UNNExT Workshop on Implementation of e-sps and Automation for Agriculture Trade Facilitation. 1-3 November 2016 Bangkok, Thailand

Size: px

Start display at page:

Download "UNNExT Workshop on Implementation of e-sps and Automation for Agriculture Trade Facilitation. 1-3 November 2016 Bangkok, Thailand"

Conrad Poole
6 years ago
Views:

1 UNNExT Workshop on Implementation of e-sps and Automation for Agriculture Trade Facilitation 1-3 November 2016 Bangkok, Thailand

2 Business Process Analysis (BPA) Somnuk Keretho, PhD UNNExT Expert 2 Kasetsart University sk@ku-inova.org

certification procedures BPA guide and online course are available at unnext.

3 Introduce the technique of Business Process Analysis (BPA) for analyzing and optimizing trade facilitation procedures, especially SPS import/export certification procedures BPA guide and online course are available at unnext.unescap.org 3

4 1. BPA for Analyzing and Proposing Trade Facilitation Improvement 2. Introduction into Unified Modeling Language (UML) i.e. two types of diagrams: Use-Case Diagrams & Activity Diagrams 3. Three Phases of a BPA Project 4. Case Studies 4

5 A Business Process is a collection of related and structured activities or tasks that produce a specific service or product. Example Procedures of issuing Phytosanitary Certificates in Bangladesh Export procedures of garments from Dhaka, through port operations & customs clearance at Chittagong Port Import Customs clearance procedures at the border check point of Phuentsholing, Bhutan Import procedures and documentation of Lentils from Nepal, through Kakarvitta-Panitanki-Fulbari-Banglabandha borders, until the cargo arriving at Dhaka, Bangladesh. 5 3

6 A modeling and analysis of business processes for capturing as-is (current) conditions and proposing better to-be (target) business processes For example, it may include... Documenting existing regulatory procedures in an agency Describing a standard procedure, e.g. a common case Identifying related quantitative indicators, e.g. number of steps Collecting information about time and cost at different steps Providing a specification for simplification or automation of the process (to be implemented in the future) 6 4

7 BPA can be used to analyse for Buy-Ship-Pay Model The whole supply chain of trade facilitation, or A subset of these supply chain procedures 7

8 36 Documents involving 15 parties, and 1,140 data elements to be filled in 1. Proforma Invoice (35) 2. Purchase Order (39) 3. Commercial Invoice (51) 4. Application for Letter of Credit (24) 5. Letter of Credit (32) 6. Packing List (25) 7. Cargo Insurance Application Form (20) 8. Cover Note (23) 9. Insurance Policy (24) 10.Booking Request Form Border Crossing (25) 11.Booking Confirmation Border Crossing (30) 12.Booking Request Form Inland Transport (16) 13.Booking Confirmation Inland Transport (18) 14.Bill of Lading (42) 15.Empty Container Movement Request (TKT 305) (20) 16.Request for Port Entry (TKT 308.2) (27) 17.Equipment Interchange Report (EIR) (24) 18.Container Loading List (28) 19.Container List Message (32) 20.Outward Container List (34) Commercial/ Financial Docs Transport Docs 21. Master Sea Cargo Manifest(17) 22. House Sea Cargo Manifest (37) 23. Export Declaration (114) 24. Goods Transition Control List (27) 25. Application for Permission to Export Rice (KP. 2) (24) 26. Sales Report (KP 3) (21) 27. Application for the Collection of the Permit for the Export of Rice (A. 3) (35) 28. Permit for the Export of Rice (A. 4) (35) 29. Application for Certificate of Standards of Product (MS. 13/1) (44) 30. Certificate of Analysis (17) 31. Certificate of Product Standards (MS. 24/1) (45) 32. Certificate of Fumigation (21) 33. Application for Phytosanitary Certificate (PQ. 9) (29) 34. Phytosanitary Certificate (33) 35. Application for Certificate of Origin (42) 36. Certificate of Origin (38) * Number in parenthesis is the no. of data elements Regulatory Docs 8 7

9 16 days are required for Thai Rice export process Ref: BPA Guide to Simplify Trade Procedures, UNESCAP/UNECE,

10 Business Process Analysis is a practical study to understand attributes of business processes, and their relationships Who involved Procedures and Documents required Related Rules and Regulations Some quantitative indicators 10 11

11 11 12

12 Procedures and documents handling remain largely paper dependent. Missing and incorrect documentation slows progress through the supply chain Keeping documents & freight in sync is complex and costly Multiple parties capturing the same data is inefficient and error prone We acknowledge other factors that makes trade in developing countries more difficult, including infrastructure, lack of adequate laboratory facilities, corruption, land-locked, (but these are not the main scope of discussion in this workshop) 12 13

13 BPA is the first technical step in preparing for trade facilitation measures including process simplification and automation. It provides Inventory of processes, documents, data, parties, rules & regulations Description of the processes Specifications for harmonizing data and development of electronic documents Specifications to develop software for the automation of procedures Business Models for the operation of Single Window environment A basis for maintenance and improvement 13 14

14 Several UN Recommendations for Trade Facilitation Improvement Establishment of Single Window and Paperless Trading Environment Document Simplification and Data Harmonization Business Process Simplification UN/CEFACT Recommendation No. 33 Manual for the Design of Aligned Trade Forms UN Trade Document Toolkit Draft APEC Handbook for Data Harmonization and Core-Component Based Electronic Message Development UN/CEFACT Core-Component Library UN/CEFACT Recommendation No. 18 Business Process Analysis (BPA) Business Process Analysis Guide to Simplify Trade Procedures 14

15 1. BPA for Analyzing and Proposing Trade Facilitation Improvement 2. Introduction into Unified Modeling Language (UML) i.e. two types of diagrams Use-Case Diagrams & Activity Diagrams 3. Three Phases of a BPA Project 4. Case Studies 15

16 What Business Process Modeling A technique for documenting a business process and its attributes Activities that come in a specific order and decision points Actors who perform those activities Defined inputs and outputs of each activity Criteria for entering and exiting the business process Relationships among actors Information flow Associated rules and regulations Quantitative indicators such as number of steps as well as time and cost required to complete a particular business process Why To establish a common understanding about a business process that is shared by all relevant parties To communicate better all aspects of a business process 16

A set of standard graphical notations for documenting a business process and business requirements Is widely recognized and used among practitioners in business community as well as those in IT and

17 A set of standard graphical notations for documenting a business process and business requirements Is widely recognized and used among practitioners in business community as well as those in IT and software industry Allows business domain experts to communicate procedural and documentary requirements with IT implementation or software development team 17

18 Importer Buy - Conclude sales contract and trade terms Exporter or Representative Use Case Diagram (What) A frame of reference illustrating a high level business process and its associated actors Exporter or Representative Quote price and term of trade Proforma Invoice Prepare the shipment of goods Importer Confirm the intent to purchase Purchase Order Not acceptable Cancel Acceptable Activity Diagram (How) A detailed elaboration of a use case diagram A graphical representation of a business process and its attributes Activities that come in a specific order and decision points Actors who perform those activities Defined inputs and outputs of each activity Criteria for entering and exiting the business process Relationships among actors Information flow 18

19 Notation Actor/Role Use case Description Actor Represents a role in a particular business process Is labeled with a role name Use Case Represents a business process Is labeled with a descriptive verb phrase Relationship Association Link actors with business processes that they participate in Boundary Subject Boundary Represents a process area Includes the name of a subject boundary on top 19

20 Thailand Export Process of Frozen Shrimp 2) Ship 2.1) Have product sampled and examined Authorized Private Inspector Insurance Company 2.2) Arrange transport 2.3) Prepare export permit Inland Haulage Importer Importer s Bank 1) Buy 3) Pay Exporter or Representative 2.4) Apply for cargo insurance 2.5) Prepare and submit customs declaration 2.6) Stuff container and transfer to port of departure Customs Bank Customs Department of Fisheries Carrier (Shipping Line) Exporter s Bank 2.7) Clear goods through customs Port Authority 2.8) Handle Container and stow it on vessel 2.9) Prepare documents required by importers Department of Foreign Trade The Central Islamic Committee Office Thailand Department of Consular Affairs 20

21 Notation Description Notation Description Initial State Represents the beginning of a set of activities Final Activity State Indicates the completion of the business process Final Flow State Indicates that further activities cannot be pursued Transition Line Indicates a sequential flow of actions and information in an activity diagram Fork (Splitting of Control) Visualizes a set of parallel or concurrent flow of actions Join (Synchronization of Control) Indicates the end of parallel or concurrent flow of activities Object Represents a document or information that flows from one activity to another activity (labeled with the name of a document) Process Participant 1 Process Participant 2 Process Participant n Swimlane Is used to break up individual actions to individuals/ agencies that are responsible for executing their actions Is labeled with the name of the responsible individual or agency Activity Represents a non-decomposable piece of behavior Is labeled with a name that 1) begins with a verb and ends with a noun; and 2) is short yet contain enough information for readers to comprehend Decision Represents the point where a decision has to be made given specific conditions Attached with labels addressing the condition on each transition line that comes out of an activities and connects to a decision point or vice versa 21

22 Exporter or Representative 2.1) Have product sampled and examined Authorized Private Inspector Department of Fisheries (DoF) Authorized Private Inspector Additional examination not required Exporter (or Representative) Have product ready for sampling Schedule the sampling date Department of Fisheries (DoF) Notify the date for sample collection Additional examination required Collect sample Submit Request for Sampling Examine sample Deliver sample Request for Sampling Collect sample Record the result of examination Test Report Collect Test Report Record sampling result Examine sample Record result of examination Collect Test Report Test Report 22

23 1. BPA for Analyzing and Proposing Trade Facilitation Improvement 2. Introduction into Unified Modeling Language (UML) i.e. two types of diagrams Use-Case Diagrams & Activity Diagrams 3. Three Phases of a BPA Project 4. Case Studies 23

24 A BPA Project in Three Phases I. Scope setting/planning Specify a scope of processes to be analyzed II. III. e.g. Phytosanitary Certificate issuance (export) procedures, or Phytosanitary Certificate import procedures at a particular sea port. Data collection and process documentation Define and document a sequence of steps in actual practices and their attributes Who involved (stakeholders/actors) Procedures and documents required (input to/output from) Related rules and regulation Process analysis Locate bottlenecks, examine what causes them, and develop measurable and quantitative process indicators (e.g. the number of steps, time and costs required to fulfill those processes) Recommendation development Determine how to eliminate each bottleneck and prioritize improvement actions 24

25 Phase I 1) Define a project scope 2) Develop a detailed plan and secure resources Project Sponsor Phase II 3) Acquire background information 4) Conduct interviews and document captured data Process Analysts Project Manager/ Project Leader Phase III 5) Analyze the as-is process and identify bottlenecks 6) Develop and propose recommendations Process Participants/ Business Domain Experts 25

26 Phase III Phase II Phase I Step Step 1: Define project scope Step 2: Develop a detailed plan and secure resources Step 3: Acquire background information Step4: Conduct interview and document captured data Step 5: Analyze the as-is processes and identify bottlenecks Step 6: Develop and propose recommendations Deliverable Use case diagram illustrating business domain, process areas, process participants, and key business processes Detailed project plan including an estimation of human resources required, schedules, and software supported tools A list of potential interviewees and their contact information A folder of background information about the business processes under the investigation A list of guiding questions for the interview A set of activity diagrams illustrating activities that come in a specific order and decision points, actors who perform those activities, defined inputs and outputs of each activity, criteria for entering and exiting the business process, relationships among actors, and information flow A set of business process descriptions that describes activity diagram and lists all related rules and regulations Activity diagram illustrating integrated processes in the business domain Time-Procedure chart displaying time required to complete each business process A set of observations of the as-is business processes that have the potential for improvement Final report with recommendations which may include diagrams of to-be business processes 26

27 Identify any bottlenecks, redundancies, and non-valueadded activities in procedural and documentary requirements Make those procedures & documentary requirements transparent and easy for stakeholders to access to Merge some procedures, and/or documents(forms) Eliminate redundant procedures and unnecessary documentary requirements Automate procedures and promote the sharing of trade and transport data among relevant stakeholders Modify related laws and regulations to facilitate the operation of the newly designed business processes Reform the regulatory-related organizational structures 27

28 Example: Office of Commodity Standards Exporter or Representative Customs Department of Foreign Trade Thailand s Export Process of Jasmine Rice Exporter or Representative Verify the accuracy/authenticity of exported cargo Example of redundant procedural and documentary requirements Customs Department of Foreign Trade Office of Commodity Standards Acknowledge the provided information Acknowledge the provided information Prepare documents to declare the actual amount exported Permit for the Export of Rice (A.4) with actual quantity exported Certificate of Standards of Products (MS. 24) with actual quantity exported Evidence of Sales (Purchase Order or Sales Contract) Prepare documents for submitting to Customs at port of exit Permit for the Export of Rice (A.4) with actual quantity exported Certificate of Standards of Products (MS. 24) with actual quantity exported Record the actual quantity exported and released date Acknowledge the provided information 28

29 Example: Office of Commodity Standards Exporter or Representative Customs Department of Foreign Trade Thailand s Export Process of Jasmine Rice Exporter or Representative Verify the accuracy/authenticity of exported cargo Customs Department of Foreign Trade Office of Commodity Standards Acknowledge the provided information Prepare documents for submitting to Customs at port of exit Permit for the Export of Rice (A.4) with actual quantity exported Certificate of Standards of Products (MS. 24) with actual quantity exported Evidence of Sales (Purchase Order or Sales Contract) Record the actual quantity exported and released date Acknowledge the provided information 29

30 1. BPA for Analyzing and Proposing Trade Facilitation Improvement 2. Introduction into Unified Modeling Language (UML) i.e. two types of diagrams Use-Case Diagrams & Activity Diagrams 3. Three Phases of a BPA Project 4. Case Studies 30

31 Case Exercise 1 Describe the meaning of the following Use Case Diagram and Activity Diagrams 31

32 A Use Case Diagram: Showing main procedures for exporting Rice from Thailand (through a sea port) 2) Ship 2.1) Obtain Export Permit 2.2) Arrange transport 2.3) Arrange the inspection and fumigation Insurance Company Authorized Private Inspector Inland Haulage Board of Trade of Thailand Importer Importer s Bank 1) Buy 3) Pay Exporter or Representative 2.4) Obtain cargo insurance 2.5) Provide customs declaration 2.6) Stuff a container or a lighter Office of Commodity Standards Department of Foreign Trade Exporter s Bank 2.7) Transfer to port of departure 2.8) Clear goods through customs 2.9) Handle cargo and stow on vessel Customs Department of Agriculture Carrier (Shipping Line) 2.10) Prepare documents required by importer Port Authority 2.11) Verify the accuracy/authenticity of exported cargo Department of Disease Control Thai Chamber of Commerce Department of Consular Affairs 32

33 An Activity Diagram: Showing detailed procedures and document requirements for obtaining a Rice Export Permit 2.1) Obtain export permit Exporter or Representative Department of Foreign Trade Prepare documents for the application of export permit Application for Permission to Export Rice (KP. 2) Sales Report (KP 3) Application for the Collection of the Permit for the Export of Rice (A. 3) Draft Permit for the Export of Rice (A. 4) Evidence of Sales (Purchase Order or Sales Contract) Verify submitted information Correct Sign and authenticate A. 4 Incorrect Collect A. 4 Permit for the Export of Rice (A. 4) 33

34 34

35 Case Exercise 2 35

36 Analyzing As-Is PC Issuance Processes & Identifying any Bottlenecks/Improvement Opportunities A Case Example 1. Exporter or authorized representative submits an PQ.7 application form (along with Import Permits (if any)) requesting for approval and PQ.7 number from NPPO, Department of Agriculture 2. If the application and attached documents are satisfied by NPPO, NPPO informs the Exporter for transport fee payment. 3. Exporter pays for the fee the NPPO accountant, the NPPO is informed of the payment, then the issues the PQ.7 with the unique ID number. 4. Exporter receives the approved PQ.7., and informs the surveyor for fumigation. 5. Exporter, surveyor and NPPO agree on the fumigation schedule then Surveyor conducts the fumigation. 6. NPPO officer inspects the fumigation, and provides the inspection report. 7. Exporter submits the PC application form to NPPO. 8. If the inspection report is satisfied, NPPO issues a draft PC for the Exporter to verify. 9. If Exporter is ok with the draft PC, informs NPPO. 10. Exporter pays for other fees, then NPPO issues the signed PC to Exporter. 11. Exporter sends the PC to the Importer to be shown to the import country s NPPO. - Manual operations - Paper-based transactions - Costly and take several days for 3-4 physical visits to complete the transactions - Difficulty in data cross checking & validation (possible paper fraud and error prone) * This is a case of Department of Agriculture, MOAC, Thailand. 36

37 A Case Example 1. Exporter or authorized representative submits an PQ.7 application form online (along with scanned Import Permits (if any)). 2. The application and attached documents are validated online, if ok the Exporter is informed for transport fee payment. 3. Exporter pays for the fee online (through online e-banking or other payment instruction). 4. The ephyto System approves the PQ7 online and inform the Exporter, the designated Surveyor and NPPO officer for fumigation schedule. 5. Surveyor conducts the fumigation. 6. NPPO officer inspects the fumigation, and provides the inspection report online. 7. Exporter submits the online PC application form to NPPO. 8. If the inspection report is satisfied, NPPO issues a draft PC for the Exporter to verify online. 9. If Exporter is ok with the draft PC online, the system will generate the fee amount. 10. Exporter pays for other fees online, then NPPO issues the signed PC to Exporter on the system 11. The ephyto Certificate could be printed out or sent electronically to the import country s NPPO. - Electronic transactions instead of manual - Electronic documents instead of paper documents - Faster/less cost: 2-3 physical visits were reduced to 1 physical visit, or none for all transactions - Better compliance with data cross checking 37

38 Exporter Submit P.Q.7 Application Schedule for Fumigation and Inspection NPPO Department of Agriculture Request for Phytosanitary Certificate Surveyor 38

39 Exporter NPPO, Department of Agriculture Submit an P.Q.7 application An P.Q.7 Application Form If the documents are not satisfied. Verify and Validate Documents Import Permit (If any) Pay the processing fee Calculate the processing fee If the documents are satisfied. Receive Payment and Issues the P.Q.7 No. Acknowledge No. of P.Q.7 39

40 Exporter Surveyor NPPO, Department of Agriculture Send the P.Q.7 No. and Schedule for fumigation and inspection Acknowledge Acknowledge the fumigation and inspection Make a schedule Conduct fumigation and facilitate inspection by NPPO Agree on the fumigation and inspection schedule Acknowledge Inform results of Inspection Record the result of Inspection 40

41 Exporter NPPO, Department of Agriculture Submit the approved P.Q.7 (with No.) Application for Phytosanitary Certificate (P.Q.7) with No. Bill of Lading Verify the Draft of Phytosanitary Certificate Incorrect Request for correction Make a payment and receive the Certificate Correct If documents are not satisfied. If documents are satisfied (also check the inspection report). Verify and Validate Documents Print the Draft of Phytosanitary Certificate Send to the authorized signatory Generate processing and certificate fee Phytosanitary Certificate 41

42 Exporter Electronic Phyto System NPPO, Department of Agriculture Submit the PC Application online Inform that the documents are not satisfied. If documents not satisfied Online Application for Phytosanitary Certificate Scanned Bill of Lading Pay processing fee online Receive paper Phytosanitary Certificate Receive and validate the online application Generate the processing fee Receive Payment Issue PC online and send the Electronic PC to the import country s NPPO. Validate documents and approve If documents are satisfied. 42

43 1. BPA is a simple but powerful methodology to capture/monitor the as-is conditions, and to propose to-be processes and documentation requirements for trade and transport facilitation improvement. 2. UML Diagrams: Use Case Diagrams & Activity Diagrams, and also Time-Procedures Chart are introduced. 3. Three Phases of a BPA Project is recommended. 1. scoping/planning, 2. capturing/modelling the as-is, and 3. analyzing/proposing recommendations for improvement 43

44 Questions & Answer Somnuk Keretho, PhD UNNExT Expert Kasetsart University

Business Process Analysis for Trade Facilitation

Inception Workshop on Trade and Transport Facilitation Performance Monitoring System (TTFPM): BPA+ Business Process Analysis for Trade Facilitation Mr. Tengfei Wang Economic Affairs Officer UNESCAP wangt@un.org