Juan Ignacio Camino MoyaÁlvaro Fernández-Novel RodríguezJavier Ocaña Infante

Process Analysis and Design

Process:

Is any part of an organization which takes a set of inputresources which are then used to transform somethinginto outputs of products or services.

Design:

Refers to the process of originating and developing a planfor a product service or process.

Process Analysis and DesignWhen analyzing and designing processes we askquestions such as the following…

1. Is the process designed to achieve competitiveadvantage in terms of differentiation, response, orlow cost?

2. Does the process eliminate steps that do not addvalue

3. Does the process maximize customer value asperceived by the customer?

4. Will the process win orders?

Process Analysisand Design

…and we pursue the following goals:

a) Improvement in the way that the business processworks.

b) Value for the customer

c) Reduced costs for the company

d) Increase profits

e) Reduce wasted time and effort.

But how??

Process mapping:

-Used to identify different types of activities.

- Shows the flow of material people or information.

- Critical analysis of process maps can improve theprocess.

Process Analysis Tools

1. Flowcharts

2. Time-function mapping

3. Value stream analysis (VSM)

4. Process charts

5. Service blueprint.

1.Flowchart

A flow chart is a graphical or symbolic representation of aprocess.

Each step in the process is represented by a differentsymbol and contains a short description of the processstep.

The flow chart symbols are linked together with arrowsshowing the process flow direction.

Example 1:

Example 2:

Types of flowcharts

Top-down flowchart

Types of flowchartsDeployment flowchart

Types of flowchartsDetailed flowchart

2.Time function mapping

It’s a special model for deployment flowcharts.

Time added on the horizontal axis

Improvement objective: identify and eliminate waste(delay, duplication, extra steps and inefficiencies) generatedalong the process.

Example

Customer

Sales

Production control

Plant

Warehouse

Transport Move

Receive product

Extrude

Wait

Print

Order product

Process order

Wait

1 day 2 days 1 day 1 day 1 day

6 days

3. Process charts-It records the essential features of a work situation for subsequentanalysis.

-Different forms: outline process chart, flow process chart.

-Different viewpoints: worker, piece of equipment, material…

-Different levels: from macro (multiple activity chart) to micro processes (two-handed process)

Which are value-addedactivities?

Example

A value stream can be defined as all the steps – bothvalue added and non value added – required to take aproduct or service from its raw materials state to thecustomers.

4. Value Stream Mapping

VIDEO

First Step: Customer detailsTake time: Average unit production time needed to meetcustomer demand.

Example: The customer wants to buy 10 units per week,and the units are built during a 40 hour work week. Then,the average time to build an unit must be 4 hours (or less).

In our case, there is a daily demand of 700 piecesper day, and workers spend 8 hours daily, minus30 minutes as breaks.

(8*60-30)/700*60

Second Step: Material Flow

Third Step: Inventory/wait lines

Fourth Step: Information Flow

Fifth Step: Add Timeline

5.Service Blueprinting

5. Service BlueprintingIs a process analysis technique that focuses on thecustomer and the provider´s interaction with thecustomer.

It also allows for visualization of the service developmentprocess in its early stages. In each process step, contactpoints between client and firm become visible.

The Service Blueprinting is based on the separation of theservice into individual processes that can be assumedseparately

Components of the Service Blueprinting

Physical Evidence: For each customer action the physical evidence that customers come in contact with is described at the very top of the service blueprint.

Customer actions: It includes steps, choices, activities and interactions that customer performs in the process of purchasing, consuming and evaluating the service

Onstage Contact: These actions are face-to-face actions between employees and customers and they are visible to the customer.

Components of the Service Blueprinting

Backstage Contact: Steps and activities that occur behindthe scene to support onstage activities. Every step andactivity in this stage is invisible to the customer.

Support Processes: These are all the activities carried outby individuals and units within the company who are notcontact employees. These activities need to happen inorder for the service to be delivered.

Components of the Service Blueprinting

Line of interaction: separates the process steps of the service activities that the client carries out independently

Line of visibility: separates the service activities that the client can see from the service activities which are hidden from view.

Line of internal interaction: separates contact employees activities from those of other service support activities and people.

DETAILED FLOWCHART

SERVICE BLUEPRINT

TIME FUNCTION MAPPING

VALUE STREAM

ANALYSIS