V Collection of related, structured activities or tasks

that produce a specific service or product .

V Three types of business processes-

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V ÷ strong emphasis on how work is done within
an organization.

V Process approach ² viewed as a structure

showing necessary activities producing value
for customers

V Hammer & Champ's definition :- ÷ collection

of activities that takes one or more kinds of
input and creates an output that is of value to
the customer.
{ ©
 : It must have clearly defined
boundaries, input and output.

{ Ú
: It must consist of activities that are

ordered according to their position in time and
space.

{ 

: There must be a recipient of the
process¶s outcome.
{  

 : The transformation taking place
within the process must add value to the
recipient, either upstream or downstream.

{ 3





: ÷ process can not exist in itself, it
must be embedded in an organizational
structure.

{ 


   : ÷ process regularly can, but

not necessarily must, span several functions-
range over several business functions.
V ÷n operation is composed of ?


designed
to add value by transforming inputs into useful
outputs.

V Inputs may be materials, labor, energy, and

capital equipment.

V Outputs may be a physical product or a service

{ ©efine the process boundaries that mark the
entry points of the process inputs and the exit
points of the process outputs.

{ Create a process flow diagram that illustrates

the various process activities and their inter-
relationships.

{ ©etermine the capacity of each step in the

process. Calculate other measures of interest.
{ Identify the blockage, that is the step having
the lowest capacity.

{ Evaluate further limitations in order to

quantify the impact of the blockage.

{ Use the analysis to make operating decisions

and to improve the process.
V The process boundaries are defined by the
entry and exit points of inputs and outputs of
the process.

V Once the boundaries are defined, the process

flow diagram is a valuable tool for
understanding the process using graphic
elements to represent tasks, flows, and storage.
V The following is a flow diagram for a simple
process:

Process flow diagram

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