Chapter_3_-_Business_Processes

Chapter_3_-_Business_Processes - BUS 370: Chapter 3 -...

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Unformatted text preview: BUS 370: Chapter 3 - Business Processes Tracy Freeman Poole College of Management North Carolina State University 1 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 Procter & Gamble Case Study P & G L a u n d r y & C le a n in g P & G P a p e r G o o d s P & G B ea u ty C a re P & G F o o d & B e v e ra g e s P & G H e a lth C a r e In v o ic e----------- ------ -- $ $ In vo ice----------- ------ -- $ $ In vo ice----------- ------ -- $ $ In vo ice----------- ------ -- $ $ In vo ice----------- ------ -- $ $ 5 d iffe r e n t b illin g p r o c e s s e s- - D iffe r e n t te r m s & c o n d itio n s- - N o v o lu m e p r ic e d is c o u n ts b a s e d o n to ta l b u s in e s s 5 d iffe r e n t s e ts o f lo g is tic s p r o c e s s e s- - S m a ll, u n c o o r d in a te d s h ip m e n ts- - In fla te d tr a n s p o r ta tio n c o s ts C u sto m e r 3 What did P&G look like from the customers perspective? Separate Purchase Orders for each P&G division Separate shipments from each division Separate invoices Separate trade promotion efforts Less than truckload (LTL) shipments clogging the dock 4 How could this mess happen to a company as well known as P&G? Each business sector was responsible for their own Profit and Loss (P&L) Each individual business sector was autonomous (run by their own management team) No common information systems Some product lines were recently purchased by P&G Each business sector had their own infrastructure (i.e., Warehouses, Customer Service, Sales Force) 5 P&G after the Streamlined Logistics Initiative Proctor & Gamble Laundry & Paper Goods Beauty Care Food & Beverages 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 Outcomes: Cleaning Business processes defined 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?...
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This note was uploaded on 02/13/2012 for the course BUS 370 taught by Professor Favre during the Fall '08 term at N.C. State.

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Chapter_3_-_Business_Processes - BUS 370: Chapter 3 -...

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