Business Processes

So, we have all heard of it but find it hard to explain it...let alone give examples..
A collection of related, structured activities--a chain of events--that produce a specific service or product for a particular customer or customers.

Characteristics of a Business Process:
Business processes can be clearly defined, documented, taught, and improved based on “lessons learned.”

• defines “how we do it around here.”
• is useful for training employees
• Performance of the business process can be measured
• When things go wrong, the “lessons learned” as a result of failure analysis can be used to improve the process - This is how organizational knowledge is accumulated and refined.


Operations Business Processes:
1. Receive customer order request (pull signal)
2. Schedule / confirm materials availability
3. Schedule / confirm labor and equipment availability
4. Confirm delivery dates and quantities to customer
5. Receive all materials
7. Fabricate parts / Prepare for event
8. Assemble, test, package, and ship / Deliver services
9. Invoice customer
10.Receive payment

Sales Process: (example for Capital Equipment)
P. Qualify potential new customers
1. Known need and willing to buy our brand
2. Clear compelling event established
3. Preliminary quotation at the customer
4. Good mentors established
5. Funding confirmed
6. Contract negotiations
7. Salesman reports that the deal is acceptable
8. Verbal contract approval from the customer
9. Order is at headquarters
10. Order is accepted at headquarters
11. Machine is shipped
12. Customer satisfaction survey is completed