Process can be defined as creating a value for a product through a set of activities receiving inputs and turning them into outputs. This clearly indicates that the an organization needs a set of processes such as procurement, design, customer management, production, maintenance, quality assurance, shipment, auditing etc. in order to achieve its outputs.
Process management is one of the promoting approaches in industry especially in the last decade. Instead of managing the overall organization through a hierarchical structure, a set of specific processes are defined and each process is managed by its respective process owner and team.
Benefits of process management
Process management provides huge amount of benefits some of them are listed below.
· Process management provide task/process oriented control through defining every tasks needed for a specific business functionality such as production
· Process management provides process flow charts indicating the relationship of the activities and providing an overall map of information and material flow within the enterprise. This will surely remove non-value adding activities and make sure that the employees concentrate on value generating tasks.
· Process management identifies a responsible process owner for each process and a process team who will not only be responsible for performing their tasks but also defining process improvements for doing the tasks in a better way.
· Process management creates a set of process goals and objectives which will be guidelines for the process team.
· Process management identifies customers and suppliers of each process as well inputs and outputs expected form the respective process. This ensures that all information and material arrive timely and in expected quality to the operation site and highlight problems if any.
· Process management outlines a set of performance indicators to measure how good the process is implemented and the process objectives are fully satisfied.
· Process management identifies areas requiring improvements and makes sure that those improvements are achieved.
5M Process Management Model
5M established a process management model which ensures process management in 3 stages.
Stage 1: Defining and designing processes applicable to the enterprise
1. Activitiy Grouping
2. Process flow charts
3. Detailed process definitions
4. Process performance indicators and target values
Stage 2: Monitoring processes
1. Monitoring time schedule
2. Monitoring Periods
3. Data collection methods
4. Measurement methods
Stage 3: Process improvement
1. Gap analysis
2. Benchmarknig
3. Feed Back
Please see the references on implementing Process Management Model activities
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