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Business Process


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What is Business Process Management?
“BPM is itself a process that ensures continued improvement in an organisation’s performance.” (Burlton, 2001)
What is a Business Process?
A true process comprises all the things we do to provide someone who cares with what they expect to receive. (Burlton, 2001)
What is a Business?
Any organisation whose aim is to create results of value to someone who cares about those results. (Burlton, 2001)
What is Lee and Dale's definition of BPM?
BPM intends to align business processes with the strategic objectives and customers’ needs, but requires a change in a company’s emphasis from functional to process orientation. (1991)
Operations management?
The activities, decisions and responsibilities of managing the production and delivery of products and services.
Operations function?
The arrangement of resources that are devoted to the production and delivery of products and services.
Operations managers?
The staff of the organisation who have particular responsibility for managing some or all of the resources which comprise the operation's function.
What are the three core functions of any organisation?
1) The marketing function (communicates products & services to generate customer interest). 2) The product/service development function (creates new/modified products to generate future customer interest). 3) The operations function (fulfills customer requests throughout production & delivery).
What is a support function?
Area of an org. which enables the core functions to operate effectively (e.g. accounting, human resources).
What is the Transformation Process model?
A model that describes operations in terms of their input resources, transforming process and outputs of goods and services.
What are inputs (to the process)?
Resources that are treate, transformed or converted in the process.
Describe: Inputs - materials.
Changing their physical properties (e.g. shape or composition) in manufacturing. Change the location of materials (e.g. parcel delivery). Change possession of materials (I.E. retail operations). Storing the materials (I.E warehouses).
Describe: Inputs - information.
Changing purpose or form of information (e.g. accountants). Changing possession of information (e.g. market research org. selling info). Storing information (e.g. archives, library). Change location of information (e.g. telecommunication org).
Describe: Inputs - customers.
Change physical properties (e.g. hairdresser, cosmetic surgeon). Store/accomodate (e.g hotels). Change location (e.g. airlines, public transport). Change physiological state (e.g. hospitals, doctors). Change psychological state - normally entertainment services (e.g. music, theatre, television, radio, theme park).
What are transforming resources?
Resources that act upon transformed resources (Inputs). Examples: facilities (buildings, equipment) and staff (people who operate, maintain & manage the operation).
What are outputs (to the process)?
Products and services produced by the process.
What is tangibility?
Distinguishes between products and services. Products can be touched, services can't (but you can often see or feel results of them, e.g. a haircut or consultancy advice).
Example of 'pure products' organisations?
Crude oil production.
Example of 'pure services' organisations?
Psychotherapy clinic.
Definition & example of 'facilitating services'?
Servics produced by an operation to support its products. Example: Aluminium smelter - provide physical product but also may provide technical advice.
Definition & example of 'facilitating products'?
Products produced by an organisation to support its services. Example: Management consultancy - provides an advisory service but also produces reports/documents.
What are Burlton's five principles of BPM?
1. Business change must be performance driven. 2. Business change must be stakeholder based. 3. Business change conditions must be traceable to the stakeholder criteria. 4. The business must be segmented along business process lines to synchronise change. 5. Business processes must be managed holistically.
What are processes?
Arrangement of resources that produces some mixture of goods and services. Example (Department Store): Inputs - Goods for sale, sales staff, information systems, customers. Processes - Source and store goods, display goods, give sales advice, sell goods. Outputs - Customers and goods 'assembled together'.
What is a supply network?
The network of supplier and customer operations that have relationships with an operation.
What is an internal supplier?
Processes or individuals within an operation that supply products or services to other processes or individuals within the organisation.
What is an internal customer?
Processes or individuals within an organisation who are the custovers for other internal processes or individual's outputs.
What is the hierarchy of operations?
The idea that all operations processes are made up of smaller operations process.
Define - Operations as a function.
Part of the organisation which produces the products and services for the organisation's external customers.
Define - Operations as an activity.
The management of th process within any of the organisation's functions.
What are Slack's Four 4's?
Varying ways in which operations transform input resources into output products/services. Volume, variety, variation and visibility.
Define - Volume (Four V's).
Level or rate of output from a process.
Define - Variety (Four V's).
Range of different products and services produced by a process.
Define - Variation (Four V's).
Degree to which the rate or level of output varies from a process over time.
Define - Visibility (Four V's).
Amount of value-added activity that takes place int he presence of the customer (also called customer contact).
What is an example of a mixed high and low visibility operation?
Airport. 'Front-office': information desks, check-in, etc. 'Back-office': baggage handling, cleaners, admin, etc).
Implications of LOW volume?
Low repitition. Each staff member performs more of job. Less systemisation. High unit costs.
Implications of HIGH volume?
High repeatability. Specialisation. Systemisation. Capital intensive. Low unit costs.
Implications of HIGH variety?
Flexible. Complex. Customer needs matched. High unit cost.
Implications of LOW variety?
Well defined. Routine. Standerdised. Regular. Low unit costs.
Implications of HIGH variation in demand?
Changing capacity. Flexibility. Anticipation. In touch with demand. High unit cost.
Implications of LOW variation in demand?
Stable. Routine. Predictable. High utilisation. Low unit costs.
Implications of HIGH visibility?
Short waiting tolerance. Satisfaction goverened by customer perception. Customer contact skills needed. Received variety is high. High unit cost.
Implications of LOW visibility?
Time lag between production and consumption. Standardised. Low contact skills. High staff utilisation. Centralisation. Low unit costs.
Activities of operations management - Understanding the operation's strategic objectives.
Develop a clear vision of how the operation should help the org. achieve long-term goals.
Activities of operations management - Developing an operation's stragegy.
Guiding decision making towards the org's longer-term goals.
Activities of operations management - Designing the operation's products, services & processes.
Activity of determining the physical form, shape and composition of products, services and processes (may not be directly part of operations function in some organisations).
Activities of operations management - Planning & controlling the operation.
Deciding what the operations resources should be doing and making sure they are doing it.
Activities of operations management - Improving the performance of the operation.
Continuing responsibilty of all operations managers.
Activities of operations management - Broad responsibilities.
Out of the many, five that are especially relevant are: Effects of globalisation. Pressures for environmental protection. Increasing relevance of social responsibility. Need for technology awareness. How knowledge management is becoming an important part of operations management.
Four advantages an effective operation can give to an organsation?
Reduce the costs of production and being efficient. Can increase revenue by increasing customer satisfaction (through good quality and service). Can reduce the amount of investment/capital employed to produces goods/services by being innovative in using physical resources, etc. Can provide basis for future innovation.

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