Geared processes approach - Understanding a company
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The document discusses the Geared Processes Approach to understanding a company. It describes how a company begins with a potential customer with a need, and uses core processes like sales, sourcing, operations, and distribution to satisfy that customer need in exchange for revenue. It states that the objective of a company is to satisfy customer needs and generate profit. Each core process has objectives aligned with the company's overall objective. Business processes are then used to plan, measure, and improve the performance of core processes through activities like resource allocation, monitoring, and continual improvement.
Geared processes approach - Understanding a company
- 1. Geared Processes Approach Understanding a Company (click to start the Presentation)
- 2. The Potential Customer Potential Customer Every company starts with a Potential Customer that has a Need … Need $ … and is willing to exchange Capital for getting this Customer Need Satisfied$
- 3. The Business Opportunity Potential Customer Need Customer Need Customer Satisfied Need Getting a Customer Need Satisfied is a Business Opportunity… $
- 4. $ CustomerCustomer The Revenue and Profit $ $ Need Satisfied Need Need …because the Customer exchanges it for Capital (Revenue) Revenue $ $ …that can become Profit…$ $
- 5. $ $$ Revenue $ $ The company puts in place Core Processes to transform a Need into a Customer Need Satisfied Need Customer Need Satisfied Sales Sourcing Operations Distribution DevelopmentConcept Design CustomerCustomer New Product The Core Processes ( DO ) Existing Product Sales Sourcing Operations Distribution Development Need Concept Design Satisfied Need
- 6. $ CustomerCustomer The Objective $ $ Satisfied Need Need Therefore, the Objective of a Company is… “to get a Customer Need Satisfied in exchange of Capital to generate Profit” Revenue $ $ New Product Existing Product Sales Sourcing Operations Distribution DevelopmentConcept Design Need
- 7. $ $ CustomerCustomer New Product The Process Objectives Existing Product $ Sales Sourcing Operations Distribution Development $ Need Concept Design Satisfied Need …each Core Process has a Process Objective that shall be in line with the Company Objective. Revenue $
- 8. $ $ CustomerCustomer New Product Existing Product $ Sales Sourcing Operations Distribution Development $ Need Concept Design Satisfied Need …each Core Process has a Process Objective that shall be in line with the Company Objective. Revenue $ ActivityActivityActivity Activity ActivityActivity Activity Activity Activity The Sub-Processes ( DO ) The processes have Sub-processes (or specific Activities groups) that are more understandable and can be delegated within the Company
- 9. $ $ CustomerCustomer $ $ Revenue Satisfied The Business Processes ( PLAN, CHECK, ACT ) $ Sales Sourcing Operations Distribution Concept Design Development $ New Product Existing ProductNeed … the Core Processes do not “happen” by themselves. ... a Company needs Business Processes to provide resources, control and improve the performance of the Core Processes… Need
- 10. $ $ CustomerCustomer $ $ Revenue Satisfied $ Sales Sourcing Operations Distribution Concept Design Development $ New Product Existing ProductNeed …each Core Processes has Individual Business Processes in sync with the Company Business Processes… Need The Business Processes ( PLAN, CHECK, ACT )
- 11. $ $ CustomerCustomer $ SatisfiedNeed The Planning Processes ( PLAN ) $ Sales Sourcing Operations Distribution Concept Design Development $ New Product Existing ProductNeed $ 1. People 2. Responsibilities 3. Skills 4. Infrastructure 5. Work Environment Revenue 1. Decision 1. Capital$ 1. Corrective Action 1. Implemented Improvement 1. Preventive Action II PA CA The Company takes decisions on how to transform Capital into Available Resources for the Core Processes $ ! II PA CA
- 12. $ $ CustomerCustomer $ SatisfiedNeed The Measurement Processes ( CHECK ) $ Sales Sourcing Operations Distribution Concept Design Development $ New Product Existing ProductNeed $ … the Company monitors KPIs and transform them into information to identify opportunities Revenue $ $ 1. Information Effectiveness KPI Efficiency KPI 1. Detected Problem Improvement Opportunity 1. Potential Problem ! !
- 13. $ CustomerCustomer $ SatisfiedNeed The Continual Improvement Processes ( ACT ) $ Sales Sourcing Operations Distribution Concept Design Development New Product Existing ProductNeed $ ! … opportunities can lead to Improvement Actions… Revenue $ $ II PA CA $ ! 1. Detected Problem Improvement Opportunity 1. Potential Problem ! 1. Corrective Action 1. Implemented Improvement 1. Preventive Action II PA CA
- 14. Todos los contenidos en este material (Incluyendo, pero no limitado a texto, logotipos, contenido, fotografías y vídeo) están sujetos a derechos de propiedad por las leyes de Derechos de Autor y demás Leyes relativas Internacionales a Diseño de Procesos de Calidad. En ningún caso se entenderá que se concede licencia alguna o se efectúa renuncia, transmisión, cesión total o parcial de dichos derechos ni se confiere ningún derecho, y en especial, de alteración, explotación, reproducción, distribución o comunicación publica sobre dichos contenido sin la previa autorización expresa de Diseño de Procesos de Calidad y de los titulares correspondientes. Los logotipos de otras marcas y sus marcas correspondientes son propiedad de las respectivas compañias y/o sus subsidiarias
- 16. PROCESS CInputs Outputs Problem Solving Prevention Improvement Lesson Learned Best Practice Information Analysis of data Process A (gives inputs) Information_Input1 Information_Input2 Process B (gives inputs) Physical_Input1 Information_Output1 Process D (receives outputs) Physical_Ouput1 Process E (receives outpouts) Physical_Output2 Management Processes Operational Processes Operational Activities Decisions Activity 4 (of Process C) Activity 2 (of Process C) Activity 1 (of Process C) Activity 3 (of Process C) Operational Information Physical flow Management Information Budget $ Monitoring Business Planning $$ $ $ $ Budget allocation $
- 17. PROCESS CInputs Outputs Problem Solving Prevention Improvement Lesson Learned Best Practice Information Analysis of data Process A (gives inputs) Information_Input1 Information_Input2 Process B (gives inputs) Physical_Input1 Information_Output1 Process D (receives outputs) Physical_Ouput1 Process E (receives outpouts) Physical_Output2 Management Processes Operational Processes Operational Activities Decisions Activity 4 (of Process C) Activity 2 (of Process C) Activity 1 (of Process C) Activity 3 (of Process C) Operational Information Physical flow Management Information Budget $ Monitoring Business Planning $$ $ $ $ Budget allocation $
- 18. Available Resources for the Process Human Resource (Who participates) Responsibilities (What is this person doing?) Skills (What this person needs to know) Infrastructure (What is needed to do the activities) Work Environment (Conditions needed to do the activities) Process Owner R – Responsible(s) I – Involved Decisions Resources allocation Business Planning
- 19. Key Process Indicators Effectiveness KPI (How ) Efficiency KPI (How ) KPI1= x/y KPI2= x/(y+z) % $ Information Monitoring Analysis of data
- 20. Lesson Learned Best Practice Problem Solving Prevention Improvement