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Developing a Process Flowchart is an important tool in the Business Process Re-engineering activity. It aids in the
visualization of the process steps and the sequence of activities. It is a tool that can assist in finding non-value
added steps and process inefficiencies. It also assists in improving process cycle times and increasing process
productivity. The process is very straightforward, as outlined below:
Develop the Current As-Is Process Model (Figure 1)
1. Identify all the steps in the process and list them in sequential order. Dont leave anything out
including buffers and wait time.
2. Create a top-down Flowchart diagram using a box containing the description of each step, for
every step in the process.
3. Determine the time required to complete each step.
4. Calculate the Total Cycle time for the process by adding the completion time for each step in the
process.
Analyze the Current Process Using Process Re-engineering Techniques (Figure 2)
1. Identify all Non-Value Added Steps. Any step that does not add value to the end product or service
is a non value added step. Non value-added operations include: inspection, test, rework, set-up,
inventory buffers, product movement other than customer delivery - any activity that does not improve
the form, fit, or function of the product on the first pass through the process. (See Figure 2)
2. Calculate the Process time for the Value-Added Steps. Add the Process Times for each ValueAdded Step.
3. Calculate the Work Efficiency for the Current Process. Divide the Total Value-Added Process Time
by the Total Cycle Time for the process. (Multiply by 100 to make it a percentage)
Re-engineer the Current Process to Develop the New Process
1.
2.
3.
4.
Identify all the steps in the New Improved Process. List them in sequential order.
Create a top-down Flowchart diagram using a box for each process step. (Figure 3)
Determine the required time to complete each step.
Calculate the Total Cycle time for the New Process by adding the completion time for each step in
the New Process.
5. Calculate the Process Time for Value Added Steps in the New Process,
6. Calculate the Work Efficiency for the New Improved Process. Divide the Total Value-Added
Process Time for the New Process by the Total Cycle Time for the New Process. (Multiply by 100 to
make it a percentage)
Figure 2
Steel Coil Stock Inv. (96
Hr.)
Only four of the original eleven steps are considered Value Added Steps
The Work Efficiency for the Current Process is only 3.4%
Ideally the Goal would be to eliminater all Non-Value Added Steps. That is rarely possible. The
interim objective is to eliminate as many as possible and reduce the time of the steps that
cannot be eliminated. (Refer to Figure 3)
Value Added
Process Steps
Total Value Added Time =
4.0 Hrs.
Figure 3
Stamp Steel (0.3 Hr.)
Cabinet Construction
(0.2 Hr.)
Value Added
Process Steps
Total Value Added Time =
3.5 Hrs.
New
Improved