THE CONCEPT OF PROCESSES This set of slides

THE CONCEPT OF PROCESSES This set of slides is intended to help explain to a group what is meant by ‘Business Processes’ and why the concept is so important in business design and performance improvement. Please do not attempt to use these slides as part of a presentation until you have read and fully understood the relevant sections of ‘Managing by Design’, you know how each slide builds, and you are clear on the points you wish to make with them. There are some associated notes to guide your use of these slides. © Tesseract Management Systems / Managing by Design / 2002 - 1

WHAT IS A PROCESS? Let us start with a readily understood example: What Do You Need From A Car? Forward Motion Decelerate Safely Protect Travellers Smooth Ride Illuminate Path Get from A to B (via C) Safely and in Comfort Follow Path © Tesseract Management Systems / Managing by Design / 2002 - 2

WHAT IS A PROCESS? So how does it do this: Example Automotive Process Store Fuel Tank Mix Fuel With Air Carburettor Ignite & Contain Spark Plug Transmit Force into Rotary Motion Crank Smooth out Motion Flywheel Balance Torques Differential Impart Force Tyre To Road Forward Motion © Tesseract Management Systems / Managing by Design / 2002 - 3

WHAT IS A PROCESS? The Car as a Tapestry of Processes Steering Wheel Fuel Line Silencer Exhaust Fuel Tank Shock Absorbers Battery Inlet Manifold Coil Spring Coolant Reservoir Drum Brake Line Accelerator Brake Pedal Alternator Radiator Distributor Differential Engine Exhaust Manifold Spark Plugs Master Cylinder Disc Brake Gearbox Microsoft Illustration © Tesseract Management Systems / Managing by Design / 2002 - 4

WHAT IS A PROCESS? Process Thinking and Design: Forward Motion Tank How Far? How Fast? How Cheaply? Capacity Carburettor Mix Spark Plug Timing Crank Mix Motion Flywheel Inertia Differential Limit Tyre How Smoothly? Wear Rate Inertia Wear Rate © Tesseract Management Systems / Managing by Design / 2002 - 5

WHAT IS A PROCESS? What Do You Need From Your Business? ? ? Long Term Profitable Growth ? ? ? © Tesseract Management Systems / Managing by Design / 2002 - 6

BUSINESS AS A TAPESTRY OF PROCESSES Goods-in Marketing Housekeeping Manufacture Stores QA Research Contracts Design Facilities Maintenance IT Distribution Document Control © Tesseract Management Systems / Managing by Design / 2002 - 7

WHAT IS A PROCESS? How can you get Right First Time otherwise? : Product Delivery How Much? How Fast? Recruitment Number Appraisal Rewards Design Size Purchasing Rate Production Speed Finance How Cheaply? Quality Growth Simple Facilities How Accurately? Quality Flow Simple Ease Relationship Cost Cycle Flexible Focused © Tesseract Management Systems / Managing by Design / 2002 - 8

PROCESS HIERACHY • Process Redesign • Implementation Plans • Annual Review Change Processes Fundamental Change • Process Control • Performance Mgt. • Problem Solving Management Processes Incremental Change • Call Handling • Report Generation • Technical Support • Training • Shift Patterns • Cleaning Trend Review Measurement Direct Operating Processes Delivery Support © Tesseract Management Systems / Managing by Design / 2002 - 9

BUSINESS IN 3 DIMENSIONS Business Areas/ Product Groups (Validity) Processes (Effectiveness) A B C D K L An Organisation Z M Y X Disciplines /Activities (Synergy) © Tesseract Management Systems / Managing by Design / 2002 - 10

MODELS OF REALITY One Possible Model. . . Support (Control) Plan & Control Finances Primary Process Ensure Compliance Provide & Maintain Quality Mgt. System Provide & Maintain Supply Line Plan & Distribute Products Introduce & Maintain Products/Processes Manufacture Product Provide, Enable & Develop People R. Develop Information System Develop New Business Provide & Maintain Facilities Support (Enable) © Tesseract Management Systems / Managing by Design / 2002 - 11