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BUSINESS PROCESS DEVELOPMENT

Neville-Clarke Indonesia Rev 0.1 Apr 2001

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OBJECTIVE
To develop a Business Process that is customize to the company capability and capacity in meeting the requirements of the customers and ISO 9000 QMS Standard.

RESULTING TASKS: A draft Business Process approved by the management as a baseline for the development of the Quality Management System.
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TRAINING PROGRAM
Introduction to Business Process Developing the Business Process Mapping ISO 9000 Identifying key processes

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INTRODUCTION TO BUSINESS PROCESS


Business Process Definition Business Process Benefits Overall Business Process Methodology Categories of Business Process

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BUSINESS PROCESS DEFINITION


An overview of the key processes or functions and their interrelationship which reflect how an organization conducts its business

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BENEFITS OF BUSINESS PROCESS APPROACH


PROCESS IDENTIFICATION & CLARIFICATION

PROCESS SIMPLIFICATION & MODIFICATION

PROCESS IMPROVEMENT & UPGRADE

QUALITY & BUSINESS IMPROVEMENT


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OVERALL METHODOLOGY
Define your Business Process Understand the ISO 9000 Requirements Related the Requirements to your Business Process Identify Quality System Structure Develop Policy/Procedures to meet Business need in relation to Standard Implement, Review and Improve
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HOW BEST TO PRESENT A BUSINESS PROCESS?


By FLOWCHART WHAT IS A FLOWCHART? A graphical representation of how the different processes interface with each other A picture tells a thousand words
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WHAT ARE THE DIFFERENT TYPES OF FLOWCHART?


1. Function Flowchart 2. Process Flowchart 3. Activity Flowchart

4. Step Flowchart

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4 KEY CATEGORIES OF BUSINESS PROCESS


Core processes Planning Processes Support Processes Review and Improvement Processes

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CORE PROCESSES
Core processes are normally driven by Customer requirements with an ultimate output of product or service delivery to the customer.
Examples of groups of such processes include: Sales and Contract Handing Order Processing and Delivery Manufacture and Delivery Installation and Maintenance Project Management and project Engineering

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PLANNING PROCESSES
Planning processes are generally driven by business plans and objectives.

Examples of groups of such processes include: Product/Service Design Resource Planning Evaluation and Planning

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SUPPORT PROCESSES
Support processes are initiated either by core processes or Planning processes with outputs directed generally at supporting core processes.
Examples of groups of such processes include: Production Support Technical Support Materials Control Operational Support
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REVIEW AND IMPROVEMENT PROCESSES


Review and Improvement processes generally take the outputs from the various elements of the business process and initiate improvement as appropriate.
Examples of groups of such processes include: Quality System Documentation Control

Quality Record Management


Customer Service Internal Improvement Program.
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DEVELOPING THE BUSINESS PROCESS OVERVIEW


1. Determine the various Process Groups(s)

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BUSINESS PROCESS DEVELOPMENT TABLE


C CORE PROCESS I S SUPPORT PROCESS I P PLANNING PROCESS I R REVIEW & IMPROVEMENT

C, S, P, R = Process Code I = Interface


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DEVELOPING THE BUSINESS PROCESS OVERVIEW


1. Determine the various Process Groups(s) 2. Place Core Process groups(s) in sequence between Customer Requirement and Customer

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DEVELOPING THE BUSINESS PROCESS OVERVIEW


1. Determine the various Process Group(s) 2. Place Core Process group(s) in sequence between Customer Requirement and Customer 3. Place Planning Group(s) below Business Plans

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DEVELOPING THE BUSINESS PROCESS OVERVIEW


1. Determine the various Process Groups(s) 2. Place Core Process groups(s) in sequence between Customer Requirement and Customer 3. Place Planning Group(s) below Business Plans 4. Place Support Groups between/below the Core and Planning Groups
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DEVELOPING THE BUSINESS PROCESS OVERVIEW


4. Place Support Groups between/below the Core and Planning Groups 5. Identify key interfaces between Groups of Process by following Business Plan then Customer Requirement flows

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DEVELOPING THE BUSINESS PROCESS OVERVIEW


5. Identify key interfaces between Groups of Process by following Business Plan then Customer Requirement flows 6. Add Review and Improvement and close the loop 7. Identify the process owner for each of the process groups.
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Customer Requirements

TYPICAL DESIGN / MANUFACTURING ORGANIZATION


Business Plans/Objectives Product Design and Resource Planning

Sales

Production and Material Planning

Materials Control

Manufacturing

Production Support

Customer Review and Improvement


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TYPICAL SERVICE ORGANIZATION


Customer Requirement Business Plans/Objectives Evaluation and Planning

Sales/Contracts

Technical Support Operational Customer


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Review and Improvement

Material Control

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MATERIALS CONTROL CONTEXT DIAGRAM


Evaluation and Planning MATERIAL CONTROL Vendor Evaluation Goods Receipt Stock Issue of Parts Operational
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Purchasing

Return of Parts

EXERCISE
Divide into groups as assigned by the tutor and develop a Business Process Overview of your company. Composition of each group shall include members from the different department. Be prepared to give presentation of the result explaining how that organization conducts its business.

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MAPPING ISO 9000 INTO THE BUSINESS PROCESS


OBJECTIVE To identify where the particular paragraphs of the Standard have an impact on your business

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TYPICAL DESIGN / MANUFACTURING ORGANIZATION


Customer Requirements
4.3

Business Plans/Objectives
6, 7.3 7.1, 7.5

Sales

Production and Material Planning


7.4, 7.5 7.5

Product Design and Resource Planning


6, 7.6

Materials Control

Manufacturing

Production Support

Customer

4, 5, 8

Review an Improvement
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DEVELOPING QUALITY SYSTEM STRUCTURE


1. Develop Business Process Overview 2. Map ISO 9000 into Business Process 3. Identify individual processes within Groups 4. Cross-reference ISO 9000 requirements to individual processes

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EXERCISE
Using the Business Process already selected by each group: a. Review and consolidate initial solution b. Map ISO 9001 into the Business Process Overview

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CONTEXT DIAGRAM IDENTIFICATION TABLE


PROCESS GROUP TITLE : ____________________ ISO ELEMENT : ____________

S/NO PROCESSES / ACTIVITIES TITLE

INPUT

OUTPUT

ISO ELEMENT

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EXAMPLE CONTEXT DIAGRAM IDENTIFICATION TABLE


PROCESS GROUP TITLE : MATERIAL CONTROL ISO ELEMENT : 7.4, 7.5
S/NO

PROCESSES / ACTIVITIES TITLE

INPUT

OUTPUT

ISO ELEMENT

01.

Purchasing

PR

PO

7.4.2

02.

Vendor Evaluation

NC Report Vendor QC Report Performance Report PO, DO MR GRS GRN

7.4.1

03.

Goods Receipt

04.
05.

Issue of Parts
Return of Parts

GIS
GRS

7.4.3 7.5.5 7.5.5 7.5.5

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HOMEWORK
Process Owner to co-ordinate the identification of the processes involved in the effectiveness of the process groups. Record the processes in the Context Diagram Identification Table.

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