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Topic 5

Business strategies
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26 views

Topic 5

Business strategies
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© © All Rights Reserved
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TOPIC 5 – WORK PROCESSES

Terms and meanings:


Process reengineering – it is the systematic and complete analysis of work processes and the
design of new and better ones.
Work process – a related group of tasks that together create a result of value for the customer.
Workflow – it is the way work moves from one point to another in manufacturing or service
delivery.
Process value analysis – it is a technique where core processes are identified carefully evaluated
for their performance contributions,
Work Process Analysis
The tasks in a work process are performed to turn resource inputs to goods or services
for customers.
These are the keywords that are noted in the definition of work process:
1. Group – tasks are viewed as part of a group rather than in isolation.
2. Together – everyone must share a common goal.
3. Result – the focus is on what is accomplished, not on activities.
4. Customer – processes serve customers, and their perspectives are the one that
really count.

The concept of workflow is central to the understanding of processes. The various parts
of a work process must all be completed to achieve the desired results, and they must be
typically be completed in a given order. An important starting point for a reengineering effort is
to diagram or map these workflows as they actually take place. Then each step can be
systematically analyzed to determine whether it is adding value, to consider ways of eliminating
or combining steps, and to find ways to use technology to improve efficiency.
Process Reengineering
With the mission, objectives and strategies of the organization, business process
reengineering can be used to regularly assess and fine-tune work processes to ensure that they
directly add value to operations. Core processes are identified and carefully evaluated for their
performance contributions and this is called process value analysis.
Steps if Process Value Analysis:
1. Identify the core processes.
2. Map the core processes with respect to workflows.
3. Evaluate all core process tasks.
4. Search for ways to eliminate unnecessary tasks or work.
5. Search for ways to eliminate delays, errors and misunderstandings.
6. Search for efficiencies in how work is shared and transferred among people and
departments.

Process-driven organizations
According to Michael Hammer, a business consultant, the center to process
reengineering are the customers, teamwork and efficiency. This is what he says about the
process-driven organization : “ Its intrinsic customer focus and its commitment to outcome
measurement make it vigilant and proactive in perceiving the need for change; the process
owner, freed from other responsibilities and wielding the power of process design, is an
institutionalized agent of change; employees who have appreciation of customers and who are
measured on outcomes are flexible and adaptable.”
The essence of process reengineering is to locate control for processes with an
identifiable group of people, and to focus each person and the entire system on meeting
customer needs and expectations. It tries to eliminate duplication of works and systems
bottlenecks to reduce costs, increase efficiency, and build capacity for change.

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