1. BUSINESS PROCESS MANAGEMENT

2. RELATIONSHIP AN ORGANIZATION WITH CUSTOMERS

3. THE QUALITY MANAGEMENT SYSTEM ISO 9001:2008 & ISO 9004:2009 REQUIREMENTS

4. ISO 9001 & ISO 9004
ISO 9001 and ISO 9004 are quality management system standards which have been designed to complement each other, but can also be used independently.
ISO 9001 specifies requirements for a quality management system that can be used for internal application by organizations, or for certification, or for contractual purposes. It focuses on the effectiveness of the quality management system in meeting customer requirements.

5. RELATIONSHIP BETWEEN ISO 9001 & ISO 9004
The revised edition of ISO 9004 will provide guidance to management for achieving sustained success for any organization in a complex, demanding, and ever changing, environment.
ISO 9004 provides a wider focus on quality management. It addresses the needs and expectations of all interested parties and their satisfaction, by the systematic and continual improvement of the organization's performance. However, it is not intended for certification, regulatory or contractual use.

6. MANAGING FOR THE SUSTAINED SUCCESS OF AN ORGANIZATION
To achieve sustained success of the organization, top management should implement a quality management approach.
The organization's quality management system should be based on the eight principles. These principles describe concepts that are the foundation of an effective quality management system.
To achieve sustained success, top management should apply these principles to the organization's quality management system.

7. PRINCIPLE 1 – CUSTOMER FOCUS
Organizations depend on their customers and therefore should understand current and future customer needs, should meet customer requirements and strive to exceed customer expectations.
Key benefits:
Increased revenue and market share obtained through flexible and fast responses to market opportunities
Increased effectiveness in the use of the organization's resources to enhance customer satisfaction
Improved customer loyalty leading to repeat business

8. PRINCIPLE 1 – CUSTOMER FOCUS
Results of the applying:
Researching and understanding customer needs and expectations
Ensuring that the objectives of the organization are linked to customer needs and expectations
Communicating customer needs and expectations throughout the organization
Measuring customer satisfaction and acting on the results
Systematically managing customer relationships
Ensuring a balanced approach between satisfying customers and other interested parties (such as owners, employees, suppliers, financiers, local communities and society as a whole)

9. PRINCIPLE 2 – LEADERSHIP
Leaders establish unity of purpose and direction of the organization. They should create and maintain the internal environment in which people can become fully involved in achieving the organization's objectives.
Key benefits:
People will understand and be motivated towards the organization's goals and objectives
Activities are evaluated, aligned and implemented in a unified way
Miscommunication between levels of an organization will be minimized

10. PRINCIPLE 2 – LEADERSHIP
Results of the applying:
Considering the needs of all interested parties including customers, owners, employees, suppliers, financiers, local communities and society as a whole
Establishing a clear vision of the organization's future
Setting challenging goals and targets
Creating and sustaining shared values, fairness and ethical role models at all levels of the organization
Establishing trust and eliminating fear
Providing people with the required resources, training and freedom to act with responsibility and accountability
Inspiring, encouraging and recognizing people's contributions

11. PRINCIPLE 3 – INVOLVEMENT OF PEOPLE
People at all levels are the essence of an organization and their full involvement enables their abilities to be used for the organization's benefit.
Key benefits:
Motivated, committed and involved people within the organization
Innovation and creativity in furthering the organization's objectives
People being accountable for their own performance
People eager to participate in and contribute to continual improvement

12. PRINCIPLE 3 – INVOLVEMENT OF PEOPLE
Results of the applying:
People understanding the importance of their contribution and role in the organization
People identifying constraints to their performance
People accepting ownership of problems and their responsibility for solving them
People evaluating their performance against their personal goals and objectives
People actively seeking opportunities to enhance their competence, knowledge and experience
People freely sharing knowledge and experience
People openly discussing problems and issues

13. PRINCIPLE 4 – PROCESS APPROACH
A desired result is achieved more efficiently when activities and related resources are managed as a process.
Key benefits:
Lower costs and shorter cycle times through effective use of resources
Improved, consistent and predictable results
Focused and prioritized improvement opportunities

14. PRINCIPLE 4 – PROCESS APPROACH
Results of the applying:
Systematically defining the activities necessary to obtain a desired result
Establishing clear responsibility and accountability for managing key activities
Analysing and measuring of the capability of key activities
Identifying the interfaces of key activities within and between the functions of the organization
Focusing on the factors – such as resources, methods, and materials – that will improve key activities of the organization
Evaluating risks, consequences and impacts of activities on customers, suppliers and other interested parties

15. PRINCIPLE 5 – SYSTEM APPROACH TO MANAGEMENT
Identifying, understanding and managing interrelated processes as a system contributes to the organization's effectiveness and efficiency in achieving its objectives.
Key benefits:
Integration and alignment of the processes that will best achieve the desired results
Ability to focus effort on the key processes
Providing confidence to interested parties as to the consistency, effectiveness and efficiency of the organization

16. PRINCIPLE 5 – SYSTEM APPROACH TO MANAGEMENT
Results of the applying:
Structuring a system to achieve the organization's objectives in the most effective and efficient way
Understanding the interdependencies between the processes of the system
Structured approaches that harmonize and integrate processes
Providing a better understanding of the roles and responsibilities necessary for achieving common objectives and thereby reducing cross-functional barriers
Understanding organizational capabilities and establishing resource constraints prior to action
Targeting and defining how specific activities within a system should operate

17. PRINCIPLE 5 – SYSTEM APPROACH TO MANAGEMENT
Results of the applying:
Continually improving the system through measurement and evaluation

18. PRINCIPLE 6 – CONTINUAL IMPROVEMENT
Continual improvement of the organization's overall performance should be a permanent objective of the organization.
Key benefits:
Performance advantage through improved organizational capabilities
Alignment of improvement activities at all levels to an organization's strategic intent
Flexibility to react quickly to opportunities

19. PRINCIPLE 6 – CONTINUAL IMPROVEMENT
Results of the applying:
Employing a consistent organization-wide approach to continual improvement of the organization's performance
Providing people with training in the methods and tools of continual improvement
Making continual improvement of products, processes and systems an objective for every individual in the organization
Establishing goals to guide, and measures to track, continual improvement
Recognizing and acknowledging improvements

20. PRINCIPLE 7 – FACTUAL APPROACH TO DECISION MAKING
Effective decisions are based on the analysis of data and information.
Key benefits:
Informed decisions
An increased ability to demonstrate the effectiveness of past decisions through reference to factual records
Increased ability to review, challenge and change opinions and decisions

21. PRINCIPLE 7 – FACTUAL APPROACH TO DECISION MAKING
Results of the applying:
Ensuring that data and information are sufficiently accurate and reliable
Making data accessible to those who need it
Analysing data and information using valid methods
Making decisions and taking action based on factual analysis, balanced with experience and intuition

22. PRINCIPLE 8 – MUTUALLY BENEFICIAL SUPPLIER RELATIONSHIPS
An organization and its suppliers are interdependent and a mutually beneficial relationship enhances the ability of both to create value.
Key benefits:
Increased ability to create value for both parties
Flexibility and speed of joint responses to changing market or customer needs and expectations
Optimization of costs and resources

23. PRINCIPLE 8 – MUTUALLY BENEFICIAL SUPPLIER RELATIONSHIPS
Results of the applying:
Establishing relationships that balance short-term gains with long-term considerations
Pooling of expertise and resources with partners
Identifying and selecting key suppliers
Clear and open communication
Sharing information and future plans
Establishing joint development and improvement activities
Inspiring, encouraging and recognizing improvements and achievements by suppliers

24. PROCESS APPROACH
The International Standard promotes the adoption of a process approach when developing, implementing and improving the effectiveness of a quality management system, to enhance customer satisfaction by meeting customer requirements.
For an organization to function effectively, it has to determine and manage numerous linked activities. An activity or set of activities using resources, and managed in order to enable the transformation of inputs into outputs, can be considered as a process. Often the output from one process directly forms the input to the next.

25. A PROCESS
ISO 9000:2008 defines a "Process" as set of interrelated or interacting activities which transforms inputs into outputs.
Inputs to a process are generally outputs of other processes.
Processes in an organization are generally planned and carried out under controlled conditions to add value.
Inputs and outputs are generally products that may be tangible and/or intangible.
Examples of inputs and outputs may include equipment, materials, components, energy, information and financial resources, among others.
To perform activities within the process appropriate resources have to be allocated. A measurement system can be used to gather information and data to analyse process performance and/or input and output characteristics.

26. SCHEMATIC REPRESENTATION OF A PROCESS

27. CHAIN OF INTERRELATED PROCESSES

28. PROCESS APPROACH
The application of a system of processes within an organization, together with the identification and interactions of these processes, and their management to produce the desired outcome, can be referred to as the “process approach”.
An advantage of the process approach is the ongoing control that it provides over the linkage between the individual processes within the system of processes, as well as over their combination and interaction.

29. THE DEFENITIONS
A business process (BP) consists of a set of activities that are performed in coordination in an organizational and technical environment. These activities jointly realize a business goal.
Each business process is enacted by a single organization, but it may interact with business processes performed by other organizations.
Business process management (BPM) includes concepts, methods, and techniques to support the design, administration, configuration, enactment, and analysis of business processes.
The basis of business process management is the explicit representation of business processes with their activities and the execution constraints between them. Once business processes are defined, they can be subject to analysis, improvement, and enactment.

30. THE DEFENITIONS
A business process management system (BPMS) is a generic software system that is driven by explicit process representations to coordinate the enactment of business processes.
A business process model consists of a set of activity models and execution constraints between them. A business process instance represents a concrete case in the operational business of a company, consisting of activity instances. Each business process model acts as a blueprint for a set of business process instances, and each activity model acts as a blueprint for a set of activity instances.
Business process models are the main artefacts for implementing business processes. This implementation can be done by organizational rules and policies, but it can also be done by a software system, using a business process management system.

31. MAIN CONECEPT OF BUSINESS PROCESS MANAGEMENT
Business process management is based on the observation that each product that a company provides to the market is the outcome of a number of activities performed.
Business processes are the key instrument to organizing these activities and to improving the understanding of their interrelationships because each business process is enacted by one organization, and that business processes can interact with each other.

32. MAIN CONECEPT OF BUSINESS PROCESS MANAGEMENT
Information technology in general and information systems in particular deserve an important role in business process management, because more and more activities that a company performs are supported by information systems.
Business process activities can be performed by the company’s employees manually or by the help of information systems or can be enacted automatically by information systems, without any human involvement.
A company can reach its business goals in an efficient and effective manner only if people and other enterprise resources, such as information systems, play together well. Business processes are an important concept to facilitating this effective collaboration.

33. PROCESS MANAGEMENT
Processes are specific to an organization and vary depending on the type, size and level of maturity of the organization. The activities within each process should be determined and adapted to the size and distinctive features of the organization.
The organization should ensure the proactive management of all processes, including outsourced processes, to ensure that they are effective and efficient, in order to achieve its objectives. This can be facilitated by adopting a “process approach” that includes establishing processes, interdependencies, constraints and shared resources.
Processes and their interrelationships should be reviewed on a regular basis and suitable actions should be taken for their improvement.

34. PROCESS MANAGEMENT
The processes should be managed as a system by creating and understanding the networks of processes, their sequences and interactions. The consistent operation of this system is often referred to as the "systems approach to management". The network can be described in a map of the processes and their interfaces.

35. PROCESS PLANNING & CONTROL
The organization should determine and plan its processes and define the functions that are necessary for providing products that can continue to meet the needs and expectations of customers and other interested parties, on an ongoing basis. Processes should be planned and controlled to be in accordance with the organization's strategy and should address management activities, provision of resources, product realization, monitoring, measurement and reviewing activities.

36. PROCESS PLANNING & CONTROL
In the planning and control of processes, consideration should be given to:
analyses of the organization's environment
short- and long-term forecasts of market developments
the needs and expectations of the interested parties
objectives to be achieved
statutory and regulatory requirements
potential financial and other risks
process inputs and outputs
interactions with other processes
resources and information
activities and methods

37. PROCESS PLANNING & CONTROL
records that are required or desired
measurement, monitoring and analysis
corrective and preventive actions
improvement and/or innovation activities
Process planning should include consideration of the determined needs for the organization to develop or acquire new technologies, or develop new products or product features, for added value.

38. PROCESS RESPONSIBILITY AND AUTHORITY
For each process, the organization should appoint a process manager (often referred to as the “process owner") with defined responsibilities and authorities to establish, maintain, control and improve the process and its interaction with other processes. The process manager could be a person or a team, depending on the nature of the process and the organization's culture.
The organization should ensure that the responsibilities, authorities and roles of process managers are recognized throughout the organization, and that the people associated with the individual processes have the competences needed for the tasks and activities involved.

39. THE PROCESS-BASED QUALITY MANAGEMENT SYSTEM
The adoption of a quality management system should be a strategic decision of an organization.
The design and implementation of an organization's quality management system is influenced by:
its organizational environment, changes in that environment, and the risks associated with that environment
its varying needs
its particular objectives
the products it provides
the processes it employs
its size and organizational structure

40. THE PROCESS-BASED QUALITY MANAGEMENT SYSTEM
The organization shall establish, document, implement and maintain a quality management system and continually improve its effectiveness in accordance with the requirements of the International Standard:
determine the processes needed for the quality management system and their application throughout the organization
determine the sequence and interaction of these processes
determine criteria and methods needed to ensure that both the operation and control of these processes are effective
ensure the availability of resources and information necessary to support the operation and monitoring of these processes
monitor, measure where applicable, and analyse these processes

41. THE PROCESS-BASED QUALITY MANAGEMENT SYSTEM
implement actions necessary to achieve planned results and continual improvement of these processes.
These processes shall be managed by the organization in accordance with the requirements of the International Standard.
Where an organization chooses to outsource any process that affects product conformity to requirements, the organization shall ensure control over such processes. The type and extent of control to be applied to these outsourced processes shall be defined within the quality management system.

42. CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

43. THE MODEL OF A PROCESS-BASED QUALITY MANAGEMENT SYSTEM

44. THE “PLAN-DO-CHECK-ACT” CYCLE
(THE DEMING WHEEL)

45. THE P-D-C-A METHODOLOGY AND
THE PROCESS APPROACH

46. EXTENDED MODEL OF A PROCESS-BASED QUALITY MANAGEMENT SYSTEM

47. SCHEMATIC REPRESENTATION
OF TYPICAL QUALITY MANAGEMENT SYSTEM PROCESSES

48. TYPICAL NETWORK OF INTERACTING PROCESSES

49. A BUSINESS PROCESS LIFECYCLE

50. DESIGN AND ANALYSIS
The business process lifecycle is entered in the Design and Analysis phase, in which surveys on the business processes and their organizational and technical environment are conducted. Based on these surveys, business processes are identified, reviewed, validated, and represented by business process models.

51. CONFIGURATION
Once the business process model is designed and verified, it needs to be implemented:
by a set of policies and procedures that the employees of the enterprise need to comply with without any support by a dedicated business process management system
by using a dedicated software system

52. CONFIGURATION
An implementation platform is chosen during the configuration phase. The business process model is enhanced with technical information that facilitates the enactment of the process by the BPMS.
The system needs to be configured according to the organizational environment of the enterprise and the business processes whose enactment it should control. This configuration includes the interactions of the employees with the system as well as the integration of the existing software systems with the BPMS.

53. CONFIGURATION
Once the system is configured, the implementation of the business process needs to be tested. Traditional testing techniques from the software engineering area are used at the level of process activities to check, for instance, whether a software system exposes the expected behaviour.
At the process level, integration and performance tests are important for detecting potential run time problems during the configuration phase. After the test subphase is complete, the system is deployed in its target environment.
Depending on the particular setting, additional activities might be required (training of personnel and migration of application data to the new realization platform).

54. ENACTMENT
After the system configuration phase is completed, business process instances can be enacted. The process enactment phase encompasses the actual run time of the business process.
The BPMS actively controls the execution of business process instances as defined in the business process model. Process enactment needs to cater to a correct process orchestration, guaranteeing that the process activities are performed according to the execution constraints specified in the process model.
Process monitoring by the BPMS is an important mechanism for providing accurate information on the status of business process instances. Detailed information on the current state of process instances are available in a BPMS.

55. ENACTMENT
During business process enactment, valuable execution data is gathered, typically in some form of log file or data base.
These log information consists of ordered sets of log entries, indicating events that have occurred during business processes.
Log information is the basis for evaluation of processes in the next phase of the business process lifecycle.

56. EVALUATION
The evaluation phase uses information available to evaluate and improve business process models and their implementations. Execution logs are evaluated using business activity monitoring and process mining techniques. These techniques aim at identifying the quality of business process models and the adequacy of the execution environment.

57. STAKEHOLDERS
The chief process officer (at the top level management) is responsible for:
standardizing and harmonizing business processes in the enterprise
evolution of business processes in the presence of changing market requirements.
Business engineers are business domain experts responsible for defining strategic goals of the company and organizational business processes.
Process designers are responsible for modelling business processes by communicating with business domain experts and other stakeholders.
Process participants conduct the actual operational work during the enactment of business process instances.

58. STAKEHOLDERS
Knowledge workers are process participants who use software systems to perform activities in a business process.
Each business process model is assigned an individual who is responsible for the correct and efficient execution of all business processes using this model – Process responsible, who detects inefficiencies in the process and improves it in close collaboration with the process participants and the process designers.
System architects are responsible for developing and configuring BPMS so that the configured business process management system enacts the business processes in the context of the information systems infrastructure at hand.
Developers are information technology professionals who create software artefacts required to implement business processes.

59. WORKFLOW MANAGEMENT
Workflow is the automation of a business process, in whole or in part, during which documents, information, or tasks are passed from one participant to another for action, according to a set of procedural rules.
A workflow management system is a software system that defines, creates, and manages the execution of workflows through the use of software, running on one or more workflow engines, which is able to interpret the process definition, interact with workflow participants, and, where required, invoke the use of IT tools and applications. Workflow technology is capable of supporting business processes within a given application system or between a set of application systems, effectively integrating these systems. But workflow technology can also be used to enact business processes in which humans are actively involved, thus improving the collaboration between knowledge workers.

60. BUSINESS WORKFLOW DIAGRAM

61. WORKFLOW MANAGEMENT
A system workflow consists of activities that are implemented by software systems without any user involvement.
Workflows in which humans are actively involved and interact with information systems are called human interaction workflows.

62. CIRCULAR FLOW (ECONIMIC THEORY)

63. SUPPLY CHAIN MANAGEMENT (SCM) FROM RAW MATERIALS TO CONSUMER

64. SCHEME OF VALUE CREATION BY A BUSINESS PROCESS

65. SCHEME OF VALUE CREATION BY A NET OF BUSINESS PROCESSES

66. BUSINESS PROCESS MODELLING

67. REENGINEERING OF BUSINESS PROCESSES