1. Chapter 1: Introduction to Process Management
Process Management: Creating Value Along the Supply Chain (1st edition)
Wisner and Stanley

2. Chapter Outline Introduction Processes and Process Management Defined
Process Management and Supply Chain Management
The Eight Supply Chain Processes
Inventory and Process Management
Lean Thinking and Process Management
Summary

3. Chapter Outline (cont.)
Quality and Process Management
Business Process Management—Formalizing Process Improvement
Measuring Process Performance
Trends in Process Management
Summary

4. Learning Objectives
After completing this chapter, you should be able to:
Define and discuss process management, using examples.
Understand the business value of process management.
Describe the eight processes linking organizations along the supply chain.
Discuss the importance of process management in services.

5. Learning Objectives (cont.)
After completing this chapter, you should be able to:
Describe why quality management and JIT are important process management activities.
Describe how processes are modeled and improved, and how firms measure process performance.
Discuss the use of information technologies to integrate supply chain processes, and discuss other trends in process management.

6. Introduction Processes Process management What is a process?
Can you provide examples?
Process management
Importance of process management, for both manufacturing and services
Impact of effective process management on costs, profits and productivity
How world-class businesses are managing their processes

7. Processes and Process Management Defined
Process improvement
Business value of process management / improvement
Importance of process improvement: continuous process evaluation.
Business process management (BPM): design, analysis, and improvement of business processes.

8. Generic Process Elements
Inputs
- labor
- materials
- training
- equipment
- time
- capital
- facilities
- information
Transformation
Sequenced steps of:
- machine operations
physical/mental
activities
Outputs
Internal/External:
- physical goods
- services
- decisions and
information
Process Management
Internal & external suppliers
Internal & external customers
Figure 1.1

9. Process Management and Supply Chain Management
Shift in focus: internal silos  external sharing and coordination of key processes
Traditional organization structures drive functional thinking-managers begin to see the world from a narrow, functional perspective.
Process thinking –aligning decisions with corporate strategy and coordinating activities across functions.
Business process integration
Vertical integration  outsourcing
Business process re-engineering (BPR)
Supply chain management
Collaborative process management

10. Eight Key Supply Chain Processes
Identified by the Global Supply Chain Forum
These processes link organizations across the supply chain
Each process includes a set of functional activities, which should be integrated with other applicable functions
Each process should be integrated with other applicable processes

11. Eight Key Supply Chain Processes (cont.)
Customer Relationship Management: creating and maintaining successful relationships with customers.
Customer Service Management: designing, implementing and improving customer service activities.
A perfect order
Seven R’s rule: having the right product, in the right quantity, in the right condition, at the right place, at the right time, for the right customer, at the right cost.
Demand Management: balancing customer demand with the firm’s capacity.
Collaborative planning, forecasting, and replenishment (CPFR): a tool for reducing forecast error.

12. Eight Key Supply Chain Processes (cont.)
Order Fulfillment: delivery of products and services to customers.
Third-party transportation services
Flow Management: making the product or service and managing inventories, customers, and information.

13. Eight Key Supply Chain Processes (cont.)
Supplier Relationship Management: selecting the right supply partners and managing relationships.
Product Development and Commercialization: designing and producing new products that customers want
Concurrent engineering
Returns Management: managing product returns effectively.
Reverse supply chains
A source for customer satisfaction and product improvement ideas

14. Inventory and Process Management
Inventory management : critical activity of supply chain.
Having too much vs. too little inventory
Bullwhip effect
Independent demand
Dependent demand

15. Lean Thinking and Process Management
Just-In-Time (JIT)
Pull system
An important process management activity

16. Quality and Process Management
Total Quality Management (TQM)
TQM processes
An important process management activity

17. Business Process Management – Formalizing Process Improvement
Structured approach to process assessment and organizational improvement.
BPM tools: benchmarking, reengineering, six sigma
Business process re-engineering (BPR)
Difference between BPM and BPR

18. Measuring Business Performance
Continuously monitoring process performance is important.
Important points to consider when designing performance measurements:
Link measures to the firms’ vision and goals
Measure what customer care about
Should monitor the quality, cost and timing of outputs along with the volume
Effectiveness trumps efficiency
More measurements are better