How to analyze a Business Process –
Explained practically using an example
Diwakar Singh
Understanding Business Process Analysis (BPA)
BPA is a systematic approach to evaluating the steps and
activities that make up a business process. The goal is to
identify inefficiencies, bottlenecks, and opportunities for
improvement, ultimately leading to cost reduction,
improved customer satisfaction, and enhanced overall
performance.
Steps Involved in Business Process Analysis
Process Identification and Selection: The first step is to
pinpoint the process you want to analyze. In our e-
commerce example, this would be the order fulfillment
process, which involves everything from the moment a
customer places an order to the delivery of the product.
Define the Process Scope and Boundaries: Clearly outline
the start and end points of the process. In our case, the
process begins when an order is placed and ends when the
customer receives the product.
Gather Information: Collect data about the current
process. This can be done through:
• Interviews: Talk to employees involved in the process
to understand their roles, challenges, and suggestions.
• Workshops: Facilitate group discussions to gather
insights from different perspectives.
• Observation: Shadow employees as they perform their
tasks to gain firsthand knowledge.
• Document Review: Analyze existing process
documentation, such as flowcharts, manuals, and
standard operating procedures.
Process Mapping: Create a visual representation of the
process flow. This can be done using various tools like:
• Flowcharts: Illustrate the sequence of steps and
decision points.
• Swimlane Diagrams: Show how different departments
or roles interact within the process.
• Value Stream Maps: Highlight value-adding and non-
value-adding activities.
Data Analysis: Analyze the collected data to identify:
• Bottlenecks: Where are delays or hold-ups occurring?
• Redundancies: Are any steps being repeated
unnecessarily?
• Deviations: Are employees following the documented
process, or are there variations?
• Waste: Are resources being used inefficiently?
Identify Improvement Opportunities: Based on the
analysis, brainstorm potential solutions to address the
identified issues. This could involve:
• Automating tasks: Replace manual processes with
technology to reduce errors and improve efficiency.
• Streamlining processes: Eliminate unnecessary steps
or combine similar tasks.
• Redesigning the process: Introduce a new way of
doing things if the current process is fundamentally
flawed.
Develop Recommendations: Present your findings and
proposed solutions to stakeholders. Be sure to quantify the
potential benefits of implementing the changes.
Implementation and Monitoring: If the recommendations
are approved, oversee the implementation of the changes
and track the results to ensure the desired improvements
are achieved.
Example: E-commerce Order Fulfillment Process
Analysis
Imagine you're analyzing the order fulfillment process for a
large online retailer. Here's how you might apply the steps:
Process Identification: Order fulfillment.
Scope: From order placement to delivery.
Data Gathering: Interview warehouse staff, customer
service representatives, and delivery drivers. Review existing
process documentation.
Process Mapping: Create a flowchart detailing each step,
from order confirmation to inventory picking, packing,
shipping, and delivery.
Data Analysis: Discover that a bottleneck exists in the
packing stage due to manual processes.
Improvement Opportunities: Recommend implementing
an automated packing system to speed up the process and
reduce errors.
Recommendations: Present the findings and the
automation solution to management, highlighting the
potential cost savings and improved customer satisfaction.
Important Considerations
Stakeholder Engagement: Involve stakeholders throughout
the process to ensure buy-in and smooth implementation.
Change Management: Be prepared to address resistance to
change and provide training and support to employees
affected by the new processes.
Continuous Improvement: BPA is not a one-time event.
Regularly review and refine processes to adapt to changing
business needs and maintain a competitive edge.
