_Process analysis
_The main principles that a successful business operates on is profit maximization and cost minimization. Appears to be clear doesn't it, but many businesses cannot place their operational practices within this framework.
Process analysis
Business process analysis is a way to help the business person understand how a business unit fulfills its profit mission, or doesn't.
The analysis is used to understand the role and operation of a specific function, and then a collection of functions. Using inventory control as an example, it is important allocate the inventory investment to supply the products when they are needed by the sales activity. Excess inventory and low inventory turnover will cause a cash flow problem and more warehouse space than is actually required. Investment in inventory does not generate a return until its sold. Excess inventory costs money. The business process analysis should develop an inventory turnover ratio that is appropriate for the sales.
However, the reason for the accumulation of excess inventory must be determined and corrected. Will an inventory stocking plan be followed, or is there a person who believes that they can get a good price on volume? The entire inventory process must be analyzed.
The goal of a process analysis is to help businesses identify, refine and execute the processes that will produce a desired business result. Many business efforts stop at developing nice flow diagrams or process maps that no one ever sees again, and probably no one ever understood.
A business process consultant is valuable for developing and implementing a process analysis plan. A major automotive manufacturer has two engine manufacturing plants that are identical except they make different engines. Both plants had the same production problems, but one plant opted to hire a process consultant while the other plant didn't see the need for one. A year later the plant that hired the consultant was performing so much better than the plant that tried to work out the problem on its own. The secret, however, is to hire a reputable consultant with excellent references and who understands that they are working for their client and not for themselves. A large business is not going to find the source of its problems easily, and will have an even greater difficulty fixing them alone.
Process consultants can help a business merge all the functions into a fully integrated profit oriented organization. Often, one or two areas of a business are consuming more of the business resources than warranted, and in doing so they are holding the business back. This is where the service of a process analyst is needed. A process analyst can focus the management of the business on the areas where suitable policy changes need to be made, and help follow-up to ensure they are made.
One caution is to maximize the appropriate use of IT resources, but do not let IT convince anyone that they, and they alone, have all the answers. Data is needed is changes are to be made, but choose the data carefully. Too much data will stall a good process.
Process analysis
Process analysis
Business process analysis is a way to help the business person understand how a business unit fulfills its profit mission, or doesn't.
The analysis is used to understand the role and operation of a specific function, and then a collection of functions. Using inventory control as an example, it is important allocate the inventory investment to supply the products when they are needed by the sales activity. Excess inventory and low inventory turnover will cause a cash flow problem and more warehouse space than is actually required. Investment in inventory does not generate a return until its sold. Excess inventory costs money. The business process analysis should develop an inventory turnover ratio that is appropriate for the sales.
However, the reason for the accumulation of excess inventory must be determined and corrected. Will an inventory stocking plan be followed, or is there a person who believes that they can get a good price on volume? The entire inventory process must be analyzed.
The goal of a process analysis is to help businesses identify, refine and execute the processes that will produce a desired business result. Many business efforts stop at developing nice flow diagrams or process maps that no one ever sees again, and probably no one ever understood.
A business process consultant is valuable for developing and implementing a process analysis plan. A major automotive manufacturer has two engine manufacturing plants that are identical except they make different engines. Both plants had the same production problems, but one plant opted to hire a process consultant while the other plant didn't see the need for one. A year later the plant that hired the consultant was performing so much better than the plant that tried to work out the problem on its own. The secret, however, is to hire a reputable consultant with excellent references and who understands that they are working for their client and not for themselves. A large business is not going to find the source of its problems easily, and will have an even greater difficulty fixing them alone.
Process consultants can help a business merge all the functions into a fully integrated profit oriented organization. Often, one or two areas of a business are consuming more of the business resources than warranted, and in doing so they are holding the business back. This is where the service of a process analyst is needed. A process analyst can focus the management of the business on the areas where suitable policy changes need to be made, and help follow-up to ensure they are made.
One caution is to maximize the appropriate use of IT resources, but do not let IT convince anyone that they, and they alone, have all the answers. Data is needed is changes are to be made, but choose the data carefully. Too much data will stall a good process.
Process analysis
