Diagrammatic Representation of Business Processes

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Diagrammatic Representation of Business Processes

Apr 13, 2021

Two important tools discussed in this section are;

1. Flowchart

2. Data flow diagram

1. Introduction to Flowcharts

Flowchart:

Flowchart as the name indicates is diagrammatical representation of a process or operation. It is one of the tools used for the purpose of “Business process Mapping”

Business Process Mapping:

It refers to gathering extensive information about the processes in organization.

Gathered information includes-

Description of different activities in process

Process flows.

What the processes do?`

Who oversees process?

Competence needed?

How process should be performed? Etc. “

Some key facts regarding flowchart:

Flowcharts are diagrammatical representation of flow of sequence of steps in a process or programs.

It includes multiple steps through which the process flows from ‘start’ to ‘Finish’.

Flowchart forms a part of documentation. It helps to design and document processes and in understanding process by visualizing.

It is helpful in analyzing the process, finding flaws and bottlenecks etc.

It is used in designing and documenting simple processes or programs.

Flowchart helps visualize what is going on and thereby help understand a process, and perhaps also find flaws, bottlenecks, and other less-obvious features within it.

There are many different types of flowcharts, and each type has its own repertoire of boxes and notational conventions.

The two most common types of boxes in a flowchart are as follows:

Rectangular Box: A processing step, usually called activity, denoted as a rectangular box.

Diamond: A decision usually denoted as a diamond.

A Flowchart is described as ‘cross-functional’ when the page is divided into different swim-lanes describing the control of different organizational units.

A symbol appearing in a particular ‘lane’ is within the control of that organizational unit.

This technique allows the author to locate the responsibility for performing an action or deciding correctly, showing the responsibility of each organizational unit for different parts of a single process.

I. Flowcharting Symbols

II. Steps for creating flowcharts for business processes;

Steps for creating flowchart:
Steps Number	Tasks
1.	Identify the business process that is to be documented with a flowchart and establish the overall goal of the business process.
2.	Based on inputs from the business process owner obtain a complete understanding of the process flow.
3.	Prepare an initial rough diagram and discuss with the business process owner to confirm your understanding of the processes.
4.	Obtain additional information about the business process from the people involved in each step, such as end users, stakeholders, administrative assistants and department heads
5.	Identify the activities in each process step and who is responsible for each activity.
6.	Identify the starting point of the process. Starting points generally fall into one of several categories: Ø External events: These include the initiation of a transaction or a transmitted alert from another business system. Ø Content arrival: For content management systems, the starting point might be the arrival of a new document or other form of content. Ø Human intervention: This includes customer complaints and other human intervention within or outside of the business.
7.	Separate the different steps in the process. Identify each individual step in the process and how it is connected to the other steps.
8.	· Business process Modelling Notation (BPMN) is a flow-chart-based notation for defining business process. · In this, steps are represented by different shapes depending on their functions. Note: Refer P2P, O2C diagrams and check steps like: “check credit”, “is credit ok?” etc.
9.	Clarify who or what performs each step. Different parts of the process may be completed by the accounting department, customer service, or order fulfillment.

III. Advantages of Flowcharts

Advantages of flowchart:
Sr. No	Advantage	Description
1.	Quicker grasp of relationships	The relationship between various elements of the application program/business process must be identified.
2.	Effective Analysis	The flowchart becomes a blue print of a system that can be broken down into detailed parts for study.
3.	Communication	Flowcharts aid in communicating the facts of a business problem to those whose skills are needed for arriving at the solution.
4.	Documentation	Flowcharts serve as a good documentation which aid greatly in future program conversions.
5.	Efficient coding	Flowcharts act as a guide during the system analysis and program preparation phase.
6.	Program Debugging	Flowcharts serve as an important tool during program debugging. They help in detecting, locating and removing mistakes.
7.	Efficient program maintenance	The maintenance of operating programs is facilitated by flowcharts. The charts help the programmer to concentrate attention on that part of the information flow which is to be modified.
8.	Identifying Responsibilities	Specific business processes can be clearly identified to functional departments thereby establishing responsibility of the process owner.
9.	Establishing Controls	Business process conflicts and risks can be easily identified for recommending suitable controls.

IV. Limitations of Flowchart

Disadvantages of flowchart:
Sr. No	Disadvantage	Description
1.	Complex logic	Flowchart becomes complex and clumsy where the problem logic is complex.
2.	Modification	If modifications to a flowchart are required, it may require complete re-drawing.
3.	Reproduction	Reproduction of flowcharts is often a problem because the symbols used in flowcharts cannot be typed.
4.	Link between conditions and actions	Sometimes it becomes difficult to establish the linkage between various conditions and the actions to be taken there upon for a condition.
5.	Standardization	Program flowcharts, although easy to follow, are not such a natural way of expressing procedures as writing in English, nor are they easily translated into Programming language.

NOTE: TO GET QUESTIONS/PROBLEMS ON FLOWCHART WITH SOLUTION PLEASE VISIT WAYTOPINNACLE.COM OR REFER TO END OF CHAPTER.

2. DATA FLOW DIAGRAM

Data Flow Diagrams:

As the name indicates data flow diagram shows the flow of data or information from one place to another.

It uses symbols to show the flow of data among external entities.

Unlike cross-functional flowchart, in this diagram processes are not identified to functional departments.

It describes the processes showing how these processes link together through data stores and how the process relates with users and the outside world.

Take an example of "Process flow of sales" to have better understanding;

In the simple DFD processes are specifically identified to the function using ‘swim-lanes’.

Each lane represents a specific department where the business process owner can be identified.

The business process owner is responsible for ensuring that adequate controls are implemented.

DFD basically provides an overview of;:

What data a system processes.

What transformations are performed?

What data are stored?

What results are produced and where they flow.

Note: It is mainly used by technical staff for graphically communicating between systems analysts & programmers.

Symbols used in DFD:

Example: DFD for book borrowed from a library being returned and the fine calculated, due to delay.

Solution:

The book is represented as an external entity and the input is the bar code.

The process is the scanning of the bar code and giving an output of the Book ID.

The next process calculates the fine based on accessing the ‘library database’ and establishing the ‘due back’ date.

Finally, the fine is communicated to the borrower who is also shown as an external entity.