SUMMARY
Six Sigma Roadmap Step 1 involves identifying core processes and key customers. Specifically, you need to do three major activities.
Using these steps, we assume for the most part that we are mapping an entire business or operating unit.
Core processes mean the chain of tasks that deliver value, i.e. products, services, support, and information. Alongside these core processes are the support or enabling processes that provide vital resources or inputs to the value-producing activities.
To understand fully the concept of core processes, look at the concepts that work behind them.
First, work is a process, and improved work processes spell business success.
Second, the core processes being a chain of tasks usually involve various departments or functions. Therefore, they can only work with a sound cross-functional management.
Third, to achieve a sound cross-functional management, you need to establish a value chain. Michael Porter in his book Competitive Advantage defines value chain as “a collection of activities that are performed to design, market, deliver, and support an organization’s product.”
The value chain reinforces the key interconnectedness of business activities and corporate success. While each function contribute to value, some play a “primary” role, others a “secondary” one. Value chains are defined at the operating-unit level of organization. “Primary” are those processes that provide products and services to customers, and the other processes are labeled “secondary.”
Some of the core processes are:
a. customer acquisition
b. order administration
c. order fulfillment
d. customer service or support
Some of the support processes are:
a. capital acquisition
b. asset maximization
c. budgeting
d. recruitment and hiring
This grouping of processes is just one way of doing it. How you will do it will most likely be different and make more sense for your organization. However you do it, keep in mind the following issues when defining your core processes.
As soon as you are able to identify your core processes, you are now ready to define your key process Outputs and key customers. Determine which Output should reach the customer. It does not follow that core process Outputs be delivered to customers.
The last step is to create high-level core process maps. To do this is to identify the major activities that make up each core process. One model is called SIPOC: Supplier-Input-Process-Output-Customer.
SIPOC displays a cross-functional set of activities in a single, simple diagram. It also uses a framework applicable to processes of all sizes and it helps maintain a “big picture” perspective.
COMMENTARY
The problem with too much emphasis and focus on “core” processes is you tend to give less importance, or worst ignore the “support” processes. These support functions, though may not be directly linked to external customers, actually give vital inputs and should be given due attention and importance.
To reinforce the above concept, discussion in this chapter should have emphasized the “internal customer” concept. Here, in every step of the business process, the next process is the customer of the previous process, be it a core or support process. Whether the process chain is long or short, customer satisfaction should always refer to both internal and external customers.
Teamwork should also have been highlighted as without the support of a minor support function, no major or core process will succeed.
