applying process management in port understand the basics

8/11/2019 Applying Process Management in Port Understand the Basics

1/28

Dr. Phanthian Zuesongdham

Maritime Logistics Module:

Port Financing and Management,

Services in Port

Applying Process Management in PortManagement Understand the basics

05 February 2013


2/28

Definition of Process and defining process scope

2Dr. Phanthian Zuesongdham

The important questions:

Definition of process objectives: What goals

does the process should acheive?

Main process steps: What are the important steps

of the process, which leads it towards its goals?

Added-Value:Why do we need this process?

What kind of value does it bring to the

organisation?

Start of process: What triggers the process?

Time / Condition / Specific Information oraction

End of process: What is the last activity of the

process?

Sub-Process:Does any main process need more

details? If yes, make it as a sub-process.

Frequently defining process scope is the most important step of a successful process modelling

Added

Value

Process

Start

Process

End

Sub-Process

Main Process


3/28

Process and its components (example: application management)


Job-Ads is

published

Confirm the

submission of

theapplications

Evaluate the

applications

Sendrejection to

applicans

Invite

applicants

Conduct job

interview

Send

employment

contract

Applicant

is

employed

Main process

Contact

applicants

Coordinate

appointment

with all

involved

parties

Reserve

room for

interview

Sendconfirmation

of interview

appointment

Sub-process

Activity (the most granular level of a process)

Start

EndEnd


4/28

Process management


What you cannot measure, you can not manage - What you cannot manage, you cannot control and steer it!

Advantages of process management:

Transparency of processes and reduction of complexity

Improved communication

Interoperability, integration and harmonisation of process and IT-systems (Information flow)

Increases of effectiveness and efficiency

Ability for planning

Ability to evaluate, control and steer the process optimisation

Enhancement of process orchestration (Smooth flow of activities, process coordination, task

division ensured)


5/28

Process Management and its relation to other corporate components


Strategic Development

Operational

Level

Management

Level

Strategic Level

Process Management

Workflow Management

Definition of

Process Scope Process Modelling Process Execution

Workflow modelling Workflow Execution Process Monitoring

Software Application

Design Organisation Design


6/28


Roles in Process Management

Name of Role Description of Tasks

Process owner Set up scope, resources, time frame, objectives and contrains of the process

Responsible for a process set / area

Control, communicate and coordinate process manager / coordinator

Process manager /

coordinator

Plan, monitor, control the process execution / implementation on daily operation

Responsible for documentation, validation, updating of a process, report to process owner

Optimise the process and improve efficiency and effectiveness of process continuously

Process consultant /

coach

Coaching, training, guiding and facilitating interdepartmental co-operation

Enabling the capablity of other roles in process management to properly perform their tasks

(Knowledge transfer on techniques and methodology, mentoring)

Process designer Design process sequences keeping in mind of other organisational and technical interfaces

involved in the process

Redesign on the process by using information from process manager or others

Process executor Execute / practice process according to process documentation

Provide feedback on process

Collect information and being the source of information for process reporting

Chief Process Officer

(CPO)

Control the process owner to be inline with company strategies, report directly to CEO

Responsible for process orchestration, develop strategies and implementation plan on process

management


7/28

Process documentation


Presentations of described process could be done in different ways. The most popular ones include: Process landscape,

process description and process model

Process landscape and Co.

Process landscape Process description Process Model

Giving overview of the whole processchain in an organisation

Serving as a guideline for processexecution

Serving as a look up of process details


8/28

Various process views


Real horse

Process model Reduction of reality

with a specific purpose


9/28

How to describe a process?


There are many possibilities to describe a process.

Visual description with diagramm, pictures, video,

etc.

Textual description

Process modelling tools:

Paper and pencil

Whiteboard, post-it, cardboards

Editable patterns or shapes

Process modelling softwareVideo camera

Recording programm

Forms

Lets start with paper and pencil!

http://www.youtube.com/watch?v=lEuVHafQddA&NR=1


10/28

Process Attributes


Possible process attributes

Inputs /Outputs Added-Value in the value chain

Role Business Rules

Data / Information / Document / System Probability

Processing time Edle time

Performance indicator Target value of performance

Risks Costs (direct and indirect)

Process methods Qualification of personnel required

To support on structure, analysis and management of processes

*Quelle: EABPM 2009, pp.57-58.


11/28


Standards to be defined for process management systemWhy do we need them?

Standards

Facilitate the unity of implementation of process management within an enterprise and enhance the common

understanding between the involved parties Standards could include:

1. Business / Enterprise Architecture and IT Architecture

2. Process modelling language Process language (also called process notation)

3. Process modelling software

4. Process Maturity Model (to monitor and evaluate the progress of process management implementation)

ProcessesBusiness/Enterprise

Architectu

re

IT

Archtechture

Corporate goals

Common Language

(Modellig language)Standard tools

(Software, Checklist)

Measuring progress

(Maturity Model)


12/28

Continuous Improvement Process


Define the

objectives ofprocessmanagement

Define the

objectives ofprocessmanagement

Define the processto be investigatedDefine the processto be investigated

Capture As-Is-Process

Capture As-Is-Process

Analyse As-Is-Process

Analyse As-Is-Process

Design To-Be-Process

Design To-Be-Process

Validate To-Be-Process

Validate To-Be-Process

Implement andMonitor ProcessImplement and

Monitor Process


13/28

Process Analysis the aspects

Make sure that the process objectives are clear and understood by everyone involved in

the processes

It is important to investigate the variety and deviation of the process executed in the reality

in comparison to what was document.

It is important to know, how often the process is executed, if there are varieties of theprocess and how often these varieties take place.

It is important that all involved parties / interfaces play the role in the process and how.

It is important to know which failure occur in the process and how often it happens



14/28

Process Analysis contents and techniques


Process analysis is a neutral capturing,

documentation and investigation of a as-is-process

or situation.

The level of goal achievement and expected result

is to be evaluated.

Presence and future are observed:

Problems in processare to be investigated,

evaluated and the solutions are to be defined.

Strengths, weaknesses, chances and risks

are to be identified

Room for improvement will be identified and

discussed.

Process analysis is an important instrument for the

continuous improvement.

Content of process analysis Analysis Techniques

Process

pattern

analysis

Decision

analysis

Distributionanalysis

Causal / Root

cause analyis

Sensitivityanalysis

Risk

analysis


15/28

Increasing efficiency Identification of a consequence of

a decision

Increasing ability on identifying a

specific occurrence

Techniques for process analysis (1/2)


Identify of process patterns, which

could be integrated or grouped to

another process

Identification of duplication of

activities and systems in a process

Process Pattern Analysis Decision Analysis Distribution Analysis

Understanding for the reasons of

development of a process

Support on development of a new

process

Decrease decision making activity

which is not relevant or value-

added to a process.

Comparision of data containing the

same characteristics

Visualisation of distribution of the

data sets

Forecast of the probability of a

specific condition / occurence

1 2 3


16/28

Reduction on repetition of failures Promoting more understanding on

process quality

Minimise the consequences of r isk

of a process

Techniques for process analysis (2/2)


Post-identifcation of a cause for a

specific situation

Certains step to follow:

Data collection,

Data evaluation

Analysis on cause-impact-relationship (in a diagram)

Causal / Root Cause Analysis Sensitivity Analysis Risk Analysis

Investigation of consequences

causing by changes of process

parameter or process steps

Remission of modifiability of a

process

Identifcation of diversification in a

process caused by different

parameters in the process

Observation of all relevant

influences and risks of a process

Risk identification

Risk assessment

Risk management

4 5 6


17/28

Examples of questions for process analysis


How was the process assessed as a whole?

How efficient / how effective is your process?

Understandingprocess

environment

KeyPerformance

Indicator (KPI)

Interaction withCustomers

Interfaces

Prerequisite /General

conditions

Human /Personnel

Bottlenecks

What should be achieved by the process?

What added value is to be achieved?

How can the process effectiveness and

efficiency be measured?

Is the customers expectation achieved?

What kind of interfaces exists?

How are they recognised / perceived?

Which conditions has influences on the

process?

At which steps of the process could the

bottleneck happen?

Do the involved parties in the process know

about their tasks and responsibil ities?

Does the process fulfil all requirements on

the targeted KPIs?

How could the customers be involved /informed about the process?

Which interface is critical for the process?

How flexible is the process if the general

conditions change?

Why does the bottleneck exist?

Is the process transparent? What

consequences could occur by automation?


18/28

Methods for process re-design 1/2


Total or partial el iminat ion Process step /-element paral lel isat ion or consolidat ion

As-is-Process

To-be-Process

Process 3Process 1 Process 2 Process 4

Prozess 1 Prozess 2 Prozess 4 Improve-ment

As-is-Process

To-be-Process

Sub-process 2Sub-process 1 Sub-process 3

Sub-process 1 Sub-process 3

As-is-Process

To-be-Process

Process

3

Process

1

Process

2

Process

4

Improvement

Process

5

Process

3

Process

1

Process2

Process4 und 5

Improvement


19/28

Methods for process re-design 2/2


Process with Triage Add new process

As-is-Process

To-be-Process

As-is-Process

To-be-Process

Process 3Process 1 Process 2

Process

2Process

1Process

2*

Process

3

Pro-

cess

3

Pro-

cess

1

Pro-

cess

2

Pro-

cess

4

Pro-

cess

5

Pro-

cess

7

Pro-

cess

6

Pro-

cess

3

Pro-

cess

1

Pro-

cess

2

Pro-

cess

4

Pro-

cess

5

Pro-

cess

7

Pro-

cess

6

Triage Improvement

Improvement

Improvement

Process

3*

Improvement through added-value for customer

Beside these methods, experiences from the daily operation and common sense is crucial for process redesign. Be

practical, innovative and no fear for change!


20/28


How to cope with resistence for change?

Investigate on the exact causes of

resistence and assess them

Resistence always implies key messages.

Figure them out!

Go along with resistence and not against

it.

Distribute required information and design

active communication concept

Optimise involvement and cooperation inthe process Involve colleagues in

change process (i.e. regular report about

ongoing activities)

Resistence can be reduced through active communication and proper measures.


21/28

Key Success Factors for Process Implementation and monitoring

Focus on people as much as on process

All employees should not only be informed about

their specific processes but also the whole process

chain and their context to understand the

interdependencies.

Common understanding on process is a key.Everyone understand, why thinking in process is

important.

All persons concerned will be engaged intensively in

activities on process designed or be informed

properly

Intensive communication on objectives and scopes

of process is very important.



22/28


23/28

Dr. Phanthian Zuesongdham

Maritime Logistics Module:

Port Financing and Management,

Services in Port

Applying Process Management in PortManagement Example of HPA

05 February 2013


24/28

Why Process Management at HPA?


Process management is perceived as one component in the integrated and

sustainable management system.

Ensuring continuous improvement of all processes

Port environment (processes and interfaces) is very complex and requires a system which

could enhance the ability for steering and management of port activities

Fulfiling increasing requirements on integration and harmonisation of processes and

systems

Serving as a medium for common understanding on processes and communication basis

for continuous process optimisation and improvement as well as a measurement for

knowledge management

Process Management enhance our efficiency and steering capability.


25/28

Example: Key process areas at HPA


Management Processes

Kernprozesse

Supporting Processes

Infrastructure Project

Realisation

Port Infrastructure

MaintenancePort Planning

Port Road Rail Waterway

Infrastructure

Management

Real Estate Management & Administration

Real Estate

Port Road Rail Waterway


26/28

Example of Management Processes

Quality Management

Personnel Development

Corporate Finance

Business Development

Strategy Development



27/28

Example of Supporting Processes

Personnel Services

IT Service Management

Facility Management

Procurement

Financial Accounting



28/28

Relevant Port Processes from Ship Arrival til DepartureExample of HPA PRISE


Source: DAKOSY and HPA, 2012

applying process management in port understand the basics

Documents