Business processes

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Business processes

A business process or business method is a collection of related, structured activities or tasks that in a specific sequence produces a service or product (serves a particular business goal) for a particular customer or customers.

While these processes have a similar objective – improving business quality and performance – they are executed very differently.

Six Sigma – This set of tools seeks to improve business processes by decreasing variability and defects. Six Sigma is implemented by an accredited project team that follows a prescribed series of steps:

Define – The team chooses its members, determines the scope of the project, identifies the customer’s requirements and maps the current process.

Measure – The team collects data and calculates and displays variance in the process.

Analyze – This step requires identifying possible causes, narrowing to root causes and determining the financial opportunity for improvement.

Improve – The project team seeks solutions. In this phase the team engages in testing, refining, piloting and justifying possible solutions.

Control – This step requires preparing a process control plan, implementing a solution and closing the project.

Business Process Management (BPM) – This methodology improves operations by managing the business as a whole. BPM seeks to implement business process automation that is driven by human processes and interaction. It uses a five step design model:

Design – Identify the existing process and create a blueprint for improvement.

Modeling – While the new process is still on the drawing board, the team can experiment with design changes and combinations of variables.

Execution – Once the model has been set, the team creates or buys a software application that executes the process.

Monitoring – This stage tracks processes and statistically measures their performance.

Optimization – Once performance has been recorded, the team identifies opportunities for cost improvements and savings.

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