Effective Process Mapping for (Business) Improvement & ISO9001:2000

Effective Process Mapping for (Business) Improvement &

ISO9001:2000

Effective process mapping Version K.10.1-UK Oct 03

The High Performance Organisation Ltd

Version K.10.1-UK Oct 03The High Performance Organisation Ltd

2Effective process mapping

Workshop objectives

1.Understand and apply a process mapping protocol

2.Practice process mapping skills

3. Develop process based performance indicators

4.Review process mapping facilitation skills



Outline of the day

1. What is a process and what is process management?

2. Proposed process mapping protocol

3. Process & procedure design

4. Process measurement and monitoring

5. Practice

6. Facilitating process mapping



Session one

What is a process and what is process management?

Learning points:•To understand what is meant by the term process based management•To be able to put process management in context•To understand the system, process and procedure relationship.



What is a process?

Inputs Output

Transformationactivity



What is a process?

1. What could be some inputs to an organisational / business process?

2. What could be some outputs from an organisational / business process?



What is a process?

Process

Materials

Procedures and methods

Information

People

Knowledge

Competence

Plant or equipment

Products

Services

Information

Paperwork

INPUTS? OUTPUTS?

‘don’t get confused with resources & constraints’



What is a process?

InputsMeasure outcomes

/ results against targets

Process as aseries of activities

Resources necessarily used in carrying out the activities

Constraints



What is process management?




Learn & improve toEnhance performance



But what do we improve?




Learn & improve toEnhance performance

Budget Competence Asset use

Methods

Teamwork

Environment

CultureH&S

Information sharing

‘you manage the resources & constraints notjust the process itself’



System management

Inputs Outcomes / results

LearnChange

Law

Society

Economic Products &Services

Customersatisfaction

Environmental

Regulations



Why process management?

• Research indicates that the biggest problem is that managers do not understand the processes they are working in, and therefore cannot manage them

» Collins, P. (1997), “Using Process Mapping as a Quality Tool” Management Services, Vol. 41, No. 3, pp 24-26.



CEO

Dept.1 Dept.5Dept.4Dept.2 Dept.3

1

6

2

FunctionalHierarchy

Inputs

Outputs

Controlflows

down throughdepartments

Work processes flow across departments

3 4

5

Functional Hierarchy vs.

Product/Service Flow



Why process management?• The problems in organisations often occur between

changeovers, when one process step flows to another process step in a different department or to a different specialist ….business processes are like a relay race, with the baton passing from one person to another within the organisation.

• The Olympic relay team don’t practice running together, they only practice the baton changes!

• Having only good runners will not get you the gold medal!



Management system structure multi-level mapping

Management System

A process A process

‘the what is done’

A procedure

‘the how it is done’

Owner - Director

Owner – Process Owner

• Measure business performance finance, customer process, innovation

• Measure efficiency and effectiveness

• finance, customer process, innovation

Training Guide

Photograph



Exercise 1

Group 1 – What is the impact of process managementon an organisation?

Group 2 – What is system management and how doyou incorporate standards into a system?

Group 3 – What are the benefits of process and systemsthinking to customers and the organisation?



Session two

The principles of process mapping

Learning points:•To map a business process at the correct level•To understand how and when to use sub-processes•To design processes that can be effectively communicated•To map processes using simple tools and techniques.



To map a process

•Start by defining the ‘real’ purpose of the processi.e. what the process is designed to achieve•Define inputs•Define outputs.

Then…..



Process mapping• Process mapping aims to deliver a pictorial or graphical

representation that shows clearly:– A number of linked process definitions represented in sequential

order– Process definitions need ‘active’ verbs which describe activity

[delivery of, creation of, completion of, agreeing to, analyzing of etc….]

– Identification and visibility of process owners– Identification and immediate visibility to key functional interfaces– The start and end point of each process– Use a consistent level of detail across processes.



Basic process mapping symbols

Activity DecisionYes

No

Process Flow



The 7 golden rules of process mapping

1. Time (& process flow) moves from left to right

2. Agree overall process title with start & end points

3. Define critical activities and critical cross-functional interfaces

4. Identify Process Owner

5. Use active verbs to describe process activities and, if possible, define processes in terms of desired outcome.

6. Map using 3 levels (if required) of consistent detail

7. Apply the 80:20 rule – don’t try to map every eventuality



Exercise introductionUnderstanding the Leisure Business

Planning the business

Market our services

Run the leisure facility

Run the restaurant

Run conferences

Monitor performance

Bring about change

ManagingPeople

Managing Money

ManagingSupply chain

Managing Assets



Exercise 2

1. In groups develop a draft process map for one of the service delivery processes in hotel’s management system.



Questions to Ask?

• What difficulties did you have?

• What would prevent you from process

mapping effectively?

• What questions / issues do you have?



Other issues

•Can the map be understood in 30 secs?•Can the map be seen easily on a PC screen if needed?•Can other people understand it?•Get the big picture by concentrating on the ‘Yes’s’ first•Is it clear and concise?•Is everyone included?•Are roles and responsibilities defined?



Process map: example one

Issue Store

Machine Shop

Machinist - Honer (1) 0.0% utilization

Machinist - Turner (1) 0.0% utilization

Wait Time (1) 0.0% utilization

Wait for both batches

to be completed.

Turn piston to size. On

batch completion send out

Drill out barrel, hone

and polish. On batch

completion send out.

Take out material

and mark in sets

Assemble items.

Send out.

Heat treat to

specification. Batch

size - 1000

De-grease, sand-blast

and final de-grease.

DE-ICER MACHINING & HEAT TREATMENT

‘Comments?’



Process map: example two

Implement tactical direction and identify priority list of

what needs to be achieved, who,how.

General Managers Forum

Implement tactical direction from the Board.

General Managers SalesReview and evaluate current performance.

Management Executive Meeting M.E.M. (Group)

Research Independents and identify their needs and expectations for the

future.

Marketing

Research Independents, Multiples & Distribution outlets and identify their

needs and expectations for the future.

Sales Directors

Research market place for potential opportunities and identify potential impact on

P&H.

Directors

Review requirements of :- Bank , legal and regulatory

institutions and implications for P&H

Financial Director

Identify Holdings Board Requirements

Managing Director

Research and identify staff training needs and

expectations for the future.

Operations Director

Research and Identify Supplier / Manaufacturer needs and expectations

for the future.

Commercial Director Implement tactical direction from the Board

National Sales Manager Distribution Services plus

Account Controllers

Is direction tactical or strategic ?

Produce planning assumptions and template Finance Plan including any

sales numbers.

Financial Controller

Define sales strategy and resources required to deliver sales targets.

Sales Director

Produce departmental plan covering objectives,

timescales, manpower I.T. requirements, equipment,budget etc to deliver sales

target

Head Office Department Managers

Produce Branch plan covering objectives,

timescales, manpower, equipment, budget etc to deliver the sales target.

General Managers

Consolidate all plans into P&H business plan.

Implementation Group

Facilitate a review process with Sales Director


Do individual Sales Plans fit?

no

Consolidate into Sales plan and distribute.


Define goals and objectives to Senior Managers.


Communication of business plan

implementation and advise tactical changes.

All Senior Managers

Approve plan


Facilitate Review and solve issues


Review / evaluate strategy, needs of the market and

review direction

Board

Discuss / agree shared strategy and objectives.

Board strategic

Review / sign off with relevant Directors

General Managers

Tactical Action Plan

tactical

yes

Note:- The Directors involvement is to indicate

the flow of the process only and does not explain their

full job functions.

Do different departmentall business plans fit

together?

‘Comments?’



Exercise 3

1. In groups map a another process from the Hotel’s management system but not one of the service related (core) processes.



Session three

Procedure design

Learning points:•To understand when procedures may be required•To understand how to construct procedures and linkthem to process activity•To know the mandatory procedures needed for ISO9001:2000.



Management system structure: multi-level mapping

Management System

A process A process

‘the what is done’

A procedure

‘the how it is done’

Owner - Director

Owner – Process Owner

• Measure business performance finance, customer process, innovation

• Measure efficiency and effectiveness

• finance, customer process, innovation

Training Guide

Photograph



ISO 9001:2000 Requirements

Documented procedures are required to meet the Standard (see below)

• Preventive action• Corrective action• Control of documents• Control of non-conforming product• Control of records• Internal audits.



Tips

• Start with a verb

• Don’t cover more than 1 process activity box

• Don’t be concerned with linking, it’s in the process

• Don’t need scopes, responsibilities etc.

• Use bullet points



Exercise 4

1. Prepare a number of procedures for an activity in the process you have designed



Session four

Process measurement and monitoring

Learning points:•To understand how to link process performance to theoverall organisation•To know how to select the correct key performance indicators.



Process basedperformance indicators

1. Process performance indicators linked to the purpose of a process

2. Process performance indicators which measure the outcome of a process in terms of volume, cost, time, safety & quality i.e. business results

3. A metric, a percentage not a target.



Impact on typical scopeHigh Performance Organisations

Stakeholder Needs ISO 9004Customer Needs ISO 9001

Business (quality) objectives

Processes

Key performanceindicators

Monitor Performance& Improve

System KPIs

Process KPIs

‘shaped by the needs of stakeholders &customers’



KPI business examples•Number of sales leads / Number of sales achieved

•Number of deliveries made on time / Number of deliveries made

•Number or value of credit notes raised / Number of orders delivered

•Average debtor day

•Number of staff leaving within 3 months / Total number of staff

•Total sickness and absence days / Total work days available

•Number of products not to specification / Total number of products

•Number of customers leaving / Total number of customers

•Individual customer value / Total number of customers.



Process KPIs & ISO9001:2000

Outcome

(efficiency ofthe process)

(effectivenessof the process)

8.2.3 – Monitoring &measurement of

processes

8.2.4 – Monitor &measurement

of product



Exercise 5

1. Develop effectiveness and efficiency key performance indicators for the processes you have mapped.



Session five

Facilitatingprocess mapping

Learning point:•To understand the role of the facilitator.



Facilitators roleThe facilitators role could include:

• Helping the process owner to map the process with others as required•Helping to identify KPIs based on the purpose of the process•Providing training on process and systems management•Not getting involved in the detail of the process but concentrating onhelping create a good processApplying best practice in business process mapping•Ensuring that a consistent level and ‘feel’ to the process and the system is achieved•Managing the ‘pace’ of the meeting.



In summary

Build a process based on its purpose

Ensure the processaligns with

organisational objectives

Communicate & runthe process

Measure performanceAgainst targets

Improve theprocess based

on results



Session six

Skills practice



Exercise 6

•Identify a process for your organisation

•Map the process from that system

•Identify process performance indicators



Guidance, advice & support

In partnership with

The High Performance Organisation LtdTel. +44 (0)1604 470837

[email protected]

Documents

Effective Process Mapping for (Business) Improvement & ISO9001:2000