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Business Process Analysis

Business process improvement can
Streamline outdated practices
Enhance efficiency
Promote compliance and standardization
Making an organization more agile
Business process improvement involves three key steps:
Measure what matters to most customers.
Monitor the performance of key business processes.
Assign accountability for process improvement.
Business Process:
A standardized set of activities that accomplish a specific task, such as processing a customer’s order

EXAMPLE: The process steps are the activities the customer and store personnel do to complete the transaction

Transform a set of inputs into a set of outputs (goods or services) for another person or process by using people and manual and automated tools

Business process characteristics
Have internal and external users

Can be:
Cross-departmental
Occur across organizations

Are determined by how work is done in the organization

Business process characteristics (more)
Should be documented and fully understood by everyone participating in and managing the process
Should be modeled to:
Enable complete understanding
Consider improvements
Customer facing processes
result in a product or service that is received by an organization’s external customer
Business facing processes
invisible to the external customer but essential to the effective management of the business and include goal setting, day-to-day planning, performance feedback, rewards, and resource allocation
Continuous process improvement model
attempts to understand and measure the current process, and make performance improvements accordingly
Organizations begin by documenting what they do today, establish some way to measure the process based on what customers want, perform the process, measure the results, and then identify improvements opportunities based on the collected information
This method is effective to obtain gradual, incremental improvement
Business Process Reengineering (BPR)
analysis and redesign of workflow within and between enterprises
Assumes the current process is irrelevant, does not work, or is broken and must be overhauled from scratch

Set project scope
Study competition
Create New Processes
Implement Solution

BUSINESS PROCESS IMPROVEMENT
Companies are forced to improve their business processes because:
-Customers are demanding better products and services
-Competitors are improving their processes, products, services
Companies are forced to improve their business processes because:
Owners and investors are seeking:
-Higher profits
-Reduced costs
-Repeat customers
-Positive reputations for products, services, and the organization.
Business Process Modeling
The activity of creating a detailed flow chart or process map of a work process showing its:

A graphical description of a process
Shows the sequence of process tasks
Is developed for a specific purpose
Is developed from a selected viewpoint

Inputs
-Tasks and activities

Outputs
-in a structured sequence

Types of Business Process Models
As-Is Process Model

To-Be Process Model

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