Process Analysis & Redesign
Purpose
2. Reduce Complexity
Once a process has been mapped it must be
analysed for improvement opportunities.
Complexity often arises because of the number
of branches in a process. These are usually
associated with decision points. The more
branches the greater the potential for delays,
rework and checking as well as communication
and decision making difficulties. A complex
process is usually a sign that the input is highly
variable or that the process is trying to do too
much in one sequence. Efficient processes have
minimal complexity.
When to Use it
When the team understands the current process
and is ready to make improvements.
How to Use it
1. Classify Activities:
Activities can initially be classified into Primary
and Secondary activities.
Primary activities are those that contribute
directly to providing a service or product to a
customer, such as signing checks, taking an
order or answering a sales query. Secondary
activities are those that internally support the
primary activities, such as correcting system
errors, training staff or reconciling accounts.
These activities can then be further classified into
value adding and non-value adding activities.
The value of a step is its value to the customer.
The questions in the table help determine
whether an activity is value or non value adding.
Questions
Value
adding
answer
Would the customer notice a loss
in quality or service level if this
activity were missing?
Yes
Would the customer be prepared
to skip this activity if it meant a
price reduction?
No
If this activity is a checking activity,
does it detect many faults?
Yes
In an emergency, could this
activity be skipped?
No
Linkages in a process are the points where
responsibility for the process changes hands. The
higher the number of linkages the more potential
for wasted time, errors, poor communication and
the need for greater coordination and
supervision. In an efficient process, one person
should be responsible. Count the number of
linkages or points where responsibility changes.
4. Eliminate, Combine or Speed-up Activities
From the process map and the data collected
about it, identify opportunities for improvement:
•
eliminate all non value adding steps
from primary or secondary activities
•
minimise secondary activities
•
eliminate any delays in the process
•
eliminate rework loops from the process
•
minimise long cycle times or build ups of
product or paperwork
5. Set Priorities for Improvement Opportunities
Rank opportunities for improvement.
If the answer to any question is different to the
value adding answer then the activity is nonvalue adding and should be eliminated if
possible. For example, if the answer to the first
question was ‘No’, then consider eliminating that
activity (or step of the process).
www.acig.com.au
3. Reduce Linkages.
Criteria for ranking could include for example
potential
for
improvement,
ease
of
implementation and impact on the customer.
This priority list forms the basis for an improvement
plan.
Page 1 of 2
Before
Letter
received by
Records
Need to
record?
Y
Identify Dept
& Officer
Register letter
3
Deliver letter
reduce Director reviews - issue
guidelines for officers
N
Director
reviews
Deliver to
Dept
Clerk marks to
relevant section
head & delivers
Section
off-site?
reduce delays - use E-Mail
Director's
secretary places
in file movement
tray
Y
N
Data
Annual volume 9,000 items
Monthly variation 600 to 950 items
Customers’ perceptions 22%
unsatisfactory
Director marks
to relevant
section
Correspondence response times:
27% < 1 week
reduce paper movements
5
2
Wait for
mail run
Officer actions
5
reduce delays - use E-Mail
47%
1 to 3 weeks
26%
more than 3 weeks
Causes of delays:
4
Site superintendent
passes on to
supervisor
responsible
actioning officers
could draft on PC
- reduce delays
Supervisor
actions
39% held up by other staff
Other sections to
action other
items?
Send for
action
17% sent to wrong person
14% sender late
Wait
Draft letter
Send to WP
5
Review draft
N
OK?
10% wrong file
Response in
writing
required?
Wait
response
8% file elsewhere
send acknowledgement immediately,
say when detailed response will be sent
Revise
N
Y
N
Section head
reviews
OK?
Yes
Director
reviews
OK?
Y
Sensitive
matter?
N
Y
Council
approves?
3
Wait for
Council
meeting
Refer to
Council
1 level of review only issue guidelines on who can decide what
END
FILE
Send
response
After
Mail delivered
to Records
Records
distribute
Section head
reviews &
refers to action
officer
Action officer
drafts
response on
PC
Central
recording/filing
required?
Arrange file
END
Action
Council
decision
www.acig.com.au
Wait
Council
meeting
File
Refer to
Council?
Send
response
Sensitive
matter?
Director
reviews
Page 2 of 2