Introduction to Process Mapping
This presentation gives a detailed outline of process mapping as a tool, and how it can be used in an organization, with special reference to a MFIs.
The first section of the presentation defines a process map, process of creating process maps, and benefits of mapping processes in a micro-lending based organization. The benefits enumerated include:
- Identification of process flows and breaking them down into easily understood steps;
- Pictorial representation making it easier for employees to assimilate;
- Assistance to business communication and problem-solving as an important decision support tool.
The presentation uses example of an East African MFI to illustrate improvements in cycle time as a result of process mapping.
In the context of continuous improvement, the presentation outlines the steps for mapping the processes within organizations which are:
- Recognizing operational gaps by client, competitor, best practices reviews, and current risk coverage;
- Classifying process by determining start and end points, steps in between and clients and suppliers related to the process;
- Using internal reports, interviews, observations, and existing process knowledge as data collection tools to collect data for mapping;
- Building the process map by using inputs from the above and by making specialized software;
- Analyzing the map to eliminate steps that do not add any value;
- Setting benchmarking parameters to measure change in process effectiveness.
The final section of the presentation details an exercise of analyzing a sample group lending process map; the points of comparison being, the levels of approval for loan application processing and efficiency in loan disbursement as compared to competitors.
