Process Study & Analysis Report template

1. Executive summary

2. Major Milestones

3. Products and services

4. Present organization structure

5. Present job responsibilities

6. Process flow diagram

7. Past 3 years month-wise sales figure

8. Present employee profile with salary, education, photo, address

9. Any sales promotions done in the past 3 years

10. Any recruitment ads in past 3 years

11. Photo copy of all control document formats

12. SWOT Analysis

13. Introduction to the Process Analysis

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The McKinsey 7S model involves seven interdependent factors which are categorized as either "hard" or
"soft" elements:

Hard Elements Soft Elements

Strategy Shared Values
Structure Skills
Systems Style
Staff

"Hard" elements are easier to define or identify and management can directly influence them: These
are strategy statements; organization charts and reporting lines; and formal processes and IT systems.
"Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and more
influenced by culture. However, these soft elements are as important as the hard elements if the
organization is going to be successful.
The way the model is presented in Figure 1 below depicts the interdependency of the elements and
indicates how a change in one affects all the others.

Let's look at each of the elements specifically:

 Strategy: the plan devised to maintain and build competitive advantage over the competition.
 Structure: the way the organization is structured and who reports to whom.
 Systems: the daily activities and procedures that staff members engage in to get the job done.
 Shared Values: called "super ordinate goals" when the model was first developed, these are the
core values of the company that are evidenced in the corporate culture and the general work
ethic.
 Style: the style of leadership adopted.
 Staff: the employees and their general capabilities.
 Skills: the actual skills and competencies of the employees working for the company.

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 1.DEPARTMENT: PURCHASE (P)

SERIAL ISSUE AREA DESCRIPTION

NO.
1) Person In-charge There is currently no designated person responsible
for purchasing. The driver handles local purchases,
while major purchases are managed by the
accountant and managing director. The absence of
the driver can result in delays in the purchasing
process.
2) Purchase policy Company following the criteria right quality and
right source. And not aware about the right price,
right quantity and right time.

3) Proper procedure There is an absence of an organized system, and

Economic Ordering Quantity (EOQ) has not been
established for each material.
4) Purchase Requisition Dependent on the re-ordering level and material
requirement from the departments. Mentions the
quantity and the time frame. It may also contain
the authorization to proceed with the purchase if
required items are not
available in stock.
5) Selection of the supplier Vendor validation. Inviting quotations (lowest
bidder need not be the best bidder. Based on
quality, accessibility, price, quantity purchased
etc).
6) Purchasing Order Lead Time There is no records of PO lead time.

7) Placing the Purchase Order Negotiation – place of delivery, freight,

insurance, expected time of delivery and
quantity. Rate finalization and approval of the
Person In-charge. Written or electronic
(medium). Over phone, then document it
properly by sending a copy to the supplier.
8) Follow up of the order There is a lack of consistent reminders to the supplier.

9) Receiving and inspection of Who is the in-charge? Checking the quantity

the materials and quality of the consignment.

10) Purchase Entry Delivered products are not properly entered into
the software

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11) Payment against the Timeliness – Advance, on delivery or credit.
invoice/P.O

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 12) P012 Maintenance of the records Filing – Copy of P.O., Invoice etc. in related
departments (purchase, stores, accounts etc).
13) P013 Sound business relation with To maintain a dependable, competent source of
the vendors supply for the uninterrupted flow of quality
goods and services.
P014 Software for Materials Cuts admin costs, shorten length of the
Management purchase cycle, reduce human error, minimize
shortage, simplify order tracking and easier
managing of purchasing budgets by quickly
creating expenditure reports.

4) I004 Stock Register Procedure for issuing materials from store.

Monitoring of movement of goods.
Maintaining issue note.
5) I005 Bin Cards For smaller items as resistors, screws, nails etc.
6) I006 Stock Auditing Comparing physical stock with computer stock.
7) I007 Random Stock Taking To ensure proper stock keeping.
8) I008 Stock Stacking and labeling Racking system, shelf space, space utilization
etc.
9) I009 Demand forecasting Decisions pertaining to bulk buying, movement
and storing. Prevent from stock-out.
10) I010 Finished Inventory Its storage and logistics.
11) I011 Aging Analysis To tackle the issue of dead stock.
12) I012 Wastage Recycle. Sell. By products.
13) I013 Others Zero Stock, Missing stock, Excess Stock etc

3.DEPARTMENT: PRODUCTION (PR)

SERIAL CODE ISSUE AREA DESCRIPTION
NO.
1) PR001 Person In-charge Production supervisor, employees in charge.
2) PR002 Quality policy Quality checklist that contains all the
procedures and methods the company follows
to ensure quality. Quality assurance to be
carried out every day on a number of occasions

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 for efficient and effective production process.
Presence of lab facilities.
3) PR003 Training Evidence for each employee’s training must be
kept. Training calendar for employees.
4) PR004 Safety measures/manual Clear guidelines for ensuring the workers
safety. Training for employees to deal with
emergency situations. All the details have to be
mentioned like how to operate machine, clean
the machine, etc. and this should be
communicated to all the employees. All
production employees, managers, & visitors
wearing personal protective equipment (PPE).
5) PR005 Defined job responsibilities Employee’s awareness of responsibilities.
6) PR006 Customer Requirements* Employees know customer needs. (* - In case
of customized production units).
7) PR007 Product ID Identifying all products and materials in some
manner.
8) PR008 Inspection Criteria Parameters. Manual or automated. R&D.
9) PR009 Nonconforming product They are identified and kept separately.
Planning
10) PR010 Usage of software in Usage of ERP in planning and controlling the
production planning process
11) PR011 Planning and Master Production planning should be done(Using
production schedule Material requirements planning, inventory
planning etc)
12) PR012 Production Lead Time Total time required to manufacture an item,
including order preparation time, queue
time, setup time, run time, move
time, inspection time, and put-away time.
For make-to-order products, it is the time taken
from release of an order
to production and shipment. For make-to-
stock products, it is the time taken from the
release of an order to production
and receipt into finished goods inventory.

13) PR013 Facility Location In case of multiple factories. Locate the factory
in accordance to order in the most cost
effective manner.
14) PR014 Infrastructure Whether the Personnel have the tools/machines
they need as per the market demand.
Equipment maintained in good order.
15) PR015 Material Resource Planning Preparation of material requirement sheet on
(Inventory) basis of sample provided and buyer
specification. Consumption of material is
calculated and cost is estimated.
16) PR016 Capacity planning Take order in accordance to capacity. Capacity
utilization of machinery by increasing the shifts
or other ways. Regular updating of production
capacity.

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 17) PR017 Job & Task Scheduling Preparation of time and action calendar for
each order from order receiving to shipment.
When to start and deadline for each task.
18) PR018 Line planning Preparing detailed line planning with daily
production target for the production line.
Implementation(Production)
19) PR019 Sorting(Japanese 5 ‘S’) Keep only essential tools and parts, and
eliminate what is not required.
20) PR020 Setting in order to flow Arrange the work, workers, equipment, parts,
and instructions in such a way that the work
flows free of waste through the value added
tasks with a division of labor necessary to meet
demand.
21) PR021 Systematic Cleaning At the end of each shift, clean the work area
and restore everything to its place. This ensures
that the workplace is ready for the next user
and that order is sustained.
22) PR022 Standardize Ensure uniform procedures and setups
throughout the operation to promote
interchangeability.
23) PR023 Self Discipline Ensure adherence to rules and procedures to
prevent errors.
24) PR024 Log book for machines Whether there is any log book for the machines
to note down the time of utilization.
25) PR025 Estimating quantity and Estimate daily production. Production runs and
costs of production manpower involvement decide production cost
per unit or weight.
26) PR026 Daily Production Plan What and how much to be loaded into the
production line.
27) PR027 Defined Procedures Can employees locate and follow their job
procedures. Are they defined?
28) PR028 Process monitoring Proper monitoring and thereby actions taken
when process falls outside of limits.
29) PR029 Production Status The method to know the production status of
each item at any point of time
30) PR030 Quality Inspection status Inspection status of all products identified
using quality checklist.
31) PR031 Packaging Innovative, creative and contemporary
32) PR032 Records All production paperwork complete, legible,
and performed at the time work is done.
33) PR033 Maintenance Schedule for preventive maintenance. Person
in-charge and team. Wait for breakdown
maintenance is avoided.
34) PR034 Calibration Measuring instruments regularly calibrated.
35) PR035 Pollution Pollution control issues such as environmental,
noise etc. Ensure that it is regularly checked by
the concerned authority.
36) PR036 Wastage Efficiency of waste management.
37) PR037 Production Meetings Quality circles, improvement, cost control

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 measures, innovations etc – Daily.
38) PR038 Weekly Production Review Target set Vs. achieved

4.DEPARTMENT: SALES & MARKETING (SM)

SERIAL CODE ISSUE AREA DESCRIPTION
NO.
1. SM001 Person In-charge Roles include sales management, product
development, distribution channel
management, marketing communications,
pricing, market research and customer service.
Range from highly analytical (pricing, market
research etc) to highly creative (advertising,
promotions etc).
2. SM002 Team Appropriate executive support. Their quantity
and quality. Target is set for each member.
Presentable. Talk about how we can help you
rather than sell the product.
3. SM003 Training About industry, company, competitors and
product. Selling skills. Tools.
Situation Analysis
4. SM004 Analyzing External factors Economic, social, political, legal and
(macro environment) technological situations in a market.
5. SM005 Analyzing micro Suppliers, market intermediaries and
environment customers.
6. SM006 Market Research Size, trends, characteristics, channels, industry
behavior and customers
7. SM007 Competitor analysis Major competitors, marketing methods,
SWOT, extend of diversification.
8. SM008 Product brand image Customer’s view consistent or not. Active
managing of brand, product and corporate
identity.
9. SM009 Brand Equity Consumers believe that product with a well
known name is better than those with lesser
known names.
10. SM010 Brand Recognition The extent to which the general public (or an
organization's target market) is able to identify
a brand by its attributes.

Marketing Strategy
11. SM011 Marketing Strategy Current strategy followed, does it align to the
business objectives. Planning (view from the
customer’s perspective), monitoring and
evaluation. Presence of all required
information. Incorporate customer feedback.
12. SM012 Market Segmentation Identifying portions of market that are different
from one another. Marketing in terms of
customer needs.
13. SM013 Target Market Consider the size, growth rate and competition

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 of the segment, brand loyalty of the existing
customers, attainable market share, required
market share to break even, company’s sales
potential and expected profit margins in the
segment.
14. SM014 Positioning Setting a distinct impression in the customer’s
mind. Utilizing the product’s competitive
advantage to the maximum.
15. SM015 Budget A sales budget is an estimate of the expected
volume of sales. It is primarily used for making
current purchasing, production and cash-flow
decisions. Sales budgets need to take into
account the risks involved in sales forecasting.
They are, therefore, generally set lower than
the sales forecast.
16. SM016 Communication Effective: internal and external.
Marketing Mix Decisions
17. SM019 Formulating Marketing Mix 7 P’s. Product, price, promotion, place,
physical evidence, process and people.
18. SM018 Product Development Specifying, designing and producing the
process product. USP (Unique Selling Proposition) -
What differentiates the product or service from
other similar products and service? To what
extend the employees are equipped to convey
the USP to customers?
19. SM019 Pricing Decisions Determines product positioning, features,
channel decisions and promotion. Skimming,
penetration, value based, cost plus and cost
leadership.
20. SM020 Place Distribution contracts. Retail, wholesale, mail
order, internet, direct sales, peer to peer and
multi-channel.
21. SM021 Promotional Campaign Personal selling, advertising, sales promotion,
Development direct marketing and publicity. Special offers,
endorsements, user trials, campaigns, joint
ventures etc.
22. SM022 Physical Evidence Related to a service – physical environment,
ambience, spatial layout, corporate branding
(signs, symbols, artifacts etc). Facilities,
infrastructure and service delivery.
23. SM023 Process Uniformity of offering, service delivery and
service consumption.
24. SM024 People Employees, management, organizational
culture and customer service orientation.
Implementation and Control
25. SM025 Advertisements Stand out from competitors. Should be
memorable, effectively targeted, entertaining
and grabbing attention.
26. SM026 Personal Selling Face-to-face selling in which a
seller attempts to persuade a buyer to make

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 a purchase.
27. SM027 Sales Promotion Contests, coupons, freebies, loss leaders, point
purchase displays, premiums, prizes, product
samples, and rebates. Schemes, Offers, Cash
discounts, Stock clearance sale etc.
28. SM028 Direct Marketing Form of advertising that allows businesses to
communicate straight to the customer, with
advertising techniques that can include Cell
Phone Text messaging, email, interactive
consumer websites, online display ads, fliers,
catalog distribution, promotional letters, and
outdoor advertising.
29. SM029 Publicity Exhibitions, event sponsorship etc.
30. SM030 Business development Return on investment. From existing to new
customers, Customer retention rate. Profit
targets. Success rate.
31. SM031 Social Marketing Online, CSR activities.
32. SM032 Change Management Adaptability to new trends.
33. SM033 CRM Rating customer satisfaction, use of feedback
forms. Leads through references.
34. SM034 Sales Plan Written. Sales executive wise and product wise
plans. Highlight quantity, quality and direction
(markets, people etc).
35. SM035 Target Target is set for the sales force as a way of
defining and encouraging sales effort. Sales
targets are often set some way higher than
estimated sales to “stretch” the efforts of the
sales force. Identify criteria (size, revenues,
shape, industry, location, economics, culture
etc). Achievable. New clients or maintain
existing clients. Incentives.
36. SM036 Sales Forecasting Determines employment level required
promotional mix and investment in production
capacity.
37. SM037 Territory Well marked geographically or by client size
(density) in such a way that it negates any
chance for conflict among the sales staff.
38. SM038 Sales Presentation/ Sales To persuade someone or something, with a
Pitch planned sales presentation strategy of
a product or service designed to initiate and
close a sale of the product or service. Should be
brief and precise. Well prepared.
39. SM039 Cold callings Reps generate their own leads.
40. SM040 Marketing communication Standardized form of
presentation/communication by all team
members
41. SM041 Proper Sales Review Measure performance and effectiveness.
Appropriate incentives offered. Daily report is
being sent.
42. SM042 Sales MIS To track sales and aid in decision making.

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 43. SM043 Weekly Sales Meeting To rectify any mistakes and make the process
more effective.
44. SM044 Monthly Sales Meeting To ensure target is achieved.
45. SM045 After sales service To enhance customer satisfaction. A customer
service experience can change the entire
perception a customer has of the organization.

5.DEPARTMENT: ACCOUNTS & FINANCE (AF)

SERIAL CODE ISSUE AREA DESCRIPTION
NO.
1) AF001 Person In-charge May be finance manager or accounts manager.
2) AF002 Proper Procedures To govern a business to obtain optimum profit,
verify compliance with all applicable
regulatory agencies and protect the business
from fraud practices.
3) AF003 Accounting Team and Separation of duties. An employee in
Responsibilities Purchases should not be able to write a check
to the suppliers.
4) AF004 Daily Transaction In general ledger – manual or electronic form.
Documentation Book keeping (Day book, vouchers, receipts)
5) AF005 Petty Cash Cash used for expenditures where it is not
likely to issue a cheque.
6) AF006 Bank Reconciliation Compare bank balance with that of the
company accounts.
7) AF007 Software used Tally, SAP or customized.
8) AF008 Cash flow statements Income/expense proofs and cash flow
statements
9) AF009 Budgets and Financial Measure financial health. Balance sheet,
Statements income statement, statement of owner’s equity
and statement of cash flow – reviewed for
accuracy, completeness and compliance.
10) AF010 Age Analysis Analysis which is used to calculate
the average number of days taken by the
company to collect payments from the
customers.
11) AF011 Expense approvals Cash or check – controlled by approval
authority.
12) AF012 Major Contracts Agreements to be reviewed to ensure
contractual obligations are met (leases,
purchase & sales agreement, insurance policy
etc).
13) AF013 Trial Balance Documentation of balances for accounts
receivable and accounts payable. Inventory
and fixed assets should be confirmed by item,
quantity and value, with verification of
periodic cycle counts to confirm accuracy

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 throughout the year. Cash balances should be
confirmed through reconciliation with bank
statements.
14) AF014 Sourcing of funds How they find fund sources. Investors or loan
or OD etc.
16) AF016 Financial status Present position of the business.
17) AF017 BEP Attained or not. Major step towards
profitability.
18) AF018 Turnover Monthly, yearly or per day sales
19) AF019 Profit How much is the Gross and net. Are they able
to calculate it properly? What makes it
20) AF020 Costing Calculating the company's costs of production
by assessing the input costs of each step of
production as well as fixed costs such as
depreciation of capital equipment.
21) AF021 Cost control measures Reducing or managing business expenses.
22) AF022 Daily Financial Summary Direct to the proprietor/ MD. Covers daily
Report expenses, turnover, a/c payable and receivables
etc.
23) AF023 Statutory Requirements Bylaw and meeting minutes, Regulatory
Compliance - Regular auditing. Filing of taxes.

6.DEPARTMENT: HUMAN RESOURCE (HR) & Administration

SERIAL CODE ISSUE AREA DESCRIPTION
NO.
1) HR001 Person in-charge Any person who is in charge of the HR and
admin activities
2) HR002 Employee profile file No. of employees and their location, Full
Time/Part Time etc. Their full details
3) HR003 Role of HR function Areas that require HR advise, where HR
exercises control, HR services.
4) HR004 Reporting At corporate level, divisional level etc.
Daily, weekly and monthly.

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5) HR005 HR Budget Number of employees projected for next year,
Benefits cost increases or projections,
Projected turnover rate, Actual costs incurred in
the current year, New benefits/programs
planned, Other changes in policy, business
strategy, law or regulation that may impact
costs, HR revenue (via consulting, savings
[from compensation, benefits, turnover
reduction, training costs, rent etc.).

6) HR006 Planning Mechanism Strategic, long-range and operational plans.

Involvement in company planning activities.
Workforce planning followed.
7) HR007 Quality of staff Total quality of the staff in the organization.
8) HR008 HR Policy Manual Whether there is a properly defined HR Policy
manual and it is communicated to the
employees. Whether the management and
employees follow the same?
9) HR009 HR Strategy Strategies on retention, promotion of
employees.
10) HR010 Recruitment Identifying future needs, procedure, sources
used, priority to current employees, preliminary
screening of the employees and proper
documentation.
11) HR011 Selection By whom, Trained interviewers, interview
process, documentation.
12) HR012 HR Documents and whether HR forms, documents are available for
templates leave application, and other procedures
13) HR013 Training & Development Employee orientation, formal training if any,
average period an employee stays in the
company. Staff development programs.
14) HR014 Attendance Register, attendance management system.
15) HR015 Payroll/ Salary Sum of all financial records of salaries for an
employee, wages, bonuses and deductions.
16) HR016 Reward/incentive system Administered by whom, health and welfare
benefits. Reimbursement of expenses.
Incentives and other benefits. Decision on pay
increment.
17) HR017 Employee Compensation Different policy groups: management, clerical
and union.
18) HR018 Performance appraisal Performance measurement and evaluation –
process used (360o, peer evaluation, by
supervisor). Benchmarks used. Any critical
skills shortages.
19) HR019 Termination Exit interviews. Contracts. Pension and
Retirement.
20) HR020 Industrial Relations Unions, agreements existing & its expiry,
grievances per year, any outstanding grievances

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 21) HR021 Legal issues & Labour laws Labour laws (ESI, PF, working time etc),
processes in place to manage compliance issues
for all relevant jurisdictions, any outstanding
litigation?
22) HR022 Power & Politics Disciplinary actions. Discrimination and
employee rights.
23) HR023 Employee Motivation Through training, incentives etc.
24) HR024 Employee Relation Proper communication to and from the dept.

etc.

7. PROJECTS (INDUSTRY SPECIFIC) (PJ)

SERIAL CODE ISSUE AREA DESCRIPTION
NO.
1. PJ001 Proper Documentation of:
PJ001.1 Team Structure
PJ001.2 Scope Statement
PJ001.3 Business Requirements
PJ001.4 Project Plan
PJ001.5 Milestone Report
PJ001.6 Meeting Minutes
PJ001.7 Action Items
PJ001.8 Status reports
2. PJ002 Time Schedule Time management evaluation.
Projects are time bound.
3. PJ003 Project Budget Through variance analysis which
compares a budget's financial
estimations against the actual project
expense.
4. PJ004 Quality Control As a continuous sequence throughout
the project.
5. PJ005 Project review meetings
6. PJ006 Usage of software
7. PJ007 Targeted deadline Vs Actual

8. OTHERS (O)
SERIAL CODE ISSUE AREA DESCRIPTION
NO.
1. OT001 Research & Development Of great importance in business as the level of
competition, production processes and methods
are rapidly increasing.
2. OT002 Style of Management Characteristic ways of making decisions and
relating to subordinates.

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 OT002.1 Top Direct participation by the highest
management level executives in a specific and critically
involvement important aspect or program of an organization.

OT002.2 Decision Fast and precise.

making ability
OT002.3 Knowhow of Knowledge on the product or service delivered.
domain
OT002.4 Management To get things done, develop staff, improve self
Skills and succeed.
OT002.5 Vision & Value of the founder and properly
Mission communicated with the employees.
Statement
OT002.6 Yearly Goals Goal oriented planning by the management.
3. OT003 Strategy Calendar Importance of planning

4. OT004 Organization Structure Decides task allocation, coordination and

supervision.
5. OT005 Coordinating Software ERP/ SAP

Categories: Restructuring(structure and staff), Responsibility and reporting formats(system), Target

setting(shared value), Marketing Strategy(strategy), HR strategy(strategy)
,Infrastructure(strategy),Training(skill),Management style(Style)

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