Process Mapping, Logistics and Retail Management Emerging Issues - Term Paper Example

1.0 Introduction The process of business mapping refers to activities involved in the general business entity that ensures the processes required in a particular business are successful(Johnson et al, 2008).The main aim of ensuring that there is a clear mapping process is because it enables the company to achieve its maximum level of efficiency(Johnson et al, 2008). The reason behind this is that, the business processes evaluates the company’s specific objectives and helps the facilitators to measure, compare and contrast the processes that are aligned with the capabilities of the company(Jager, 2014). The mapping of businesses processes or rather the business process management (BPM) is more prevalent and adoptable especially in the recent years(Johnson et al, 2008). The process maps or charts identified are relevant in every section of life that pertains to business. One may arrive to the most appropriate process in four steps; process identification, gathering of information, understanding the people or customer’s point of view and lastly carrying out analyses that help the process run smoothly(Jager, 2014). The adoption of a particular business process creates a success driven management model that enables the creation of a stable process of interaction in the departments of the business as well as a solid foundation for inter-process relations(Johnson et al, 2008). Having a reasonable mapping process of business as often had success in large market enterprises (LME) but faced various challenges in the small and medium enterprises (SME)(Jager, 2014).This research therefore seeks to address certain issues in relation to this context by first understanding the business process functional areas that affect the general flexibility of a business model(Johnson et al, 2008). Then, the research will evaluate various Business Processes management that may be useful in the solving of various practical issues in business, as well as, a slight overview of the general problems faced in the diverse business contexts(Jager, 2014). 1.2 Elements of process mapping There are a number of elements that make up an ideal process mapping in business, most off which relies on the use of charts and graphs in the business processes (Johnson et al, 2008). Understanding the mapping processes therefore and the capability of improving the same are very important in business. Process flow charts in businesses can therefore incorporate a larger number of information providing details to a large number areas involved(Johnson et al, 2008).The main types of these flow charts are the high-level flowchart, the activity flowchart and the taskflowchart. These charts generally show increasing details in different areas of business Diagram 1 showing an example of a flow chat used in showing the processes in the small business(Jager, 2014) 1.2 Benefits of process mapping It is the strategic analysis concerned with the creating a visual depiction the flow or chain of command in the business process(Johnson et al, 2008). This process has a number of benefits to the business world because first, it create a systematic chain of command from procurement, to manufacturing, to good and quality business control and lastly, the distribution of the ready merchandise(Johnson et al, 2008). So to say the least, the main and the most important aspect of the mapping process is that it improves the company’s efficiency and lowers the cost of production. The second benefit of the mapping process is that, it is useful in the problem solving aspects of these business processes (Jager, 2014). This is to say that once there is a particular chain of command and a number of departments related to the case at hand, it is easy to identify any mistakes or inefficiencies by comparing the books in two different areas(Johnson et al, 2008). The use of elaborate flow charts and the graphs among other forms of presentation makes it easier to identify faults and inconsistencies. Finally yet importantly, there is the fact that mapping enables the training of employees, consumers or service providers especially in the orientation context(Johnson et al, 2008). The reason behind this is that, the use of flow charts provides a visual accompaniment of the actual information making processes easier to understand and hence effective in understanding the processes better(Johnson et al, 2008). Generally, the charts, graphs and overall aspects of process mapping help to grasp information more accurately(Jager, 2014). 1.3 Business Functional Areas, Business Functions, and Business Processes Historically, many companies opt to organize themselves according to their pre-set business function (Parry, 2013). Many functional areas of business are divided into the four main functional areas. The marketing and sales department, supply chain management, accounting and finance, and the human resource area (Parry, 2013). Other areas may also include the administration and support of the IT department and the general research and development mechanisms (Parry, 2013). Each of these areas are divided further into narrower functions specific to ensuring the process goes hand in hand with the desired goal of the company. Diagram 2 showing the four business processes that make up the functional area of operation The above processes and smaller activities combine to create an input effect into the business which eventually results into a viable output (Parry, 2013). The main objectives of most companies revolve aroundunderstanding functional structure of all companies small, medium or large (Parry, 2013). In the process, there is the comprehending of the overall data flow between varying organizational areas hence understanding the most fundamental process to achieve results. Sustainability of an ongoing business ought to put the viability of the target market at the back of their minds at all times (Parry, 2013). There is also the aspect of investment by owners and the continued regulation of various government authorities which ought to be put into consideration to ensure the responsibility of the stakeholders and those in charge is put in order. Despite the administration sectors of the business, there is also the Enterprise Resource Planning(ERP) that requires the integration of all the departments to regulate the resources utilized at any given time (Parry, 2013). With this therefore, there will be the cross functional relationship that supports information sharing i n various processes. Generally, participation and overall efficiency is yet again enhanced and numerous kinds of relevant opinions and results are integrated into the information system (Parry, 2013). Below is a sight overview of the processes considered in mapping of business processes and the function that each one of them carries out (Parry, 2013). . 1.3.1 Marketing and Sales (M/S) Almost all business functions are centered on marketing and sales as one of the fundamental pillars (Parry, 2013). It is an operational and functional area of business as it is where the publicizing of the products and the overall awareness is made. The functions under this category include; marketing of the product in itself, sales focusing, and customer support in the operation, taking and delivering of orders, advertising and sustaining of company-customer relationships. Functions Diagram 3 showing the functions under the marketing and sales department 1.3.2 Supply Chain Management (SCM) Here there is the purchasing and receiving of raw materials by the company to start on the production and manufacturing processes (Fernie, 2009). Once the products are ready, they are shipped to the customer that made the order and hence the transportation and overall logistics are within this context (Kaplan, 2011) .The production schedules and the manufacturing of goods are also part of this process with the sustenance and maintenance of the plant being inclusive of the process. The process is referred to as a chain process because it connects one activity to another and the next to another and so on (Fernie, 2009). The actual production process of products is therefore mainly within this category and the management ensures quality products, sustainability, cost effectiveness and overall maintenance (Kaplan, 2011). Functions Diagram 4 showing the processes within the supply chain management 1.3.3 Accounting and Finance (A/F) The financial aspect of any business is of utmost importance and therefore, the business area that comprises of the accounting of all the goods, services, profits and expenditure are within this group (Kaplan, 2011). The functions, besides financial accounting also include, the cost allocation of all processes in the company, the planning of all the procedures, tasks and processes by allocating funds or materials depending, paying f the employees and renovation of the company buildings among many others (Kaplan, 2011). The general cash-flow management therefore, finds regulation and critical analysis in this functional department. Functions Diagram 5 showing the functions facilitated under the accounting and finance department 1.3.4 Human Resources (HR) The recruiting, hiring, training and general well-being of the staff in any company or business is under this department. The same people in this functional area are responsible for the payroll, the benefits that the company finds fit for their employees (Fernie, 2009). Similarly, the need to make sure that there is compliance with the government rules and regulations at all times is a major responsibility in this department. Diagram 6 Functions 2.0 MA PPING BUSINESS PROCESSES 2.1 Motivational Scenarios in mapping business processes There are various efforts carried out in relevance to the mapping of business processes and numerous literatures addressthese aspects in the day-to-day proceedings of businesses (Kaplan, 2011). For instance, there are a number of motivational scenarios in the adoption of the processes, and then there are the specifics that affect only the small markets in the process. The use of different motivations arrive at different products of business hence, there is need for setting and adoption of specific goals that differ according to the different circumstances in the business in question. These specific circumstances can be categorized as; business process re-engineering, quality management and process automation and information system. Business Process Re-Engineering This is very important in the business processes sine it was introduced early in the 90’s. (Fernie, 2009) It brings about need for articulation of change in the already operational business processes by either enhancing the one in use or incorporating a new one. The stakeholders of the company in most cases are people behind the rjrr6ealization of unfavorable business processes (Fernie, 2009). The reengineering s therefore so that the business may achieve better efficiency and eventually improve the capabilities of the company and the business as a whole (Kaplan, 2011). In other cases, there is the continued growth or evolution in the business that may require new approaches and hence those responsible find better ways of handling the new issues by coming up with re-engineered initiatives. Quality Management Quality management should be the first step towards arriving to a preferable business process because it is all about acquiring better control of the business and ensuring that the products that come from the business are suitable enough for the target market (Fernie, 2009). To acquire good business regulation and control, there is the need to measure out the inputs in the company, the outputs the company produces and hence establishing which business process works at all times. This motivation in the mapping process is very important in the companies that often promise a certain quality or distinction in the products they eventually come up with. The challenge that may be faced in this situation however is the Six Sigma in the manufacturing context that may not be suitable in small businesses most of the time (Fernie, 2009). Therefore, the measurement of the quality of any work is done in the input processes of the business, and the evaluation of the successes or the failures of the same is evaluated in the outputs. All in all, thee business process management in this case, results in the improvement of the measurability of my areas in the business. Process Automation and Information Systems Development The technical aspects of business processes ii also equally represented with the use of the automation processes viable in the information systems initiatives (Fernie, 2009). With the rapid development and change in technology, there is the motivation for the business administrators to ensure that all aspects of the information system are executable. The transformation could be done in a way that suits numerous scenarios instead of the basic traditional aspects. Automation processes are however most valid only in circumstances that make sense and bring value to the company. 2.2 Business processes in the Small Market Enterprise Context Business process covers all areas starting from business analysis, modeling, monitoring and execution to improve the optimization process of business (Fernie, 2009). In the early incorporation of business processes, the companies were more concerned with the technologic aspects and it was all about improving the automation process to keep up with the changing times. However, with time, business practitioners realized that the management process and the organizational advancements were equally important. Regardless, the focus on the technical aspects has derived success in many areas of business especially in automation of services in corporations such as banking companies and insurance operations(Bruno, 2014). The problem with adopting the technical aspect in the SME however, may be disappointing because the systems and capabilities are all minimal compared to the high levels required by most business processes today (Fernie, 2009). This therefore makes it look rather useless to struggle with implementing a great ICT system for example, in a model whose hierarchical position has no clear line of command and articulation. This generally show that with the SME there will always be the need for specialized attention an what not making the process different and more difficult than in larger enterprises. 2.2.1 SME Motivation Various factors may affect the overall operations off the small and medium enterprises when mapping business processes (Fernie, 2009). If the processes are managed well though, the business convenience and agility also boosts the ability of the company to evaluate scenarios as well as they are done in the larger businesses hence resulting to better innovation, acquisition of knowledge, inter-relations in thee departments among others(Fernie, 2009). The competitive advantage with the larger companies is also significantly improved and hence customer requirements meant in markets targeted(Bruno, 2014). Every company however ought to realize that in the preparation of varying business processes, there is need to be dynamic and to react fast in the adoption of change to keep the relationship between the organizational process and the goals still in check(Bruno, 2014). Once there is this relationship or link, there is the ability to measure the success rates or otherwise and to work on improving the same along the way (Fernie, 2009). In this way, there can be the redesigning of pertinent matters of business and the improvement of the same with far much less struggle than the exploitation of the marketplace conditions (Kaplan, 2011). 2.3 Differences in the Business mapping processes between the SMEs and the LMEs Various literature reviews show that in the business process, the SMEs need specific attention in arriving at the best processes of business process mapping and management. In most cases there have been the four main conditions that explain the reasons why this is the case in the market and not in the large market enterprises LME(Bruno, 2014). They include the need for specific requirements in the SMEs compared to the LMEs, the lack of internal manpower of the SMEs, the rigidity and use of ad-hoc methods and lastly, the need for customized methodologies(Bruno, 2014). 2.3.1 Specific requirements There is a need to comply with a number of requirements in the SMEs so that there is the achievement of a particular to outcome (Construction research congress et al, 2010). If there is a certain successful approach used in the LMEs, they have to alter and re-evaluate to me sense for the SMEs which my e time consuming and may lose its essence along the way (Construction research congress et al, 2010). As an empirical study, there is a case scenario whereby several employees in a particular SME in Belgium fund out that most company objectives and goal were only placed important f the adoption of a particular business plan was successful (Construction research congress et al, 2010). It shows that there is so much planning that goes with the process of improving the business that in one way or another, the whole process might have lost the viability (Kaplan, 2011). This is because of the need to specifically evaluate and fit in all the relevant requirements to achieve success in the business. 2.3.2 Flexibility There are certain ad-hoc methods that are operational in small market enterprises that make the entire process rigid hence lacking the necessary flexibility in business processes (Construction research congress et al, 2010). In real sense, any business process must not reduce the flexibility of the company or the process within it and ye the SMEs have this problem from time to time. Keeping up with the changes in the dynamic world of business is of utmostimportance (Construction research congress et al, 2010). Existing processes that have ways to deal with Small and large business enterprises may not be able to keepup with a new change in the business world hence resulting in poor profit yields compared to other companies(Bruno, 2014). Many companies however choose to further improve the existing ad hoc methods and the yields improve but they are nonetheless, less comparable to the processesof the companies that follow a whole new direction (Construction research congress et al, 2010). Research shows that numerous companies adopt the ‘knowledge work’ option that deals with the choosing a desired order of task that differ from task to task and are able to cover all scenarios even the new ones that come up (Construction research congress et al, 2010). It can be hard to establish the models in this case hence could make the process the more complicate and unreliable and hence special attention is continuously drawn on the need for more flexibility. There are various sources that try to solve the issue of flexibility though most processes are still implementation-specific hence still as rigid as the ad-hoc systems (Construction research congress et al, 2010). Surveys show that there are still current advancements dedicate to the flexibility aspect of the process and that the successes of these processes are more in the LMEs but improvement is evident under the SMEs. 2.3.3 Lack of internal man power Without enough manpower, carrying out of various business processes may be harder and hence an obstacle in the process (Parry, 2013). This means that, when mapping the prospective business strategies, there is the possibility that certain aspects may not cut it or may not have value as they are required. The processes preferred in this case therefore must lack agility and should be in a way that the manpower it will require will be minimal and achievable (Construction research congress et al, 2010). This makes it one of the differences compared to the LMEs and may hence raise the need for more investment, capital and other alternatives that may alleviate the situation. Likewise, due to the limited amount of manpower, there is the limited access to the advanced skills, as well as, constant search for new and hopefully effective ways that may be all the same, time-consuming and ineffective (Kaplan, 2011). With proper human resource utilization and external and internal team cooperation, there is likely to be less negative effect on the general performance in the small markets (Parry, 2013). 2.3.4Methodology Adaptability The need for customization of methods adopted to suit the SMEs is a major problem that may affect the companies over time (Construction research congress et al, 2010). Sustainability of methods in the processes especially business related ones find that the design of operation is limited in a way that may not be of benefit for a long period of time (Kaplan, 2011). 3.1 Improvement of the business mapping process to suit the LMEs and the SMEs As seen above, there is need for adoption of various steps to improve the situation in the mapping process of various businesses (Construction research congress et al, 2010). This process can be achieved in a number of ways, namely; streamlining, redesigning, re-engineering, and perhaps the use of the six sigma method. 3.1 Streamlining This process involves looking at a process that is already existing and finding ways to either eliminate or combine various other aspects on in a number of ways (Kaplan, 2011). Firstly, there is the removal of all non-value adding parts in the process; there can also be combining of steps that exist with new ones to suit the desired outcome (Parry, 2013). In the meantime a reduction in the number off check-ins and approval referrals may also be of benefit. 3.1.2 Re-design As the word is self-explanatory, redesigning is all about changing the layouts used, getting new technological advancements, finding good administrative tactics different from the existing ones among many others (Parry, 2013). Many at times people tend to favour automation as redesigning option, as well as, standardizing off skills used in the businesses process. 3.1.3 Re-engineering This is all about adoption of new reviews, new structures of organization or management or improvement of core processes either by new equipment or better evaluation as in core processes (Construction research congress et al, 2010). The end product in this case ought to increase both efficiency and effectiveness of the company at all costs(Bruno, 2014). 3.1.4 Use of the Six Sigma approach Six Sigma is a technique or rather a collection of techniques used in the process of businessimprovement(Bruno, 2014). It works by understanding the defects in a system and working towards elimination of the defects (Kaplan, 2011). It uses good quality management methods that create stable infrastructure within the organization(Bruno, 2014). Generally, this technique has in many ways reduced the processing cycle, reduce pollution, reduced costs, increased profits, cut on losses and balanced customer satisfaction (Construction research congress et al, 2010).This term or approach originally came from the manufacturing processes and the sigma rating can in a way calculate yields excluding the defects incurred. The Six Sigma doctrine The doctrine above has various assertions in the business processes that include; first, there is need to ensure there are continuous efforts to achieve strong and stable results (Kaplan, 2011). Secondly, there is the importance of commitment of the entire organization in the top-level management to improve the activities in the business setting (Kaplan, 2011). Thirdly, the manufacturing process among other business processes can be measured and evaluated due to characteristics that are within the general process of analysis and control. The clear feature that therefore sets this form of improvement apartfrom all others is that, there is the emphasis on management and good leadership and not solely on the production process (Parry, 2013). Secondly, commitment in decision making creates a platform to promote verifiable statistical methods an analysis instead on acting on assumptions and finally, there is the financial returns which more achievably measurable compare to the other methods. 4.1 Recommendations; enhancing the effectiveness of the mapping process upon improvement Process maps are used to improve the understanding of processes but in most circumstances, the understanding of the mapping process may be complicated or unachievable (Construction research congress et al, 2010). Better understanding can however be established in several different levels each of them depending on the service and the approach. These simple steps that can be used include; 4.1.1 Understanding the individual processes Process maps are set to ensure that there is proper understanding of the process which the aps are for starting from the inputs in question, the outputs, thee resources and so on (Parry, 2013). There are also the values that will be derived and others that will cause restrains that are also made part of the process to ensure that all the aspects of the work are considered. Similarly, understanding oneself and thee staff involve is a good measure in this process because the weaknesses and strengths of various processes are evaluated and decided upon (Construction research congress et al, 2010). Once the staff and the administration are at per on the functioning of the process, it becomes easier to achieve a number of goals and establishments. 4.1.2 Business processes should link with those of your partners In is possible in every business to have shareholders, stakeholders and supports systems most of whom make partners and other solid customers (Construction research congress et al, 2010). For business processes to be mapped in a way that it is most likely to succeed, all internal and external avenues from the agencies to the partners at all levels should be in the same level and made aware of all processes at all times (Construction research congress et al, 2010). Charts such as the employment chart may be of use in this kind of instance to show various allocations of responsibilities activities between the company’s and the partners especially when reliant to the said partners(Bruno, 2014) . 4.1.3 Benchmark your processes Benchmarking of the processes in the organization enable sufficient comparisons with those of other businesses and may in some way be a convenient move in gaining a competitive edge (Kaplan, 2011). Similarly, it may be a good opportunity to identify areas of possible improvement and growth because one may evaluate the resources, inputs, costs and outputs and understand exactly what could be missing out in the process (Parry, 2013). Due to the clear articulation on a map, organizations are able to compare the performance and to identify suitable opportunities of improvement (Construction research congress et al, 2010). Similarly, the clear articulation of data helps evaluate how the financial aspects are and the costs that were reduced or others gained butt in the end, all parties to a business are kept aware (Construction research congress et al, 2010). The avoidance of getting onto laborious, time consuming, detailed and perhaps complicated methods of calculation make the process efficient. 4.1.4 Further Improvement of your processes Once all the above processes and awareness is clear and understandable, the company’s administration and the concerned partners now have the opportunities to look for further ways of improving either by; re-designing, re-engineering, streamlining or maybe any other advancement that may be in place at the time (Construction research congress et al, 2010). Likewise, simplifying the process of business, removing further tasks that have no value adding opportunities, re-aligning tasks and other responsibilities within the office will also play a similarly large role in the enhancing of the process as a whole (Kaplan, 2011). 5.0 Summary Process mapping generally refers to a particular background that concerns itself with ensuring that all parts of the organization are functioning properly (Construction research congress et al, 2010). This is in the way that the company is profitable and at the same time, the target customers are content with both the products and the services that the organization has to offer(Bruno, 2014). Elimination of wastes, especially in the context of areas that have no value added profits to the company and gives meaning in varying areas of the organization (Parry, 2013). There are many tools and techniques that are suitable in this context, putting in mind especially the areas of functional business such as the supply chain, the marketing the financial sector and the human resource (Kaplan, 2011). There are different approaches suitable to both the SMEs and the LMEs due to the differences in capabilities but the research shows that the re-designing, re-engineering, streamlining and other alternatives may improve the situation with the recommendable approaches to ensure success (Kaplan, 2011). All in all his process dos not only encourage the administration but also the staff and the consumers in a way that services rendered are of good quality (Construction research congress et al, 2010). Lastly, the process of mapping does not entirely involve the use of fancy and detailed diagrams, instead, its al about improving services and eventually performance. References Primary sources Bruno, G. (2014). 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