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ABSTRACT
The quality of enterprise management can be
increased through the usage of balanced system of process
approach. Business processes are inherent to any organization.
Management accounting for each business process allows to
conduct factor analysis when minimize labour costs and
assess the their contribution to the implementation of the
overall strategy. This article introduces the research of
Figure 1. Business process diagram
Business process used in enterprise management, delineates
how to separate processes into groups, describes their II. THE PURPOSE OF THE BUSINESS
characteristics, and differences between them.
PROCESSES
Keywords— Business process, process approach, value
stream, business process efficiency, classification There is no standard list of business processes,
each organization must independently or with the help of
invited experts develop their own business process, this
contributes to a more accurate understanding of their own
I. INTRODUCTION
situation.
Description of business processes leads to results
An alternative approach to the management of the
that allow deeper penetration into the phenomena.
organization is the process approach, which appeared in the
Connections and relationships that have been ignored or not
70s of the last century. The process approach is the usage of
recognized unexpectedly become the key to the effective
interrelated processes to manage the activities and resources
functioning of the entire organization. In these
of the organization . [1]
circumstances, coordination of work becomes much more
The basis of the process approach to enterprise
effective, as work flows from Department to Department
management is a business process. Business process is a
with fewer errors, customer requirements are met in the
stable, purposeful set of interrelated activities of the
shortest possible time. Customers are better recognized,
organization, which, according to a certain technology,
conflicts are reduces between departments and delays
transforms inputs (resources) into outputs (process result,
between different stages of the process [4].
product, service) of value to the consumer . [2]
The main purpose of the process is to satisfy the
Processes are workflows that have their own
requirements of the customers. There are two types of
boundaries, that is, the beginning and the end. For any
process clients: external and internal. External customers
process, these boundaries are set by the initial or primary
are consumers and customers of products outside of the
inputs from which it starts. These inputs are opened by the
company. Internal customers are consumers within a
primary process providers. The process ends with an output
company and typically another functional Department or
that outputs the result to the primary clients .[3]
division [5].
The purpose of the scheme (Fig.1) presented below show
the supplier and input data, the process itself and the
customer with the corresponding output data. In addition, a III. THE ADVANTAGES OF PROCESS
feedback arrow from the customer to the supplier is drawn. APPROACH OVER THE FUNCTIONAL
APPROACH
The process approach views a business as a set of
processes — core business processes, controlling processes
(setting goals) and supporting ones. Key business processes
166 This work is licensed under Creative Commons Attribution 4.0 International License.
International Journal of Engineering and Management Research e-ISSN: 2250-0758 | p-ISSN: 2394-6962
Volume- 9, Issue- 2, (April 2019)
www.ijemr.net https://doi.org/10.31033/ijemr.9.2.22
are processes that directly make money. Supporting - problems in them that lead to failures. The main thing is
processes, without which the main business processes that business processes allow you to understand the
cannot exist, these are the processes of providing various interaction between disparate departments: what, to whom
resources. and for what they transmit or receive at each stage. As a
Each business process has: result, the process approach greatly simplifies the
1. Its specific goal, subordinate to the overall goal of the adaptation of new employees and reduces the dependence
company; of the company on the human factor. It is important that the
2. An owner who can manage resources and is responsible process system simplifies the management of operating
for the execution of the process; costs.
3. Resources; The presence of a well-developed system of
4. Quality control system and error correction; business processes greatly simplifies the adjustment of the
5. System of process indicators. company's activities to meet the requirements of quality
The complex of all actions converting materials standards ISO 9000:2000. The company's compliance with
and information into a finished product for the customer is ISO 9000:2000 standards becomes an important
called the value stream. competitive advantage.
With the introduction of the process approach to
management, the organization has the following capabilities IV. ELABORATION OF BUSINESS
[6]: PROCESSES
1. The process approach allows to optimize the
control system, make it transparent for management and Consider the order of business process
able to respond flexibly to changes in the environment. development. First, you need to create a project team of
2. The process approach allows to obtain and use a employees. Usually, one working team is not enough. Then,
system of indicators and criteria for assessing the a temporary group of customers and suppliers of a
effectiveness of management at all stages of the production particular business process is involved in its activities,
and management chain. which provide inputs, outputs and resources of the business
3. The process approach provides confidence among process.
the co-founders of the organization that the existing To understand how the system works and to
management system is aimed at continuous improvement of preserve the experience gained, first record how the process
efficiency and maximum consideration of the interests of actually works now. It should be remembered that the
stakeholders, since: purpose of the description is to identify the links between
– the system is based on measuring the performance of the the taken actions, rather than fixing the smallest details.
organization, planning and achieving continuous Therefore, it is recommended to standardize the description
improvement of performance; of business processes using standard forms and process
– the system is aimed at meeting the needs of persons maps.
interested in the activities of the organization: co-founders It is recommended to describe the business process
(investors), staff, suppliers, society. by the method of successive approximations. After
4. Process management ensures the implementation completing the description of the business process, need to
of the process approach in the organization in accordance work on its improvement (repeat the cycle of actions until
with the requirements of ISO 9000:2000 and obtaining the an acceptable result to be obtained).
appropriate certificate. In the description of the business process, you can
5. The process approach and quality management distinguish the following sections:
system guarantee a certain order and responsibility for the
The standard form of the business process;
development, coordination, approval and maintenance of
Business process map;
documentation.
6. The basis of the process approach to management Routes in a business process;
is fact-based decision-making. The presence of an Business process matrices;
information system in the organization allows owners of Business process flowcharts;
processes to obtain objective information for management Description of the joints of the business process;
in the event that it is built within a single system of The secondary description of the business process;
management of the organization on the basis of the process Detailed description of the business process;
approach. Business process documentation;
The technology describing the business process Definition of business process indicators;
makes all the operations of the company transparent and Regulations of implementation of business
understandable, allows you to analyze operations and find process;
167 This work is licensed under Creative Commons Attribution 4.0 International License.
International Journal of Engineering and Management Research e-ISSN: 2250-0758 | p-ISSN: 2394-6962
Volume- 9, Issue- 2, (April 2019)
www.ijemr.net https://doi.org/10.31033/ijemr.9.2.22
168 This work is licensed under Creative Commons Attribution 4.0 International License.
International Journal of Engineering and Management Research e-ISSN: 2250-0758 | p-ISSN: 2394-6962
Volume- 9, Issue- 2, (April 2019)
www.ijemr.net https://doi.org/10.31033/ijemr.9.2.22
the outputs of the business process (the conversion definition of planned business process indicators
results); for the next period;
resources available to the business process; analysis and documentation of deviations from the
internal and external vendor business processes — normal course of the process by the business
input sources; process owner;
business processes of consumers — users of the analysis of the effectiveness of corrective actions;
results of the business process under consideration; reporting to senior management. [5]
measured process parameters; Development and description of business processes is
the performance of the process. the first step towards QMS implementation at the
9. Business process documentation enterprise. Ahead — a constant and painstaking work to
Business processes included in the QMS system bring them to all staff, analysis and, if necessary, the
are subject to documentation. The most convenient form of introduction of corrective actions.
description is the procedure. A business process can be
described by one or more procedures, depending on the V. PROCESS APPROACH
complexity. It is convenient to make a single view to CLASSIFICATION AND RESULTS
describe all business processes.
10. Definition of business process indicators In any organization there are both main and
The business process should be characterized by auxiliary processes. The main processes are the current
certain indicators, so that the process can be measured and activities of the company, the result of which is the
evaluated its effectiveness. All indicators are included in 4 production of outputs required by an external client.
main groups: Support processes support core processes. It should be
quality; noted that the division of processes into basic and auxiliary
execution time; is conditional. For example, the process of delivering the
number; goods to the buyer and pre-sales preparation can be
cost. considered by the organization as an auxiliary, but it will
In addition, it is customary to allocate special groups add value to the process for the client.
— a group of indicators of the business process, a group of The criterion for identifying a support process may
requirements, a group to ensure the desired flow of the be the use of the results of the process by many functional
process, a group of recommendations. units and processes. A business process is a collection of
The group of business process indicators shows interrelated activities or tasks aimed at creating a specific
the degree of achievement of the goal. product or service for consumers. Flowcharts of business
The group of requirements includes: processes are used as a graphical description of the activity.
human resources; Although business process is a new term that entered into
infrastructure; the theory and practice of management only in the 1990s of
conditions of the production environment. the last century, descriptions of business processes have
Group to ensure the desired flow of the process: been known for a long time. The first description of the
information; business process was given by Adam Smith in his famous
instructions for work; example of a needle manufactory. However, after economic
time. science began to pay less attention to the progress of the
Recommendations group: division of labor, interest in the description of business
finance; processes decreased significantly.
The new growth of interest in the problems of
logistics;
business processes was associated with the introduction of
suppliers;
information systems. An important prerequisite for the
partners, etc. successful implementation of information systems was the
11. Regulations of the business process implementation availability of a qualitative description of the operations to
It is advisable to draw up large business processes be automated, as well as processed data. Therefore, the
in the form of a separate document "Regulations of the earlier IDEF0 and IDEF1X models were essentially
business process implementation". Other business processes descriptions of business processes. However, this
can be arranged in the form of Department regulations and description described only specific functions and data, but
job descriptions. not the requirements for quantitative, qualitative and cost
The regulations should include requirements to characteristics of the process as a whole.
ensure compliance with the Shewhart-Deming cycle:
169 This work is licensed under Creative Commons Attribution 4.0 International License.
International Journal of Engineering and Management Research e-ISSN: 2250-0758 | p-ISSN: 2394-6962
Volume- 9, Issue- 2, (April 2019)
www.ijemr.net https://doi.org/10.31033/ijemr.9.2.22
A business process is a set of different actions that activities. At the output of properly constructed business
transform a series of data input into a series of data output processes, the cost-effectiveness (lower cost of production
(goods or services) for another person or process, using of goods or services) increases for the consumer.
people and equipment. We are all busy with processes and
at different times play the role of the client, the supplier. VI. CONCLLUSION
There are three types of business processes:
1. Business processes that control the functioning of the Thus, a business process is a system of sequential,
system. An example of the management process is purposeful and regulated activities in which the inputs of
corporate governance and strategic management. the process are converted into outputs, i.e. the results of the
2. Operational - business processes that make up the core process that are of value to consumers, through the control
business of the company and create the main revenue action and with the help of resources. It can be concluded
stream. Examples of operational business processes are that the use of the process approach is appropriate and
procurement, manufacturing, marketing, sales. relevant at all stages of development of the enterprise, from
3. Supporting business processes that serve the core small organizations to network structures. At the same time,
business. Examples of business processes supporting both the construction of new business processes and the
accounting, recruitment, technical support, analysis of optimization of existing ones require a number of special
business operations (Fig.2). approaches, as well as a qualitative analysis of the current
situation in conjunction with the strategic and tactical goals
and objectives of the enterprise.
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