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Summary Chapter 4 - Introduction to Operations and Supply Chain Management (Bozarth)
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Summary of 5 pages for the course Supply Chain Management at UM
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4.1 Business Processes- business process: set of logically related tasks / activities performed to achieve a defined business
outcome
- primary process: addressing the main value-adding activities of an organization
- support process: necessary, but not value-adding activities
- development process: processes, that improve the performance of primary / support processes
- often: business processes cut across functions / organizations g developing superior business
processes therefore requires a cross-functional and cross-organizational perspective
I m p r o v i n g B u s i n e s s Pr o c e s s e s
- improving business processes is at the very core of operations / s.c. management
- even if an organization does not feel a need to improve its business processes, it may be forced to due
to competitive pressures
4.2 Mapping Business Processes
mapping: understanding the business process by developing graphic representations of the
organizational relationship / activities that make up a business process to be ultimately able to
effectively manage and improve them
- creates a common understanding of the content of the process
- defines the boundaries of the process
- provides a baseline against which to measure the impact of improvement efforts
Pr o c e s s M a p s
- process map: identifies the specific activities that make up the information / physical / monetary flow of
a process (g Figure 1)
- because of the level of detail required, process flowcharts can quickly become overly complex; some
useful rules for maintaining the focus include:
1) identifying the entity that will serve as the focal point
2) identifying clear boundaries and starting / ending points
3) keeping it simple
- important: document the process as it is and not how people remember it
- 31 - Jannis Mertens
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