SCM300 Exam 3
1. business process: A documented series of activities that when completed properly will effectively and efficiently
turn inputs (materials, equipment and labor) into valuable products and/or services.
2. Relationship between business processes and the supply chain: Supply Chains are made up
of a series of interconnected and interdependent processes
Each Process is a mini-supply chain - Managing Inputs and Outputs at a smaller scale
3. Importance of Good Business Processes: Managing from a distance - Executive to Associate Bigger
requires better business processes - The more locations or larger the customer base for a company, the more important the
standardized processes that make up its operations are
Top managers understand business processes - The more processes utilized by a company the more important it is to have managers
that understand the importance of properly designing, effectively managing, and improving processes.
4. Three Requirements of a Good Process: GOOD INTENTIONS: Goal Oriented, Stakeholders
considered, Effective and Efficient, Outputs are desired
REPRODUCIBLE RESULTS: Documented and Easily Understood. Adaptability.
MEASURABLE AND MANAGEABLE: Entire system considered. Accountability, good metrics, easy to identify problems.
5. Common reasons for bad processes: NEVER WAS GOOD
-ambiguity: goals clearly not understood
-misalignment: goals and actions not aligned
,-miscommunication: employees don't understand goals USED TO
BE GOOD
-market evolution: Customer's needs have changed
-miscommunication: New employees do not understand goals LIMITATIONS
- Development of poor or limited processes: May result in limited capacity, inefficiency, confusion...
-lack of appropriate tools & technology
6. Cow Path Theory and Example: Demonstrates bad process; A
bad process is created when someone keeps to the same safe routine
A successful business continues if you learn a faster or better way of doing things
If steps are important you need to communicate that to the employee, some people try to be good employees by finding easier ways,
but sometimes the skip important steps that they never fully knew or understood.
-If you drop a cow in a random field it will eventually find its way to water or die trying. Though it may not be the fastest way, cows will
do their best to reach their goal, and will continue to use the same trail leaving a cow path.
EXAMPLE: Computer Silicon Wafers - Baskets
7. Three Benefits of Excellent Business Processes: CONSISTENCY - Outputs, resource utilization,
equipment and technology requirements, as well as employee training should be similar.
MANAGING FROM AFAR - In organizations that use consistent business processes across locations, executives can identify
strengths and weaknesses via analytics from each facility. Resources, outputs, service times, wait times, etc. can be compared across the
organization.
,ABILITY TO GROW- Documented corporate business processes allow the organization to more easily open new locations. A good
set of processes allows for near immediate replication of the company in different locations. More plainly, this implies that new
locations can simply follow the processes presently used at the other locations.
8. Designing a Business Process: DEFINE GOALS AND PARAMETERS
1. Goals, Stakeholders, Values
2. Block Diagram
3. Establish the Scope
DEFINE SUCCESS
4. Define the Service
5. Measurement & Management Considerations
BUILD IT, TEST IT, IMPROVE IT
6. Primary Steps Detailed
7. Develop a Process Map
8. Evaluation, Testing
9. block diagram: A schematic layout diagram that includes the size of each work area (uses only rectangles and lines to
connect them)
Help process managers see and discuss an entire system. They are used to see the big picture - the world around their process.
10. business process flow chart (process map): Utilize a number of different flowchart symbols to
, help stakeholders identify the different types of activities within a process.
11.................................................................................Scope: Combined objectives and
requirements needed to complete a project.......................................................Properly defining the scope of
a project- Beginning and End- allows managers to estimate costs and the time required to finish the project.
12. Scope Inflation (Scope Creep): Changes, continuous or uncontrolled growth in a project's scope, at any point
after the project begins. This can occur when the scope of a project is not properly defined, documented, or controlled. The scope is
developed to keep consultants focused. When scopes grow too big, the project becomes too difficult to manage and resources are wasted.
Some scope inflation is likely and possibly healthy, but consultants need to constantly manage the project scope.
13. Process: Task, Operation, Data Collection
14. Terminator: Depicts Start/End Entrances and Exits to Process
15. Decision/Conditional: Decision point where multiple flow paths possible
16. Arrow: Depicts Flow of Customer/ Material within the Process
1. business process: A documented series of activities that when completed properly will effectively and efficiently
turn inputs (materials, equipment and labor) into valuable products and/or services.
2. Relationship between business processes and the supply chain: Supply Chains are made up
of a series of interconnected and interdependent processes
Each Process is a mini-supply chain - Managing Inputs and Outputs at a smaller scale
3. Importance of Good Business Processes: Managing from a distance - Executive to Associate Bigger
requires better business processes - The more locations or larger the customer base for a company, the more important the
standardized processes that make up its operations are
Top managers understand business processes - The more processes utilized by a company the more important it is to have managers
that understand the importance of properly designing, effectively managing, and improving processes.
4. Three Requirements of a Good Process: GOOD INTENTIONS: Goal Oriented, Stakeholders
considered, Effective and Efficient, Outputs are desired
REPRODUCIBLE RESULTS: Documented and Easily Understood. Adaptability.
MEASURABLE AND MANAGEABLE: Entire system considered. Accountability, good metrics, easy to identify problems.
5. Common reasons for bad processes: NEVER WAS GOOD
-ambiguity: goals clearly not understood
-misalignment: goals and actions not aligned
,-miscommunication: employees don't understand goals USED TO
BE GOOD
-market evolution: Customer's needs have changed
-miscommunication: New employees do not understand goals LIMITATIONS
- Development of poor or limited processes: May result in limited capacity, inefficiency, confusion...
-lack of appropriate tools & technology
6. Cow Path Theory and Example: Demonstrates bad process; A
bad process is created when someone keeps to the same safe routine
A successful business continues if you learn a faster or better way of doing things
If steps are important you need to communicate that to the employee, some people try to be good employees by finding easier ways,
but sometimes the skip important steps that they never fully knew or understood.
-If you drop a cow in a random field it will eventually find its way to water or die trying. Though it may not be the fastest way, cows will
do their best to reach their goal, and will continue to use the same trail leaving a cow path.
EXAMPLE: Computer Silicon Wafers - Baskets
7. Three Benefits of Excellent Business Processes: CONSISTENCY - Outputs, resource utilization,
equipment and technology requirements, as well as employee training should be similar.
MANAGING FROM AFAR - In organizations that use consistent business processes across locations, executives can identify
strengths and weaknesses via analytics from each facility. Resources, outputs, service times, wait times, etc. can be compared across the
organization.
,ABILITY TO GROW- Documented corporate business processes allow the organization to more easily open new locations. A good
set of processes allows for near immediate replication of the company in different locations. More plainly, this implies that new
locations can simply follow the processes presently used at the other locations.
8. Designing a Business Process: DEFINE GOALS AND PARAMETERS
1. Goals, Stakeholders, Values
2. Block Diagram
3. Establish the Scope
DEFINE SUCCESS
4. Define the Service
5. Measurement & Management Considerations
BUILD IT, TEST IT, IMPROVE IT
6. Primary Steps Detailed
7. Develop a Process Map
8. Evaluation, Testing
9. block diagram: A schematic layout diagram that includes the size of each work area (uses only rectangles and lines to
connect them)
Help process managers see and discuss an entire system. They are used to see the big picture - the world around their process.
10. business process flow chart (process map): Utilize a number of different flowchart symbols to
, help stakeholders identify the different types of activities within a process.
11.................................................................................Scope: Combined objectives and
requirements needed to complete a project.......................................................Properly defining the scope of
a project- Beginning and End- allows managers to estimate costs and the time required to finish the project.
12. Scope Inflation (Scope Creep): Changes, continuous or uncontrolled growth in a project's scope, at any point
after the project begins. This can occur when the scope of a project is not properly defined, documented, or controlled. The scope is
developed to keep consultants focused. When scopes grow too big, the project becomes too difficult to manage and resources are wasted.
Some scope inflation is likely and possibly healthy, but consultants need to constantly manage the project scope.
13. Process: Task, Operation, Data Collection
14. Terminator: Depicts Start/End Entrances and Exits to Process
15. Decision/Conditional: Decision point where multiple flow paths possible
16. Arrow: Depicts Flow of Customer/ Material within the Process
