Course: Government Process Re-engineering Day 2

1. Course: • Government Process Re-engineering • Day 2 Session 1: Understanding of Process Maps

2. Agenda High Level Process mapping Flowcharting / activity level process mapping Identifying problem / improvement areas

3. What is Governance ? • Process of Decision Making • Process by which decisions are implemented • Process of Review & Monitor • Control

4. What is Governance? Governance comprises • Traditions • Institutions • and processes • that determine how power is exercised, • how citizens are given a voice • and how decisions are made on issues of public concern

5. Objective of Government • A systematic effort to focus on the commitment of the Government towards its Citizensin respects of Standard of Services • Information • Choice and Consultation • Non-discrimination and Accessibility • Grievance Redressal • Courtesy • and Value for Time & Money

6. Business system – A collection of processes Business system is a collection of processes that take one or more inputs and create output that is of value to all stakeholders Processes, not functions, drive a company…. Processes are the key to satisfying customers and stakeholders Business processes move information and / or materials across several units and functions, to accomplish a specific end result

7. Government Processes – Unique Attributes Processes are usually derived from the underlying set of laws and regulations Compliance and control requirements are higher than in business processes, due to increased levels of accountability and need for transparency Changing processes radically might take longer timeframe than in business processed, as it may require legal & regulatory changes

8. Process Mapping – Understanding how things happen “actually” Why processes mapping? • Government service delivery evolves over time • First a good process is established for a small set-up; it is usually efficient and responsive • As the demand for the service grows, more people, functions and hierarchies are involved in a process • Government needs from time to time gradually change the process • Some changes are not always for the better • Everyone tries to do their best but the process evolves over a period of time to the current state (in some cases these are person-specific) • Rich experiences of people are lost when they leave the organization / function

9. Process Mapping – Understanding how things happen “actually” Objectives of Process Mapping • To understand “how do we actually work” as opposed to “how are we supposed to work” • To understand the four attributes of process: • Players • Process flow • Policies, Standards and Responsibilities • Phases with clear start & end-points and process time-lines • To identify the Critical to Process metrics • To identify “Quick Wins” in the process • To understand response time & cycle time • To determine process efficiency • Value-added activities • Non value-added activities • To estimate the cost of the process • The concept of waste

10. Types of Process Mapping • Process mapping can be done at various levels of detail • Value Stream Mapping • Mapping the entire value stream of the process on a single page • SIPOC Map • Mapping the key constituents of the process and their interactions • Flowcharting • Detailed activity / task level graphical representation of the process

11. Sample Value Stream Map: Typical Bank’s A/c Opening Unit Branch Cust 40% 30% FD 60% 10% CA DC Approx 45000 apps/month 60% SB 30% FD 10% CA Cheques MGMT Data Entry QC Doc Verify Sig Scan Mail Room MIS MIS Doc @ Br. HoT: 10 Min HoT: 5 Min HoT: 10 Min HoT: 20 Min HoT: 10 Min HoT: 10 Min TAT: 3 days TAT: 4 Hrs TAT: 1 day TAT: 1 day TAT: 1 day TAT: 1 day SP: 70% SP: 95% SP: 65% SP: 95% SP: 99% SP: 80% 10 Min 10 Min 10 Min 10 Min 20 Min 5 Min 3 days 4 Hrs 1 day 1 day 1 day Value Added time Wait time

12. Value Stream Mapping – Where is it used? Used to analyze the flow of materials and information required to bring a product or service to a consumer Represents the entire process flow in one page Documents Hands on Time (HoT) and Turn Around Time (TAT – total time taken for the activity) Separates value adding and non value adding steps (wait time), and presents opportunities for reducing total process time But the Value Stream Map does not delve into the steps within the sub processes..

13. Supplier – Input – Process – Output – Customer (SIPOC) Map • Why we need SIPOC? • A SIPOC map helps in creating common understanding of the scope of the focused improvement project from an end to end perspective • What does a SIPOC map do? • It provides a visual depiction of how we work & all players & processes involved • A SIPOC map lists: • All the customers • The outputs provided to them • The processes that deliver these outputs • The inputs required to these processes • The suppliers of these inputs

14. Steps in preparing the SIPOC Map • Agree on the Name for the Process • Use a verb + noun format (e.g. making a photocopy) • Define Outputs of the process – tangible things that the process produces • e.g. a document, a railway ticket • Define the Customers of the process – people who receive outputs • Define the Inputs of the process – things that trigger the process and goes into making the output • e.g. filled application form, pre-printed stationery • Define the Suppliers of the process – people who supply the various inputs • Define the sub processes that make up the process – activities that are carried out in converting the inputs to outputs

15. Illustrative SIPOC Map - Photocopying process

16. S I P O C SUPPLIER INPUT PROCESS OUTPUT CUSTOMER A typical list of details that will go into each of the elementsSavings Bank Account Opening process • Vendor for card production • Stationery suppliers • DSAs • Customer information • Product preference • Regulatory/ KYC Norms • AML / Black lists • Welcome letter • Cheque book • Account number card • ATM cum Debit card • TPIN/ IPIN • Individuals • Non-individuals

17. SIPOC Map – Where is it used.. • SIPOC Map is used for obtaining a high level understanding of the process • Helps process owners and those working on the process to agree on the boundaries of the process • Provides a structured way to discuss the process and get consensus on what it involves before rushing off and drawing process maps • Next steps: • Add additional information to the SIPOC Map • Process Purpose statement – why the process exists • Process Owner – single individual with overall process responsibility • Start and end points of the process • Boundaries, Scope and Limitations • Prepare a list of activities from the SIPOC Map – this will form the basis of process mapping

18. A typical list of activities that will go into a SIPOC MapSavings Bank Account Opening process Customer walks in for account opening Application checked at Branch Application received at RPU Branch Process Deliverables generated Doc Checking Indent by RPU • Customer inquires for correct desk • Customer collects form for application • Branch explains product details • Customer submits docs and application Account Opening Customer receives deliverables • Branch receives docs / salesperson collects docs • Branch deposits cheques • Branch sends application form and docs to RPU Generating Deliverables • RPU reviews application and scrutinizes documents • RPU does data entry and opens account in system • RPU indents deliverables Dispatch of Deliverables • Deliverables Team gets indent from system • Deliverables team generates deliverables • Deliverables sorted by location/courier • Deliverables sent to Branch / Customer

19. Flow Diagrams " Draw a flowchart for whatever you do. Until you do, you do not know what you are doing, you just have a job.” -- Dr. W. Edwards Deming.

20. Flowcharting: Mapping the process at an activity level Decision box Terminator Indicates the start or end of a process Indicates a decision (Yes/No) is being taken Process On page Used to specify any activity carried out Used to link within the page Off page Connector Documents Used to link from one page to another Used to specify standards & policies Document the processes in detail, based on process walkthrough For graphical process flow mapping common symbols used are as follows

21. There are additional flowcharting elements that can also be used if required Database Preparation Input / Output Manual Operation Wait / Delay Research Manual Input Forms Storage

22. The Four Field mapping template (1) Phase (2) Standards / Policies / Templates (3) The players involved in the process (4) The actual process activity wise

23. The process of ‘Process Mapping’ • Begin at the first step in the process • Develop the remaining steps in the process • What happens next & why • What decision (Yes / No) is taken • Add any Standards, Policies or Templates that are used • Enter the process step in the row of the player responsible for it • Flow to additional pages using the ‘Off Page’ connector if the entire process does not fit on the page • Add the end point of the process

24. Building a process map contd. • Get a cross-functional team of all front-line process players to participate • Discuss & define the start and end-points accurately • List all the players in field 1 • Start mapping the process activities one after the other clearly marking the flow of the activities with arrows in field 2 • What happens next? • Why? • Decisions (yes/ no, if possible) • Identify/ emphasize wait times • Ground rule – The activity is not an exception & occurs at least in 20% cases

25. Building a process map… (contd.) contd. • Note down the relevant policies (rules governing the process activity), the standards (formats, templates used for the process activity) and any responsibility for the particular process activity in field 3 • Keep building the time-line in field 4 and finish with end-point; mark completion of any phase with distinct end-points • Allocate time for each process activity on the map • All team members must agree on time • Total the time of each activity • Do a reality check – does it make sense? • At the end of each phase, discuss & affix the appropriate process mapping notation

26. Building a process map… (contd.) • Discuss & map process PIEs • Locate process hand-offs & disconnects • Review the process map with peers, management and other players involved • Is the map a true reflection of the As Is process? • Are there additional issues?

27. Sample process map – Railway Reservation Ticket Booking Collect copies of all templates and standards for review

28. Supplementary Information to the flow chart • The following information should be documented along with the flow chart • Time taken for each step (including hands on time and wait time) • Process owner • Actors in the process, and their roles • Pre-conditions, if any (e.g. applicant should be an Indian, residing in the jurisdiction of the RPO etc) • Business Rules, if any (If a previous passport application was rejected, period of time for which the citizen has to wait till next application) • Alternate flows, if any

29. Concerns with Flowcharts • Flowcharts don't work if they're not accurate or if the team is too far removed from the process itself. • Team members should be true participants in the process and feel free to describe what really happens. • A thorough flowchart should provide a clear view of how a process works. With a completed flowchart, you can: • Identify time lags and non-value-adding steps. • Identify responsibility for each step. • Brainstorm for problems in the process. • Determine major and minor inputs into the process with a cause & effect diagram. • Choose the most likely trouble spots with the consensus builder.

30. Once the Flowchart has been made, we need to define the Problems, Issues and Expectations (PIE) with the process • Problems • Non-conformance to defined processes and procedures due to skill gaps, lack of common understanding, resource constraints, etc. • E.g. documentation not completed as per checklist • Issues • Systemic gaps where processes and procedures are not defined or are ill-defined • E.g. giving a loan to 5 family members • Expectations • Expectations that process owners, users and other stakeholders have from world-class best practices • E.g. loan should be given in 2 days

31. What to do with PIEs? PIE Grouping • After generating the PIEs for the process, they are logically grouped • The next step is to brain-storm ‘Quick Wins’ & change possibilities in the process • Key PIEs, especially related to process, are analyzed for root causes • Other PIEs are reviewed in the Improve phase to ensure that the new process addresses all or most of them

32. Sample Process Map with Problems, Issues & Expectations Absence of token system Physical presence required Check done at final stage Manual data entry

33. End of Session