Generic Cross-Industry Business Process Reference Guide

Transcription

1 Generic Cross-Industry Published by biz4ge For further information visit our website: biz4ge.kz-a.net or contact us at RIGHTS AND PERMISSIONS 2011 Biz4ge This work is licensed under the Creative Commons Attribution-NonCommercial-ShareAlike (cc-by-nc-sa) License v3.0. Biz4ge encourages the wide distribution, discussion and use of this Generic Cross-Industry Business Process Reference Guide document. Biz4ge grants permission for use and adaptation of this reference guide for internal use..i.e. it may be used freely by any organisation for use within that organisation. For external use, Biz4ge grants permission for non-commercial publication, distribution and use, provided that proper copyright acknowledgment is made to Biz4ge. The commercial re-selling of the content of this reference guide, or delivery of any commercial work to third parties based directly upon it, is not allowed. Please contact Biz4ge if you are interested in commercial use terms. No modifications to the look or content of this reference guide should be made in external venues. Please embed an attribution link to our website at biz4ge.kz-a.netwhen reusing this reference guide in external print or electronic content. This reference guide has been compiled from various sources, edited and published by Biz4ge, all rights reserved. Biz4ge makes no assurances, explicit or implied, that this guide will enable any person or organisation, using all or any part of it, to successfully define their own business architecture, organise or manage a successful business transformation or change management initiative based on this or any other business architecture, or to capture any tangible or other benefit related to said business architecting efforts. All users use this reference guide at their own risk, agree to indemnify Biz4ge from any and all claims arising as consequence of this use, and understand that they should seek the appropriate professional advice before and as part of entering into any business architecture related work efforts. Revision: v1.05 Page: 1 of 86

2 Table of Contents User Notes: This reference guide is structured in line with the Business Process Model found at the beginning of this document. The hierarchical numbering system (i.e. 1.0, 1.1, 1.1.1, etc) used in this document is tied in with that of the Business Process Model. The figures in brackets, i.e. Process (x), found after a process are, where applicable, their APQC PCF hierarchy number / unique identification number cross-references. It is intended that the practitioner uses Sections 5.0 and 6.0 respectively of this reference guide if the using organisation both produces a product and delivers an after-sales service related to that product. Alternatively, they should use Section 5.0 only (Section 6.0 being ignored) if they produce a product but no related after-sales service is offered and/or is relevant. In the case of a service-only organisation Section 5s.0 alone should be used and Sections 5.0 and 6.0 should be ignored. Business Process Model Context to Capability (PCF 1.0 / 10002) Context to Vision (PCF 1.1 / 10014) Assess the external environment (PCF / 10017) Determine end customer and channel needs and wants (PCF / 10018) Perform internal analysis (PCF / 10019) Establish strategic vision (PCF / 10020) Vision to Strategy (PCF 1.2 / 10015) Develop mission statement (PCF / 10037) Evaluate strategic options for achieving objectives (PCF / 10038) Select optimal business strategy (PCF / 10039) Align functional & process strategies via business architecting (PCF / 10040) Create top-level organisational design (PCF / 10041) Develop and set KPIs and targets mapped to top-level organisation (PCF / 10042) Formulate business unit strategies (PCF / 10043) Strategy to Capability (PCF 1.3 / 10016) Review and implement capital structure Extend refine and agree business architecture Revision: v1.05 Page: 2 of 86

3 1.3.3 Develop business plan and set budget goals Concept to Catalogue (PCF 2.0 / 10003) Concept to Competence (PCF / 10065) Maintain ideas bank Identify promising new technologies and trends (PCF / 10070) Incubate and develop new technologies (PCF / 10071) Assess integrating new technology into products / services / production processes (PCF / 10072) Document and protect intellectual property Competence to Confidence (PCF 2.1 / 10061) Evaluate market performance of existing products / services / production processes (PCF / 10063) Define desired product / service / production process development requirements (PCF / 10064) Confirm product / service / production process concepts align with business goals (PCF / 10066) Manage product, service and production process lifecycle (PCF / 10067) Confidence to Catalogue (PCF 2.2 / 10062) Create an innovation and development framework Design, build, and evaluate products, services and processes (PCF / 10080) Test market for new or revised products / services / production processes (PCF / 10081) Prepare for production launch (PCF / 10082) Budget to Plan (PCF 4.1 / 10215) Budget to Forecast Develop sales forecast (PCF / 10129) Develop capacity forecast (PCF / 10222) Develop tiered supply forecast (PCF / 10277) Revision: v1.05 Page: 3 of 86

4 3.1.4 Develop financial forecast (PCF / 10773) Forecast to Constrain Conduct sales / key account plan reviews Establish demand consensus and communicate agreed demand profile Establish supply chain capacity / constraints (e.g. manufacturing, logistics and procurement) and communicate required supply profile Hold S&OP meeting and publish agreed S&OP Constrain to Plan Create inbound materials plan (PCF / 10223) Create and manage master production schedule [MPS] (PCF / 10224) Plan distribution requirements (PCF / 10225) Opportunity to Order (PCF 3.0 / 10004) Opportunity to Offering (PCF 3.1 / 10101) Perform end customer / channel and market intelligence analysis (PCF / 10106) Evaluate and prioritise market opportunities (PCF / 10107) Develop marketing strategy (PCF 3.2 / 10102) Offering to Target (PCF 3.4 / 10104) Establish goals, objectives and metrics for products / services by end customer / channel / segment (PCF / 10148) Establish presence in emerging markets Develop message and manage media (PCF / 10150) Develop and manage pricing (PCF / 10151) Develop and manage advertising and promotional activities (PCF / 10152) Track end customer / channel partner management measures (PCF / 10153) Develop and manage packaging / bundling strategy (PCF / 10154) Revision: v1.05 Page: 4 of 86

5 4.3 Target to Dialog (PCF 3.5 / 10105) Manage sales force (PCF / 10186) Generate end customer / channel partner leads (PCF / 10182) Respond to end customer and/or channel partner enquiries Sell to end customers and/or channel partners (PCF / 10184) Dialog to Order (PCF / 10184) Accept and validate sales orders / bid awards (PCF / 10194) Collect and maintain end customer / channel partner account information (PCF / 10195) Determine product / service availability [i.e. allocate ATP] (PCF / 10196) Determine logistics and transportation options (PCF / 10197) Enter orders into system and identify / perform cross-sell / up-sell activity (PCF / 10198) Process back orders and updates (PCF / 10199) Handle post-order enquiries including post-order fulfillment transactions (PCF / 10200) Order to Cash Products Order to Purchase (PCF 4.2 / 10216) Process customer credit (PCF / 10742) Purchase materials, supplies and services (PCF / 10279) Purchase to Pay Plan inbound material flow logistics (PCF / 10339) Manage / Operate inbound warehousing (PCF / 10340) Manage payments to suppliers Manage supplier returns and reverse logistics (PCF / 10342) Monitor environmental, health and safety (EH&S) performance Pay to Produce (PCF 4.3. / 10217) Revision: v1.05 Page: 5 of 86

6 5.3.1 Schedule production (PCF / 10303) Make and package product (PCF / 10304) Perform post-production random quality testing (PCF / 10369) Maintain production records and manage lot & batch / run traceability (PCF / 10370) Manage fixed assets Schedule and perform maintenance (PCF / 10305) Monitor environmental, health and safety (EH&S) performance Produce to Cash (PCF 4.5 / 10219) Manage / Operate outbound warehousing (PCF / 10340) Manage / Operate outbound transportation (PCF / 10341) Invoice the end customer / channel partner (PCF / 10743) Manage customer returns and reverse logistics (PCF / 10342) Monitor environmental, health and safety (EH&S) performance s.0 Order to Cash Services (PCF 4.0 / 10005) s.1 Order to Purchase (PCF 4.2 / 10216) s.1.1 Process customer credit (PCF / 10742) s.1.2 Purchase materials and supplies (PCF / 10279) s.2 Purchase to Pay s.2.1 Plan inbound material flow (PCF / 10339) s.2.2 Manage / Operate warehousing (PCF / 10340) s.2.3 Manage payments to suppliers s.2.4 Manage supplier returns and reverse logistics (PCF / 10342) s.2.5 Monitor environmental, health and safety (EH&S) performance s.3 Pay to Service (PCF 4.3 / 10217) s.3.1 Schedule service delivery (PCF / 10303) s.3.2 Deliver service (PCF / 10304) Revision: v1.05 Page: 6 of 86

7 5s.3.3 Perform post-service random quality testing (PCF / 10369) s.3.4 Maintain service records and manage materials traceability (PCF / 10370) 51 5s.3.5 Monitor environmental, health and safety (EH&S) performance s.4 Service to Cash (PCF 4.5 / 10219) s.4.1 Invoice the end customer / channel partner (PCF / 10743) s.4.2 Manage customer returns and reverse logistics (PCF / 10342) s.4.3 Monitor environmental, health and safety (EH&S) performance Cash to Dispose (PCF 5.0 / 10006) Cash to Care (PCF 5.2 & 5.3 / & 10380) Plan and manage customer service work force (PCF / 10387) Manage customer service requests / enquiries (PCF / 10388) Manage end customer / channel complaints (PCF / 10389) Measure end customer / channel satisfaction on customer service requests / enquiries handling (PCF / 10401) Measure end customer / channel satisfaction on customer service complaint handling and resolution (PCF / 10402) Measure end customer / channel satisfaction with products and services (PCF / 10403) Monitor environmental, health and safety (EH&S) performance Care to Repair (PCF 4.4 / 10218) Confirm specific service requirements for individual end customers / channel partners (PCF / 10320) Identify, allocate and schedule resources to meet service requirements (PCF / 10321) Provide the service to specific end customers / channel partners (PCF / 10322) Ensure quality of service (PCF / 10323) Revision: v1.05 Page: 7 of 86

8 6.2.5 Update end customer / channel partner profiles & service records and analyse performance / trends Monitor environmental, health and safety (EH&S) performance Repair to Dispose Confirm specific disposal service requirements for individual end customers / channel partners (PCF / 10320) Identify, allocate and schedule resources to meet disposal service requirements (PCF / 10321) Provide disposal service to specific end customers / channel partners (PCF / 10322) Manage returns and reverse logistics (PCF / 10342) Manage dispositioning and safe disposal / scrappage Ensure quality of service (PCF / 10323) Update end customer / channel partner profiles & disposal records and analyse performance / trends Monitor environmental, health and safety (EH&S) performance Woo to Renew Supply to Review Select tiered suppliers and develop/maintain contracts (PCF / 10278) Appraise and develop tiered suppliers (PCF / 10280) Collaborate to Refresh Manage distribution relationships Manage IT relationships Manage physical facilities (e.g. premises) relationships (PCF 9.0 / 10010) Service to Retain Confirm channel strategy (PCF3.2.3 / 10122) Develop channel partner relationships (PCF / 10130) Manage channel partners (PCF / 10187) Revision: v1.05 Page: 8 of 86

9 7.3.4 Manage end customer key accounts (PCF / 10183) Invest to Comply (PCF 11.0 / 10012) Build and manage lender and analyst relationships (PCF & / & 11036) Communicate [incl. corporate performance] with shareholders / stakeholders (PCF 11.1 & / & 11037) Manage government and industry relations (PCF 11.2 / 11011) Manage relations with board of directors (PCF 11.3 / 11012) Manage legal and ethical issues (PCF 11.4 / 11013) Manage public relations programme (PCF 11.5 / 11014) Manage compliance Record to Review Manage financial resources Manage cash flow Manage financial risk Process finance and accounting transactions Process accounts payable [A/P] (PCF 8.6 & / & 10756) Process payroll Process accounts receivable, credit and collections (PCF 8.2 / 10729) Manage fixed asset project accounting (PCF 8.4 / 10731) Perform general accounting and reporting (PCF 8.3 / 10730) Close the books Manage business expenses (PCF / 10757) Implement a transfer pricing policy Report information Provide external financial information Provide internal financial information (PCF 8.1 / 10728) Revision: v1.05 Page: 9 of 86

10 8.3.3 Manage integrity risk Conduct internal audits (PCF 8.8 / 10735) Establish internal controls, policies and procedures (PCF / 10762) Operate controls & monitor compliance with internal policies and procedures (PCF / 10763) Manage fraud Report on internal controls compliance (PCF / 10764) Manage the tax function Manage tax compliance Manage tax controversies Recruit to Retain (PCF 6.0 / 10007) Develop and manage human resources (HR) plans and policies (PCF 6.1 / 10409) Develop and implement human resources plans (PCF / 10416) Monitor and update plans (PCF / 10417) Manage deployment of personnel Forecast and plan workforce requirements Recruit, select and hire employees (PCF 6.2 / 10410) Develop succession and career plans Manage international assignments Create and deploy teams Develop and train employees (PCF 6.3 / 10411) Manage employee orientation and deployment (PCF / 10469) Manage employee performance (PCF / 10470) Manage employee relations (PCF / 10471) Manage employee development (PCF / 10472) Develop and train employees (PCF / 10473) Motivate and retain employees (PCF 6.4 / 10412) Revision: v1.05 Page: 10 of 86

11 9.4.1 Develop and manage reward, recognition, and motivation programmes (PCF / 10494) Ensure employee involvement Manage and administer benefits (PCF / 10495) Manage employee work-life assistance and retention programmes (PCF / 10496) Administer payroll (PCF / 10497) Manage workforce diversity Manage labour-management relationships Manage changes in employment status (PCF 6.5 / 10413) Manage employee information (PCF 6.6 / 10414) Encode to Enlighten (PCF 7.0 / 10008) Manage information resources Manage records and information (PCF 7.4 / 10565) Leverage data and information (PCF 7.8 / 10569) Leverage organisational knowledge Manage information technology Develop frameworks to align business and technology (PCF 7.1 / 10563) Develop and manage IT customer relationships (PCF 7.2 / 10564) Identify / Develop, implement and manage technology solutions (PCF 7.5 & 7.6 / & 10567) Support end users (PCF 7.7 / 10568) Manage technical environment (PCF / 10575) Manage security (PCF / 11220) Ensure continuity of systems (PCF 7.3 / 11216) Assess to Assure (PCF 10.0 / 11179) Manage Environment, Health & Safety (EH&S) Policy & Practice Revision: v1.05 Page: 11 of 86

12 Determine environmental, health and safety (EH&S) impact (PCF 10.1 / 11180) Develop and execute EH&S programme (PCF 10.2 / 11181) Communicate EH&S issues to stakeholders Manage EH&S remediation efforts (PCF 10.6 / 11185) Manage physical risk (PCF 9.5 / 11207) Manage business continuity Inform to Improve (PCF 12.0 / 10013) Confirm and apply top level KPIs and targets to organisational performance strategy development & management Create and manage organisational performance strategy (PCF 12.1 / 11071) Develop product / service / production process physical quality standards / procedures & conduct quality assessments (PCF / 10368) Benchmark performance (PCF 12.2 / 11072) Apply good practice and manage change (PCF 12.4 / 11074) Plan for the change (PCF / 11134) Re-engineer business processes and systems Implement and sustain continuous process improvement Develop enterprise-wide knowledge management [KM] capability (PCF 12.3 / 11073) Revision: v1.05 Page: 12 of 86

13 Business Process Model Revision: v1.05 Page: 13 of 86

14 1.0 Context to Capability (PCF 1.0 / 10002) The process of understanding the external environment in which an organisation functions, envisaging how the organisation can be successful in that context and the development of the strategic structures, plans and resources needed to achieve the necessary operational capabilities to realise that success. 1.1 Context to Vision (PCF 1.1 / 10014) The process of preparing for future success with a largely externally oriented strategic vision that considers both short-term and long-term business objectives Assess the external environment (PCF / 10017) The process of acquiring, analysing and disseminating relevant external information to respond to and capitalise on competitive and marketplace opportunities Determine end customer and channel needs and wants (PCF / 10018) The process of identifying end customer and channel partner segments, critical contact incidents and needs / wants to be able to meet their legitimate and reasonable demands Perform internal analysis (PCF / 10019) The process of gathering, analysing and understanding the current organisational baseline, across a number of performance dimensions (e.g. finances, processes, systems), in terms of identifying both strengths on which to build and weaknesses which may require remedial action Establish strategic vision (PCF / 10020) The process of collaboratively fashioning a coherent strategic vision statement from the information gathered in the internal, external and end customer / channel partner analysis Revision: v1.05 Page: 14 of 86

15 work and communicating it back to the stakeholder community to gain their feedback and buy-in. 1.2 Vision to Strategy (PCF 1.2 / 10015) The process of developing a strategic plan that typically answers some of the following fundamental questions about the organisation and its purpose, e.g.: Who are we? What needs do we intend to meet? Whose need is it? How do we intend to do to meet the needs, i.e. what products / services do we intend to provide and to whom? What are our central values (e.g. what do we believe in, what are we committed to, what is our philosophy/ideology)? Develop mission statement (PCF / 10037) The process of developing a clear and compelling goal(s) that serves to unify an organisation's effort. An effective mission statement must stretch and challenge the organisation, yet be achievable Evaluate strategic options for achieving objectives (PCF / 10038) The process of developing a small number of strategic scenario options for achieving the mission statement and assessing the implications and impacts of each in achieving the organisation s goals Select optimal business strategy (PCF / 10039) The process of selecting the optimal business strategy for achieving the goals set forth in an organisation s mission statement from amongst the scenario model options explored and assessed. Revision: v1.05 Page: 15 of 86

16 1.2.4 Align functional & process strategies via business architecting (PCF / 10040) The process of gathering up, aligning and integrating the various functional and process strategies and goals into a cogent and coherent whole that can serve as the definitive communications and change roadmap for the disparate parts of an organisation such that they can coordinate and deliver their portion of any required/desired business change in an effective and efficient manner Create top-level organisational design (PCF / 10041) The process of developing an effective top-level design that will provide incentives for value generation and determine an efficient power distribution within the organisation Develop and set KPIs and targets mapped to top-level organisation (PCF / 10042) The process of developing and setting the key financial and non-financial measures used to help an organisation define and evaluate how successful it is, typically in terms of making progress towards its long-term organisational goals. KPIs can often be specified by answering the question "What is really important to our different stakeholders? Formulate business unit strategies (PCF / 10043) The process of developing strategy for distinct business units to focus activities and optimise resources. 1.3 Strategy to Capability (PCF 1.3 / 10016) The process of mobilising business strategy to harness available resources for achieving stated goals in a manner which also allows for flexibility, speed and tolerance of risk Review and implement capital structure Revision: v1.05 Page: 16 of 86

17 The process of determining and achieving the optimum mix of debt and equity funding to sustain operations and fuel growth Extend refine and agree business architecture The process of designing, extending and refining the underlying strategic, legal, organisational, process, informational and physical structure of a business Develop business plan and set budget goals The process of developing the business plan and identifying performance goals and operational benchmarks around available resources and capital, market position, general business prospects and value creation potential. Revision: v1.05 Page: 17 of 86

18 2.0 Concept to Catalogue (PCF 2.0 / 10003) The process of identifying and selecting key technologies and ideas for competitive products and/or services, seeing them through the design and development stages onto their successful launch into the marketplace and proactively managing them throughout their lifecycles. 2.1 Concept to Competence (PCF / 10065) The process of identifying whether ideas are commercially viable, developing those ideas into fundable concepts with an associated ROI and then protecting that IPR from being exploited by competitors Maintain ideas bank The process of establishing a systematic approach to capitalise on the creativity of employee's, customers, business partners and other stakeholder groups Collect new or improved product / service / production process ideas from ALL internal and external stakeholders and sources Collect positive and negative feedback about current products / services / production processes from ALL internal and external stakeholders and sources Run new or improved product / service / production process brainstorming workshops, surveys and competitions Analyse external media sources for new or improved product / service / production process market and/or competitive trends Review ideas collected and categorise and rate them for possible business priority, quick win potential, likely difficulty & risk and relevant business owners Distribute highest rated ideas to potential business owners to review for possible immediate action Store and maintain ideas in ideas database Identify promising new technologies and trends (PCF / 10070) The process of collecting information about selected target technology areas and attempting to spot useful trend patterns in that data that may prove of commercial or other interest to the organisation as a basis for the future development of new products, services or production processes. Revision: v1.05 Page: 18 of 86

19 Typical Sub-Processes Conduct secondary market research scanning on technologies and trend areas of interest Conduct analysis of secondary market research data and assemble into relevant facts, opinions and supporting rationales relevant to each area of interest Assemble expert panel to review, integrate and synthesise all of the collected and collated facts, opinions and supporting rationales on each area of interest Aggregate integrated and synthesized information into forecasts for each area of interest and store in forecast database Distribute forecast results to distribution list of interested parties Iterate, refine, and update forecast for each area of interest and maintain forecast database Incubate and develop new technologies (PCF / 10071) The process of providing an environment designed to accelerate the successful development of entrepreneurial, and usually commercially interesting, technologies through an array of business support resources and services. The purpose is to maximise the relevance and competitiveness of the technology and thereby its chances of successful adoption into new generations of products, services and production processes. Typical Sub-Processes Develop / refresh technology incubation objectives, strategy, policy and high-level selection and assessment criteria Ensure incubation facilities are adequately resourced Assemble unconstrained list of all technology incubation candidates, with supporting rationale, and conduct screen-out review based on individual contribution of candidates Conduct screen-in assessment of long-list, based on joint individual and portfolio contribution of candidates, to generate priority and resource ranked short-list of incubator portfolio candidates Assign resources to technologies admitted to portfolio and agree detailed incubation objectives and plans Execute technology incubation plans Review status and validate continued relevance of technologies being incubated versus plans Communicate and roadshow more mature technology incubation projects to stakeholders responsible for adoption of new technologies into new or improved products / services / production processes Close incubation projects taken on by mainstream product / service / production process development areas Manage pending incubator portfolio candidates Revision: v1.05 Page: 19 of 86

20 2.1.4 Assess integrating new technology into products / services / production processes (PCF / 10072) The process of selecting the right technologies at the right time to make them available for incorporation into new and upgraded products / services / production processes. It must recognise that while newer and more advanced technologies may offer improved performance, they also make the development process more risky, challenging and unpredictable. Typical Sub-Processes Define commercial, functional and technical requirements for proposed new or improved product / service / production process candidates Identify all new technology candidate alternatives from both internal (e.g. incubation) and external sources Assess new technology candidates against commercial, functional and technical criteria for each related product / service / production process candidate Conduct negotiations for new technologies, as/if appropriate, for use in development of related new or improved products / services / production processes Incorporate selected new technologies into new or improved product / service / production process development plans Document and protect intellectual property The process of protecting assets from infringement by others through strategic use of copyrights, patents and trademarks. Typical Sub-Processes Apply for and manage patents Secure copyright and trademark protection Protect trade secrets 2.2 Competence to Confidence (PCF 2.1 / 10061) The process, also known as portfolio management, that allows organisations to clearly articulate their strategic business direction and leverage this strategy through a rigorously managed product / service / production process pipeline. Portfolio management enables Revision: v1.05 Page: 20 of 86

21 decision makers to make the right innovation investment and drive the operational execution of their NPD projects Evaluate market performance of existing products / services / production processes (PCF / 10063) The process of understanding the differences between each individual existing product / service / production process in terms of it s customer need satisfaction features and it s contribution to the profit picture. Typical Sub-Processes Conduct primary and secondary market research on product / service / production process performance Compare product / service / production process actual performance against targeted performance Sort products / services / production processes into ranked performance framework Define desired product / service / production process development requirements (PCF / 10064) The process of packaging up proposals for new products / services / production processes, or improvement specifications for existing products / services / production processes, into a business case style format for submission into a portfolio management process. Typical Sub-Processes Identify potential improvements to existing products / services / production processes (PCF / 10068) Identify potential new products / services / production processes (PCF / 10069) Confirm product / service / production process concepts align with business goals (PCF / 10066) The process of operating a cross-functional decision-making committee that assesses the merits of new or upgraded product / service / production process proposals based on how well they support the strategic intent and profit / performance objectives of the organisation. Typical Sub-Processes Revision: v1.05 Page: 21 of 86

22 Develop or refresh product / service / production process portfolio objectives, strategy, policy and high-level selection and assessment criteria, including cost and quality targets (PCF / 10073) Develop business cases in support of product /service / production process portfolio submissions Assemble unconstrained list of all product / service / production process, with supporting rationale, and conduct screen-out review based on individual contribution of candidates Conduct screen-in assessment of long-list, based on joint individual and portfolio contribution of candidates, to generate priority and resource ranked short-list of portfolio candidates (PCF / 10074) Plan for existing portfolio product / service / production process offering modifications (PCF / 10076) Assign resources to products / services / production processes admitted to portfolio and agree detailed objectives, plans, development timings & budgets against business cases (PCF / 10075) Execute portfolio plans Review status and validate continued relevance of products / services / production processes being developed versus plans and business cases Manage pending product / service / production process portfolio candidates Manage product, service and production process lifecycle (PCF / 10067) The process of managing the full lifecycle of competitive products, services and production processes from development and growth to maturity and decline. Typical Sub-Processes Introduce and manage new/improved products / services / production processes (PCF / 10077) Retire outdated products / services / production processes (PCF / 10078) Identify / Review and refine performance indicators (PCF / 10079) 2.3 Confidence to Catalogue (PCF 2.2 / 10062) The process of designing, developing and delivering competitive products, services and production processes to the marketplace and proactively managing them throughout their lifecycle. Revision: v1.05 Page: 22 of 86

23 2.3.1 Create an innovation and development framework The process of creating distinctive products, services, production processes and methods of working. Typical Sub-Processes Implement concurrent engineering Implement value engineering Implement design for X environment Implement project management Identify design and development performance indicators (PCF / 10091) Design, build, and evaluate products, services and processes (PCF / 10080) The process of exploring, developing, testing and launching new products / services / production processes, and reshaping existing ones to create new markets and growth opportunities. Typical Sub-Processes Assign resources to product / service / process projects (PCF / 10083) Refine / Detail plans and business cases, including performing technical assessment (PCF / 10084) Develop customer led new product / service / process design specifications (PCF / 10085) Refine existing product / service / process design specifications as per customer led improvement reviews Document design specifications (PCF / 10086) Conduct mandatory and elective external reviews; e.g. regulatory (PCF / 10087) Build prototypes (PCF / 10088) Eliminate quality and reliability problems (PCF / 10089) Conduct in-house product / service / process testing & feasibility evaluation (PCF / 10090) Revision: v1.05 Page: 23 of 86

24 Collaborate on design and development with suppliers and strategic alliance partners (PCF / 10092) Test market for new or revised products / services / production processes (PCF / 10081) The process of conducting a single, time-limited evaluation of new or upgraded products / services / production processes prior to their general market launch such that any necessary or desirable changes to the item or its launch process can be identified and rectified. Typical Sub-Processes Prepare detailed market study (PCF / 10093) Conduct end customer / channel partner tests and interviews (PCF / 10094) Participate in end customer / channel partner tests and interviews Analyse results and finalise product / service / production process features and functional characteristics and business cases (PCF / 10095) Finalise technical requirements (PCF / 10096) Identify requirements for changes to production / delivery processes (PCF / 10097) Launch product / service Prepare for production launch (PCF / 10082) The process of integrating production activities with other functional areas in an effort to meet marketplace demands for speed, quality and cost control when launching a new product, service or production process. Typical Sub-Processes Develop & test prototype product / service delivery process (PCF / 10098) Design and obtain necessary materials and equipment (PCF / 10099) Install and validate production process or methodology (PCF / 10100) Enter Product / Service data (e.g. Description, Pricing, BOM, Routing) into relevant IT systems and maintain data Accomplish production handover Revision: v1.05 Page: 24 of 86

25 3.0 Budget to Plan (PCF 4.1 / 10215) The process of turning unconstrained future projections about marketplace sales opportunities and knowledge of available business budgets into constrained, balanced, measurable, actionable and agreed plans for coordinated execution by all parts of the organisation. 3.1 Budget to Forecast The process by which organisations ponder and prepare for the future is called forecasting. It involves predicting the future outcome of various business decisions e.g. the future of an existing or proposed product or service line Develop sales forecast (PCF / 10129) The process of projecting future sales demand based on historical data and intelligence information about likely changes in future market conditions (e.g. end customer / channel partner sentiment) Develop capacity forecast (PCF / 10222) The process of determining the necessary resources to meet the production objectives Develop tiered supply forecast (PCF / 10277) The process of identifying, communicating and securing the supply of raw materials projected as needed to meet the forecast production and service delivery demands of the organisation Develop financial forecast (PCF / 10773) The process of estimating the future financial outcomes of an organisation. Revision: v1.05 Page: 25 of 86

26 3.2 Forecast to Constrain The process, commonly referred to as Sales & Operations Planning (S&OP), leading to one common, achievable execution plan for the business. It takes into account demand, the supply of available capacity and other key business constraints Conduct sales / key account plan reviews The process of establishing, by sales region / area, whether and how actual / probable sales to regular or key account customers will differ from those predicted in the most recent sales forecast, typically with a particular focus on the next 1-3 months which are of particular importance to accurate S&OP planning and its subsequent execution Establish demand consensus and communicate agreed demand profile The process of agreeing a definitive version of a single demand plan for the global organisation from a combination of sales forecasts, sales team feedback and market intelligence from all sales regions / areas and then communicating it through-out the global organisation Establish supply chain capacity / constraints (e.g. manufacturing, logistics and procurement) and communicate required supply profile The process of establishing the available global supply chain capacity for the period covered by the demand plan, and it s constraints, such that decisions can be taken regarding how and when to allocate resources to making different products / services and selling them to different customers Hold S&OP meeting and publish agreed S&OP The process of setting the overall, global level of production output and other activities to best satisfy the current planned levels of global sales (i.e. as expressed in the demand plan) while meeting general business objectives of profitability, productivity, competitive customer lead times, etc as expressed in the overall business plan. Revision: v1.05 Page: 26 of 86

27 3.3 Constrain to Plan The process for individual business units / sites of planning the optimal movements of raw materials through the production process and then as finished products or services to be transported to the end customer or channel partner by promoting efficiency, reducing waste, executing speedy and accurate delivery and managing as for a total supply chain Create inbound materials plan (PCF / 10223) The process of managing the planning and control of all inbound materials (i.e. including finished goods and raw materials / component parts) into individual business unit / site organisations Create and manage master production schedule [MPS] (PCF / 10224) The process that translates the agreed S&OP plan into a dynamic and comprehensive product production / service delivery schedule envelope for each individual business unit / site organisation. This will be consumed by ATP order promising / confirmation activities in response to end customer / channel partner orders as they are received and/or by meeting stock replenishment objectives Plan distribution requirements (PCF / 10225) The process of planning logistics activities associated with outbound transportation, warehousing, inventory levels, materials handling, order administration, and any industrial packaging needed to support outbound distribution operations. Revision: v1.05 Page: 27 of 86

28 4.0 Opportunity to Order (PCF 3.0 / 10004) The process of developing strategies and procedures to position products and services in the marketplace and achieve high levels of market share, revenue and profit margin. 4.1 Opportunity to Offering (PCF 3.1 / 10101) The process of analysing market and end customer / channel partner information to create and maintain a competitive business position Perform end customer / channel and market intelligence analysis (PCF / 10106) The process for discovering what end customers / channel partners want, need or believe. It can also involve discovering how they act. Once that research is completed, it can be used to determine how to market a product or service Evaluate and prioritise market opportunities (PCF / 10107) The process of giving a sales and marketing team actionable intelligence on what products and services are of most interest to potential end customers / channel partners Develop marketing strategy (PCF 3.2 / 10102) The process of enabling an organisation to concentrate its limited resources on the greatest opportunities to increase sales & profits and achieve a sustainable competitive advantage. A marketing strategy should be centred around the key concept that customer satisfaction is the main goal. 4.2 Offering to Target (PCF 3.4 / 10104) The process of translating marketplace changes into specific ideas for targeted business opportunities and sales campaigns / programmes to take advantage of them. Revision: v1.05 Page: 28 of 86

29 4.2.1 Establish goals, objectives and metrics for products / services by end customer / channel / segment (PCF / 10148) The process of developing a marketing plan that contains the set of specific actions and measures required to successfully implement the marketing strategy. Most commonly a marketing plan is a written document detailing the necessary actions to achieve one or more marketing strategy objectives Establish presence in emerging markets The process of identifying opportunity, and expanding into new markets with strong sales potential, to increase global market share Develop message and manage media (PCF / 10150) The process of designing the strategies to be adopted for influencing the buying public / end customer in their uptake of a product or service, and deciding on the aspect to be advertised and which channel(s) to employ, based on the desired image of the organisation and its present marketing objectives Develop and manage pricing (PCF / 10151) The process of developing approaches to pricing designed to sustainably capture the maximum revenue and profit potential from an organisation s end customers / channel partners Develop and manage advertising and promotional activities (PCF / 10152) The process of reaching target audiences with focused messages about the benefits of products and services to encourage purchasing behaviours Track end customer / channel partner management measures (PCF / 10153) Revision: v1.05 Page: 29 of 86

30 The process of measuring, managing and improving customer performance and focus to determine whether an organisation is achieving an adequate return by customer from its marketing investments in its selected target markets Develop and manage packaging / bundling strategy (PCF / 10154) The process of developing a strategy for enclosing or protecting products for marketing, distribution, storage, information transmission, sale and use purposes. By extension bundling, which is the addition of further items into the purchase transaction related to an otherwise stand-alone product or service, usually for promotional reasons, is the process of combining multiple normally separate items together into a single saleable unit. 4.3 Target to Dialog (PCF 3.5 / 10105) The process of building market share capture opportunities by converting prospective end customer and/or channel partner discussion of ideas for doing business together to engagement in a serious sales proposition dialog (e.g. bid request or formal enquiry) as relates to those ideas Manage sales force (PCF / 10186) The process of attaining an organisation's sales goals in an effective & efficient manner through planning, staffing, training, leading and controlling organisational resources Generate end customer / channel partner leads (PCF / 10182) The process of generating prospective end customer / channel partner interest or enquiry into an organisation s products or services. Typical Sub-Processes Identify potential new end customer / channel partner prospects (PCF / 10188) Develop or refine target end customer / channel partner profiles Research and develop long-list of organisations matching target profiles Filter long-list to develop short-list of organisations most likely to soon be Revision: v1.05 Page: 30 of 86

31 interested in products/services on offer Source contact information for short-listed organisations Mine existing end customer / channel partner customer database Develop or refine criteria for identifying current customers likely to repurchase soon Search database of current customers against criteria to develop list of matches Review histories of match list organisations for further information relevant to sales Compile brief dossier of match list organisations for sales use, including contact information Identify and qualify leads (i.e. new prospect AND existing customer) (PCF / 10189) Identify value proposition(s) most likely to succeed with the target organisations Review prospect / customer expressions of interest or enquiries recorded in database for relevant queries Contact target organisations and probe interest in value proposition(s) Indicate likely level of interest in value proposition(s) put forward (if any) Indicate (if possible) specific products/services of particular relevance Indicate (if appropriate) budget, timeline and other high-level purchasing criteria Record target organisation responses for analysis Analyse target organisation responses to identify/confirm, qualify and prioritise leads Enter qualified prospect and any additional existing customer data into customer database. Enter ALL qualified leads into sales pipeline tracker Maintain data in sales pipeline tracker Respond to end customer and/or channel partner enquiries The process of receiving, processing and responding to end customer and/or channel partner enquiries quickly and efficiently. Typical Sub-Processes Respond to information requests Prepare RFI (Request For Information) Send RFI (Request For Information) Receive RFI (Request For Information) Revision: v1.05 Page: 31 of 86