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Business Processes
Chapter 4
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4Chapter Objectives
Be able to: Explain what a business process is and how the business
perspective difers rom a traditional, unctional perspective Create process maps or a business process and use them to
understand and dia!nose a process Calculate and interpret some common measures o process
perormance "iscuss the importance o benchmar#in! and distin!uish
between competitive benchmar#in! and processbenchmar#in!
"escribe the $ix $i!ma methodolo!%, includin! the steps othe "&'(C process
)se and interpret some common continuous improvementtools
Explain what the $uppl%*Chain Operations +eerence $CO+-model is and wh% it is important to businesses
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4Business Processes
Process . ' set o lo!icall%related tas#s or activitiesperormed to achieve a de/nedbusiness outcome Pri!ary process " # process that addresses the
!ain $alueadded acti$ities o% an organi&ation.
'e$elop!ent process " # process that see(s toi!pro$e the per%or!ance o% pri!ary andsupport processes.
)upport process " # process that per%or!snecessary, albeit not $alue added acti$ities.
2010 #PIC) 'ictionary
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4(mprovin! BusinessProcesses
0i!ure41
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4&appin! BusinessProcesses &appin! . 2he process o developin!
!raphic representations o theor!ani3ational relationships andor
activities that ma#e up a businessprocess
Process &ap . ' detailed map thatidenti/es the speci/c activities thatma#e up the inormational, ph%sical,andor monetar% 5ow o a process
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4Purposes o &appin!
Create a common understandin!o the processes, activities, andresults
"e/ne the boundar% o theprocess
Provide a baseline to measurethe impact o improvementeforts
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4Process &appin!6uidelines (denti% the entit% that will serve as
%our ocal point Custo!er- rder- Ite!-
(denti% clear boundaries and startin!and endin! points
7eep it simple 'oes this detail add any insight- 'o /e need to !ap e$ery eception
condition-
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4Process &appin!$%mbols
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4Process &appin!Example $an "ie!o "istribution Center
"C-
Process: 'ealer %aes order to 'C. ne out o% 2* orders lost because o%
paper a!s.
a sits in 5In 6o7 around 2 hours 8up to 49 until internal !ailpic(s it up.
Internal !ail ta(es about one hour 8up to 1.* hours9 to deli$er
to the pic(ing area. ne out o% 100 %aes are deli$ered to the/rong place.
rder sits in cler(:s inbo until it is processed 80 to 2 hours9.Processing ti!e ta(es * !inutes.
I% ite! is in stoc(, /or(er pic(s and pac(s order 8a$erage ; 20
!inutes, but up to 4* !inutes9. Inspector ta(es 2 !inutes to chec( order. )till, one out o% 200
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48et9s &ap the Process
;hat is the ocal point o themappin! efort