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What are the best practices for conducting a process automation feasibility analysis?

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Process automation is the use of software or technology to perform tasks that are usually done by humans, such as data entry, invoicing, or customer service. Process automation can help businesses improve efficiency, quality, and customer satisfaction, while reducing costs, errors, and risks. However, not every process is suitable for automation, and some may require more effort, time, or investment than others. Therefore, before implementing any process automation solution, it is important to conduct a feasibility analysis to evaluate the potential benefits, challenges, and requirements of automating a specific process.

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Jodie Mjoen

CEO/ President at Impact Dakota - I like to see people happy and successful. I find ways where I can help make that…

1 Identify the process

The first step in conducting a process automation feasibility analysis is to identify the process that you want to automate. This may be a process that is repetitive, manual, time-consuming, error-prone, or customer-facing. You should also consider the frequency, volume, and complexity of the process, as well as the current performance and pain points. To identify the process, you can use tools such as process mapping, flowcharts, or interviews with the stakeholders involved.

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Jodie Mjoen

CEO/ President at Impact Dakota - I like to see people happy and successful. I find ways where I can help make that happen. Love everybody.
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Some ways to get started: Actually I agree with importance of higher frequency task automation can give back hours & days a week vs. seconds & minutes saved. Additionally, when process mapping- you need to value stream map- that is identify value added activities vs. non-value added activities. Then eliminate as much non-value added activities as possible- worst thing you can do is automate waste / non-value added tasks!!

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2 Assess the automation potential

The next step is to assess the automation potential of the process, or how much of the process can be automated and how much human intervention is still needed. You can use criteria such as the level of standardization, variation, and exception handling of the process, as well as the availability and quality of the data and inputs. You can also use frameworks such as the RPA (Robotic Process Automation) suitability matrix or the IPA (Intelligent Process Automation) maturity model to evaluate the automation potential of the process.

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Jodie Mjoen

CEO/ President at Impact Dakota - I like to see people happy and successful. I find ways where I can help make that happen. Love everybody.
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Low hanging fruit when assessing automation is monitoring cost of poor quality (scrap, rework, disposal, & recall costs) to identify opportunities.

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3 Estimate the costs and benefits

The third step is to estimate the costs and benefits of automating the process, or how much value and savings can be generated by the process automation solution. You can use metrics such as the ROI (Return on Investment), the payback period, the NPV (Net Present Value), or the TCO (Total Cost of Ownership) to quantify the costs and benefits. You should also consider the qualitative benefits, such as the impact on customer satisfaction, employee engagement, quality, and compliance.

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Jodie Mjoen

CEO/ President at Impact Dakota - I like to see people happy and successful. I find ways where I can help make that happen. Love everybody.
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Think in multiples here: 10 cavity injection mold fixture is better than 2 cavity injection mold fixture, 2 or 4 CNC mills or robot weld stations per technical operator, sequential operation automation using conveyer system (circuit card assembly = automate screen printing, surface mount component placement, solder oven, optical inspection, etc.).

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4 Analyze the risks and challenges

The fourth step is to analyze the risks and challenges of automating the process, or what are the potential pitfalls and obstacles that may arise during or after the implementation of the process automation solution. You can use tools such as the SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis or the PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) analysis to identify the internal and external factors that may affect the success of the process automation project. You should also consider the mitigation strategies and contingency plans for each risk and challenge.

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Jodie Mjoen

CEO/ President at Impact Dakota - I like to see people happy and successful. I find ways where I can help make that happen. Love everybody.
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I also find risk assessment matrices or PFMEAs (process failure mode & effects analysis) very helpful here to draw attention quickly to the most important risks and challenges.

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5 Choose the automation tool

The fifth step is to choose the automation tool that best fits the needs and objectives of the process and the business. There are different types of process automation tools available in the market, such as RPA, BPA (Business Process Automation), BPM (Business Process Management), or AI (Artificial Intelligence). You should compare the features, capabilities, compatibility, scalability, security, and pricing of each tool, as well as the vendor support and reputation. You can also use tools such as the Gartner Magic Quadrant or the Forrester Wave to evaluate the automation tool vendors.

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Jodie Mjoen

CEO/ President at Impact Dakota - I like to see people happy and successful. I find ways where I can help make that happen. Love everybody.
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With the ever lowering costs of awesome automation equipment and cloud based storage you'll be surprised how much more features and better equipment you can get for your $$$!!

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6 Validate the feasibility

The final step is to validate the feasibility of automating the process, or how realistic and achievable the process automation project is. You can use methods such as the pilot testing, the proof of concept, or the proof of value to test and demonstrate the functionality, performance, and benefits of the process automation solution. You should also collect feedback from the stakeholders, users, and customers involved in the process, and make any necessary adjustments or improvements based on the results and findings.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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What are the best practices for conducting a process automation feasibility analysis?

1

2

3

4

5

6

7

1 Identify the process

2 Assess the automation potential

3 Estimate the costs and benefits

4 Analyze the risks and challenges

5 Choose the automation tool

6 Validate the feasibility

7 Here’s what else to consider

Process Automation

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What are the best practices for conducting a process automation feasibility analysis?

1

2

3

4

5

6

7

1 Identify the process

2 Assess the automation potential

3 Estimate the costs and benefits

4 Analyze the risks and challenges

5 Choose the automation tool

6 Validate the feasibility

7 Here’s what else to consider

Process Automation

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