Business Process Analysis Based On Value, Time, Cost And Efficiency

Business Improvement strategy


To establish an effective Continuous Business Improvement strategy, it is crucial to perform a detailed analysis of processes. In any business, processes should be managed efficiently, and the success of improvement efforts depends on how effectively they are managed. A comprehensive analysis of processes is conducted by a team of process analysts from an organizational perspective to identify focus areas for process performance improvement.


In this blog, we will focus on the quantitative business processes analysis. The following key quantitative measures must be considered to identify the right improvement opportunities and channelize improvement efforts effectively:

• Value

• Time

• Cost

• Efficiency

To analyze business processes based on these quantitative measures, we will cover the following methods:

Process Value Analysis:

Process Value Analysis is a systematic evaluation of processes to identify the value of each task. It helps in establishing the value of each task as part of the corresponding process and determines the way it adds value.

The tasks in a process can be categorized as Customer Value-Add (CVA), Business Value-Add (BVA) or Non-Value Add (NVA) tasks. A value-analyzed process map shows the breakup of all three types of tasks per process grouped under each Business Process Group.

Process Time Analysis:

Process Time Analysis is a thorough assessment of processes to evaluate how the time invested is being utilized. It involves calculating the total number of hours spent on each process identified within the business area as the ‘Annual Time.’ Total Execution Time and Total Delay Time are two components for each individual process.

Process Cost Analysis:

        Process Cost Analysis is based on the results of Process Time Analysis. It calculates the ‘Annual         Cost associated with each of the processes to ensure that they are adding dollar figures to the business.  The outcomes of cost analysis can also be considered from the perspectives of execution and delay.

Process Cycle Efficiency (PCE) Analysis:

Process Cycle Efficiency Analysis is required to determine which processes are efficient and which are not. Each individual process within a business area is analyzed using the execution time and delay time identified for it. Two major components of Process Cycle Efficiency
Analysis are Manufacturing Efficiency and Transactional Efficiency.

 


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