A business process analysis is a methodology that allows you to grasp every detail of the process and build a solid basis for improvement. It is a system used by companies to reach their goals. It is a set of steps to create value for customers. Managers analyze the process and review it. Then the management decides on whether to change the process entirely or change for improvement. Usually, they would go for the latter.
A business organization is composed of business system that contains individual processes. The individual processes are composed of series of tasks or activities. To be able to deliver quality product or service, a business process needed to be utilized. When the company’s process is effective, it will give a positive outcome that the business can benefit from.
With an effective business process, a company will be able to operate at a lower cost, perform at a higher competitive level and improve the bottom line. When the process is not effective or there is no business process at all, it can result in high overhead cost and lower revenues. Business process analysis helps a company to avoid financial setbacks and losses from deficiencies and implement performance improvement.
There are steps that needed to follow to analyze a business process. These steps will help the business to improve in general.
- Identify the Process
- Document the process and Separate the Process by Type
- Analyze the business Process for Signs of Inefficiency
- Create a Team to Analyze the Process
- Create a Flowchart
- Conduct a Brainstorming Session to Come up with Improvements
There are also techniques used by business analysts to conduct a successful business process analysis.
Techniques in business process analysis
The Five Critical Analysis Techniques
1. Gap Analysis
The gap analysis utilizes all the process and uses all the activity information. But if a complete information is not available, this technique is not doable. The complete information must include the following:
– Input – it is something that is consumed by the activity
– Guide – it determines why, how or when an activity occurs but not consumed
– Output – is what’s produced from an activity
– Enabler – what is utilized to perform the activity.
2. Value-Added Analysis
This analysis is the detailed examination of every activity in a process. It determines if the activity contributes to the requirements of the customer or the stakeholder. To add value to the process, the process must have an output that creates value for the customer. The completion of the activity is required to compete for the output. This is to optimize the value-added steps and eliminate the non-value added steps.
3. Root Cause Analysis
The root cause analysis can define a problem by conducting a thorough analysis of the process. This technique uses brainstorming. It helps identify the possible causes and potential effects and impacts to the customer and the stakeholder. It uses the ‘fishbone diagram’ to gather all the data needed. The diagram helps to reflect all the possible causes of the specific effect.
This technique is rarely used and it needs the analyst to observe the process personally. This is one of the difficult technique to used but probably one of the most effective. There is nothing more conclusive than seeing the process with your own eyes.
5. Examining the Experience
A process analysis is not complete without inputs of experience. Organizations have competent and experienced staff that can give input from the experience they had with the process. They are an important element for a process to be a success.