepsStep 1:Identify the process, the inputs and the outputs (customer requirements)Step 2:Identify all process stepsStep 3: List vital output variables at each stepStep 4: List vital input variables and classify process inputs as controlled C or uncontrolled UStep 5: Add process specifications for I

35、nput Variables31Step 1: Identify The Process, The Inputs and The OutputsHigh level, 10,000 meter view, single boxIdentify the process in simple termsIdentify inputs (the Xs)Raw materials Base InputsEnergy requirementsIncoming informationPersonnelIdentify the Customer Requirements (Outputs, the Ys)In

36、clude attributes to cover the dimensions of time, cost, conformance and quality.32Example: Business ProcessOrder EntryPhoneFAXE-mailMailPriceAvailabilityConfirmation of orderPromise DateOrder numberInputsOutputs33Team Exercise: Step 1Divide into groups of 4 to 6We will be process mapping _Define the

37、 process step and the inputs / outputs for the processThis is the 10,000 meter view of the processYou have 10 minutes34Answer TelephoneGreet customerDetermine part needsIdentify need dateIdentify ship to addressIdentify priceIdentify ship method Get Internal InformationGet internal P/NDetermine term

38、sIdentify lead timeComplete order worksheetEnter OrderInput informationPrint confirmationDetermine ship dateReview orderConfirm OrderFAX confirmation to customerVerify manufacturing receipt of orderOrder Entry ProcessStep 2: Identify all Process StepsInclude all process steps, including verification

39、 & rework. (1000 meter view)35Team Exercise: Step 2Breakdown process steps as described in Step 2This is the 1000 meter view of the processBecause of time, please use no more than 5 process steps in this exerciseLeave room to write additional data on each side of the boxes (process steps)You have 15

40、 minutes36Prompt answerLive bodyPart numberAvailabilityNeed dateCustomer numberOrder worksheetPricingOutputsAnswer PhoneGreet customerDetermine P/NIdentify need dateIdentify ship to addressIdentify ship method Internal InformationGet internal P/NDetermine termsIdentify lead timeComplete order worksh

41、eetOutputsOrder in computerAll line items completeCorrect infoPromise dateOrder numberPrinted confirmationOrder confirmation to customerOrder to productionOrder EntryInput informationPrint order confirmationDetermine ship dateReview orderOrder ConfirmationFAX confirmation to customerVerify manufactu

42、ring receipt of orderStep 3: List Key Output VariablesInclude customer deliverables and processperformance variables37Controlled Inputs: Factors that can be changed to produce an effect on an output variableUncontrolled Inputs: Factors that impact outputs, but are difficult or expensive to control (

43、may be controllable, just not controlled currently). Sometimes called noise variablesCritical Inputs:Input variables that have been shown to have a statistically significant impact on an output variableSOPs:Procedures or methods used in the processStep 4: List and Classify Vital Input VariablesList

44、all input variables and classify them as:38Prompt answerLive bodyPart numberAvailabilityNeed dateCustomer numberOrder worksheetPricingOutputsAnswer PhoneGreet customerDetermine P/NIdentify need dateIdentify ship to addressIdentify ship method Internal InformationGet internal P/NDetermine termsIdenti

45、fy lead timeComplete order worksheetOutputsOrder in computerAll line items completeCorrect infoPromise dateOrder numberPrinted confirmationOrder confirmation to customerOrder to productionOrder EntryInput informationPrint order confirmationDetermine ship dateReview orderOrder ConfirmationFAX confirm

46、ation to customerVerify manufacturing receipt of orderStep 4: List and Classify Vital Input VariablesInputsTypeInformation from customerGreeting scriptAnswering procedureTelephone systemCross reference for P/NsOrder informationPlant loading informationOrder worksheet formPricing algorithmCCCUCUUCCIn

47、putsTypeOrder worksheetComputer entry screensLead time information from mfgShipment methodUCUCPrinted confirmation sheetProduction scheduleCustomer contact infoProduction contact infoConfirmation procedureCUCCC39Controlled Input VariableTargetUpper SpecLower SpecAnswering Script?Pricing Algorithm?Sh

48、ipping Method?Data Entry Screens?Step 5: Add known requirements for InputsFor Input variables identified as Controlled and Critical Inputs, record the operational specifications and targets for these variables.40Team Exercise: Steps 3 to 5Complete the process mapYou have 15 minutesHave a spokesperso

49、n present your results to the class41Process Flowcharting42Start with Block DiagramFrom First Class Service, 1991by Resource Engineering, Inc.Major steps for administering a prescription drugEnd3. Pharmacy fills prescription2. Nurse places order with pharmacy4. Nurse administers medicine1. Doctor wr

50、ites prescription orderStart43Add Detail to the Block DiagramMajor steps for administering a prescription drugDecipherPhysiciansHandwriting?NOInInventory?YESFillOrderYESSend Prescriptionto Nurses StationNurse contactsPhysician forAlternativeContact Nursing Station for AlternativeNOEnd3. Pharmacy fil

51、ls prescription2. Nurse places order with pharmacy4. Nurse administers medicine1. Doctor writes prescription orderStart44Elements of a FlowchartYesStartProcess StepDecisionStopNo45Detailed Flow Charting StepsBegin with the local (mid-level) process map that youve already developed, identify sub step

52、sRecord the steps in the sub processUse action verbs “Answer phone, “Review application)Eliminate duplicates and excessive detailOrganize into order/flow , identify flow chart symbols and add connectorsConsider recording who does the step next to process stepBe sure to leave space for additional inf

53、ormation / data as it comes inTest the flowchartPeriodically review and revise46Team Exercise: FlowchartingDivide into groups of 4 to 6We will be flowcharting the process of making coffeeReview the Block Diagram for the Process and revise it as necessaryDraw the Flowchart details for each BlockYou h

54、ave 30 minutes47Major Steps for Making CoffeeFrom First Class Service Quality ResourcesPreparationBrewingFinishingthe jobEndStart48Example: Improved Order Entry ProcessCustomerServiceMaterialsGraphicsSchedulingCustomerServicePricingOrder EntryLabCustomerServicePricingMaterialsGraphicsSchedulingCusto

55、merServiceOrder EntryLab28 Days12 Days49Sub-optimization Trap50Cross-Functional Process Mapping Follow the flow of materials and information Show time (horizontal scale) and departments (vertical scale) Uses easy-to-understand language Include all process decision points (yes/no) Include all non-sta

56、ndard flow paths, e.g., reworkUse flow charting symbols belowProcess StepRepeat Process StepDecideDelayStorageDocumentendFlow Charting Symbols51S/OSamsung ExampleProduction Plan Critical Y : Fast delivery of management informationCustomer : ManagementRequirement: Close the Books 4days (As-Is 8day 2d

57、ays)MRP(Estimate material consumption)P/OMaterialSourcingProduction ITCProduct Shipping Product/Material inventoriesCalculate material costClosing process input and outputDDCalculate labor costCalculate expenseCalculate overhead costClosing bank accountD+3 daysD day52Calc. Product cost Closing sales

58、Estimate sales profitCalc. Other expensesEstimate financing costEstimate pre-tax profitB/L,P/LverificationENDD+6daysD+7 daysD+8daysProfit in won Financial reportD+5daysSamsung Example - continued53Another ExampleCUSTARRIVES AT DEALERDS MGRSCHED ANALYSIS AND REPAIRDDCASHENTERS JOB IN WORK LOGMECHREPA

59、IRS VEHICLECOMPLETES INVOICESAWRITES COMPLAINTWAITS IN LOUNGEDPAYS CASHIERNOTIFIES CUSTOMERAutomobile Repair ProcessDATA BASEVEHICLE DATATECHREVIEWS COMPLAINT AND SPECIFIES REPAIR54Workout: Cross Functional MapReview the information that you gathered in the core process identification workout start,

60、 end, major steps, functional departments, etc Attach 3 lined flip chart pages to create the mapping surface The horizontal rows indicate functional departments Use Sticky Notes to write the process steps, and begin to arrange the sticky notes in time sequence left to right Use Flow Charting symbols