1.4 Enhancing Business Processes & Adding Value chpt 10 & 13

Transformation process- key to converting inputs into outputs and creating value, playing crucial role in efficient functioning of org. across industries

input in a transformation process- labor, natural resources, capital, information, come from specialized markets

transformation- type of organization the output would be a service or a product

businesses can only survive on the production process is continuous and are judged by the quality of ourputs

Core/ primary processes-org. primary mission for delivering core products or services, form foundation of value creation, crucial role in achieving organizational goals and customer satisfaction

Support/ administrative process- support infrastructure and resources for core process, ensure efficient function & delivery of a product or service

Management processes- aligning and overseeing core and support processes w/ organizational objectives, ensures efficiency and effectiveness in achieving organizational goals

business process management (BPM)- systematic approach designing, executing, monitoring, and optimizing business processes, enhances efficient, reduces errors, and real-time adaptation

PDCA- Plan-schedyle; Do- measure; Check- Compare; Act- steer

planning in PDCA Cycle- plan for managing processes based on production norms and standards, machine hours and budget

measuring in PDCA cycle- measuring business processes and comparing measurements to the plans norms and standards

adjustment in PDCAcycle- steps that need to be taken if certain benchmarks are succeeded

Adding value thru BPM- effective business processes add value to products by minimizing waste, improving quality, optimizing efficiency and should be developed through buyers perspective

• enhances competitiveness and customer satisfaction

Data analysis to improve business management and process the data it becomes info

quality control in business processes- ensures outputs meet predefined quality standards results in reliable product or service satisfying customer expectations and increase competitiveness

Lean 6-sigma: combines lean which focuses on eliminating taste and six sigma: focuses on reduce process variation and defects and together drive to continually improve customer satisfaction and cost savings

lean 6-sigma closely monotoers customer needs, limits one to the use of facts, and pays attention to management and innovation/ improvement of the business processes

• Sigma Abt quality level

• lean how efficient

6 sigmas 5 phases

• define in lean 6 sigma- defining the problem , project goals are formulated, focus and boundaries of the project are created

• measure in lean 6 sigma- information-gathering current status and process quality, carefully looking ar measument instruments and how to apply them

• analyze in lean 6 sigma- obtaining profound knowledge and insight into the processes to achieve cost savings, techniques from other fields used

• improve in lean 6 sigma- optimizing working method, creating best possible design of activities

• control in lean 6 sigma- verify, manage and safeguard improved process

belts in 6-sigma- represents leader roles in champions (high ranking employees), black belts (frequently involved in project and experts in 2 fields), and yellow/ green belts (offer input in work place)

lean management - emphasizes eliminating waste and delivering value to customers, promotes a culture of continuous improvement, cost reduction, and enhanced efficiency

supply chain management- coordination and optimization process across the value chain, from supplier, leading to cost reduction and improved reliability

lean 6 sigma is involved in improving quality, lead time, learning org. and business results.

top level management: mainly policy development consists of general manager, board of directors, entente structure, and collegial board

middle management: implement boards general policy, preforms managerial function to executive employees, establishes divisional policy translates to departmental pland and asseses and clears implementation of these plans and reports it to the board

executive employees: prefrom transformation process that turns input into output, tasks given are policy implementing or policy directing governance takes form of operational decisions

board of commissioners: monsters managements policy and general organizational affairs