Different Ways Of Business Process Analysis: What You Should Know About Them

Process improvement in an organisation is all about identifying the process that are causing a bottleneck or is not giving the expected results, and in the long term change it to bring it up to optimum levels. This has been the bpm methodology for a long time and has been working in the favour of businesses that adopt it. However, the confusion for many stakeholders is to understand how to identify such processes.

This is where expert process analysts come into play. These professionals take a comprehensive look at the entire organisation, all the processes, and all the resources to figure out where the issue occurs, and what resources are being under or over utilised. What parameters do they use to arrive at these conclusions? The same parameters that mean the most to any business.

• Value
• Time
• Cost

Here is a quick breakdown of process analysis in terms of all these factors and what, as a business, you must be focussing on.

Different Ways Of Business Process Analysis

Value Analysis

Process value analysis is an evaluation of the processes to quantify the overall value that it adds as a result of the tasks that comprise it. It does not determine the exact value that the comprising tasks add, but rather determines the way in which they add the value. According to this theory, all processes and tasks can be labelled to belong to either of three categories.

• Customer Value Add
  The tasks that directly add value to what is delivered to the customer. It takes their expectations and requirements and fulfils them to attain the desired level of satisfaction.

• Business Value Add
  Process that may not add value to the customer but are essential in running a business. These processes, thus, add value to the business itself, like policy and regulation compliance.

• Non Value Add
  Processes that do not add any value to the business or the customer, like managerial approvals.

Time Analysis

In any business, time is a huge factor because while it is important to deliver solutions or products, it is far more important to make sure that they are delivered within deadlines. Process time analysis evaluates time taken to complete a task and breaks it down into 2 categories:

• Total Execution Time
• Total Delay Time

The aim is to reduce the total execution time by eliminating any delays that may arise in the process.

Cost Analysis

Another important thing that businesses need to take into consideration is the amount of cash they are putting in to get the results. Process cost analysis is done on the basis of the results obtained from the time analysis performed by a business process software and calculates the cost associated with each of the processes. This helps businesses ensure that the processes are adding money to the business. In a similar fashion to time analysis, cost analysis can also be split into 2 categories:

• Total execution cost
• Total delay cost

Process analysis is an important part of business process improvement simply because it is not a one-time effort. Improvement is a continuous process which is why it requires constant analysis to keep the business running at optimal levels.

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