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Questions and Answers
What percentage of orders are lost due to paper jams?
What percentage of orders are lost due to paper jams?
How long on average does the internal mail take to deliver to the picking area?
How long on average does the internal mail take to deliver to the picking area?
What is the maximum time an order can sit in the clerk's in-box before processing?
What is the maximum time an order can sit in the clerk's in-box before processing?
What is the average time taken for a worker to pick and pack an order if the item is in stock?
What is the average time taken for a worker to pick and pack an order if the item is in stock?
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How many minutes does it take for the inspector to check an order?
How many minutes does it take for the inspector to check an order?
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What percentage of faxes are delivered to the wrong place?
What percentage of faxes are delivered to the wrong place?
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What is the total time an order sits in the internal mail before being picked up?
What is the total time an order sits in the internal mail before being picked up?
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What is the average time for the transport firm to deliver an order?
What is the average time for the transport firm to deliver an order?
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What primarily drove the need for universities to improve their enrollment process?
What primarily drove the need for universities to improve their enrollment process?
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Why is mapping business processes important for organizations?
Why is mapping business processes important for organizations?
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What is a primary characteristic of relationship maps in business process mapping?
What is a primary characteristic of relationship maps in business process mapping?
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What tends to happen to the performance level of business processes over time without intervention?
What tends to happen to the performance level of business processes over time without intervention?
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Which statement about process maps is true?
Which statement about process maps is true?
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What role does creating a baseline play in business process mapping?
What role does creating a baseline play in business process mapping?
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What should organizations focus on to ensure effective process improvement?
What should organizations focus on to ensure effective process improvement?
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What does the term 'functional areas' refer to in process improvement?
What does the term 'functional areas' refer to in process improvement?
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What is the primary responsibility of a first-tier supplier in the automotive supply chain?
What is the primary responsibility of a first-tier supplier in the automotive supply chain?
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Which of the following best describes a business process?
Which of the following best describes a business process?
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Which of the following best describes the role of second-tier suppliers?
Which of the following best describes the role of second-tier suppliers?
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What is included in the process mapping of a supply chain?
What is included in the process mapping of a supply chain?
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What is a primary process in a business environment?
What is a primary process in a business environment?
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In the findings section, how often did the OEM provide forecasts to first-tier suppliers?
In the findings section, how often did the OEM provide forecasts to first-tier suppliers?
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What do support processes primarily focus on?
What do support processes primarily focus on?
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In the context of business processes, what is a development process aimed at?
In the context of business processes, what is a development process aimed at?
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What is the significance of decision points in process mapping?
What is the significance of decision points in process mapping?
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Which of the following statements is true regarding supply chain costs?
Which of the following statements is true regarding supply chain costs?
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Which statement best describes the start point for a mapping process in a supply chain?
Which statement best describes the start point for a mapping process in a supply chain?
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What was one of the complaints received by the San Diego DC from dealers?
What was one of the complaints received by the San Diego DC from dealers?
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Which function is NOT involved in the class enrollment process described?
Which function is NOT involved in the class enrollment process described?
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What is a common issue with many business processes according to the content?
What is a common issue with many business processes according to the content?
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What should be a focus when identifying the boundaries in process mapping?
What should be a focus when identifying the boundaries in process mapping?
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What is an example of a primary process?
What is an example of a primary process?
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Study Notes
Chapter Four: Business Process
- Business processes are sets of logically related tasks or activities designed to achieve a specific business outcome.
- These outcomes can be physical, informational, or monetary.
- The business perspective on processes differs from a traditional functional perspective, focusing on the flow of information, products, and money across the supply chain.
- Corporate executives increasingly recognize the importance of effectively managing processes for a successful supply chain.
- Supply chain costs represent a majority (75%) of the total operating budget for most organizations.
- The emphasis is on delivering value to the customer.
Three Types of Business Processes
- Primary processes are the core value-adding activities, like service delivery or product manufacturing.
- Support processes are necessary but not value-adding activities, such as HR, IT, and finance.
- Development processes aim to improve the performance of both primary and support processes.
Example: Enrolling in Classes
- Students interact with multiple functions (departments, registrars, and cashiers) to register.
- The existing process can be cumbersome and inconvenient for students.
- Many universities have streamlined enrollment into a single process for speed, accuracy, and student convenience (e.g. online registration and payment).
What's Wrong With This Process?
- It's convenient for everyone except the students.
- The existing process lacks a unified perspective, potentially missing important student needs.
The Key Point
- Streamlining the enrollment process requires functional areas to see the entire student experience, not just their individual tasks.
Process Improvement
- Improving business processes is central to operations and supply chain management.
- Processes naturally degrade over time without specific efforts to maintain or improve their performance.
- Competitive pressures often force organizations to improve their business processes.
Mapping Business Processes
- Understanding a process is critical to effective management and improvement.
- Graphic representations (e.g., relationship maps and process maps) clarify organizational relationships and activities within the process.
- Mapping allows for a shared understanding of the process content (activities, results) and individual responsibilities.
- It also defines process boundaries and establishes a baseline for measuring improvement efforts.
Two Approaches to Mapping
- Relationship maps give a high-level view of organizational entities involved in a business process and their connections.
- Process maps are detailed maps that identify the specific activities, the informational/physical/monetary flows of a process. Process flowcharts offer complete process illustrations.
Process Map Example: San Diego DC
- This Distribution Center (DC) supplies dealers within a 30-mile radius.
- Recent complaints from dealers focused on lost orders and processing time for already-stocked items.
Facts of the Case: San Diego DC
- Order processing involves faxes, internal mail, clerk processing, picking, and shipping.
- Common problems include paper jams, fax delivery issues, incorrect order completion, and delays in processing already-stocked items.
Process Mapping: Case Examples
- Various steps and delays in the San Diego DC order fulfillment process are documented with times and averages.
- Key indicators such as percentage of lost orders and errors are described.
Improving Business Processes: Guidelines
- Identify and analyze process delays.
- Examine decision points and consider if they are necessary or if automation or elimination is possible.
- Dematerialize documentation, moving to electronic formats whenever possible.
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Description
Explore the key concepts presented in Chapter Four on Business Processes. Understand the different types of business processes, including primary, support, and development processes. This chapter emphasizes the importance of managing processes effectively to achieve successful supply chain outcomes.