Professional Documents
Culture Documents
Draft an Operational- Flow chart and Process map of any ONE TYPE of organization listed below and critically evaluate the process. 1. 2. Operations in a Manufacturing Sector.
Operations in a Service Sector. a) Financial Sector. i) Non-banking Finance Sector ii) Banking Sector iii) Insurance Sector b) Educational Institutions. i) Technical Education ii) Management Education c) BPO d) Hotel / Hospital Note: 1. Only one group is allowed to do their project in one organization but in different organization in same sector. 2. Submit the group project report- hard copy on or before 10th Feb 2010 to the undersigned. 3. There will be group presentations /discussions on the projects and dates for the same would be intimated later.
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* Process mapping may also be a first step in other diagnostic analyses such as Activity Based Costing. 2
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All work is part of a process External Forces All processes take place in a competitive context
Internal Forces All processes evolve some what over time Organizations can grow beyond their existing processes
What was a good enough process may no longer be sufficient to compete and win
Probably few people have ever looked at the process in detail from start to finish
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Source: Adapted from Citibank Quality Training for Micro Finance Institutions, 2003; WWB analysis. 5
Example of improvements gained from process mapping at an MFI in East Africa: Equity Building Society
Improvements in Cycle Time Procedure
Account opening Account Opening error rate Cash transaction (Cashier) Cash transaction (Total time) Issuing of Magnetic Cards
Agenda
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Implement Changes
Define process
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3.
Self contained knowledge: This is probably the easiest and quickest way to create a map. Its use however can be limited by the amount of knowledge possessed by the individual and can be substituted through observation of the process and review of manuals or policies and procedures. Internal reports and MIS data: Internal audit reports and performance data (by product, by branch, etc.) are important sources of information. Informational interviews One on one interviews with persons involved in the process both directly and indirectly will help in creating a draft of the process. This again can be verified through observation as well as review by an individual who is knowledgeable about the process. Group interviews can include a sample of individuals or all of the relevant individuals involved in the process. The goal is to map the process together with them. This process works well in the presence of a skilled facilitator. Observation: This is an important complement to informational interviews
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Process maps or flow charts are composed of a relatively standardized set of symbols
Standardized symbols enable the map to clearly, visually display what happens in a given process. The most common symbols include:
= Start or stop point = Processing step or task = Decision point or checkpoint = Queue or wait point = Form or documentation = Information sent to MIS However Keep the overall number of different symbols in a map as limited as possible to prevent confusion Avoid being hampered by nomenclature. Choose what works best for your institution.
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In analyzing process maps, look for Process inefficiencies such as delays, rework, rejects, etc. Wide separation of decisions from work activity Frequently repeated steps Shared responsibility among several people Excessive control points such as numerous layers of approval Questions to ask: What value does this activity add? Which stakeholder benefits? Does the client care enough to pay for it? Actions that can be taken Combined Run in parallel rather than serial Completed faster or with reduced labor costs through automation Eliminated
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Agenda
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Purpose
To practice analyzing process maps and making choices based on the results of mapping
Instructions
Take five minutes to review the Sample Group Lending process map handout. Consider the strengths and weaknesses of the process. What aspects do you consider efficient? Why? What aspects do you consider inefficient? Why? Discuss in plenary.
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Loan Application
Week 1 Week 2 After GRT
Center mtg Group proposes loanee to center LO visits houses 2 members apply for loan LO fills out application LO brings application form to Branch
Loan Disbursement
Week 5-6
2nd pair of loans disbursed
Week 3-4
1st pair of loans disbursed
Week 7-8
Activity
Projection Meeting
Internal Processes
BM signs and sends to HO Scoring Several unit mgrs approve, send back to BM
By examining the levels of approval that are necessary for each loan, we can evaluate the efficiency of this institution
Loan applications go through 6 levels for approval from the group up across functional areas in the Head Office
General Body Executive Committee Executive Directors Office
Finance Unit
Internal Audit
Monitoring
HRD
Health
Micro Enterprise
Information Tech
Women in Development
Zonal Manager
Branch Manager
Loan Officer
Center
5-member group
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When compared with a local competitor, this institution does not fair well
Our Institution Competitor
While loans at our institution go through 6 levels for approval; there are only 3 at a competing institution. The time application to disbursement for 5 members is about 67 weeks at our institution and only 1 week at the competitor.
Time
HO approves HO staff scores applicant Branch approves LO reviews and approves Center approves loan applicants 5-member group proposes 2 members
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Disbursement
taken from
BM reviews and approves LO reviews and approves 20-member group approves 5 members apply for loan
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