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System Planning and Process Control
© Copyright 2004 Craig Cochran
System planning is simply the act of deciding how to define and control the
processes within your organization. All organizations have processes, and all processes
require control. A process that operates without any control produces confusion, chaos,
defects, and errors—all of which are very costly. By defining the processes and
understanding how they relate to one another, we are able to develop effective controls
that help the entire organization to optimize its performance.
First of all, what is a “process”? A process is a set of interrelated activities that
take inputs (information, materials, supplies, whatever), transform them in some manner
(through fabrication, assembly, machining, analysis, creativity, etc.) and produce an
output (goods, services, decisions, actions, designs). An example is the purchasing
process within your organization. Many activities take place within purchasing (Selecting
suppliers, negotiating pricing, defining purchase requirements, communicating with
suppliers, evaluating supplier performance), but they all work toward the same goal:
getting the organization what it needs.
Most organizations have less than thirty major processes. Many of an
organization’s processes are linked, with the output of one becoming the input to another.
One of the key benefits of process management is that it communicates to everyone how
their actions affect others and how the entire organization fits together. Instead of
functional areas working as if they were each independent entities, everyone begins to act
as if they are playing on the same team with the same ultimate objectives. The integrated
control over all your processes becomes your management system.
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Examples of typical process controls include the following:

Procedures

Photographs, pictures, & other graphics

Training

Clearly defined responsibilities and authorities

Automated monitoring

Statistical process control

Work orders and travelers

Measurable objectives

Records

Timely communications and feedback

Calibrated and capable measuring instruments
Simply by virtue of being in business, you’ve done some amount of system
planning and process control. Your system may not be formal, documented, or complete,
but it certainly exists. The trick is to take what you have and turn it into an integrated and
cohesive management system that drives the organization’s overall objectives. Of course,
you’ll probably also need to develop new procedures and controls, but only add these
when you absolutely have to. If a procedure is really not needed in order to be successful,
then don’t establish the procedure. The best management systems are lean and concise.
Your specific business necessities have dictated a number of controls that you
already have in place. For instance, if you handle very sensitive electronic components,
then you’ve probably established procedures and instructions related to the correct
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handling of the components. Likewise, if a particular aspect of your business poses
danger to employees, then training has most likely been established in order to reduce the
risks. These are common sense controls that were probably established without a great
deal of planning or premeditation; you needed to do it, so you did it.
So, everyone has a mixed bag of controls within their system. How does an
organization take an inventory of what they have established for controls and determine
whether it is efficient and effective? One of the clearest paths is by the development of a
process matrix. The process orientation not only forms the foundation for a management
system, it provides a method for day-to-day management. There are a number of different
paths to develop a process matrix, but this is one of the most effective:
1. Brainstorm processes: Assemble a group of experienced individuals who
have a broad understanding of how the organization works. Also include
some newcomers to the organization, in order to introduce some fresh
perspectives. With this group, brainstorm all the major processes that
exist within the enterprise. Don’t try to sanity-check the processes in this
step; just record the output of brainstorming.
2. Trim the list: It’s important to understand that some of the so-called
“processes” that will be brainstormed are really activities. A good sanity
check is to examine if the process is actually a set of simple tasks. If this
is the case, then it’s probably just an activity. Most organizations have no
more than twenty major processes. The more streamlined and concise
your list, he more benefit you’ll get from process orientation.
© Copyright 2004 Craig Cochran
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3. Begin the process matrix: Refer to the example shown at the end of this
chapter. The left-most column of the matrix shows the processes you’ve
identified. List all of the processes in this column. This process matrix
will become one of the most important documents in your organization,
creating a roadmap to all other controls at the process level.
4. Define the process owner(s): The second column of the matrix is process
owner. This is simply the person or persons who have direct
responsibility and authority for the process. Ideally, there would only be
one process owner for each process. Since processes often cross
departmental boundaries, however, there could be multiple departmental
or functional managers who share responsibilities for a part of the
process.
5. Identify the primary activities: This is where you identify the primary
activities that constitute the process. The list of activities will help ensure
that the controls over the process include all the key constituent parts. It
also reinforces the definition of a process as a set of interrelated activities.
6. List the inputs: Every process has inputs that it uses to do its work. The
inputs may come from other processes inside the organization or from
external sources. Defining the inputs allows everyone to understand how
the processes relate to one another, especially when the output of one
process becomes the input of another. Depending of the nature and
criticality of the input, the process owners may decide that the input must
be verified prior to use.
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7. List the outputs: Just as every process has inputs, it also has outputs. The
outputs represent the results of the transformation work at the heart of the
process. An output might take the form of a component, sub-assembly,
final product, report, data, decisions, or anything else that has been
produced. The outputs are the most obvious indicators of the process’s
effectiveness, and many organizations structure monitoring activities
around the outputs.
8. Identify applicable documentation: Most processes will have at least one
document that guides their execution. The documentation may take many
different forms: standard operating procedures, work instructions, flow
diagrams, process specs, etc. Regardless of the type of documentation, the
leaner and more streamlined it is the more likely it is to be used. The “big
honkin’ binder” of procedures is a thing of the past. Smart organizations
utilize simple, visual documentation such as flow diagrams, photographs,
and pictures wherever possible. Listing the documentation within the
matrix makes it clear to everyone what document applies to each process.
It can expose holes in the system and identify where the organization
needs to direct its control efforts.
9. Describe monitoring: Every process is monitored in some way,
sometimes in multiple ways. The monitoring may be qualitative in nature
(such as auditing) or quantitative in nature (such as measuring the number
of errors). Monitoring is often applied to the process outputs, but it can be
applied at any other point in the process, also. Strive to make the process
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monitoring meaningful, not just something being done to satisfy a system
requirement.
10. Define the criteria for effectiveness: What indicates whether the process
is performing adequately? The criteria for effectiveness should provide
unambiguous standards for evaluating the process. Where possible, try to
the tie the criteria for process effectiveness back to the organization’s Key
Measures.
The completed process matrix becomes the roadmap to the entire management
system. It allows personnel to clearly understand how the organization’s processes fit
together, and how each process is managed. The matrix will also indicate where the
management system is incomplete. The exercise can be used by any organization, in any
state of management system sophistication. It is especially helpful to organizations that
are at the beginning stages of system implementation, though.
Many organizations find it helpful to convert the matrix to a graphic flow
diagram. This highlights the sequence and interaction of the processes, and enables
immediate understanding at a glance. Defining the sequence and interaction of processes
is also an ISO 9001 requirement. The process matrix itself can satisfy this requirement,
but the flow diagram supplements the matrix and provides a graphic sanity check of the
analysis leading to the process matrix.
Defining and managing processes trough the use of a process matrix is the first
step in what I would call “process orientation.” True process orientation exists when an
organization structures itself around its business processes, as opposed to structuring
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around functional departments. Organizations have traditionally divided themselves by
activities. If a group of people were doing roughly the same job or working with the same
kind of tools, a department was established. The only problem with this is that the
activities included within this department may or may not constitute a process. Usually,
the department was a subset of the true process. When departmental boundaries and
process boundaries don’t coincide, problems begin to happen. Every department attempts
to maximize its own performance on the micro level, without really understanding how
their activities affect the overall process. Since departments are essentially competing
with one another, there’s no incentive to share resources. Departments tend to horde what
they need and operate on a semi-autonomous basis, almost like a company within the
company. This kind of mentality rarely helps the organization as a whole.
Smart organizations use their understanding of processes to begin a longer
journey, one that leads them to redraw their organization charts around their natural
business processes, instead of around outmoded groupings of activities. This is a journey
that takes many months and sometimes years; sometimes it never happens at all. But the
exercise of constructing the process matrix is a good start down that road. At the very
least, it will heighten everyone’s awareness of how the processes within the organization
are related and how they all contribute to the ultimate success of the enterprise.
In summary, here are the benefits of understanding and managing the
organization’s processes:

A more complete management system: The process matrix provides a
logical starting point for the implementation of any management system. It
also indicates where holes exist within an existing management system.
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
Broadening the perspectives all personnel: Most people have a micro view
of their organization. This is because they focus on their tasks and little
else. Personnel rarely have an understanding of how their tasks and
activities link to other activities, even when they are obviously related. A
true process orientation forces an understanding of how the activities link
and interact with one another. Process knowledge creates a “big picture”
understanding of how the organization works. A complete process matrix
is the first step toward process knowledge.

More efficient use of resources: Processes by definition incorporate
multiple activities. When we manage by processes, we are able to shift
resources around from one activity to another. The competition for
resources that exists when activities are managed in isolation begins to
crumble. Why compete for resources when everyone is playing on the
same team?

Smarter decision making: In an organization that understands and
manages by its processes, decision making is based on what improves the
entire organization, instead of what improves departments or activities in
isolation from one another. People understand how their outputs become
the inputs to other processes, and decisions are always made with the
broader ramifications in mind.

Less need for supervision: Since personnel clearly understand how
activities and processes are related to one another, there’s less need for
close supervision. Personnel need to be supervised when they have a very
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narrow understanding of their actions. Process knowledge overcomes this
obstacle.

Culture of teamwork: an understanding of processes naturally reinforce
teamwork, because everyone can clearly see how the organization fits
together into an integrated whole. The relationships between activities
become obvious and the walls that exist in organizations begin to crumble.
Special thanks to Sue Renda, Lloyd Snively, and Peter C. Chatel of The Coca-Cola
Company for their assistance with this article.
Craig Cochran is a project manager with the Center for International Standards &
Quality, part of Georgia Tech’s Economic Development Institute. He’s an RAB-certified
QMS lead auditor and the author of “Customer Satisfaction: Tools, Techniques and
Formulas for Success” and “The Continual Improvement Process: From Strategy to the
Bottom Line,” both available from Paton Press (www.patonpress.com). CISQ can be
reached at (800) 859-0968 or on the Web at www.cisq.gatech.edu.
© Copyright 2004 Craig Cochran