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Electronic process management (workflow)

In an increasingly competitive environment, all managers are looking for methods to improve their productivity and efficiency. Identifying and implementing the various operations processes are often solutions they find after analyzing the deficiencies in their companies (see the article named “Process-based management”). However, their applying them on a daily basis and respecting the steps in the processes often result in many difficulties (not the least of which is employee reluctance), often leading to the processes being abandoned over the medium or long term. Electronic management of management processes is one way to resolve this problem because its implementation involves a commitment to respect the steps of the aforementioned process as well as a significant reduction in processing delays.

Below is an explanation of the difference between manual management and electronic management of the same process.

First of all, let’s use the example of a simple approval process for an order:

• A buyer places an order.
• If the order is over $1,000, he must get approval from the purchasing manager.
• If the order is over $10,000, he must also get approval from the operations manager.
• If the order is over $100,000 or is addressed to supplier ABC or XYZ (with which there is a dispute), he must also get approval from one of the vice presidents.
• If any of the parties refuse the order, he must return it to the buyer, and include an explanation of the reasons for the refusal and the corrections to be made. The order must again go through all of the steps in the approval process.

Manual process

In a company that manages this process manually, the buyer enters the order in the system, prints it and attaches an approval sheet with the list of required signatures. These signatures are determined based on the amount of the order and take into account specific suppliers with which there are disputes. He then sends the order to the first party. This person finds the order when he checks his internal e-mail and signs it if he approves the contents. Otherwise, he writes his comments and returns the order to the buyer who must make the necessary corrections, reprint the order and send it back to the first party. These steps are repeated until each party has approved the order and only then can the order be confirmed in the system and sent to the supplier.

The process can be delayed for various reasons. One party may not read his internal e-mail immediately, he might be a way from the office for a few days, he may be unsure and put the document aside thinking he will return to it later, etc. The process can also be circumvented because there is nothing to prevent the buyer from sending the order to the supplier, even if he has not received all the necessary approvals.

Electronic process

The buyer enters the order into the system. When he is finished, the system calculates the amount of the order and suggests moving the order along in the process by assigning the appropriate status, which is the next status in the process. The buyer accepts and the order disappears from his list of current orders and appears in the list of orders awaiting approval. The system automatically determines which party is responsible for approving the order, checks that the party is not away from the office for an extended period and sends an e-mail to this party. At the same time, the order is included in the operating reports of this user, informing him that he must act on it. This party checks the contents of the order and approves it if he deems it appropriate in a timely manner (immediately, if he is in the office, or when he connects to the network, if he is out of the office). The system then determines the next user responsible for approving the order, sends him an e-mail, displays the order in his operating reports and the process continues this way until all approvals have been obtained. At the end of the process, the order reappears in the buyer’s list of approved orders (or the list of another person who becomes responsible for it at this stage). He can then confirm it and send it to the supplier. If one of the parties refuses to approve the order at any of these steps, he specifies the reasons for his refusal in a section provided for this purpose and returns the order to the buyer. He makes the requested corrections and restarts the approval process.

In this way, neither the buyer nor any of the other parties can skip a step. The integrity of the process is ensured. Only the system administrator can change the status of an order if a given party cannot monitor the order.

Summary

Manual management of this process involves handling a lot of paper, and there is always a risk of losing a document or delaying the process if any of the parties are absent. Furthermore, it is difficult to know which stage in the process the order has reached and which party is currently responsible for it. It is also possible to circumvent the process and confirm the order, even if it has not yet received the required approvals.

By automating management of the same process, no paper is required, the risk of loss is eliminated and the absence of a party can be managed automatically. It is very easy to know which stage the order has reached and which party is currently responsible for it. Finally, it is impossible for regular users to circumvent the process.

Often, if a process is too tedious to apply, it may be abandoned. Contrary to what you may think, implementing electronic management significantly facilitates its application and strict monitoring while ensuring its full integrity. It is therefore preferable in any company that wants to ensure that the processes it implements are respected.