chapter  Chapter 4
32 Pages

Process design and strategy

ByDavid Gardiner, Hendrik Reefke

This chapter discusses process design, which considers the needs of the customer and the requirement to be consistent with the capacity of the available resources. The relationship between customers and suppliers is a function of process design.

The opening perspective discusses digital ubiquity and the likely effect that automation will have on human employment.

Good process design principles focus on customer expectations, and their perception of value is relevant to product- and service-related industries. Process designers can foster this by understanding what the customer wants and providing this in a responsive easy-to-use, yet flexible manner. These facets of process design are critical in fostering loyalty and ultimately profitability.

This chapter discusses various types of processes, which usually relate to volume and customisation. It contrasts the difference between producing a commodity product, like electricity, and a one-off product, such as a vehicle repair. It presents the concepts of value streams and process structures.

Public service processes often operate with legislated powers of enforcement and may not possess the profit motivation of commercial business processes. In a sense, they are legal monopolies and may not see the need for process effectiveness and customer satisfaction.

The chapter concludes with the service-profit chain to increase profits through extremely satisfied employees. Process design aims at satisfying customers.