Module 4

Process Design

Objectives
At the end of this module, the students should be able to:
1. Differentiate between the different types of processes.
2. Understand the use of flowcharts.
3. Analyze and design a flowchart for a chosen business.

There are many definitions of a process, and we will discuss a few of these. The
selected examples illustrate that each perspective on a process emphasizes a particular
trait or characteristics of a process. As a result of these different views, there is no
single definition.
1. Repeated tasks that arise in the performance of an assignment in different sectors of
an enterprise. They are the recurring results of for an individual task with
● measurable input
● measurable added value
● measurable output
2. A succession of tasks, activities, and performances for the creation of products or
services, which are directly connected and in their sum determines the business
management, technical production, technical administration, and financial success of
the enterprise. Striening (1988, 57)
3. A manual, partly automated, or fully automatic business activity, which is performed
following definite rules and leads to a particular goal. A business process creates, in this
way, a valuable result for the client. Oberweis (1997)
4. The content, timing, and natural sequencing of an object necessary to complete a
business management function. Vossen and Becker (1996, 19).
There is measurable information and measurable outcomes, a clear beginning
(this implies that it has a beginning occurrence or commencement), and an end, as well
as a desire for value or a contribution to the production of value, in the majority of
definitions. Numbers 1-4 are used to indicate the key characteristics of a process.
The classification of processes is another key aspect of process modeling. One can
broadly distinguish between material processes ( e.g., procuring, producing, storing,
and financing) and formal processes (e.g. planning, controlling, and decision-making).
Figure 4.6 lists a few examples of processes often found in enterprises.
A further distinction is whether a process is a main, service or support, and
management and leadership process. Main processes are those that are directly create
value for an external client. They can be product related (e.g., production, R&D) or client
related processes (e.g., order completion, distribution, acquisition). Main processes are
sometimes also call core processes, because they are central to the strategic goals of
the business. They are the means by which the business creates value. Service
processes deliver value to internal clients and support other processes. (e.g., personal
recruiting, maintenance, quality, and security). Management and leadership processes
act upon main processes. Planning, accounting, and budgeting fit into this category.

● Business Process Design

Business Process Design (BPD) is

creating or developing a process or
workflow for a business completely from
scratch.
A process or workflow is, by definition, a
sequence of repeated steps that an
individual, or a team, must take on in order
for the business to operate, achieve goals,
and maintain a level of productivity. They
are a crucial part of the business set-up –
and are the building blocks to an efficiently-
run and productive business.
If you’re unlucky enough that your processes don’t work first time, then there’s a good
chance that you’ll be redesigning them. So, take your time to ensure that each one adds
the value you require to your business – whether this is a direct or indirect value. Once
you’ve created your separate processes, the next step is to organize these procedures
into a coherent manner – and this can be tricky, especially when seemingly-simple
businesses implement a number of processes.

Three Main Types

● Operational Process - Primary Processes
To find your operational processes, ask yourself, ‘how does, or will, your business
generate income?’ It is the procedures and tasks that play a direct role in the production
of outputs – from the inputs – that are the operational processes.
Inputs include things like: labor, raw equipment, and money. Outputs include: the final
product or service, and the resulting level of customer satisfaction.
In general, if your process falls into one of the below categories, it can be classed
operational, or as they are sometimes affectionately called, a part of ‘the value chain.’
● The development or creation of the final product or service
● The marketing of the above product or service
● The customer service and support you offer – even after the sale
For example, let’s say you are a local greengrocer who delivers vegetables to your
community. The tasks involved – buying in the produce from the supplier, packing into
boxes, and delivering the goods to your customers – all of these are operational
processes.
● Supporting Processes - Secondary Processes
These are the cogs in the engine room. The things that work away behind the scenes to
ensure the ship can keep on sailing – that’s the supporting processes. This means they
don’t generate income themselves, but are there to serve the internal body of staff
across the organization.
They bring value – just not in the way of money.
For example, the payroll department doesn’t necessarily make you money – but without
them your employees wouldn’t be paid. And the same for a cleaner, or someone who
washes dishes, they may not bring in money with their role – but without them, you
would certainly notice!
These are the processes that make it possible for the operational processes to be
carried out effectively, and are either, or both: strategically important, and necessary.
● Management Processes
This is where the coordination of the above processes takes place. This involves the
planning, monitoring and the general oversee.
This means ensuring that the team is meeting targets, that the workplace is compliant
and safe, and that concerns of employees are dealt with – among other managerial
duties. It also means identifying potential threats or opportunities for your business too –
perhaps seeing a talent in one of your staff members, and recommending them for
some training, or a new client that would result in a good deal for your business.
Although, like supporting processes, management doesn’t necessarily generate direct
income, they exist to optimize income opportunities and adapt the business when
necessary.
Strong management processes are the key to resilience within a business.

Flowchart for Business

A business process flow diagram is the most primary representation of a

business process. Its main purpose is to simplify complex business processes for better
understanding. Usually, these diagrams depict the entire flow of a business process and
do not include any problems or exceptions that may occur when the process is in action.
To create an ideal business process flow, you first need to make a list of all the
tasks required to complete it.
 From your task list, separate the human tasks and system tasks. Human tasks
are approval or input-based tasks that require human intervention.
On the contrary, system tasks are those that can be automated and completed
independently without any human involvement. These tasks can include calculating
data, pulling information from database, sending emails, and copying data from one
application to the other.
With all the tasks finalized, you need to decide the sequence in which all the
tasks will be executed. Of course, the correct sequence will depend on the business
process flow. You can also create alternate or parallel tasks, depending on the data
going through the workflow. Each task should also have a deadliness attached to it.

Advantages Of Creating a Business Process Flow

● Better visibility and transparency
With a business process flow, you can better visualize how processes are functioning
within your organization without any manual monitoring. There is also greater
transparency that can give your team members a better understanding of the
processes. You can also easily modify the process structure while constantly tracking
results
● Higher productivity
When companies take advantage of business process flows, they can determine how a
process would function under specific conditions and adjust the process to achieve
optimal results. As manual tasks are automated, it eliminates redundancies and room
for error, which in turn improves overall productivity.
● Compliance and security
Since each task in a business process is clearly mapped out with detailed workflows,
organizations can ensure that all the necessary records and documentation are in place
for meeting the required compliance standards. A carefully documented business
process flow also creates a framework for better security.

This is how to create a business flowchart

1. Create a rough draft. It’s best to start by creating a rough editable version of the
business process flow diagram by including all the tasks
2. Add stakeholders. Collaborate with everyone involved in the process to get their
insights about how you can optimize the process
3. Digitize the business flowchart. Use an efficient flowchart to digitize the
process and automate manual tasks
 4. Assign user roles and set conditions. Add the stakeholders involved in the
process and assign them the relevant roles. You can also decide who gets
access to the information

References:
https://www.opentextbooks.org.hk/ditatopic/26091
https://checkify.com/blog/business-process-design/
https://kissflow.com/workflow/bpm/business-process-flow-diagram/