Geared Processes Approach

Understanding a Company

(click to start the Presentation)

The Potential CustomerPotentialCustomer

Every company starts with a Potential Customer that has a Need …

Need

$

… and is willing to exchange Capital for getting this Customer Need Satisfied$

The Business OpportunityPotentialCustomer

Need

Customer

Need

Customer

SatisfiedNeed

Getting a Customer Need Satisfied is a Business Opportunity…

$

$

CustomerCustomer

The Revenue and Profit

$

$

Need

SatisfiedNeed

Need

…because the Customer exchanges it for Capital (Revenue)

Revenue

$

$

…that can become Profit…$

$

$

$$

Revenue

$

$

The company puts in place Core Processes to transform a Need into a Customer Need Satisfied

Need Customer Need Satisfied

Sales Sourcing Operations Distribution

DevelopmentConcept Design

CustomerCustomer

New Product

The Core Processes ( DO )

Existing ProductSales

Sourcing Operations Distribution

Development

Need

Concept Design

SatisfiedNeed

$

CustomerCustomer

The Objective

$

$

SatisfiedNeed

Need

Therefore, the Objective of a Company is…

“to get a Customer Need Satisfied in exchange of Capital to generate Profit”

Revenue

$

$

New Product

Existing ProductSales

Sourcing Operations Distribution

DevelopmentConcept Design

Need

$

$

CustomerCustomer

New Product

The Process Objectives

Existing Product

$

SalesSourcing Operations Distribution

Development

$

Need

Concept Design

SatisfiedNeed

…each Core Process has a Process Objective that shall be in line with the Company Objective.

Revenue

$

$

$

CustomerCustomer

New Product

Existing Product

$

SalesSourcing Operations Distribution

Development

$

Need

Concept Design

SatisfiedNeed

…each Core Process has a Process Objective that shall be in line with the Company Objective.

Revenue

$

ActivityActivityActivity Activity

ActivityActivity

Activity Activity

Activity

The Sub-Processes ( DO )

The processes have Sub-processes (or specific Activities groups) that are more understandable and can be delegated within the Company

$

$

CustomerCustomer

$

$

Revenue Satisfied

The Business Processes ( PLAN, CHECK, ACT )

$

SalesSourcing Operations Distribution

Concept Design Development

$

New Product

Existing ProductNeed

… the Core Processes do not “happen” by themselves.

... a Company needs Business Processes to provide resources, control and improve the performance of the Core Processes…

Need

$

$

CustomerCustomer

$

$

Revenue Satisfied

$

SalesSourcing Operations Distribution

Concept Design Development

$

New Product

Existing ProductNeed

…each Core Processes has Individual Business Processes in sync with the Company Business Processes…

Need

The Business Processes ( PLAN, CHECK, ACT )

$

$

CustomerCustomer

$

SatisfiedNeed

The Planning Processes ( PLAN )

$

SalesSourcing Operations Distribution

Concept Design Development

$

New Product

Existing ProductNeed

$

1. People2. Responsibilities3. Skills

4. Infrastructure5. Work

Environment

Decision

Revenue

1. DecisionDecision

1. Capital$

1. Corrective Action

1. Implemented Improvement

1. Preventive Action

II

PA

CA

The Company takes decisions on how to transform Capital into Available Resources for the Core Processes

Decision $

!

IIPA

CA

$

$

CustomerCustomer

$

SatisfiedNeed

The Measurement Processes ( CHECK )

$

SalesSourcing Operations Distribution

Concept Design Development

$

New Product

Existing ProductNeed

$

Decision

… the Company monitors KPIs and transform them into information to identify opportunities

Revenue

Info

$

$1. InformationInfo

Effectiveness KPI

Efficiency KPI

Info

1. Detected Problem

Improvement Opportunity

1. Potential Problem

!

!

$

CustomerCustomer

$

SatisfiedNeed

The Continual Improvement Processes ( ACT )

$

SalesSourcing Operations Distribution

Concept Design Development

New Product

Existing ProductNeed

$

!Decision

… opportunities can lead to Improvement Actions…

Revenue

Info

$

$

IIPA

CA$

!

1. Detected Problem

Improvement Opportunity

1. Potential Problem

!

1. Corrective Action

1. Implemented Improvement

1. Preventive Action

II

PA

CA

Todos los contenidos en este material (Incluyendo, pero no limitado a texto, logotipos, contenido, fotografías y vídeo) están sujetos a derechos de propiedad por las leyes de Derechos de Autor y demás Leyes relativas Internacionales a Diseño de Procesos de Calidad.

En ningún caso se entenderá que se concede licencia alguna o se efectúa renuncia, transmisión, cesión total o parcial de dichos derechos ni se confiere ningún derecho, y en especial, de alteración, explotación, reproducción, distribución o comunicación publica sobre dichos contenido sin la previa autorización expresa de Diseño de Procesos de Calidad y de los titulares correspondientes.

Los logotipos de otras marcas y sus marcas correspondientes son propiedad de las respectivas compañias y/o sus subsidiarias

ADDITIONAL SLIDES

PROCESS CInputs Outputs

Problem Solving

Prevention

Improvement

Lesson Learned

Best Practice

Information

Analysis of data

Process A(gives inputs)

Information_Input1

Information_Input2

Process B(gives inputs)

Physical_Input1

Information_Output1

Process D(receives outputs)

Physical_Ouput1

Process E(receives outpouts)Physical_Output2

Management Processes

Operational Processes

Operational Activities

Process Review

Decisions

Activity 4(of Process C)

Activity 2(of Process C)

Activity 1(of Process C)

Activity 3(of Process C)

The goal of this process.

The reason for it to exist

Operational Information

Physical flow

Management Information

Budget

$

Monitoring

Peop

le.

Roles

Skills

Hum

an R

esou

rces

Resp

onsib

ilitie

s

Trai

ning

Infra

stru

ctur

eW

ork

Envi

ronm

ent

Infra

st.

W. Con

d.

Business Planning$$ $ $ $

Budget allocation

$

Efficiency KPIs

Effectiveness K

P Is

PROCESS CInputs Outputs

Problem Solving

Prevention

Improvement

Lesson Learned

Best Practice

Information

Analysis of data

Process A(gives inputs)

Information_Input1

Information_Input2

Process B(gives inputs)

Physical_Input1

Information_Output1

Process D(receives outputs)

Physical_Ouput1

Process E(receives outpouts)Physical_Output2

Management Processes

Operational Processes

Operational Activities

Process Review

Decisions

Activity 4(of Process C)

Activity 2(of Process C)

Activity 1(of Process C)

Activity 3(of Process C)

The goal of this process.

The reason for it to exist

Operational Information

Physical flow

Management Information

Budget

$

Monitoring

Peop

le.

Roles

Skills

Hum

an R

esou

rces

Resp

onsib

ilitie

s

Trai

ning

Infra

stru

ctur

eW

ork

Envi

ronm

ent

Infra

st.

W. Con

d.

Business Planning$$ $ $ $

Budget allocation

$

Efficiency KPIs

Effectiveness K

P Is

Available Resources for the Process

Human Resource(Who participates)

Responsibilities(What is this person doing?)

Skills(What this person needs to

know)

Infrastructure(What is needed to do the

activities)

Work Environment(Conditions needed to do the

activities)

Process Owner

R – Responsible(s)

I – Involved

Hum

an R

esou

rces

Skill

s

Infra

stru

ctur

e

Wor

k En

viro

nmen

t

Resp

onsib

ilitie

s

Decisions

Resources allocation

Process Review

Business Planning

Key Process Indicators

Effectiveness KPI(How )

Efficiency KPI(How )

KPI1= x/y KPI2= x/(y+z) %

$

Information

Monitoring

Analysis of data

Lesson Learned

Best Practice

Problem Solving

Prevention

Improvement