Modelling at the enterprise level (15%)

Question 1

What levels of the process hierarchy focus on the enterprise view?

Answer 1

Level 0 & Level 1

Question 2

Level 0 & 1 constitute what?

Answer 2

Harmon model

Question 3

Relationship between map and model

Answer 3

Map before model
A map shows an overview without detail (see links & boundaries / make sense of something)

Question 4

Functional view audience?

Answer 4

Internal - little interest of the customer

Question 5

SIPOC

Answer 5

Suppliers
Inputs/resources
Processes (HL set to deliver benefit/value to customers)
Output
Customers
(all crucial process elements)

Provides a contextual view

Question 6

Harmon model

Answer 6

Extension of SIPOC - represents internal processes and external world

4 key areas:
1. Customers (beneficiaries) - those who purchase/shareholders. Outcomes may be in conflict (low price vs high profit)
2. Suppliers - physical materials/finance/people/ideas
4. Competition: for suppliers & customers
5. External environment - PESTLE

Question 7

Process map

Answer 7

The process map shows the dependency between the core processes
Dependencies help identify: Each distinct process
* The boundary between one process and another * The preceding process that ends before the next process can start * The relationships that create the whole

Question 8

Value proposition

Answer 8

Definition of the enterprise’s product or service that demonstrates to
the customer that we understand and can satisfy their needs

Differentiates the enterprise from its competitors

• Covers:
• Product/service attributes (functionality/price/quality/choice/availability/timing)
• Customer relationship aspects (he experience offered by an organisation throughout the entire customer journey)
• Image and reputation aspects

Question 9

Key elements of a value proposition

Answer 9

Product/service attributes + image + customer relationship

Question 10

Why is Porter’s Value Chain model useful?

Answer 10

Structure our thinking & understand key processes to deliver value proposition
Identifies key activities that will deliver value to the enterprise’s customers

Value chain more precise foundation for analysis than value stream

Question 11

5 Primary activities of PVC

Answer 11

Activities that together deliver the value proposition

Inbound logistics (inputs)
Operations (value add)
Outbound logistics (output)
Marketing & sales
Service

Question 12

For service enterprises which two activities of PVC are combined?

Answer 12

Operations
Outbound Logistics

Question 13

Why use a SIPOC/value stream/value chain at the enterprise level?

Answer 13

They provide a contextual view from which more detailed business process models at the event-response level may be developed.

An enterprise level process model shows the core areas of process that together
deliver a product or service to the customer and fulfil the stated value proposition of
the enterprise.

Question 14

Relationship between customer & value proposition

Answer 14

Organisations offer value propositions & customers have requirements and expectation.

Customers work with organisations that offer value propositions that meet thwir needs

Question 15

Value proposition & business process improvement

Answer 15

Understanding the customers’ value expectations, and the extent to which
they are met by the organisation’s value proposition, can help to identify the areas of
the business processes that would benefit from improvement

Question 15

4 Supporting activities PVC

Answer 15

Firm infrastructure (managing buildings/equipment)
HR management (recruiting new staff / managing performance of existing staff)
Technology development (technical/application architecture)
Procurement (selecting suppliers/managing suppliers)

Question 16

Why are supporting activities disregarded when modelling at the enterprise level?

Answer 16

they do not contribute directly to the delivery of the value proposition

Question 17

Value stream diagram

Answer 17

Set of (HL) activities that produce a value item (P/S to internal/external customer)

An organisations may have several value streams, each of which comprises a set of activities that together offer a value proposition to customers.

Sum of VS (and it’s activities) = VP

Question 17

What is SIPOC an extension of?

Answer 17

Extension of value stream diagram t ensure all 5 key elements are explored

Question 17

What tools can we use to examine enterprise view of processes?

Answer 17

1. Porters Value Chain
2. Value Stream
3. SIPOC (+ Harmon for external)

All provide a conceptual view from which more detailed business process at the event response level may be developed