Business Process Analysis

Business process analysis (BPA) is a complex of actions aimed at the examination of a business with a view to study the procedures and make the operations more efficient and effective. It reveals the processes used, people participating, data shared and documents created.

The primary goal of BPA is to improve processes by eliminating the activities that don’t add any value to production of goods and services. Taking into consideration that processes influence the business performance significantly, following that approach is a better way to increase competitiveness of an enterprise, satisfy needs of customers and increase sales.

According to the methodology of BPA, the main object of its investigation is an operation consisting of procedures or processes, which transform initial resources (inputs) into final products (outputs). Inputs comprise raw materials, labor force, equipment, etc. Outputs mean goods and services, as well as products that act as inputs for another process.

Business Process Analysis

Stages of Business Process Analysis

The initial step to optimize a process is its examination to find out the operations, their interrelationships and indicators of their productivity. In this sense, BPA usually includes the following stages:

  • Defining of the scope of the process with exact start and end points to distinguish it from other processes.
  • Constructing the process flow chart that will show all the operations within the process and their interconnections.
  • Determining the input of each phase into the process. Calculating the corresponding values (e.g. KPI).
  • Identifying the bottlenecks representing the phase that gives the smallest contribution to the process.
  • Evaluating of other limitations to find out the extent how the bottleneck influences on the process.
  • Making decision on the base of analysis to optimize the process.

Benefits of BPA

Business process analysis helps in obtaining the following results:

  • Documentation of all the processes. As a result of business process analysis, an organization gets all the operations documented, including implicit activities not reflected in process manuals. This side effects the affords ground for elaboration of more precise job descriptions for employees. Also, additional functional instructions can be implemented to use the equipment during its operation more effectively.
  • Identification of problematic areas slowing down the production process, such us fulfillment of excessive and repetitive actions or filling up unnecessary forms.
  • Revelation of opportunities for optimization, such as reducing transaction costs, increase of quality control, etc.

Having conducted analysis and improvement of business processes, an enterprise can achieve better performance indicators including:

  • Higher productivity;
  • Better quality of goods and services;
  • Reduced costs;
  • Lower error rates and number of problems arising within working operations;
  • Reduced delays of projects;
  • Less cycle time.

Moreover, regular process analysis necessarily leads to more effective planning and controlling of all the business projects.

Business Process Analysis Tools

BPA tools are techniques used by organizations to document and analyze business processes. Through the use of different models, BPA tools allow end users to obtain visual representation of existing operations, so that decision makers can assess their scalability, level of automation and efficiency.

The basic BPA tool is a flow chart – a diagram illustrating the sequence of operations within a process.

Business Process Analysis

Rectangles in a chart usually mean tasks, triangles or rhombs represent inventory, circles or ovals imply data storage, arrows signify flows, which cover both material and information streams.

Nowadays modeling of processes can be fulfilled directly in CRM systems, which are usually used in huge organizations. For that purpose, bpm’online system contains the special feature called Visual Process Designer, with the help of which core business processes can be automated. The system permits to create a flow chart of various activities using the templates available in the program. Using the Designer, you can plan tasks, streamline workflow, provide for work with external service providers.

Besides the flow chart method, some other tools can be used, such as:

  • Failure Mode Effects Analysis (approach for identification of any process failures, examination of the consequences and elimination of their reiteration in the future);
  • Mistake-detecting (use of the techniques excluding occurrence of errors at all or allowing to spot an error right after it happened);
  • Spaghetti Diagram (a visual illustration of the full path of an activity within a process to identify overlapping in operations and to look for opportunities to speed up process flow).

Business Process Analysis

Role of Business Process Management (BPM) Software

There are also a lot of BPA tools used in IT. Such tools are usually an integral part of BPM software and allow managers to analyze processes on the base of diagrams, statistics, performance indicators calculation, benchmarking, modeling and other methods. Using these resources, business leaders make more accurate decisions, which either maintain current business processes or change them to improve future operations.

Business process management software plays an important role in documentation of multiple business processes in enterprises with a complex architecture helping to trace value chains to achieve better business performance.

The interface of bpm’online package also allows conducting business process analysis in several aspects. You can become familiar with a brief description of the analytical functions by the following link: https://www.bpmonline.com/crm/business-process-analysis. Should you have any issues related to the usage of the BPM tools, please feel free to ask questions on the page of the official community. All you need to do is to describe your problem with the business process management system precisely, and the specialists will answer you shortly.

To keep up with the fast development of technology organizations (especially those with complex processes), should have progressive BPA tools. Modern BPM systems offer a business cloud technology, which provides its managers an opportunity to audit all the processes accurately and to expose problem areas in a timely manner, owing to the possibility to reflect of a process result in real time. Whilst visual reporting of such BPM systems helps business leaders to expose process bottlenecks, resources overage and other performance inefficiencies.

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