(BMB OM02) Unit 2: Business Process Mapping and Modeling

Business Process Mapping and Modeling

Business Process Mapping

It means visually representing how a process works — step by step — showing who does what, when, and how. It helps managers see the workflow clearly, identify gaps, and find ways to improve efficiency. Example: A flowchart showing how a customer order moves from “Order Received” → “Payment Processed” → “Product Shipped.”

Business Process Modeling (BPM)

It goes a step ahead of mapping. It uses symbols, charts, and diagrams to analyze, simulate, and redesign processes for improvement. BPM focuses not just on how the process works today, but how it should work in the future. Example: Using software (like Bizagi or Lucidchart) to create a model that shows a faster and automated version of an order process.

Objectives of Process Mapping and Modeling

Objective	Explanation (in simple terms)
Understanding Current Processes	To visualize how work is being done right now.
Identifying Inefficiencies	To find delays, waste, or unnecessary steps.
Process Redesign	To make processes faster, cheaper, and better.
Communication Tool	Helps employees and managers understand workflows clearly.
Training and Standardization	Useful for training new employees and setting process standards.

Tools and Techniques for Business Process Mapping and Modeling

Tool / Technique	Description (in simple language)	Example / Use
1. Flowchart	Simple diagram showing steps in a process using arrows, boxes, and decision symbols.	Order-to-delivery process.
2. SIPOC Diagram	Stands for Suppliers, Inputs, Process, Outputs, Customers — gives a high-level view of a process.	Used in Six Sigma for defining process boundaries.
3. Value Stream Mapping (VSM)	Shows material and information flow to identify waste and delays.	Used in manufacturing and lean management.
4. Business Process Model and Notation (BPMN)	A standardized graphical method to model complex business processes using special symbols.	Used in IT and automation workflows.
5. Swimlane Diagram	Divides process steps into lanes representing departments or people to show responsibility.	Helps avoid confusion about who does what.
6. Data Flow Diagram (DFD)	Focuses on how information/data moves within a system.	Common in IT systems design.
7. Gantt Chart	Timeline chart showing process activities and their deadlines.	Used for process planning and scheduling.
8. Cause-and-Effect (Fishbone) Diagram	Identifies root causes of process problems.	Used for quality control.
9. Process Simulation Tools	Software that allows you to test different versions of a process before implementing them.	Tools: Bizagi, ARIS, Lucidchart, IBM Blueworks Live.

Process Documentation

Process documentation means recording all details about a business process, such as:

• Steps involved
• Roles and responsibilities
• Inputs and outputs
• Rules, standards, and exceptions

It acts like a manual or guidebook for how a process should be executed correctly.

Purpose of Process Documentation

Purpose	Explanation
Standardization	Ensures every employee follows the same procedure.
Training	Helps new employees learn processes faster.
Quality Assurance	Maintains consistency and accuracy in work.
Process Improvement	Easy to identify weak points for redesign.
Compliance	Helps in audits and regulatory reporting.

Contents of Process Documentation

Component	Description
Process name and purpose	What the process is and why it exists.
Inputs and Outputs	What goes into and comes out of the process.
Roles and Responsibilities	Who performs which step.
Process Flow (Diagram)	Step-by-step flowchart.
Performance Metrics	KPIs to measure process efficiency.
Exceptions / Risks	What could go wrong and how to handle it.

Process Benchmarking

Process benchmarking means comparing your business processes with best practices from other organizations or industry leaders to identify ways to improve. It helps businesses learn how others achieve better results and adopt similar practices.

Types of Process Benchmarking

Type	Description	Example
1. Internal Benchmarking	Comparing similar processes within your own organization.	Comparing branches of a bank.
2. Competitive Benchmarking	Comparing with direct competitors.	Comparing delivery speed with Amazon.
3. Functional Benchmarking	Comparing with companies having similar functions but different industries.	Studying McDonald’s supply chain for your logistics process.
4. Generic Benchmarking	Comparing broad practices like customer service or order handling across industries.	Learning customer service practices from airlines for a hospital.

Steps in Process Benchmarking

1. Select process to benchmark (e.g., order fulfillment).
2. Identify benchmark partners (industry leaders or top performers).
3. Collect data on their processes and performance metrics.
4. Analyze gaps between your performance and theirs.
5. Develop action plan to adopt best practices.
6. Implement and monitor improvements.

Benefits of Benchmarking

Benefit	Explanation
Encourages continuous improvement	Promotes learning from the best performers.
Improves performance standards	Sets measurable goals based on industry benchmarks.
Boosts competitiveness	Helps achieve cost, quality, and time advantages.
Identifies innovation opportunities	Adopts new technologies and techniques from others.

---

Summary Table

Topic	Meaning / Purpose	Example / Tool
Process Mapping	Visual representation of how a process works.	Flowchart, Swimlane diagram
Process Modeling	Simulation and redesign of business processes.	BPMN, Value Stream Mapping
Process Documentation	Written guide describing steps, roles, and inputs/outputs.	SOPs, process manuals
Process Benchmarking	Comparing with best practices to improve performance.	Competitive benchmarking with Amazon, Toyota, etc.

---

In Short

• Mapping = See how work is done
• Modeling = Plan how to make it better
• Documentation = Write down how to do it
• Benchmarking = Learn from the best

---

Identifying Core and Support Processes

Core Processes

• Core processes are the main value-creating activities of an organization.
• They directly contribute to customer satisfaction and business objectives.
• These processes are often linked to the organization’s mission.

Examples:

• Order fulfillment
• Product/service development
• Marketing and sales
• Customer service

Characteristics:

• High impact on customer experience
• Cross-functional in nature
• Require continuous improvement

Support Processes

• Support processes aid or enable core processes to function efficiently.
• They don’t directly add value to the customer but are essential for smooth operations.

Examples:

• Human resource management
• IT support
• Finance and accounting
• Maintenance and administration

Characteristics:

• Indirectly contribute to business goals
• Help maintain operational stability

Analyzing Process Performance

Analyzing process performance means measuring how well a process meets its objectives in terms of cost, time, quality, and efficiency.

Steps for Process Performance Analysis

1. Set performance metrics (KPIs)

• Time taken per process (Cycle time)
• Cost per unit or transaction
• Error/defect rates
• Customer satisfaction levels

2. Collect data: Use process logs, ERP data, and employee/customer feedback.
3. Compare with benchmarks: Compare performance against industry standards or competitors.
4. Identify gaps: Detect deviations between actual and expected performance.
5. Take corrective actions: Improve resource allocation or redesign workflows.

Identifying Bottlenecks

A bottleneck is a stage in the process that slows down or limits the overall output.
It reduces process efficiency and causes delays or higher costs.

How to Identify Bottlenecks

1. Observe workflow: Identify stages where tasks pile up or take more time.
2. Analyze process data: Use tools like flowcharts, Pareto analysis, or process mapping.
3. Check resource utilization: Overloaded resources (people, machines) may indicate a bottleneck.
4. Monitor waiting time: Excess waiting between steps signals process imbalance.

Example: In an online order system: If the packaging department is slower than order processing and delivery, packaging becomes the bottleneck.

Tools Used

• Process Flowchart – to visualize process steps.
• Value Stream Mapping (VSM) – to identify non-value-added activities.
• Cause-and-Effect Diagram – to find reasons behind poor performance.
• Performance Dashboards – to track real-time KPIs.

Summary Table

Concept	Description	Examples
Core Process	Main value-creating activities	Production, Sales, Delivery
Support Process	Enables core processes	HR, IT, Finance
Process Performance	Measures efficiency and effectiveness	Cost, Time, Quality
Bottleneck	A process step that limits flow	Slow packaging or approval process

Process Innovation vs. Process Improvement

Basis	Process Innovation	Process Improvement
Meaning	Introducing a completely new process or radical change to achieve dramatic performance improvement.	Making incremental or continuous changes to existing processes for better efficiency and quality.
Nature of Change	Radical / Transformational	Incremental / Evolutionary
Objective	To redefine the way work is done for breakthrough results.	To optimize existing processes for gradual improvement.
Focus Area	Innovation in technology, workflows, or business models.	Enhancing speed, cost, quality, or productivity.
Approach Used	Business Process Re-engineering (BPR), Six Sigma Innovation, or Digital Transformation.	Kaizen, TQM, Lean Management, or Continuous Improvement.
Impact Level	High impact – affects entire organization.	Moderate impact – affects specific areas or departments.
Example	Moving from manual order processing to AI-driven automation system.	Reducing order approval time by streamlining steps or training staff.

Key Takeaway

• Process Innovation = Radical change (Revolution)
• Process Improvement = Gradual change (Evolution)

Both aim to increase efficiency, reduce cost, and enhance customer satisfaction, but differ in scale and speed of change.

Evaluating BPR Readiness

Before implementing Business Process Re-engineering (BPR), organizations must assess whether they are ready for such a major transformation. This is known as BPR Readiness Evaluation. BPR Readiness refers to the extent to which an organization has the capability, culture, and resources to successfully carry out re-engineering initiatives.

Key Factors for Evaluating BPR Readiness

Factor	Description	Indicators of Readiness
1. Top Management Support	Commitment from leadership to drive change.	Clear vision, leadership involvement, and willingness to allocate resources.
2. Organizational Culture	Adaptability of employees and openness to change.	Positive attitude, teamwork, and risk-taking culture.
3. IT Infrastructure	Availability of technology to support redesigned processes.	Strong ERP, CRM, or data analytics systems in place.
4. Financial Resources	Adequate funding for training, new technology, and restructuring.	Budget flexibility and cost planning.
5. Employee Readiness	Skills, motivation, and acceptance of employees toward new processes.	Change management programs, communication, and participation.
6. Process Awareness	Understanding of current processes and their weaknesses.	Documented process maps and performance data.
7. Change Management Capability	Ability to handle resistance and lead transformation.	Dedicated change agents or transformation teams.

Steps in Evaluating BPR Readiness

• Conduct readiness surveys – to measure attitude and awareness.
• Assess current process maturity – identify gaps and inefficiencies.
• Evaluate organizational strengths and weaknesses.
• Analyze IT and infrastructure support.
• Prepare a readiness score or report – to decide if the organization should proceed with BPR now or first build capacity.

Summary

Concept	Description
Process Innovation	Radical redesign for breakthrough performance.
Process Improvement	Incremental changes for continuous efficiency.
BPR Readiness	Assessment of organization’s ability and willingness to undertake major process change.
Goal	To ensure successful and sustainable BPR implementation.