Understanding Process and Process Redesign

Understanding Process and Process Redesign

1. Process: end-to-end work across the enterpise

   • Designed group of related tasks that together create customer value
   • WORK= process work
   • The Iron Triangle

2. What are the types of processes?

   • Core Process
     • Key activity which, if performed in an exemplary manner, will ensure a firm's competitiveness.
     • E.g. Supply Chain
   • Enabling Process
     • What needs to be done, but customers won’t pay for.
     • E.g. Finances and Human Resources
   • Governing Process
     • This is what holds the enterprise together
     • E.g. Strategic Planning

3. Types of Work

   • Value- Added (VA)
     • What customers will pay for
   • Non-Value Added (NVA)
     • Needed to support Value-Added
     • Customer won't pay for it
   • Waste (W)
     • Everything else

4. Value Time vs. Elapsed Time

   • VT/ ET

5. PROCESS IMPROVEMENT

   • Helps an organization optimize its processes to achieve more efficient results
   • Bottoms- Up
     • Lean and Six Sigma
   • Process Redesign
     • When bigger potential benefits
     • Process for PR
       • Mobilization
       • Diagnosis
       • Redesign
       • Transition
   • Process Reengineering
     • Crosses many boundaries

6. Ways to represent a business

   • P and L Statement
   • Balance Sheet
   • Customer List

7. Process Owner

   • A senior individual with accountability and authority for the end-to-end performance of a process

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