Effective Process Mapping for (Business) Improvement & ISO9001:2000

1. Effective Process Mapping for (Business) Improvement & ISO9001:2000 Version K.10.1-UK Oct 03 The High Performance Organisation Ltd Effective process mapping

2. Workshop objectives 1. Understand and apply a process mapping protocol 2. Practice process mapping skills 3. Develop process based performance indicators 4. Review process mapping facilitation skills

3. Outline of the day • What is a process and what is process management? • Proposed process mapping protocol • Process & procedure design • Process measurement and monitoring • Practice • Facilitating process mapping

4. Session one What is a process and what is process management? • Learning points: • To understand what is meant by the term process based management • To be able to put process management in context • To understand the system, process and procedure relationship.

5. What is a process? Transformation activity Inputs Output

6. What could be some inputs to an organisational / business process? What could be some outputs from an organisational / business process? What is a process?

7. What is a process? Materials Procedures and methods Process Products Information Services People Information Knowledge Competence Paperwork Plant or equipment INPUTS? OUTPUTS? ‘don’t get confused with resources & constraints’

8. Process as a series of activities What is a process? Constraints Measure outcomes / results against targets Inputs Resources necessarily used in carrying out the activities

9. What is process management? Process as a series of activities Measure outcomes / results against targets Inputs Learn & improve to Enhance performance

10. But what do we improve? Competence Budget Asset use H&S Culture Process as a series of activities Measure outcomes / results against targets Inputs Teamwork Methods Environment Information sharing Learn & improve to Enhance performance ‘you manage the resources & constraints not just the process itself’

11. System management Customer satisfaction Products& Services Economic Environmental Outcomes / results Inputs Law Regulations Society Learn Change

12. Research indicates that the biggest problem is that managers do not understand the processes they are working in, and therefore cannot manage them Collins, P. (1997), “Using Process Mapping as a Quality Tool” Management Services, Vol. 41, No. 3, pp 24-26. Why process management?

13. Functional Hierarchy vs. Product/Service Flow

14. The problems in organisations often occur between changeovers, when one process step flows to another process step in a different department or to a different specialist ….business processes are like a relay race, with the baton passing from one person to another within the organisation. The Olympic relay team don’t practice running together, they only practice the baton changes! Having only good runners will not get you the gold medal! Why process management?

15. Management system structure multi-level mapping Management System Owner - Director • Measure business performance finance, customer process, innovation ‘the what is done’ • finance, customer process, innovation A process A process Owner – Process Owner • Measure efficiency and effectiveness A procedure ‘the how it is done’ Training Guide Photograph

16. Exercise 1 Group 1 – What is the impact of process management on an organisation? Group 2 – What is system management and how do you incorporate standards into a system? Group 3 – What are the benefits of process and systems thinking to customers and the organisation?

17. Session two The principles of process mapping • Learning points: • To map a business process at the correct level • To understand how and when to use sub-processes • To design processes that can be effectively communicated • To map processes using simple tools and techniques.

18. To map a process • Start by defining the ‘real’ purpose of the process • i.e. what the process is designed to achieve • Define inputs • Define outputs. Then…..

19. Process mapping aims to deliver a pictorial or graphical representation that shows clearly: A number of linked process definitions represented in sequential order Process definitions need ‘active’ verbs which describe activity [delivery of, creation of, completion of, agreeing to, analyzing of etc….] Identification and visibility of process owners Identification and immediate visibility to key functional interfaces The start and end point of each process Use a consistent level of detail across processes. Process mapping

20. Decision Yes No Process Flow Basic process mapping symbols Activity

21. The 7 golden rules of process mapping 1. Time (& process flow) moves from left to right 2. Agree overall process title with start & end points 3. Define critical activities and critical cross-functional interfaces 4. Identify Process Owner 5. Use active verbs to describe process activities and, if possible, define processes in terms of desired outcome. 6. Map using 3 levels (if required) of consistent detail 7. Apply the 80:20 rule – don’t try to map every eventuality

22. Exercise introduction Managing People Managing Money Managing Supply chain Managing Assets

23. Exercise 2 1. In groups develop a draft process map for one of the service delivery processes in hotel’s management system.

24. Questions to Ask? • What difficulties did you have? • What would prevent you from process • mapping effectively? • What questions / issues do you have?

25. Other issues • Can the map be understood in 30 secs? • Can the map be seen easily on a PC screen if needed? • Can other people understand it? • Get the big picture by concentrating on the ‘Yes’s’ first • Is it clear and concise? • Is everyone included? • Are roles and responsibilities defined?

26. Process map: example one DE-ICER MACHINING & HEAT TREATMENT Wait for both batches to be completed. Wait Time (1) 0.0% utilization Assemble items. Take out material Send out. and mark in sets Issue Store Drill out barrel, hone and polish. On batch completion send out. Machinist - Honer (1) 0.0% utilization Turn piston to size. On batch completion send out Machinist - Turner (1) 0.0% utilization Machine Shop De-grease, sand-blast and final de-grease. Heat treat to specification. Batch size - 1000 ‘Comments?’

27. Process map: example two ‘Comments?’

28. Exercise 3 1. In groups map a another process from the Hotel’s management system but not one of the service related (core) processes.

29. Session three Procedure design • Learning points: • To understand when procedures may be required • To understand how to construct procedures and link • them to process activity • To know the mandatory procedures needed for ISO9001:2000.

30. Management system structure: multi-level mapping Management System Owner - Director • Measure business performance finance, customer process, innovation ‘the what is done’ • finance, customer process, innovation A process A process Owner – Process Owner • Measure efficiency and effectiveness A procedure ‘the how it is done’ Training Guide Photograph

31. ISO 9001:2000 Requirements • Documented procedures are required to meet the Standard (see below) • Preventive action • Corrective action • Control of documents • Control of non-conforming product • Control of records • Internal audits.

32. Tips • Start with a verb • Don’t cover more than 1 process activity box • Don’t be concerned with linking, it’s in the process • Don’t need scopes, responsibilities etc. • Use bullet points

33. Exercise 4 1. Prepare a number of procedures for an activity in the process you have designed

34. Session four Process measurement and monitoring • Learning points: • To understand how to link process performance to the • overall organisation • To know how to select the correct key performance indicators.

35. Process based performance indicators • 1. Process performance indicators linked to the purpose of a process • Process performance indicators which measure the outcome of a process in terms of volume, cost, time, safety & quality i.e. business results • A metric, a percentage not a target.

36. Impact on typical scope High Performance Organisations Stakeholder Needs ISO 9004 Customer Needs ISO 9001 Monitor Performance & Improve Business (quality) objectives System KPIs Processes Process KPIs Key performance indicators ‘shaped by the needs of stakeholders & customers’

37. KPI business examples • Number of sales leads / Number of sales achieved • Number of deliveries made on time / Number of deliveries made • Number or value of credit notes raised / Number of orders delivered • Average debtor day • Number of staff leaving within 3 months / Total number of staff • Total sickness and absence days / Total work days available • Number of products not to specification / Total number of products • Number of customers leaving / Total number of customers • Individual customer value / Total number of customers.

38. Process KPIs & ISO9001:2000 Outcome (effectiveness of the process) (efficiency of the process) 8.2.4 – Monitor & measurement of product 8.2.3 – Monitoring & measurement of processes

39. Exercise 5 1. Develop effectiveness and efficiency key performance indicators for the processes you have mapped.

40. Session five Facilitating process mapping • Learning point: • To understand the role of the facilitator.

41. Facilitators role • The facilitators role could include: • Helping the process owner to map the process with others as required • Helping to identify KPIs based on the purpose of the process • Providing training on process and systems management • Not getting involved in the detail of the process but concentrating on • helping create a good process • Applying best practice in business process mapping • Ensuring that a consistent level and ‘feel’ to the process and the system is achieved • Managing the ‘pace’ of the meeting.

42. In summary Build a process based on its purpose Improve the process based on results Ensure the process aligns with organisational objectives Measure performance Against targets Communicate & run the process

43. Session six Skills practice

44. Exercise 6 • Identify a process for your organisation • Map the process from that system • Identify process performance indicators

45. Guidance, advice & support In partnership with The High Performance Organisation Ltd Tel. +44 (0)1604 470837 Email.enquiries@the-hpo.com