Process Modeling. Process Improvemont, and ERP Implementation pAOCESS IMPROVEMENT proess-mapping tools provide the ability to deseribe business processes in a universally anderstood format. Generally, the task of mapping a process requires a team consisting of koy personnel who are involved in the process. Frequently, the aet of accurately jecribing the process, and understanding how the functional areas interact, make it dowous to the team what steps are necessary to improve the process. This is especially the for orkanizations that have previously focused on functional responsibilities rather than business processes. Using the simple technique of value analysis ean also generate process-improvement Ideas. In value amalysis, each activity in the process is analyzed for the value it adds to the produet or service. The value added is an increase in a product's or serviec's value. from the perspeetive of the customer. Activities ean add: - Rcal ealue-Vahue for which the customer is willing to pay - Business talue-Vilue that helps the company run its business - No evalue-An activity that should be eliminated The Fitter expense-reporting process does not provide real value, because Fitter's gustomers do not care whether sales employees recelve prompt and accurate reimbursement of their business expenses. However, the expense-reporting proeess does add business value, and it should provide this value at a minimum cost. Determining the value of a good or service is easy-it is what someone is willing to pay for it. Evaluating the value of part of a business activity, however, is not an exact science because parts of a process cannot be sold on the open market. Although it is a challenging task, evaluating. each activity on the basis of value provided can highlight opportunitics for improvement. Aetivities that cost more than their value added should be improved. The value analysis concept can be expanded to an evaluation of both the time and cost of each process step. For each step in the current process, yoti estimate the actual time and cost. Then you estimate the value-added time and cost-determining how much of the actual time is adding value and how much of the cost is worth paying for. We will use the "Mail expense report" function of Fitter's expense-reporting process to Ilustrate value analysis. This function could cost upwards of 850 , including not just the cost of the envelope and postage, but also the time spent by the salesperson to mail the expense report. The value analysis includes the elapsed time for mailing the expense report, including the time it takes the salesperson to tind a mailbox, the time the postal sentee takes to deliver the expense report to the company headquarters, and the time it takes the company's internal mail system to deliver the expense report to the Suppose that for Fitter the elapsed time is typically three days. To perform value sales manager: analysis, you would determine how much of this time and cost is value added. To determine this value, you must view the activity "Mail expense report" in terms of what is actuily beins accomplished. In this ease, it is not the physical transmission of paper that matters. Mailing the expense report is a means to transmit expense data and doeumentation. Email could minimize the time and cost required to transmit that data; therefore, mailing an expense report at a cost of $50, to arrive in three days, is only providine value worth pennies (which is the cost to send am emait) in a function that. could be cxecuted within seconds Looking at the current time and eost of each process - Evaluate the types of value added by each step in a business process. Consider Time and Money Provide examples of each based on either the Chapter 7 expense report process or your own experience. See page 197. Company names should not be explicit. Use "Acme" or "FirmX