SCM 300 – MODULE 09
Module 9: Business Processes
Custom, or make-to-order, goods and services are generally produced and delivered as one-of-a-
kind or in small quantities, and are designed to meet specific customers’ specifications.
Option, or assemble-to-order, goods and services are configurations of standard parts,
subassemblies, or services that can be selected by customers from a limited set.
Standard, or make-to-stock, goods and services are made according to a fixed design, and the
customer has no options from which to choose.
Goals in Process Design. Impact of good/bad design
The goal of process design is to create the right combination of equipment, work methods, and
environment to produce and deliver goods and services that satisfy both internal and external
Process design can have a significant impact on cost (and hence
profitability), flexibility (the ability to produce the right types and amounts of products as customer
demand or preferences change), and the quality of the output.
Six Activities of Process Design
Define the purpose and objectives of the process.
Create a detailed process or value stream map that describes how the process is currently
performed (sometimes called a current state or baseline map). Of course, if you are designing and
entirely new process, this step is skipped.
Evaluate alternate process designs. That is, create process or value stream maps (sometimes
called future state maps) that describe how the process can best achieve customer and
Identify and define appropriate performance measures for the process.
Select the appropriate equipment and technology.
Develop and implementation plan to introduce the new or revised process design.
developing process performance criteria and standards to monitor and control the process.
Identify Process Objectives
What is the process intended to accomplish?
What are the critical customer and organizational requirements that must be achieved?
Is the process designed for high levels of efficiency, flexibility, or fast response?
Process Map and Process Map Symbols
A process map (flowchart) describes the sequence of all process activities and tasks necessary to
create and deliver a desired output or outcome.
A rectangle denotes a task or work activity
A triangle indicates writing
An oval denotes the “start” or “end” of the process and defines the process
boundaries, also called a terminator
An arrow denotes movement, transfer, or flow to the next task or activity
A double-headed arrow denotes an input or arrival into a process
A diamond denotes a decision that might result in taking alternate paths
Line of Visibility