1. What is advantage of managing by Processes?
2. How does Process Management differ from ABM?
3. How does Process Management differ from Quality/Six Sigma?
4. How does Process Management differ from Reengineering?
5. Does Process Management support Supply Chain Management?

1. What is advantage of managing by Processes

Managing by processes enables an organization to:

• better understand entire process rather than just looking at one department or cost center.
• puts someone in charge of entire process rather than have everyone trying to optimize their cost center
• views organization from eyes of consumer
• create performance measures for cost, time, quality of cross-functional processes.

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2. How does Process Management differ from ABM?

Activity Based Management and Process Management can overlap to a great extent or they can be quite different depending on how they are used.  Depending on how you define each of these, one could argue that either could be subset of the other.  What is important is to look at the components rather than to argue which is subset of the other.

Does the organization:

• have all its major processes defined
• have a senior manager responsible for and compensated for entire cross-functional process
• have all its processes documented
• have all process suppliers and customers identified
• have employees aware of how they affect process and have them compensated for performance of entire process and not just their department or cost center
• have performance measures for cost, time, and quality for entire process as well as individual activities within process
• have process improvement targets

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3. How does Process Management differ from Quality/Six Sigma?

Quality/Six Sigma/Malcolm Baldrige/ISO 9000 and Process Management can overlap to a great extent or they can be quite different depending on how they are used.  What is important is to look at the components rather than to argue which is subset of the other.

See # 2 above on Process Management and ABM

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4. How does Process Management differ from Reengineering?

In general, Reengineering tends to be a periodic event that results in radical redesign of a process.  Process Management is a continuous event that for most part concentrates on incremental improvement.  However, process management can also result in radical redesign.

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5. Does Process Management support Supply Chain Management?

Process Management supports Supply Chain Management.  A Supply Chain can be as broad as from the original supplier to the ultimate customer.  It can be as narrow at one supplier supplying one customer.  Both Process Management and Supply Chain Management concentrate on improving the processes over the supply chain. 

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Call Jim, Brimson or Pat Dowdle at 972-980-7407 to find out how Process Management can help you reach your goals and give your peace of mind

Phone: 972.980.7407 email: john.antos@valuecreationgroup.com
Value Creation Group, Inc. 
7820 Scotia Dr. #2000 
Dallas, TX 75248