Diamond Point Analysis
What is it?

What is an Office Process?

An Office Process is any office process that deals with Data and Information. Examples include: Opening up new Bank Accounts, Processing Loans, Processing Insurance, Claims Manufacturing, Order Entry, Company Payroll System, New Employee Hiring and Screening process ANY office process that deals with Data and Information!

What is the Capacity of an Office Process?

Diamond Point Analysis provides two measures of Capacity. The first measure, Current Capacity, is the measurement of the Capacity (or number) of work units flowing through the current Office Process. First-Pass-Yield Capacity is the measurement of the Capacity (or number) of work units that could flow through Administrative Office Process if Rework was eliminated. By knowing the Current Capacity and the First-Pass-Yield Capacity Managers are able to determine the amount of, and the cost of, Rework within the Process.

What is the Velocity of an Office Process?

While Capacity measures the amount of work units that can be processed within a Process, Velocity measures the speed of the process. By knowing the Velocity of a Process the following can be determined: Is the process fast enough to meet customer expectations? Does the process exceed the customer time expectations? What is the amount of time wasted within an office process?

What are Rework and Errors in a Process?

Rework in a process is failure to input correct and complete information, reworking what has been done and requesting additional customer information which should have been gathered initially. Correcting an error in a customer order, rewriting an estimate, and contacting a client to complete an application are some examples of rework in an administrative or operational process. These types of Rework efforts are typically not considered when thinking about the efficiency of a process. Redoing consumes time and resources, reduces capacity affecting productivity, constrains flow and increases costs.

Why Should I be Concerned About my Processes? Administrative and Operational Processes can consume 60-80% of the costs associated with meeting customer demand. This includes processing a loan, filing an insurance claim, processing an order, developing an estimate, processing an invoice, opening a new account and other processes. Significant hours are spent in administrative and operational processes.

Improved efficiencies will result in more work in less time with better customer service at a reduced cost.

Why Should I Standardize Job Elements in my Processes? Standardization helps in training new employees and in auditing and tracking processes. Consistency comes before quality! When you have standardized job elements you have consistent work, consistent performance goals, and stability within your Process; all of which improves efficiency, minimizes errors, reduces chaos and earns a quality reputation.

What are the Typical Savings Resulting from Diamond Point Analysis?

The most common savings resulting from Diamond Point Analysis range from 30% to 60% hourly savings. Using a conservative 30% hourly savings this means that a Process with 7 full time employees will save 84 employee hours per week.

For More explanations of positive results, see Results tab.