OPTIMISING PERFORMANCE THROUGH IN-DEPTH PROCESS …

Enabling Effectivenessand Efficiency

OPTIMISING PERFORMANCE THROUGH

IN-DEPTH PROCESS MAPPING

KK Lim

Managing Consultant

BP+ Pte. Ltd.

1


Content

What is Business Process Mapping?

Why is it required?

Types of Business Process Maps

Common Pitfalls in Process Mapping

How to leverage on Business Process Mapping in your

transformation / process improvement initiative?

2


What is Business Process Mapping?

• Visual description of business process, related

activities, input and output

• Model of the business process

ProcessInput Output CustomerSupplier

Resources

Governance

3


Why is it Required?

• Document the business process, which could

include the operations/activities, inputs, outputs

and roles involved in the business process.

• Provide an “official reference” on the business

process and a common understanding of what is

involved.

• Facilitate the analysis of current process (As-Is) and

redesign of improved process (To-Be).

• Aid in the identification of critical process

parameters.

4


Types of Business Process Maps

• Process can be modelled at different levels, from

the high strategic level to the operational / tactical

level.

• Variety of process maps and methodologies:

Process Landscape Diagram

Supplier-Input-Process-Output-Customer (SIPOC) Diagram

Process Flow Diagram

Swim-lane Flow Chart

Process Flow with RACI matrix

Value Stream Map

5


Standard Convention in Process Mapping

Operation Decision On-page

Connector

Off-page

Connector

Start / EndSub-process

Document Input / Output End-to-end

Process

6



- Based on Porter’s value chain concept

- Typically formulated based on strategic intent of the business

7



Vision to Plan

Market to Business

Idea to Technology

Idea to Product

Demand to Stock

Order to Cash

Coreprocesses

Enabler processes

Finance &

Accounting

Human

ResourcesPurchasing

Relations

Management

Infrastructure

Management

8


Process Landscape Diagram: Next Level of Granularity

• Overview of customer satis-

faction and development;

proposals for corrective

action

• Solved customer problems

• Design In opportunity

• Customer

requirements

• Potential new

customers

• Market information

(volumes, customer

and competitor pro-

f iles, ow n market

position products)

• Customer require-

ments

• Business ideas

Market analysis

Customer care

• Product and technology

road-maps

• IP/core roadmap

• Milestone decisions

• Demand for cooperation

Sales/marketing strategy

Portfolio management

• Sales strategy & plan

• Target customers and

applications

• Classif ied customers

• Customer development

plan

• Allocation plan

• Design w in/loss

• Contract

• Customer

requirements

• Business Ideas

Acquisition & BOD Design In to Contract

9


SIPOC Diagram

• Macro level of end-to-end process

Transport material

Ship material

Receivematerial

Put awayto stock

Agoods out process

Btransport

Cgoods in process

T0 T1 T2 T3 T4

t1 t2 t3

TT = Transit Time

Pick from stock

Finished goods stock

Production Transit

t4

DC

Stock

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Start

Disti sends special buy request via

email

Customer infoPart No.QtyCostConfirmation by NXP Sales / Marketing (Asia)

CPQC create special buy quote in Model N

CPQC check price curve

Cost > min. field price?

CPQC releases the quote

CPQC escalates the quote to Regional

Marketing

Yes

No

Regional Marketing reviews quote

Agreed to price?

Regional Marketing sets “No Bid”

Cost > regional min. price

Regional Marketing release the price

Yes

Pursue Business

No

No

Regional Marketing modifies the price

(resale price / cost)Yes

YesRegional Marketing

escalates to BL Marketing

No

BL Marketing reviews the quote

Agreed to price?

BL Marketing releases the price

Yes

Pursue Business?

No BL Marketing sets

“No Bid”No

BL Marketing modifies & releases

the price

Yes

A

CPQC checks special buy price list to determine

new request or changed request & document in

remarks field (Asia)

B

Example (Page1/2)

11



Example (Page2/2)

12


Swim-Lane Flow Chart

13


Process Flow Diagram with RACI Matrix

14


Value Stream Map

15


Value Stream Map applied to Transactional Process

16

Disti Disti

CPQC RM / CM Approval

BL Mktg Approval

184106

PT=10.9 min

Total work time =

10.9 * 5 = 54.5 min

1 shift = 8 hrs

54.5 min 5 min

368 min

5 min

212 min

PT= 5 min PT= 5 min

Pricing & Quoting Office

Model N

Model NModel N, by email

Asia Disti Quote Process Value Stream Map

VA=64.5 min

NVA=644 min

32

60%

25%

15%

5

Average new incoming

quote request per day = 240

64 min

Model N

57%

43%

Takt time = 2 min

(14%)

(26%)


Common Pitfalls in Process Mapping

Not defining the start and end of the process clearly

Confusing the use of operation block and decision

block

Poor discipline in using a consistent convention

Criss-cross of process flow arrows leading to

confusion

Mapping without involving the right stakeholders

Failure to perform a process walkthrough to verify

the accuracy of the process mapped

Failure to update the process map document as a

“live” reference

17


How to leverage on Business Process Mapping in your

transformation /process improvement initiative?

Use the process map to identify the value-added

and non-value-added activities.

Collect and document the data on process

parameters e.g. process cycle-time, pass-through

rate and waiting time.

Identify opportunities for improvement based on

ECRS framework

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Process Analysis Example:

Current Inbound Process FlowStart

Forwarder register

with security

Perform weight

check

Move to

BreakBulk Area

Verify Delivery

Order

Perform physical

check

Hand over

Delivery Order doc

to data entry

Data entry key into

EKO -DN No.

Carton No.

Open the cartonCutting the carton

cover

Remove the

product box from

shipping carton

Match the product

box against DN

Place the product

box by lots on

trolley / pallet

Document on DN

the trolly/pallet #

& storage type

Hand over DN to

data entry

Data entry will key

into SAP: DN #, lot

#, trolley/pallet # &

storage type

System assign bin

location &

correlate with GIT

file

Data entry perform

posting to SAP

(F8 key)

Location slip print

out

Sort location slips

by trolley / pallet #

Move trolley /

pallet to inbound

staging area

Match the trolley /

pallet with location

sips

Match location slip

with physical

product box

Move to storage

location

Put the physical

product box to

assigned bin

Perform closing of

transfer order

End Type 1 NVA Type 2 NVA

19


Process Analysis Example:

New Inbound Process Flow

Start

Forwarder register

with security

Verify Delivery

Order

Perform Weight

Check

Perform Physical

Check & EKO

Scan

Lay out material

acc. to AWB in BB

& Sorting Area

Retrieve DN &

Open the carton

Sort Material onto

Trolley by DN

Perform GR by barcode

scan of DN#, Trolley &

Storage Code. Enter Lot#

manually

Print location slip

& place on trolley

Send material on

trolley to binning

location

Perform TO

closingEnd

Type 1 NVA

20


Approach to Streamline the Process

21


ECRS Framework for Process Streamlining

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Eliminate

Combine

Re-

Arrange

Simplify

Remove redundant or non-value-added step

Integrate the process step with the next Perform the process step in parallel with another

Change the sequence of the process steps

Maintain the process step but simplify the work

content


Sometimes Parallel Processing Does Not Work!

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Conclusion

Process mapping is an essential tool to understand

the current state of the process (As-Is) and to design

the future state of the process (To-Be).

Disciplined use of process mapping will facilitate the

identification and resolution of process issues.

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Date post:	11-Dec-2021
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