1. Process Mapping Overview 10/8/1999

2. 2 Agenda Overview of Processes Core and Support Processes Process Redesign Process Mapping Concepts Information Model Identification of Core and Support processes for E+L Issues

3. 3 Objectives At the end of the workshop we should: Be able to appreciate the concept of business processes Understand the benefits of process approach Understand why each person has a critical role to play in the rollout of processes and how he/she can contribute in this effort Identified Process Owners for all key processes and sub- processes

4. An Overview of processes

5. 5 A set/sequence of related activities aimed at achieving a desired result What are Processes ? SUPPLIER YOUR PROCESS YOUR PROCESS CUSTOMER InputsOutputs Feedback

6. 6 wThus, if we run our businesses on the basis of processes we will have a clear view of what we receive into our organisation, what we produce out of them, what we do to produce them, what we use to produce them and what guidelines/norms we adhere to. wProcesses quantify the efficiencies of doing what we do to produce a certain output. wProcesses also break barriers that we set up – as functions which sometimes results in losing focus on the ultimate result. What are Business Processes ? The objectives of doing business is to use some inputs, transform them to outputs that the business requires to satisfy customers and other stakeholders, and in the process create value

7. 7 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 ?

8. Core and Support Processes

9. 9 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. Examples of Core processes are: Acquire and Deliver Services

10. 10 Support Processes SUPPORT PROCESSES are defined as those processes in the organisation which enable the optimal performance of the core organisational process(es). Examples of supporting processes are:  Manage Finance (including Costing)  Manage Information Systems  Manage Purchase, Stores  Manage R&D and Design  Manage Quality Systems

11. 11 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

12. 12 SUPPLIERS CUSTOMERS Acquire and Service Customers Manage Product/Market Development Manage Human Resources Manage Finance Manage Information Systems Manage Establishment Core and support process - Sample

13. Process Redesign

14. 14 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

15. 15 Our approach to Process Redesign Map‘As-is’ process Design ‘To-Be’ process Vision, Mission, Objectives Identify corporate vision,missio n and objectives Drill down to functional objectives Objectives Process Workshop Map As-is processes Identify goals, CSFs, KPIs for each process Identify suitable SAP best practices Incorporate in redesigned process Information Model Map information flows Collect issues and prepare Issues Database Identify core & support processes

16. 16 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 Concentrate on outputs and link performance measures and rewards to customer related outputs Network related people and activities

17. 17 Checklist for Process Redesign... Implement work teams extensively Ensure people have adequate resources to carry out the tasks Keep core processes to a minimum. They should all be directed towards external customers.

18. Process Mapping Concepts

19. 19 Process Mapping Concepts Function Name InputOutput Control Resources All Processes will be documented to capture all the salient features

20. 20 Process Mapping Concepts (Contd.) Definition Objective Scope Boundaries Critical Success Factors (CSF) Key Performance Indicators (KPI) Performance Measures (PM) Process Responsibilities (Owners)

21. 21 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.

22. 22 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.

23. 23 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

24. 24 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

25. 25 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.

26. 26 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.

27. Information Model

28. Identification of Core and Support Processes at E+L

29. 29 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”.

30. 30 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 seven 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

31. 31 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. Examples of Core processes are: Acquire and Deliver Services

32. 32 Support Processes SUPPORT PROCESSES are defined as those processes in the organisation which enable the optimal performance of the core organisational process(es). Examples of supporting processes are:  Manage Finance (including Costing)  Manage Information Systems  Manage Purchase, Stores  Manage R&D and Design  Manage Quality Systems

33. 33 SUPPLIERS CUSTOMERS Acquire and Service Customers Manage Product/Market Development Manage Human Resources Manage Finance Manage Information Systems Manage Establishment Core and support process - Sample