Gather process data

This topic will introduce the skills and knowledge required to gather process data. Strategies for identifying information related to processes and walkthrough case studies will also be discussed.

In this topic, you will learn how to:

• Identify business functions
• Collect process data
• Identify external events, procedures and results
• Identify processes and decompositions.

watch

In this video (2:21 mins), Henry shares some tips to keep in mind when gathering process data.

Understanding business functions

Business functions refer to specific activities and tasks that are essential for the operation of a business. These functions can vary depending on the size, industry, and structure of the company.

Identifying business functions

Identifying and defining business functions is a crucial step in understanding how a business operates and organising its activities.

Here are steps to help you identify business functions within an organisation:

• Review organisational structure and documentation: One would often examine the existing organisational structure and other documentation as it often reflects the different functions within the company. Departments or teams may already be organised around specific functions, making it easier to identify them.
• Seek input from stakeholders: Engage with key stakeholders, including employees, managers, and executives, to gather their perspectives on the organisation's functions. Their insights can be valuable in identifying functions and understanding their importance.
• Use technology and tools: Utilise business management software, tools, or ERP (Enterprise Resource Planning) systems, which often include predefined functions and modules that can help you identify and manage business functions.

The following diagram shows some common examples of business functions. Notice the function levels indicated in the diagram:

A business function is a high-level activity of an organisation.

These high-level business functions tend to be more stable and are not subject to change very often. Whereas the procedural-level functions and activities are often frequently refined and improved. For example, automation vs. human effort (i.e. the process is the same versus the mechanism for completing the process).

Remember that business functions can vary from one organisation to another, even within the same industry.

Collaborate with stakeholders

watch

This video (2:36 mins) discusses the importance of collaborating with stakeholders to understand project requirements better. Remember that the rapport you build with stakeholders at this stage will be helpful throughout all other project phases.

Case study

XYZ Manufacturing

XYZ Manufacturing is a global manufacturer that specialises in producing custom machinery for industrial clients. They have production facilities in several countries, including Canada, France, Mexico, Germany and the United States. Operational workflows and Procedures: XYZ Manufacturing_Operations and Procedures_v1 Data flow diagram: XYZ Manufacturing_Dataflow_Diagram_v1

Case study activity

Read the case study above and refer to its two organisational documents to learn how XYZ Manufacturing conducts its business operations. Practice using your analytical skills to learn about the business functions of XYZ Manufacturing, focusing on the big picture.

Complete the two questions in the following activity. You may repeat these as often as you like. Use the arrows to move between the questions.

Understanding process data

A process relates to an activity in a business area.

Process data refers to the information, facts, or observations generated, collected, or used during the execution of a business process or workflow within an organisation. This data is often intrinsic to the functioning of the process and can take various forms, including the following.

• Transactional data: Information related to specific activities or transactions within a process. For example, sales orders, purchase orders, invoices, and customer feedback.
• Operational data: Data that reflects a process's ongoing operations and performance. This may include production metrics, equipment status, inventory levels, and resource utilisation.
• Log and audit trails: Records of actions, changes, or events within a process. Log and audit trails are essential for tracking process history and ensuring compliance.
• Resource data: Information about the resources (human, equipment, materials) involved in the process, including resource assignments, availability, and performance.
• Customer and supplier data: Information about the parties involved in the process, such as customer contact details, supplier information, and communication logs.
• Communication data: Records of communication within or related to the process, such as emails, messages, and collaboration notes.

Case study activity

Focus on the Production department of XYZ Manufacturing and refer to the Data Flow diagram and Operation workflows and procedures documents to find relevant information about this work area.

Complete the two questions in the following activity using the information you’ve obtained regarding the workflow and operations of the Production department

You may repeat this activity as often as you like. Use the arrows to move between the different activities.

Case study walkthrough: collecting process data

Consider this case study which illustrates how to collect business process data within an organisation:

Use the five steps below to collect process data. By doing so, you can successfully identified XYZ Manufacturing Company's core business functions and process data. This information will serve as a foundation for process improvement and optimisation efforts, helping the organisation achieve its strategic objectives.

Step 1: Interact with stakeholders

You begin by conducting interviews with key stakeholders at XYZ Manufacturing, including the CEO, operations manager, production supervisors, and sales representatives. During these interviews, you ask questions about their roles and responsibilities, the tasks they perform, and the data they need to carry out their functions.

Step 2: Analyse the data flow

Next, you conduct a data flow analysis to trace how data moves through the organisation. You start by examining the sales and order processing process:

Step 3: Cross-functional collaboration

To gain a holistic view of the organisation's functions, you organise cross-functional workshops with sales, production, and operations teams. Participants discuss their interactions and dependencies, further clarifying the functions involved in each area.

Step 4: Business rules analysis

Incorporate business rules analysis as part of your process to identify business functions and process data. Business rules are explicit guidelines that govern how specific organisational tasks or processes should be performed. They often define conditions, actions, and data requirements.

Here's how to incorporate business rules analysis:

• Collaborate with subject matter experts (SMEs) and stakeholders to identify and document relevant business rules. These rules may be documented in policy manuals, procedure guides, or through discussions with SMEs. A business rule is a statement that defines or constrains some aspect of the business. For example, "All invoices must be paid within 30 days."
• Analyse the identified business rules to uncover the functions or processes they pertain to. Business rules are typically associated with specific activities, tasks, or decision points within a process. When analysing business rules to collect process data, it may be required to:
  • Group the rules into categories based on the functional areas, such as Sales and Marketing, Finance and Accounting, and Operations and Production.
  • Assess each rule's relevance, effectiveness, and efficiency. Determine if any rules are outdated or redundant. Also, identify rules that may be missing or need improvement.
  • Prioritise the rules based on their criticality to the business, compliance requirements, and impact on operations.
• Pay attention to data-related business rules, as they often dictate how data should be collected, validated, and used within processes. These rules can help identify critical data elements and dependencies.

Step 5: Document

Based on the information gathered, you begin documenting the identified business functions:

• Sales and customer relationship management
• Production planning and scheduling
• Inventory management
• Quality control and process optimisation
• Order processing and quoting

You need to document the relationship between business rules and functions/processes. Create a matrix (see the example below) or map that associates each business rule with the corresponding function or process step.

An example matrix

Creating a matrix to show the relationship between business functions, process data, and business rules for the XYZ Manufacturing case study can provide a clear overview of how these elements interact. Here's a simplified example of such a matrix:

In this matrix:

• The left column lists the identified business functions within XYZ Manufacturing.
• The middle column outlines the process data associated with each function.
• The right column specifies business rules relevant to each function and its associated data.

This matrix provides a clear overview of how specific data elements and business rules relate to each business function within the organisation. It can serve as a reference for stakeholders to understand the dependencies and requirements associated with each function and the data and rules that support it. Keep in mind that this is a simplified example, and a comprehensive matrix may include additional details and dependencies.

Identifying external events, procedures, and results is essential to comprehensively understand an organisation's processes. This will provide a holistic view of how the organisation interacts with its external environment, how tasks are executed, and what outcomes are achieved.

Continue with the XYZ Manufacturing case study and find out how to identify these elements.

Identifying external events

External events are occurrences or triggers that initiate or impact a business process. They can come from outside the organisation and often require a response.

Here are some examples from the XYZ Manufacturing case study:

• Customer orders: Customer orders received from clients are external events that trigger the sales and order processing function. These orders initiate a series of organisational actions to fulfil customer requests.
• Supplier deliveries: The delivery of raw materials from suppliers is another external event. It initiates the inventory management function, as the organisation needs to receive and record the materials for production.
• Regulatory changes: Changes in industry regulations or standards can be external events that impact multiple organisational functions. They require the organisation to adapt its procedures and processes to remain compliant.

Identifying procedures

Procedures are documented steps or actions that individuals or teams follow to complete specific tasks or achieve specific goals within a process.

Here are some examples from the XYZ Manufacturing case study:.

• Order processing procedure: Outlines the steps for processing customer orders, including order validation, pricing, and order entry.
• Production scheduling procedure: Details how production schedules are generated based on customer orders and available resources.
• Quality control procedure: Specifies the steps for inspecting and ensuring the quality of manufactured products.
• Inventory replenishment procedure: Outlines how inventory levels are monitored and how reordering of raw materials is managed.

Identifying results

Results refer to the outcomes or outputs generated as a result of executing business processes. These tangible or intangible outcomes may impact subsequent processes or decisions.

Here are some examples from the XYZ Manufacturing case study:

• Completed products: The production process results in the creation of completed machinery or products ready for shipment to customers.
• Shipping confirmations: Once products are shipped, shipping confirmations are sent to customers to notify them of the shipment's status and expected delivery date.
• Updated inventory levels: Inventory management processes result in updated inventory levels, which impact future production planning and procurement decisions.

How business rules relate to events, procedures and results?

External events, procedures, business rules, and results are interconnected within the organisation's operations. Business rules serve as the guidelines that ensure that procedures are executed consistently and that the results align with the organisation's objectives, customer expectations, and regulatory requirements. The following points explain how business rules work together with events, procedures and results:

• External events trigger procedures: External events, such as customer orders or supplier deliveries, trigger specific procedures within the organisation. For example, customer orders initiate the order processing procedure, while supplier deliveries initiate the inventory management procedure.
• Procedures enforce business rules: Within each procedure, business rules are applied to guide and enforce how tasks are performed. For instance, the order processing procedure ensures that orders adhere to rules such as order validation.
• Results are affected by rules: The results of each procedure are influenced by the business rules. For example, the customer delivery measurement (rule) is the number of days it is expected to be delivered.

Case study example

Let's explore the ‘Order validation rule’ within the XYZ Manufacturing case study and how this rule relates to external events, procedures, and results.

According to the ‘Order validation rule’, orders must include valid product specifications. This rule applies within the order processing procedure. When a customer order (external event) is received, the order processing team follows a procedure to validate the order. One of the rules within this procedure is to ensure that the product specifications in the order are valid. The result is either an accepted order or a rejection, depending on the rule's outcome.

Breaking down this information using a table as follows helps understand the external events, procedures and results clearly.

Case study activity

For the following business rule descriptions, examine how they relate to external events, procedures, and results and document this information in a table:

• According to the ‘Production scheduling rule’, work orders are generated based on order requirements. This rule is part of the production scheduling procedure. When valid customer orders are received (external event), the procedure involves generating work orders to schedule production. The result is a production schedule that dictates what needs to be manufactured and when.
• According to the ‘Quality inspection rule, products must pass quality inspections before shipping. Within the quality control procedure, this rule dictates that products must undergo quality inspections before they can be shipped to customers. The external event triggering this is the completion of production. The result is either a "pass" or "fail" outcome, affecting whether the product can proceed to shipping.
• According to the inventory replenishment rule, inventory levels are updated in real-time. This rule is embedded in the inventory management procedure. When external events like supplier deliveries occur, the procedure involves updating inventory levels in real-time. The result is an accurate representation of inventory availability for production planning and procurement decisions.

To identify processes and their relevant decompositions within the XYZ Manufacturing case study, list the high-level business functions identified in the previous discussions. Then, break down these functions into more detailed processes and sub-processes where applicable.

Identifying processes

According to the XYZ Manufacturing case study, the high-level business functions can be identified and listed as follows.

• Sales and customer relationship management
• Production planning and scheduling
• Inventory management
• Quality control and process optimisation
• Order processing and quoting

Decomposition approach

By decomposing the high-level business functions into more detailed processes and sub-processes, you gain a more granular understanding of how each function operates. This breakdown helps in several ways:

• Process clarity: It provides clarity on the specific steps and activities involved in each process, making it easier to analyse and optimise individual components.
• Responsibility allocation: By identifying sub-processes, you can assign responsibilities to different teams or individuals, streamlining workflow management.
• Performance measurement: You can establish key performance indicators (KPIs) for each sub-process, enabling more precise performance measurement and improvement tracking.
• Integration opportunities: Recognising the interdependencies between sub-processes highlights integration opportunities for smoother operations.

This decomposition approach provides a structured framework for process analysis, optimisation, and management within XYZ Manufacturing, ultimately contributing to enhanced efficiency and effectiveness in their operations.

Identifying relevant decompositions

Now, let's delve into the identification of processes and their decompositions for the ‘Sales and customer relationship management’ high-level function:

Sales order processing process:

• Sub-Process: Order validation
• Sub-Process: Pricing calculation
• Sub-Process: Order entry
• Sub-Process: Customer inquiry handling

Customer Relationship management process:

• Sub-Process: Customer communication
• Sub-Process: Customer feedback handling
• Sub-Process: Sales quote generation

Sub-process types in BPMN

watch

This video (2:22 mins) explains subprocesses and how they can be represented in BPMN diagrams.

Knowledge Check

Complete the two questions in this knowledge check.

You may repeat this activity as often as you like. Use the arrows to move between the questions.

Identifying the sequence of tasks and sub-processes

Task types in BPMN

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This video (1:58 mins) explains the different task types in BPMN.

Knowledge Check

Complete the two (2) questions in this knowledge check.

You may repeat this knowledge check as often as you like. Use the arrows to move between the questions.

Decomposition of a sub-process

Let us further decompose the "Order Validation" sub-process within the "Order Processing Process" into a sequence of user tasks, service tasks, or sub-processes. The goal is to provide a detailed breakdown of the steps involved in order validation:

This decomposition of the "Order Validation" sub-process provides a detailed sequence of tasks and activities involved in ensuring that customer orders are accurate, complete, and ready for further processing. Each task is either performed by a user (typically a customer or sales representative) or automated through system services. This level of detail helps in clarifying responsibilities, streamlining workflows, and improving the efficiency of the order validation process within XYZ Manufacturing.

How did you go?

Congratulations on completing your learning for this topic Gather process data.

In this topic, you learnt how to:

• Identify business functions
• Collect process data
• Identify external events, procedures and results
• Identify processes and decompositions.