Process Concept Unisba R1

8/6/2019 Process Concept Unisba R1

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businessbusiness processprocess conceptconcept

((konsep proses bisnis)konsep proses bisnis)

Kristanto [email protected]



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presentasi pada:presentasi pada:Seminar & Workshop Proses BisnisSeminar & Workshop Proses Bisnis"Meningkatkan Daya Saing Global""Meningkatkan Daya Saing Global"

77 --8 Desember 20058 Desember 2005Aula Utama UNISBAAula Utama UNISBA

Bandung, 7 Desember 2005Bandung, 7 Desember 2005



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Function & ProcessFunction & ProcessPhilosophyPhilosophy

Physical vs. Metaphysical

Static vs. Dynamic

Constant vs. ChangeThe Theory of Creation vs. The Theory of Evolution

Unchanging and Absolute God vs. Sensitive and Caring God

FunctionsFunctions vs. Processesvs. Processes

JobsJobs vs Rolesvs Roles

Concepts such as creativity, freedom, novelty,emergence, and growth are fundamental explanatory

categories for process philosophy



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We still live in Functional & DOW EraWe still live in Functional & DOW Era



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““ModernModern ”” organizations have been organized accordingorganizations have been organized accordingto theto the idea of idea of specialization of labor specialization of labor of Adam Smith.of Adam Smith.This idea argues that works have to be fragmented intoThis idea argues that works have to be fragmented intosimple tasks which are normally performed by onesimple tasks which are normally performed by oneperson.person.

The Division of WorkThe Division of WorkPrinciplesPrinciples



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The Principles of ScientificThe Principles of Scientific

Management, 1911Management, 1911

If you and your workman have become so skillful that you andhe together are making two pairs of shoes in a day, while your competitor and his workman are making only one pair, it is clear that after selling your two pairs of shoes you can pay your workman much higher wages than your competitor whoproduces only one pair of shoes is able to pay his man, and thatthere will still be enough money left over for you to have a larger profit than your competitor.



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The Principles of ScientificThe Principles of ScientificManagement, 1911Management, 1911

The principal object of management should be to secure themaximum prosperity for the employer, coupled with the maximum

prosperity for each employee.

In the same way maximum prosperity for each employ, means notonly higher wages than are usually received by men of his class,but, of more importance still, it also means the development of each man to his state of maximum efficiency, so that he may beable to do; generally speaking, the highest grade of work for which his natural abilities fit him, and it further means giving him,when possible, this class of work to do.



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Although Fayol and Taylor were working on the same problem,Taylor of the factory upwards, Fayol of the meeting of directionsdownwards. The approach of Taylor dealt with I specify it of

analysis of positions, movements of the workers and standards of times; Fayol however saw the administration like a teachabletheory that it dealed with planning, organization, direction,coordination and control.

Henry Fayol (1841 - ….) : “Applying the Divisionof Work into Managerial Functions and Levels

of Management”



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Whereas the Scientific Management approach of Taylor, were theadministration at factory level, the attention of Fayol is directedto the activities of all the administrators.

It described the practice of the administration like somethingdifferent from the accounting, the finances, the production,distribution and to other typical commercial functions.



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Adam Smith was right !! *

* to include his disciples, a.o. Taylor, Fayol, Weber, Ford, and Sloans



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We areWe are ““ EnteringEntering ”” the Era of Processthe Era of Process



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The Emerging New Paradigm of BusinessThe Emerging New Paradigm of Business

From : To :

Suppliers Power Demand > Supply

MassificationControl

One Best WayIndustrial Society

Bureaucracy & OrderlinessCorporationsLabor Power

Customer Power Supply >> DemandDemassificationEmpowermentBest Practices & KaizenInformation SocietySpeed & ChangeDynamic NetworkBrain Power



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ChangeChange --> Process> Process OrientationOrientation

The orientation of the company towards business processes becomes the key factor

for the continuous improvement in the areas cost, quality and innovation cycles!

I n t e n s

i t y o f

c o m p e

t i t i o n

Customer demandslow high

low

high

Static,Functional-oriented

companies

dynamic,process-oriented

companies

ChangeChangeChange

Between increasing customer expectations and increasing intensity in the competition,only those companies will be successful in the long term that are able to reactdynamically to changes and that are structured on the basis of process orientation.



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– A process is any activity or series of activities thattakes an input, add value to it, and provides

output to a customer – A sequence of activities the obtain results"

(Wildemann)

– A set of interlinked means and activities, thatconvert input into results"(ISO 8402)

The two major types of processes are:• production processes• business processes

WHAT IS A PROCESSWHAT IS A PROCESS (in BUSINESS) ?(in BUSINESS) ?



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WHAT IS A BUSINESS PROCESS ?WHAT IS A BUSINESS PROCESS ?

A business process is a series of logical, related

activities that utilize resources to provide specificresults required to achieve a basic businessobjective.

It is all the activities in which we do not touch theproduct that is sold to the customer.



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Functionally structured OrganizationsFunctionally structured Organizations

Characteristics are:

• “Fragmented”• Aimed at vertical and functional matters• Many control activities• Emphasizes high/low relationships• Encourages relation dependence

• Information is “secret”



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Process based OrganizationProcess based Organization

Characteristics:

• Entire tasks

• Aimed at horizontal processes towards client

• Control, as this adds value .. (otherwise .. NO)

• Emphasizes interdependence and uniting leadership• Emphasizes interdependence of independent persons

• “Security” is sought in individually added value

• Information is accessible



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Processed based organizationProcessed based organization

Advantages are:

• No boundaries, but interconnections• Customer focused: what is the added value?• Steering activities instead of steering people• Communication because it is useful (fulfilling the needs of

customer)• Decision making is matching & customising• Functional service provision is a process



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How Does Functional Organization Differ How Does Functional Organization Differ from Process Based Organization ?from Process Based Organization ?



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A FunctionalA Functional ViewView oo f f anan OrganizationOrganization

Senior Senior

ManagementManagement

Sales andSales andmarketingmarketing EngineeringEngineering ManufacturingManufacturing DistributionDistribution



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A Process View of A Process View of anan OrganizationOrganization

ManufacturingManufacturingManufacturing

EngineeringEngineeringEngineering

DistributionDistributionDistribution

Sales andmarketingSales andSales andmarketingmarketing

SuppliersSuppliersSuppliers CustomersCustomersCustomers



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fromfrom FunctionsFunctions toto ProcessesProcesses

To

BusinessProcess

Product Developmentand IntroductionCustomer Order acceptance and Fulfillment

Operations and Logistics

Field Service andCustomer Support Administrative Support

FromFunctional

PURCH ASING

ACCOUNTING

M ANUF

ACTURIN

G

DISTRIBUTION



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““ SuperimposedSuperimposed ”” View of View of Functional &Functional &Process basedProcess based OrganizationOrganization



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Thank YouThank You

Process Concept Unisba R1

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