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UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
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UNNExT Workshops on Trade Facilitation
Almaty, Kazakhstan
4-6 May 2015
UNNExT Workshop on Trade Facilitation and Paperless Systems
for Agrifood Products
Somnuk Keretho, PhD Director, Institute for IT Innovation..........
Kasetsart University, Bangkok [email protected]
Business Process Analysis (BPA) and Single Window for Trade Facilitation
UNNExT Workshops on Trade Facilitation
4-6 May 2015 Almaty, Kazakhstan
Page 3 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Speaker - Somnuk Keretho, PhD
Somnuk Keretho is an assistant professor of Computer Engineering Department, and the founding Director of Institute for IT Innovation (INOVA), a research and development institute of Kasetsart University, Thailand, specializing in ICT-enabled innovation, trade facilitation and e-logistics initiatives including National Single Window strategic planning and implementation, enterprise architecture for e-government and e-business, business process analysis and improvement, data harmonization and modeling, ICT-related standards and interoperability, e-transaction related laws, and process-oriented quality software engineering.
He has led several ICT strategic projects at organizational, national and regional levels. For the past nine years, he has assisted Ministry of Information and Communication Technology, National Economic and Social Development Board, Ministry of Transport, Port Authority of Thailand, and Ministry of Agriculture in architecting “Thailand Single-Window e-Logistics” related projects including its National Single Window strategy, implementation plans, interoperability and standards, harmonization and simplification of trade and transport-related documents and procedures, automatic electronic-gate systems development for the Bangkok Port and the Leamchabang Sea Port, and related software development projects. Several of those projects are being aligned with some regional and international collaborations, in which Dr. Somnuk has actively engaged with those related to trade facilitation, single window and paperless trading initiatives through UNESCAP, UNECE, APEC, ASEAN and GMS. He has played several roles in catalyzing the creation of and actively contributing to the United Nations Network of Experts for Paperless Trade in Asia and the Pacific (http://unnext.unescap.org), and providing several technical supports to the APEC Paperless Trading and ASEAN Single Window Initiatives. He is the main author of the UNNExT Business Process Analysis Guide, the UNNExT Data Harmonization Guide and the UNNExT Guide for Single Window Planning and Implementation as jointly published by UNECE and UNESCAP.
Page 4 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Objectives of this session
To introduce the role of BPA (including business
process modelling techniques) and explain
how to conduct a BPA project for analyzing
the “as-is” international trade procedures,
and proposing “to-be” improvement measures.
[based on “UNNExT Business Process Analysis Guide
to Simplify Trade Procedures,” UNESCAP & UNECE, 2012].
To discuss some BPA case studies for
agrifood trade facilitation improvement
including recommendations towards
the implementation of Single Window/
Paperless Trade Environment.
Page 5 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Topics of this session
What/Why?: Business Process Analysis for TF
Graphical Notations: Unified Modeling Language (UML)
Three(3) Phases for conducting a BPA project
Case Examples: Thailand & Cambodia
BPA Group Exercises
Summary & Conclusions
Page 6 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
What is a Business Process?
A Business Process is a collection of
related and structured activities or tasks
that produce a specific service or product.
Examples
– Procedures (including document transactions) of
importing processed fruits to Kazakhstan from Kyrgyzstan
– Export Customs Declaration and Clearance Procedures
at the Border Point
– Applying & Issuing Process for a Certificate of Origin
(e.g. as needed to import goods to Azerbaijan)
– Applying & Issuing Process for a Phyto-sanitary Certificate
Page 7 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
What is…
…a Business Process Analysis (BPA)?
A modelling and analysis of business processes
for understanding the current situations and
proposing recommendations for improvement.
Examples
– Documenting some existing core processes of an organization in
delivering some services to its customers
– Describing a “Standard Procedure,” with some exceptional cases
– Identifying quantitative indicators related to a specified process,
e.g. no. of documents, no. of steps, and time/cost of each step
– Analysis of bottlenecks or redundancies in procedures & documentation
– Providing recommendations for process simplification or
process automation.
Page 8 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Why conduct a Business Process Analysis?
Business Process Analysis is a practical study
to understand attributes of business processes, and their relationships
Who involved
Procedures and Documents
required
Related Rules and Regulations
Some quantitative
indicators
Page 9 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
What are benefits of Business Process Analysis?
Page 10 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
BPA, the first important step, towards Paperless Trade and Single Window Development
BPA is the first technical step in preparing for trade facilitation measures including recommendations on how to implement paperless trade and SW environment.
Since it should provide
– Inventory of processes, documents, data, parties, rules & regulations governing those processes.
– Description of the processes
– Specifications for harmonizing data and development of electronic documents
– Specifications to develop software for the automation of procedures
– A basis for Business Models for the operation of SW
Page 11 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Data Model and
Digital Documents
Data Analysis and
Simplification
Document
Simplification
Business Process
Analysis and
Simplification
Develop
electronic
documents
Simplify paper
documents
From Paper to Paperless Trade: A Stepwise Approach
Analyse
information in the
documents
Understand and
simplify business
processes
Page 12 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Trade Facilitation Improvement Movement of goods in international trade – involving at least 3 kinds of flows
Seller (Exporter)
Buyer (Importer) Physical Goods
Payment
Information/Documents
Customs Department Dept of Agriculture
Ship Agents Transport-Operators
Terminal-Operators Carriers
Banks
Information/Documents (upto 300 document types*)
Freight Forwarders
Cargo Insurance
Traders Exporters
Importers Traders
Economic Operators
Food and Drug Administration (FDA)
Chamber of Commerce
Our Improvement Opportunities
Trade Facilitation
Improvement -
Efficiency in procedures &
document handlings
Other regulatory agencies
Customs Borkers Dept of Fisheries
36 regulatroy agencies, 10 business sectors*, e.g. importers, exporters, banks, F/F, Customs Brokers, Insurance companies, Terminal Operators, Sea Carriers, Airlines, Trucks, etc.
* Refering to “Thailand Case”
Airlines Trucks Port Authority
Page 13 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
UN/CEFACT Buy-Ship-Pay Model for International Trade
Page 14 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Documents related to Exportation of Rice (from purchase order until the cargo container leaving the sea port)
21. Master Sea Cargo Manifest(17)
22. House Sea Cargo Manifest (37)
23. Export Declaration (114)
24. Good Transition Control List (27)
25. Application for Permission to Export Rice (KP. 2) (24)
26. Sales Report (KP 3) (21)
27. Application for the Collection of the Permit for the Export
of Rice (A. 3) (35)
28. Permit for the Export of Rice (A. 4) (35)
29. Application for Certificate of Standards of Product (MS.
13/1) (44)
30. Certificate of Analysis (17)
31. Certificate of Product Standards (MS. 24/1) (45)
32. Certificate of Fumigation (21)
33. Application for Phytosanitary Certificate (PQ. 9) (29)
34. Phytosanitary Certificate (33)
35. Application for Certificate of Origin (42)
36. Certificate of Origin (38)
1. Proforma Invoice (35)
2. Purchase Order (39)
3. Commercial Invoice (51)
4. Application for Letter of Credit (24)
5. Letter of Credit (32)
6. Packing List (25)
7. Cargo Insurance Application Form (20)
8. Cover Note (23)
9. Insurance Policy (24)
10. Booking Request Form – Border Crossing (25)
11. Booking Confirmation – Border Crossing (30)
12. Booking Request Form – Inland Transport (16)
13. Booking Confirmation – Inland Transport (18)
14. Bill of Lading (42)
15. Empty Container Movement Request (TKT 305) (20)
16. Request for Port Entry (TKT 308.2) (27)
17. Equipment Interchange Report (EIR) (24)
18. Container Loading List (28)
19. Container List Message (32)
20. Outward Container List (34) * Number in parenthesis is
the no. of data elements
36 Documents involving 15 parties, and more than 1,140 data elements to be filled in
Thai Case Example
Regulatory Docs
Transport Docs
Buy/Pay Docs
Page 15 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Business Process Analysis Guide - in Exporting Jasmine Rice from Thailand -
1. Buy - Conclude sales contract and trade terms 2. Obtain export permit 3. Arrange transport 4. Arrange the inspection and fumigation 5. Obtain cargo insurance 6. Provide customs declaration 7. Collect empty container(s) from yard
8. Stuff container(s) 9. Transfer to port of departure 10. Clear goods through customs 11. Handle container at terminal and stow on vessel 12. Prepare documents required by importer 13. Verify the accuracy/authenticity of exported cargo 14. Pay - Claim payment of goods
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Day
Process
20
10
0
5
15
3 days
2 days
3 days
4 days
1 day
1
3
5
6 7 8 9
12
14
2
2 days
4
2 days 10
1 day
13 1 day
16
11
Time-Procedure Chart
16 days are required for these procedures
and documents transaction
About 7-8 days needed
for document preparation
before cargo movement.
Another 7-8 days needed
during cargo movement.
unnext.unescap.org
Trade Facilitation is about
Enhancing National Trade Competitiveness
by improving import/export/transit/transshipment procedures and
document/information handlings among government agencies,
trade-related business entities and logistics service providers
for all major modes of transportation of the country
(sea, air, land and railway transport) Page 16
Page 17 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Trade Facilitation – reducing cost, maximizing efficiency & also better regulations –
Trade facilitation* looks at how procedures and controls governing the movement of goods across national borders can be improved to reduce associated cost burdens and maximise efficiency while safeguarding legitimate regulatory objectives.
Examples of regulatory activity in international trade
– Fiscal: Collection of customs duties, excise duties and other indirect taxes; payment mechanisms
– Safety and security: Security and anti smuggling controls; dangerous goods; vehicle checks; immigration and visa formalities
– Environment and health: Phytosanitary, veterinary and hygiene controls; health and safety measures; CITES controls; ships’ waste
– Consumer protection: Product testing; labelling; conformity checks with marketing standards (e.g. fruit and vegetables)
– Trade policy: Administration of quota restrictions; export refunds * http://en.wikipedia.org/wiki/Trade_facilitation
Page 18 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Trade Facilitation is about “Process Reform.”
Trade Facilitation
is about
• Business Process Analysis (Understanding the “as-is” process,
its bottlenecks/its root causes)
• Business Process Redesign (Designing the better “to-be” process)
• Implementing and Adopting the Change
Page 19 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Business Process Modeling
What
A technique for documenting a business process and its attributes
– Activities that come in a specific order and decision points
– Actors who perform those activities
– Defined inputs and outputs of each activity
– Criteria for entering and exiting the business process
– Relationships among actors
– Information flow
– Associated rules and regulations
– Quantitative indicators such as number of steps as well as time and cost required to complete a particular business process
Why
To establish a common understanding about a business process that is shared by all relevant parties
To communicate better all aspects of a business process
Page 20 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Unified Modeling Language (UML)
A set of standard graphical notations for
documenting a business process and business
requirements
http://en.wikipedia.org/wiki/Unified_Modeling_Language
Is widely recognized and
used among practitioners in
business community as well
as those in IT and software
industry.
Allows business domain
experts to communicate
procedural and documentary
requirements with IT
implementation or software
development team.
Page 21 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
UML Diagrams for BPA
Use Case Diagrams
A frame of reference illustrating a high level business process and its associated actors
Activity Diagrams
A detailed elaboration of a use case diagram
A graphical representation of a business process and its attributes
– Activities that come in a specific order and decision points
– Actors who perform those activities
– Defined inputs and outputs of each activity
– Criteria for entering and exiting the business process
– Relationships among actors
– Information flow
Buy - Conclude
sales contract and
trade terms Exporter or
Representative Importer
Quote price
and term of trade
Confirm the
intent to purchase
Proforma Invoice
Purchase Order
Not acceptable
Acceptable
Cancel
Prepare the shipment
of goods
Exporter or
Representative Importer
Page 22 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
UML Notations for Use Case Diagram
Notation Description
Actor
Represents a role in a particular business process
Is labeled with a role name
Use Case
Represents a business process
Is labeled with a descriptive verb phrase
Relationship Association
Link actors with business processes that they participate in
Subject Boundary
Represents a process area
Includes the name of a subject boundary on top
Boundary
Actor/Role
Use case
Page 23 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Exercise – Read the Use Case Diagram (Exporting frozen shrimpts from Thailand)
Page 24 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
UML Notations for Activity Diagram
Notation Description
Initial State
Represents the beginning of a set of activities
Final Activity State
Indicates the completion of the business process
Final Flow State
Indicates that further activities cannot be pursued
Transition Line
Indicates a sequential flow of actions and information
in an activity diagram
Fork (Splitting of Control)
Visualizes a set of parallel or concurrent flow of
actions
Join (Synchronization of Control)
Indicates the end of parallel or concurrent flow of
activities
Object
Represents a document or information that flows from
one activity to another activity (labeled with the name of
a document)
Notation Description
Swimlane
Is used to break up individual actions
to individuals/ agencies that are
responsible for executing their actions
Is labeled with the name of the
responsible individual or agency
Activity
Represents a non-decomposable
piece of behavior
Is labeled with a name that 1) begins
with a verb and ends with a noun; and 2)
is short yet contain enough information
for readers to comprehend
Decision
Represents the point where a
decision has to be made given specific
conditions
Attached with labels addressing the
condition on each transition line that
comes out of an activities and connects
to a decision point or vice versa
Process Participant 1
Process Participant 2
Process Participant n
Page 25 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Exercise – Read the Activity Diagram
Page 26 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Three Phases in Conducting a BPA Project
I. Scope setting – Specify a scope of processes to be analyzed
– e.g. import and/or export processes of a specified product,
through a certain mode of transportation (trucks, trains, ships or airplanes)
II. Data collection and process documentation – Define and
document a sequence of steps in actual practices and their
attributes
– Who involved (stakeholders/actors)
– Procedures and documents required (input to/output from)
– Related rules and regulation
III. Process analysis – Locate bottlenecks, examine what causes
them, and develop measurable and quantitative process
indicators (e.g. the number of steps, time and costs required to fulfill those
processes)
Recommendation development – Determine how to eliminate
each bottleneck and prioritize improvement actions
Page 27 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Three Phases in Conducting a BPA Project
Project
Sponsor
Project Manager/
Project Leader
Process
Analysts
Process Participants/
Business Domain Experts
1) Define a
project scope
2) Develop a
detailed plan and
secure resources
3) Acquire
background
information
4) Conduct
interviews and document
captured data
5) Analyze the “as-is”
process and identify
bottlenecks
6) Develop and
propose
recommendations
Phase I
Phase II
Phase III
4 important roles in
conducting a BPA project.
1. Project Sponsors
2. Project Manager
3. Process Analyst(s)
4. Domain Experts
Page 28 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Outputs of a BPA project
Step Deliverable
Step 1: Define project
scope
Use case diagram illustrating business domain, process areas, process participants, and key
business processes
Step 2: Develop a detailed
plan and secure resources
Detailed project plan including an estimation of human resources required, schedules, and
software supported tools
A list of potential interviewees and their contact information
Step 3: Acquire background
information
A folder of background information about the business processes under the investigation
A list of guiding questions for the interview
Step4: Conduct interview
and document captured
data
A set of activity diagrams illustrating activities that come in a specific order and decision points,
actors who perform those activities, defined inputs and outputs of each activity, criteria for entering
and exiting the business process, relationships among actors, and information flow
A set of business process descriptions that describes activity diagram and lists all related rules
and regulations
Activity diagram illustrating integrated processes in the business domain
Time-Procedure chart displaying time required to complete each business process
Step 5: Analyze the “as-is”
processes and identify
bottlenecks
A set of observations of the as-is business processes that have the potential for improvement
Step 6: Develop and
propose recommendations
Final report with recommendations which may include diagrams of “to-be” business processes
Ph
ase
I P
has
e II
Ph
ase
III
Page 29 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Some tips/techniques for business process analysis and improvement recommendations
To identify any bottlenecks, redundancies, and non-value-added activities in procedural and documentary requirements of the “as-is” business processes, and proposing improvement opportunities by the following tips:
1. Merge some procedures or documents
2. Eliminate redundant procedures and unnecessary documentary requirements
3. Automate procedures and promote the sharing of electronic trade and transport data among relevant stakeholders
4. Modify related laws and regulations to facilitate the operation of the newly designed business processes
5. Reform the regulatory-related organizational structures, etc.
Page 30 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Example: Identify Bottlenecks and Redundancies
Department of
Foreign Trade Office of
Commodity Standards Customs Exporter or Representative
Prepare documents
for submitting to
Customs at port of exit
Permit for the Export
of Rice (A.4) with actual
quantity exported
Certificate of Standards
of Products (MS. 24) with
actual quantity exported
Record the actual
quantity exported
and released date
Acknowledge
the provided
information
Prepare documents
to declare the actual
amount exported
Permit for the Export
of Rice (A.4) with actual
quantity exported
Certificate of Standards
of Products (MS. 24) with
actual quantity exported
Evidence of Sales
(Purchase Order or
Sales Contract)
Acknowledge
the provided
information
Example of redundant
procedural and
documentary
requirements Acknowledge
the provided
information
Department of
Foreign Trade Verify the
accuracy/authenticity
of exported cargo Exporter or
Representative
Customs
Office of
Commodity Standards
Thailand’s Export Process of Jasmine Rice
Page 31 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Office of
Commodity Standards Customs Exporter or Representative
Prepare documents
for submitting to
Customs at port of exit
Record the actual
quantity exported
and released date
Acknowledge
the provided
information
Permit for the Export
of Rice (A.4) with actual
quantity exported
Certificate of Standards
of Products (MS. 24) with
actual quantity exported
Evidence of Sales
(Purchase Order or
Sales Contract)
Acknowledge
the provided
information
Department of
Foreign Trade
Department of
Foreign Trade Verify the
accuracy/authenticity
of exported cargo Exporter or
Representative
Customs
Office of
Commodity Standards
Example: Remove Redundancies
Thailand’s Export Process of Jasmine Rice
A BPA Project - Case Study Thailand Sea Importation of Standardized Cargoes
Page 33 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Phase I: Scope Setting
Example:
Regulatory and business requirements
related to the operation and management
of port before, upon, and after the import
and export of containerized ordinary
cargoes through all modes of
transportations (road, rail, air, and sea)
– Carrier scheduling for port use
– Cargo handling
Import
– Starting point: when a carrier enters port
– Ending point: when cargo is picked up and
transferred to an importer
Export
– Starting point: when cargo arrives port
– Ending point: when cargo is on board and ready to
be transferred to the country of importer
•Airport (Chiengmai)
•Sea Port (Chiengsan)
•Dry Port (Maesai)
•Dry Port (Mukdahan)
•Dry Port (Nongkai)
•Train Station
•Dry Port
•ICD (Ladkrabang)
•Suvannabhumi Airport
•Sea Port (Unithai)
•Etc. •Sea Port
(Lamchabang)
- Site Visited
No. of Interviews = 45
- Phone & email interviews
No. of Interviews = 16
Page 34 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Phase I: Scope Setting Example: Importation by Sea
• Vessel Agent
• Maritime Pilot’s Station
• Marine Department
• Port Operator
• Customs
• Other Government Agencies
• Importer or Representative
• Terminal Operator
• Haulage/Truck
• Bank
Example: Capturing the
Stakeholders involved in
importation by sea
Draw a use case diagram to
illustrate the business domain
with process areas and
high-level business processes
as well as stakeholders
associated with each of them
Vessel Agent
Port Operator
Marine
Department
Terminal
Operator
Haulage/Truck
Maritime Pilot’s
Station
Customs
Importer
or Representative
Other Government
Agencies
Business Processes
Actor
Enter a seaport
Report cargo
manifest
Unload cargo
Clear goods
through customs
Arrange the
transport for the
pick-up of goods
Handle cargo at
the terminal
Prepare to
enter a seaport
Prepare documents
for import
Pay for goods Bank
Page 35 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Phase II: Data Collection and Process Documentation Example: Prepare to Enter a Seaport Process
For each process, draw an
activity diagram that describes
activities and associated
documentary requirements Vessel Agent
Port Operator
Marine
Department
Maritime Pilot’s
Station Prepare to
enter a seaport
Maritime Pilot’s Station Marine Department Port Operator Vessel Agent
Prepare
documents
Request for
Maritime Pilotage
General
Declaration
Application for
Vessel Entering
Port Area
Prepare the
allocation of
equipments
Assign pilot officer Receive
Receive
Receive
Page 36 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Phase II: Data Collection and Process Documentation Example: Activity Diagram of Prepare to Enter a Seaport Process
Maritime Pilot’s Station Marine Department Port Operator Vessel Agent
Prepare
documents
Request for
Maritime Pilotage
General
Declaration
Application for
Vessel Entering
Port Area
Prepare the
allocation of
equipments
Assign pilot officer Receive
Receive
Receive
Sequence of
actions carried
out to achieve
a specific goal
Swimlane shows a boundary of activities
to be carried out by a responsible actor.
Document associated
with each action
Initial State shows the starting
point for the sequence of
activities.
Final State shows where the sequence of activities reaches its end.
Page 37 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Phase III-1: Process Analysis Example: Prepare to Enter a Seaport Process (Existing Process)
Maritime Pilot’s Station Marine Department Port Operator Vessel Agent
Prepare
documents
Request for
Maritime Pilotage
General
Declaration
Application for
Vessel Entering
Port Area
Prepare the
allocation of
equipments
Assign pilot officer Receive
Receive
Receive
Duplicated data submission:
Three documents with
almost identical data are
handed-in to different
receivers.
Problems :
- Duplicated Information
- High Cost and Time for sending and receiving documents
- Data Inconsistency
Page 38 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Phase III-2: Recommendation Development Example: Prepare to Enter a Seaport Process
Maritime Pilot’s Station Marine Department Port Operator Vessel Agent
Prepare
documents
Request for
Maritime Pilotage
General
Declaration
Application for
Vessel Entering
Port Area
Prepare the
allocation of
equipments
Assign pilot officer Receive
Receive
Receive
Process simplification
Single submission
(electronic means)
Proposed Recommendations :
- Remove unnecessary data requirements
- Harmonize and standardize data requirements
- Automate “prepare to enter a seaport” process
Page 39 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
39
Phase III-2: Recommendation Development Example: Prepare to Enter a Seaport Process (Proposed New Process)
Vessel Agents send
electronic documents to
Marine Dept through NSW
Exchange
Maritime
Pilot’s Station
Port Operator Marine Dept.
Stakeholders :
1) Vessel
2) Value Added Service
3) NSW Exchange
4) Marine Dept.
5) Port Operator
6) Maritime Pilot’s Station
Vessel Agent
Prepare
Update Status
Update Log
Update Log
Update Log
Application for
Vessel Entering
The Port Area
Pilot
Request Form
General
Declaration
NSW Exchange Value-added
Service
Provider
Marine Dept.
Page 40 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Phase III-2: Recommendation Development Example: Time – Procedure Chart of Importation by Sea
9 Main processes
1. Prepare documents for import
2. Prepare to enter a seaport (Vessel)
3. Enter a seaport (Vessel)
4. Report cargo manifest
5. Unload cargo
6. Clear goods through customs
7. Arrange the transport for the pick-up of goods
8. Handle cargo at the terminal
9. Pay for goods
1 2 3 4 5 6 7 8 9
Days
Process
20
10
0
5
15 1 days
1 day
3
8
6
1 day 1 day 4
7
2 day
1
10 day
9
4 day
1
2 3 4 5 6
7
8
9
20 days
12 days 2
2 day 1 day
5
As-Is
To-Be
A BPA Case Study
Cambodia BPA
Page 42 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Cambodia BPA (since 2010)
The analysis of the Cambodia BPA was initiated by H.E. Dr. Hang Chuon
Naron, Permanent Vice Chairman of the Supreme National Economic
Council (SNEC) in mid 2010 following the holding of a National Workshop
on Advancing Trade Facilitation under a thematic “Business Process
Analysis for Trade Facilitation: Operationalising the Rectangular
Strategy for Growth” on 1-2 June 2010 in Phnom Penh.
Page 43 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Cambodia BPA (since 2010)
The workshop was organized jointly by the General Department of
Customs and Excise, the Ministry of Commerce, and SNEC and
supported by the UNESCAP and UNECE.
The workshop laid the foundation for ESCAP’s support, a tailored
Business Process Analysis (BPA) ‘training of analysts’ course followed
by application of BPA techniques to four key import and export products
identified under Cambodia’s economic diversification strategy.
– BPA on rice, cashew, silk and pharmaceuticals
Page 44 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
A Case of Rice Export prior to the launch of the Rice Export National Policy in August 2010
To export rice below 200 ton, the Private Sector needs to write a letter
to ask for permission from MoC and GDCE (General Department of
Customs and Excise). However, even though the MoC agrees, the Private
Sector still needs to negotiate with the GDCE. This takes time and the
buyer contract time is limited i.e. from 3-4 weeks only.
Exporting more than 200 ton of rice is even more difficult and
expensive. For example: the Private Sector (PS) needs to go to Green
Trade (GT) which has the monopoly to export rice; ask them to write a
letter to MoC and then the MoC writes another letter to GDCE to ask for
facilitation on this export operation. At each stage, the concerned
authorities can create difficulties, delay unless the PS agrees to pay
informal fees. Expenses occurred are as follows: (i) 50$ for CO, 0.1 % for
export tax, (official); (ii) 170$ for export permit from GDCE; (iii) GDCE
charges 55$ per container for checking and so does the CAMCONTROL;
(iv) Ministry of Agriculture, Forestry and Fisheries (MAFF) charge 24$ to
check a container; (v) When loading merchandises into the container,
the MoC charge 40$ per container.
Page 45 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
A Case of Rice Export prior to the launch of the Rice Export National Policy in August 2010 (cont.)
Moreover, to transport rice from PS to Sihanouk Ville Port
costs 40$ per ton which include 5$ charged by the trucking
company.
The exporter needs to top 50$ on the price of rice (for
example buying the farmer 375$/ton and selling to buyer
425$) to be able to cover the export and transport charges
and keep 10$/ton of gross margin.
The PS also raises that the PS cannot load the rice into
container directly from the millers in various places.
They have to bring the rice to PP and load into the container.
This cost double price.
These are barriers that Cambodia cannot export rice in large
amount.
Page 46 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Cambodia BPA recommendations for improvement
One-Stop Shop: a special service for processing the export and import of
agricultural products. This office is in charge of issuing all the necessary
permits and ensure: (i) transparent fee, and (2) time limit in 5 working days.
Reduce informal fees: To be competitive with neighboring markets which
are market leaders, Cambodia needs to reduce the sales prices of rice by
limiting unofficial fees for both export and import procedures.
Export of rice: ensure free and fair competition by removing monopolies
such as Green Trade. Thus enabling companies to export freely.
Intervention in transport and transfer of merchandises: The MoC can
influence other relevant entities such as dry ports to lower the cost for a
container from 20 USD to 3-5 USD. Or else the Royal Government of
Cambodia (RGC) can provide a location for transferring merchandises without
charging any fee. The RGC should establish or provide land for establishing
of transferring center for huge amount of merchandises so that Cambodia can
be a big rice supplier in Asia. There should be a website to promote rice in
Cambodia or have an association of exporters of rice like in Thailand.
Page 47 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Cambodia BPA: as-is rice export process (documents & agencies to be visited)
Page 48 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Actors & Main Procedures for Cambodia Rice Export
Page 49 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Cost involved in Cambodia rice export
Page 50 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Time involved for Cambodia rice export
Page 51 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Trade facilitation measures in Cambodia
Cambodia BPAs have identified bottlenecks, and proposed
several specific improvement measures.
Action 1: Tackling Capacity building issues, e.g.
capacity building for exporting firms on export procedures, and
capacity building on market access conditions.
Action 2: Mobilizing of private sector rice actors
Action 3: Enhancing trade facilitation, reducing informal fees
and eliminating illegal check points
Action 4: Identifying key legal and institutional gaps
Page 52 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Trade facilitation measures in Cambodia
Cambodia BPAs provide strategic input which becomes the
National Rice Export Policy endorsed by
the Cambodia Government
Measure 1: MEF/General Department of Customs and Excise (GDCE), MAFF
and MoC/General Department of CAMCONTROL and relevant agencies shall:
develop a specific strategy to identify and streamline export processing procedures
including inspection, documentation requirements, fees and time required to process
export applications; define clear and publicly transparent division of responsibilities
among export regulating ministries/agencies; consider milled rice export as a top
priority in order to reduce to a minimum informal payments and time required to
export by extending “special treatment” similar to the garment sector.
Measure 2: Implement a single-stop service for export processing: MEF/GDCE,
MAFF and MoC/CAMCONTROL and relevant agencies shall set up a Single Stop
Service for export processing and issuing certificates for SPS, fumigation, grading
and quality, quantity and weight, and customs declaration.
Page 53 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Conclusions of Cambodia Rice BPA
The rice sector holds a huge potential economic growth for Cambodia.
If rice export could reach 3 million tons, the total export value would
amount to USD 2.1 billion (approximately 20% of GDP).
According to rice BPA study, high trade facilitation and internal
transportation costs, in particular, are cited as having a significant impact
on smaller rice traders’ ability to effectively export.
The BPA on rice export was instrumental in highlighting actual
uncompetitive trade facilitation practices as well as identifying helpful
suggestions in improving trade facilitation procedures and processes at
the national level.
Overall positive effects of the Rice Export Policy: There has been
some improvement in the export process after the launching of the
new policy of paddy production and rice export. Many government
agencies along the institutional value chain to support the implementation
of the rice export policy. There are visible improvements in reduction of
government-related transaction costs related to Customs, Camcontrol, and
Commerce.
Page 54 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Lessons learned from Implementing BPA
Get Buy-in (political support & ownership) from
the highest-level policy decision makers
Secure adequate resources
Clear roles and responsibilities of
the project stakeholders
Choose the right Champion, e.g. with passion & strong political connections
Start small, and then evolve
Several rounds with key stakeholders for consultation,
verification and validation of the findings & recommendations
Profit from experience
Invest in training
Page 55 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Summary of this session
It is strongly recommended for the country (and also for
each government department) to conduct detailed end-
to-end BPA study (e.g. across different regulatory
agencies & business stakeholders) for the national
strategic products (or for its internal process within the
department) since it is a significant assessment tool for
analyzing the as-is and proposing specific trade
facilitation measures for the country (or for the
department).
Graphical notations based on a modeling language,
UML, is introduced.
Step-by-step BPA project management is proposed.
Page 56 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Conducting a BPA Project in 3 Phases
1. Defining Scope of and Planning a BPA Project
2. Capturing and Modelling the As-Is Process
3. Analyzing Findings of the BPA and
Proposing Recommendations for Improvement
(Proposing the To-Be Process)
Page 57 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Group Exercise 1 - Defining the scope of a BPA project -
Splitting into small groups
Discussing the scope of a BPA project (that you think is very useful
to be carried on even after this workshop), e.g.
– Identifying one strategic export (or import) product of your country
– Identifying a major port or a major mode of transport
(with high level/volume of export activities), e.g.
through a cross-border dry port, a major sea port,
or a major air port.
– Identifying some complicated procedures, e.g. customs clearance with
some certain permits and/or special inspection (involving with not just
customs but also other regulatory agencies)
(covering all Buy/Ship/Pay related procedures)
If time permits, preparing a presentation on the selected
scope of a BPA project, and the reasons why this scope is
selected.
Page 58 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Group Exercise 1 (cont) - Defining the scope of a BPA project -
If time permits, please draw the scope of your BPA
project with a Use Case Diagram
– Identifying the stakeholders/agencies [Actors]
– Identifying key business processes
[Use Cases]
– Identifying their relationships [Which actors are
associated with which Use Cases]
Page 59 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Group Exercise 2 - Conduct Business Process Modeling -
Working within your small group
Draw at least one activity diagram, and collect related
quantitative indicators (numbers of steps, number of physical
visits, time and cost needed for each of those steps, etc.)
for capturing the detailed procedures and documentation
requirements for a selected Use Case.
– Data collection through the Internet,
or from any accessible reference materials
– Data collection from interviewing with domain experts
– Visualizing of those procedures with an activity diagram
– Trying to, at least, verbally describe that activity diagram,
if time permitted, describe it in writing (process description).
Page 60 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Group Exercise 3 - Identify bottlenecks and recommend improvement measures -
Discuss in your small group, and be prepared to
present your findings
Identify and analyze one or two bottlenecks
in your activity diagram(s)
Identify improvement opportunities
Propose your improvement recommendations and
new “to-be” Activity Diagram for improvement
(check also for political, technical, and financial
possibility, …..)
Page 61 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Summary: Beyond a BPA Project
Timeline
1. Inception Phase
- Thinking about
the direction
(to do or not do sth)
- Preparation
- TOR development
(scoping the
objectives)
- Overall Plan
2. BPA Project Phase
- Detailed Plan
- Data Collection
- Capture/Document
the process in details
-Provide
recommendations
- Submit the final reports
3. Post-Project Phase
- Push the
recommendations
to implementation
Today Date Official
Project Kickoff
Date
Project end
Date
Page 62 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
WBS 5 – Administrative/Project Tracking Work-Monthly progress report
WBS 1
– Refine the scope
of the project
- Develop the
detailed plan
Project Kickoff
Date
Project end
Date
WBS 2
– Collect information
- Capture & Document
the process
An Example of BPA Project Plan
Month 1 Month 2 Month 4 Month 3
WBS 3
– Analyze and identify bottlenecks
- Provide recommendation for
improvement WBS 4
– Wrap-up &
submit the
final report
Several iterations of
verification & validation
(refinement)
Page 63 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Expected Outputs of the BPA project
Step Deliverables
Step 1: Define project
scope
Use case diagram illustrating business domain, process areas, process participants, and key
business processes
Step 2: Develop a detailed
plan and secure resources
Detailed project plan including an estimation of human resources required, schedules, and
software supported tools
A list of potential interviewees and their contact information
Step 3: Acquire background
information
A folder of background information about the business processes under the investigation
A list of guiding questions for the interview
Step4: Conduct interview
and document captured
data
A set of activity diagrams illustrating activities that come in a specific order and decision points,
actors who perform those activities, defined inputs and outputs of each activity, criteria for entering
and exiting the business process, relationships among actors, and information flow
A set of business process descriptions that describes activity diagram and lists all related rules
and regulations
Activity diagram illustrating integrated processes in the business domain
Time-Procedure chart displaying time required to complete each business process
Step 5: Analyze the “as-is”
processes and identify
bottlenecks
A set of observations of the as-is business processes that have the potential for improvement
Step 6: Develop and
propose recommendations
Final report with recommendations which may include diagrams of “to-be” business processes
WB
S I
W
BS
II
WB
S I
II
Page 64 UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products, 4-6 May 2015, Almaty. sk @
Key Roles of a BPA project
Project Sponsor:…..
Project Manager:…..
Process Analysts:……
Project Duration: …… months
Stakeholders/Information Resource Persons:
Selected representatives from Stakeholders/Agencies,…
Somnuk Keretho, PhD Director, Institute for IT Innovation..........
Kasetsart University, Bangkok [email protected]
Q & A Thank You.
Wish you a good SW journey.
UNNExT Workshop on Trade Facilitation and Paperless Systems for Agrifood Products
4-6 May 2015 Almaty, Kazakhstan