Foundations of Process Improvement: Analyzing the As-Is State
Phase 1: Visualizing the Current State (As-Is) The first step in any process improvement initiative is documenting the current reality. The diagram below illustrates the “As-Is” process at Apex Manufacturing. Notice the heavy reliance on manual tasks (rectangles) and the linear, sequential nature of the workflow. Analysis of the As-Is State: Manual Submission: The customer submits a purchase order, which enters the Sales Department lane without pre-validation. Reactive Error Handling: If information is incomplete (“Complete Info? -> No”), a sales representative must manually “Contact Customer.” This creates a delay loop that halts the process until the customer responds. Siloed Warehouse Operations: The Warehouse Department checks inventory manually. If items are missing, a backorder is created, and sales is notified via a separate, likely non-integrated channel. Delayed ERP Updates: The “Update ERP System” task occurs late in the cycle, meaning financial and inventory data may be out of sync during the picking and packing phases. Phase 2: Identifying the Gaps A detailed gap analysis reveals four critical areas for improvement: Order Submission & Data Validation: Gap: Sales relies on manual review to catch missing info, wasting skilled labor on administrative checks. Impact: Increased cycle time and higher risk of human error. Customer Exception Handling: Gap: Follow-up on incomplete orders is manual and slow. Impact: Customer frustration and delayed revenue recognition. Inventory and Backorder Management: Gap: Inventory checks are discrete events rather than continuous monitoring; backorder notifications are not instantaneous. Impact: Sales teams may sell stock that isn’t available, or fail to communicate delays proactively. Warehouse Fulfillment & ERP Synchronization: Gap: Picking, packing, and shipping are manual touches disconnected from the central ERP until the end of the process. Impact: Lack of real-time visibility into order status and potential shipping errors












