info march 10

Business Processes Overview

Definition of a Process

• A process is a series of tasks designed to achieve a specific goal.

• Example processes:

  • Brushing teeth

    • Task 1: Pick up your toothbrush.

    • Task 2: Pick up your toothpaste.

    • Goal: Clean teeth.

  • The Water Cycle:

    • Evaporation: Water evaporates from lakes/oceans.

    • Condensation: Water forms clouds.

    • Precipitation: Water falls as rain/snow.

    • Collection: Water collects in rivers/oceans.

Definition of a Business Process

• A business process is a focused process aiming to achieve a specific business goal.

• Example business processes:

  • Invoice processing

  • Payroll processing

  • Handling customer complaints

  • Quality control

  • Inventory management

Examples of Business Processes

Generic Sales Order Process

• Steps of a sales order process include:

  1. Customer inquiry

  2. Placing an order

  3. Entering the order

  4. Confirming the order

  5. Fulfilling the order (picking item from warehouse)

  6. Order shipment

  7. Generating an invoice

  8. Payment processing

  9. Completing the order

Input and Output Transformation

• A business process transforms inputs into outputs that have added value.

• Example inputs and outputs:

  • Student Enrollment Process:

    • Input: Potential student

    • Output: Enrolled student with educational opportunities.

  • Loan Approval Process:

    • Input: Customer seeking a loan

    • Output: Approved loan with potential interest revenue for the lender.

  • Manufacturing Process (e.g., iPhone):

    • Input: Raw materials (metals, plastics, silicon)

    • Output: Fully functional iPhone with diverse capabilities.

Importance of Documenting Business Processes

Reasons for Documentation

1. Standardization:

   • Ensures the process is performed consistently every time.

   • Reduces variability and error in process execution.

2. Training:

   • Provides a training guide for new employees.

   • Simplifies onboarding by offering clear instructions on processes.

3. Knowledge Preservation:

   • Prevents loss of critical process knowledge when key employees leave the organization.

   • Aids in transitioning responsibilities without loss of effectiveness.

Methods of Documentation

• Writing out detailed lists of tasks.

• Creating diagrams to visually represent the process.