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Process design - Coggle Diagram
Process design
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• Processes
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Definition: • A process
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fit with structures, relationships, and control.
• The value chain analyzes an organization's activities, which are also part of processes.
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- Harmon’s process-strategy matrix
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Strategies are to:
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Strategies aim to:
Reduce costs for simple, non-critical processes
•For standardized tasks, off-the-shelf solutions optimize costs. Recommended for desktop refresh.
Payroll system integration:
Recommend standard off-the-shelf software. Automating a simple process via a standard solution minimizes costs and issues.
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Improve performance for Complex, critical processes
•For tasks with unique requirements, custom systems optimize functionality and control. Recommended for payroll integration and private banking.
Desktop update:
Recommend outsourcing to experts.Complex process best handled by specialists to ensure efficiency.
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Rationale: Low strategic value but high potential complexity, especially maintenance. Specialists can provide expertise, economies of scale and free up internal IT resources.
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Private banking service:
Recommend bespoke development. Customizedoffering for growth requires tailored solutions. Justifies investment in custom systems.
EcoLite:
For outsourcing
• Saves $1,000-$1,750 per car from lower costs and overhead
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Leveraging:
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Through:
•Reengineering complex, core processes
Focusing on core, strategic processes
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3.1. Re-engineering
- Business process re-engineering (BPR)
1.1. What is BPR?
BPR = Fundamental, radical changes to processes for:
• Dramatic improvements in:
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BPR should achieve:
• Quantum leaps in performance
• Starts by questioning why current processes exist
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In summary, BPR aims to fundamentally rethink and redesign processes for dramatic improvements in performance metrics like cost, quality and speed. It focuses on processes rather than functions and assumes nothing, starting with a clean slate.
SFS
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could improve its supply chain using BPR which involves:
•Fundamentally rethinking and redesigning processes for:
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For example, instead of stores ordering through the warehouse:
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For BPR to work, SFS needs:
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BPR aims for radical efficiency gains and cost savings by fundamentally redesigning processes, not just automating existing ones. Applying these principles to SFS's supply chain could dramatically improve performance.
3.2. Simplification
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• Harmon says modeling all sub-processes then challenging each allows removing duplicated/unneeded activities
• This eliminates complexity, improving processes
• Judgment of subtle activity differences is needed when simplifying
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In sum, feasibility studies determine whether:
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For process changes to proceed, they must be:
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- A process redesign methodology
5.1. Benefits of having a methodology:
•Provides discipline to stay focused
•Ensures buy-in from staff
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