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Process Modelling

Learn how to reengineer a process in 6 easy steps.

Step 1 | Identify the Paths

Review the process, and identify each possible process path.

Step 2 | Determine Costs

Determine the weighted average cost of each path.

Step 3 | Compare Costs

Compare the weighted average cost to the activity based cost.

Step 4 | Reengineer Path 1

Reengineer Path 1 by controlling the decision.

Step 5 | Business Case

Build the Business Case.

Step 6 | Publish

Publish the model & communicate the changes to staff.

Business Process Improvement PDF Print E-mail

Our business process modelling solution is a cornerstone service offering in that it represents best practice in the discipline of business process improvement.

Our methodology allows us to map and reengineer processes substantially quicker that traditional approaches and as MS Word and Excel are built into the product, we can produce work instructions, RFI and training materials at the push of a button. No longer do you need to work in multiple different applications.

The toolset enables us to map and model business processes in 3 dimensions. This means that not only do we map the business flow sequence, but we also capture the effort, cost and time behind the business process. With this information we can quickly and easily prepare the business case for change on any, or all of the dimensions of service, cost, and quality.

As an overview of the process improvement methodolgy, consider the following process.  At the detail level it comprises 4 paths.

 

 

Path 1 is the determined by the first decision being taken as a ‘Yes’.

Path 2 is determined by the first decision going ‘No’ and the second going ‘Yes’.

Path 3 is determined by the first decision going ‘No’ and the second going ‘No’ and the third is ‘Yes’

Path 4 is all ‘No’ and results in scrap.

 

Path analysis is important is because it directly affects the company cost and pricing models. Consider the following table:

 

There are times that the process output may cost $100 and there are times it may cost $200 or $300. But on average it will cost $169. If the process could be improved using workflows or other IT solutions, so that 100% of the volume moves through path 1, then this would produce a savings of $69.00 ($169.00 - $100.00) per process run. If we assume that the process is run 10,000 times a year, then this is a savings of $690,000. We recognise that it is difficult to reduce the process to 1 path and we use the methodology to build scenarios to reduce the number of paths as much as possible. This reduces direct processing costs and indirect costs such as training and recruiting requirements.

Please see the outsourced process improvement service offering as a supporting service line.

The methodology is auditable and suitable for all process types. Please call for a no strings attached conversation.

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