BPA Final Version

8/8/2019 BPA Final Version

1/76


2/76

The secretariat of the Economic and Social Commission for Asia and thePacific (ESCAP) is the regional development arm of the United Nations andserves as the main economic and social development centre for the UnitedNations in Asia and the Pacific. Its mandate is to foster cooperation betweenits 53 members and 9 associate members. It provides the strategic linkbetween global and country-level programmes and issues. It supportsGovernments of countries in the region in consolidating regional positions andadvocates regional approaches to meeting the regions unique socio-eco-nomic challenges in a globalizing world. The ESCAP secretariat is locatedin Bangkok, Thailand. Please visit the ESCAP website at www.unescap.orgfor further information.

The shaded areas of the map indicate ESCAP members and associate members.


3/76

i

Business Process Analysis Guideto Simplify Trade Procedures

UNITED NATIONS NETWORK OF EXPERTS FOR PAPERLESS TRADE

IN ASIA AND THE PACIFIC

UNITED NATIONS ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC

UNITED NATIONS ECONOMIC COMMISSION FOR EUROPE


4/76

ii

Business Process Analysis Guideto Simplify Trade Procedures

The designations employed and the presentation of the material in this publication do not imply theexpression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning thelegal status of any country, territory, city or area, or of its authorities, or concerning the delimitation of its

frontiers or boundaries. This document has not been formally edited.

United Nations publicationSales No. E.09.II.F.21Copyright United Nations 2009All rights reservedManufactured in ThailandISBN: 978-92-1-120588-6ST/ESCAP/2558


5/76

iii

FOREWORD

Todays international supply chains face an increasingly competitive environment, with new productsafety regulations, and intense border security concerns. The need for traders to comply with allprocedural, regulatory, and documentary requirements rapidly, accurately and cheaply has becomeextremely important in order to remain competitive.

To improve the efficiency and effectiveness of processes and information flows throughout thesupply chain, it is crucial that the existing as-is conditions are well understood, prior toimplementing trade facilitation reforms. Adapted from the business process modeling techniquesthat have been originally applied in the automation of mechanistic business processes, thisBusiness Process Analysis Guide to Simplify Trade Procedures (BPA Guide) aims to provide asimple methodology to document the as-is business processes in international trade transactions.The BPA Guide also shares valuable country experiences and lessons learned in this area.

Insights about existing processes and procedures in trade would provide senior governmentofficials with crucial information on where improvements are necessary.

It is our hope that this BPA Guide will serve government officials as an instrument that facilitatesthe identification of bottlenecks in trade processes and procedures, the prioritization of areas for improvement, and the design of strategies to eliminate these bottlenecks. Ultimately, businessprocess analysis can bring about greater transparency, improved efficiency, and greater capacity toinnovate, which are in turn the keys to remaining competitive in todays international markets.

Ravi RatnayakeDirector Trade and Investment DivisionUN Economic and Social Commission for Asia and the Pacific


6/76

iv

ACKNOWLEDGEMENTS

This publication was prepared under the guidance of Ravi Ratnayake, Director, Trade andInvestment, and the coordination by Shamika Sirimanne, Chief, Trade Facilitation Section, by ateam consisting of Maria Misovicova, Peng Bin of ESCAP, Markus Pikart of UNECE and SomnukKeretho and Thayanan Phuaphanthong from the Institute for Information Technology Innovation,Kasetsart University. Substantive inputs were provided by Nikolaus Sahling (consultant). Valuablecontributions were received from Yann Duval, Sang Won Lim (ESCAP) and Tom Butterly(UNECE). The external editing was provided by Dorothy Van Schooneveld.

The Business Process Analysis Guide to Simplify Trade Procedures (BPA Guide) was developedas part of the joint technical assistance project by ESCAP and UNECE and under the auspices of the United Nations Network of Experts for Paperless Trade in Asia and the Pacific (UN NExT).The project aims to raise the capacity and accelerate the adoption of the above-mentioned trade

facilitation measures, especially in countries where those measures are not yet commonlyimplemented.


7/76

v

PREFACE

Moving goods across borders requires meeting a vast number of commercial, transport andregulatory requirements. Inefficiencies in complying with these requirements often create unneces-sary delays and costs. At present, a source of tremendous inefficiencies is associated with thepreparation of transport and regulatory documents, unclear border procedures, and overzealouscargo inspection.

A Single Window (see Glossary) is one of the trade facilitation measures that has increasinglygained momentum, especially in the Asia-Pacific region, as it serves as the foundation for paperless trading. Once it is fully operational, the complexity as well as unnecessary delays andcosts in administering cross-border movement of goods are expected to be significantly lessened.

To ensure that the Single Window facility responds to stakeholders needs in different stages of

the international supply chain, it is important that its design reflects the business processes in use.Given that the existing business processes may entail redundant activities and complexities thatcreate procedural inefficiencies and bottlenecks, it is essential to harmonize and simplify theexisting business processes prior to adopting them as a basis for the design of the SingleWindow. The harmonization and simplification of business processes cannot be achieved withoutgood and in-depth understanding of existing practices.

The BPA Guide offers a simple methodology to elicit, document, and analyse the existing as-isbusiness processes involved in international trade, as well as aid in developing recommendationsfor further improvement. It suggests a set of practical steps and activities, from setting the scopeof the business process analysis project; planning its implementation; collecting relevant data; andpresenting it in an easily understandable manner, to analysing the captured data in order to

identify bottlenecks and developing recommendations for improvement. This recommended set of steps and activities was generalized from the business process analysis exercise conducted inThailand in preparation for the development of Thailands Single Window e-Logistics, which is anational obligation under the ASEAN Single Window initiative. To make the BPA Guide practical,a case study on business process analysis of the export of jasmine rice in Thailand is provided inthe Annex.

The BPA Guide intends to serve practitioners and policymakers from government agencies or theprivate sector involved in:

The harmonization and simplification of international trade procedures; The harmonization of related data requirements with the international standard; and The implementation of Single Window.

From the BPA Guide, practitioners will learn a step-by-step approach to business process analysisand development of recommendations for future improvement. Policymakers, on the other hand,will benefit from a better understanding of the linkage between business process analysis andtrade facilitation measures, including business process simplification, data harmonization, andSingle Window implementation. They will become acquainted with prerequisite steps that have tobe taken prior to the implementation of trade facilitation measures.


8/76

vi


9/76

vii

CONTENTS

Page

Foreword .................................................................................................................................... iii

Acknowledgements .................................................................................................................. iv

Preface ....................................................................................................................................... v

Abbreviation ............................................................................................................................. xi

1. TRADE FACILITATION AND BUSINESS PROCESS ANALYSIS .................................. 1

1A Participants and their interests .............................................................................. 11B Business process analysis in the context of trade facilitation ............................ 2

2. INTRODUCTION TO THE BUSINESS PROCESS ANALYSIS ...................................... 5

2A Definition and scope ............................................................................................... 52B Business process modeling methodology used in this Guide ............................ 52C UML graphical notations used in this Guide ........................................................ 62D Outputs of the business process analysis............................................................ 8

3. BUSINESS PROCESS ANALYSIS GUIDE TO SIMPLIFYTRADE PROCEDURES ..................................................................................................... 11

3A Introduction to phases, stakeholders and other related issues ........................... 113B Individual phases, steps and activities.................................................................. 15

Phase I: Scope setting ......................................................................................... 15Step 1: Define the project scope............................................................. 15Step 2: Develop a work plan and secure resources ............................. 20

Phase II: Data collection and process documentation ...................................... 22Step 3: Acquire background information ................................................. 23Step 4: Conduct interviews and document captured data ..................... 23

Phase III: Process analysis and recommendations development ................... 30

Step 5: Analyse the as-is processes and identify bottlenecks............ 30Step 6: Develop and propose recommendations ................................... 34

4. RECOMMENDATIONS FOR IMPLEMENTATION ........................................................... 37

5. GLOSSARY ................................................................................................................... 39

6. REFERENCES ................................................................................................................... 41

7. ANNEX: BUSINESS PROCESS ANALYSIS OF THE EXPORT OFJASMINE RICE IN THAILAND ......................................................................................... 43


10/76

viii

BOXES

Page

Box 1.1 The UN/CEFACT international supply chain model ........................................... 1

Box 3.1 Case study define the project scope............................................................... 16

Box 3.2 Case study scope of analysis .......................................................................... 17

Box 3.3 Case study visualize the project scope........................................................... 18

Box 3.4 Case study use cases of core business processesin frozen shrimp export ........................................................................................ 21

Box 3.5 Project Evaluation and Review Technique (PERT) estimate............................. 21

Box 3.6 Responsibilities and required skills of process analysts ................................... 22

Box 3.7 Examples of interview questions ......................................................................... 26

Box 3.8 Case study activity diagram of Have the product sampled andexamined use case within the BPA of frozen shrimp export in Thailand ....... 28

Box 3.9 Integration of activity diagrams chart from the BPA of frozenshrimp export in Thailand .................................................................................... 29

Box 3.10 The time-procedure chart from the BPA of frozen shrimp export inThailand................................................................................................................. 31

Box 3.11 UN/CEFACT Recommendation No.18: Facilitation Measures Relatedto International Trade Procedures ....................................................................... 32


11/76

ix

FIGURES

Page

Figure 1.1 Step-by-step approach to developing an electronic Single Windowand paperless trade environment ........................................................................ 3

Figure 2.1 The use of UML diagrams in the BPA Guide .................................................... 9

Figure 3.1 Key steps and stakeholders in business process analysis ............................... 11

Figure 3.2 Stakeholders involved in Step 1 .......................................................................... 15

Figure 3.3 Activities involved in Step 1 ................................................................................. 16

Figure 3.4 Stakeholders involved in Step 2 .......................................................................... 19Figure 3.5 Activities involved in Step 2 ................................................................................. 19










12/76

x

TABLES

Page

Table 2.1 Use Case Diagram notations .............................................................................. 7

Table 2.2 Activity Diagram notations.................................................................................... 7

Table 3.1 Roles and responsibilities of stakeholders in BPA ............................................ 12

Table 3.2 Overview of BPA .................................................................................................. 13


13/76

xi

ABBREVIATION

ASEAN Association of Southeast Asian Nations

ASYCUDA Automated System for Customs Data

ECE United Nations Economic Commission for Europe

ESCAP United Nations Economic and Social Commission for Asia and the Pacific

ICT Information and Communication Technologies

PERT Project Evaluation and Review Technique

UML Unified Modeling Language

UN/CEFACT United Nations Centre for Trade Facilitation and Electronic Business

UN NExT United Nations Network of Experts for Paperless Trade in Asia and the Pacific


14/76

xii


15/76

1

1. TRADE FACILITATION AND BUSINESSPROCESS ANALYSIS

International trade transaction encompasses allactivities related to the establishment of com-mercial contracts (commercial procedures), thearrangement of inland and cross-border trans-portation of goods (transport procedures), theexport and import formalities to meet regula-tory requirements (regulatory procedures), andthe payment for purchased goods (financialprocedures). It requires cooperation betweenmany actors, including traders, governmentagencies and service providers from differentcountries.

1A PARTICIPANTS AND THEIRINTERESTS

According to their interests and needs, theactors of the international trade transaction canbe grouped into the following categories:

a) Government agenciesGovernment authorities such as ministries of trade, finance/customs, transport, health, ag-riculture, information and communication

technology, veterinary, plant and quarantineagencies are responsible for devising tradefacilitation strategies, reform programmes,and laws and regulations to ensure thesmooth flow of goods and information in asecure environment. Customs authoritieshave a specialized role here, which tradition-ally was to control the entry and exit of goodsand to collect revenues. Later, this role wasextended to ensure border security and portadministration. Recently, the focus has beenshifted from enforcement to trade facilitationwith the use of pre-arrival clearances, theauthorized economic operators concept,green lanes and post-clearance audits, in-creasingly employing electronic trade datasubmission, processing and exchange aswell as information and communication tech-nologies (ICT)-enabled trade facilitation solu-tions, such as Single Window systems.These government agencies need enhancedtax collection, more precise foreign tradestatistics and better administration controls,which Single Window and paperless tradesystems can provide.

Box 1.1. The UN/CEFACT international supply chain model

UN/CEFACT Recommendation No. 18 illustrates a simplified view of the international supply chain in theBuy-Ship-Pay model (see the picture below). The model not only suggests a series of fragmented activitiesthat are carried out throughout the international trade transaction, but also defines different types of actorsthat are associated with them. Key actors in the international supply chain are authorities, intermediaries,suppliers, and customers.

Authority

Intermediary

Supplier Customer BUY SHIP PAY


16/76

Business Process Analysis Guide to Simplify Trade Procedures

2

b) IntermediariesIntermediaries are those who provide com-mercial, financial, and/or transport serviceswithin an international supply chain, such asfreight forwarders, customs brokers, third-

party logistics service providers, carriers, ex-press integrators, port and terminal opera-tors, banks, insurance companies, and in-formation technology (IT) value-added ser-vice providers. They are normally from theprivate sector, which needs a swift ex-change of trade information and transparentregulatory environment in order to complywith the requirements of clients.

c) TradersGenerally, they are the source and the tar-get of the supply chain. They are principalsof the cargo and users of the servicesprovided by the intermediary. They not onlydepend on the services provided by servicesproviders, but also must meet the regulatoryrequirements of government agencies for moving goods across borders. At the sametime, they also participate in the implemen-tation of trade facilitation regulations andmeasures in collaboration with governmentagencies. Trading companies and businesscommunities need a transparent and pre-

dictable trading environment, and solutionsthat cater to faster customs clearance, re-duced delays at the borders, lower tradetransaction costs, reduced corruption, andcheaper and more competitive exports.

1B BUSINESS PROCESS ANALYSISIN THE CONTEXT OF TRADEFACILITATION

To reduce the complexity of the international

trade transaction and thus costs related to it,UN/CEFACT recommends implementation of the following measures: 1

The simplification and harmonization of trade procedures and, where possible,elimination of unnecessary ones;

The simplification and coordination of administrative procedures at border cross-ings;

The simplification of payment systems; The simplification, standardization and

harmonization of documents required for atrade transaction;

The facilitation of flow of information thatcontrols the movement of goods throughoutthe transaction (e.g. by applying informationand communication technology); and

The enhancement of trust assessmentthrough a better exchange of information.

The successful implementation of tradefacilitation measures, however, requires notonly political and governmental support interms of policy directions as well as humanand financial resources, but also an in-depthunderstanding about existing businessprocesses.

According to UN/CEFACTs step-by-step ap-

proach toward a Single Window paperless en-vironment as shown in Figure 1.1, businessprocess analysis is recommended as the firststep to be taken before undertaking other trade facilitation measures related to the sim-plification, harmonization, and automation of trade procedures and documents. 2

In order to improve the efficiency and effective-ness of processes and information flowsthroughout the international supply chain, it ishighly recommended that the as-is conditions

of relevant business processes are well under-stood prior to the selection of trade facilitationmeasures.

1 UNECE (2006b). Towards an Integrated Strategy for

UN/CEFACT, Geneva.

2 UNECE (2006a). Background Paper for UN/CEFACT Symposium on Single Window Common Standards

and Interoperability, Geneva.


17/76

3

1. Trade Facilitation and Business Process Analysis

Figure 1.1. Step-by-step approach to developing an electronic SingleWindow and paperless trade environment

e-Single Window &paperless trading

Cross-border data harmonization& exchange

National data harmonization

Documents simplification and alignment

Process simplification and harmonization

Business Process Analysis


18/76


4


19/76

5

2A DEFINITION AND SCOPE

A business process is a sequence of stepsperformed for a given purpose. Based on thisgeneric definition, a business process consid-ered within the framework of trade facilitation

can be defined as:A chain of logically connected activitiesto move goods and related information

across borders from buyer to seller and to provide related services

Business processes are valuable organizationalassets. They enable the creation and deliveryof business values as defined by organiza-tional goals. Business processes are oftendriven by information. In the area of interna-

tional supply chain, for example, the move-ment of cargo has to be escorted by corr-esponding cargo documents. It involves anaverage of 40 documents, 200 data elements(30 of which are repeated at least 30 times)and the re-keying of 60 to 70 per cent of dataat least once. 3 Delay on document processingor lack of integrity in the information that flowsacross business processes has become afactor that holds back cargo movement. Onthe average, each additional day that a cargois delayed prior to being shipped reducestrade volume by at least 1 per cent and byapproximately 7 per cent if the products aretime-sensitive to time-insensitive agriculturalgoods. 4

Because the underlying business process hasa significant impact on the performance of theoverall business, any process improvementachieved can enhance the competitivenessboth at the organizational and the nationallevel. Business process analysis is a study of existing business processes within one or across several organizations, both in normaloperation and in exceptional situations. Its pri-mary goal is to understand attributes of busi-ness processes and relationships among them.The results of the business process analysismay serve as a baseline for implementingtrade facilitation measures such as:

Simplification of trade procedures (includingcommercial, transport, regulatory and finan-cial procedures);

Simplification of documentary requirementsand their alignment with international stan-dards; and

Automation of international trade transac-tion and its associated electronic docu-ments for Single Window and paperlesstrade systems.

2B BUSINESS PROCESSMODELING METHODOLOGYUSED IN THIS GUIDE

Business process modeling is a technique for documenting business processes where eachelement of the business process is repre-sented by graphical notations. It can beachieved by a simple drawing with paper andpencil or a software tool. The resulting graphi-cal representation of a business process isknown as a business process model. Eachbusiness process model illustrates:

Activities that come in a specific order and

decision points;

2. INTRODUCTION TO THE BUSINESSPROCESS ANALYSIS

3 APEC (1996). APEC means business: building pros- perity for our community. Report to the Economic Leaders. Asia Pacific Economic Cooperation Secre-tariat, Singapore.

4 Djankov, S., Freund, C., and Pham, C. (2006). Trad-

ing on Time, World Bank, Washington DC.


20/76


6

Actors who perform those activities; Defined inputs and outputs of each activity; Criteria for entering and exiting the busi-

ness process; How actors relate to one another; How information flows throughout the busi-

ness process; Associated rules and regulations; and Quantitative indicators such as number of

steps, as well as time and cost required tocomplete a particular business process.

The documentation of existing business pro-cesses in simple diagrams and brief descrip-tions helps create a common understanding onworking norms and operational proceduresamong relevant stakeholders. The stakeholdersof the business processes include practitionerswho deal with the documented business pro-cesses on a daily basis; experts who may bebrought in to assist with the initiation andimplementation of business process improve-ment programmes, and decision makers whomake informed decisions regarding the revisionof related regulations and procedures.

Business process models are increasinglyused in trade facilitation. For the purposes of this Guide, the business process model servesas a tool that facilitates:

The analysis of activities, documents, andinformation flow in international trade pro-cedures;

The identification and prioritization of prob-lematic areas that cause the delays inmoving goods from seller to buyer; and

The design of improvement measures toaddress these problematic areas (e.g. sim-plifying processes and data, and eliminat-ing redundancies).

The Unified Modeling Language (UML) 5 pro-vides a set of standard graphical notations for business process modeling. UML is internation-ally accepted and widely used not only amongpractitioners in business communities but also

in information technology and software devel-opment. The consistency in modeling tech-niques produces results in a form that is easilyunderstood, analysed and validated. If the ulti-mate goal of the business process modeling

and analysis is to automate the internationaltrade transaction and move to electronic tradedocuments exchangeable through the SingleWindow and paperless trade systems, the useof common standard graphical notations inbusiness process modeling is vital. This ismainly because the common standard graphi-cal notations allow business domain experts tocommunicate procedural and documentary re-quirements with technical experts who are des-ignated to put the systems in place.

2C UML GRAPHICAL NOTATIONSUSED IN THIS GUIDE

In business process analysis, the use casediagram serves as a projects frame of refer-ence. Its purpose is to present a graphicaloverview of core business processes that aresubject to further examination at a greater depth. It indicates all stakeholders involved inthese business processes and demonstratesall actual associations between these business

processes and the stakeholders.

The activity diagram is an elaboration of eachbusiness process displayed in the use casediagram. It portrays a sequence of activitiesand information flows from one responsibleparty to another. It informs its audience notonly who is doing what in which order, butalso documentary inputs that serve as prereq-uisites to activities and documentary outputsthat can be obtained upon completion of activi-ties. A set of graphical notations for use case

and activity diagramming are provided with ex-planations of their meaning in Tables 2.1. and2.2. These notations are adopted from UML.

This BPA Guide focuses on modeling businessprocesses with two types of UML diagrams:the use case diagram and the activity diagram,shown in Figure 2.1. The use case diagramillustrates the high-level business processesand actors associated with each of them. Itserves as a frame of reference for further elaboration of business process modeling

work. The activity diagram, on the other hand,5

UML Resource Page, http://www.uml.org.


21/76

7

Table 2.1. Use Case Diagram notations

Notation Description and instruction for use

Subject Boundary:

Represents a process area Includes the name of a subject boundary on top

Actor: Represents a role which participates in a particular business process. Can be an individual, an organization, a department, etc. Is labelled with a role-name Is placed outside the subject boundary

Use Case: Represents a core business process Is labelled with a descriptive verb-noun phrase

Relationship Association:

Links actors with the use cases (business processes) they participate in

Boundary

Actor/Role

Use case

2. Introduction to the Business Process Analysis

Table 2.2. Activity Diagram notations


Initial State

Represents the beginning of a set of activities

Can only be one initial state for each activity diagram

Final Flow State

Is used to stop the flow of activities

Indicates that further activities cannot be pursued within thedescribed context

Final Activity State

Is used to indicate the completion of the business process

Swimlane

Is used to break up individual actions to individuals/agencies thatare responsible for executing their actions

Is labelled with the name of the responsible individual, organization,or department

Activity

Represents a non-decomposable piece of behaviour

Is labelled with a name that 1) begins with a verb and ends with anoun; and 2) is short yet contains enough information for readers tocomprehend

ProcessParticipant 1

ProcessParticipant 2

ProcessParticipant n

(Continued)


22/76


8

Table 2.2. (continued)


Object

Represents a document or information that flows from one activity toanother activity Is labelled with a name of a document

Decision Represents the point where a decision, depending on the outcome

of a specific prior activity, has to be made Has multiple transition lines coming out of a decision point and

connecting to different activities Attached with labels addressing the condition on each transition line

that comes out of an activity and connects to a decision point or vice versa

Transition line Indicates a sequential flow of activities and information flows in an

activity diagram

Fork (Splitting of Control) Is used to visualize a set of parallel activities or concurrent flow

of activities

Join (Synchronization of Control) Is used to indicate the termination of a set of parallel activities

or concurrent flow of activities

describes activities, inputs, and outputs associ-ated with each business process listed in theuse case diagram.

2D OUTPUTS OF THE BUSINESSPROCESS ANALYSIS

The main output of the business processanalysis exercise within the context of trade

facilitation is the business process analysisreport that contains the following components:

Use case diagram showing the scope of the business process analysis project;

Activity diagrams;

Process descriptions, including a list of trade forms and documents, as well as alist of trade-related laws, rules and regula-tions;

Integrated activity diagram; Time-procedure chart; A list of identified bottlenecks; and Recommendations to improve the business

process and/or to-be business processmodels.

These output components are further ex-plained in the following parts of the BPAGuide.


23/76

9

Figure 2.1. The use of UML diagrams in the BPA Guide

UML Use Case Diagram and Activity Diagramare used to visualize the captured knowledgeof the business processes.

UML Use Case Diagram UML Activity Diagram

2.3) Prepare exportpermit

Exporter or Representative

Departmentof Fisheries

Exporter (or Representat ive) Department of Fisheries

Application Form for ExportAnimals/Animal

Remains Through Thailand(R. 1/1)

CommercialInvoice

Packing List

Collect R. 9

Verify submittedinformation

Incorrect

Correct

IssueExport Permit

Export Permit(R. 9)

Prepare informationneeded for exportpermit application

2. Introduction to the Business Process Analysis


24/76


10


25/76

11

3A INTRODUCTION TO PHASES,STAKEHOLDERS AND OTHERRELATED ISSUES

The business process analysis consists of three phases that have to be carried out in

sequence (see Figure 3.1):

Phase I: Scope setting, which includes thefollowing two steps:

Step 1 - Define a project scopeStep 2 - Develop a detailed work planand secure resources

Phase II: Data collection and process docu-mentation, which includes two steps:

Step 3 - Acquire background informa-tionStep 4 - Conduct interviews and docu-ment captured data

3. BUSINESS PROCESS ANALYSIS GUIDE TOSIMPLIFY TRADE PROCEDURES

Figure 3.1. Key steps and stakeholders in business process analysis

Phase I

ProcessAnalyst

Process Participants/Business Domain Experts

Project Manager/Project Leader

ProjectSponsor

Phase II

Phase III

1) Define a projectscope

2) Develop a detailedplan and secure

resources

3) Acquirebackground information

4) Conductinterviews and document

captured data

5) Analyse the as-isprocess and identify

bottlenecks

6) Develop and proposerecommendations


26/76


12

Table 3.1. Roles and responsibilities of stakeholders in BPA

Phase I Phase II Phase III

Role Step 1: Step 2: Step 3: Step 4: Step 5: Step 6:Define Develop a Acquire Conduct Analyse the Develop

project detailed plan background interview and as-is and scope and secure information document processes propose

resources captured data and identify recom- bottlenecks mendations

Project Finalize and Approve any Provide management support and direction when neededSponsor approve the changes to

project scope project scope Participate in major project reviews and approve keydeliverables

Commit specific Ensure timely resolution of issues affecting projectresources success

Project Acquire relevant Develop a Oversee and control the execution of the planManager/ information to detailed planProject define theLeader scope of a Organize Participate in the review of milestone deliverables

process under resources including the final outputinvestigation

Process Review plan Conduct desk Conduct the Analyse and DevelopAnalysts and propose research interviews identify recommen-

adjustment if bottlenecks dations for needed Make Collect and and process

necessary consolidate improvement simplificationpreparation data opportunitiesfor interview of the as-isand Document processes Report theobservation the as-is final output

processes

Process Verify the Provide relevant knowledge on process ParticipateParticipants/ proposed under investigation in theBusiness project scope review of Domain Verify the accuracy of applicable the finalExperts deliverables output

Phase III: Process analysis and recommenda-tions development, which includes thefollowing two steps:Step 5 - Analyse the as-is processesand identify bottlenecks

Step 6 - Develop and propose recom-mendations.

Four groups of stakeholders participate in abusiness process:

Project Sponsor, who acts as authorizedperson from a lead agency commis-sioning the business process analysisstudy;

Project Manager/ Project Leader, who is incharge of planning, directing, staffing, andmanaging the development of the businessprocess study;

Project Analysts, who are in charge of col-lecting, documenting and analysing thebusiness processes;

Process Participants/ Business Domain Ex-perts, who carry out business processesand thus have specific expertise andknowledge of a business process.

Their responsibilities in the different phases of the business process analysis are summarizedin Table 3.1.


27/76


28/76


29/76

15

The steps within each phase require that aseries of activities be carried out. These activi-ties will be explained in Section 3B. It is highlyrecommended that validation and verificationactivities are embedded in each step to ensure

the accuracy and comprehensiveness of theoutputs. Such validation and verification canbe achieved through several rounds of a peer review performed by relevant stakeholders of the business process analysis exercise. Re-finement shall be made until the quality of outputs is acceptable.

The six steps described in this guide, together with deliverables of the business processanalysis report, are summarized in Table 3.2.The same table also provides guidance on

what should be done (the Dos) and whatshould be avoided (the Donts) in conductingthe business process analysis exercise.

3B INDIVIDUAL PHASES, STEPSAND ACTIVITIES

The rest of this Chapter will discuss the threephases of the business process analysis, de-tailed steps involved in each phase and activi-ties necessary to complete the steps.

Phase I: Scope setting

The objective of this phase is to establish abaseline for the implementation and manage-ment of a business process analysis project. Itconsists of two steps:

Step 1 - Define the project scopeStep 2 - Develop a detailed work plan andensure resources.

3. Business Process Analysis Guide to Simplify Trade Procedures

Step 1: Define the project scope

Step 1 aims at identifying a frame of referencefor further detailed business process modelingwork. Using the UML use case diagram, this

view illustrates the high-level business pro-cesses and actors associated with each of them.

This step includes seven necessary activities,as illustrated with the UML activity diagram inFigure 3.3. Its detailed description is providedbelow.

Activity 1.1

Project sponsor identifies a business domain

of interest. A business domain is usually thename of the industry (such as frozen shrimpexport) or service (such as customs clearance)whose business processes are subject to thebusiness process analysis exercise. (See Box3.1 for an example)

To initiate a Business Process Analysis it iscrucial that the project sponsor clearly speci-fies:

The stage of the international supply chainthat he/she is interested in analysing - i.e.Buy, Ship, or Pay; and

The environment and conditions in whichthe industry of interest operates and whichshall be included in the BPA; i.e. mode of transport, terms of delivery, terms of pay-ment, and country of destination (given thatregulatory requirements vary from onecountry to another).

Figure 3.2. Stakeholders involved in Step 1

1) Define projectdefinition



Project Sponsor This UML use case diagram indicates that Step 1 Define

project scope requires the participation from: Project Sponsor Project Manager/Project Leader Process Participants/Business Domain Experts


30/76


16

Box 3.1 Case study define the project scope

Recognizing the need for a greater efficiency in documentary procedures related to international tradetransactions, Thailand has prioritized the establishment of the Single-Window e-Logistic Platform as the nationalflagship project. Progress towards the establishment of the Single-Window e-Logistic Platform was hindered byseveral factors, one of which was the absence of knowledge about the integrative nature of processesperformed by different parties and about information flow throughout the international supply chain.

In response to this shortfall, the Department of Export Promotion (under the Ministry of Commerce) commis-sioned an in-depth study on the export process with the following objectives: To drive formalization of the export process; To investigate interrelationships among processes, information, and stakeholders, as well as related laws and

regulations; To provide a basis for simplification of procedural requirements and harmonization of data requirements; and To facilitate automation of international trade transactions, and thus the establishment of the Single-Window

e-Logistic Platform.

Export processes vary by product. It is therefore not possible to carry out the study of the export process for all products at once. Given the resource constraints, it was decided to include only one product in the project.

Products were prioritized and rated using the following criteria: Strategic importance of the product on national economy; Aggressiveness of competition; and Degree of willingness of stakeholders to participate in data collection process.

Frozen shrimp was the product selected, based on the above criteria. It is one of the countrys strategic exportproducts. The export volume of shrimp has been growing for the past five years. The production of frozenshrimp, in addition, involves the whole chain of production from farmers to manufacturers, retailers, andsuppliers. About 80 percent of raw materials for production are sourced locally. Thai producers have beentargeted to differentiate their products to deal with direct competition with low-cost Chinese and Vietnameseshrimp. Rice and poultry are also considered as among Thailands strategic export products. However, relativelyclose connection with stakeholders from shrimp exporters, their logistics service providers, and relevantgovernment agencies gave relatively more confidence in achieving the goal of the project.

Source: ESCAP from The Analysis of Frozen Shrimp Export Process in Thailand, Institute for Innovative IT, Kasetsart University

Figure 3.3. Activities involved in Step 1



Project Sponsor

Conductdesk research

Extract key processparticipants and

business processes

Visualizecollected

information

Use CaseDiagram

Review andprovide feedback

Inaccurate AccurateApprove

Identify abusiness domain

of interest


31/76

17

Activity 1.2

Project manager/project leader conducts initialdesk research to identify core business pro-cesses that are related to the business domainof interest.

Activity 1.3

Project manager/project leader, based on re-search outcome, extracts key business pro-cesses associated with the industry or serviceof interest, as well as stakeholders who inter-act with those business processes.

Activity 1.4

Project manager/project leader documentscaptured core business processes and stake-holders of the business domain of interestusing UML Use Case notations (see table 2.1).

Project manager/project leader uses the following notations:

- to depict core business pro-cesses;

- to depict each stakeholder, whois known as process participant/business domain expert; and

- to depict all actual associations

between business processes andprocess participants/business do-main experts.

When there are core sub-business processes,project manager/project leader may organizecore business processes into a process area.Boundaries may be used to group core

sub-business processes together.

An example of a UML use case diagram isgiven in Box 3.3.

Activity 1.5

Process participants/business domain expertsreview the use case diagram and providefeedback in terms of its accuracy as well assuggestions for further improvement.


Box 3.2. Case study scope of analysis

The Ministry of Commerce, represented by Department of Export Promotion, as a project sponsor, specifiedthat the analysis of the frozen shrimp export process covers all activities in the international trade transaction,which range from the establishment of commercial contracts, through the arrangement of inland and cross-border transportation and export formalities to meet regulatory requirements to the payment of the purchasedcargo. Due to the fact that mode of transport, terms of delivery, and terms of payment can vary, the projectsponsor agreed to the following assumptions made for the study:

Ship: Shrimp exporters choose ocean freight as a mode of transport, as it is one of the cheapest andmost convenient ways to ship goods overseas.

CIF (Cost, Insurance, and Freight): Shrimp exporters in most cases arrange and absorb the cost of shipping their cargo to the port of destination. Minimum insurance coverage is also procured against lossof or damage to the goods during the carriage.

FCL (Full Container Load): For simplicity, the analysis of frozen shrimp export process traces the operationof a sole exporter. It is also assumed that the whole container is intended for a single consignee.

CY (Container Yard) Container Service: For simplicity, it is assumed that CY/CY container service is used.Under such service, the carrier delivers an empty container to exporters premises for loading and bringsthe loaded container back to the container yard. At the container yard, the container waits to be loadedonto the vessel. No unpacking or modification is made.

L/C (Letter of Credit): For simplicity, a letter of credit is assumed as method of payment.


Use case

Boundary


32/76


18

Activity 1.6

Project manager/project leader revises and/or refines the project scope where necessary,based on the feedback from process partici-pants/business domain experts.

Activity 1.7

Project sponsor approves the final version of use case diagram. The use case diagram actsas a baseline for planning, managing, andcarrying out the business analysis study.

Box 3.3. Case study visualize the project scope

This UML use case diagram illustrates core business processes used when exporting frozen shrimp from Thailand.It provides the frame of reference for analysing the business processes in detail. The diagram lists all processparticipants/business domain experts, business processes, and the relationships among them.

The diagram shows that the scope of analysis will cover all activities in the international trade transaction,which include commercial procedures, transport procedures, regulatory procedures, and financial procedures.

The core business processes are organized according to the UN/CEFACT Buy-Ship-Pay model. Given thatthe movement of cargo has to comply with regulatory requirements, transport procedures and regulatoryprocedures are closely related. Their main sub-processes are therefore grouped as Ship.

2) Ship

Authorized PrivateInspector Insurance

Company

InlandHaulage

Department of Fisheries

Carrier (Shipping Line)

PortAuthority

Department of Foreign Trade

Department of Consular Affairs

The Central IslamicCommittee Office Thailand

Customs

CustomsBank

2.1) Haveproduct sampled

and examined

2.2) Arrangetransport

2.3) Prepareexport permit

2.4) Apply for cargo insurance

2.5) Prepare andsubmit customs

declaration

2.6) Load container and transfer to port

of departure

2.7) Clear goodsthrough customs

2.8) Handlecontainer and stow

it on vessel

2.9) Preparedocuments required

by importers


1) BuyImporter

3) Pay

ImportersBank

ExportersBank



33/76

19



2) Develop a detailedplan and secure

resources

Project Sponsor

Process Analysts


This process requires the participation from: Project Manager/Project Leader Project Sponsor Process Analysts


Project Manager/Project Leader Process Analysts Project Sponsor

Use CaseDiagram

Identify tasks andsequence of tasks

Estimate efforts

Develop projectschedule

Assign processanalysts

Derive thedetailed plan

DetailedProject Plan



Acceptable

Acceptable

Approve

Unacceptable

Unacceptable


34/76


20

The use case diagram may be changed at alater stage if an inaccuracy is found. Therevised diagram should be approved by theproject sponsor before adopting it as a frameof reference.

Step 2: Develop a work plan and secureresources

The objective of this step is to develop adetailed work plan that guides and managesthe implementation of the business processanalysis. The work plan should be based onthe use case diagram developed in Step 1.

Based on the use case diagram, the workbreakdown structure, which is an output-ori-ented description of project tasks, can be de-veloped. This work breakdown structure thenprovides a starting point for estimating projectcosts, staffing and scheduling.

Figure 3.5 illustrates activities that a projectmanager/project leader has to carry out inthis step in cooperation with processanalysts and under the oversight of the projectsponsor. These activities are further explainedbelow.

Activity 2.1

Project manager/project leader identifies, insequential order, tasks required to derive eachoutput of the business process analysisproject. They include: Activity diagrams; Process descriptions, including a list of

trade forms and documents as well as alist of trade-related laws, rules and regula-tions;

Integrated activity diagram; Time-procedure chart; A list of identified bottlenecks; and Recommendations to improve the business

process and/or to-be business processmodels.

To prepare the work breakdown structure of theproject, the project manager/project leader needs to anticipate project activities outlined inStep 3 onward. While Activity 3.1 3.3 and

Activity 4.1 4.10 have to be carried out for all

6 Marchewka, J.T. (2006). Information Technology Project Management, 2nd ed. John Wiley & Sons

Inc., Hoboken, NJ.

core business processes represented by usecases in the use case diagram (see Box 3.4 for an example), the rest including the develop-ment of integrated activity diagram, time-proce-dure chart, a list of identified bottlenecks, and

recommendations for future improvement requires only a one-time implementation.

Activity 2.2

Project manager/project leader estimates theeffort (man-hours or man-days) needed tocomplete each identified task and to prepareall deliverables. There is no standard bench-mark time for each activity required to com-plete the business process analysis project.Likewise there is no one-size-fits-all solution todetermine the amount of required resources.However, the following approach may be help-ful for time and resource estimation:

In conducting business process analysis,great time and effort is spent on collectingand compiling data into visual diagramsand written descriptions. There is a set of similar project tasks for elaborating eachuse case into an activity diagram and pro-cess description. The more process partici-pants/business domain experts are involvedin a business process that is representedby a use case, the more complex andtime-consuming the business processanalysis will be.

The first session of a face-to-face data-collection interview with each process par-ticipant/business domain expert who is apart of Phase II may take one to twohours. Given that the business processanalysis is an iterative task, the interviewwith relevant process participants/businessdomain experts may be conducted morethan once. However, the project teamsshould avoid conducting more than threeinterviews with the same process partici-pants/business domain experts.

Project Evaluation and Review Technique(PERT) estimate 6 might be used for thispurpose. (See Box 3.5)


35/76

21

1) Buy

3) Pay




Exporter or

Representative

2.1) Have productsampled and

examined

2.2) Arrangetransport

Importer

Importers Bank

Importer

Exporters Bank

AuthorizedPrivate Inspector

Department of Fisheries

Inland Haulage





Exporters Bank


Inland Haulage

Customs

2.7) Clear goods through

customs

2.6) Stuff container and transfer to port

of departure

2.5) Prepare andsubmit customs

declaration

2.4) Applyfor cargoinsurance

2.3) PrepareExport permit


InsuranceCompany

Customs

Customs Bank

Inland Haulage

Customs

Port Authority




2.8) Handlecontainer and

stow it on vessel

2.9) Preparedocuments required

by importers

Customs


Port Authority


Department of Foreign Trade

Department of Consular Affairs

The CentralIslamic

CommitteeOffice Thailand


Box 3.4. Case study use cases of core business processes in frozen shrimp export


Box 3.5. Project Evaluation and Review Technique (PERT) estimate

Project Evaluation and Review Technique (PERT) allows probabilistic treatment of activity duration in theestimation. PERT estimate may be used to compute weighted average for each individual task. A three-pointestimate includes pessimistic, most likely and optimistic. The equation is as follows:

Task Estimate = Optimistic Time + (4 * Most Likely Time) + Pessimistic Time6

The Optimistic Time is the minimum time in which a task can be completed. It is the best-case scenarioset under the assumption that everything goes as planned and no internal or external obstacles will occur.

The Most Likely Time is an estimate of the expected time that is required to complete the task. The Pessimistic Time is the maximum time of the worst-case scenario in which the task should be

completed.


36/76


22

Activity 2.3

Project manager/project leader develops aproject schedule based on the following infor-mation:

Set of tasks which are identified in a se-quential manner

Project effort estimates Duration of the project stated in the con-

tractual arrangement made with the projectsponsor.

Activity 2.4

Project manager/project leader assigns pro-cess analysts to the project. Once again the

number of process analysts required dependson the project duration. The shorter the projectduration is, the larger the number of processanalysts is required. The responsibilities andrequired skills of process analysts are listed inBox 3.6.

Activity 2.5

Project manager/project leader compilesproject time and effort estimates, projectschedules, and project staff (process analysts)

into the detailed plan for project stakeholdersto review.

Activity 2.6

Project stakeholders review the detailed planand then provide feedback.

Activity 2.7

Project manager/project leader revises andrefines the detailed plan, based on the re-ceived feedback.

Activity 2.8

Project sponsor, in consultation with other project stakeholders, approves the detailedplan as the baseline for future project execu-

tion, monitoring and evaluation.

Phase II: Data collection and processdocumentation

The knowledge about existing business pro-cesses is normally embedded in governmentor private sector employees who routinely con-duct the business processes. Such knowledgeis usually not documented, thus impossible toanalyse and improve further. The purpose of

Box 3.6. Responsibilities and required skills of process analysts

Process analysts are responsible for the following:

Studying and analysing the current processes (as-is processes); Creation of the business process model; Developing recommendations how to improve the current processes; and Designing the new processes (to-be processes) in collaboration with other stakeholders.

Process analysts should be selected based on the following skills.

Technology skills: Although it is not necessary, basic knowledge of UML notations, especially in use casediagrams and activity diagrams is desirable. Related work experience is complementary. Business/organization skills: It is important that the selected process analysts know or have an access to

the individuals of the business domain subject to the business process analysis study. It is also very usefulif they have knowledge of a particular organization or industry associated with the targeted businessdomain.

Interpersonal/communication skills: The ability of the selected process analysts to effectively communicateand interact with other project members is crucial to project success. They should have the ability tocreate and sustain reasonably good relationships with project stakeholders and especially ProcessParticipants/Business Domain Experts.

Analytical skills: Ability to think analytically. They should be able to capture relevant information from verbalexpression and written documents. They should be able to summarize the information, as well as formulateand document the business processes.


37/76

23

Phase II is to make the knowledge of thesebusiness processes readily available throughdocumenting them. The documentation thencan serve as a baseline to improve the pro-cesses.

Phase II includes two steps:

Step 3 - Acquire background informationStep 4 - Conduct interviews and docu-ment captured data

Step 3: Acquire background information

It is important that process analysts acquire atthe outset as much background information onthe business processes under examination aspossible, prior to the face-to-face interviews.Background information could be obtained viadesk research through information publiclyavailable on the Internet, information portals,and at inquiry points of the agencies or busi-nesses involved in the business domain of interest.

The background information is useful for pro-cess analysts in the preparation of interviewquestions and makes them better prepared toconduct face-to-face interviews. Moreover, itallows them to effectively and efficiently capturethe information and data to be collected duringthe face-to-face interviews and put these into abroader context. Stakeholders participating inthis step are shown in Figure 3.6.

Activities associated with gathering the back-ground information are described in Figure 3.7,and further explained below.

Activity 3.1

For each use case (see Box 3.4 for example),

process analysts conduct desk research, whichinvolves the gathering of the background infor-mation, related laws and regulations from pub-licly accessible sources such as websites or inquiry points of relevant governmental agen-cies and business.

Activity 3.2

For each use case, process analysts system-atically record and organize relevant informa-tion into a folder. The folder should contain the

following information:

Names of government and other agenciesand businesses responsible for carrying outrespective activities in the business pro-cesses under examination (e.g. chambersof commerce, in case of issuance of a

non-preferential certificate of origin); Contact names and details of potential

interviewees in the identified agencies andbusinesses, i.e. officer-in-charge at the op-erational level for each activity;

Sequence of actions/activities in a process;i.e. processes and procedures required tomove goods across the border;

Forms and documents associated witheach action/activity (import/export permits,

SPS certificates7

, certificates of origin,commercial invoice, customs declaration,etc.).

Activity 3.3 The project manager/project lea-der reviews the outcome of desk research,including the interview questions, and deter-mines whether process analysts are ready toproceed with the next step.

Step 4: Conduct interviews and document captured data

The purpose of Step 4 is to conduct the face-to-face interviews with process participants/business domain experts. Face-to-face inter-views are the most commonly used data col-lection method for the business process analy-sis exercise. This process aims to confirm theaccuracy of the previously collected back-ground information in order to gain an in-depthunderstanding of each use case or core busi-ness process in question. Such comprehensiveinformation is necessary for creating a visual

representation as well as descriptive explana-tion for each use case.

Once the face-to-face interview sessions withthe relevant business process participants havebeen conducted, process analysts consolidateall inputs from interviewees and documentthem. There are three main outputs thatshould be delivered under Step 4:


7Sanitary and Phytosantary certificate


38/76


24


4) Conduct interviewsand documentcaptured data

Project Sponsor


Process Analysts


This step requires the participation from: Process Analysts Process Participants/ Business Domain Experts Project Manager/ Project Leader Project Sponsor


Process Analysts

3) Acquire backgroundinformation


This step requires the participation from: Project Analysts Project Manager/Project Leader


Process Analysts Project Manager/Project Leader

Conduct deskresearch

Record andorganize

information

Folder of backgroundinformation

Review and providefeedback

Insufficient

Sufficient


39/76

25


Activity diagrams Process descriptions, including a list of rel-

evant forms and documents as well aslaws, rules and regulations

Time-procedure chartsThe stakeholders and activities involved in thisstep are shown in Figures 3.8. and 3.9.

Activity 4.1

Process analysts contact potential intervieweesby phone or email to agree on the date, timeand venue of the face-to-face interview. Asnoted before, potential interviewees are se-lected based on their involvement in a busi-ness process area of interest and the type of information that they can provide. Process par-


Project Manager/Project Leader Process Analysts Process Participants/Business Domain Experts

Project Sponsor

Oversee the conductof project tasks

Plan theinterview session

Invite potentialinterviewee

A list of interviewquestions

Conduct theinterview

Allocate time for an interview

Participate inthe interview

No

Yes

Consolidatecollected data

A set of activity

diagrams

Develop textualdescription

A set of processdescription

Integrateconsolidated data

Review and

provide feedback

Accurate Inaccurate


Accurate Inaccurate

Accurate Inaccurate


Integratedactivity diagram

Time-procedurechart

Prepare a submissionof all deliverables

A set of activitydiagrams

A set of processdescription

Integratedactivity diagram

Time-procedurechart

Acknowledge theproject progress


40/76


26

ticipants/business domain experts who are incharge at the operational levels have relativelymore potential as interviewees, as they usuallydeal with respective procedures and formalitiesassociated with the business process of inter-

est on a daily basis.

It is important that process analysts havesound communication skills. Prior to invitingthe potential interviewees, process analystsneed to introduce themselves in a polite,friendly, and professional manner. Processanalysts also need to clearly explain the pur-pose of the interview, how this interview willcontribute to the overall business processanalysis exercise, what will be the results of this exercise and how these will be used.

Doing so allows them to establish a good

rapport with the potential interviewees. Estab-lishing a good rapport not only increases thechance of having potential intervieweesparticipate effectively in the planned face-to-face interview, but also helps create a

pleasant atmosphere during the interview.Pleasant atmosphere is a vital preconditionfor a successful and result-oriented interviewsession.

Activity 4.2

Process participants/business domain expertsdecide if they wish to participate.

If process participants/business domain expertsagree to participate, they inform process ana-lysts when it is convenient to have a face-to-

face interview. If not, process analysts look for

Box 3.7. Examples of interview questions

Business process analysis: How many people are involved in this business process? What are necessary activities that an exporter/importer has to take in order to acquire a particular

document? What are supplementary documents that an exporter/importer has to submit along with the application form

when a particular document is requested?

How can an exporter/importer who is to submit the application form collect the requested document(manually or electronically)? Are copies of documents accepted in lieu of original documents? Is there any fee that an exporter/importer has to pay in order to acquire the document? If so, how much? What are the laws or regulations associated with these procedural and documentary requirements? Which business processes can be carried out in parallel? Which business process has to be carried out next?

Information flow analysis: With which other actor in the business do you need to communicate? What kind of data do you exchange? What kind of information do you send to which actor?

Time analysis: How much time, including waiting time, in average hours or days does it take to complete this entire

business process from the beginning to the end? What is the maximum and minimum time? How many actual man-hours does it require to complete this particular activity in this business process?

Cost analysis: How much on the average does it cost to complete this particular activity in this business process or to

process one document?

Suggestions for improvement: What are problems/bottlenecks you encounter in procedures and regulations to import or export? What are improvements that you would like to see in the near future?


41/76

27

other potential interviewees who can substitutefor the person who rejected an interview.

Activity 4.3

Process analysts prepare a list of questionsbased on the background information acquiredearlier. The questions need to be easy tounderstand and structured in a logical se-quence to ensure the best possible result. Thequestions should allow the process analysts togain a better understanding of those pointsthey have previously found unclear. Examplesof such interview questions, which were gener-alized from the Frozen Shrimp Export ProcessAnalysis, are provided in Box 3.7.

Activity 4.4

Process analysts conduct the face-to-faceinterviews with the process participants/business domain experts. It is recommendedthat the following issues are taken intoaccount.

Each face-to-face interview session is at-tended by one, or in specific cases, by atmaximum two process analysts. Having twoprocess analysts in the session is in factnecessary when the process analysts are

relatively new to the field, or have littleexperience in conducting business processanalysis.

If the interview is tape recorded, it isnecessary to obtain permission from theinterviewee prior to the interview.

Although the process analysts conduct theinterview session with prepared questionswhich are organized in a logical sequence,the interview is unlikely to be a questionand answer session. Therefore, it is recom-

mended to keep the interview free-flowingand conversational, however within a basicstructured framework. The best way isto start with general questions to drawinformation about a particular businessprocess that is common to all operationalcases. The general questions are thenfollowed by more specific questions notonly to seek clarifications but also to iden-tify discrepancies and conditions wheresuch discrepancies occur. Process analystsshould adjust their questions according to

how the interviewee is responding. They

may also inject their opinions or ideas tostimulate the interviewee to express andelaborate his/her ideas related to the sub-

ject matter.

During the face-to-face interviews, the pro-cess analysts should also seekinterviewees opinions and observations onany bottlenecks and issues related to theprocess, documents, laws, and regulationsthat should be improved, why and how toimprove them.

Process analysts should take notes care-fully. All points the interviewees makeshould be written down, even though theymay sound irrelevant at the moment.

Process analysts should provide feedbackon statements made by the interviewees toconfirm their correctness and understandingof the obtained information.

Process analysts should always respect thetime schedule. A summary of the major points should be made before ending theinterview session.

Activity 4.5

Process analysts consolidate all the statements

made by interviewees into an activity diagramfor each use case immediately upon their re-turn to the office. This work should be com-pleted within maximally two working days after the interview.

An activity diagram portrays a sequence of activities carried out to achieve a specificgoal. It illustrates detailed activities and flowsof information or documents from one respon-sible party to another in a given sequence.During this step, the process analysts mightdiscover common patterns in the activity dia-grams. Reusing these patterns helps avoidrepetition of work and save time. For example,the customs declaration process from the busi-ness process analysis of exporting frozenshrimp can be reused in a business processanalysis for exporting frozen poultry products.Table 2.2 presents the basic elements andnotations of an activity diagram that is appliedin this business process analysis study.Box 3.8 illustrates an example of an activity

diagram.



42/76


28

Activity 4.6

Process participants/business domain expertsreview the activity diagrams and then providefeedback.

Activity 4.7

Process analysts revise and/or refine individualactivity diagrams, as necessary.

Activity 4.8

Process analysts provide textual description of individual activity diagrams.

Process description has to include the follow-

ing elements:a) The name of a process area which this

particular business process belongs to;b) The name of a business process;

Box 3.8. Case Study Activity diagram of Have the product sampled and examineduse case within the BPA of frozen shrimp export in Thailand

Authorized Private Inspector Exporter (or Representative) Department of Fisheries

Swimlane shows a boundary of activity to becarried out by a responsible actor.

Sequence of activitiescarried out to achieve

specific goals

Diamond indicates thepoint where a decision

has to be made.

Final flow state indicatesthat further activitiescannot be pursued.

Examinesample

Record the resultof examination

Test Report

Final state shows where thesequence of activities reachesits end with its goals achieved.

CollectTest Report

CollectTest Report

Object represents a documentor information that flows from

one activity to another.

Deliver sample

Request for Sampling

Collectsample

Submit Requestfor Sampling

Schedule thesampling date

Have product readyfor sampling

Initial state shows wherethe sequence of activities begins.

Notify the date for sample collection

Collectsample

Record samplingresult

Examinesample

Record result of

examination

Test Report

Soure: ESCAP from the Analysis of Frozen Shrimp Export Process in Thailand, Institute for Innovative IT, Kasetsart University.


43/76


44/76


30

Activity 4.10

Process analysts revise and/or refine processdescription of each activity diagram, as neces-sary.

Activity 4.11

Process analysts work together to integrate allactivity diagrams of the business processesassociated with all use cases defined earlier into a single integrated activity diagram. Theintegrated activity diagram represents aninterconnected view of business processesused in an industry or to provide a particular service. It illustrates relationships between corebusiness processes, process participants, andinformation flow throughout the area under

the scope of the study. An example of anintegrated activity diagram is provided inBox 3.9.

Activity 4.12

Process analysts develop a time-procedurechart based on the average time required tocomplete one business process represented byone use case. The development of a time-procedure chart should be in line with theWorld Bank methodology used in the Trading

Across Borders study of the Doing Businessproject. 8 An example of the time-procedurechart is provided in Box 3.10.

Activity 4.13

Process participants/business domain expertsreview the integrated activity diagram and time-procedure chart, and then provide a feedback.

Activity 4.14

Process analysts revise and/or refine the inte-grated activity diagram and time-procedurechart as necessary.

Activity 4.15

Project manager/project leader, in addition tooverseeing the project tasks carried out byprocess analysts, consolidate all deliverablesachieved in this step for a submission toproject sponsor.

Activity 4.16

Project sponsor acknowledges the completionof the documentation of existing business pro-cesses.

Phase III: Process analysis andrecommendationsdevelopment

A better understanding of the as-is processesis obtained once the processes are definedand documented. Activity diagrams, processdescriptions listing all documentary require-ments, the associated documents, laws, rules,and regulations as well as time-procedurecharts have been prepared to provide thestakeholders with an overall and integratedview of the current situation and the discov-ered problem areas. Based on these inputs,recommendations for improvement can be de-veloped. International recommendations ontrade and transport facilitation and best prac-tices such as UN/CEFACT Recommendation18 (see Box 3.11), can be considered andapplied. The logical steps in this phase in-clude:

Step 5 - Analyse the as-is processesand identify bottlenecksStep 6 - Develop and propose recom-mendations

Step 5: Analyse the as-is processes and identify bottlenecks

The purpose of Step 5 is to identify the bottle-necks of the as-is processes described in theactivity diagrams, the process descriptions, andthe time-procedure chart. It aims at developinga set of observations related to the currentbusiness processes that have potential for improvement, such as the identification of duplicated and redundant procedural anddocumentary requirements which cause delays.Figure 3.10 shows stakeholders participatingin Step 5.

Illustration of necessary activities that have tobe conducted in order to analyse the as-isbusiness processes and identify the bottle-

necks is provided in Figure 3.11.

8 World Bank, The Doing Business project, http://

www.doingbusiness.org


45/76

31

Activity 5.1

Process analysts identify the bottlenecks andrecord observations related to the current as-is business processes that have the potentialfor improvement.

To locate the bottlenecks, process analystsmay first review the time-procedure chart, as itvisualizes those particular business processesthat require an extensive time to complete.They can then examine the relevant activitydiagram together with the associated processdescription to learn what may cause the longdelays. The potential causes of such problems

may include duplicated and redundant proce-dural and documentary requirements, as wellas outdated laws or unnecessary regulationsthat create operational obstacles.

Activity 5.2 Project manager, process participants/businessdomain experts, and project sponsor review aset of observations listing bottlenecks in theas-is business processes and provide feed-back.

Activity 5.3

Process analysts revise/refine it as necessary.


This time-procedure chart is an illustration of the time required to complete each business process in thebusiness domain of interest. It assists the process analysts in spotting where possible bottlenecks are. Whileeach bar on the x axis represents an individual procedure within a business process, the y axis represents theaverage total time (number of days, in this case) required to complete that particular procedure.


Box 3.10. The time-procedure chart from the BPA of frozen shrimp export in Thailand

Days35

30

25

20

15

10

5

0 Process

2 days

14 days

3 days1 day

1 day1 day

1 day

3 days

4 days

11

10

9876

54

3

2

1

1. Buy Conclude sales contract and trade terms2. Have product sampled and technically examined3. Arrange transport4. Prepare export permit5. Apply for cargo insurance6. Prepare and submit customs declaration7. Stuff container and transfer it to port of departure8. Clear goods through customs9. Handle container at terminal and stow it on vessel10. Prepare documents required by importer as listed in L/C11. Pay Claim payment of goods

1 2 3 4 5 6 7 8 9 10 11


46/76


32

Box 3.11. UN/CEFACT Recommendation No. 18: Facilitation MeasuresRelated to International Trade Procedures

UN/CEFACT Recommendation No. 18 provides a comprehensive set of recommendations regarding interna-tional best practices and standards for the facilitation and harmonization of trade transactions. In order tounderstand the complexity of international trade, including the key elements of a trade transaction, UN/CEFACTdeveloped a model of the international supply chain. Based on this model, specific measures were developedto cover the key elements of the trade transaction process. These are presented under four major categories,namely: commercial measures; international payment measures; official control measures; and transport-relatedmeasures.

Recommendation No. 18 is targeted both at companies involved in the business of trade, and at nationalgovernments and national and international organizations related to trade. The Recommendation should beespecially relevant to transition and developing countries which can still significantly improve their economicperformance by streamlining international trade procedures. There are some general principles appropriate for officials and a dedicated section: Group 3: Measures related to official controls. Here are some examples:

Procedures and data requirements

Procedures should be kept to a minimum. They should be commercially oriented and relate closely totrade and transport requirements. Procedures should be simplified, harmonized and should comply withinternational standards.

Data requirements should be kept to a minimum, and should be simplified, harmonized and standardized,to ease the information flow.

Laws, regulations and other information regarding procedures and data requirements should be readilyaccessible to all parties concerned.

Information technology

Transition strategies to replace paper documents by electronic information exchange or electronic docu-ments are common practice. The use of information and communication technology and the resultingelectronic solutions should be encouraged.

Recommended measures related to official controls

Predictability: The time required, the procedures used and the fees related to official regulations shouldbe predictable.

Transparency: All relevant information of general application pertaining to official rules and regulations,including information about procedures and control requirements, should be made available to the businesscommunity as well as to government bodies.

Cost-benefit analysis: Before introducing new requirements or prolonging existing rules for inspection,control and testing of goods in international trade, the authorities concerned should make cost and benefitassessments of proposals in consultation with the business community.

These recommendations provide further input for possible improvements at this stage of the BPA. Several to-be models might be set up to and compared to identify the optimal solution.

UN/CEFACT Recommendation No.18 can be downloaded in English, French and Russian version from: http://www.unece.org/cefact/recommendations/rec_index.htm


47/76

33



5) Analyze the as-isprocesses and identify

bottlenecks

Project Sponsor


Process Analysts


This step requires the participation from: Process analysts Process Participants/ Business

Domain Experts Project Manager/ Project Leader Project Sponsor


Process Analysts

Unacceptable



Project Sponsor

A set of activity

diagrams

A set of process

description

Integratedactivity

diagram

Time-procedure

chart

Identifybottlenecks

A set of observations listingbottlenecks in the as-is

business processes


Incomplete Complete Review andprovide feedback

Acceptable

Approve

Inaccurate

Accurate Review andprovide feedback


48/76


34

Activity 5.4

Project sponsor, in consultation with processparticipants/business domain experts andproject manager/project leader, approves theobservations.

Step 6: Develop and proposerecommendations

The objecti