© tesseract management systems / managing by design / 2002 - 1 the concept of processes this set of...
TRANSCRIPT
© Tesseract Management Systems / Managing by Design / 2002 - 1
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 - 2
Forward Motion
DecelerateSafely
ProtectTravellers
SmoothRide
IlluminatePath
FollowPath
Get fromA to B(via C)Safelyand in
Comfort
WHAT IS A PROCESS?
Let us start with a readily understood example:What Do You Need From A Car?
© Tesseract Management Systems / Managing by Design / 2002 - 3
Store Fuel TankTankTankTank
Mix Fuel With Air CarburettorCarburettorCarburettorCarburettor
Ignite & Contain Spark PlugSpark PlugSpark PlugSpark Plug
Transmit Forceinto Rotary Motion CrankCrankCrankCrank
Smooth out Motion FlywheelFlywheelFlywheelFlywheel
Balance Torques DifferentialDifferentialDifferentialDifferential
Impart ForceTo Road
TyreTyreTyreTyre
WHAT IS A PROCESS?
So how does it do this: Example Automotive Process
Forward Motion
© Tesseract Management Systems / Managing by Design / 2002 - 4
Alternator
Radiator
CoolantReservoir
InletManifold
Battery
Fuel Line
SteeringWheel
SilencerExhaust
Fuel Tank
ShockAbsorbers
Coil Spring
DrumBrake
Brake LineAccelerator
Brake Pedal
Distributor
Differential
MasterCylinder
Disc BrakeGearbox
ExhaustManifold
Engine
SparkPlugs
WHAT IS A PROCESS?
The Car as a Tapestry of Processes
Microsoft Illustration
© Tesseract Management Systems / Managing by Design / 2002 - 5
Forward Motion
TankTankTankTank
CarburettorCarburettorCarburettorCarburettor
Spark PlugSpark PlugSpark PlugSpark Plug
CrankCrankCrankCrank
FlywheelFlywheelFlywheelFlywheel
DifferentialDifferentialDifferentialDifferential
TyreTyreTyreTyre
HowFar?HowFar?
Capacity
Wear Rate
HowFast?HowFast?
Mix
Timing
Limit
Inertia
How Smoothly?How Smoothly?
Inertia
Motion
HowCheaply?HowCheaply?
Wear Rate
Mix
WHAT IS A PROCESS?
Process Thinking and Design:
© Tesseract Management Systems / Managing by Design / 2002 - 6
?
?
?
?
?
?
LongTerm
ProfitableGrowth
?
WHAT IS A PROCESS?
What Do You Need From Your Business?
© Tesseract Management Systems / Managing by Design / 2002 - 7
Housekeeping IT Facilities Maintenance
BUSINESS AS A TAPESTRY OF PROCESSES
Goods-in Manufacture Stores QA Distribution
Marketing Research Contracts Design DocumentControl
© Tesseract Management Systems / Managing by Design / 2002 - 8
ProductDelivery
HowMuch?HowMuch?
Number
Rewards
Speed
Rate
Size
RecruitmentRecruitmentRecruitmentRecruitment
AppraisalAppraisalAppraisalAppraisal
DesignDesignDesignDesign
FacilitiesFacilitiesFacilitiesFacilities
PurchasingPurchasingPurchasingPurchasing
ProductionProductionProductionProduction
FinanceFinanceFinanceFinance
WHAT IS A PROCESS?
How can you get Right First Time otherwise?:
HowFast?HowFast?
Number
Simple
Cycle
Flow
How Accurately?How Accurately?
Quality
Flexible
Growth
Quality
Relationship
HowCheaply?HowCheaply?
Focused
Simple
Cost
Ease
© Tesseract Management Systems / Managing by Design / 2002 - 9
ChangeProcesses
Fundamental Change Trend Review
Operating Processes
Direct
Delivery
Support
• Process Redesign• Implementation Plans• Annual Review
PROCESS HIERACHY
• Process Control• Performance Mgt.• Problem Solving
• Call Handling• Report Generation• Technical Support
• Training• Shift Patterns• Cleaning
Management Processes
Incremental ChangeMeasurement
© Tesseract Management Systems / Managing by Design / 2002 - 10
An Organisation
Disciplines/Activities(Synergy)
X
Y
Z
BusinessAreas/ProductGroups(Validity)
K
L
M
Processes (Effectiveness)
A B C D
BUSINESS IN 3 DIMENSIONS
© Tesseract Management Systems / Managing by Design / 2002 - 11
MODELS OF REALITYOne Possible Model...
Provide & MaintainQuality Mgt. System
EnsureCompliance
Plan & ControlFinances
Support (Control)
Provide & MaintainFacilities
Provide, Enable &Develop People R.
DevelopInformation System
Support (Enable)
Provide & MaintainSupply Line
DevelopNew Business
Introduce & MaintainProducts/Processes
Plan & DistributeProducts
ManufactureProduct
Primary Process