3. business process analysis guide to simplify trade procedures

11

3A INTRODUCTION TO PHASES,STAKEHOLDERS AND OTHERRELATED ISSUES

The business process analysis consists ofthree phases that have to be carried out insequence (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-is”process and identify

bottlenecks

6) Develop and proposerecommendations

Business Process Analysis Guide to Simplify Trade Procedures

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 Developproject detailed plan background interview and “as-is” andscope 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 forneeded Make Collect and and process

necessary consolidate improvement simplificationpreparation data opportunitiesfor interview of the “as-is”and 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 ofDomain 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 bottlenecksStep 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 ofthe business process analysis are summarizedin Table 3.1.

13

3. Business Process Analysis Guide to Simplify Trade ProceduresTa

ble

3.2.

Ove

rvie

w o

f B

PA

Step

Del

iver

able

sD

o’s

Don

’ts

(Con

tinue

d on

nex

t pa

ge)

Step

1:

Def

ine

proj

ect

scop

eU

se c

ase

diag

ram

and

des

crip

tion

illust

ratin

g:–

Bus

ines

s do

mai

n–

Pro

cess

are

as–

Pro

cess

par

ticip

ants

–Bu

sine

ss

proc

esse

s in

w

hich

th

ose

parti

cipa

nts

inte

ract

Be

prec

ise

on t

he s

cope

of

the

proc

ess

anal

ysis

stu

dy.

Spec

ify t

he e

nviro

nmen

t an

d co

nditi

ons

in w

hich

the

bus

ines

s do

mai

n of

int

eres

top

erat

es,

such

as

m

ode

of

trans

port,

te

rms

of

deliv

ery,

te

rms

of

paym

ent,

coun

try o

f de

stin

atio

n, a

nd c

ount

ry o

f or

igin

at

the

early

pha

se o

f th

e bu

sine

sspr

oces

s an

alys

is p

roje

ct,

beca

use

diffe

rent

mod

es o

f tra

nspo

rt, t

erm

s of

del

iver

y,an

d te

rms

of p

aym

ent

have

diff

eren

t pr

oced

ural

and

doc

umen

tary

req

uire

men

ts.

Set

the

sco

pe f

rom

the

per

spec

tive

of t

he b

enef

icia

ry.

For

exam

ple,

with

lim

ited

reso

urce

s, d

etai

led

mod

elin

g an

d an

alys

is o

f th

e bu

sine

ss p

roce

ss f

or t

he e

xpor

tof

one

pro

duct

is

not

poss

ible

. In

thi

s ca

se,

the

emph

asis

sho

uld

be o

rient

edto

war

ds p

roje

ct b

enef

icia

ry.

If th

e be

nefic

iary

is

an e

xpor

ter,

the

emph

asis

is

onw

hat

the

expo

rter

has

to d

o in

ord

er t

o sh

ip t

he c

argo

to

the

dest

inat

ion

coun

try.

If th

e be

nefic

iary

is

a ca

rrier

, th

e em

phas

is i

s on

wha

t th

e ca

rrier

has

to

do i

nor

der

to l

eave

the

por

t of

dep

artu

re.

Bre

ak t

he p

roje

ct i

nto

sub-

proj

ects

if

the

scop

e is

rel

ativ

ely

larg

e. F

or e

xam

ple,

if

the

proj

ect

requ

ires

the

anal

ysis

of

busi

ness

pro

cess

es f

or e

xpor

ting

10 c

ount

ries’

stra

tegi

c pr

oduc

ts,

brea

k th

e pr

ojec

t in

to 1

0 su

b-pr

ojec

ts a

nd d

efin

e th

e pr

ojec

tsc

ope

for

each

of

them

.

Do

not

set

the

scop

e th

at i

sto

o br

oad

or v

ague

.

Step

2:

Dev

elop

ade

taile

d pl

an a

ndse

cure

res

ourc

es

Det

aile

d pr

ojec

t pl

an

incl

udin

g hu

man

reso

urce

s,

sche

dule

s,

and

softw

are

supp

orte

d to

ols

A l

ist

of p

oten

tial

inte

rvie

wee

s an

d th

eir

con-

tact

inf

orm

atio

n

Set

up

a te

am t

hat

cons

ists

of

proc

ess

anal

ysts

with

crit

ical

thi

nkin

g.D

o no

t un

dere

stim

ate

the

ef-

forts

an

d tim

e ne

eded

fo

rce

rtain

ta

sks,

es

peci

ally

thos

e re

late

d to

hu

man

inte

ract

ions

, e.

g.

data

colle

ctio

n an

d ve

rific

atio

n.

Step

3:

Acqu

ireba

ckgr

ound

info

rmat

ion

A

fold

er

of

back

grou

nd

info

rmat

ion

on

the

busi

ness

pr

oces

ses

whi

ch

may

be

acco

mpa

nied

by

a br

ief

expl

anat

ory

note

of

the

busi

ness

ste

p.

A l

ist

of g

uidi

ng q

uest

ions

for

the

int

ervi

ew

Do

colle

ct

as

muc

h ba

ckgr

ound

in

form

atio

n as

po

ssib

le

from

di

vers

eav

aila

ble

sour

ces.

Do

not

cond

uct

any

inte

r-vi

ew s

essi

on b

efor

e th

e in

-te

rvie

wer

ha

s su

ffici

ent

back

grou

nd

info

rmat

ion

and

beco

mes

fa

milia

r w

ithth

e or

gani

zatio

n an

d th

esp

ecifi

c bu

sine

ss

pro-

cess

es u

nder

int

ervi

ew.

Step

4:

Con

duct

inte

rvie

ws

and

docu

men

t ca

ptur

edda

ta

A s

et o

f ac

tivity

dia

gram

s ill

ustra

ting:

–St

artin

g an

d en

ding

poi

nts

–P

re-c

ondi

tions

an

d po

st-c

ondi

tions

of

each

bus

ines

s pr

oces

s–

A s

et o

f ac

tiviti

es–

Doc

umen

ts

asso

ciat

ed

with

ea

chbu

sine

ss t

rans

actio

n–

Out

put

and

crite

ria

to

exit

the

busi

ness

pro

cess

Info

rm

inte

rvie

wee

s ab

out

over

all

expe

ctat

ions

fro

m

the

inte

rvie

w

sess

ion

and

the

spec

ific

busi

ness

pro

cess

es o

f in

tere

st.

Def

ine

and

docu

men

t pr

oces

ses

in a

way

tha

t re

flect

s th

e cu

rrent

sta

te o

fpr

actic

es.

Whe

n de

scrib

ing

and

docu

men

ting

a pr

oces

s, s

tart

with

the

act

ivity

dia

gram

.D

raw

ing

help

s fo

rmul

ate

idea

s an

d a

logi

cal

sequ

ence

of

ac

tiviti

es.

Mos

tlik

ely,

dra

win

g th

e fir

st d

iagr

am i

s go

ing

to b

e a

stru

ggle

. If

two

conn

ectin

g

Do

not

atte

mpt

to

cr

eate

proc

esse

s th

at

look

“p

er-

fect

” fro

m

the

begi

nnin

g.P

erfe

ctio

n do

es

not

repr

e-se

nt w

hat

actu

ally

hap

pens

in

real

ity

and

thus

ca

nnot

serv

e as

a b

asel

ine

for

im-

prov

emen

t.


14

Tabl

e 3.

2. (

cont

inue

d)

Step

Del

iver

able

sD

o’s

Don

’ts

–Th

e av

erag

e tim

e re

quire

d to

com

plet

eth

at p

roce

ss s

tep

A

set

of

busi

ness

pr

oces

s de

scrip

tions

desc

ribin

g:–

The

nam

e of

a p

roce

ss a

rea

to w

hich

this

pa

rticu

lar

busi

ness

pr

oces

sbe

long

s–

The

nam

e of

the

bus

ines

s pr

oces

s–

Rel

ated

rul

es a

nd r

egul

atio

ns–

The

nam

e of

the

res

pons

ible

par

ties

–In

put

and

crite

ria

to

ente

r/beg

in

the

busi

ness

pro

cess

–A

ctiv

ities

and

ass

ocia

ted

docu

men

tary

requ

irem

ents

to

com

plet

e th

is s

tep

(incl

udin

g fo

rms,

an

d do

cum

ent

tem

-pl

ates

and

exa

mpl

es)

–O

utpu

t an

d cr

iteria

to

ex

it th

e bu

sine

ss p

roce

ss

Act

ivity

di

agra

m

illust

ratin

g in

tegr

ated

proc

esse

s in

the

bus

ines

s do

mai

n

Tim

e-P

roce

dure

C

hart,

a

char

t illu

stra

ting

rela

tions

hips

be

twee

n bu

sine

ss

proc

ess

and

time

requ

ired

to c

ompl

ete

each

bus

i-ne

ss

proc

ess

in

the

busi

ness

do

mai

n of

inte

rest

activ

ities

in

a lo

gica

l se

quen

ce d

o no

t m

ake

sens

e, i

t m

eans

som

e ac

tiviti

esm

ay b

e m

issi

ng i

n be

twee

n.

Writ

e do

wn

ques

tions

th

at

com

e up

w

hen

draw

ing

the

diag

ram

an

d us

eth

em

for

anot

her

inte

rvie

w

sess

ion.

St

ruct

ure

the

seco

nd

roun

d of

th

ein

terv

iew

bas

ed o

n th

ese

ques

tions

.

Hol

d an

ex

perie

nce-

shar

ing

sess

ion

amon

g th

e te

am

of

proc

ess

anal

ysts

from

tim

e to

tim

e. E

xper

ienc

e sh

arin

g al

low

s pr

oces

s an

alys

ts t

o ob

serv

ean

d de

pict

pa

ttern

s in

so

me

proc

esse

s ac

ross

th

e bu

sine

ss

dom

ain.

Fo

rex

ampl

e,

proc

ess

anal

ysts

re

spon

sibl

e fo

r de

finin

g pr

oces

ses

of

diffe

rent

prod

ucts

will

disc

over

am

ong

them

selv

es t

hat

no m

atte

r w

hat

prod

ucts

the

rear

e, t

rade

rs h

ave

to c

ompl

y w

ith c

usto

ms

regu

latio

ns i

n su

bmitt

ing

cust

oms

decl

arat

ions

fol

low

ing

sim

ilar

inst

ruct

ions

.

Alw

ays

reus

e pa

ttern

s (d

iagr

am o

f id

entic

al a

ctiv

ities

) w

here

app

licab

le,

as i

tsa

ves

time

and

ensu

res

the

cons

iste

ncy

of p

roce

sses

acr

oss

the

busi

ness

dom

ain.

Step

5:

Ana

lyse

the

“as

- is

”pr

oces

ses

and

iden

tify

bottl

enec

ks

A s

et o

f ob

serv

atio

ns o

f th

e “a

s-is

” pr

oc-

esse

s th

at

have

th

e po

tent

ial

to

be

im-

prov

ed

Dur

ing

the

inte

rvie

w, s

eek

inte

rvie

wee

s’ o

pini

ons

and

obse

rvat

ions

on

bottl

e-ne

cks

and

issu

es

rela

ted

to

the

proc

edur

al,

regu

lato

ry,

and

docu

men

tary

requ

irem

ents

tha

t sh

ould

be

impr

oved

and

how

to

impr

ove

them

.

Do

not

wai

t to

the

end

to

anal

yse

and

iden

tify

any

bottl

enec

ks

and

reco

m-

men

datio

ns

for

impr

ove-

men

t. R

athe

r, in

crem

enta

llyco

llect

th

em

alon

g va

rious

phas

es

of

the

proc

ess

anal

ysis

stu

dy.

Step

6:

Dev

elop

and

prop

ose

reco

mm

enda

tions

Fina

l re

port

with

re

com

men

datio

ns

for

proc

ess

sim

plifi

catio

n,

whi

ch

may

in

clud

edi

agra

ms

of “

to-b

e” b

usin

ess

proc

esse

s

Con

sult

rele

vant

st

akeh

olde

rs

to

find

out

the

limita

tion

of

wha

t ca

n an

dca

nnot

be

done

for

pro

cess

im

prov

emen

t re

com

men

datio

ns.

List

en t

o th

eir

reas

ons

why

a p

artic

ular

pro

cedu

ral,

regu

lato

ry,

or d

ocum

en-

tary

req

uire

men

t is

nec

essa

ry.

Do

not

assu

me

that

al

lpr

opos

ed r

ecom

men

datio

nsca

n be

im

plem

ente

d.

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

The six steps described in this guide, togetherwith deliverables of the business processanalysis report, are summarized in Table 3.2.The same table also provides guidance onwhat should be done (the “Do’s”) and whatshould be avoided (the “Don’ts”) 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, thisview illustrates the high-level business pro-cesses and actors associated with each ofthem.

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 oftransport, 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 SponsorThis UML use case diagram indicates that Step 1 “Defineproject scope” requires the participation from:– Project Sponsor– Project Manager/Project Leader– Process Participants/Business Domain Experts


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 forall 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 country’s 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 Thailand’s 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 Accurate Approve

Identify abusiness domain

of interest

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 leaderuses 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 associationsbetween 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 ofshipping 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 exporter’s 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.

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

Use case

Boundary


18

Activity 1.6

Project manager/project leader revises and/orrefines 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 ofuse 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 ofFisheries

Carrier(Shipping Line)

PortAuthority

Department ofForeign Trade

Department ofConsular Affairs

The Central IslamicCommittee Office Thailand

Customs

Customs’Bank

2.1) Haveproduct sampled

and examined

2.2) Arrangetransport

2.3) Prepareexport permit

2.4) Apply forcargo insurance

2.5) Prepare andsubmit customs

declaration

2.6) Load containerand transfer to port

of departure

2.7) Clear goodsthrough customs

2.8) Handlecontainer and stow

it on vessel

2.9) Preparedocuments required

by importers

Exporter orRepresentative

1) BuyImporter

3) Pay

Importer’sBank

Exporter’sBank


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


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 leaderneeds to anticipate project activities outlined inStep 3 onward. While Activity 3.1 – 3.3 andActivity 4.1 – 4.10 have to be carried out for all

6 Marchewka, J.T. (2006). Information TechnologyProject Management, 2nd ed. John Wiley & SonsInc., Hoboken, NJ.

core business processes represented by usecases in the use case diagram (see Box 3.4 foran example), the rest – including the develop-ment of integrated activity diagram, time-proce-dure chart, a list of identified bottlenecks, andrecommendations 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 ofsimilar 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) estimate6 might be used for thispurpose. (See Box 3.5)

21

1) Buy

3) Pay





2.1) Have productsampled and

examined

2.2) Arrangetransport

Importer

Importer’s Bank

Importer

Exporter’s Bank

AuthorizedPrivate Inspector


Inland Haulage





Exporter’s Bank


Inland Haulage

Customs

2.7) Cleargoods through

customs

2.6) Stuff containerand transfer to port

of departure

2.5) Prepare andsubmit customs

declaration

2.4) Applyfor cargoinsurance

2.3) PrepareExport permit

Departmentof Fisheries

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 ofForeign Trade


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 Time 6

• 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.


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 thenumber 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 otherproject 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 tothe 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.

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 ofinterest.

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 orinquiry 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 thefollowing 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 anon-preferential certificate of origin);

• Contact names and details of potentialinterviewees 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 documentcaptured 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 visualrepresentation 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:


7 Sanitary and Phytosantary certificate


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 ofbackgroundinformation

Review and providefeedback

Insufficient

Sufficient

25


• Activity diagrams

• Process descriptions, including a list of rel-evant forms and documents as well aslaws, rules and regulations

• Time-procedure charts

The 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 ofinformation 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 ofinterviewquestions

Conduct theinterview

Allocate time foran interview

Participate inthe interview

No

Yes

Consolidatecollected data

A set of activitydiagrams

Develop textualdescription

A set of processdescription

Integrateconsolidated data


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


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 ofthis 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 apleasant 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 entirebusiness 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 toprocess 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?

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 arerelatively 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 tohow 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 majorpoints should be made before ending theinterview session.

Activity 4.5

Process analysts consolidate all the statementsmade 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 afterthe interview.

An activity diagram portrays a sequence ofactivities 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 activitydiagram.



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 4.8Process analysts provide textual description ofindividual 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 examined”use 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.

Deliversample

Request forSampling

Collectsample

Submit Requestfor Sampling

Schedule thesampling date

Have product readyfor sampling

Initial state shows wherethe sequence ofactivities begins.

Notify the date forsample collection

Collectsample

Record samplingresult

Examinesample

Record result ofexamination

Test Report

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

29


c) Related rules and regulations;d) The name of responsible parties;e) Input and criteria to enter/begin the busi-

ness process;f) Procedures and associated documentary

requirements to complete the process;g) Output and criteria to exit the business

process; and

h) The average time required to completethe process and/or durations for each in-volved transaction.

Activity 4.9

Process participants/business domain expertsreview process description and then providefeedback.

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

The above diagram illustrates the integration of some business processes (use cases) that have to be carried outin order to export frozen shrimp from Thailand. The use cases shown in this diagram include “prepare and submitcustoms declaration”, “load container and transfer to port of departure”, “clear goods through customs”, and“handle container at terminal and stow it on vessel”. In the horizontal swimlanes, all process participants involvedin exporting frozen shrimp from Thailand are listed. As can be seen from the top, they are Department of ConsularAffairs, the Central Islamic Committee Office Thailand, Department of Foreign Trade or Authorized Certificate ofOrigin Issuer, Importer’s Bank, Exporter’s Bank, Importer, Authorized Private Inspector, Exporter or Representa-tive, Department of Fisheries, Inland Haulage, Carrier (Shipping Line or Agent), Custom’s Bank, Port Authority.


Port AuthorityInland Haulage

Prepareinformation for

cargo movement

Goods TransitionControl List

SubmitTKT. 308.2and pay entry fee

TKT. 308.2

Correct

Incorrect

Goods TransitionControl List Accept

Goods Transition

Control List Reject

Print out GoodsTransition Control List

and Prepare R. 9

Export License (R. 9)

Recordcargo/container

information

Transfer cargoto port

Acknowledgepayment ofentry fee

Measure weightof cargo/container

Inspect container conditionat time of gate in

EquipmentInterchange

Receipt (EIR)

Take cargo toSub-Gate

Prepare Requestfor Port Entry(TKT. 308.2)

Receipt

Ask for permissionto enter port at

Main GateRecord date-time

of port entryTake cargo to

point of containerinspection

Specify a point in a terminalWhere container will be placed

Prepare EIR

Receive EIR

Allocate equipmentfor cargo handling

Goods Transition

Control List

Packing List

Customs Exporter (or Representative)

Monitorcontainer stuffing

Monitorcontainer sealing

Verify

information

Customs

Prepare Declaration

information

Verify submittedinformation

Exporter’s Bank Customs’ Bank

Commercial Invoice

R. 9 Reference Number

Export Declaration

Order dutypayment

Declaration Accept

Payment Order

Declaration Reject

Deduct notifiedamount

Bank Statement

Acknowledgededuction for

duty payment

Debit Advice

Acknowledgeduty payment

Remittance Advice

Credit Advice

Acknowledgepayment transfer

Receipt No.

Update statusof Declaration

No duty

Duty

Correct

Incorrect

Exporter (or Representative)

ReceiveReceipt No.

CustomsInland Haulage

Retrieve declarationinformation

Cross check declarationinformation with handed

in documents

Questionable ofmisconduct

Allow goodsto be exported

Goods TransitionControl List Audit

Transfer containerto point of inspection

Inspectcargo

Record a case

to be filedMisconduct

not found

Misconduct

found

Export Permit (R. 9)

EquipmentInterchange Receipt

Goods TransitionControl List

Notifyquantity exported

R. 9 with information onactual quantity exported

Acknowledgeactual quantityto be exported

Exporter(or Representative)


Acknowledgeactual quantityto be exported

Unquestionableof misconduct


Record date-timeof when container

is stacked

ContainerLoading List

ContainerList Message

Coordinate a

transfer ofcontainer to berth

Coordinate atransfer of

container to berth

Record a numberof container

stowed on vessel

Outward Container List

Bill ofLading

Correct

PrepareManifest

Manifest

Port AuthorityInland HaulageCustomsExporteror Representative

Transfer containerto terminal

Coordinate containerhandling at terminal

Stack containerat terminal

Prepare ContainerLoading List

Allocaterequired

equipment

Transfercontainer to berth

Prepare OutwardContainer List

Stow containeron vessel

Determine servicecharge to be collected

Manage a stowing of

container on vessel

Receive

B/L

PrepareB/L

Acknowledgeand approve

Verify no. ofconsignments

exported withdeclarations

Incorrect

Acknowledge servicecharge to be paid

Exporter or

Representative

Importer

Exporter’s Bank

Importer’s Bank

Customs

Department of Foreign Trade(or Authorized CoOIssuer)

The Central Islamic

Committee OfficeThailand

PortAuthority


Insurance

Company

Carrier/Shipping Line

or Agent

Inland

Haulage

Department

of Fisheries

Authorized

Private Inspector

Customs’ Bank

ePrepare

Declaration

information

Verify submittedinformation

Commercial Invoice

R. 9 Reference No.

Export Declaration

Order duty

payment

Declaration

Accept

Payment

Order

Declaration Reject

Invoice Reject

and/or

Deduct

notified amount

Bank

Statement

Acknowledge

deduction forduty payment

Debit

Advice

Acknowledge

duty payment

Remittance

Advice

Credit

Advice

Acknowledgepayment transfer

Receipt No.Update status

of declaration

ReceiveReceipt No.

No duty

Duty

Correct

Incorrect

f f

g

f Prepare informationfor cargo movement

Monitor stuffing

of container

Monitor sealing

of containerGoods Transition

Control List

Submit Request forPort Entry and

pay entry fee

Verify

information

Goods TransitionControl List Reject

Prepare Request

for Port Entry

cTake empty container

to manufacturer

Request forPort Entry

(TKT. 308.2)

Goods Transition

Control List Accept

Print out Goods Transition

Control List and Prepare R. 9

Export License

(R. 9)

Record cargo/

containerinformation

Acknowledge

payment of

entry fee

Receipt

Transfer

cargo to port

Ask for permission

to enter portat Main Gate

h

Correct

Incorrect

Goods Transition

Control List

Exporter or

Representative

Importer

Exporter’s Bank

Importer’s Bank

Customs

Department of Foreign Trade

(or Authorized CoOIssuer)

The Central Islamic

Committee OfficeThailand

Port

Authority

Department of

Consular Affairs

InsuranceCompany

Carrier/Shipping Line

or Agent

Inland

Haulage


Authorized

Private Inspector

Customs’ Bank

2.5) Prepare and

submit customs

declaration

2.6) Stuff container

and transfer to port

of departure

2.7) Clear goods

through customs

2.8) Handle container

at terminal and stow

it on vessel


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 earlierinto a single integrated activity diagram. Theintegrated activity diagram represents aninterconnected view of business processesused in an industry or to provide a particularservice. It illustrates relationships between corebusiness processes, process participants, andinformation flow throughout the area underthe 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 TradingAcross 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 andidentify 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 forimprovement, such as the identification ofduplicated 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-is”business processes and identify the bottle-necks is provided in Figure 3.11.

8 World Bank, The Doing Business project, http://www.doingbusiness.org

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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 the“as-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 offrozen 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


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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 forofficials 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

33



5) Analyze the “as-is”processes 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 ofactivity

diagrams

A set ofprocess

description

Integratedactivitydiagram

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


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 objective of this step is to develop andpropose recommendations that help eliminatebottlenecks and inefficiencies of proceduresand documentary requirements within the ex-amined business process. Such recommenda-tions can also focus on enhancing transpar-ency in trade procedures or introduce newsecurity measures that would not be contradic-tory to trade facilitation. The measurable ben-efits of implementing such recommendationsmay include the reduction in time and cost ininternational trade, as well as an increase intrade and foreign direct investment.

Figures 3.12 and 3.13 illustrate the stakehold-ers and activities involved in this step.

Activity 6.1

Process analysts develop and propose recom-mendations for business process improvement.Business process improvement can take vari-ous forms. It may include the following mea-sures:

• Elimination of redundant procedures

• Merging of some procedures that may alsolead to the elimination of duplicate or un-necessary documentary requirements

• Modification of relevant laws and regula-tions in a way that better facilitate businessoperations

• Automation of relevant procedures anddata exchange.

For example, the automation of paper-basedtransactional operations can be either imple-mented as a full-scale trade and transportinformation exchange among stakeholders(paperless trade) or automated customsclearance systems such as ASYCUDA.9UN/CEFACT Recommendation No. 18 on Fa-cilitation Measures Related to InternationalTrade Procedures may provide backgroundinformation on trade facilitation measures, in-cluding how to simplify and harmonize the tradetransaction procedures, documentary require-ments, rules, and regulations (see Box 3.11).

In line with the recommendations, processanalysts prepare a set of responding activitydiagrams that represents the “to-be” businessprocesses.

Activity 6.2

Process participants/business domain experts,project manager/project leader, and projectsponsor review and provide feedback on pro-posed recommendations for the business pro-cess improvement, which may include a set ofactivity diagrams representing the future “to-be”business processes. The proposed recommen-dations and the newly designed business pro-cesses may act as an intuitive tool to supporta discussion with the corresponding authori-ties.

Activity 6.3

Process analysts gather the feedback and re-vise and refine the recommendations and theactivity diagrams representing the “to-be” busi-ness processes as necessary.

Activity 6.4

Project sponsor, in consultation with processparticipants/business domain experts, approvesthe recommendations.

9 ASYCUDA (Automated System for Customs Data -http://www.asycuda.org) is a computerized customsmanagement system, developed and provided byUNCTAD. The system handles manifests and cus-toms declarations, accounting procedures, transit andsuspense procedures.

35



Process Analysts Project Manager/Project Leader


Project Sponsor

A set of observations listingbottlenecks in the “as-is”

business processes




Incomplete Complete

Inaccurate

Accurate

Unacceptable

Acceptable

Approve

Develop andpropose

recommendations

Recommendationsfor processesimprovement

A set of activitydiagrams for

“to-be” processes


6) Develop and proposerecommendations

Project Sponsor


Process Analysts


This step requires the participationfrom:– Process Analysts– Process Participants/ Business

Domain Experts– Project Manager/ Project Leader– Project Sponsor

3. business process analysis guide to simplify trade procedures

Documents