. There will be no calculations to be made, however I may ask for formulas/equations (e.g.

process measurements: effectiveness, productivity VA time). Be ready to answer questions about

terms such as line balancing, benchmarking, score model, process typology and classification,
bullwhip effect, process mapping, relations mapping

PROCESS TYPES:
Core processes - Significant commercial impact deliver company’s goals add value to exter.
customers

Auxiliary processes - support core processes to be effective add value to internal customers

Management processes - plan, measure, monitor, control biz activities operational, financial
regulatory and legal requirements

Process management is:

1. a systematic approach to ensure effective business processes.
2. a methodology to align business processes with strategic goals.
3. management addresses repetitive processes carried out on a regular basis.
4. considers individual processes as a whole to improve organization efficiency.
5. analyzes current systems, spots bottlenecks and identifies areas for improvement.

BENEFITS OF BUSINESS PM

1. Streamlined Processes Restructuring of tangled operations into smooth & agile workflows.
2. Increased Productivity Proper use of resources and capital. Improved processess translate to
improved working conditions and overall productivity.
3. Minimized Risks Clear Roles & Responsibilities demand higher accountability, hence lower risks
due to human error and reduced inefficiencies.
4. Reduced Costs Identification of inefficiencies to be improved. Tracking the use of resources.
5. Customer focus Aligning processes with the needs of customers.

Process Typology: VOLUME produced

VARIETY of product/service
VARIATION in demand
VISIBILITY to customers

Processes Types vs Volume-Variety

Volume for mass production, not specialized just mass

Variety for special products, one of a kind

Benchmarking - process of identifying, acknowledging and adopting distinguished practices within

the same organisation or from other companies of the same business line or industry in order to
improve efficiency
Designing - conceiving the appearance, arrangement, sequence of activities in the process before
construction, before set-up considering overall nature and shape of the process by reflecting on
volume and variety characteristics the design must deliver a solution that will work in practice
PROCESS TYPES – MANUFACUTRING

PROCESS TYPES- SERVICES

Product technology – embeded in the product or service that creates its functions/ value
Process technology – machines, or devices that help create the product directly or facilitate creation
(eg. IT technologies that control production processes)

- general purpose technologies can be universally used to create wide range of products (angle
grinder, drill, lathe),

- dedicated technologies of much narrower range of processing requirements (roller mill, roller
press)

Technology dimensions:

Automation maximal human intervention in low volume and high variety process e.g. brain surgery
vs. minimal human intervention in high volume low variety processes e.g. oil refining process

Scale / scalability Low scale technologies + can be multiplied to give high volume, + some can be
deactivated if demand drops , + breakdowns affect only part of the volume, High scale technologies -
require high volumes, + offer low costs, - inflexible, nul capacity if breaks down.

Coupling Connectivity between technologies when designing the flow. Tight coupling usually gives
fast process throughput, the flow is simple and predictable , no accumulation of items between
stages. A failure in one part of the tightly interconnected system affects the whole system.

How to make a job design more attractive?

 Job enrichment
 Job enlargement
 Job rotation
 Empowerment
 Team-working

BULLWHIP EFFECT : The bullwhip effect occurs when small fluctuations in retail demand cause
fluctuations in wholesale, distributor and manufacturer demand, resulting in inefficiency and
disorganization throughout the supply chain.

Main causes:

Promotional sales

Inflated orders

Demand forecast

Long cycle times

Order batching

Consequences:

Excess / fluctuating inventories

Shortages / stockouts
Inefficient allocation of resources

Higher manufacturing / transportation costs

Mistrust between supply chain partners

SCOR – Supply Chain Operations Reference -It provides a standardized and integrated approach
for analyzing and improving supply chain processes. The SCOR model also includes performance
metrics and best practices associated with each process, allowing organizations to measure their
supply chain performance and identify areas for improvement.

Steps:

1. Planning
2. Sourcing
3. Making
4. Delivering
5. Returning

BENEFITS OF THE SCOR MODEL :

1. Improved understanding of processes and factors

2. Improved performance of the supply chain

3. Increased customer satisfaction and retention

4. Decreased capital requirements

5. Improved profitability and ROIC

1Steps of process optimization:

1:Identify The Processes That Need Optimization

2: Map Out The Current Processes

3: Analyze and Prioritize Improvements

4: Redesign The Processes

5: Test The New Processes

6: Implement and Monitor The New Processes

7: Continuously Improve

PROCESS MAPPING

PURPOSE:

• understand the elements of the process

• define borderlines

• provide a reference point to enable measuring the improvements

• Identify weak points, contradicting actions, uselessly repeated actions

• Identify opportunities for improvement or simplification

• Education of the involved individuals

• Present requirements in terms of supplier-customer relations internally and externally

PROCEDURE:

1. Identify key participants thru RELATIONS map

2. Develop a detailed PROCESS map to represent activities

RELATIONS MAPPING: Advanced diagram showing key units engaged in the business process and
relations between the units such as flow of materials, intangibles and funds

STEPS of relations mapping

1) Draw rectangles to symbolize process participants

2) Draw arrows linking the rectangles to show the flows of information, materials, documents,
money

3) After completion of step 2 remove all rectangles not linked

Line balancing is a technique used in process management to optimize the efficiency and productivity
of an assembly line or production process. It involves distributing the workload evenly across the
various workstations or tasks within a production line to minimize idle time and maximize
throughput.