A Business Case for Process Based Organization

Objective
Document Core Business Processes Analyze and find out the areas of improvement in existing processes in terms of - Duplicate Efforts - Unnecessary steps - Cycle time delays - Opportunity for Automation
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Methodology
Document the Existing Business Processes in accordance with the Business Process Documentation template and Business Process Diagram (BPD) technique Identify the Processes to be improved Identify IT capabilities

What is a Business Process

Business Process
A business process is actually a collection of interrelated processes that function in a logical sequence to achieve the business needs. The business process focuses on meeting the needs of the customer and delivering a good or service that will fulfill that need.
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Business Process Documentation Template

Business Process Name Sub Process Name Sub Process Owner Sub Process Description Process Flow Sub Process Start Sub Process End Key Inputs and Outputs Performance Measures IT Capabilities Remarks and Comments
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Example Business Process Documentation

Business Process Name Sub-Process Name Sub-Process Owner Fabrics (Yarn Dyed) 1.0 Sell and Handle Customer Order 1.1 Handle Customer Inquiry Sales Team

Sub-Process Description The objective of this sub-process is to identify the qualified business leads that are likely to turn into a deal or an opportunity. This is required for efficient utilization of time and resources of the organization for potential customers.

Example Business Process Documentation (Contd.)

A lead can be received from different sources like - Distributors - Exporters - Buying houses - Garmenters Lead qualification is all about effective resource management focusing the valuable time of sales team on those opportunities with the highest potential. These leads need to be qualified for the type of customer and the product type.

Example Business Process Documentation (Contd.)

The customer qualification are based on the following criteria : o o o o o o Potential Credit worthiness Nature of the customer Type of customer Market feedback on the customer and The industry exposure of the sales team.

These qualifications will help focus the sales team on the customer with a higher potential and greater profitability.

Example Business Process Documentation (Contd.)

The product is qualified primarily to assess whether the Centralized Product Development Cell (CPDC) can produce the product inquired. The sales team does the first assessment and can take the help of CPDC for the product qualification. Once a lead has reached a desired qualification level, it can be transformed into an opportunity and passed to the logistics department.  Process Flow The qualified customers are added to the lead database. A lead number is given for each qualified lead for proper tracking the lead. Lead processing may have different status at different stages of the lead management cycle. Every time a new lead is entered, it is assigned the Pending Status. We can track the different lead status till confirmed order is received or the lead is cancelled. Based on the qualified lead details, the sales person identifies whether only price quote is required or sample development is also required. The CPDC department enters technical data and prepares a CAD of the product. Based on the data given by CPDC, MIS department computes the price and contribution. Price quote is sent to prospective customers. The sales stage status is set to "Costing Complete". If the price quote suits the customer, he may ask for sample development or he may directly order bulk quantity without asking for sample (Handloom, yardage or labdips). Physical samples are requested from each customer who qualifies for sample 10 development.

 

Example Business Process Documentation (Contd.)

Sub-process Starts Receipt of lead from customer Sub-Process End Lead is disqualified as the customer does not qualify Lead is disqualified as the product does not qualify Lead is qualified after validation Inquiry database updated Decision Matrix Decision Decision Making authority Supporting information Information source

Customer Qualification

Potential of Customer Credit Worthiness Nature of Customer (RMG,Brands etc.) Type of Customer(Gold/Silver) Market feedback on the customer The industry exposure of sales team
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Example Business Process Documentation (Contd.)

Decision Product Qualification Supporting Information
Weaving Feasibility by CPDC Process Feasibility by AT Tech.

Key Inputs and Outputs Key Inputs Inquiry from Customer Customer Qualification Feasible product database Product feasibility from CPDC Approval of Customer Qualification from senior management Key Accounts database Key Outputs Qualified Inquiry Qualified Customer Qualified Product Key Account identfied Physical sample
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Sampling requirement

Example Business Process Documentation (Contd.)

Performance Measure
Sr. No 1. Performance Measure No. of leads in pipeline Standard Actual Responsibility

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Value of leads in pipeline

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%age of leads which are converted into order

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Example Business Process Documentation (Contd.)

IT CAPABILITIES  Ability to capture and maintain Inquiry details about product specifications, expectation on quantity, price and delivery, and special requirements in an inquiry database.  Ability to qualify the customer based on a set of parameters  View of past orders / samples with similar product specification  Ability to configure the required product by successive selection of predefined alternative details in hierarchical order from the product database  Ability to qualify the product based on a set of parameters  Information on actual costs of bulk product, if product specification match earlier orders.  Availability of details actual lead time of orders already executed and estimated lead time of bulk production.  Plan and track activities required completing inquiry process (in case of a novel product specification or sample making)  Update Inquiry status upon realizing defined milestones-material availability, sample ready , sample approved etc.,  Customer database with general information  View history of orders with given customer 14

Example Business Process Documentation (Contd.)

          IT Capabilities (Contd.) Allow defining the fields in the inquiry as mandatory or supplementary Restrict registration of inquiry if mandatory fields are blank New past orders / samples with similar product specifications Raise indent for inquiry sample production along with product details Record expected dates against every product specification not yet specified by customer Make quotation of price and delivery date Maintain identity of creator and authorizer of quotes Close open inquiries with win/loss status and reason code Reports on lost inquiries analysis and inquiries open Ability to cancel inquiry at any stage REMARKS & COMMENTS
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In Conclusion
    Document AS IS processes Identify process improvement opportunities Business processes can be improved using business tools Reduce Non Value-Added-Activities (NVAs) (manual work/rework)

Everybody can think how they may improve a process in their department.

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Business Process Diagrams (BPD)

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Business Process Diagram (BPD)

A Business Process Diagram (BPD) is commonly a diagram representing a sequence of activities. It shows events, actions and links or connection points, in the sequence from end to end.

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Business Process Elements

The modeling of Business Processes is done by simple diagrams with a small set of graphical elements. It should make it easy for business users as well as developers to understand the flow and the process. The four basic categories of elements are as follows : Flow Objects Events, Activities, Gateways Connecting Objects Sequence Flow, Message Flow, Association Swim lanes Pool, Lane Artifacts Data Object, Group, Annotation These four categories of elements give us the opportunity to make a simple business process diagram (BPD). It is also allowed in BPD to make your own type of a Flow Object or an Artifact to make the diagram more understandable.

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Flow Objects
A BPD has a small set of (three) core elements, which are the Flow Objects, so that modelers do not have to learn and recognize a large number of different shapes. The three Flow Objects are: Events Activities Gateways
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Flow Objects (Contd.)

Event : An Event is represented by a circle and is something that happens during the course of a business process. These Events affect the flow of the process and usually have a cause (trigger) or an impact (result). Events are circles with open centers to allow internal markers to differentiate different triggers or results. There are three types of Events, based on when they affect the flow: Start, Intermediate, and End (see the figures to the right, respectively).

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Flow Objects (Contd.)

An Activity is represented by a rounded-corner rectangle (see the figure to the right) and is a generic term for work that company performs. An Activity can be atomic or non- atomic (compound). The types of Activities are: Task and SubProcess. The SubProcess is distinguished by a small plus sign in the bottom center of the shape.
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Flow Objects (Contd.)

Gateway A Gateway is represented by the familiar diamond shape (see the figure to the right) and is used to control the divergence and convergence of Sequence Flow. Thus, it will determine traditional decisions, as well as the forking, merging, and joining of paths. Internal Markers will indicate the type of behavior control.

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Connecting Objects
The Flow Objects are connected together in a diagram to create the basic skeletal structure of a business process. There are three Connecting Objects that provide this function. These connectors are: Sequence Flow Message Flow Association
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Connecting Objects (Contd.)

A Sequence Flow is represented by a solid line with a solid arrowhead (see the figure to the right) and is used to show the order (the sequence) that activities will be performed in a Process.
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Connecting Objects (Contd.)

A Message Flow is represented by a dashed line with an open arrowhead (see the figure to the right) and is used to show the flow of messages between two separate Process Participants (business entities or business roles) that send and receive them.
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Connecting Objects (Contd.)

An Association is represented by a dotted line with a line arrowhead (see the figure to the right) and is used to associate data, text, and other Artifacts with flow objects. Associations are used to show the inputs and outputs of activities.

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Swim Lanes
The concept of swim lanes is a mechanism to organize activities into separate visual categories in order to illustrate different functional capabilities or responsibilities. The two types of BPD swim lane objects are: Pool Lanes
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Swim lanes (Contd.)

A Pool represents a Participant in a Process. It is also acts as a graphical container for partitioning a set of activities from other Pools (see the figure to the right).
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Swim lanes (Contd.)

A Lane is a sub-partition within a Pool and will extend the entire length of the Pool, either vertically or horizontally (see the figure to the right). Lanes are used to organize and categorize activities. Pools are used when the diagram involves two separate business entities or participants (see Figure 3) and are physically separated in the diagram. The activities within separate Pools are considered self-contained Processes.
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Artifacts
Artifacts allow process designers to include additional information about the process in the process diagram. Any number of Artifacts can be added to a diagram as appropriate for the context of the business processes being modeled. There are three types of Artifacts, which are: Data Object Group Annotation
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Artifacts (Contd.)
Data Objects are a mechanism to show how data is required or produced by activities. They are connected to activities through Associations.

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Artifacts (Contd.)
A Group is represented by a rounded corner rectangle drawn with a dashed line (see the figure to the right). The grouping can be used for documentation or analysis purposes, but does not affect the Sequence Flow.

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Artifacts (Contd.)
Annotations are a mechanism for a modeler to provide additional text information for the reader of a Business Process Diagram (see the figure to the right).
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Example - Business Process Diagram (BPD)

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Example - Business Process Diagram (BPD)

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Thank You

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