Understanding Business Processes and Operations Management: A Comprehensive Guide, Assignments of Information Technology

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1.3 - Evaluate, by using a process model,

the operations management of a

selected organization

Claudette P Bennett

1. Introduce and describe business process
2. Describe different processes:

 Input-transformation-output process  Processes hierarchy  Characteristics of operations processes e.g. Four Vs – volume, variety, variation, visibility  Business process modelling  Lean management techniques  Integration of supply chain

 Process models are used to lump processes of

the same type into a model so that you can see

how those processes can work together.

 It shows the activities organization typically

performs and the kind of information it needs to

successfully perform those activities, to

transform inputs to goods and services.

 Better business process discovery and modeling

lead to better business process management.

A business process model should define the

following elements:

1. The goal of the process
2. Specific inputs and outputs
   3. Consumed resources
   4. Activities and the order in which they are performed
   5. Significant events that drive or affect the process

 To increase process speed or reduce cycle time;

 To increase quality; or to reduce costs, such as labor, materials, scrap, or capital costs.

 To explore and evaluate the different courses of action

Input process is a mixture of transformed and transforming resources.

• Transformed resources (transformed in some way by the operation)
• Transforming resources (used to perform the transformation process).

Three (3) types of resource that may be transformed in operations are:

1. materials - physical inputs to the process,
2. information – that is being process or used in the process ,
3. customers – the people who are transformed in some way (hair dresser), facilities and staff.

Two (2) types of transforming resource are:

1. Staff – the people involved directly in the transformation process or supporting it
2. Facilities – land, buildings, machines and equipment

.

Level 1 Business Process

• A high level aggregation of company functionality

Level 2 Major Processes

• A bundle of processes that belong to the same area of responsibility dealing with similar tasks and activities for functional or other reasons

Level 3 Business Sub process

• Fulfill the same business mission but in a different manner or with a different application

Level 4 Business Process Activities

• Activities at the lowest level that needs to be fulfill at the end of the step.

1. Volume: Key to how business organized, for example McDonalds high volume low cost hamburger and fast food production.
2. Variety: Flexibility in service, for example choice between taxi and a bus service
3. Variation: Customized products, for example homes for sales with different number of rooms
4. Visibility: Customers ability to see, track their experience or order through the operation process

 Manufacturing Process types:

• Project, jobbing, batch, mass, continuous.

 Service Process types:

• professional services, service shops, mass services

 Basic types of layouts:

• process layout or functional layout, product layout, fixed-position layout, group or cell layout, hybrids and mixed layout.

 A quality management tool, like for example

Six Sigma, and is useful especially in change management.

 Refers to a structural representation,

description or diagram, which defines a specified flow of activities in a particular business or organizational unit.

 Steps in Lean Management Technique:

1. Realize that there are wastes in the system to be remove.
2. Identify the different forms of that waste and identify the causes for these wastes.
3. Finding solutions for the identified root causes – look at the total picture.
4. Implementation process and making sure things are going in the intended way. Training and follow-up in this step.