3. BUSINESS PROCESS ANALYSIS GUIDE TO
     SIMPLIFY TRADE PROCEDURES



3A INTRODUCTION TO PHASES,                        ...
Business Process Analysis Guide to Simplify Trade Procedures



Phase III: Process analysis and recommenda-               ...
Table 3.2. Overview of BPA

          Step                      Deliverables                                              ...
Table 3.2. (continued)




14
          Step                       Deliverables                                           ...
3. Business Process Analysis Guide to Simplify Trade Procedures



The steps within each phase require that a             ...
Business Process Analysis Guide to Simplify Trade Procedures



                                       Figure 3.3. Activit...
3. Business Process Analysis Guide to Simplify Trade Procedures



Activity 1.2                                           ...
Business Process Analysis Guide to Simplify Trade Procedures



Activity 1.6                                              ...
3. Business Process Analysis Guide to Simplify Trade Procedures



                    Figure 3.4. Stakeholders involved i...
Business Process Analysis Guide to Simplify Trade Procedures



The use case diagram may be changed at a                  ...
3. Business Process Analysis Guide to Simplify Trade Procedures




     Box 3.4. Case study – use cases of core business ...
Business Process Analysis Guide to Simplify Trade Procedures



Activity 2.3                                              ...
3. Business Process Analysis Guide to Simplify Trade Procedures



Phase II is to make the knowledge of these             ...
Business Process Analysis Guide to Simplify Trade Procedures



                                  Figure 3.6. Stakeholders...
3. Business Process Analysis Guide to Simplify Trade Procedures



•   Activity diagrams                                  ...
Business Process Analysis Guide to Simplify Trade Procedures



ticipants/business domain experts who are in              ...
3. Business Process Analysis Guide to Simplify Trade Procedures



other potential interviewees who can substitute        ...
Business Process Analysis Guide to Simplify Trade Procedures



Activity 4.6                                              ...
3. BUSINESS PROCESS ANALYSIS GUIDE TO SIMPLIFY TRADE PROCEDURES
3. BUSINESS PROCESS ANALYSIS GUIDE TO SIMPLIFY TRADE PROCEDURES
3. BUSINESS PROCESS ANALYSIS GUIDE TO SIMPLIFY TRADE PROCEDURES
3. BUSINESS PROCESS ANALYSIS GUIDE TO SIMPLIFY TRADE PROCEDURES
3. BUSINESS PROCESS ANALYSIS GUIDE TO SIMPLIFY TRADE PROCEDURES
3. BUSINESS PROCESS ANALYSIS GUIDE TO SIMPLIFY TRADE PROCEDURES
3. BUSINESS PROCESS ANALYSIS GUIDE TO SIMPLIFY TRADE PROCEDURES
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3. BUSINESS PROCESS ANALYSIS GUIDE TO SIMPLIFY TRADE PROCEDURES

  1. 1. 3. BUSINESS PROCESS ANALYSIS GUIDE TO SIMPLIFY TRADE PROCEDURES 3A INTRODUCTION TO PHASES, Step 1 - Define a project scope STAKEHOLDERS AND OTHER Step 2 - Develop a detailed work plan and secure resources RELATED ISSUES The business process analysis consists of Phase II: Data collection and process docu- three phases that have to be carried out in mentation, which includes two steps: sequence (see Figure 3.1): Step 3 - Acquire background informa- tion Phase I: Scope setting, which includes the Step 4 - Conduct interviews and docu- following two steps: ment captured data Figure 3.1. Key steps and stakeholders in business process analysis Phase I 1) Define a project scope 2) Develop a detailed plan and secure resources Phase II Project Process Sponsor Analyst 3) Acquire background information 4) Conduct interviews and document captured data Phase III Process Participants/ Project Manager/ Project Leader Business Domain Experts 5) Analyse the “as-is” process and identify bottlenecks 6) Develop and propose recommendations 11
  2. 2. Business Process Analysis Guide to Simplify Trade Procedures Phase III: Process analysis and recommenda- • Project Manager/ Project Leader, who is in tions development, which includes the charge of planning, directing, staffing, and following two steps: managing the development of the business Step 5 - Analyse the “as-is” processes process study; and identify bottlenecks • Project Analysts, who are in charge of col- Step 6 - Develop and propose recom- lecting, documenting and analysing the mendations. business processes; • Process Participants/ Business Domain Ex- Four groups of stakeholders participate in a perts, who carry out business processes business process: and thus have specific expertise and knowledge of a business process. • Project Sponsor, who acts as authorized person from a lead agency commis- Their responsibilities in the different phases of sioning the business process analysis the business process analysis are summarized study; in Table 3.1. Table 3.1. Roles and responsibilities of stakeholders in BPA Phase I Phase II Phase III Role Step 1: Step 2: Step 3: Step 4: Step 5: Step 6: Define Develop a Acquire Conduct Analyse the Develop project detailed plan background interview and “as-is” and scope and secure information document processes propose resources captured data and identify recom- bottlenecks mendations Project Finalize and Approve any Provide management support and direction when needed Sponsor approve the changes to project scope project scope Participate in major project reviews and approve key deliverables Commit specific Ensure timely resolution of issues affecting project resources success Project Acquire relevant Develop a Oversee and control the execution of the plan Manager/ information to detailed plan Project define the Leader scope of a Organize Participate in the review of milestone deliverables process under resources including the final output investigation Process – Review plan Conduct desk Conduct the Analyse and Develop Analysts and propose research interviews identify recommen- adjustment if bottlenecks dations for needed Make Collect and and process necessary consolidate improvement simplification preparation data opportunities for interview of the “as-is” and Document processes Report the observation the “as-is” final output processes Process Verify the – Provide relevant knowledge on process Participate Participants/ proposed under investigation in the Business project scope review of Domain Verify the accuracy of applicable the final Experts deliverables output 12
  3. 3. Table 3.2. Overview of BPA Step Deliverables Do’s Don’ts Step 1: Define Use case diagram and description illustrating: Be precise on the scope of the process analysis study. Do not set the scope that is project scope – Business domain too broad or vague. – Process areas Specify the environment and conditions in which the business domain of interest – Process participants operates, such as mode of transport, terms of delivery, terms of payment, – Business processes in which those country of destination, and country of origin at the early phase of the business participants interact process analysis project, because different modes of transport, terms of delivery, and terms of payment have different procedural and documentary requirements. Set the scope from the perspective of the beneficiary. For example, with limited resources, detailed modeling and analysis of the business process for the export of one product is not possible. In this case, the emphasis should be oriented towards project beneficiary. If the beneficiary is an exporter, the emphasis is on what the exporter has to do in order to ship the cargo to the destination country. If the beneficiary is a carrier, the emphasis is on what the carrier has to do in order to leave the port of departure. Break the project into sub-projects if the scope is relatively large. For example, if the project requires the analysis of business processes for exporting 10 countries’ strategic products, break the project into 10 sub-projects and define the project scope for each of them. Step 2: Develop a Detailed project plan including human Set up a team that consists of process analysts with critical thinking. Do not underestimate the ef- detailed plan and resources, schedules, and software forts and time needed for secure resources supported tools certain tasks, especially those related to human A list of potential interviewees and their con- interactions, e.g. data tact information collection and verification. Step 3: Acquire A folder of background information on the Do collect as much background information as possible from diverse Do not conduct any inter- background business processes which may be available sources. view session before the in- information accompanied by a brief explanatory note of terviewer has sufficient the business step. background information and becomes familiar with A list of guiding questions for the interview the organization and the specific business pro- cesses under interview. Step 4: Conduct A set of activity diagrams illustrating: Inform interviewees about overall expectations from the interview session Do not attempt to create interviews and – Starting and ending points and the specific business processes of interest. processes that look “per- document captured – Pre-conditions and post-conditions of fect” from the beginning. data each business process Define and document processes in a way that reflects the current state of Perfection does not repre- – A set of activities practices. sent what actually happens – Documents associated with each in reality and thus cannot business transaction When describing and documenting a process, start with the activity diagram. serve as a baseline for im- – Output and criteria to exit the Drawing helps formulate ideas and a logical sequence of activities. Most provement. business process likely, drawing the first diagram is going to be a struggle. If two connecting (Continued on next page) 13 3. Business Process Analysis Guide to Simplify Trade Procedures
  4. 4. Table 3.2. (continued) 14 Step Deliverables Do’s Don’ts – The average time required to complete activities in a logical sequence do not make sense, it means some activities that process step may be missing in between. A set of business process descriptions Write down questions that come up when drawing the diagram and use describing: them for another interview session. Structure the second round of the – The name of a process area to which interview based on these questions. this particular business process belongs Hold an experience-sharing session among the team of process analysts – The name of the business process from time to time. Experience sharing allows process analysts to observe – Related rules and regulations and depict patterns in some processes across the business domain. For – The name of the responsible parties example, process analysts responsible for defining processes of different – Input and criteria to enter/begin the products will discover among themselves that no matter what products there business process are, traders have to comply with customs regulations in submitting customs – Activities and associated documentary declarations following similar instructions. requirements to complete this step (in cluding forms, and document tem- Always reuse patterns (diagram of identical activities) where applicable, as it plates and examples) saves time and ensures the consistency of processes across the business – Output and criteria to exit the domain. business process Business Process Analysis Guide to Simplify Trade Procedures Activity diagram illustrating integrated processes in the business domain Time-Procedure Chart, a chart illustrating relationships between business process and time required to complete each busi- ness process in the business domain of interest Step 5: A set of observations of the “as-is” proc- During the interview, seek interviewees’ opinions and observations on bottle- Do not wait to the end to Analyse the “as- is” esses that have the potential to be im- necks and issues related to the procedural, regulatory, and documentary analyse and identify any processes and proved requirements that should be improved and how to improve them. bottlenecks and recom- identify bottlenecks mendations for improve- ment. Rather, incrementally collect them along various phases of the process analysis study. Step 6: Develop Final report with recommendations for Consult relevant stakeholders to find out the limitation of what can and Do not assume that all and propose process simplification, which may include cannot be done for process improvement recommendations. proposed recommendations recommendations diagrams of “to-be” business processes can be implemented. Listen to their reasons why a particular procedural, regulatory, or documen- tary requirement is necessary.
  5. 5. 3. Business Process Analysis Guide to Simplify Trade Procedures The steps within each phase require that a Step 1: Define the project scope series of activities be carried out. These activi- ties will be explained in Section 3B. It is highly Step 1 aims at identifying a frame of reference recommended that validation and verification for further detailed business process modeling activities are embedded in each step to ensure work. Using the UML use case diagram, this the accuracy and comprehensiveness of the view illustrates the high-level business pro- outputs. Such validation and verification can cesses and actors associated with each of be achieved through several rounds of a peer them. review performed by relevant stakeholders of the business process analysis exercise. Re- This step includes seven necessary activities, finement shall be made until the quality of as illustrated with the UML activity diagram in outputs is acceptable. Figure 3.3. Its detailed description is provided below. The six steps described in this guide, together with deliverables of the business process Activity 1.1 analysis report, are summarized in Table 3.2. The same table also provides guidance on Project sponsor identifies “a business domain” what should be done (the “Do’s”) and what of interest. A business domain is usually the should be avoided (the “Don’ts”) in conducting name of the industry (such as frozen shrimp the business process analysis exercise. export) or service (such as customs clearance) whose business processes are subject to the 3B INDIVIDUAL PHASES, STEPS business process analysis exercise. (See Box 3.1 for an example) AND ACTIVITIES To initiate a Business Process Analysis it is The rest of this Chapter will discuss the three crucial that the project sponsor clearly speci- phases of the business process analysis, de- fies: tailed steps involved in each phase and activi- ties necessary to complete the steps. • The stage of the international supply chain Phase I: Scope setting that he/she is interested in analysing - i.e. “Buy”, “Ship”, or “Pay”; and The objective of this phase is to establish a • The environment and conditions in which baseline for the implementation and manage- the industry of interest operates and which ment of a business process analysis project. It shall be included in the BPA; i.e. mode of consists of two steps: transport, terms of delivery, terms of pay- Step 1 - Define the project scope ment, and country of destination (given that Step 2 - Develop a detailed work plan and regulatory requirements vary from one ensure resources. country to another). Figure 3.2. Stakeholders involved in Step 1 This UML use case diagram indicates that Step 1 “Define Project Sponsor 1) Define project project scope” requires the participation from: definition – Project Sponsor Process Participants/ – Project Manager/Project Leader Business Domain Experts – Process Participants/Business Domain Experts Project Manager/ Project Leader 15
  6. 6. Business Process Analysis Guide to Simplify Trade Procedures Figure 3.3. Activities involved in Step 1 Project Manager/ Process Participants/ Project Sponsor Project Leader Business Domain Experts Conduct Identify a desk research business domain of interest Extract key process participants and business processes Visualize collected information Use Case Review and Diagram provide feedback Inaccurate Accurate Approve Box 3.1 Case study – define the project scope Recognizing the need for a greater efficiency in documentary procedures related to international trade transactions, Thailand has prioritized the establishment of the Single-Window e-Logistic Platform as the national flagship project. Progress towards the establishment of the Single-Window e-Logistic Platform was hindered by several factors, one of which was the absence of knowledge about the integrative nature of processes performed by different parties and about information flow throughout the international supply chain. In response to this shortfall, the Department of Export Promotion (under the Ministry of Commerce) commis- sioned an in-depth study on the export process with the following objectives: • To drive formalization of the export process; • To investigate interrelationships among processes, information, and stakeholders, as well as related laws and regulations; • To provide a basis for simplification of procedural requirements and harmonization of data requirements; and • To facilitate automation of international trade transactions, and thus the establishment of the Single-Window e-Logistic Platform. Export processes vary by product. It is therefore not possible to carry out the study of the export process for all products at once. Given the resource constraints, it was decided to include only one product in the project. Products were prioritized and rated using the following criteria: • Strategic importance of the product on national economy; • Aggressiveness of competition; and • Degree of willingness of stakeholders to participate in data collection process. Frozen shrimp was the product selected, based on the above criteria. It is one of the country’s strategic export products. The export volume of shrimp has been growing for the past five years. The production of frozen shrimp, in addition, involves the whole chain of production from farmers to manufacturers, retailers, and suppliers. About 80 percent of raw materials for production are sourced locally. Thai producers have been targeted to differentiate their products to deal with direct competition with low-cost Chinese and Vietnamese shrimp. Rice and poultry are also considered as among Thailand’s strategic export products. However, relatively close connection with stakeholders from shrimp exporters, their logistics service providers, and relevant government agencies gave relatively more confidence in achieving the goal of the project. Source: ESCAP from The Analysis of Frozen Shrimp Export Process in Thailand, Institute for Innovative IT, Kasetsart University 16
  7. 7. 3. Business Process Analysis Guide to Simplify Trade Procedures Activity 1.2 - to depict each stakeholder, who Project manager/project leader conducts initial is known as process participant/ desk research to identify core business pro- business domain expert; and cesses that are related to the business domain - to depict all actual associations of interest. between business processes and Activity 1.3 process participants/business do- main experts. Project manager/project leader, based on re- search outcome, extracts key business pro- When there are core sub-business processes, cesses associated with the industry or service project manager/project leader may organize of interest, as well as stakeholders who inter- core business processes into a process area. act with those business processes. Boundaries may be used to group core Boundary Activity 1.4 sub-business processes together. Project manager/project leader documents captured core business processes and stake- An example of a UML use case diagram is holders of the business domain of interest given in Box 3.3. using UML Use Case notations (see table 2.1). Activity 1.5 Project manager/project leader uses the following notations: Process participants/business domain experts review the use case diagram and provide - to depict core business pro- feedback in terms of its accuracy as well as Use case cesses; suggestions for further improvement. Box 3.2. Case study – scope of analysis The Ministry of Commerce, represented by Department of Export Promotion, as a project sponsor, specified that the analysis of the frozen shrimp export process covers all activities in the international trade transaction, which range from “the establishment of commercial contracts”, through “the arrangement of inland and cross- border transportation and export formalities to meet regulatory requirements” to “the payment of the purchased cargo”. Due to the fact that mode of transport, terms of delivery, and terms of payment can vary, the project sponsor agreed to the following assumptions made for the study: • Ship: Shrimp exporters choose ocean freight as a mode of transport, as it is one of the cheapest and most convenient ways to ship goods overseas. • CIF (Cost, Insurance, and Freight): Shrimp exporters in most cases arrange and absorb the cost of shipping their cargo to the port of destination. Minimum insurance coverage is also procured against loss of or damage to the goods during the carriage. • FCL (Full Container Load): For simplicity, the analysis of frozen shrimp export process traces the operation of a sole exporter. It is also assumed that the whole container is intended for a single consignee. • CY (Container Yard) Container Service: For simplicity, it is assumed that CY/CY container service is used. Under such service, the carrier delivers an empty container to exporter’s premises for loading and brings the loaded container back to the container yard. At the container yard, the container waits to be loaded onto the vessel. No unpacking or modification is made. • L/C (Letter of Credit): For simplicity, a letter of credit is assumed as method of payment. Source: ESCAP from The Analysis of Frozen Shrimp Export Process in Thailand, Institute for Innovative IT, Kasetsart University 17
  8. 8. Business Process Analysis Guide to Simplify Trade Procedures Activity 1.6 Activity 1.7 Project manager/project leader revises and/or Project sponsor approves the final version of refines the project scope where necessary, use case diagram. The use case diagram acts based on the feedback from process partici- as a baseline for planning, managing, and pants/business domain experts. carrying out the business analysis study. Box 3.3. Case study – visualize the project scope This UML use case diagram illustrates core business processes used when exporting frozen shrimp from Thailand. It provides the frame of reference for analysing the business processes in detail. The diagram lists all process participants/business domain experts, business processes, and the relationships among them. The diagram shows that the scope of analysis will cover all activities in the international trade transaction, which include commercial procedures, transport procedures, regulatory procedures, and financial procedures. The core business processes are organized according to the UN/CEFACT “Buy-Ship-Pay” model. Given that the movement of cargo has to comply with regulatory requirements, transport procedures and regulatory procedures are closely related. Their main sub-processes are therefore grouped as “Ship”. 2) Ship 2.1) Have product sampled Authorized Private and examined Inspector Insurance Company 2.2) Arrange transport 2.3) Prepare Inland export permit Haulage 1) Buy 2.4) Apply for Importer cargo insurance Customs’ Department of Bank Fisheries Exporter or 2.5) Prepare and 3) Pay Representative submit customs declaration Importer’s Customs Carrier Bank (Shipping Line) 2.6) Load container and transfer to port of departure Port Exporter’s 2.7) Clear goods Authority Bank through customs 2.8) Handle Department of container and stow it on vessel Foreign Trade 2.9) Prepare documents required Department of by importers Consular Affairs The Central Islamic Committee Office Thailand Source: ESCAP from The Analysis of Frozen Shrimp Export Process in Thailand, Institute for Innovative IT, Kasetsart University 18
  9. 9. 3. Business Process Analysis Guide to Simplify Trade Procedures Figure 3.4. Stakeholders involved in Step 2 Project Sponsor 2) Develop a detailed plan and secure Project Manager/ resources Project Leader Process Analysts This process requires the participation from: – Project Manager/Project Leader – Project Sponsor – Process Analysts Figure 3.5. Activities involved in Step 2 Project Manager/Project Leader Process Analysts Project Sponsor Use Case Diagram Identify tasks and sequence of tasks Estimate efforts Develop project schedule Assign process analysts Derive the detailed plan Detailed Review and Project Plan provide feedback Unacceptable Acceptable Review and provide feedback Unacceptable Acceptable Approve 19
  10. 10. Business Process Analysis Guide to Simplify Trade Procedures The use case diagram may be changed at a core business processes represented by use later stage if an inaccuracy is found. The cases in the use case diagram (see Box 3.4 for revised diagram should be approved by the an example), the rest – including the develop- project sponsor before adopting it as a frame ment of integrated activity diagram, time-proce- of reference. dure chart, a list of identified bottlenecks, and recommendations for future improvement – Step 2: Develop a work plan and secure requires only a one-time implementation. resources Activity 2.2 The objective of this step is to develop a Project manager/project leader estimates the detailed work plan that guides and manages effort (man-hours or man-days) needed to the implementation of the business process complete each identified task and to prepare analysis. The work plan should be based on all deliverables. There is no standard bench- the use case diagram developed in Step 1. mark time for each activity required to com- plete the business process analysis project. Based on the use case diagram, the work Likewise there is no one-size-fits-all solution to breakdown structure, which is an output-ori- determine the amount of required resources. ented description of project tasks, can be de- However, the following approach may be help- veloped. This work breakdown structure then ful for time and resource estimation: provides a starting point for estimating project costs, staffing and scheduling. • In conducting business process analysis, great time and effort is spent on collecting Figure 3.5 illustrates activities that a project and compiling data into visual diagrams manager/project leader has to carry out in and written descriptions. There is a set of this step in cooperation with process similar project tasks for elaborating each analysts and under the oversight of the project use case into an activity diagram and pro- sponsor. These activities are further explained cess description. The more process partici- below. pants/business domain experts are involved in a business process that is represented Activity 2.1 by a use case, the more complex and time-consuming the business process Project manager/project leader identifies, in analysis will be. sequential order, tasks required to derive each output of the business process analysis • The first session of a face-to-face data- project. They include: collection interview with each process par- ticipant/business domain expert who is a • Activity diagrams; part of Phase II may take one to two • Process descriptions, including a list of hours. Given that the business process trade forms and documents as well as a analysis is an iterative task, the interview list of trade-related laws, rules and regula- with relevant process participants/business tions; domain experts may be conducted more • Integrated activity diagram; than once. However, the project teams • Time-procedure chart; should avoid conducting more than three interviews with the same process partici- • A list of identified bottlenecks; and pants/business domain experts. • Recommendations to improve the business process and/or to-be business process • Project Evaluation and Review Technique models. (PERT) estimate6 might be used for this purpose. (See Box 3.5) To prepare the work breakdown structure of the project, the project manager/project leader needs to anticipate project activities outlined in 6 Marchewka, J.T. (2006). Information Technology Step 3 onward. While Activity 3.1 – 3.3 and Project Management, 2nd ed. John Wiley & Sons Activity 4.1 – 4.10 have to be carried out for all Inc., Hoboken, NJ. 20
  11. 11. 3. Business Process Analysis Guide to Simplify Trade Procedures Box 3.4. Case study – use cases of core business processes in frozen shrimp export 1) Buy 2.3) Prepare Export permit Exporter or Importer Exporter or Department Customs Representative Representative of Fisheries 2.8) Handle 2.4) Apply container and for cargo stow it on vessel insurance Importer’s Bank Exporter or Carrier Exporter or Insurance (Shipping Line) Representative Representative Company 3) Pay Exporter or Importer Representative Port Authority Exporter or 2.5) Prepare and Customs Representative submit customs declaration Exporter’s Bank Customs Bank Department Exporter’s Bank of Fisheries Authorized 2.1) Have product Private Inspector sampled and examined Inland Haulage Exporter or 2.9) Prepare Department of Representative documents required 2.6) Stuff container by importers Foreign Trade and transfer to port Department of Exporter or of departure Fisheries Exporter or Customs Representative Representative Department of Consular Affairs 2.2) Arrange Inland Haulage Port Authority transport Inland Haulage 2.7) Clear Exporter or goods through The Central Representative customs Islamic Exporter or Carrier Committee Representative (Shipping Line) Office Thailand Customs Source: ESCAP from The Analysis of Frozen Shrimp Export Process in Thailand, Institute for Innovative IT, Kasetsart University Box 3.5. Project Evaluation and Review Technique (PERT) estimate Project Evaluation and Review Technique (PERT) allows probabilistic treatment of activity duration in the estimation. PERT estimate may be used to compute weighted average for each individual task. A three-point estimate includes pessimistic, most likely and optimistic. The equation is as follows: Task Estimate = Optimistic Time + (4 * Most Likely Time) + Pessimistic Time 6 • The Optimistic Time is the minimum time in which a task can be completed. It is the best-case scenario set under the assumption that everything goes as planned and no internal or external obstacles will occur. • The Most Likely Time is an estimate of the expected time that is required to complete the task. • The Pessimistic Time is the maximum time of the worst-case scenario in which the task should be completed. 21
  12. 12. Business Process Analysis Guide to Simplify Trade Procedures Activity 2.3 into the detailed plan for project stakeholders to review. Project manager/project leader develops a project schedule based on the following infor- Activity 2.6 mation: Project stakeholders review the detailed plan • Set of tasks which are identified in a se- and then provide feedback. quential manner Activity 2.7 • Project effort estimates Project manager/project leader revises and • Duration of the project stated in the con- refines the detailed plan, based on the re- tractual arrangement made with the project ceived feedback. sponsor. Activity 2.8 Activity 2.4 Project sponsor, in consultation with other Project manager/project leader assigns pro- project stakeholders, approves the detailed cess analysts to the project. Once again the plan as the baseline for future project execu- number of process analysts required depends tion, monitoring and evaluation. on the project duration. The shorter the project duration is, the larger the number of process Phase II: Data collection and process analysts is required. The responsibilities and documentation required skills of process analysts are listed in Box 3.6. The knowledge about existing business pro- cesses is normally embedded in government Activity 2.5 or private sector employees who routinely con- Project manager/project leader compiles duct the business processes. Such knowledge project time and effort estimates, project is usually not documented, thus impossible to schedules, and project staff (process analysts) analyse and improve further. The purpose of Box 3.6. Responsibilities and required skills of process analysts Process analysts are responsible for the following: • Studying and analysing the current processes (“as-is” processes); • Creation of the business process model; • Developing recommendations how to improve the current processes; and • Designing the new processes (“to-be” processes) in collaboration with other stakeholders. Process analysts should be selected based on the following skills. • Technology skills: Although it is not necessary, basic knowledge of UML notations, especially in use case diagrams and activity diagrams is desirable. Related work experience is complementary. • Business/organization skills: It is important that the selected process analysts know or have an access to the individuals of the business domain subject to the business process analysis study. It is also very useful if they have knowledge of a particular organization or industry associated with the targeted business domain. • Interpersonal/communication skills: The ability of the selected process analysts to effectively communicate and interact with other project members is crucial to project success. They should have the ability to create and sustain reasonably good relationships with project stakeholders and especially Process Participants/Business Domain Experts. • Analytical skills: Ability to think analytically. They should be able to capture relevant information from verbal expression and written documents. They should be able to summarize the information, as well as formulate and document the business processes. 22
  13. 13. 3. Business Process Analysis Guide to Simplify Trade Procedures Phase II is to make the knowledge of these • Names of government and other agencies business processes readily available through and businesses responsible for carrying out documenting them. The documentation then respective activities in the business pro- can serve as a baseline to improve the pro- cesses under examination (e.g. chambers cesses. of commerce, in case of issuance of a non-preferential certificate of origin); Phase II includes two steps: • Contact names and details of potential Step 3 - Acquire background information interviewees in the identified agencies and Step 4 - Conduct interviews and docu- businesses, i.e. officer-in-charge at the op- ment captured data erational level for each activity; • Sequence of actions/activities in a process; Step 3: Acquire background information i.e. processes and procedures required to It is important that process analysts acquire at move goods across the border; the outset as much background information on • Forms and documents associated with the business processes under examination as each action/activity (import/export permits, possible, prior to the face-to-face interviews. SPS certificates7, certificates of origin, Background information could be obtained via commercial invoice, customs declaration, desk research through information publicly etc.). available on the Internet, information portals, and at inquiry points of the agencies or busi- Activity 3.3 The project manager/project lea- nesses involved in the business domain of der reviews the outcome of desk research, interest. including the interview questions, and deter- mines whether process analysts are ready to The background information is useful for pro- proceed with the next step. cess analysts in the preparation of interview questions and makes them better prepared to Step 4: Conduct interviews and document conduct face-to-face interviews. Moreover, it captured data allows them to effectively and efficiently capture the information and data to be collected during The purpose of Step 4 is to conduct the face- the face-to-face interviews and put these into a to-face interviews with process participants/ broader context. Stakeholders participating in business domain experts. Face-to-face inter- this step are shown in Figure 3.6. views are the most commonly used data col- lection method for the business process analy- Activities associated with gathering the back- sis exercise. This process aims to confirm the ground information are described in Figure 3.7, accuracy of the previously collected back- and further explained below. ground information in order to gain an in-depth understanding of each use case or core busi- Activity 3.1 ness process in question. Such comprehensive For each use case (see Box 3.4 for example), information is necessary for creating a visual process analysts conduct desk research, which representation as well as descriptive explana- involves the gathering of the background infor- tion for each use case. mation, related laws and regulations from pub- licly accessible sources such as websites or Once the face-to-face interview sessions with inquiry points of relevant governmental agen- the relevant business process participants have cies and business. been conducted, process analysts consolidate all inputs from interviewees and document Activity 3.2 them. There are three main outputs that should be delivered under Step 4: For each use case, process analysts system- atically record and organize relevant informa- tion into a folder. The folder should contain the following information: 7 Sanitary and Phytosantary certificate 23
  14. 14. Business Process Analysis Guide to Simplify Trade Procedures Figure 3.6. Stakeholders involved in Step 3 3) Acquire background information Process Analysts Project Manager/ Project Leader This step requires the participation from: – Project Analysts – Project Manager/Project Leader Figure 3.7. Activities involved in Step 3 Process Analysts Project Manager/Project Leader Conduct desk research Record and organize information Folder of Review and provide background feedback information Insufficient Sufficient Figure 3.8. Stakeholders involved in Step 4 Project Sponsor 4) Conduct interviews and document captured data Project Manager/ Process Participants/ Project Leader Business Domain Experts This step requires the participation from: – Process Analysts – Process Participants/ Business Domain Experts – Project Manager/ Project Leader Process Analysts – Project Sponsor 24
  15. 15. 3. Business Process Analysis Guide to Simplify Trade Procedures • Activity diagrams Activity 4.1 • Process descriptions, including a list of rel- Process analysts contact potential interviewees evant forms and documents as well as by phone or email to agree on the date, time laws, rules and regulations and venue of the face-to-face interview. As • Time-procedure charts noted before, potential interviewees are se- lected based on their involvement in a busi- The stakeholders and activities involved in this ness process area of interest and the type of step are shown in Figures 3.8. and 3.9. information that they can provide. Process par- Figure 3.9. Activities involved in Step 4 Project Manager/Project Leader Process Analysts Process Participants/ Project Sponsor Business Domain Experts No Oversee the conduct Plan the Invite potential of project tasks interview session interviewee Yes Allocate time for an interview A list of Conduct the Participate in interview interview the interview questions Consolidate collected data A set of activity Review and diagrams provide feedback Accurate Inaccurate Develop textual description A set of process Review and description provide feedback Accurate Inaccurate Integrate consolidated data Integrated Time-procedure Review and activity diagram chart provide feedback Accurate Inaccurate Prepare a submission of all deliverables A set of activity A set of process diagrams description Acknowledge the Integrated Time-procedure project progress activity diagram chart 25
  16. 16. Business Process Analysis Guide to Simplify Trade Procedures ticipants/business domain experts who are in rapport with the potential interviewees. Estab- charge at the operational levels have relatively lishing a good rapport not only increases the more potential as interviewees, as they usually chance of having potential interviewees deal with respective procedures and formalities participate effectively in the planned face-to- associated with the business process of inter- face interview, but also helps create a est on a daily basis. pleasant atmosphere during the interview. Pleasant atmosphere is a vital precondition It is important that process analysts have for a successful and result-oriented interview sound communication skills. Prior to inviting session. the potential interviewees, process analysts need to introduce themselves in a polite, Activity 4.2 friendly, and professional manner. Process Process participants/business domain experts analysts also need to clearly explain the pur- decide if they wish to participate. pose of the interview, how this interview will contribute to the overall business process If process participants/business domain experts analysis exercise, what will be the results of agree to participate, they inform process ana- this exercise and how these will be used. lysts when it is convenient to have a face-to- Doing so allows them to establish a good face interview. If not, process analysts look for Box 3.7. Examples of interview questions Business process analysis: • How many people are involved in this business process? • What are necessary activities that an exporter/importer has to take in order to acquire a particular document? • What are supplementary documents that an exporter/importer has to submit along with the application form when a particular document is requested? • How can an exporter/importer who is to submit the application form collect the requested document (manually or electronically)? • Are copies of documents accepted in lieu of original documents? • Is there any fee that an exporter/importer has to pay in order to acquire the document? If so, how much? • What are the laws or regulations associated with these procedural and documentary requirements? • Which business processes can be carried out in parallel? • Which business process has to be carried out next? Information flow analysis: • With which other actor in the business do you need to communicate? • What kind of data do you exchange? • What kind of information do you send to which actor? Time analysis: • How much time, including waiting time, in average hours or days does it take to complete this entire business process from the beginning to the end? What is the maximum and minimum time? • How many actual man-hours does it require to complete this particular activity in this business process? Cost analysis: • How much on the average does it cost to complete this particular activity in this business process or to process one document? Suggestions for improvement: • What are problems/bottlenecks you encounter in procedures and regulations to import or export? • What are improvements that you would like to see in the near future? 26
  17. 17. 3. Business Process Analysis Guide to Simplify Trade Procedures other potential interviewees who can substitute may also inject their opinions or ideas to for the person who rejected an interview. stimulate the interviewee to express and elaborate his/her ideas related to the sub- Activity 4.3 ject matter. Process analysts prepare a list of questions • During the face-to-face interviews, the pro- based on the background information acquired cess analysts should also seek earlier. The questions need to be easy to interviewees’ opinions and observations on understand and structured in a logical se- any bottlenecks and issues related to the quence to ensure the best possible result. The process, documents, laws, and regulations questions should allow the process analysts to that should be improved, why and how to gain a better understanding of those points improve them. they have previously found unclear. Examples of such interview questions, which were gener- • Process analysts should take notes care- alized from the Frozen Shrimp Export Process fully. All points the interviewees make Analysis, are provided in Box 3.7. should be written down, even though they may sound irrelevant at the moment. Activity 4.4 • Process analysts should provide feedback Process analysts conduct the face-to-face on statements made by the interviewees to interviews with the process participants/ confirm their correctness and understanding business domain experts. It is recommended of the obtained information. that the following issues are taken into • Process analysts should always respect the account. time schedule. A summary of the major • Each face-to-face interview session is at- points should be made before ending the tended by one, or in specific cases, by at interview session. maximum two process analysts. Having two process analysts in the session is in fact Activity 4.5 necessary when the process analysts are Process analysts consolidate all the statements relatively new to the field, or have little made by interviewees into an activity diagram experience in conducting business process for each use case immediately upon their re- analysis. turn to the office. This work should be com- • If the interview is tape recorded, it is pleted within maximally two working days after necessary to obtain permission from the the interview. interviewee prior to the interview. • Although the process analysts conduct the An activity diagram portrays a sequence of interview session with prepared questions activities carried out to achieve a specific which are organized in a logical sequence, goal. It illustrates detailed activities and flows the interview is unlikely to be a question of information or documents from one respon- and answer session. Therefore, it is recom- sible party to another in a given sequence. mended to keep the interview free-flowing During this step, the process analysts might and conversational, however within a basic discover common patterns in the activity dia- structured framework. The best way is grams. Reusing these patterns helps avoid to start with general questions to draw repetition of work and save time. For example, information about a particular business the customs declaration process from the busi- process that is common to all operational ness process analysis of exporting frozen cases. The general questions are then shrimp can be reused in a business process followed by more specific questions not analysis for exporting frozen poultry products. only to seek clarifications but also to iden- Table 2.2 presents the basic elements and tify discrepancies and conditions where notations of an activity diagram that is applied such discrepancies occur. Process analysts in this business process analysis study. should adjust their questions according to Box 3.8 illustrates an example of an activity how the interviewee is responding. They diagram. 27
  18. 18. Business Process Analysis Guide to Simplify Trade Procedures Activity 4.6 Activity 4.8 Process participants/business domain experts Process analysts provide textual description of review the activity diagrams and then provide individual activity diagrams. feedback. Process description has to include the follow- ing elements: Activity 4.7 a) The name of a process area which this Process analysts revise and/or refine individual particular business process belongs to; activity diagrams, as necessary. b) The name of a business process; Box 3.8. Case Study – Activity diagram of “Have the product sampled and examined” use case within the BPA of frozen shrimp export in Thailand Swimlane shows a boundary of activity to be carried out by a responsible actor. Authorized Private Inspector Exporter (or Representative) Department of Fisheries Initial state shows where Have product ready the sequence of for sampling activities begins. Diamond indicates the point where a decision has to be made. Schedule the Notify the date for sampling date sample collection Final flow state indicates that further activities Collect Submit Request cannot be pursued. sample for Sampling Sequence of activities Examine Deliver Request for Collect carried out to achieve sample sample Sampling sample specific goals Object represents a document Record sampling Record the result or information that flows from result of examination one activity to another. Examine Collect sample Test Report Test Report Record result of examination Collect Test Report Test Report Final state shows where the sequence of activities reaches its end with its goals achieved. Soure: ESCAP from the Analysis of Frozen Shrimp Export Process in Thailand, Institute for Innovative IT, Kasetsart University. 28

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