Process Management

Process Management - Meaning

Process Management is the selection of the

Inputs, Operations, Workflows and Methods
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that transform inputs into outputs.

Major Process Decisions:

Process Choice
Vertical Integration
Resource Flexibility
Customer Involvement
2 Capital Intensity
 Major Process Decisions
PC determines whether resources are organized
around products or process to implement flow
strategy. Depends on the volumes and degree of
customization.
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VI signifies the degree to which a firm’s own

production system or service facility handles the
extent of supply chain.
RF indicates the ease with which employees and
equipment can handle a wide variety of products,
output levels, duties and functions.
CI reflects the ways in which customers become part
of the production process and the extent of their
participation.
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Capital Intensity denotes the relative cost of
equipment Vs human skills in a production process.
 Types of Process
High
Flexible Flows

Project
Process
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Intermediate
Job
Customization

Process Flows

Batch
Process

Line Line Flows

Process

Continuous
Process

4 Low High
Volume
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5
Exploration

Development

Outsourced
Production

Core Operations

Forward Integration
Pipeline / Shipping

Backward Integration Refining

Pipeline / Terminal
Operation
Vertical Integration

Trucking
(Ex:Petroleum Industry Value Chain)

Retailing
 Other Process Decisions

Resource Flexibility
Workforce Flexibility
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Equipment Flexibility
Customer Involvement
Self-Service
Self-Design of Product
Time & Location
Capital Intensity
Fixed Automation
6 Flexible Automation
 Designing Processes

Process Reengineering
Critical Processes
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Strong Leadership
Cross-Functional Teams
Information Technology
Clean-Slate Philosophy
Process Analysis

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 Designing Process….Contd.

Process Improvement is the systematic

study of the flows and activities of each
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process to improve it
Process Flow Diagram traces the flow of
Information, Customers, Employees, Equipment
or Materials through a process.

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 Designing Process….Contd.
Process Chart is an organized way of
recording all the activities performed by a
person, by a machine, at a workstation, with a
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customer, or on materials.
These activities can be grouped into five
categories:
Operation
Transportation
Inspection
Delay
Storage
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Question Time