Workflow analysis for operational efficiency
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Workflow analysis is the process of examining an organization’s workflows, generally to improve operational efficiency. It identifies areas of process improvement, such as redundant tasks or processes, inefficient workplace layouts, and bottlenecks in the workflow.
Improving workflows allows an organization to use resources more efficiently, primarily when a team must hand off its work to another team. A situation where one team is often waiting to receive work from another team is a common bottleneck that workflow analysis can identify. Another scenario in which workflow analysis can improve efficiency occurs when workers perform unnecessary tasks, typically in established processes requiring multiple steps to complete.
What is workflow analysis?
Workflow analysis is the structured review of how a repeatable piece of work moves from start to finish. It records which steps the work passes through, who performs each one, how long each step and handoff takes, and which steps add value. The output is a documented current-state workflow and a list of delays, redundant tasks, and bottlenecks to remove before the process is redesigned or automated.
A workflow is a procedure for accomplishing a repeatable objective — distinct from a one-time task. A workflow is also not a collection of unrelated tasks, which you could describe more accurately as a project. A workflow is a set of tasks performed in sequence regularly.
Business analysts typically present a workflow graphically rather than simply listing the steps in the workflow process. Workflow management software usually performs the work of creating and documenting these diagrams based on textual inputs from users. A graphic representation of the workflow allows you to visualize the business processes more efficiently, which can be extremely helpful in analyzing and improving the workflow. The software also allows you to track the workflow from beginning to end.
How does workflow analysis help your organization?
Business workflow analysis is essential for making organizational processes more efficient, which reduces the cost of completing each task. Minor improvements in a process’s efficiency can save a great deal of money when an organization is performing that process many times. Redundant tasks or manual tasks that should be automated can be particularly costly for an organization. A typical example of this type is a report no one ever reads that takes hours to prepare. This situation often occurs when the reason for generating the report no longer exists, but no one removes the report generation procedure from its workflow.
A more efficient workflow has a lot of additional benefits, such as shorter lead times for clients. The ability to achieve faster outcomes can also motivate staff members to improve their performance. Furthermore, simpler workflows facilitate onboarding and training new employees, especially those who need to work remotely.
What are the workflow analysis steps?
Organizations should comprehensively analyze their workflows, although some improvements will have a more significant impact than others. The tasks to focus on first are the core tasks that generate revenue for a business, while support functions should be analyzed afterward. The best order for analyzing tasks is highly dependent upon each business, although task prioritization generally involves answering the following questions:
- What do we do?
- How do we do it?
- Why do we do it?
- What does each department do?
What do we do?
Answering the question “What do we do?” involves identifying your organization’s core tasks from the beginning to the end of revenue generation. The sequencing of these tasks can vary significantly between organizations, depending on the sector. For example, production is the first step for some businesses, while sales come first in others.
How do we do it?
Answer the question “How do we do it?” by identifying each step in your workflow. It’s essential to be thorough in this stage since a seemingly trivial step can significantly impact workflow efficiency.
Why do we do it?
For each step, identify its business, contractual, control, and retention purpose before deciding whether to remove it. Duplicate record entry or unnecessary copies may be candidates for removal. Required records can provide audit evidence or meet retention obligations even when they don’t directly generate revenue.
What does each department do?
Workflow analysis also requires you to determine what each department in your organization does since virtually all workflows involve passing work from one department to another. Consider the example of a manufacturing business — a customer places an order with a sales representative, who sends the order to the warehouse. Staff members at the warehouse fill the demand from inventory and pack the order for shipment. They send the order to the shipping department, which then ships it to the customer. This workflow also includes intra-departmental processes, such as the sales department informing the accounting department of the order, which will then collect payment.
Workflow analysis example
Take an invoice approval workflow. The analysis starts by recording the actual path of a sample of invoices. Accounts payable receives each invoice, matches it to a purchase order, and sends it to the budget owner for approval. Invoices with a wrong amount or cost center come back for correction. Approved invoices are released for payment. Each step is timed, with waiting time recorded separately from working time.
The result is usually presented as a value stream map, which shows each step and the time spent at it, including wait time. In this example, most of the elapsed time sits at the approval step, and some invoices loop back because the intake form doesn’t require a cost center. The redesign targets those two findings with an escalation rule for overdue approvals and a required field at intake.
Next steps
Once you’ve identified inefficiencies in your workflow, the next step is to improve efficiency. Many organizations hire outside consultants for this task since they can be impartial observers. If you’re an in-house staff member, viewing the workflow as if you’re doing so for the first time is essential. Solicit as much input as you can from the people who perform the steps in the workflow since there’s a good chance they’ll already be aware of areas that are limiting their productivity.
Summary
Implementing workflow management software like Nutrient Workflow is one of the easiest ways to make workflows more efficient. It automatically assigns an employee to the next task as each one is completed, eliminating the need for them to continually send each other messages to decide which tasks each employee will perform. This advantage allows employees to spend more time creating value for their organization.
More on workflow analysis and business process management
See BPM (Business Process Management) Introduction from Nutrient Workflow.
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FAQ
Workflow analysis is the process of examining business processes to identify inefficiencies, redundancies, and areas for improvement in order to enhance operational efficiency.
Business workflow analysis applies workflow analysis to an organization’s operational processes, such as approvals, order handling, and onboarding, instead of one person’s tasks. It examines the handoffs between departments, as well as the steps inside each one. The waiting between teams is usually where the largest delays are.
A common example is an invoice approval process. Map each step from receipt to payment, time the working and waiting portions of each step, and count how often an invoice is returned for correction. The findings, typically a waiting bottleneck at approval and a rework loop caused by incomplete intake, define what the redesigned workflow needs to fix.
It helps organizations streamline their processes, reduce costs, and improve overall productivity by eliminating unnecessary steps or tasks.
The main steps are identifying core tasks, understanding how they are performed, evaluating why each step is necessary, and determining what each department does in the process.
It can lead to faster task completion, clearer job roles, reduced frustration, and a more motivated workforce by improving overall workflow efficiency.
Yes, workflow analysis helps identify manual tasks that can be automated, saving time and reducing human error.
