Oct
22
Written by:
adayal
10/22/2010 5:03 PM
There are multiple ways to classify processes, the famous 11 are:
1. Core Process (based on CVCP) and Enabling Processes:
In the entire value chain, the point where the real differentiation happens because of which the customer chooses the company over the competitor is called CVCP (Critical Value Convergence Point) and the process that delivers the value is called as the Core Process. Every other process is called as an Enabler process.
2. Core and Shared:
Selling, converting (manufacturing) and buying are considered core processes and all other processes are considered as shared.
3. Parent, Child and Grand Child processes:
In this model, a child process is a subset of the parent process and the grand child process is a subset of the child process.
4. 7 Level deep processes:
Element > Task > Activity > Step > Sub-Subprocess > Sub Process > Process
5. Functional Process vs. Business process:
Processes inside a function are called Functional Processes. Processes that cut across multiple functions and converge at a point to create significant value are called Business processes.
6. L0, L1 and L2 processses:
Normally a business is called an L0 process. It is divided into 6-12 high level processes called L1 processes. L1 processes are split into 6-12 pieces called L2 processes. And one can continue to drill further to create L3 and L4 processes.
7. End to end processes and Wing to Wing processes:
A process that starts from a customer and extends back to a supplier is called end to end process. A process that starts from a customer’s customer and goes back till supplier’s supplier and often 3rd level and 4th level suppliers.
8. Stakeholder Based processes:
Obvious examples are Supplier management processes, Government relations management process, Investor relations, Customer management process, Employee management process
9. Processes dealing with Material flow/ Money flow and Information-decision flow:
a) Material Flow: Raw material flow, energy flow, packing material flow
b) Money Flow: Working capital management, Cash to cash cycle, Payroll management, Loans management process
c) Information Decision: Daily reports, Functional reports, Quarterly report, SLA report, Zero delay communication, Escalation reports
10. Strategic Management processes, Continuous Improvement processes and Operational processes:
a) Strategic management processes deal with defining initiatives and executing the same for building capability to compete and grow.
b) Continuous improvement processes deals with incremental improvements of small processes on 1 or 2 parameters.
c) Operations management processes deal with exploiting the created capability. The normal sequence is Prospect > Order > Delivery > Cash > Service > Satisfaction
11. Processes around Features/ Property/ Indicator/ Parameter:
Obvious examples are Innovation management process, Time management process, Quality management process, Cost management process, Error management process etc.