A process is a group of activities that takes in one or more kinds of input and creates output that is of value. Processes are the arteries of enterprises. A process model describes the inputs, outputs, procedures, standards, and expected results. Every enterprise has a set of processes through which it delivers its products and/or services to either internal or external customers, or both. The performance of the enterprise depends upon how well processes fit together effectively and efficiently - that means how well they are architected.
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An enterprise's infrastructure consists of a set of
processes, functions, facilities, and equipment.
In
order for the enterprise to create the most value, the
infrastructure must be "well architected." "Well
architected" means that there is no unnecessary duplication
or redundancy of assets or effort, and that the activities
fit together systematically.
Architecting the infrastructure...
Architecting the infrastructure begins by developing the "enterprise process model." This model describes the highest level activities within the enterprise that deliver value to either external or internal customers, or both. If an activity does not deliver value, then it is not part of the enterprise process model.
The "value chain" is the set of all activities that earn and add value to materials and supplies, resulting in finished products and/or services. A finished product and/or service from one enterprise, may be raw material or supplies, or a subassembly to another.
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Management
must ensure that not only do processes in the chain add
value, but that they do so in an effective and efficient
manner, thus increasing the value
earned.
A
process is the intersection of people and products and/or
services. The people include external and internal
suppliers who provide the inputs, the employees who execute
the procedures, and internal and external customers to whom
the resulting outputs are delivered. In effect, the
employees apply their knowledge and skills to the
procedures to the benefit of the customers. Management must
ensure that the "tribal knowledge" in the heads of the
employees of how the processes really work is adequately
documented, or else they can be held
hostage.
The more
tightly coupled the processes are in the value chain, the
more sustainable the enterprise will be, provided that
changes in strategy can be accommodated.
As
changes in strategy cause market entrances and exits,
product and/or service introductions and withdrawals, and
organizational changes over time, the infrastructure
becomes unarchitected. If so, value leaks and performance
degrades, and consequently the infrastructure has to be
reengineered.
Changes
in strategy may require an infrastructure upgrade or
replacement, as is common when new systems are
implemented.
Successful
franchise business system operators are grand masters at
designing architected infrastructures. The tightness of the
infrastructure is a distinguishing factor from "mom and
pop" enterprises, especially in the fast food
industry.
In fast
food franchises, the branding blends with the service
delivery. There is a tight fit between the menu items
offered and the equipment used to prepare them. There is no
redundant equipment, and only items that can be prepared
using the installed equipment can be offered for sale.
Facilities design is standardized, not just for
effectiveness and efficiency, but also to make the
experience easier for employees, customers, and
suppliers.
For
example, in a hypothetical fast food establishment, fries
are on the left and shakes are on the right. However, only
chocolate and vanilla shakes are offered, because there is
no equipment to prepare fruit.
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From
macro to micro...
An
enterprise has tens, if not hundreds, if not thousands of
processes. The "enterprise process model" represents the
highest level "macro" processes.
The
model starts with just three macro processes: planning and
policy development, deployment, and performance
measurement. The deployment process subdivides into
research and development, and sales and production micro
processes.
Macro
processes cross functions and decompose into micro
processes within functions. These terms are relative
because a micro process at the enterprise level, is a macro
process at the function level. Because functions decompose
into subfunctions, there are "ladders" of macro and micro
processes from the top of the enterprise down to the
simplest activities on the "floor."
The
terms "macro" and "micro" are common in engineering-related
industries, such as information technology and
manufacturing. For example, Microsoft Corporation began as
a developer of software for microprocessors, when mainframe
computers were considered to be macroprocessors. Microchip
Technology, Inc. is a manufacturer of small electronic
controllers used in cars and electronic
devices.
For
example, the sales macro process embraces everything that
is required to deliver a product to a customer, including
the supporting services. The sales macro process crosses
three functions: marketing, sales, and service. However,
each function has its own set of distinct micro processes.
The micro processes within the sales function itself are
just one set in the entire sales macro process because the
marketing and service functions are also heavily
involved.
For
example, the marketing function deploys processes to create
awareness of products and/or services, whereas the sales
function deploys processes to close a transaction with a
customer. Although micro processes to the enterprise, the
macro processes within the marketing function include
promotion, pricing, packaging, and placement, and are very
important to generating business that can ultimately be
closed by people in the sales function.
For
example, the production macro process embraces everything
that is required to transform raw materials into finished
products. The inputs are raw materials and supplies; the
outputs are either end-products, or subassemblies, which
become inputs to further processes
"downstream."
The
production macro process crosses three functions:
procurement, manufacturing, and distribution. Although
micro processes to the enterprise, the macro processes
within the manufacturing function include fabrication,
assembly, and packaging. The fabrication macro process
decomposes into cutting, molding, machining, and welding
micro processes.
Process
mapping...
Without
an overall map, it is very easy for the processes to become
fragmented and fit together haphazardly, especially when
changes are made on an "ad-hoc" basis to accommodate
short-term needs and "quick fixes."
To
architect the infrastructure effectively and efficiently,
the processes in the value chain should be mapped
periodically to determine where there are opportunities to
improve workflows, or to eliminate duplication and
redundancy altogether.
"Reengineering"
is the process of improving the effectiveness and
efficiency of infrastructure, and transforming it from
unarchitected to architected.
When architecting an infrastructure, processes should be
designed so that their results are predictable and
measurable, and are trainable and repeatable. Where
possible, closed systems should be developed where feedback
loops enable actual results to be compared to planned.
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Architecting
infrastructures is an enterpriship (entrepreneurship,
leadership, and management) competency that is essential to
earning value.
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From Nigel A.L. Brooks
http://www.nigelalbrooks.com
Article Source:
http://EzineArticles.com/?expert=Nigel_Brooks
http://www.scribd.com/doc/31865761/Architecting-Processes-From-Beginning-to-End
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