A business process is a set of recurring activities that produce an output/outcome that is of value to a customer not on the functions involved
–A transformation of an input into an output
–An integrative framework
There are two main types of processes: Operating Processes and Infrastructure Processes.
Each Operating and Infrastructure Process is composed of Sub-processes, Activities and Tasks.
Decomposing Processes into their Sub-processes, Activities and Tasks provides a full picture of the actions taken to complete the Processes’ outcomes.
Processes that add value to an organization are those that are well defined and well managed.
Some characteristics of a well managed process
Someone is responsible and held accountable for how well the process performs (process owner)
–well-defined boundaries (process scope)
–well-defined internal interfaces and responsibilities
–documented procedures, work tasks, and training requirements
–measurement and feedback controls close to the point where the activity is performed
–customer-related measurements and targets
–formalized change procedures
–known cycle time
In these times, companies are measured on how well they manage their processes
A Process Focus…
Enables the organization to focus on customer
Keeps the focus on outcomes
Helps the organization understand inputs and how they become outputs
Provides a systematic view of organization activities
Uncovers low value added work and inefficiencies
Provides a view of why and how error occurs and a method for correcting them
Develops a complete measurement system for all business areas
Assists the organization in effectively managing its interrelationships
Provides a means to effect major changes to very complex activities in a rapid manner
Provides an understanding of how good the company can be
Allows the organization to predict and control change
Prepares the organization for meeting future challenges