business bpsm

Session 1
Introduction to Business Process

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Session 1
Important Perspectives of Business
Business Functions and its links
What is a business process?
Business Process features
Three basic logics of a business process
Business Process – Supply Chain Case
Some examples of Core Business Processes
Dominos example

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Perspectives of a Business
The Enterprise
Process
Perspective

Function
Perspective

Data
Perspective
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Business Functions & its links
Sales and Distribution
Sales planning
Profit planning
Forecasts

Production Planning
Demand management
Master planning
Capacity planning
MRP

Customer order processing Shipping, billing, transport

Order
- Creation
- Release
- Confirmation
Shop floor control
Capacity leveling
Process planning

Materials Management
Direct requisition
Purchasing
Inventory management
Goods receipt
Material valuation
Invoice verification
Warehouse management

Quality Management
Lot inspection
Process charting

Preventive Maintenance
Project system

Planned repair
Emergency

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What is a BUSINESS PROCESS?
A business process is a collection of related structural activities that produce a specific outcome for a particular customer.
It is a recipe for achieving a commercial result.
Each business process has inputs, method and outputs.
The inputs are a pre-requisite that must be in place before the method can be put into practice.
When the method is applied to the inputs, then certain outputs will be created.

A business process can be part of a larger, encompassing process and can include other business processes that have to be included in its method.
A business process can be thought of as a cookbook for running a business; "Answer the phone", "place an order", "produce an invoice" might all be examples of a Business Process.
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A Business Process Features
A business process:
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Driven by an event
Has a goal
Has specific