3.

ANALYZING
PROCESSES
Sep,2017
CDR( R ) AZHAR NISAR
SYSTEMATIC APPROACH
 Step 1: Identify Opportunities
• To identify opportunities, managers must pay particular
attention to the four core processes:
• (1) supplier relationship,
• (2) new service/product development,
• (3) order fulfillment, and
• (4) the customer relationship.
• Each of these processes, and the sub-processes nested
within them, are involved in delivering value to external
customers.
• Are customers currently satisfied with the services or
products they receive, or is there room for
improvement? How about internal customers?
• Customers satisfaction must be monitored periodically,
• Another way to identify opportunities is by looking at
the strategic issues.
• Do gaps exist between a process’s competitive
priorities and its current competitive capabilities?
• Do multiple measures of cost, top quality, quality
consistency, delivery speed, and on-time delivery
meet or exceed expectations?
• Is there a good strategic fit in the process?
• If the process provides a service, does its position on
the customer-contact matrix seem appropriate?
• How does the degree of customer contact match up
with process structure, customer involvement,
resource flexibility, and capital intensity ?
 Step 2: Define the Scope
• Establishes the boundaries of the process to be analyzed.
• Is it a broad process that stretches across the whole
organization, involving many steps and many employees?
• or Is it a more narrowly bracketed nested sub-process
that is just part of one person’s job?
• A process’s scope can be too narrow or too broad.
• For example, a broadly defined process that outstrips the
resources available, sometimes called “trying to boil the
ocean,” is doomed because it will increase employee
frustration without producing any results.
• As we discussed Operation Strategy for landing at moon in
10 years time and acquiring nuclear capability through
redesigning structure of PAEC.
Step 3: Document the Process
• Documentation includes
• making a list of the process’s inputs, suppliers
(internal or external), outputs, and customers
(internal or external).
• This information then can be shown as a
diagram, with a more detailed breakdown given
in a table.
• The next part of documentation is understanding
the different steps performed in the process,
using one or more of the diagrams, tables, and
charts we will discuss / described later
Step 4: Evaluate Performance
• It is important to have good performance measures to evaluate a
process for clues on how to improve it.
• Metrics are performance measures for the process and the steps
within it.
• A good place to start is with competitive priorities, but they need
to be specific.
• The analyst creates multiple measures of quality, customer
satisfaction, time to perform each step or the whole process,
cost, errors, safety, environmental measures, on-time delivery,
flexibility, and the like.
• Once the metrics are identified, it is time to collect information
on how the process is currently performing on each one.
Measurement can be rough-cut estimates or quite extensive.
• Techniques for analyzing wait times and delays can provide
important information e.g. Waiting Line models
Step 5: Redesign the Process
• A careful analysis of the process and its performance on
the selected metrics should uncover disconnects, or
gaps, between actual and desired performance.
• Performance gaps can be caused by illogical, missing, or
extraneous steps. They can be caused by metrics that
reinforce the silo mentality of individual departments
when the process spans across several departments.
• The analyst or design team should dig deep to find the
root causes of performance gaps. Using analytical and
creative thinking, the design team generates a long list
of ideas for improvements. These ideas are then
 Step 6: Implement Changes
• Implementation is more than developing a plan and
carrying it out.
• Many processes have been redesigned effectively,
but never get implemented.
• People resist change: “We have always done it that
way” or “we tried that before.”
• Widespread participation in process analysis is
essential, not only because of the work involved
but also because it builds commitment.
• It is much easier to implement something that is
partly your own idea. In addition, special expertise
may be needed
 Documenting the Process
• Flowcharts
• Process Charts
• Data Analysis Tools
• Checklists
• Histograms and Bar Charts
• Pareto Charts
• Scatter Diagrams
• Cause-and-Effect Diagrams
Flowcharts
Flowcharts
Flow charts
Service Blueprints
• A service blueprint is a special flowchart of a
service process that shows which steps have high
customer contact.
• It uses a line of visibility to identify which steps are
visible to the customer (and thus. more of a front-
office process) and those that are not (back office
process).
Service Blueprints
 Flow Diagrams

Discuss needed
Customer drops Mechanic makes
work with
off car diagnosis*
customer*

* = Points critical to the success of the service

Figure 3.7
Flow Diagrams
Repair authorized

Discuss needed
Customer drops Mechanic makes
work with
off car diagnosis*
customer*

Repair not authorized

Customer
departs with
car

* = Points critical to the success of the service

Figure 3.7
Flow Diagrams
Service visible to customer
Repair authorized

Discuss needed
Customer drops Mechanic makes
work with
off car diagnosis*
customer*

Repair not authorized

Customer
departs with
car

* = Points critical to the success of the service

Figure 3.7
Flow Diagrams
Service visible to customer
Repair authorized Parts available

Discuss needed
Customer drops Mechanic makes Check
work with Perform
off car diagnosis* parts availability†
customer* work†

Parts not
available

Order parts
Repair not authorized

Customer
departs with
car

* = Points critical to the success of the service

†
= Points at which failure is most often experienced Figure 3.7
Flow Diagrams
Service visible to customer
Repair authorized Parts available

Discuss needed
Customer drops Mechanic makes Check
work with Perform
off car diagnosis* parts availability†
customer* work†

Parts not
available

Inspect/ test
Order parts
Repair not authorized and repair

Corrective work
necessary

Customer Repair complete Perform

departs with corrected work
car

* = Points critical to the success of the service

†
= Points at which failure is most often experienced Figure 3.7
Flow Diagrams
Service visible to customer Service not visible to customer
Repair authorized Parts available

Discuss needed
Customer drops Mechanic makes Check
work with Perform
off car diagnosis* parts availability†
customer* work†

Parts not
available

Inspect/ test
Order parts
Repair not authorized and repair

Corrective work
necessary

Customer Repair complete Perform

departs with corrected work
car

* = Points critical to the success of the service

†
= Points at which failure is most often experienced Figure 3.7
Flow Diagrams
Service visible to customer Service not visible to customer
Repair authorized Parts available

Discuss needed
Customer drops Mechanic makes Check
work with Perform
off car diagnosis* parts availability†
customer* work†

Parts not
available

Inspect/ test
Order parts
Repair not authorized and repair

Corrective work
necessary

Customer Repair complete Perform

Collect Notify customer
departs with corrected work
payment
car

* = Points critical to the success of the service

†
= Points at which failure is most often experienced Figure 3.7
Swim Lane Flowcharts
• A visual representation that groups functional
areas responsible for different sub-processes
into lanes. It is most appropriate when the
business process spans several department
boundaries.
Swim Lane Flowcharts
 Process Charts
• A process chart is an organized way of documenting all
the activities performed by a person or group of people
at a workstation, with a customer, or working with
certain materials.
• It analyzes a process using a table, and provides
information about each step in the process.
• In contrast to flowcharts, swim lane flowcharts, and
service blueprints, it requires the time estimates.
• Often it is used to drill down to the job level for an
individual person, a team, or a focused nested process.
• It can have many formats.
 Categories
• Operation: Changes, creates, or adds something. e.g.
Drilling a hole, serving a customer
• Transportation: Moves the study’s subject from one
place to another also called materials handling. The
subject can be a person, a material, a tool, or a piece of
equipment e.g. Customer walking from one end of a
counter to the other, crane hoisting a steel beam to a
location, conveyor carrying a partially completed
product from one workstation. It could also be the
shipment of a finished product to the customer or a
warehouse.
• Inspection: Checks or verifies something but does not
change it e.g. Getting customer feedback, weighing a
product, taking a temperature reading .
• Delay: Occurs when the subject is held up awaiting
further action e.g. Time spent waiting for a server;
time spent waiting for materials or equipment;
cleanup time; and time that workers, machines, or
workstations are idle.
• Storage: Occurs when something is put away until
a later time. Supplies unloaded and placed in a
storeroom as inventory, equipment put away after
use, and papers put in a file cabinet are examples
of storage.
Process Charts
DATA ANALYSIS TOOLS

• Checklists
• Histograms and Bar Charts
• Pareto Charts
• Scatter Diagrams
• Cause-and-Effect Diagrams
DATASHEET

• DEFINITION
• Data entries in a table of rows and
columns or on single cards.
• PURPOSE
• To organize, manage, and track data.
• To calculate relationships between data.
Check List
HISTOGRAM

• DEFINITION
• Frequency distribution, drawn as
proportionally sized bars.
• PURPOSE
• To compare distributions.
• To determine means and modes.
• To identify population control limits,
mixtures, abnormality, or errors.
 Histogram
 Compares distributions., determines means and modes
 Identifies population control limits, mixtures, abnormalities
BAR CHART

• DEFINITION
• Data points drawn as proportionally sized,
side-by-side or stacked bars….
• PURPOSE
• To compare distinct (non continuous) items.
 Bar Chart
 Compares distinct (non-contin.)items
 PARETO CHART
• DEFINITION
• Data points drawn as proportionally sized bars and
ranked by relative size, with or without a line indicating
cumulative total with the addition of each item.
• PURPOSE
• To break down broad causes into smaller categories
• To identify the vital few and the trivial many for efficient
problem-solving.
 Pareto Chart
 Bk. down broad causes into smaller category.
 Helps you to identify the vital few and the trivial many
for efficient problem-solving
RUN CHART

• DEFINITION
• Data points in time sequence, connected by
a line, with or without a filled area below the
line.
• PURPOSE
• To determine trends over time.
 Run Chart
 Determines trends over time
SCATTER CHART

• DEFINITION
• Multiple pairs of data plotted as points with
or without a regression line (straight line
that is the line of best fit for the data).
• PURPOSE
• To analyze the correlation, if any, between
two variables.
• To predict future relationships based upon
past correlations.
 Scatter Chart
 Analyzes the correlations, if any, between variables
 Predicts future relationships based upon past correlations
CAUSE & EFFECT DIAGRAM

• DEFINITION
• The relationships between a quality characteristic
(effect) and the factors that contribute to it
(causes).
• PURPOSE
• To find potential factors (causes) for a critical
effect.
Cause & Effect Diagram
Money is not part of this
diagram

Method Machine
Bi
g Bo Medium Bone
ne
Backbone Poor
barbecue
Quality

Small Bone
Fine Bone
Man Material
 Cause-and-effect diagram for poor barbecue quality
Condiment Meat
Not well thawed
Consistency
Amount Type
Salt Poor marbling
Content
Spices
Fat Frozen too long
Marinade Not tender
Age
Time Type of cut Grade of meat
Amount
Ingredient Poor
In a hurry On edge barbecue
Clean quality
Mood Wind Oiled
Rain
Attention Rack Starter
Temperature

Watch Position Charcoal

Talk to neighbor
game on Skill
TV
Position Type
Operator Weather Grill Amount
 Cause-and-effect diagram for “why tables are not cleared quickly”

Policy Procedures

Waitress not available

Can’t start clearing
soon enough Waitress spend too much time sorting dishes
in kitchen – less time to clear
Not allowed to clear until entire party
has lef
Waitress must bring check Bottlenecks in kitchen
to desk Takes too long to pay check
No standard training
Credit card machine jams
Empty tables
are not cleared
quickly
Not enough staff at busy times Can’t Clear promptly

Customers drink coffee endlessly

Takes long time to get to kitchen
High turnover
Waitresses don’t care
Kitchen is far from tables
Poor morale

Poor pay
People Physical Environment
SPIDER CHART

• DEFINITION
• The current state plotted on a circle that
represents the desired or optional state.
• PURPOSE
• To visualize and compare the current state against
desired or optimal state.
 Spider Chart
 Visualizes and compares the current state
against the desired or optimal state
PIE CHART

• DEFINITION
• Percentages of a whole, depicted as proportionally
sized slices of a round pie.
• PURPOSE
• To visualize the proportions and relative
importance of contributing items.
 Pie Chart
 Visualizes the proportions and relative
importance of contributing items
DIY Assignment#2

Ch-4, (view/ solve all solved

examples yourself ),

Page-165, Problems#7,8,9,12
Assignment # 2
 NEXT

4.MANAGING QUALITY
Oct,2017
CDR( R ) AZHAR NISAR
Bar Charts
Pareto Chart
Pareto chart
Cause & Effect /Fishbone/ ISHIKAWA
diagram
BAR CHART
Cause & Effect /Fishbone/ISHIKAWA diagram
Check List
Pareto chart
Learning Curve
Process Charts