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Enabling Effectivenessand Efficiency
OPTIMISING PERFORMANCE THROUGH
IN-DEPTH PROCESS MAPPING
KK Lim
Managing Consultant
BP+ Pte. Ltd.
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Enabling Effectivenessand Efficiency
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?
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Enabling Effectivenessand Efficiency
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
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Enabling Effectivenessand Efficiency
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.
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Enabling Effectivenessand Efficiency
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
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Enabling Effectivenessand Efficiency
Standard Convention in Process Mapping
Operation Decision On-page
Connector
Off-page
Connector
Start / EndSub-process
Document Input / Output End-to-end
Process
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Enabling Effectivenessand Efficiency
Process Landscape Diagram
- Based on Porter’s value chain concept
- Typically formulated based on strategic intent of the business
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Enabling Effectivenessand Efficiency
Process Landscape Diagram
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
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Enabling Effectivenessand Efficiency
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
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Enabling Effectivenessand Efficiency
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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Enabling Effectivenessand Efficiency
Process Flow Diagram
Start
Disti sends special buy request via
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)
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Enabling Effectivenessand Efficiency
Value Stream Map applied to Transactional Process
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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
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60%
25%
15%
5
Average new incoming
quote request per day = 240
64 min
Model N
57%
43%
Takt time = 2 min
(14%)
(26%)
Enabling Effectivenessand Efficiency
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
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Enabling Effectivenessand Efficiency
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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Enabling Effectivenessand Efficiency
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
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Enabling Effectivenessand Efficiency
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
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Enabling Effectivenessand Efficiency
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
Enabling Effectivenessand Efficiency
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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