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Short Notes Chapter 9

Chapter 9 defines a process as a series of activities transforming inputs into outputs, organized hierarchically within business units. It discusses types of process performance measures, including end of process, functional boundaries, major sub-products, and variances, as well as mapping tools like process maps, activity charts, and task analysis to visualize and improve processes. Each tool has specific benefits, such as identifying organizational gaps or streamlining interactions.

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3 views3 pages

Short Notes Chapter 9

Chapter 9 defines a process as a series of activities transforming inputs into outputs, organized hierarchically within business units. It discusses types of process performance measures, including end of process, functional boundaries, major sub-products, and variances, as well as mapping tools like process maps, activity charts, and task analysis to visualize and improve processes. Each tool has specific benefits, such as identifying organizational gaps or streamlining interactions.

Uploaded by

birukteklu
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Chapter 9

Definition of a Process A process is a series of activities that transform an

input into an output—either a product or a service. Examples include

completing a sales order, developing a sales report, or fabricating a radio.

Functional Levels of a Process Processes are organized hierarchically within

business units:

 Business Units: Functional levels such as Sales & Marketing, Operations,

or Human Resources.

 Process: Specific activities within a unit (e.g., market research or direct

sales).

 Jobs: Each process contains specific jobs.

 Duties: Each job is composed of one or more duties (e.g., customer

order completion).

 Tasks: Each duty is composed of specific tasks (e.g., greeting a

customer, verifying stock, completing payment).

Types of Process Performance Measures Process performance measures act

as a bridge between high-level functional measures and individual job

outcomes. There are four main types:

 End of Process: These focus on the final product or service delivered.

They are typically derived from the requirements of the next customer in

the value chain.


 Functional Boundaries: These measure the hand-offs between

departments. They are used to identify and reduce "silos" or friction

where work moves from one functional area to another.

 Major Sub-products: These measure the quality and timeliness of

intermediate outputs produced within a larger process.

 Variances: These measures identify deviations from the standard

process, helping to pinpoint where errors or inefficiencies occur.

Mapping Tools for Developing Measures Three primary tools are used to

visualize processes and identify where performance should be measured:

 Process Maps: High-level graphic illustrations of how a process flows

across an organization. They are excellent for identifying functional

boundaries and "white spaces" where delays often occur.

 Activity Charts: Provide explicit, detailed information about a process,

including every system, vendor, and person the process touches. They

are invaluable for identifying and reducing unnecessary "boundary

crossings" within an organization.

 Task Analysis: A comprehensive list of task-level details showing

exactly how work flows within a specific duty. It uses standardized

symbols to illustrate the sequence of work.

Summary of Tool Benefits

 Process Maps: Best for identifying high-level flow and organizational

gaps.
 Activity Charts: Best for detailing complex interactions and

streamlining unit organization.

 Task Analysis: Best for standardizing individual work steps and training.

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