Mbpfc2 - Managing Business Process Flows Anupindi Chopra...

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1 Managing Business Process Flows, 2006 Managing Business Process Flows Anupindi, Chopra, Deshmukh, VanMieghem and Zemel, Prentice Hall, 2006
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2 Managing Business Process Flows, 2006 Chapter 2: Operations Strategy and Management Managing Business Process Flows Anupindi, Chopra, Deshmukh, VanMieghem and Zemel, Prentice Hall, 1999
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3 Managing Business Process Flows, 2006 Firms compete on product attributes. This requires process capabilities. Price (Cost) P Quality Q Customer service Product quality Time T Rapid, reliable delivery New product development Variety V Degree of customization “order winners” To deliver we need “capabilities”
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Process View of Organizations Managing Business Process Flows , Anupindi, Chopra, Deshmukh, Van Mieghem & Zemel, 2006, Upper Saddle River, NJ: Prentice Hall “A process is a transformation of inputs into outputs.” (p. 4) Process structure has 5 elements Inputs Outputs Goods Services Labor & Capital Information structure Network of Activities and Buffers Flow units (customers, data, material, cash, etc.) Resources Process Management
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5 Managing Business Process Flows, 2006 Process Capabilities are affected by Process Structure and Management Process structure or architecture: (1) inputs and outputs (2) flow unit (“jobs”) (3) network of activities & buffers » quantity & location » precedence relationships (4) resource allocation » capacity & throughput (5) information structure Operations Planning & Control Organization
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Organization Overview SUPPORT FUNCTIONS Accounting PRIMARY FUNCTIONS Purchasing Marketing / Distribution Operations SYSTEMS Payment Hiring INPUTS OUTPUTS PERFORMANCE MEASURES
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7 Managing Business Process Flows, 2006 What defines a “good process”? Performance: Financial Measures Absolute measures: revenues, costs, operating income, net income Net Present Value (NPV) = Relative measures: ROI, ROE ROA = Survival measure: cash flow Assets Total Average Tax EBIT - ( 29 = + T t t t r C 0 1
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8 Managing Business Process Flows, 2006 Classification of Processes by process architecture Project Job Shop Batch Line Flow Continuous Flow Job Shop Flow Shop
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9 Managing Business Process Flows, 2006 Characteristics of Processes: Job Shop vs. Batch vs. Flow Shop Type of Process Product Volume
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