Final Exam Review Chapter 4 Process Analysis What is process analysis What are the steps involved in process analysis Process Analysis The set of tools used to identify opportunities for improvement document current processes evaluate processes to find performance gaps redesign processes and implement desired changes All about asking good questions o W4H what who where when how o FTQ2C flow time quantity quality cost Process Analysis Steps o Step 1 Identify Opportunities Managers must pay particular attention to the four core processes o 1 Supplier relationship o 2 New service product development o 3 Order fulfillment o 4 Customer relationship Each process is involved in delivering value to external customers Customer satisfaction must be monitored periodically formal measurement system or informal checks or studies Strategic issues gaps costs top quality quality consistency delivery speed and on time delivery meet or exceed expectations Is there good strategic fit Suggestion system is a voluntary system by which employees submit their ideas on process improvements o Step 2 Define the Scope Establishes the boundaries of the process to be analyzed A process scope can be too narrow or too broad The resources that management assigns to improving or reengineering a process should match the scope of the process Design team consists of knowledgeable team oriented individuals who work at one or more steps in the process conduct the process analysis and make the necessary changes Internal or external facilitator full time specialist know process analysis methodology and they can guide and train the design team Process cuts across several department lines steering team several managers from various departments headed by a project manager who oversees the process analysis o Step 3 Document the Process Includes making a list of the process s inputs suppliers internal or external outputs and customers internal or external Understanding the different steps performed in the process using one or more of the diagrams tables and charts o Step 4 Evaluate Performance Good performance measures to evaluate a process for clues on how Metrics are performance measures for the process and the steps to improve it within it Start competitive priorities The analyst creates multiple measures of quality customer satisfaction time to perform each step or the whole process cost errors safety environmental measures on time delivery flexibility Collect information on how the process is currently performing on each one Analysis of the process and its performance on the selected metrics should uncover disconnects or gaps between actual and desired performance Performance gaps can be caused by illogical missing or extraneous steps Analyst or design team should find the root causes of performance o Step 5 Redesign the Process gaps o Step 6 Implement Changes Implementation brings a life the steps needed to bring the redesigned process online o How can one get a detailed understanding of the process What is a flowchart Documenting the Process Flowchart A tool to trace the flow of information customers equipment and materials through the various steps of a process Swim Lane Flowchart A visual representation that groups functional areas responsible for different sub processes into lanes Service Blueprint A special flowchart of a service process that shows which steps have high customer contact Examples o Flow Chart of Consulting o Swim Lane Flowchart in Manufacturing o Service Blue Print o How are flowcharts swim lane flowcharts and service blueprints similar or different What is a process chart Process Charts An organized way to document all the activities performed by a person or group Activities are typically organized into five categories Transportation Inspection n Operation l Delay Storage q The annual cost of an entire process can be estimated It is the product of 1 Time in hours to perform the process each time 2 Variable costs per hour 3 Number of times the process is performed each year o In a transformation process what are activities of operations transportation inspection delay and storage Operation changes creates or adds something Drilling a hole or serving a customer Transportation moves the study s subject from one place to another sometimes called materials handling Inspection checks or verifies something but does not change it Delay occurs when the subject is held up awaiting further action Storage occurs when something is put away until a later time What is the purpose of a checklist a histogram a bar chart a Pareto chart a scatter diagram or a cause and effect diagram Data Analysis Tools Checklists a form used to record the frequency of occurrence of certain process failures o Histograms and bar charts o Histograms a summarization of data measured on a continuous scale showing the frequency distribution of some process failure in statistical terms the central tendency and dispersion of the data o Bar charts a series of bars representing the frequency of occurrence of data characteristics measured on a yes or no basis Pareto charts a bar chart on which factors are plotted along the horizontal axis in decreasing order of frequency Scatter diagrams a plot of two variables showing whether they are related Cause and effect diagrams Fishbone a diagram that relates a key performance problem to its potential causes manpower method machine movement o 5 M s mother nature money measures pennies o 5 P s people process performance parts plan o o Graphs representations of data in a variety of pictorial forms such as line charts and pie charts o How is a Pareto chart similar or not similar to ABC analysis for inventory ABC analysis the process of dividing SKUs into three classes according to their dollar usage so that managers can focus on items that have the highest dollar value o What does a scatter diagram look like o Is the cause and effect diagram know by another name How can a pareto chart or cause and effect diagram be Fishbone diagram constructed Why engage in brainstorming Benchmarking o Six Questions regarding each step and the whole process Identifying primary factors affecting process failures What is being done When it is being done Who is doing it Where is it being done How is it being done How well does it do on the various metrics of importance o Brainstorming letting a group of people knowledgeable about the process propose ideas for change by saying whatever comes to mind The purpose is to