Methodology for PCN Analysis
Developing PCN analysis charts-methodology
The summary of the PCN analysis methodology is based on number of publications (Sampson and
Froehle 2006, Sampson 2012, Sampson 2014) which have been summarised into the procedure
below. The aim is to visualise interactive processes in place process steps appropriate region PCN
diagram.
1. Identify the process to analyse, the unit of analysis is the process or process segment or sub
process. This is not usually an organisation. List the process purpose, start and endpoint.
2. Identify the process entities, one entity will be the customer and the other a
supplier/provider. Several diagrams can be used to create value network to illustrate
customer supplier relationships visualised through process steps.
3. Record the process steps, this will include the start and end points of processes or sub
processes, in most cases the start point will be an identified customer need and the end the
fulfilment of that need.
4. Record the intermediate process steps, process steps between the start and finish are
identified. Process steps are described with a ‘noun’ and ‘verb’ configuration to illustrate
active process steps. Process charting symbols can be used on the diagrams to illustrate the
nature of the process steps. The process steps are joined by arrows indicating direction and
dependency (these may or may not involve product or information flows). These steps can
cross process domains to illustrate interactions or dependencies between entities.
5. Review the process on the diagram, and compare with the observed data and interviewee
comments on process operations. Explore interactive process steps and their location in the
appropriate region diagram (independent processing, surrogate interaction and direct
interaction). Amend process steps if required.
6. Review process diagram with process or manager to validate and confirm.
7. Identify process changes, improvements and strategic process positioning.
Example of a completed process segment for ‘Return Items’
Pearce, S.R., 2016. Self-service systems design for efficiency and effectiveness: an empirical study
(Doctoral dissertation, University of Surrey).
Additional steps to determine value proposition and potential for the customer.
8. Identify the steps where the customer receives benefits (fulfils a need, receives item,
receives benefit), use a symbol () to annotate these steps. Identify steps where the
customer received dis-benefit, non-monetary costs and inconvenience with a symbol ().
These annotations indicate the processes value proposition to the customer. It provides a
way to identify changes to the value proposition or value potential.
9. Identify the steps where the provider receives benefits, (receives benefit, meets a need
always compensated financially) allocate a symbol (+£) to the steps. Where the provider
incurs costs (labour, component costs, capacity etc.) a (-£) is used. The symbols given idea of
the profit of value impact of the process based on its current configuration. Provides a useful
way to determine provider improvements to the process segments.
10. Environmental/layout and other considerations, the chart can also be annotated with other
symbols to illustrate other process step implications and conditions. This can include
physical location, decor, comfort, visibility, environmental impact etc. this accomplishes the
same purpose as service blueprinting (Bitner, Ostrom et al. 2008) to illustrate physical
evidence or other process step implications.
11. Time and Delay, in a similar way to steps 8,9 & 10, PCN analysis can be annotated with time
symbols or precise measurements of process and process step cycle times. This can be used
understand resources, roles, delays and opportunities for reducing cycle times.
Pearce, S.R., 2016. Self-service systems design for efficiency and effectiveness: an empirical study
(Doctoral dissertation, University of Surrey).
Additional steps to comparing/contrasting processes or to design new processes. There are many
additional steps once a basic chart has been developed, these include:
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Comparing the impact of moving from one configuration of process to a different
configuration that involves changes to customer and provider roles.
Understanding the service process outcome for the provider in terms of efficiency,
effectiveness, customisation and economies of scale
Strategic process positioning for competitive advantage, changing value propositions and
visualising service concepts.
Designing new processes and process improvement
Understanding where interactions take place, designing service encounters these
encounters
Pearce, S.R., 2016. Self-service systems design for efficiency and effectiveness: an empirical study
(Doctoral dissertation, University of Surrey).
Bitner, M. J., A. L. Ostrom and F. N. Morgan (2008). "Service blueprinting: A practical technique for
service innovation." California Management Review 50(3): 66-+.
Sampson, S. E. (2012). "Visualizing Service Operations." Journal of Service Research 15(2): 182-198.
Sampson, S. E. and C. M. Froehle (2006). "Foundations and implications of a proposed Unified
Services Theory." Production and Operations Management 15(2): 329-343.
Sampson, S. E. D. (2014). Essential of Service Design and Innovation. Utah, Marriott School of
Management, Brigham Young University.
Pearce, S.R., 2016. Self-service systems design for efficiency and effectiveness: an empirical study
(Doctoral dissertation, University of Surrey).