## **Learning Outcomes**

After completing this article, you will be able to describe the concept and objectives of process design and improvement within an organisation. You will understand process mapping techniques, identify process bottlenecks, and recommend practical improvements for operational efficiency. You should also be able to recognise how these topics relate to effective management, internal control, and performance targets relevant to the ACCA exam.

## **ACCA Business and Technology (BT) Syllabus**

For ACCA Business and Technology (BT), you are required to understand process design, improvement, and their application within key business areas. Focus your revision on:

- The definition and purpose of process design and improvement as part of business operations
- Process mapping tools, such as flowcharts, for documenting workflows
- Identification and consequences of process bottlenecks
- Techniques for analysing, measuring, and improving business processes
- The relationship between processes, organisational objectives, and performance
- The impact of process improvement on efficiency, quality, and internal control
- The link between process improvement and internal audit, internal controls, and management responsibilities

## **Test Your Knowledge**

_Attempt these questions before reading this article. If you find some difficult or cannot remember the answers, remember to look more closely at that area during your revision._

1. What is the main purpose of process mapping in an organisation?
2. Define a bottleneck in the context of business processes, and state one likely consequence.
3. Why is it important to identify and remove process bottlenecks?
4. In process improvement, what is the typical relationship between process mapping and internal control design?

## **Introduction**

Process design and improvement is fundamental to ensuring that an organisation operates efficiently and delivers consistent quality. Key tools in this area include process mapping—visual representation of workflows—and techniques for bottleneck identification and resolution. By systematically analysing existing workflows, businesses can spot inefficiencies, improve procedures, and strengthen internal control. For the ACCA syllabus, you need to clearly describe common process mapping tools, explain what a bottleneck is, and recommend improvements to optimise business performance.

## **The Purpose of Process Design and Improvement**

Efficient business operations depend on well-designed and regularly reviewed processes. Each process is a sequence of steps that delivers value to internal or external customers. Well-designed processes are essential for achieving company objectives, meeting service standards, complying with controls, and managing resources.

> **Key Term: Business process**
> A structured set of activities or tasks that transform inputs into outputs to achieve a specific organisational goal.

Process improvement aims to make these activities more effective, cost-efficient, or reliable. Triggers for improvement include customer complaints, increased error rates, new regulations, cost pressures, or planned growth.

## **Process Mapping**

Process mapping is the practice of visually documenting each step in a business process.

> **Key Term: Process mapping**
> The technique of creating a visual diagram that shows every step, decision, and participant involved in a business process.

This technique is essential for understanding current practices (“as-is” process), locating inefficiencies, and identifying where controls are necessary. Common mapping tools include basic flowcharts, swim lane diagrams (which show departmental responsibilities), and value stream maps.

### **Worked Example 1.1**

**A credit department wishes to reduce the time it takes to approve customer orders. Staff report missed steps and repeated manual checks. How can process mapping help?**

> **Answer:** By drawing a flowchart of the 'order approval' workflow, each step can be analysed for duplication, unnecessary delays, or missing controls. The team can then remove redundant steps and streamline the process, reducing approval time.

A clear process map will include:

- The starting and ending points
- Each process step and what is required to complete it
- Decision points (e.g., ‘if approved, proceed—if not, return’, etc.)
- Handover points between different staff, teams, or departments

Process maps help management visualise how work flows, where interruptions occur, and which steps are not adding value.

### **Revision Tip**

Use a standard flowchart symbol set: rectangles for activities, diamonds for decisions, ovals for start/end, and arrows for direction of flow.

## **Process Bottlenecks**

A bottleneck in a business process is any step that reduces overall output or causes excessive waiting or delay. Bottlenecks can be caused by resource shortages, inefficient procedures, capacity mismatches, or poorly defined responsibilities.

> **Key Term: Bottleneck**
> A stage in a process where the flow of work is delayed or limited, restricting the overall speed or efficiency of the process.

If a single step takes much longer than others or is unable to cope with demand, it holds up the entire process. This means work can pile up, customers must wait, and targets for speed or quality may be missed.

### **Worked Example 1.2**

**A warehouse's packing area can only handle eight packages per hour, but the picking and checking steps each handle fifteen per hour. What is the bottleneck, and what is the consequence?**

> **Answer:** Packing is the bottleneck. It restricts throughput to a maximum of eight packages per hour, regardless of picking or checking capacity. Excess picked goods will accumulate, leading to delivery delays and inefficiency.

Identifying bottlenecks is essential for prioritising improvement efforts. Common symptoms of bottlenecks include growing work backlogs, increased overtime, frequent complaints, and frustrated staff.

> **Exam Warning**
> In exam scenarios, ensure you link any bottleneck to its effect on overall process performance—simply identifying a slow point is not sufficient. Explain the organisational risk or inefficiency created.

## **Analysing and Improving Processes**

Once processes are mapped and bottlenecks identified, analysis focuses on improvement. Questions to ask include:

- Is every step essential to meeting the process goal?
- Can steps be combined, automated, or delegated?
- Are controls placed at the right points (not too late, not duplicating effort)?
- Is there a better allocation of staff or resources?

Improvements may be incremental (small step-by-step adjustments) or radical (complete redesign, called “business process reengineering”).

Typical techniques include:

- Removing unnecessary approvals or duplicated entry of information
- Adjusting workloads to balance capacity
- Introducing automation or better IT systems
- Redefining roles to avoid handoff delays
- Introducing checklists or standardised work instructions

### **Worked Example 1.3**

**A bank incurs delays in account opening because approvals require a branch manager’s signature, even for low-risk cases. Suggest a process improvement.**

> **Answer:** Delegate authority for standard, low-risk accounts to trained clerks, and reserve manager sign-off only for exceptions. This reduces waiting time and makes better use of staff capacity.

## **Link to Internal Controls and Objectives**

Good process design is closely linked with effective internal controls. Documented processes (especially well-mapped) help ensure compliance, reduce the opportunity for error or fraud, and support business objectives. Internal audit and management are expected to monitor controls and update processes as risks or circumstances change.

> **Key Term: Internal control**
> Procedures, systems, and rules designed by management to safeguard assets, ensure accurate record-keeping, improve efficiency, and comply with policies and laws.

## **Summary**

Process mapping is an essential tool for understanding, documenting, and improving business workflows. Identifying bottlenecks is key to targeting process improvements for maximum impact. Well-designed processes contribute directly to efficiency, quality, and strong controls, supporting organisational objectives and regulatory compliance.

## **Key Point Checklist**

_This article has covered the following key knowledge points:_

- The purpose and benefits of process design and improvement
- How to create and interpret a process map
- The definition and impact of process bottlenecks
- Practical steps for analysing and improving processes
- The link between process design, internal control, and organisational success

## **Key Terms and Concepts**

- Business process
- Process mapping
- Bottleneck
- Internal control

Process design and improvement - Process mapping and bottlenecks