| I. Why are Business Processes established? | | | | business e.g. Deliver goodsc. Supporting processes - |
| In order for a business to improve its performance it | | | | these support the core processes e.g. accounting, or |
| must understand how it does business. It must | | | | induction |
| convert the "how" into defined processes, which | | | | IV. How is a Business Process established |
| must be able to have their performance measured, | | | | It is established by "mapping" what actually happens |
| and the results used to make subsequent | | | | in transforming inputs into outputs, and writing it |
| improvements. They do not usually enable a person | | | | down in a form which can be used for reference, |
| unfamiliar with a job to do that job, but they will help | | | | training or instruction. The international Quality |
| an employee, supervisor or manager understand and | | | | standard ISO 9001 requires a company to follow a |
| do their job better. | | | | process approach when managing its business, and to |
| II. What are business processes? | | | | this end creating process maps will assist. |
| A business process is a group of activities, which | | | | V. Process Maps |
| together achieve a specific goal by transforming | | | | These are the visual representation of a process. |
| inputs into outputs. e.g. Sales Order processing. It is | | | | They are diagrams which show each step, and they |
| often drawn, depicting tasks, roles, resources and | | | | represent the logic necessary to achieve the desired |
| activities to be undertaken. A business process | | | | output. By mapping we can:a. Understand what |
| consists of sub-processes, decisions and activities. A | | | | happens and who is responsibleb. Simplify the process |
| sub-process is a part of a higher level process which | | | | as requiredc. Implement or eliminate activitiesd. |
| has its own goal, owner, inputs and outputs. An | | | | Redesign and improve what happens |
| activity is part of the process which does not include | | | | VI Business Process Management |
| any decision making, such as "Answer the phone", or | | | | This refers to activities performed by businesses to |
| Produce an invoice". | | | | optimize and adapt their processes. The objective is |
| III. How are Business Processes used? | | | | to make the information required for measuring the |
| They can be thought of as a collection of recipes in a | | | | performance of the business, (its Key Performance |
| cookbook for running a business, and reaching the | | | | Indicators), as easy as possible to collect. The |
| objectives defined in the Strategic Business Plan. | | | | activities are grouped into 3 categories - design, |
| There are three types of business processes:a. | | | | execution and monitoring. Each of the activities is |
| Management processes - these run the business and | | | | carried out, practically, by the use of suitable |
| comply with legal requirements e.g. Corporate | | | | computer software, by manual collection means, or |
| governanceb. Operational processes - these deliver | | | | by a combination of both. The most cost efficient |
| the customer value, they are part of the core | | | | way will be adopted to suit the size of each business. |