1.3 - Evaluate, by using a process model,
the operations management of a
selected organization
Claudette P Bennett
1. Introduce and describe business process
2. Describe different processes:
 Input-transformation-output process
 Processes hierarchy
 Characteristics of operations processes e.g.
Four Vs – volume, variety, variation, visibility
 Business process modelling
 Lean management techniques
 Integration of supply chain
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All processes consist of actual tasks that must be
completed for any business process to work
properly.
Process modeling, is the analytical representation
or illustration of an organization’s business
processes.
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Process models are used to lump processes of
the same type into a model so that you can see
how those processes can work together.
It shows the activities organization typically
performs and the kind of information it needs to
successfully perform those activities, to
transform inputs to goods and services.
Better business process discovery and modeling
lead to better business process management.
A business process model should define the
following elements:
1.
2.
3.
4.
The goal of the process
Specific inputs and outputs
Consumed resources
Activities and the order in which they are
performed
5. Significant events that drive or affect the
process

To establish links between processes and the
requirements that the model needs to fulfill.
1. Descriptive: Observe, and track what actually
happens during a process
2. Prescriptive: Establish rules, guidelines, and
behavior patterns for positive outcomes
3. Explanatory: Provide explanations about the
rationale of processes.
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To increase process speed or reduce cycle time;
To increase quality; or to reduce costs, such as
labor, materials, scrap, or capital costs.
To explore and evaluate the different courses of
action
Input process is a mixture of transformed and transforming resources.
- Transformed resources (transformed in some way by the operation)
- Transforming resources (used to perform the transformation process).
Three (3) types of resource that may be transformed in operations are:
1.
2.
3.
materials - physical inputs to the process,
information – that is being process or used in the process ,
customers – the people who are transformed in some way (hair
dresser), facilities and staff.
Two (2) types of transforming resource are:
1.
2.
Staff – the people involved directly in the transformation process or
supporting it
Facilities – land, buildings, machines and equipment
Outputs from the Process:
 Product or services – products are tangible, which
we can touch and feel, whereas the services are
intangible.
- For example, transformation process for a
restaurant provides both a service and produces
goods such as food and drinks
.
Level 1 Business Process
– A high level aggregation of company functionality
Level 2 Major Processes
– A bundle of processes that belong to the same area
of responsibility dealing with similar tasks and
activities for functional or other reasons
Level 3 Business Sub process
– Fulfill the same business mission but in a different
manner or with a different application
Level 4 Business Process Activities
– Activities at the lowest level that needs to be fulfill at
the end of the step.
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Four (4) Vs:
The four ways operations processes take their ‘inputs’
like, raw materials, knowledge, capital, equipment and
time and transform them into outputs (goods and
services) are:
1.
2.
3.
4.
volume
variety
variation
visibility
1. Volume: Key to how business organized, for
example McDonalds high volume low cost
hamburger and fast food production.
2. Variety: Flexibility in service, for example choice
between taxi and a bus service
3. Variation: Customized products, for example
homes for sales with different number of rooms
4. Visibility: Customers ability to see, track their
experience or order through the operation
process

Manufacturing Process types:
- Project, jobbing, batch, mass, continuous.

Service Process types:
- professional services, service shops, mass services

Basic types of layouts:
- process layout or functional layout, product layout,
fixed-position layout, group or cell layout, hybrids
and mixed layout.
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Events, inputs, resources, and outputs
associated with a given business process.
Scope of the proposed system as well as
pieces of the process that must be
implemented
A business process model should be in the
type of format that all stakeholders can
understand


A quality management tool, like for example
Six Sigma, and is useful especially in change
management.
Refers to a structural representation,
description or diagram, which defines a
specified flow of activities in a particular
business or organizational unit.
The management of process activities involves:


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Confirming that procedures are in place to ensure that those
tasks get done properly.
Creating process designs, outlining roles, and using strategic
planning to determine how and when all those tasks are
accomplished.
Better business process discovery and modeling lead to better
business process management
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Steps in Lean Management Technique:
1. Realize that there are wastes in the system to be
remove.
2. Identify the different forms of that waste and identify
the causes for these wastes.
3. Finding solutions for the identified root causes – look
at the total picture.
4. Implementation process and making sure things are
going in the intended way. Training and follow-up in
this step.
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Waste elimination from the system is
achieved with lean manufacturing technique
and all tools.
-
Just in Time (JIT)
Total Quality Management (TQM)
Total Productive Maintenance (TPM)
Flow charts
Workplace Redesigning techniques are used
1.
2.
3.
4.
5.
6.
7.
Define the term process model
Why are process models important?
What are the elements of process models?
Describe the input-transformation-output
process
Explain processes hierarchy
Describe the 4 Vs of operations process
What is lean management techniques
1.
Davis Aquilano Chase. Fundamentals of Operations Management 4e.
McGraw-Hill Companies, Inc., 2003
2.
William J. Stevenson, Operations Management, McGraw-Hill Publishing
Company Limited, 8th Edition, 2008.
3.
Richard, B. Chase, F. Robert Jacobs & Nicholas J. Aquilano, Operations
Management for Competitive Advantage, McGraw-Hill Irwin, 11th
Edition, 2006
4.
http://www.slideshare.net/mamtakaranji/operation-management
5.
http://www.ukessays.com/essays/information-technology/the-inputtransformation-output-process-information-technology-essay.php
6.
http://www.saylor.org/site/wp-content/uploads/2013/04/BUS3001.3_Understanding-Operations-Management-The-TransformationModel.pdf