Objectives of this session

Transcription

1 Training Workshop on Business Process Analysis in International Trade Module 3. Assessment of business processes and drafting the report with conclusions and recommendations for improvement 3.1. Analyzing the Findings and Proposing Improvement Recommendations Somnuk Keretho, PhD Director, Institute of IT Innovation Kasetsart University, Bangkok Joint Workshop on Trade Facilitation and the Single Window September 2015, Moscow Objectives of this session To learn how to develop time-cost/procedure charts, compiled on the basis of data collected at the stage of gathering. To learn how to analyze and propose conclusions and recommendations on streamlining and simplifying trade procedures. 2 1

2 Conducting a BPA Project in 3 Phases 1. Defining Scope of and Planning a BPA Project 2. Capturing and Modelling the As-Is Process 3. Analyzing Findings of the BPA and Proposing Recommendations for Improvement (Proposing the To-Be Process) Ref: Business Process Analysis Guide to Simplify Trade Procedures, Updated 2012, UNESCAP/UNECE Developing time-cost diagrams Capture quantitative data, especially cost and time, related to each step (in the Activity Diagram) with a Delphi Method (for other approaches, the TTFMM in the afternoon session will discuss more accurate statistical data collection methodology). By interviewing few domain experts/practitioners (2 or 3 persons) who are knowledgeable about those steps Because of some constraints, we may be able to collect only some quantitative data with only a small set of data, e.g. only at the Use Case level (not Activity/Step level). Collect at least the normal (average) cases, but if resources allowed, the best cases and the worst cases Verify/validate those quantitative data during background gathering, interviewing, site visiting, and reviewing meeting with stakeholders. 4 2

3 Data Collection/Interview Questions Business Process Analysis: How many people are involved in this business process? What are necessary activities that an exporter/an importer has to take in order to acquire a particular document? What are supplementary documents that an exporter/an importer has to submit along with the application form when a particular document is requested? How can an exporter/importer submit the application form, how to collect the requested document (manually or electronically)? Are copies of documents accepted in lieu of original documents? Is there any fee that an exporter/an 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 simultaneously after another business process? 5 Data Collection/Interview Questions 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 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 in 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? 6 3

4 Data Collection related to Cost Cost related to procedures, documentary requirements to fulfill the international trade Including direct cost, e.g. cost of effort (labor cost), fee related to government or business transactions, cost of transport services, etc. Including in-direct cost, e.g. cost of warehouse when there is some delay at the port. May include or exclude Duty fee (need to mention explicitly on the report whether the summary cost include fee or not), e.g. World Bank s Trading Across Border data do not include cost

5 Creating a time-procedure chart which informs the average (or normal) time required to complete each main process and the sequential order those main processes are carried out. 9 Drawing a Time-Procedure Chart* Days days days 1 14 days Process Day(s) 1 Buy - Conclude sales contract and trade terms 2 2 Have product sampled and technically examined 14 3 Arrange transport 3 4 Prepare export permit 1 5 Apply for cargo insurance 1 6 Prepare and submit customs declaration 7 Stuff container and transfer it to port of departure 1 8 Clear goods through customs 9 Handle container at terminal and stow it on vessel 1 10 Prepare documents required by importer as listed in L/C 3 11 Pay - Claim payment of goods Process Similarly, a Cost-Procedure Chart could be developed if the cost for each main procedure/process can be collected. 10 5

6 3.1.2 Analyzing findings of the As-Is Business Processes Project Sponsor Project Manager/ Project Leader Process Analysts 5) Analyze the as-is processes and identify bottlenecks Process Participants/ Business Domain Experts Objective To identify the bottlenecks, redundancies, and non-value-added activities in procedural and documentary requirements of the as-is business processes described in the activity diagrams, process descriptions, and time-procedure chart. 11 Case 1: Thailand s Export Process of Frozen Shrimp Day days 1 14 days days 1. Buy - Conclude sales contract and trade terms 2. Have product sampled and technically examined 3. Arrange transport 4. Prepare export permit 5. Apply for cargo insurance 6. Prepare and submit customs declaration 7. Stuff container and transfer it to port of departure 8. Clear goods through customs 9. Handle container at terminal and stow it on vessel 10. Prepare documents required by importer as listed in L/C 11. Pay - Claim payment of goods Process 12 6

7 Case 1: Thailand s Export Process of Frozen Shrimp Authorized Private Inspector Exporter (or ) Have product ready for sampling Fisheries Examine sample Record the result of examination Test Report Collect sample Deliver sample Collect Test Report Schedule the sampling date Submit Request for Sampling Request for Sampling Free of charge but limited number of inspectors and laboratory facility Collect Test Report Notify the date for sample collection Collect sample Record sampling result Examine sample Record result of examination Test Report 1 working day 2-Day Waiting Time 1 working day 10 working days Day 2 days 1 Case 2: Thailand s Export Process of Jasmine Rice 2 days days Process 1. Buy - Conclude sales contract and trade terms 2. Obtain export permit 3. Arrange transport 4. Arrange the inspection and fumigation 5. Obtain cargo insurance 6. Provide customs declaration 7. Collect empty container(s) from yard Bottlenecks are hiding. Improvement opportunities are not obvious Stuff container(s) 9. Transfer to port of departure 10. Clear goods through customs 11. Handle container at terminal and stow on vessel 12. Prepare documents required by importer 13. Verify the accuracy/authenticity of exported cargo 14. Pay - Claim payment of goods days

8 Case 2: Thailand s Export Process of Jasmine Rice Review each activity diagram, its accompanied process description, and relevant forms and documents Look for redundancies and non-value-added activities in procedural and documentary requirements Obtain export permit Prepare documents for the application of export permit Application for Permission to Export Rice (KP. 2) Department of Documentary requirements of these documents are very much identical. 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) Collect A. 4 Verify submitted Correct Sign and authenticate A. 4 Permit for the Export of Rice (A. 4) Incorrect 15 Exercise: Identify Bottlenecks and Redundancies Thailand s Export Process of Jasmine Rice Verify the accuracy/authenticity of exported cargo Example of redundant procedural and documentary requirements Prepare documents to declare the actual amount exported Permit for the Export of Rice (A.4) with actual Prepare documents for submitting to at port of exit Permit for the Export of Rice (A.4) with actual Certificate of Standards Certificate of Standards of Products (MS. 24) with of Products (MS. 24) with actual actual Evidence of Sales (Purchase Order or Sales Contract) Record the actual and released date 16 8

9 3.1.3 Developing and Proposing Recommendations for Improvement Project Sponsor Project Manager/ Project Leader Process Analysts 6) Develop and Propose Recommendations Process Participants/ Business Domain Experts Objective To develop recommendations that help remove bottlenecks and inefficiencies in procedural and documentary requirements 17 Business Process Analysis and Business Process Simplification Tips & Techniques 1. Merge some procedures 2. Eliminate redundant procedures and unnecessary documentary requirements 3. Automate procedures and promote the sharing of trade and transport data among relevant stakeholders 4. Modify related laws and regulations to facilitate the operation of the newly designed business processes 5. Reform the regulatory-related organizational structures, etc. 18 9

10 Example: Identify Bottlenecks and Redundancies Thailand s Export Process of Jasmine Rice Verify the accuracy/authenticity of exported cargo Example of redundant procedural and documentary requirements Prepare documents to declare the actual amount exported Permit for the Export of Rice (A.4) with actual Prepare documents for submitting to at port of exit Permit for the Export of Rice (A.4) with actual Certificate of Standards Certificate of Standards of Products (MS. 24) with of Products (MS. 24) with actual actual Evidence of Sales (Purchase Order or Sales Contract) Record the actual and released date 19 Example I: Remove Redundancies Thailand s Export Process of Jasmine Rice Verify the accuracy/authenticity of exported cargo Prepare documents for submitting to at port of exit Permit for the Export of Rice (A.4) with actual Certificate of Standards of Products (MS. 24) with actual Evidence of Sales (Purchase Order or Sales Contract) Record the actual and released date 20 10

11 Example II: Simplify, Merge, and Automate Some Processes 2) Ship 2.1) Obtain Export Permit 2.2) Arrange transport Insurance Company Authorized Private Inspector Inland Haulage Importer Importer s Bank 1) Buy 3) Pay 2.3) Arrange the inspection and fumigation 2.4) Obtain cargo insurance 2.5) Provide customs declaration 2.6) Collect empty container(s) from yard 2.7) Stuff container(s) Board of Trade of Thailand Commodity Standards Exporter s Bank 2.8) Transfer to port of departure Department of Agriculture 2.9) Clear goods through customs Carrier (Shipping Line) 2.10) Handle cargo and stow on vessel 2.11) Prepare documents required by importer Port Authority 2.12) Verify the accuracy/authenticity of exported cargo Disease Control Thai Chamber of Commerce Consular Affairs 21 Example II: Simplify, Merge, and Automate Some Processes 2.5) Provide customs declaration Prepare Declaration Declaration Reject Prepare Declaration Declaration Reject Commercial Invoice No. of Permit for the Export of Rice (A. 4) Export Declaration the receipt of declaration no. Verify submitted Correct Declaration Accept Incorrect Commercial Invoice No. of Permit for the Export of Rice (A. 4) Export Declaration No. of Certificate of Standards of Products (MS. 24) the receipt of declaration no. Verify submitted Correct Declaration Accept Incorrect 22 11

12 Example: Simplify, Merge, and Automate Some Processes 2.9) Clear goods through customs Inland Haulage 2.11) Verify the accuracy/authenticity of exported cargo 23 Inland Haulage Exporter (or ) Equipment Interchange Receipt Goods Transition Control List Retrieve declaration Cross check declaration with handed in documents Transfer container to point of inspection Inspect cargo Randomly selected Randomly not selected Misconduct found Misconduct not found Record a case to be filed Record the Goods Transition Control List Audit actual quantity of goods to be exported actual quantity of goods to be exported actual quantity of goods to be exported 24 12

13 Example: Simplify, Merge, and Automate Some Processes Day days 1 2 days days Process 1. Buy - Conclude sales contract and trade terms 2. Obtain export permit 3. Arrange transport 4. Arrange the inspection and fumigation 5. Obtain cargo insurance 6. Provide customs declaration 7. Collect empty container(s) from yard Stuff container(s) 9. Transfer to port of departure 10. Clear goods through customs 11. Handle container at terminal and stow on vessel 12. Prepare documents required by importer 13. Verify the accuracy/authenticity of exported cargo 14. Pay - Claim payment of goods days Business Process Analysis and Single Window Development Establishment of Single Window and Paperless Trading Environment Document Simplification and Data Harmonization Data model that define data requirements and structure of electronic messages Business Process Simplification To-be business processes Business Process Analysis (BPA) Better understanding about existing as-is business processes and their limitation 26 13

14 Practical Exercise 5.1 Quantitative Data Collection & Analysis Each group, please discuss and collect more quantitative data related to cost & time (normal best cases) of some Use Cases of your BPA project Try to draw a Time-Procedure Chart by approximately estimating time (days) that are needed for your selected BP scope e.g. try to estimate time needed (the normal best case) for each main business process (Use Cases) Which Use Cases (main processes) can be conducted in parallel, or which Use Cases must happen before other Use Cases (precedence conditions). And also estimate how much it costs for each Use Case (if time permitted.) 27 Practical Exercise 5.2 Identify bottlenecks and recommend improvement opportunities Discuss in your small group, Identify and analyze one or two bottlenecks in your activity diagram(s) Identify and propose improvement opportunities (check also for feasibilities for your recommendations, e.g. political, technical, and financial feasibility) Be prepared to present your findings