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What is Process Flow?

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Have you ever been stuck in an airport security line because of one bottleneck? It's not just frustrating--it's also inefficient. The concept of "flow" is important in business as well. This meet-up defined "flow" in the process context as well as the biggest driver of creating flow. Specifically, we focused on the biggest driver of creating flow: planning processes to "pull" instead of "push".

Publié dans : Business
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What is Process Flow?

  1. 1. What is Process “Flow”? Highlights and Q&A - NYBPP Meetup 07.26.2018 | CAVI CONSULTING
  2. 2. Samuel Chin Samuel is the co-founder and chief process scientist for Cavi Consulting, a process science consultancy helping businesses to remove obstacles to energy flow and more effectively automate, scale and grow. Experience Samuel has consulted for small-to-enterprise level companies across a wide range of sectors and verticals, including financial services, resources, legal services, media and digital services, in both the for profit and nonprofit domains. Education and Certifications Samuel holds an MBA from the University of Richmond, and a B.A. from the University of Virginia. Samuel is certified in Lean, Six Sigma, Change Management (PROSCI), and Project Management (PMP and CSM).
  3. 3. Agenda ● Energy flow ○ Defining Flow ○ Understanding Energy Flow ○ Business Energy Flow ○ Measuring and Improving Flow ○ The Power of Pull ○ Flow Strength and Value Creation ○ Summary ● Q/A ○ Is there an upper limit to flow rate in a process? How do we know what it is? ○ Does this flow relate to cognitive flow? ○ Is all value measured the same way with the same metrics? ○ If your company makes custom services or products, can you still consistently measure flow?
  4. 4. What is Flow? ● Flow represents directional, continuous, uninterrupted motion ● Flow has power and requires energy to be opposed!
  5. 5. Understanding Energy Flow Process science is the study of how energy flows through the universe, specifically through nature, humans, and businesses. When applied to business, process science helps professionals accurately see and understand the pattern of energy flowing through an organization so that it can be managed for efficient business outcomes.
  6. 6. Business Energy Flow The energy that flows through business is human labor (physical energy) and money (representation of physical energy displaced in time)
  7. 7. Measuring Energy Flow It is easier to visualize with a process map, but flow is the amount of units of value can be created through a process (units/time). Cost and time measures associated with a single unit through the process qualify flow dimensions
  8. 8. Improving Flow If a process wants to create more value, it has to have more energy “flow” through it. Reducing energy in to a process and yielding more value out of it is a matter of removing obstacles to this energy flow. Process Improvement is the act of increasing value creation from a process by identifying and removing obstacles to energy flow
  9. 9. Increasing Energy Flow Increases Value Creation By identifying and removing obstacles to flow, your company can expect: ● Improved quality and value creation of all outputs ● Less energy required for (reduced cost) of operations ● Faster cycles for business changes and continuous improvement activities ● Improved ability to measure, analyze, and control processes FLOW
  10. 10. The Power of Pull Using a “pull” rather than a “push” system is foundational to effective process design and increased flow. Allowing consumption to pace inventory is a “pull” approach. The market, or environment, sets the pace - your job is to remove obstacles! ● Reducing WIP, and producing outputs in a market-aligned, just-in-time fashion, has a big impact on waste reduction and smooth process flow-through.
  11. 11. Flow is Created by Value Creation Between two equal benefits with different costs, given conditions of energy scarcity, you can see that a pattern, or a “pull” is created. People will invariably conform to putting their energy where value creation is highest; value being defined by the conditions of the environment around you. It follows that over time, people will stop spending energy on benefits that yield less value than similar options, and the inferior option will eventually cease to exist. It is in this way that all processes that produce value create a “pull” from the environment
  12. 12. ● Flow is directional, continuous power found moving within our universe ● Energy flows through processes to create value ● In business, human labor and money represent the energy flowing through the process ● Measuring flow is done by measuring units of value creation per unit time being created by a process scope ● Process Science is the continuous application of removing obstacles/barriers to a business’s energy flow. By improving energy flow, the business can produce more value (increase profits, reduce costs) ● Pull sets the pace of processes because it is aligned with universal value creation ○ If your process is designed around pull principles, it will have increased flow! Summary
  13. 13. Q&A Answering questions from the meetup
  14. 14. Question 1: Is there an upper limit to flow rate in a process? How do we know what it is? ● Process Entitlement is the best process capability that could be expected from the current process design. ○ In other words, this is the best level of performance you can expect given the inherent limits of the way your process is set up. ● Constraints can further decrease productivity and prevent a process from reaching this best possible outcome of entitlement. ● The entitlement state of a process exists so that you can set realistic ranges in which you can expect to improve.
  15. 15. Question 2: Does this flow relate to cognitive flow? Yes! Cognitive flow is increasing natural energy flowing through your body. Business process flow is the same concept: increasing energy flow, except it is increasing the energy for human labor through the process. Both have measurable benefits associated with more energy moving through a process at a faster rate.
  16. 16. Question 3: Is all value measured the same way with the same metrics? No! Because benefits are subjective, value needs to be quantified with different, applicable, metrics based on the service or goods being provided.
  17. 17. Question 4: If your company makes custom services or products, can you still consistently measure flow? Yes! Even though each product/service may be different, you have a stable operating project (even if it is producing unique projects) and will find there a common value production that underlies all the work. It is defining and measuring this common value creation which will be how the process flow is measured.
  18. 18. Thanks for coming! ● NYBPP Meetup: ○ Please leave us a positive review! ● You can view all of our past slides over on Slideshare.net: ○ Slide Decks from Past Meetups ● Also, join our Facebook Group! ○ https://NYBPP Meetup Facebook Group ● Finally, check out more process insights at: ○ www.caviconsulting.com

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