processing map
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MERPChapter4v3.pptxMODERN ERP
SELECT, IMPLEMENT, & USE TODAY’S ADVANCED BUSINESS SYSTEMS
CHAPTER 4:
ERP and Process Mapping
3rd Edition
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Objectives
Recognize the importance of process mapping
Understand the difference between “as is” and “to be” business processes
Become familiar with process map symbols
Distinguish among the various roles used in process mapping
Know the steps involved in mapping a business process
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Systems Diagrams
Systems diagram (SD) – graphical representation of a system; system – a group of parts that are connected and work together
SD used in business to:
Describe business processes
Assess internal control procedures
Evaluate, design, or change information systems
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The Process Map
Process map – a graphical technique that documents inputs, outputs, activities, and decision points to show step-by-step procedures for a specific business process (also known as cross-functional flowchart or swim lane diagram)
“As is” process map – shows how the process is currently operating; useful for developing requirements for ERP system
“To be” process map – a visual representation of the redesigned process; ERP vendors supply the map
Role – the party responsible for an activity in the process; can be an internal or external entity
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Process Map Symbols and Descriptions
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Benefits of Process Mapping
Defining the “as is” business process and clarifying the changes for the “to be” process; planning for ERP
Determining whether “as is” measures of performance are appropriate and potentially developing new performance measures for the “to be” process
Identifying responsible parties
Highlighting workflow inefficiencies, such as bottlenecks
Understanding where internal controls are or dictating where they should be
Orienting and training new employees or retraining
Serving as an integral part of the company’s policies and procedures documentation
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Gathering Information for the Process Map
Self-generate method – used when the preparer personally knows the process
One-on-one interview method – each person involved in the process is interviewed separately and sequentially
Group interview method – everyone involved in the process is asked to participate as a group to generate the process map
Usually the most effective method
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Process Mapping Roles
Process map facilitator – promotes and focuses the discussions and provides an unbiased, objective point of view
Process owner – responsible for the proper completion of process steps and has authority over the process, its interfaces, and changes that will take place to the process
Subject matter expert – knows the process intimately, providing knowledge and expertise
Process implementer – executes recommendations and implements changes (new procedures, systems)
Process evaluator – tests the “to be” process and implementation change. Helps determine new metrics for the evaluation of the “to be” process
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Steps for Drawing Process Maps
Have a defined purpose for mapping a process and explain it to the group
Identify the scope of the process, without being too broad. Label the scope at the top of each page
Agree on the level of detail to be displayed
Determine the roles participating in the process. These roles are shown as bands across or down the page and are called swim lanes. Swim lanes organize activities into groups based on who is responsible for the steps
Identify the trigger activity – the event that denotes the start of the process. For horizontal maps, the trigger activity should be placed in the top swim lane all the way to the left
Organize the process map so that activities move either to the right, down, or up. Avoid connectors that move to the left
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Steps for Drawing Process Maps
Use active verbs for activity descriptions such as “enter,” “inspect,” or “input.” Activities such as “send” and “receive” can generally be excluded because these activities are represented by the process flow lines
Do not combine steps in an activity using the word “and” to connect more than one verb or action
Write a description of the data or information flow on the process flow line. Sometimes the flow may be a physical flow
Ask questions within the decision points. Label the decision branches with outcomes (for example, “yes” or “no”). Put decision points in the swim lane of the role making the decision
Capture information concerning which information systems of ERP modules support the process
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Tips for Drawing Professional Process Maps
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Process Map Example – Electric City
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Electric City Process Map – Extensions
Business processes can be expanded to show greater detail at lower levels
Greater detail is more likely to identify potential issues
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Fit Gear Bi-Weekly Payroll Narrative
Fit Gear plant employees use a timecard machine to clock in and clock out during a two-week period. At the end of the second week, the receptionist collects the timecards from the plant and makes sure she has the correct number of cards (75 cards for 75 employees) and that they are complete (for example, did someone forget to clock out?).
If there appears to be a problem, she tries to resolve it with the employee. She then corrects the timecard for the employee and gives the timecard data to the plant supervisor. The plant supervisor signs off on hours for all plant employees and returns the cards to the receptionist. The receptionist then enters the time for each employee into an Excel spreadsheet, which is emailed to the payroll clerk.
The payroll clerk enters the bi-weekly time (including sick, vacation, and leave) into the TEMS Payroll System. The payroll clerk also enters any updates to the HR master data (for example, change in address, change in exemptions) into the system.
The payroll clerk prints a payroll register and reviews for correctness. If there are errors, he resolves them in the system. Next, the payroll register is reviewed by the HR manager for correctness. If she finds additional issues, the payroll clerk resolves them in the system as well. The payroll clerk then prints paychecks, and the receptionist distributes them to the plant employees.
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Advanced Process Map Example – Fit Gear
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Advanced Process Map Example – Fit Gear
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Process Issues and Suggested Process Redesigns for Fit Gear
Cycle time could be improved by using self-service for HR master data updates
Payroll clerk should not enter HR master data updates. SoD violation.
It is inefficient to use a manual time card system and then re-enter the time into the TEMS system. Data should be captured once at its source.
Receptionist is performing manual steps and rework; Also there are handoffs
Printing and distributing manual paychecks can lead to internal control problems; old ways
The old way of processing payroll is inefficient.
The payroll clerk does not need an approval from the HR manager. This is SoD violation. This is a non-essential quality control step. Clerk should be empowered to make decisions.
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Figure 4-1: Process Map Symbols and Descriptions
Activity Activities are depicted in process maps with rectangles.
Every process has a series of steps (both value-added and non-value-added)
that help transform inputs into outputs.
Decision point Decisions points are depicted with diamonds.
Processes may involve choices that result in different outcomes.
Process flow line Directional arrows connecting symbols show the flow of data, information,
or physical goods.
Start/Stop An oval should both designate the trigger to the process and any
termination points. There may be multiple termination points if decisions
exist in the process.
<phase>
Phase Often, a process may involve multiple sub -processes that need to be visually
separated to distinguish them.
On-page
connector
When the visual appeal of the map is marginalized, on-page connectors,
represented as circles, are used to reduce clutter. These circles are cross -
referenced using the same letters of the alphabet.
Off-page
connector
When the process map spans multiple pages, a n off-page connector is
used. These connectors are cross-referenced using page numbers.
Figure 4-2: Tips for Drawing Professional Process Maps
Make sure every area of the map contains approximately the same amount of detail.
Take notes while mapping and create a glossary of acronyms so that information generated in the process
mapping session is not lost or later becomes ambiguous.
Ensure that swim lanes retain the same role(s) throughout the map even if the map spans multiple pages.
Terminate the process in the swim lane where the process ends.
Make similar shapes the same size.
Try to collocate those swim lanes that have the greatest number of interactions with each other.
Avoid using names of individuals in process maps as people can come and go. Roles remain more consistent.
Minimize space between symbols. Also, ensure that spaces between symbols are as uniform as possible.
Figure 4-3: Electric City Order-to-Cash Process
Figure 4-4: Detailed Documentation for Deliver Item to Sales Counter
Date August 25
Process Owner Warehouse
Customer Sales Clerk
Step Instructions
1 Retrieve picking ticket from sales clerk .
2 Using MTS900, enter item number into item number field; determine availability of item.
3
If item is not in stock, notify sales clerk. Otherwise, locate and retrieve item using bin
location in warehouse system.
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Tape picking ticket to item and place on carousel “A” for heavy items, carousel “B” for light
items.
Dependencies Warehouse system
Inputs Picking Ticket
Outputs Item to Sales Clerk
Figure 4-5: Fit Gear Bi-Weekly Payroll Process for Plant Employees (Page 1)
Figure 4-6: Fit Gear Bi-Weekly Payroll Process for Plant Employees (Page 2)
