Objective
The objective of any business process analysis is simple: to improve the overall effectiveness and profitability of the business by identifying how the business actually operates and then improving these operational procedures. Improvements can result from many types of changes; examples range from the simple (eliminating duplicate data entry) to the complex (issuing online direct deposit transactions instead of manually prepared ones.)
There is no single "rule of thumb" for approaches that can cover all businesses. However, it is generally true that systematically analyzing how a business operates and then applying proven improvement methods and technologies can result in noticeable, measurable improvements.
BackgroundMost any business can improve its overall efficiency and profitability by examining and optimizing the various processes it employs on a daily basis. Large corporations were the first businesses to recognize this and as a result there came to be developed a significant body of knowledge, methodologies, and tools specifically targeted at identifying, documenting, and improving business processes in general.
Small businesses typically do not employ these techniques for several reasons:
- Their daily operational procedures are perceived to be optimized already
- There is no one to do an analysis of existing processes
- There is no desire for or awareness of the potential improvements to be derived from performing a process analysis
- No one knows how to do an analysis or achieve improvements from one
Over 30 years of experience in large corporations enables Peninsula Software to bring to a small business the same kinds of methodologies and tools used in those larger environments. Peninsula Software believes most any business can improve its daily operations by completing a customized process analysis project targeted at its unique situation. Here is a more detailed description of the components of a process analysis project:
The general methodology for conducting an analysis consists of collecting information about the business from the people who are actually involved in its daily operation. These are the people who know what the data items are, how they are processed, and how information moves through the business. Once this data is collected Peninsula Software will document the findings via a set of charts, lists, and other items described in the Deliverables section below.
Additionally, Peninsula Software will prepare a set of overall recommendations based on "best practices" use of current technologies that are suitable for use in the studied business.
DeliverablesPeninsula Software will tailor the specific deliverables for each analysis, but in general the following documents will be provided at the conclusion of the project:
- A list of data elements and the major data fields comprising each one
- A list of the operational areas comprising the business and a brief function statement for each
- A flowchart-type diagram depicting how data moves through the business�s operational areas
- A summary of potential process improvement changes and/or recommendations
- A statement about how new and/or changed automation procedures and technology products could enhance overall business operations
Because each business is unique it is not possible to give a general estimate of the time and cost required to compete a process analysis project. Prior to commencing a project Peninsula Software will provide a formal estimate detailing activities, timeframes, deliverables, and costs. A general objective would be to spend an hour or two with the business owner/operator, no more than an hour or two collecting detailed information from one person in each area of the business, and then to take this data and develop the deliverables described above. There would probably be some additional contact during the deliverable preparation process. Assuming reasonable access to people at the business a complete process analysis should take no more than two to three weeks.
When the deliverables are complete a meeting with the owner/operator will be scheduled at which the deliverables are presented and discussed. Following this there would be discussions about follow-on activities as deemed appropriate.
