This case study is a process definition for a Billing Process, adapted from a real freight business. It shows the steps for not only improving a business process, but using the process to identify both Process Result and In-Process measures.
Using rail as their primary mode, the freight business featured in this case study hauled bulk freight, such as grain or livestock, for their customers.
Their performance measurement challenge
Via their customer survey, the freight business identified that one of the top three priorities for improvement was the accuracy of their billing process. Customers were not paying bills because they were based on inaccurate or confusing rates.
The challenge was to measure and improve three specific performance results:
How they overcame these challenges
A small team from the freight business worked together, using PuMP, to:
Here’s what they did…
Process Result Measures:
Measures of the above three performance results were called ‘Process Result Measures’. The team decided on six:
The Process Flowchart and problem areas:
To understand how the billing process might be improved, to improve performance as defined by their six Process Result Measures, the team created a process map.
Process Problem areas:
After mapping the billing process, the team systematically stepped through it to identify the problems that currently prevented good performance in the Process Result Measures.
Before they decided how to fix these billing process problems, the team designed a few measures to track these problems, so they could tell whether or not their fixes were working. They called these measures ‘In-Process Measures’:
TAKE ACTION: Where can you use process analysis – including identification of process measures – to help you improve a strategic outcome or goal?