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Block_10_Business Models and Processes 1
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Learning Goals:
Definitions of a "process" and "business process" and their relevance in Supply Chain Management.
Different perspectives: Functional vs. Process Orientation.
Relation between the "business process model" and "process hierarchy".
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Definition of "Process":
Sequence of successive activities leading to a result triggered by events.
Can be further subdivided into subprocesses.
Key processes impact operational core business; auxiliary processes support key processes.
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Definition of "Business Process":
A bundle of activities producing valuable output for customers.
Characteristics:
Sequence of subprocesses.
Inputs required to generate value from customer perspective.
Value must be measurable to identify improvement potential.
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Difference between a "Business Process" and a "Process":
Business Process: Cross-functional, adds value to customers, meets strategic goals.
Process: Sequence of steps generating output from inputs.
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Functional Orientation: Emphasizes the roles and responsibilities of distinct departments within an organization, focusing on departmental expertise and efficiency. Each function operates independently to achieve its specific objectives.
Process Orientation: Focuses on the integration and optimization of processes that span across various departments. It aims to improve overall operational efficiency by understanding and enhancing the flow of activities that add value to the customer.
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Business Process Model:
Visual representation of core business processes like:
Innovation processes
Financial management processes
Quality management processes
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Process Hierarchy Example: "Order Fulfilment Process":
Steps include Plan, Source, Make, Deliver, with main processes and subprocesses.
Definition:
A process hierarchy is a structured framework that organizes processes into levels, showcasing the relationships between main processes and their subprocesses. It helps in understanding how comprehensive activities, such as those in an 'Order Fulfilment Process', can be broken down into manageable components for better analysis and optimization.
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Specific Core Processes in Industries:
Manufacturing: Product development, order processing
Banking: Loan processing
E-Commerce: Online shop creation, shipping
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APICS Framework Basics:
Covers various value-adding process areas including:
Product and Portfolio Management
Customer Chain Operations
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APICS Framework Elements:
Product life cycle, customer chain, design chain operations, among others.
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APICS Framework Operations:
SCOR primarily manages activities directing customer satisfaction through effective supply chain processes.
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Member of NW University of Applied Sciences and Arts
Focus: Supply Chain Process Management
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Learning Goals:
Understanding of process reference models and supply chain effectiveness assessment.
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Discussion Activity:
Analyze the contribution of seven significant companies towards process optimization and discuss future sustainable process optimization prospects.
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Supply Chain Business Process Management:
Methodology for defining, designing, documenting, and improving processes.
Benefits include reduced costs, fewer errors, and increased customer satisfaction.
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Potential Benefits of Supply Chain Business Process Management:
Improved performance visibility, process simplification, risk management, higher productivity.
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SCOR Model: Levels of description including top-level, configuration, process element, and implementation levels.
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Process Chain Approach:
Map and analyze supply chain processes for effective combination and coordination of activities.
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Process Chain Analysis:
Description includes input/output variables, resources, structures, and control mechanisms for assessing performance.
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Exercise: Analyze Credit Quote Creation Process based on defined parameters and collaborative discussions.
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Process Chain Analysis Continued:
Use examples from BPMN figures for deeper insights.
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Detailed Process Chain for Credit Quote Creation: Discuss various stages, inputs, outputs, and resources involved.
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Discussion on effectiveness and efficiency of the identified process chain, assessing potential improvements.
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Member of NW University of Applied Sciences and Arts
Focus: Digital Transformation of Supply Chain Processes
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Learning Goals:
Understanding of digital transformation stages and related technologies.
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Four Stages of Digital Transformation:
Functional scope
Process scope and internal integration
Inter-company integration
Integrated collaboration and optimization.
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Stage 1 Overview: Focuses on integrating internal production systems.
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Information Systems for Operational Planning: Key systems like MRP and MRP II and their functionalities.
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Stage 2 Overview: Enhancements in internal planning and warehousing processes with minimal inter-company data exchange.
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Stage 3 Overview: Implementing inter-company data exchanges to optimize planning and resource availability.
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Stage 4 Overview: Complete integration of processes within companies and partners, optimizing collaboration.
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APS System Matrix: Framework for collaborative and strategic planning across operations.
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ECR Components Overview: How to optimize supply chain demands and manage supplier relationships effectively.
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Change in Weighting from Stage 3 to 4: Discuss the shifts in focus and balance across different networks.
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Discussion Activities to evaluate the practical implications of digital transformations.
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Weighting Changes in Networks: Analyzing the structural transitions during digital transformation stages.
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Member of NW University of Applied Sciences and Arts
Focus: Adaptive Supply Chains
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Learning Goals:
Understanding adaptive supply chain characteristics and implementation approaches.
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Adaptive Supply Chains: Definition and relevance in competitive environments, requiring process revisions and enhancements.
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Characteristics of Adaptive Supply Chains:
Event-driven focus, self-regulating processes, and corporate integration.
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Derivation Definition: Emphasis on integrated, event-driven networks supported by IT for process improvements.
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Importance of Information Technology in Virtual Enterprises and its applications in supply chain integration.
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Process Implementation: Four Steps for transforming existing supply chains into adaptive networks.
Visibility
Community
Collaboration
Adaptability.
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Implementation Step 1: Achieving visibility through information exchange and standard processes.
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Step 2: Community engagement via automated processes and control measures.
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Member of NW University of Applied Sciences and Arts
Focus: Business Process Reengineering
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Learning Goals:
Definitions and core concepts regarding Business Process Reengineering.
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Definition of Business Process Reengineering: Overview and fundamental principles based on performance improvements.
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Four “Rs” of Business Process Reengineering:
Renewing
Revitalizing
Reframing
Restructuring.
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Discussion on supply chain reengineering examples and implications for operational practices.
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Focus: Sales & Operations Planning (S&OP) and its importance in supply-demand balancing.
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Learning Goals:
Understanding S&OP processes and their roles in organizational operation.
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Definition of S&OP: Comprehensive overview of integrated tactical planning across business functions.
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High-Level S&OP Process Flow: Overview with detailed stages including forecasting and reconciliation analysis.
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Additional Insights on S&OP Implementation and processes involved.
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Sample S&OP Meeting Agenda: Key topics and considerations for discussion in meetings.
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S&OP Phases: Detailed descriptions of reviews (product, demand, supply, finance) explained.
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Deep Dive on S&OP: Additional phases and their contributions to organizational planning.
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Benefits of Effective S&OP: Quantifiable and qualitative improvements resulting from structured processes.
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Discussion: Identifying critical success factors for effective S&OP execution.
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Member of NW University of Applied Sciences and Arts
Focus: Supply Chain Risk Management
Page 69
Learning Goals:
Understanding of supply chain flows and related risks, including management insights.
Page 70
Core Definitions and Terms:
Overview of supply chain processes incorporating physical, informational, financial, and knowledge processes.
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Five Flows in a Supply Chain: Outline of product, financial, information, value, and risk flows.
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In-depth Flow Definitions: Analyzing product movement, financial insights, and implications of information value and risk management.
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Discussion on General Motors' supply chain and identified risks with mitigative strategies.
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Focus: Self-study recommendations for upcoming blocks.
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Self-Study Tasks: Review lectures, complete quizzes, and prepare for upcoming content.
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Questions for Repetition: Essential questions for reinforcing learned concepts around process management.
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Key Questions for Next Block Preparation: Preparing answers for measuring supply chain performance and understanding concepts such as the bullwhip effect.
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Literature References: Comprehensive bibliography for core materials and articles used in coursework.
NoteStudied by 43 peopleNoteStudied by 14 peopleNoteStudied by 14 peopleNoteStudied by 17 peopleNoteStudied by 4 peopleNoteStudied by 230 people