What is a process?
’’ A process can be described as ‘‘organised arrangement of resources and activities that transform inputs into outputs aimed at satisfying internal and external clients.’’
In terms of what can you describe the aim of a process.
- Clients: The aim of a process can be In terms of clients. Clients can be distinguished between internal clients, external clients.
- Outputs: The aim of the process can be In terms of providing an output which is the goods services and products received by the clients.
What is the difference between outputs and outcomes?
- Outputs represent what the clients receive
- Outcomes represent the benefits to the client after receiving the output and using It for example being able to access phone apps.
In terms of what can you describe the transformation of a process?
- Outputs - You can describe the transformation that occurs in terms of an output as the goods products and services transformed by the processes.
- Inputs - You can describe the transformation that occurs in terms of inputs and physical material are transformed in the process.
- Activities - You can describe the transformation Identifiable and defined tasks used to transform inputs into outputs.
- Resources - You can describe the transformation in terms of resources. This is the factors of production used to transform inputs into outputs.
In terms of what can you describe the organisation of the process?
- Work Plan - This is the logical and chronological arrangement of resources and activities appropriate for the transformation of inputs into outputs, for example an Ikea instructions document.
- Context - The conditions that influence how we can perform an activity. For example some sort of regulation or law in the context will influence the way you perform an activity.
What makes up the element of transformation
Inputs → Process → Outputs
What makes up the element of organisation?
Context , processes and and resources
What is performance in general terms?
Performance is the capacity to go a given process to generate value to the firms and its client in an effective and efficient way.
Define value
Value is worth and desirability of the actors performing the process
How should firms evaluate value according to the ‘triple bottom line’
- Profit - A firm can be sustainable if it generates profits, as this attracts investment.
- People - A firm can be sustainable if they improve the quality of life for their workforce.
- Planet - A firm can be sustainable if they protect the environment in the way they operate
What does an effective and efficient performance mean?
- Effectiveness - Represents the capacity to generate outputs that attract interest and satisfaction of the clients. Greater effectiveness increases revenue since clients are more willing to pay for products/services.
- Efficiency - Represents represents the capacity to generate outputs outputs with as few inputs, resources and tasks as possible. Greater efficiency decreases the costs associated with the process.
Briefly state and explain the 7 ways performance can me measured.
- Operating performance - This is what the output can do. For example the operating performance between a Ferrari and Nissan can be observed with acceleration etc.
- Features - The number of operating performances that a single product/service can handle. E.g features of an iPhone is much greater than the features of a brick Nokia.
- Reliability - The probability of malfunctioning or failures within a given time period.
- Durability - The amount of use one gets from a product before it deteriorates. For example Duracell advertised the dimension of durability as their trademark.
- Serviceability - The speed and competence of an after sale service. For example returns customer service.
- Aesthetics - The looks, feels, sounds, tastes and or smell of the product and services.
- Perceived quality - The perception that clients have of the product/service. E.g musicals are familiar with this as critics have different views on the output.
What the 3 different dimensions of time to produce an output
- Time to market - Time from the concept of the output to its market launch.
- Manufacturing/Service lead time - Time from the clients placing and order of an output to its delivery to the client.
- Production lead time - Time from the start of production to its completion.
What are the 3 different costs to produce an output?
- Production costs - the costs associated with the transformation of inputs into outputs (e.g materials, labour, machinery)
- Quality control costs - The costs associated with preventing and detecting quality failures (e.g inspection costs)
- Quality failure costs - Costs associated with the production of defective outputs (e.g reworks, and customer complaints)
Define the flexibility of the processes
This is the capacity to change what service we deliver to the clients and/or how the service is delivered to clients.
What are the 4 different types of the flexibility of the processes?
- Product/service flexibility: This is the idea that customers can choose between different products or services.
- Mix Flexibility - This has 2 interpretations: in a service setting which is relates to the capacity to mix and match for example different combinations in a burger shop. In a manufacturing setting this refers to whether machines and equipment can manage variations in products.
- Volume flexibility - Can the service manage flexibility in different places and ways. E.g the NHS invested in volume flexibility when it invested in ventilators.
- Delivery flexibility - Can the service be delivered in different places and in different ways. Amazon have invested heavily in this.
Define the dependability of the processes
Dependability is the capacity to ‘keep promises’ and to perform at an adequate level time-after-time.
What are the 6 different ways dependability can be measured.
- Availability over time
- Reliability - performing tasks as planned
- Safety - does not harm anybody
- Security - Does not breach information confidentiality
- Durability - i.e it lasts longer than expected
- Maintainability - i.e the services and products do not deteriorate without possibility of corrections.
What are the 5 performance objectives?
- Cost
- Time
- Quality
- Flexibility
- Dependability
Define the term improvement
Improvement simply means to ‘‘make something better or more specifically close the gap between current and desired performances of a process’’
What are the 4 ways that stimuli to improve the processes can be triggered?
- New discoveries - in terms of technologies
- By suppliers - Inputs usually come from other firms and they become specialised in this which provides a stimuli to improve the process. For example car companies often get pieces such as braking systems from more specialised firms.
- Regulations and guidelines - These regulations and guidelines may cause firms to develop new ways to improve the product.
- Changes in resource availability - Introduction of new resources that can help improve the process. For example WBS, triggered a number of changes in the process of delivering lectures.
What are the 3 ways in which the improvement can be achieved?
- Change - The process has moved from one state to another.
- Innovation - A specific kind of change where we have introduced something new in the firm or market.
- Invention - Introducing something new where we have introduced something that didn’t exist before.
What are the 2 ways in which we can distinguish how significant the improvement is?
- Radical change (or innovation) - A major change which transforms processes and the organisation and potentially introduces new products or services.
- Incremental change - a gradual modification to the existing processes, products and services that occur through the the reduction of wastes and inefficiencies in the organisations.
What are the 2 different ways of how often we improve ?
- Continuous improvement - i.e systematic a systematic approach to change/improvement which never stops and constantly looks for stimuli to change.
- Project-based improvement - a temporary approach to change/improve which occurs at a fixed period.
