Process management and process modeling

Summary

In this article, principles and concepts of process management are reviewed. Later, reference is made to the IDEF0 method of graphical representation of processes, summarizing the advantages and disadvantages it poses. Finally, the syntax and semantics of a process modeling methodology defined by the author are presented.

TRADITIONAL MANAGEMENT AND PROCESS MANAGEMENT

Historically, organizations have been managed according to Taylorist principles of division and specialization of work by departments or differentiated functions.

Organizational charts establish the organizational structure and designate these functions. This type of diagram clearly defines the hierarchical relationships between the different positions in an organization (chain of command). However, an organization chart does not reflect the operation of the company, responsibilities, customer relationships, strategic or key aspects, or information and internal communication flows.

This departmentalized vision of organizations has been the source of various problems and criticisms due to:

The establishment of local or individual objectives, sometimes inconsistent and contradictory with what the organization's global objectives should be, The proliferation of departmental activities that do not add value to the client or to the organization itself, generating an unjustified bureaucratization of management. in the exchange of information and materials between the different departments (undefined specifications, non-standardized activities, duplicate activities, indefinite responsibilities,…) Lack of involvement and motivation of people, due to the separation between "those who think" and "those they work ”and for an authoritarian rather than participatory management style.

In the last decade, Process Management has aroused growing interest, being widely used by many organizations that use Quality Management and / or Total Quality benchmarks. The Process Based Approach consists of the Systematic Identification and Management of the processes developed in the organization and in particular the interactions between such processes (ISO 9000: 2000). Process Management is based on the modeling of systems as a set of interrelated processes through cause-effect links. The final purpose of Process Management is to ensure that all the processes of an organization are developed in a coordinated way, improving the effectiveness and satisfaction of all interested parties (customers, shareholders, staff, suppliers, society in general).

The ISO 9001: 2000 Standard specifies in its section 4.1a) that “The processes necessary for the quality management system and their application throughout the organization must be identified”. Section 4.1b) requires "Determine the sequence and interrelation of these processes" and section 7.1 qualifies: "The organization must plan and develop the processes necessary for product realization"

The European Model of Excellence (EFQM) also refers to Process Management in its statement: “Customer satisfaction, employee satisfaction and a positive impact on society are achieved through leadership in policy and strategy, a successful personnel management, the efficient use of resources and an adequate definition of processes, which ultimately leads to excellence in business results ”.

One of the 9 modules of the EFQM Model is dedicated to Process Management. Its sub-criteria are:

How critical processes are identified for the success of the Organization How the Organization systematically manages its processes How processes are reviewed and improvement objectives are established How processes are improved through innovation and creativity How improvements are evaluated

Classification of Processes:

Not all the processes of an organization have the same influence on customer satisfaction, costs, strategy, corporate image, staff satisfaction… It is convenient to classify the processes, taking into account their impact on these scopes. A matrix such as the following allows us to assess the importance of the processes, taking into account their influence on the four outcome criteria of the EFQM Model.

The processes are usually classified into three types: Strategic, Key, Support.

Strategic processes:

Strategic processes are those that allow defining and deploying the strategies and objectives of the organization. The processes that define the strategy are generic and common to most businesses (strategic marketing and market research, planning and monitoring of objectives, system review, technological surveillance, evaluation of customer satisfaction…). However, the processes that allow the strategy to be deployed are very diverse, depending precisely on the strategy adopted. Thus, for example, in a consulting company that claims to be recognized in the market for the high training of its consultants, the training and knowledge management processes should be considered strategic. Conversely,In another consulting company focused on the provision of services supported by computer applications, the process of developing computer applications for the provision of services should be considered strategic. Strategic processes intervene in the vision of an organization.

Key Processes:

The key processes are those that add value to the customer or directly affect their satisfaction or dissatisfaction. They make up the organization's value chain. Key processes can also be considered those that, although they do not add value to the customer, consume many resources. For example, in an airline passenger transport company, maintenance of aircraft and facilities is key because of its implications for safety, passenger comfort, productivity and profitability for the company. The same maintenance process can be considered as a support process in other sectors in which it is not as relevant, such as a training services company. Similarly, the purchasing process can be considered key in companies dedicated to commercial distribution,for its influence on the economic results and the terms of service while the purchasing process can be considered a support process in a service company. The key processes intervene in the mission, but not necessarily in the vision of the organization.

Support processes:

This type includes the processes necessary for the control and improvement of the management system, which cannot be considered strategic or key. These processes are usually closely related to the requirements of the standards that establish management models. They are support processes, for example:

Documentation Control Internal Audits Non-Conformities, Corrections and Corrective Actions Management of Non-compliant Products Management of Inspection, Measurement and Testing Equipment Etc.

These processes do not intervene in the vision or mission of the organization.

Principles of Process Management:

A process is a set of activities that are carried out in a certain sequence, allowing products or outputs to be obtained from inputs or raw materials. The processes can be industrial (in which materials enter and leave) or management (in which information enters and leaves).

Processes exist in any organization even though they have never been identified or defined: processes constitute what we do and how we do it. In an organization, practically any activity or task can be framed in some process. There are no processes without a product or service. There is no customer without a product and / or service. There is no product and / or service without a process.

Process Management involves:

A coherent process structure that represents the operation of the organization A system of indicators that allows evaluating the effectiveness and efficiency of the processes both from the internal point of view (performance indicators) and externally (perception indicators). process, which must monitor and improve compliance with all the requirements and objectives of the assigned process (costs, quality, productivity, environment, occupational health and safety, morale)

When defining and analyzing a process, it is necessary to investigate all opportunities to simplify and improve it. For this, it is convenient to keep in mind the following criteria:

All superfluous activities that do not add value must be eliminated. The details of the processes are important because they determine the consumption of resources, the fulfillment of specifications, in short: the efficiency of the processes. Quality and productivity require attention to detail. You can't improve a process without data. Consequently: indicators are needed to review the effectiveness and efficiency of the processes (at least for the key and strategic processes). The causes of the problems are always attributable to the processes, never to the people. processes, two well-differentiated phases can be distinguished: stabilization and process improvement. Stabilization aims to normalize the process so that a state of control is reached,where variability is known and can be controlled. The improvement aims to reduce the process variability margins and / or improve its levels of effectiveness and efficiency.

The analysis and definition of the processes allows:

Establish an evaluation scheme of the organization as a whole (defining process indicators). Understand the cause-effect relationships of the problems of an organization and therefore tackle problems from their roots. Define responsibilities in a simple and direct (assigning managers by process and by activity). Promote internal communication and participation in management. Avoid "departmentalization" of the company. Facilitate Continuous Improvement (Change Management). Simplify the documentation of management systems (Since by agreement a process can be described in a single procedure) Avoid waste of all kinds:

- Of excesses of process capacity

- Of transport and movements

- Of dead times

- Of unnecessary stocks

- Of space

- Of activities that do not add value

- Of quality failures

- Of knowledge

Facilitate the Integration of the different management systems

The processes of an organization may be affected by various legal and / or regulatory, customer, internal and external, environmental, quality, safety, environmental, productivity,… requirements. New requirements may arise or current ones may be modified, but the process structure does not have to be modified.

Glossary of terms

It is convenient to clarify some concepts before delving into the details of process management. A glossary of related terms is included below. Some of the reflected definitions are set out in ISO 9000: 2000.

Exercise:

Each of the elements in which a process can be broken down. The activities in turn can be broken down into Tasks.

Effectiveness:

Extent to which planned activities are carried out and planned results achieved (ISO 9000: 2000, 3.2.14)

Efficiency:

Relationship between the result achieved and the resources used (ISO 9000: 2000, 3.2.15)

Indicator:

Parameter that allows to quantitatively evaluate the effectiveness and / or efficiency of the processes. The indicators can measure the client's perception of the results (perception indicators) or intrinsic variables of the process (performance indicators). It is recommended that the organization establish performance and / or perception indicators at least of its key and strategic processes.

Instruction:

Documented description of an activity or task.

Macroprocess:

Set of processes interrelated and with a common general object.

Process map:

Diagram that allows identifying the processes of an organization and describing its main interrelationships.

Mission:

Statement that describes the raison d'être of an organization. "What we are". The mission description should include, as appropriate, the answer to the following questions:

What should the organization do or produce? (products and / or services) What or for whom does it do it? (customers) How do you intend to do it? (basic processes) Where does it do it? (organizational and / or geographical scope) Suppliers? (If they are indispensable for the achievement of the mission)

Process:

Specified way to carry out an activity or process (ISO 9000: 2000, 3.4.5)

Process:

A set of mutually related activities that interact, which transform input elements into outputs (ISO 9000: 2000, 3.4.1)

Product:

Result of a Process (ISO 9000: 2000, 3.4.2)

Registry:

Document that presents results obtained or provides evidence of activities performed (ISO 9000: 2000, 3.7.6)

System:

Set of mutually related or interacting elements (ISO 9000: 2000, 3.2.1)

Management system:

System to establish the policy and objectives and to achieve those objectives (ISO 9000: 2000, 3.2.2)

View:

Statement that describes the desired future situation of an organization. "What we want to be" or "How we want to be seen" within a certain period of time.

Values:

Set of behaviors, attitudes, beliefs and styles adopted in an organization. Elements of the culture of an organization.

Process Modeling

A model is a representation of a system. Systems can be made up of different interrelated elements such as: people, equipment, products, tasks, materials, documentation, software, hardware, etc. A model describes what the system does, how it works, how it is controlled, and what it produces. Models are developed in order to understand, analyze, improve or replace a system.

A suitable model must allow:

Improve the design of systems Facilitate the integration of new systems or the improvement of existing ones Serve reference documentation for the understanding of systems Facilitate communication between the people involved in the design and operation of systems

Developing a model that offers these advantages requires a specific, coherent, agile, simple and flexible representation method.

Conventional language (spoken or written) has certain limitations and drawbacks in the representation of systems. An example of this is the traditional "encyclopedic" quality procedures written using literal narratives.

Process modeling techniques:

IDEF diagram0 Flow diagram

IDEFO DIAGRAM

During the 1970s, the USAF (United States Air Force) undertook a project called ICAM (Integrated Computer Aided Manufacturing) to increase productivity through the systematic application of computerized means. This project required the establishment of a language model for the analysis and information exchange of the systems that were intended to be developed: IDEF0 (Integration DEFinition language 0).

The result of applying the IDEF0 methodology to a system is a set of hierarchical diagrams with cross references that constitute a schematic model of it. Starting with the main process, the processes are subdivided into threads and these into activities to the necessary degree of detail (increasing the level of detail in the successive diagrams). Each diagram contains numbered boxes with text and arrows that link them. The diagrams are drawn on standardized sheets. Complex activities can be broken down and described in “child” diagrams in successive cascades down to the desired level of detail. The arrows represent the relationship between the boxes. They do not give information on the temporal or sequential development,they describe the inputs and outputs of each box and the restrictions that govern the operation of the system.

Each "box" in a diagram is the origin or exit of arrows that represent:

Input data: Data required by the activity and transformed into output data. Output data: Data or information created by the activity. Control data: Data to control the activity. They are not transformed into output data Mechanism: Resources required.

Each “box” is coded with the code of the diagram in which it appears, followed by a correlative number.

Top Level Diagram (Diagram A-0 "A minus zero")

Every model must include an initial diagram that represents the globality of the system, with a single box that describes all the inputs and outputs outside the limits of the system. This diagram usually includes a description of the object and scope of the system. The unique box code in this diagram is A0. This box is broken down in the lower level child diagram, called A0.

Top Level diagram unfolded (Diagram A0)

In this diagram, the system macroprocesses are displayed. In IDEF0 terminology this diagram is a “child” of the previous one.

Father diagrams

Any diagram that includes a “box” described in another lower-level diagram is called a parent diagram. The lowest level diagram that describes this activity is a “child” of the previous one. The “boxes” described in a lower level diagram are identified by a code called “ERD” (Detail Reference Expression).

Child diagrams

Child diagrams can have 3 to 6 boxes. The lower limit of 3 boxes implies a greater degree of definition of the activities. The upper limit of 6 boxes per diagram forces the hierarchy of the model.

IDEF0 Advantages:

It is a very systematic tool that requires maintaining a hierarchy of relationships between the activities / functions described. It facilitates an in-depth analysis of the inputs and outputs, as well as the control elements and resources of each activity. It is very suitable in the design of complex and dynamic systems. Some drawing software packages incorporate templates and utilities to draw this type of graphics (eg Igrafx Process from Micrografx)

Disadvantages of the IDEF0 Methodology

Strict compliance with IDEF0 modeling rules sometimes leads to excessive hierarchization and complexity in the representation of processes. It is too laborious in management systems It does not allow for easily defining responsibilities It does not allow distinguishing or referring to system documents (control plans, registration formats, technical specifications, instructions, external documents, etc.) A specific computer application is required to maintain the coding, structure and coherence of the model being designed in the event of any eventual modification. It requires extensive training and experience, both in person who elaborates it as the one who interprets it Difficult to follow, not recommended as a descriptive documentary support of a management system Limited in symbology:the only symbol used is a rectangular box representing an activity or function.

FLOWCHART

A flowchart is a graphical representation of the sequence of activities that make up a process. Flowcharts are very useful at various stages of system development (design, implementation, review).

The following describes a method to identify and define the processes of a management system using Flow Charts. In this method there are two well differentiated phases:

1. Preparation of the Process Map

2. Description of each Process

1. Preparation of the Process Map

This diagram provides an overview of the management system. It represents the processes that make up the System as well as its main relationships. These relationships are indicated by arrows and registers that represent the information flows.

The number of processes in a system can be variable depending on the focus of the person who is analyzing or designing the system.

To understand the meaning and importance of a Process Map, we can use the simile of a puzzle. The Process Map is like the image of a puzzle: it is not altered by the shape or size of the pieces that make it up. Thus, the same image can be built with a puzzle of 20 pieces or 200 pieces.

The same management system can be represented by processes (pieces of the puzzle) of more or less size. The size of the processes (pieces) does not affect the system. The only limitation is that the processes (pieces) fit perfectly (without overlaps or gaps) and that the different processes are similar in size to each other.

With very few processes, the Process Map will be concise and easy to understand, but the individual description of each process will be more complex. On the contrary, by identifying many processes, the individual description of each process will be simpler, however, the Process Map will be more complex. The optimal solution will be found at an intermediate point between both ends.

When identifying the processes, it must also be taken into account that each process, by agreement, is described in a single procedure, so that the structure of processes establishes at the same time the structure of the system documentation.

Another factor to consider when establishing the number of processes that make up the system is the existing organizational structure. Processes may be within the scope of a department or function (intradepartmental) or may exceed that scope (interdepartmental). When defining the process structure, it is recommended to choose a process size that allows finding a single responsible for each process.

Experience tells us that, for example, in an integrated quality, environment and prevention system for an SME, the total number of processes (strategic, key and support) should range between 20 and 30. If the number of processes exceeds 20, it is advisable to group them in macroprocesses.

It is recommended to include in the Map the records that establish the relationships between the processes linked with arrows that describe their flow. Records define input and output information and help to more clearly delimit the scope of each process (that is, its beginning and end). It is also recommended to include associated documents such as control plans, specifications and instructions on the Map.

If the Map is very complex, it is convenient to prepare a simplified version, in which only the interrelationships between the processes are indicated by arrows, but the records or associated documents are not indicated.

It is advisable to write the code (correlative number), title and position of the person in charge of each process in the symbol of each of the processes on the Map. In case macroprocesses are defined, the process code is made up of the macroprocess code followed by a sequential number.

It is very useful to color the processes in the Process Map to distinguish or group them according to different criteria. In integrated systems, for example, colors can serve to differentiate the scope of the processes (quality, environment, prevention of occupational hazards, or a combination of these). In non-integrated systems, colors allow differentiating processes based on the macroprocess in which they are included. Colors also make it possible to distinguish the degree of development and implementation of each of the management system processes.

The definition of the Process Map should be established by consensus of the entire management team. For this, it is advisable to use the Affinity Diagram technique.

It is convenient to revise and if necessary update the Process Map once all the procedures have been described as indicated in the following section.

2. Description of each Process

By convention, each process is described in a unique procedure that includes the process flow diagram. To better understand flow charts and define processes more precisely and clearly, it is recommended that the procedure include the following sections:

HeaderObjectScopeResponsible for the ProcessRegistersSignatures

Procedure Header

The header includes the general identifying information of the document (logo of the organization, procedure code, title, version, date)

The coding of the procedures is carried out by two digits (the same ones that designate the Process in the Process Map)

Ex.: 01: First procedure of the Quality system.

The instructions are coded with the same procedure code that they carry out followed by the letter "I" and a correlative two-digit number.

Ex: 02-I01: First instruction of procedure number 2.

Control plans are coded with the procedure code from which they are derived, followed by the letter "P" and a corresponding two-digit number.

The specifications are coded in the same way as the instructions and control plans, but with the letter "E".

The record formats are encoded according to the code of the procedure or instruction that generates them, followed by a correlative two-digit number.

Ex: 01-01: Format 1 of procedure 01.Ex.: 02-I01-01: Format 1 of instruction 01 of procedure 2.

Raw records do not require a code.

Object:

The object is the description of the reason for the process. The object tells us in summary what the process is after, the reason for its existence. It can also be called the "mission" of the process.

Scope:

Scope is the functional scope that the process encompasses. It is recommended to define the scope of each process twice:

a) Exposing the set of products or services affected by the process ("The process is applicable to the materials and services that…")

b) Indicating where the process begins and ends in relation to other processes ("The present process begins with the reception of… and ends with the issuance of…")

Development:

It is the sequence of activities that make up the process. It is graphically represented by a flow chart in which the arrows indicate the sequence of activities and the flow of information. Specific symbols allow activities, records, decisions or other associated documents (instructions, specifications, control plans, etc.) to be distinguished on the flow chart.

Responsible for the process:

The Process Manager is the person who ensures compliance with all its requirements. It monitors the process indicators, verifying their effectiveness and efficiency as well as achieving the objectives defined for said process in any of the management areas (productivity, costs, quality, safety, environment,…). You have full authority to make any process changes with assigned resources. If such a change may influence other processes, you should consult with those responsible for the processes involved.

Records:

Records are documents that present obtained results or provide evidence of activities performed (ISO 9000: 2000, 3.7.6). The records constitute the support of the information that flows in the management system.

The records can be internal (generated in the organization itself) or external (from customers or suppliers). Internal records usually have a defined and controlled format. External records (eg a sales order) do not have a defined format and therefore do not require a format identification code. Records can be computerized or on paper. A record can be archived for a specified time for a pre-established period. or until that record is no longer useful.

It is recommended to include in each procedure a list of all the output records of that procedure, this facilitates the understanding of the flow diagram as well as the control of said records. Internal record formats are controlled as individual documents. It is not recommended to attach them with the procedures.

Firms:

ISO 9000 and virtually all quality, safety and environmental management management standards require formal approval of system documents. Such approval may be evidenced by signing an original or signing a supplemental document approval record. Electronic signature of documents is also supported.

Criteria for drawing Process Flow Diagrams

A) Activities

The first activity of each process is usually connected to another previous process through some registry. Some processes are not started by a previous process but by a "trigger" (an event that triggers an activity). E.g. A trigger for the order fulfillment process is the receipt of an order. A trigger for the complaint-handling process is the receipt of a complaint. Most processes end with activities connected to subsequent processes. An activity can encompass different tasks. The included tasks will be briefly described in the activity box. If the tasks in an activity are numerous and / or complex, the activity box would be too large, so it is recommended to describe that activity in an instruction.Each activity box must indicate a person responsible for carrying out said activity (indicate the responsible position in capital letters, at the end of the activity box) If the tasks of an activity are carried out by different people: consider different activities separating in a box by Each person responsible. If more than one record comes out of an activity, consider the convenience of dividing that activity into several activities: one for each record. The boxes should be drawn as vertically and horizontally as possible. All vertically aligned boxes should be similar width.Consider different activities separating in a box for each person responsible. If more than one record comes out of an activity, consider the advisability of dividing that activity into several activities: one for each record. The boxes should be drawn as vertically and horizontally as possible. All vertically aligned boxes must be of similar width.Consider different activities separating in a box for each person responsible. If more than one record comes out of an activity, consider the advisability of dividing that activity into several activities: one for each record. The boxes should be drawn as vertically and horizontally as possible. All vertically aligned boxes must be of similar width.

B) Arrows

Each arrow represents the flow of information (data or record) or material. Avoid crossing arrows as much as possible Arrows should be drawn from top to bottom and from left to right (except in loops). Avoid drawing oblique arrows. Entries to activities from other preceding activities of the same process are indicated from top to bottom (in this way the sequence of activities is ordered vertically from top to bottom). Entries to activities from other processes are indicated from left to right.

C) Records

If a record leaves an activity to enter an immediate one, it is placed in the middle of both activities joined by arrows. Between two processes, there is usually at least one record, through which the information is transmitted

D) Associated Documents

Control plans, instructions, specifications or other associated documents will be reflected as entries to the left of the activities in which they are used as a reference.

NOTE for writing: Two files are attached with examples of: