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Process Excellence Practice


ARE YOU FACING LOTS OF DATA? …

… AND YOU DON’T HAVE A GOOD VISION ON HOW THE PROCESSES ARE REALLY APPLIED?

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WE HAVE DEVELOPED TOOLS & METHODS TO …

UNDERSTAND

CONTROL

OPTIMIZE

STEP 1

STEP 2

STEP 3

PROCESS DISCOVERY

PROCESS CONFORMANCE

PROCESS ENHANCEMENT

YOUR PROCESSES! 3


TYPICAL PROJECT ROADMAP WEEK 1

WORKSHOP 1

WEEK 2

WEEK 3

WEEK 4

Define scope of analysis & Framework

DATA INSPECTION

Clean-up & Prepare database

WORKSHOP 2

Q&A + Update database

DATA ANALYSIS PERFORMANCE ROLE ANALYSIS FEEDBACK

Analyse process conformance Analyse process performance Analyse role conformance/performance Transfer results 4


A BASIC CASE EXAMPLE: THE EXPENSES PROCESS (with in principle no relevant information to get from)

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DATA INSPECTION


DATA INSPECTION

DATA PARAMETERS ALL EVENTS CLASS

FREQUENCY

FREQUENCY (%)

Expense confirmed

255

23.94%

Expense created

230

21.60%

Expense approved

218

20.47%

Expense posted

197

18.50%

Expense paid

138

12.96%

Expense edited

18

1.69%

9 EVENT CLASSES

Expense updated

7

0.66%

# actions within the same case in the process

Expense refused

1

0.09%

Expense corrected

1

0.09%

229 CASES # of expenses in the process 1065 EVENTS # of actions executed in the process

COMPLETE TIME: 11/05/13 - 10/05/17 Data collection period

e.g. 97% of the process is explained by the “theoretical process”, which means only a few expenses are edited, updated, refused & corrected

END EVENTS

24 ORIGINATORS # of employees involved in the process

The most frequent actions in the process

Expense paid

138

60.26%

Expense posted

59

25.76%

Expense approved

19

8.30%

Expense confirmed

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5.24%

e.g. 60% of the process ends by the expense refund

Expense created

1

0.44%

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The most frequent “end” actions in the process


DATA INSPECTION

YOUR THEORETICAL EXPENSES PROCESS SEEMS TO BE … The expense is entered and saved in ERP by the employee

The expense is confirmed by the employee

The expense is approved by a Manager The expense is posted in journal by the Accountant

The expense is paid by the Accountant

BUT THIS IS REALLY MORE COMPLEX IN REALITY! 8


DATA INSPECTION

WE CAN HELP YOU TO UNDERSTAND IT … More stages need to be taken into account in the process: • After employee’s confirmation, some expenses are edited by the employee himself or updated by a Manager • If the expense is refused by the Manager, it is corrected and confirmed by the employee The thickness of an arc indicates the frequency The number in the box indicates the signification of the action in the process

We plan a Q&A session to present you this data and define the framework of our future analysis

… IN ORDER TO CONTROL IT BETTER

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DATA ANALYSIS


DATA ANALYSIS

PATHS ANALYSIS The 5 most frequent paths:
 92.57% of the process is explained by only 5 paths/traces 52.40% of expenses encoded in ERP follows this path and are refunded (120 out of 229) 23.14% of expenses encoded in ERP is still unpaid but already posted in Journal

7.42% of expenses encoded in ERP is neither unpaid nor posted in journal but already approved

5.24% of expenses encoded in ERP are still waiting for approval 4.37% of expenses are edited by the employee

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DATA ANALYSIS

PATHS ANALYSIS We analyze the most frequent paths and actions executed in the process

138 out of 229 expenses: 60% of expenses have been refunded 197 out of 229 expenses: 86% of expenses have been posted in journal 217 out of 229 expenses: 95% of expenses have been approved 1 out of 217 expenses: 0.005% of expenses have been refused & corrected 12


DATA ANALYSIS

PATHS & DEVIATIONS We analyze the deviations of actions in the process

Expense created 52 deviations out of 228 actions: 6% of employees save their expenses without confirming it directly after.
 
 Expense approved 13 deviations out of 217 actions: 6% of employees bypass the Manager approval or are still waiting for their expense to be approved*. Expense posted 32 deviations out of 197 actions: 16% of employees bypass the journal posting or are still waiting for their expense to be posted*. * It will be determined in the Role Analysis

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DATA ANALYSIS

TYPES OF EXPENSES

Restaurant and Divers are the most frequent expenses 37/551 (7%) of Restaurant expenses is not considered within Travel expenses, such as Frais de dĂŠplacement and Train Laboratory Material is often entered as an expense in ERP

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PERFORMANCE ANALYSIS


PERFORMANCE ANALYSIS

PATHS & SOJOURN TIMES We analyze now the completion time of actions in the process

In average, it takes … • 95 days for employees to be refunded • 69 days for Managers to approve expenses • 62 days for the Accountant to post expenses in journal Bottlenecks: The employees confirm their expenses 35 days after their creation in ERP! They should confirm it directly. It took 227 days for an expense to be refused after approval! 16


PERFORMANCE ANALYSIS

TYPES OF EXPENSES

Expenses that are taken into consideration after the longest period (more than 60 days) are Restaurant, Divers and Taxis 17


PERFORMANCE ANALYSIS

WEEKLY ACTIONS

SUN

MON

TUE

WED

THU

FRI

SAT

Legend:
 Expense action Expenses are entered on random daily moments in ERP except: • most of approvals are done on Tuesday • most of journal postings are done on Sunday

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ROLE ANALYSIS


ROLE ANALYSIS

SOCIAL NETWORK

Do the people out of the box rarely execute the expenses process, or do they approve their own expenses such as risen from the Paths & Deviations analysis ?

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ROLE ANALYSIS

PATHS & DEVIATIONS

Some Scientists approve their own expenses. Journal postings and expense refund are not only executed by the Accountant but also by some Managers. 21


ROLE ANALYSIS

PATHS & SOJOURN TIMES

In average,
 
 The Accountant refund expenses 62 days after an expense is created, but he needs 86 days to post it in journal! The Financial Analyst and CFO takes the most time before executing their actions in the process. 22


ROLE ANALYSIS

EXPENSES TYPE & STATUS PER ROLE

Legend:
 Expense status

It seems Scientist’s expenses are rarely refunded Restaurant is the most refunded expenses

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ROLE ANALYSIS

EXPENSES AMOUNT & STATUS PER ROLE

Legend:
 Expense status

The most expensive expenses have been refunded except for Scientists (3000€).
 By the way, we can clearly notice Scientists are rarely get refund in general.

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PROCESS ENHANCEMENT

FEEDBACK DATA ANALYSIS Are there deviations from the prescribed process? Are you in control? • Some Scientists approve their own expenses • Besides the Accountant, some Managers execute journal postings PERFORMANCE ANALYSIS Do you meet the performance targets? • The expense refund process is quite long (95 days), but the most time is taken between expenses creation and journal postings by the Accountant (86 days). • Employees should directly confirm their expenses after their creation (35 days). • Expenses refusing process is extremely long (227 days). ROLE ANALYSIS Who executes what tasks? Who typically work together? • You should edit your employees’ access rights so they couldn’t approve their own expenses to control it better. • Scientists’s expenses are rarely refunded, even the huge amount (3000€) • You shouldn’t take the expenses amount into consideration before refund it because Scientists usually enter small amount so it takes time before they get repaid. 25


PROCESS ENHANCEMENT

BEST PRACTICES This data, performance & role analysis helped you understand and control your process which we could now optimize together through our Best Practices. A booklet including our Best Practices in HR, Purchase & Finance is available online: https://issuu.com/belean.net/docs/belean_bestpractices

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PROCESS ENHANCEMENT

CONCLUSION Now let’s plan the best process WITH YOU to optimize your performance. We should estimate together: • the best practices to follow • your objectives to reach • the duration to respect

In terms of CRM, what is your probability to turn your opportunities into leads? What are the key stages? What is the role of your employees in the successes? What is the compliance of your Purchases process to the governance? What is the efficiency of your Manufacturing & Warehouse process? How do your clients follow the path to sales success on your website? …

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Any other process to analyze? Do not hesitate to contact us: info@belean.net

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THANK YOU

Guillaume de Viron Managing Director guillaume@belean.net

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Belean.net Process Excellence Practice  
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