Classes_4_5_-_Business_Processes_-_Chapter_3_SP11

Classes_4_5_-_Business_Processes_-_Chapter_3_SP11 - BUS...

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BUS 370: Chapter 3 - Business Processes Mr. Donavon Favre College of Management North Carolina State University 1
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Chapter Objectives Be able to: Explain what a business process is and how the business perspective differs from a traditional functional perspective. Create process maps for a business process and use these to understand and diagnose a process. Calculate and interpret some common measures of process performance. Discuss the importance of benchmarking and distinguish between competitive benchmarking and process benchmarking. Describe the Six Sigma methodology, including the steps of the DMAIC process. Use and interpret some common continuous improvement tools. 2
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Paper Goods Beauty Care Beverages Health Care Invoice -------- --- ---- -- -- $$ Invoice -------- --- ---- -- -- $$ Invoice -------- --- ---- -- -- $$ Invoice -------- --- ---- -- -- $$ Invoice -------- --- ---- -- -- $$ 5 different billing processes -- Different terms & conditions -- No volume price discounts based on total business 5 different sets of logistics processes -- Small, uncoordinated shipments -- Inflated transportation costs Customer 3
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What did P&G look like from the customer’s perspective? Separate Purchase Orders Separate shipments from each division Separate invoices Separate trade promotion efforts Less than truckload (LTL) shipments clogging the dock 4
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How could this mess happen to a No common information systems Each business sector had their own infrastructure (i.e., Warehouses, Customer Service, Sales Force) Each individual business sector was autonomous (run by their own management team) Each business sector was responsible for their own 5
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Procter & Gamble after the Streamlined Logistics Initiative Laundry & Paper Goods Beauty Care Health Care Invoice -------- --- ---- -- -- $$ One integrated billing process -- Administrative cost savings to customers -- Volume discounts applied across all purchases One set of logistics processes -- Full-truckload quantities shipped 98% of the time, resulting in substantial transportation cost savings 6
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Business Process - Logically related sets of tasks or activities geared toward some business outcome Primary (value-added) – Customer will pay Support – Necessary, not value adding Developmental – improve processes Is there a “business process” at NC State that is messed up – What is wrong and how would you suggest it be fixed? 7
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This note was uploaded on 06/09/2011 for the course BUS 360 taught by Professor Kimbrough during the Spring '08 term at N.C. State.

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Classes_4_5_-_Business_Processes_-_Chapter_3_SP11 - BUS...

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