You are on page 1of 17

Field Project Operations Management

Draft an Operational- Flow chart and Process map of any ONE TYPE of organization listed below and critically evaluate the process. 1. 2. Operations in a Manufacturing Sector.

Operations in a Service Sector. a) Financial Sector. i) Non-banking Finance Sector ii) Banking Sector iii) Insurance Sector b) Educational Institutions. i) Technical Education ii) Management Education c) BPO d) Hotel / Hospital Note: 1. Only one group is allowed to do their project in one organization but in different organization in same sector. 2. Submit the group project report- hard copy on or before 10th Feb 2010 to the undersigned. 3. There will be group presentations /discussions on the projects and dates for the same would be intimated later.

Simon Jacob C Faculty Member


What is process mapping?

A process map, or flow chart, is:
Visual representation of a process that can illustrate: What activities are completed, by whom, in what sequence Hand-offs between departments or individuals Internal and external operational boundaries (swim lanes)

Why map a process?

Diagnosis and Improvement. Determine the cause of a problem or condition. Provide a critical assessment of what really happens within an institution.* Requirement. Meet regulator or industry standards, such as ISO certification. Training and Communication. Serve as component of training or operations manual.

Process mapping can be constructed both informally and formally

Informal method is best for getting started and securing buy-in Formal method ensures rigor and accuracy


* Process mapping may also be a first step in other diagnostic analyses such as Activity Based Costing. 2

Sample Process Map for an Individual Lending Process


Close up on the previous process map

Process from the moment the client arrives in the branch of the MFI to the time when the loan officer visits her home and business for the loan assessment


Any institutions processes are impacted by internal and external forces

All work is part of a process External Forces All processes take place in a competitive context

Internal Forces All processes evolve some what over time Organizations can grow beyond their existing processes

What began as a good process may erode over time

What was the right process for the organization is no longer

What was a good enough process may no longer be sufficient to compete and win

Probably few people have ever looked at the process in detail from start to finish


Source: Adapted from Citibank Quality Training for Micro Finance Institutions, 2003; WWB analysis. 5

Example of improvements gained from process mapping at an MFI in East Africa: Equity Building Society
Improvements in Cycle Time Procedure
Account opening Account Opening error rate Cash transaction (Cashier) Cash transaction (Total time) Issuing of Magnetic Cards

Before Process Mapping

12.6 min. 99.5% 1.96 min. 7.14 min. 1-2 months

After Process Mapping

9.78 min. 22% 2.17 min. 4.96 min. 2 weeks

Source: MicroSave work with Equity Building Society.



Overview of process mapping

Process Mapping How To

Lets try this out


Process mapping is a part of continuous improvement

Continuous process improvement -- a deeply rooted capability for continuously defining, analyzing, innovating and improving process both inside the organization, and potentially beyond.

Measure Identify gaps

Implement Changes

Analyze Efficiency & Risk Map process


Define process



Map Processes: Gather data

What methodologies can you implement to gather the data?

Self contained knowledge: This is probably the easiest and quickest way to create a map. Its use however can be limited by the amount of knowledge possessed by the individual and can be substituted through observation of the process and review of manuals or policies and procedures. Internal reports and MIS data: Internal audit reports and performance data (by product, by branch, etc.) are important sources of information. Informational interviews One on one interviews with persons involved in the process both directly and indirectly will help in creating a draft of the process. This again can be verified through observation as well as review by an individual who is knowledgeable about the process. Group interviews can include a sample of individuals or all of the relevant individuals involved in the process. The goal is to map the process together with them. This process works well in the presence of a skilled facilitator. Observation: This is an important complement to informational interviews


Process maps or flow charts are composed of a relatively standardized set of symbols
Standardized symbols enable the map to clearly, visually display what happens in a given process. The most common symbols include:
= Start or stop point = Processing step or task = Decision point or checkpoint = Queue or wait point = Form or documentation = Information sent to MIS However Keep the overall number of different symbols in a map as limited as possible to prevent confusion Avoid being hampered by nomenclature. Choose what works best for your institution.


Constructing process maps: Tips of the trade

There are range of different ways to do process mapping. In general, you should pick the level of rigor and detail that is appropriate for your purposes. For this training, we will employ a fairly high level of rigor. Develop draft maps early and revise often. Post-it Notes may be useful in the first iteration. Beware of confusing the ideal process, as detailed in manuals, with the real process, as found in the field. Expect processes to vary on the ground. Time to construct maps will depend primarily on 1) the number of processes you want to map, 2) the degree of variation in processes in the institution, 3) the strength of secondary materials such as MIS data and manuals Ultimately, process maps are most useful when you are able to benchmark your processes against those of competitors or international best practice. Investigate ways to use network relationships to benchmark processes.


Analyzing the process maps

Analyze process for non-value added steps.

In analyzing process maps, look for Process inefficiencies such as delays, rework, rejects, etc. Wide separation of decisions from work activity Frequently repeated steps Shared responsibility among several people Excessive control points such as numerous layers of approval Questions to ask: What value does this activity add? Which stakeholder benefits? Does the client care enough to pay for it? Actions that can be taken Combined Run in parallel rather than serial Completed faster or with reduced labor costs through automation Eliminated




Overview of process mapping

Process Mapping How To

Lets try this out



Exercise: Analyzing Process Maps


To practice analyzing process maps and making choices based on the results of mapping


Take five minutes to review the Sample Group Lending process map handout. Consider the strengths and weaknesses of the process. What aspects do you consider efficient? Why? What aspects do you consider inefficient? Why? Discuss in plenary.



Handout: Sample Group Lending Process Map

Simplified process map from group formation to loan disbursement for institution employing a group lending methodology.
Prior Activities
Area Selection to locate Branch

Group Formation and Training

Between 1 and 3 months
LO goes to clients homes to recruit, assess, explain

Loan Application
Week 1 Week 2 After GRT
Center mtg Group proposes loanee to center LO visits houses 2 members apply for loan LO fills out application LO brings application form to Branch

Loan Disbursement
Week 5-6
2nd pair of loans disbursed

Week 3-4
1st pair of loans disbursed

Week 7-8


Group formed Training and Memorization of Rules Group Test

Projection Meeting

1 week of mandatory savings

2 more members apply

last member applies

last member receives loan

Internal Processes

HO decides where to locate branch

Loans disbursed at branch

Projection meeting held by HO staff

Group Test given by HO staff or other BM

BM signs and sends to HO Scoring Several unit mgrs approve, send back to BM

By examining the levels of approval that are necessary for each loan, we can evaluate the efficiency of this institution
Loan applications go through 6 levels for approval from the group up across functional areas in the Head Office
General Body Executive Committee Executive Directors Office

Finance Unit

Internal Audit




Micro Enterprise

Information Tech

Women in Development

Zonal Manager

Branch Manager

Loan Officer


5-member group


When compared with a local competitor, this institution does not fair well
Our Institution Competitor

While loans at our institution go through 6 levels for approval; there are only 3 at a competing institution. The time application to disbursement for 5 members is about 67 weeks at our institution and only 1 week at the competitor.

Disbursement at branch by BM Zonal Manager approves Finance Manager approves

HO approves HO staff scores applicant Branch approves LO reviews and approves Center approves loan applicants 5-member group proposes 2 members


taken from

BM reviews and approves LO reviews and approves 20-member group approves 5 members apply for loan