Engelm. L2

Question 1

Definition of the term ´process´

Answer 1

- A process is a system of
actions
- A system consists out of
objects, which interact with
each other.
- An action is conducted by a
machine or a human.

Distinction between processes:

• Benefit for the customer
• Benefit for the company

Question 2

Functional organisations

Answer 2

Typical attributes
¾ High degree of operation-orientation
¾ High degree of specialisation
¾ Direct instructions and directives
¾ Centralized decision making on the level of
senior management
¾ Unity of command („every employee has one
superior, every superior has several employees“)
Challenge
¾ Increasing product variance and market
dynamics
¾ Increasing customer orientation
ð Efforts for coordinations and motivations
increase
ð Increasing problems of coordination
ð Advantage of specialisation decrease

Question 3

Cross-organizational view of value creation

Answer 3

§ Processes pass over departmental boundaries
§ Processes go beyond company boundaries
§ There exist critical processes from the customer’s
point of view

Question 4

Customer orientation

Answer 4

Order, request, requirement (circle)

§ Sequence of activities
§ Coming from customer, ending at customer
§ Covers Internal and external customers

Question 5

Process pyramid

Answer 5

Management process
- Leadership

Strategic processes - strategic level [R & D, strategical marketing]

Core & opportunistic processes - Tactical level [Tactical marketing, order
processing, production,
sales, service] - do things right

Supporting processes - Accounting, human ressources,
treasury, legal department, IT, QM,
facility management

Question 6

Process portfolio

Answer 6

x - Customer benefit
y - company benefit

x high, y high - Core processes
(Order processing, Production, Marketing, Sales, After Sales)

x high, y low - Opportunistic
processes
(After Sales, Qualiy- and risk
management)

x low, y low - Supporting
processes
(Costaccounting, Bookkeeping, Human ressources)

x low, y high - Mgmt. & strategic
processes
(Strategic marketing, Purchasing, Research and
development)