Process Analysis Tools and Techniques

Process analysis is a fundamental business tool and an essential component of lean operations and Six Sigma projects. Every business operation converts inputs into outputs. The inputs may be raw materials, data, labour time or financial capital, and the outputs may be a physical or intangible product or service.

For example, a manufacturing process may take raw chemicals, mix them and transform them into a new product such as fertiliser. An entire branch of management accountancy known as process costing has developed to measure the financial cost and consequences of this transformation process.

A business process may consist of a customer service representative taking a call, recording a complaint and then passing to an service and warranty department for corrective action. The intangible input of customer feedback is transformed into an output (e.g. a job card and a service appointment) to deliver customer satisfaction.

Process analysis is the science of analysing a business process to ensure that it performs optimally with minimal bottlenecks and maximum productivity. The first step is process mapping, which is the creation of a powerful visual representation of the process. Then the process can be analysed methodically to identify the bottleneck, or the primary constraint that slows the entire process performance and limits the speed at which the total flow can operate.

According to Goldratt's famous Theory of Constraints (1986), the primary focus must be on identifying the botttleneck and then ensuring that the entire process runs at a speed that matches the bottleneck. This is so that no overproduction or waste builds up before the limiting factor. Traditionally on a factory floor, this would be surplus overproduced inventory that piled up awaiting processing while waiting for a machine (the constraint) to become available. In the world of just-in-time and lean production, inventory itself is a form of waste! Only once this sump of waste has been eliminated can the bottleneck itself be "elevated", or improved. This improvement then speeds up the entire process and raises the productive capacity of the whole operation.

There are several types of process map. I have always preferred the "swim lane" approach, whereby each entity involved in the business process has its own "lane" and the business process switches from lane to lane as it develops.

A standard process analysis map, however, is a simple linear flow using the follow standard symbols:

• White square for general process element
• Yellow arrow for an element involving motion of movement
• Inverted yellow triangle for a static process element
• Red "D" shape for a delay, error or wasteful element in the process
• Blue diamond box for a decision (where one or more outcomes are possible)

Microsoft Visio 2010 is one of the best flowcharting software packages in issue and features intelligent templates and dynamic drawings. However the majority of simple flowcharts can be produced in Microsoft Excel.

An alternative type of process flow presentation is the Yamazumi Chart, which is a powerful visual representation of efficiency. It is a stacked bar chart that reveals through colour coding (green, yellow, red) which parts of any business process add value and which are simply bottlenecks or portions of wasted time.

A flowchart is never intended as a work of art, but rather a practical tool that can be used as the foundation for process analysis. A number of metrics, from takt time to rolled throughput yield, can be used to measure process efficiency. Mix and yield variances, of quantity and cost, can also be calculated.

In the structured Six Sigma DMAIC, or "Define, Measure, Analyse, Improve, Control" methodology, a number of Analyse phase tools can be used to assess the root causes of process performance.The Green Belt or Yellow Belt can deploy cause and effect diagrams (also known as fishbone or Ishikawa diagrams), cause and effect matrices, and FMEAs (failure mode and effect analysis). All these lean tools are excellent for discovering not just how a process performs, but why.

The process map is excellent for measuring the world as it is, but the aim of all Six Sigma projects is to increase process deliverables and flow. At this stage a "should-be" or future-state process map is useful to identify how the business operation should be re-designed for optimum performance. The process map is an integral part of any lean Six Sigma Yellow Belt training course.

Process analysis should result in redesigned and more productive systems with greater output, reduced waste and higher levels of consistent quality. The result is a lean office. Once a process has been improved and 5S lean principles are in place, a revised process map can be used as a control device to ensure that the operation stays on target. In the spirit of kaizen or continuous improvement, the process can then be re-assessed to move it along to the next phase of quality performance.

Six Sigma is always a journey, never a destination.

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