1. © Tesseract Management Systems / Managing by Design / 2002 - 1 THE CONCEPT OF PROCESSES This set of slides is intended to help explain to a group what is meant by ‘Business Processes’ and why the concept is so important in business design and performance improvement. Please do not attempt to use these slides as part of a presentation until you have read and fully understood the relevant sections of ‘Managing by Design’, you know how each slide builds, and you are clear on the points you wish to make with them. There are some associated notes to guide your use of these slides.

2. © Tesseract Management Systems / Managing by Design / 2002 - 2 Forward Motion Decelerate Safely Protect Travellers Smooth Ride Illuminate Path Follow Path Get from A to B (via C) Safely and in Comfort WHAT IS A PROCESS? Let us start with a readily understood example: What Do You Need From A Car?

3. © Tesseract Management Systems / Managing by Design / 2002 - 3 Store FuelTankTank Mix Fuel With AirCarburettorCarburettor Ignite & Contain Spark Plug Transmit Force into Rotary MotionCrankCrank Smooth out MotionFlywheelFlywheel Balance Torques DifferentialDifferential Impart Force To RoadTyreTyre WHAT IS A PROCESS? So how does it do this: Example Automotive Process Forward Motion

4. © Tesseract Management Systems / Managing by Design / 2002 - 4 Alternator Radiator Coolant Reservoir Inlet Manifold Battery Fuel Line Steering Wheel Silencer Exhaust Fuel Tank Shock Absorbers Coil Spring Drum Brake Brake Line Accelerator Brake Pedal Distributor Differential Master Cylinder Disc Brake Gearbox Exhaust Manifold Engine Spark Plugs WHAT IS A PROCESS? The Car as a Tapestry of Processes Microsoft Illustration

5. © Tesseract Management Systems / Managing by Design / 2002 - 5 Forward Motion TankTank CarburettorCarburettor Spark Plug CrankCrank FlywheelFlywheel DifferentialDifferential TyreTyre How Far? How Far? Capacity Wear Rate How Fast? How Fast? Mix Timing Limit Inertia How Smoothly? How Smoothly? Inertia Motion How Cheaply? How Cheaply? Wear Rate Mix WHAT IS A PROCESS? Process Thinking and Design:

6. © Tesseract Management Systems / Managing by Design / 2002 - 6 ????? ? Long Term Profitable Growth ? WHAT IS A PROCESS? What Do You Need From Your Business?

7. © Tesseract Management Systems / Managing by Design / 2002 - 7 HousekeepingITFacilitiesMaintenance BUSINESS AS A TAPESTRY OF PROCESSES Goods-inManufactureStoresQADistribution MarketingResearchContractsDesignDocument Control

8. © Tesseract Management Systems / Managing by Design / 2002 - 8 Product Delivery How Much? How Much? Number Rewards Speed Rate Size RecruitmentRecruitment AppraisalAppraisal DesignDesign FacilitiesFacilities PurchasingPurchasing ProductionProduction FinanceFinance WHAT IS A PROCESS? How can you get Right First Time otherwise?: How Fast? How Fast? Number Simple Cycle Flow How Accurately? How Accurately? Quality Flexible Growth Quality Relationship How Cheaply? How Cheaply? Focused Simple Cost Ease

9. © Tesseract Management Systems / Managing by Design / 2002 - 9 Change Processes Fundamental Change Trend Review Operating Processes Direct Delivery Support Process Redesign Implementation Plans Annual Review PROCESS HIERACHY Process Control Performance Mgt. Problem Solving Call Handling Report Generation Technical Support Training Shift Patterns Cleaning Management Processes Incremental Change Measurement

10. © Tesseract Management Systems / Managing by Design / 2002 - 10 An Organisation Disciplines /Activities (Synergy) X Y Z Business Areas/ Product Groups (Validity) K L M Processes (Effectiveness) ABCD BUSINESS IN 3 DIMENSIONS

11. © Tesseract Management Systems / Managing by Design / 2002 - 11 MODELS OF REALITY One Possible Model... Provide & Maintain Quality Mgt. System Ensure Compliance Plan & Control Finances Support (Control) Provide & Maintain Facilities Provide, Enable & Develop People R. Develop Information System Support (Enable) Provide & Maintain Supply Line Develop New Business Introduce & Maintain Products/Processes Plan & Distribute Products Manufacture Product Primary Process