Business analysts use process analysis to evaluate a process for its efficiency and effectiveness, as well as the potential for opportunities for change.
Process analysis is used for numerous purposes including:
- Suggesting a more efficient process.
- Assessing the gaps between the current and future state of a process.
- Understanding any components that are to be included in a contract negotiation.
- Understanding how data and technology are being used in a process.
- Assessing the effects of a undecided change to a process.
A number of structures and techniques exist that center on process analysis and improvement methods, such as Six Sigma and Lean.
Other process improvement methods include value stream mapping, statistical analysis and control, process simulation, benchmarking, and process frameworks.
Typical changes made to processes in order to improve them include:
- Reducing the amount of time required to complete tasks in the process.
- Adjusting hand-offs between roles and organizational units to remove errors and reduce or eliminate bottlenecks.
- Automating steps that are predictable such as approvals.
- Increasing any automated decision making needed by the process.
When analyzing a process, business analysts look for the following:
- How the process adds value to the organization.
- How the process lines up with the organizational goals.
- How efficient, effective, repeated measured, controlled, used, and transparent the process needs to be.
- How the requirements for a solution incorporates the future state process.
Process analysis has some components, which include:
1. Identify gaps and areas to improve: Identifying gaps and areas to improve helps to pinpoint areas that are within the scope of analysis.
When identifying gaps and areas to improve, business analysts should do the following:
- Identify gaps between the current and required future state.
- Identify which areas are value and non-value adding.
- Understand the stakeholders and the process problems.
- Understand chances to improve the process from various points of view.
- Identify the process gaps and improve them in line with the organizational goals.
- Understand how potential changes to the organization can reduce or eliminate any process gaps.
2. Identify root cause: identifying the root cause of the process gaps and areas for improvement ensures that the solution fixes the issues.
When identifying the root cause, business analysts should consider the following:
- That there may be numerous root causes.
- The factors which led to the gap.
- Who are the right people who would help identify the root cause.
- The current performance measurements and incentive which have been put in place for those performing the process.
3. Generate and evaluate options: It is important for stakeholders to be involved in identifying the impact, feasibility, and value of the proposed solution relative to the alternative solution options.
Generating alternative solutions to resolve the process gap helps the stakeholders properly assess the solutions.
4. Common methods: There are some common methods used for process improvements and they are:
SIPOC: SIPOC is a process analysis method that has its foundation in the Six Sigma methodology. It is used to analyse the process and understand the Suppliers, Inputs, Process, Outputs and Customers of the process being analyzed.
A SIPOC gives a simple outline of the process. It also shows who and what is involved in creating inputs to the process and shows who receives outputs from the process.
Value stream mapping (VSM): Value stream mapping (VSM) is a process analysis which has its foundation in Lean methodologies.
The value stream maps the time it takes for factors to be inputted, processed and produce an output which is distributed to the customer.
The value stream map provides a one-page picture of all the steps involved in the end-to-end process, including both the value-adding and nonvalue-adding components.
Process analysis has both its strengths and limitations, which include:
Strengths
• It ensures that the solutions improves the process and reduces waste.
• There are numerous techniques that the team can choose from to help with process analysis.
Limitations
• It can be time consuming.
• Due to the numerous techniques and methodologies in process analysis, choosing the right one can be challenging.
• It may prove ineffective at process improvement in decision intensive processes.