4.2 Business Process Management for SCI

Question 1

Define two Process Innovation Approaches

Answer 1

• Exploitative Redesign (transactional)
• > does not question current SC
• > seeks to identify problems and resolve them incrementally (II SC)
• Explorative Redesign (transformational)
• > puts into question fundamental assumptions of current SC
• > aims to achive RI SC

Question 2

Name the five principles of Transformational/Radical (SC) Process Innovation

Answer 2

1. Capture information once and at the source
2. Subsume information-processing work into the real work that
   produces the information
3. Have those who use the output of the process drive the
   process
4. Put the decision point where the work is performed, and build
   control into the process
5. Treat geographically dispersed resources as though they were
   centralized.

Question 3

Define principle 1 and its components

Answer 3

Capture information once and at the Source

• shared data store
• self-service

Question 4

Define Principle 2 and its componts

Answer 4

Subsume Information-Processing work into the real work.

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Question 5

Define principle 3 and name its components

Answer 5

• Push work to the actor that has the incentive to do it

• vendor-managed inventory
• -> supplier/manufacturar takes control of inventory decisions
• -> upstream agent is in charge of storage for the downstream agent
• scan based trading
• -> process where suppliers maintain ownership of inventory within retailers’ warehouses or stores until items are scanned at the point of sale

Question 6

Name principle 4 and its components

Answer 6

-> Put the Decision Point Where the Work is Performed, and Build Control into the Process

• empower the process workers
• give info so they can decide themselves
• replace back-and-forth handover between workers and manager (transportation waste) with well desgined controls

Question 7

Name principle 5 and its components

Answer 7

Treat Geographically Dispersed
Resources as if They were Centralized

• If same people perform the same function in different
locations, integrate and share their work wherever
possible
• Larger resource pools  Less waiting times even with
relatively high resource utilization