Strategy for Process Mapping

SCM3106 Business Process Reengineering with Change Management

Department of Supply Chain and Information Management
The Hang Seng University of Hong Kong
Process View of Organizations
Balanced Scorecard (BSC)

The balanced scorecard is a strategic planning and management system that organizations use to
focus on strategy and improve performance.
 BSC Framework
How do we look to shareholders?

Financial
Perspective

Objectives KPI
s

Quantifiable Action
Customer Value Targets Plan Internal Business
Perspective Process Perspective
How do
What must we
customer see us? Objectives KPI Objectives KPI
s excel at?
s

Quantifiable Action Learning and Growth Quantifiable Action

Targets Plan Perspective Targets Plan

Objectives KPI
s

Quantifiable Action
Targets Plan

Can we continue to improve and create value?

BSC is a Step in a Continuum that describes what value is and how it is created

Mission
Why we exists
Value
What is important to us
Vision
What we want to be
Strategy
Our game plan

Strategy Map
Translate the strategy
Balanced Scorecard
Measure and focus

Target and Initiatives

What we need to do
Target and Initiatives
What we need to do

Strategic Outcomes

Satisfied Delighted Efficient and Effective Motivated and Prepared

Shareholders Customers Processes Workforce
Strategy Map
Financial Perspectives Cause-and-Effect Relationship
Define the chain of logic by which intangible assets
Long-term
will be transformed to tangible value.
Shareholder Value

Productivity Revenue Growth

Customer Perspective Customer Value Perspective

Product/Service Attributes Relationship Image Clarifies the conditions that will create value tor the
customer.
Price Quality Time Function Partnership Brand

Internal Process Perspective Value-Creating Perspective

Defines the processes that will transform intangible
Manage assets into customer and financial outcomes.
Manage Manage Manage
Regulatory and
Customers Operations Innovation
Social Processes

Learning and Growth Perspective Clustering of Assets and Activities

Defines the intangible assets that must be aligned and
integrated to create the value.
Human
Capital
+ Information
Capital
+ Organization
Capital
Strategy Map further elaboration

A Strategy Map is a diagram that

describes how a company or
organisation can create value by
linking strategic objectives in a cause
and effect relationship based on the
four Balanced Scorecard
Perspectives: Financial, Customer,
Internal Processes and Learning &
Growth.

The key element of the Strategy Map

is that it is linked to ‘scorecards’ that
monitor progress towards the
Strategic Objectives.
Strategy Map Example – Cloth Merchant
主要表現
指標 (KPIs)
● 利潤率
利潤增長
財務 ● 銷售額
● 壞賬率

銷售增長 減少壞賬

● 新客⼾比
顧客 開發新客⼾
保持忠誠
● 優質客⼾比
的優質客⼾
● 客⼾忠誠度
● 客⼾投訴數量
合理價格 快速回應 準時交貨 優質服務 品質保證 ● 客⼾退貨率
● 準時交貨率
● 報價成功率
流程 有效的 便宜和品質
有效銷售流程 產品管理 信貸控制 ● 產品更新率
供應鏈管理 穩定的供應商 ● 交貨週期
● 供應商表現
● 信貸償還週期
學習與成長 ● 合格供應商數量
電腦跟單系統 品質管制系統 供應商網路資料
● 質檢員表現
● 銷售員表現
⾼質素的質檢員 ● 新概念數量
市場和潮流
優質銷售員
的觸覺

核⼼價值 專業 ⾼效 ⽤⼼ 創新

9
Strategy Map Example - A Printer
KPIs
財務 1. ⽑利
維持
率
現有利潤率
2. 淨利
客⼾ 1. 潤率客⼾流失率
維繫現有客⼾ 3. ⽣意
2. 舊客⼾銷售
額
比例
⽣產資訊回饋 合理價值 準時交付 穩定品質 3. 準時交付率
4. 客⼾投訴率
5. 客⼾滿意度
流程 1.
6. OEE
報價成功率
綜合產能維護 2. ⽣產計畫準
確率
重要⽣產 重要⽣產 3. 設備使⽤率
⽣產計畫 品質控制系統
設備使⽤率 設備維修保養 4. 產品不良率
5. 客⼾滿意度
持續改進機制 1. 改善項⽬數量
學習及與成長
企業資源 2. 跨部⾨專案比例
規劃系統 (ERP) 持續改善及 3. 改善專案效益
⽣產管理能⼒ 4. 改善項⽬參與⼈
核⼼價值 數比
待⼈貴 同事互 學習須 ⼯作要 ⽣活開 上下⼀ 產品最 客⼾滿 誠實加 發展更
真⼼ 關⼼ ⽤⼼ 專⼼ 開⼼ 條⼼ 精⼼ 信⼼ 忠⼼ 稱⼼
Process Management Model
Long-term Shareholder Value

Strategy Map
Through benchmarking to ensure business processes are best-in-class

Financial
Improve
operation effectiveness

Customer
Provide convenience and
easy-to-use all-in-one service

Internal
Process
Adapt the best-in-class operating
method to improve current processes
Operations Model

Attract, develop and retain proactive and capable employees

Learning and
Growth Create a customer-centric
organization Proactive

Identify the opportunities Competency Model

in applying technology
同步均衡⽣產模式
《個案分享》
 戰略地圖
財務
業務增長

客⼾ 國內業務 國外業務

快速回應 優質產品 合理成本 準時交付 優質客服

流程
便捷 靈動 適時
產品開發系統 ⽣產系統 物料系統

新產品 合時 精益 即時 訂單拉動
⽣產資料 ⽣產計畫
可製造性 配件⽣產 ⽣產圈 ⽣產計畫

舊產品 外購件
樣本製造 表⾯處理⼯藝 零件倉
持續改善 配合度

學習
電腦輔助 企業資源
與成長 ⽣產⼯程 多技能員⼯ 銷售預測
設計系統 規劃系統 (ERP)

中層
技術能⼒ 管理能⼒
管
⽣產流程(改善前)
⽣產流程(改善後)
3/F 專線(改善前)
 3/F 專線(改善後)
MRP

MES
3/F 專線(改善後)
4/F 包裝線(改善前)
4/F 包裝線(改善後)
4/F 包裝線(改善後)
4/F 包裝線(改善後)
4/F 包裝線 – 表現指標
 改善成效
改善前績效 改善後績效 估計可達到的績效
完結
Process
Mapping
Process Map (Swimlane Diagram )
+ These diagrams, also known as cross-functional maps, detail the sub-process
responsibilities in a process
 Advantages of Process Map

• Processes usually extend beyond the borders of a single work unit

• Work groups usually only “see” the steps in their organizational unit
• People working on one part of the process often don’t communicate with
those in other parts
• Process maps are the best way to remove the mystery
• They provide the most amount of detail – a “100 foot” view of the process
Creating a Process Map - Steps

Step 1 : Label the Process Map

Step 2 : Determine the Frame or Boundaries
Step 3 : Identify the Players in the Process
Step 4 : Determine the Steps in the Process
Step 5 : Sequence Steps/Show Responsibilities
Step 6 : Draw the Process Map
Step 7 : Check the Process Map
Step 8 : Prepare the Process Map in Visio
Step 9 : Review and Revise the Process Map
 Step 1 : Label the Process Map

• Process mapping can be valuable at any level:

o Discrete service level (output level)
o Service group level
o Work unit’s activities
o Individual worker’s tasks
• Agree on what you will be mapping
• Determine what level of detail you wish to capture
o Identify the question of interest, problem, or opportunity pursued
o Proceed to more detailed charts as needed
• Label the process map with:
o Title of the process
o Date the map is being created
o Name of those who are contributing to the map
Label the process map
 Step 2 : Determine the Frame or Boundaries

• The purpose of this step is to identify how broad or narrow the process
analysis effort will be
• Where the group decide the process begins and ends determine the focus for
studying and measuring the process
• Define where the process starts
o How does this process begin?
o What happens to initiate or kick off the activities in the process?

• Define where the process ends

o How does the process end?
o What is the final step or activity required to deliver the product or service?
Define the boundaries
 Step 3 : Identify the Players in the Process

• Identify all key “players” in the process

o Use Division/Office/Branch designation and/or position titles if possible, rather than
people’s names
o Include people who handle steps prior to you – these are your internal suppliers
o Include people who handle steps after you – these are your internal customers

• List each “player” and mark it on the map vertically

Id
e
nt
if
y
pl
a
y
er
s
 Step 4 : Determine the Steps in the
Process
• Describe the activities that transform inputs into outputs
• Map the ACTUAL process the way it occurs now
o Not the ideal process (the way it should occur)
o Not the formally documented process (the way the SOP says it happen)
• Consider the following:
o What major activities occur in the process?
o Where do decisions need to be made or approvals occur before the next
step?
o What causes extra work or rework in the process?
o Are these places where more than one method is occurring?
 Step 5 : Sequence Steps/Show Responsibilities

• Arrange the steps in the order in which they occur

• Place each step under the name of the office or position with primary
responsibility for accomplishing it
• Where more than one player is required to participate in a step, indicate this
with a blank circle placed in the appropriate column
• Rearrange steps and players as needed, until they accurately show how the
process flows
Process steps
 Step 6 : Draw the Process Map

• Assign the correct flowchart symbols to each step

• Review the process flow
o Add steps if missing
o Reorder steps if needed
• Show the flow of activity between steps with arrows
• Show shared responsibility for a step with circles and lines
• Provide a symbol key at the bottom (or on the last page) of the flowchart
Step 6 : Draw the Process Map
– Process Start-End
Step 6 : Draw the Process Map
- Process Steps
Step 6 : Draw the Process Map
- Process Decision
Step 6 : Draw the Process Map
- Multiple Players
Step 6 : Draw the Process Map
- Process Continuations
 Step 7 : Check the Process Map

• Are symbols used correctly?

• Are process steps clearly described?
• Does every path take you either back to or ahead to another step?
• Does the chart accurately depict what really happened?
• Have you labelled your flowchart and provided a key?
 Step 8 : Prepare the Process Map in Visio

• Prepare your flowchart in Visio (or another software if you already have it)
o Limit map to one or two pages if possible
• Best if not too detailed the first name around
• One to two pages are easier to review and discuss with others
• Can have more detailed flowchart as back-up if desired
• Add details or breadth as needed
o But don’t sacrifice sense or understanding in favour of saving space/paper
 Step 9 : Review and Revise the Process
Map
• Provide team with print-out of the process map and discuss
o Is this process operating the way it should be?
o Does everyone really complete the activities as shown here?
o Are there obvious places where the process could be simplified?
o How different in the current process from the ideal process?
o How can this process be improved?

• Show the process map to others and get their feedback

o Internal suppliers
o Internal customers
o Management staff
 Questions to Ask in Process Flow Analysis
and Improvement
• Flow Balanced? Where is the bottleneck? Are all steps necessary? How jumbled is the
flow?
• TIME How long to produce one unit? Can it be reduced? Cycle time? Excessive set-up
time? Excessive waiting time?
• Quantity Theoretical production amount? How easy to change? How many units actually
produced?
• Quality Historical defect rate? Which step contributes to defect rate? Where do errors
occur?
• Cost Cost to produce one unit? What are cost buckets for one unit? Can some of the
buckets be reduced or eliminated?
 Corporate Improvement Opportunities
– 1.4.1 Training
+ Key Aspect: Control (Strategy, Accuracy)
+ Process No.: 1.4.1.1 Training Need Analysis (TNA)
➢ The training needs identified through TNA is not yet fully utilized such as those from
the open-end questions. It acts as a vehicle for coping with the growing needs of
training.
+ Implications & Improvement Opportunities
➢ In addition to analyze the TNA result from the perspective of one single year, further
analysis can be done by trend analysis on past few years. This provides valuable
information on forecasting the future training needs and ideas on the future
development of corporate training team. This also helps to transform training from
operational role to strategic role.
➢ Qualitative feedback – open end, comprehensiveness.
➢ Findings share to other functional departments.
Value Stream
Mapping
What is value ?

$ Pay

Value

“Value is what the customer is willing to pay for. ”

What is Value ? An Example
How Much can be Improved ?

5% only Can be eliminated immediately (Type II wastes)

Value Added • Waiting

Operation • Motion
• Inventory
• Transportation

Operator
perform
Wastes Can’t be eliminated, the operation must be performed
under current situation (Type I wastes)

Non-value • Take off the package of the materials

Added operation • Input information
• quality checking
Steps in
Implementing
Value Stream
Mapping
 Drawing a Value Stream Map

1) Define customer requirements

2) Understand the core process
3) Input the data collected into the “Data Boxes” and “Inventory Triangles”
4) Define delivery information
5) Identify (main) supplier information
6) Identify the information flow between processes (e.g. how the process know the
quantity needed to produce)
7) Draft the value stream map and identify value-added and non-value-added
processes
Value Stream Mapping Symbols

Cycle Time
The time taken for a workpiece to be
transformed by a single task

Value Added Time

Time taken for value-added activities

Lead Time
The time takes for material to flow
through the entire value stream
Current Value Stream Map
Future Value Stream Map
Success Factors of BPR

• Top management sponsorship and leadership (strong and consistent

involvement)
• Strategic alignment (with company strategic direction
• Compelling business case for change (with measurable objectives)
• Proven methodology (that includes a vision process)
• Effective change management (addressing cultural transformation)
• Line ownership and process ownership (pair ownership with
accountability)
• Reengineering team composition (in both breadth and knowledge)