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Business Process Value and Waste Analysis

This document provides an overview of business process management techniques for 2022/2023. It describes qualitative process analysis methods including value-adding analysis to identify unnecessary steps, waste analysis to find inefficiencies, and issue registration to document and prioritize weaknesses. Root cause analysis techniques are also covered, such as cause-effect diagrams, Why-Why diagrams, and categorizing factors into the six M's of machine, method, material, man, measurement and milieu. The document provides information on applying these techniques to improve business process performance.

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0% found this document useful (0 votes)
21 views10 pages

Business Process Value and Waste Analysis

This document provides an overview of business process management techniques for 2022/2023. It describes qualitative process analysis methods including value-adding analysis to identify unnecessary steps, waste analysis to find inefficiencies, and issue registration to document and prioritize weaknesses. Root cause analysis techniques are also covered, such as cause-effect diagrams, Why-Why diagrams, and categorizing factors into the six M's of machine, method, material, man, measurement and milieu. The document provides information on applying these techniques to improve business process performance.

Uploaded by

sidra shafiq
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd

Business Process

Management
2022/2023

Frederico Cruz Jesus


fjesus@[Link]

Joana Neves
jneves@[Link]

João Gomes
jgomes@[Link]
Qualitative Process Analysis

Value-Adding Analysis

Objective - detect unnecessary steps in a process with the intention of eliminating them
A step maybe a task in the process, or part of a task, or a handover between two tasks

Value Classification

1- decompose the process into steps (observation, interviewing)


2- identify who is the costumer and what are the positive outcomes that the customer seeks
3- analyze each step in terms of the value it adds – classify the steps

Value Adding (VA) - steps that directly contribute to positive outcomes


Business Value Adding (BVA) - steps that do not directly add value to
the customer but they are necessary for the business are named
Non-Value Adding (NVA) - steps that are neither VA nor BVA

minimize BVA and eliminate NVA 2


Waste Analysis

Waste Analysis
Is the opposite of value-added analysis as the first looks at steps from the positive
perspective whereas the second looks from the negative one.
Objective: find “waste” throughout processes.
Note: some of the waste can take place not within steps but also between them.

Categories Description Sub-types


Move Wastes that are related to movement transportation and motion
Hold Wastes arising from holding something inventory and waiting
Overdo Wastes arising from doing more than is defects, overprocessing,
necessary in order to deliver value to the and overproduction
customer or the business

3
Waste Analysis

Categories Description Sub-types

Move Wastes that are Transportation: Send or receive materials or documents (incl.
related to electronic) taken as input or output by the process activities.
movement Motion: Motion of resources internally within the process.
Common in manufacturing processes, less common in service’s
processes.
Hold Wastes arising Inventory: Materials inventory and Work in process (WIP).
from holding Waiting: Task waiting for materials or input data. Task waiting for
something a resource. Resource waiting for work

Overdo Wastes arising Defects: Correcting or compensating for a defect or error. Rework
from doing loops.
more than is Overprocessing: Tasks performed unnecessarily given the
necessary in outcome of the process; Unnecessary perfectionism
order to deliver Overproduction: Unnecessary process instances are performed,
value to the producing outcomes that do not add value upon completion.
customer or
the business

4
Issue Register

Objective:
➢ maintain, organize and prioritize identified weaknesses (issues)
➢ provide a more detailed analysis of individual issues and their impact
➢ determine how and to what extent each issue is impacting on the performance of the
process

Issue Priority Description Data and Qualitative Quantitative


assumptions impact impact
… … … … … …

An issue register may contain a mixture of issues that have a direct impact business
performance as well as other issues that are causal or contributing factors of issues
that then impact on business performance. In other words, the issue register contains
both issues and factors.

5
Issue Register

Pareto Analysis and PICK Charts

Pareto Chart PICK Charts

Pareto analysis is used to prioritize issues Two-Dimensional Prioritization of Issues

6
Root Cause Analysis

Root Cause Analysis


• a family of techniques to help analysts identify and understand the root cause(s) of
problems or undesirable events.
• is helpful to identify and to understand the issues that prevent a process from
having a better performance.

Why-why diagram

Factors Issue
Cause-effect diagram

7
Root Cause Analysis

Cause-Effect Diagrams
Factors are grouped into categories and possibly also sub-categories. These categories
help to guide the search for potential causes. A well-known categorization for cause-effect
analysis are the so-called 6 M’s:

Machine result from technology used


Method result from the way the
process is designed,
understood or performed
Material result from input materials
or data
Man result from wrong
assessments or incorrect
performance of steps
Measurement result from reliance on
inaccurate or miscalculations
Milieu result from factors outside Dumas, et al. (2013)
the scope of the process
8
Root Cause Analysis

Why-Why Diagrams

Are a technique for structuring


brainstorming sessions (e.g., workshops) for
root cause analysis
Objective: analyze the cause of negative
effects, such as issues in a business process.
The basic idea is to recursively ask the
question: Why?
This question is asked multiple times until a
factor that stakeholders perceive to be a
root cause is found.

Dumas, et al. (2013)

9
Thank you!

Address: Campus de Campolide, 1070-312 Lisboa, Portugal


Tel: +351 213 828 610 | Fax: +351 213 828 611

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