BUSINESS PROCESS Devi Pratami

Industrial Engineering

ENGINEERING Faculty
 PROCESS
CLASSIFICATION
 PROCESS CLASSIFICATION
Historically identified by their association with function
or departments

One technique to identify process is to first identify the

functions that exist within an organizations

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 PROCESS CLASSIFICATION

Classified Relative to Organization

Boundaries
 Functional : contained within boundaries
 Cross-Functional : Extend beyond
boundaries

Classified Relative to Importance

 Core : Crucial to business success
 Supporting : Subordinate importance

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PROCESS CLASSIFICATION (EXAMPLE)

• Accounting • Marketing
• Distribution • Product Design
• Engineering • Production
• Finance • Purchasing
• Human Resources • Research &
• Information Development
Systems

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 PROCESS LEVEL

Organization : L0
Cross-Functional Process : L1
(extend beyond boundaries)
Functional Process : L2
(contain within boundaries)
Subprocess : L3
Activity : L4

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EXAMPLE :
Organization: BANK ABC
Cross-Functional Process : Finance
Functional Process: AP, AR, Invoicing, Payroll
and Credit/Loan
Sub-process of Payroll :updating employee
records, time reporting, job reporting, Electronic
transfer processing, etc
Activity
Task

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EXAMPLE :

Cross-Functional Process  teaching process

Functional Process :
 Determining course
 Determining lecturer
 Determining schedule and classroom
requirement
 Evaluation process: mid test/final test
 Estimating student score

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 PROCESS LEVEL (2)

STRATEGIC
Strategic Planning, business planning, financial oversight

TACTICAL
Technical Support, Recruitment

OPERATIONAL
Purchasing, Manufacturing, Sales & Marketing

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 PROCESS CATEGORIES :
 One technique for identifying process according to
the type of work being performed
 as opposed to the function in which it is performed
 Design And Development : The process of
determining the needs, requirements, and
customer expectations, the process of developing
products and services to fulfil customer needs o
 Marketing & Sales : Promotion, pricing,
packaging; Looking for new customers, serving
customers, selling process.
 Purchasing : purchasing process

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PROCESS CATEGORIES :

 Production : The process of transforming the

input into output, the services provided to the
customer
 Service : after-sale activities (maintain, repair)
 Distribution : Transportation, delivery product
to customer
 Control : Strategic Planning, business Planning,
and financial oversight.
 Support : legal guidance, health and safety,
training.

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 PROCESS DOCUMENTATION

Objective:

 Business process documentation

 Facilitate business process understanding
 Standardization: Process & time
 Facilitate evaluation, as initiation of
process improvement

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PROCESS DOCUMENTATION – BASED
ON PROCESS LEVEL
 Organization : L0 --- conceptual model
 Cross-Functional Process : L1 --- Functional
Flowchart
 Functional Process : L2 --- Flowchart
 Sub-process : L3
 Activity : L4

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DOCUMENTATION TYPE

 Block Diagram
 Standard Flowchart
 Functional Flowchart
 Functional Time Line Flowchart

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BLOCK DIAGRAM

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STANDARD FLOW CHART

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SYMBOL

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FUNCTIONAL FLOW CHART – ORDER
PROCESSING

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CROSS FUNCTIONAL
FLOWCHART

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CROSS - FUNCTIONAL FLOW
CHART

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CROSS - FUNCTIONAL FLOW
CHART

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FUNCTIONAL TIME LINE - FLOW
CHART

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GEOGRAPHIC - FLOW CHART
 Document the physical layout of the area or areas
where the process is completed
 Place labels on the layout to describe the various areas
 Identify each input or output, identify all movement of
the resources (i.e. where it originates, any interim
storage, where it is placed or routed at the end of the
process)
 Add each movement of resources to the flowchart. Use
broken lines to represent the movement of resources
throughout the process
 Label each line to identify the resource

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GEOGRAPHIC - FLOW CHART

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