Business Processes

• Focus on the critical “business processes”:

– There are 7 key inter-related processes in managing a business.

– Must understand the individual’s role to be a team-player to succeed.

• The 7 key processes in business operation are:

– Business decision & execution process

– Product manufacturing process

– Sales management / customer service process

– Cash flow management process

– Information management process

– New product development process

– Project management process

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Business Processes

• Business decision & execution process:– The process to define business goals, identify opportunities, reach and

execute decisions, evaluate results, and improve to achieve the goals.

– Key participants:

» From top executives to front-line supervisors– Align efforts for max. value creation through “mission” motivation.

• Product manufacturing process:– The process to make the product, involving manufacturing flow and

coordination.

– Key participants:

» Manufacturing, P/C, Q.A., M/C, etc.

» Sales, Marketing, Customer Services, etc.

» Engineering: Fab, Product, Assembly, Test, etc.

» Purchasing, Finance, MIS, etc.– The focuses are yield and cycle-time.

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Business Processes

• Sales management / customer service process:– The process to serve the customers by addressing their needs with

products, involving sale order generation and processing, as well as product distribution.

– Key participants:

» Sales, Customer Services, Marketing, etc.

» Account Receivable, Credit, MIS, etc.

» Manufacturing, P/C, M/C, Shipping, etc.

» Engineering: Product, Test, etc.– Customers buy products to address their needs:

» Performance: Functionality, speed, compatibility, etc.

» Quality: Robustness, reliability, no field failures, etc.

» Price: Competitiveness, volume discounts, etc.

» Delivery: JIT, short lead-time, volume capability, etc.

– Must penetrate strategic and key accounts: Lead-users, trendsetters, Fortunate 500’s, Fastest growing companies.

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Business Processes

• Cash flow management process:– The process to finance the business operations.

– Key participants:

» Finance, Accounting, Purchasing, MIS, etc.

» Manufacturing, M/C, P/C, Shipping, etc.

» Sales, Customer Services, FAE’s, etc.

» Engineering: All (on cycle-time reduction)– It is essential to minimize all the resource drains: cycle-time, lead-time,

inventories, wastes, etc.

• Information management process:– The process to gather information and data, and to channel the

necessary and sufficient information for timely execution.

– Key participants:

» MIS and all operation departments.

– Engineering data are valuable intellectual properties.

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Business Processes• New product development process:

– The process to define, develop and introduce new products.

– Key participants:

» Marketing, Sales, PP&A, FAE’s, etc.

» Engineering: All departments.

» Manufacturing, P/C, M/C, Q.A., etc.

» Finance, Purchasing, MIS, etc.

– Need to incorporate all knowledge and lessons learned.

– Product Engineers have to be the new product champions.

• Project management process:– The process to coordinate and manage one’s work and inter-functional

activities.

– Key participants: All employees

– High Productivity depends on good project management skills of most, if not all, employees.

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