Qualitative Process

Analysis
Samuel Ady Sanjaya
Qualitative vs Quantitative
 01

Value-Added
Analysis
Value-Added Analysis
• Value-added analysis is a technique to identify unnecessary steps in a
process in view of eliminating them
• Value Adding (VA):
• Steps that directly contribute to positive outcomes (for customer)
• Business Value Adding (BVA)
• Steps that indirectly contribute to positive outcomes (for business)
• Non-Value Adding (NVA)
• Neither Va nor BVA
Value-Added Analysis
 02

Waste Analysis
Waste Analysis
• Waste analysis can be seen as the reverse of value added analysis
• Value added analysis we look at the process from a positive angle
• Waste analysis takes the negative angle
• It tries to find waste everywhere in the process
Move
• The first and perhaps most pervasive source of waste is transportation
• Manufacturing  Transportation means moving materials from one
location to another one, such as from a warehouse to a production
facility
• Business Process  Documents are sent from one process participant to
another
• In modern business, physical document  Electronic Data Interchange
(EDI)
Move (1)
Move (2)
• A process model with lanes and pools can help us to identify
transportation waste
• Not all transportation waste in a process can be eliminated
• What if the transportation is value-adding?  Optimizing the placement
of equipment
• How to reduce physical transportation?  Batch together several
deliveries; reduce the number of handoffs; reduce the waiting times
Hold
• We can also generate waste by having materials, work items, or resources
on hold
• Hold type:
• Inventory  hold more inventory than what is strictly necessary at a
given point in time in order to maintain the production line working
• Waiting/Iddleness  waiting for workers(waiting, resource >
worker) or waiting for resource (idle, resource < worker)
Overdo
• Overdo type:
• Defect waste  correct, repair, or compensate for a defect in a
process. Repeatedly process because of defects.
• Exp: loan application, there are many feedback and revisions
from banks/institution; eKTP application
• Overprocessing  a task is executed and later found to be
unnecessary. Perfectionism, take a lot of time to measure/do
something which is not necessary
• Exp: vehicle emission high accuracy testing, exceed the
specified specifications
• Overproduction  execute an entire process instance that does not
add value upon completion.
• Exp: many rejection from customer
Stakeholder 03

Analysis and
Issue
Documentation
“even a good process can be made better”
Stakeholder Analysis and Issue Documentation
• no matter how much improvement it has undergone, suffers from a
number of issues
• There are always errors, misunderstandings, incidents, unnecessary steps
and other waste when a business process is performed on a day-to-day
basis
• Part of the job of a process analyst is to identify and to document the
issues that affect the performance of a process
Stakeholder Analysis
• Stakeholder analysis is a widely used technique in the field of project
management
• Undertaken at the start of a project in order to understand who has an
interest in the project and could therefore contribute to, affect, or be
affected by the project’s execution
• Each of these categories of stakeholders bring their own viewpoint and are
likely to perceive different issues in the process
Stakeholder Categories
• The customer(s) of the process.
• The process participants.
• The external parties (e.g., suppliers, sub-contractors) involved in the
process.
• The process owner and the operational managers who supervise the
process participants.
• The sponsor of the process improvement effort and other executive
managers who have a stake in the performance of the process.
Stakeholder’s Concern
• The customer(s)  slow cycle time, defects, lack of transparency, or lack
of traceability
• The process participants  high resource utilization, as
• this means that they have to work under stress
• The external parties  having a steady or growing stream of work from
the process, being able to plan their work ahead, and being able to meet
contractual requirements
• The process owner  the performance measures of the process, be it
high cycle times or high processing times
• The sponsor  strategic alignment of the process and the contribution of
the process to the key performance measures of the organization
Issue Register
Pareto Analysis
• Issue register is the beginning of pareto analysis
• The aim of Pareto analysis is to identify which issues or which causal
factors of an issue should be given priority
Pareto Chart
PICK Chart
 04

Root Cause
Analysis
Cause-Effect
• Cause-effect diagrams depict the relationship between a given negative
effect and its potential causes
• A negative effect is usually either a recurrent issue or an undesirable level
of process performance
• A well-known categorization for cause-effect analysis are the so-called 6
M’s:
• Machine (Technology)
• Method (Process)
• Material
• Man
• Measurement
• Milieu
Cause-Effect (1)
Cause-Effect (2)
Why-why Diagrams
• Why-why diagrams (also known as
tree diagrams) constitute another
technique to analyze the cause of
negative effects, such as issues in a
business process
• Why-why diagrams are a technique
for structuring brainstorming
sessions
 Thanks!
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