Describe HOW your organization identifies and manages its KEY PROCESSES for creating CUSTOMER VALUE and achieving business success and growth.

Within your response, include answers to the following questions:

6.1a. Value Creation Processes

(1) HOW does your organization determine its KEY VALUE CREATION PROCESSES?

What are your organization’s KEY product, service, and business PROCESSES for creating or adding VALUE?

HOW do these PROCESSES contribute to profitability and business success?

(2) HOW do you determine KEY VALUE CREATION PROCESS requirements, incorporating input from CUSTOMERS, suppliers, and PARTNERS, as appropriate?

What are the KEY requirements for these PROCESSES?

(3) HOW do you design these PROCESSES to meet all the KEY requirements?

HOW do you incorporate new technology, organizational KNOWLEDGE, and the potential need for AGILITY into the design of these PROCESSES?

HOW do you incorporate CYCLE TIME, PRODUCTIVITY, cost control, and other efficiency and EFFECTIVENESS factors into the design of these PROCESSES?

HOW do you implement these PROCESSES to ensure they meet design requirements?

(4) What are your KEY PERFORMANCE MEASURES or INDICATORS used for the control and improvement of your VALUE CREATION PROCESSES?

HOW does your day-to-day operation of these PROCESSES ensure meeting KEY PROCESS requirements?

HOW are in-PROCESS MEASURES used in managing these PROCESSES?

HOW is CUSTOMER, supplier, and PARTNER input used in managing these PROCESSES, as appropriate?

(5) HOW do you minimize overall costs associated with inspections, tests, and PROCESS or PERFORMANCE audits, as appropriate?

HOW do you prevent defects and rework, and minimize warranty costs, as appropriate?

(6) HOW do you improve your VALUE CREATION PROCESSES to achieve better PERFORMANCE, to reduce variability, to improve products and services, and to keep the PROCESSES current with business needs and directions?

HOW are improvements and lessons learned shared with other organizational units and PROCESSES to drive organizational LEARNING and INNOVATION?

Notes:

N1. Your KEY VALUE CREATION PROCESSES are those most important to “running your business” and maintaining or achieving a SUSTAINABLE competitive advantage. They are the PROCESSES that involve the majority of your organization’s employees and produce CUSTOMER, stockholder, and other KEY STAKEHOLDER VALUE. They include the PROCESSES through which your organization adds greatest VALUE to its products and services. They also include the business PROCESSES most critical to adding VALUE to the business itself, resulting in success and growth.

N2. KEY VALUE CREATION PROCESSES differ greatly among organizations, depending on many factors. These factors include the nature of your products and services, HOW they are produced and delivered, technology requirements, CUSTOMER and supplier relationships and involvement, outsourcing, IMPORTANCE of research and development, role of technology acquisition, information and KNOWLEDGE management, supply chain management, mergers and acquisitions, global expansion, and sales and marketing. Responses to Item 6.1 should be based upon the most critical requirements and PROCESSES for your products, services, and business.

N3. To achieve better PROCESS PERFORMANCE and reduce variability, you might implement APPROACHES such as a Lean Enterprise SYSTEM, Six Sigma methodology, use of ISO 9000:2000 standards, or other PROCESS improvement tools.

N4. To provide as complete and concise a response as possible for your KEY VALUE CREATION PROCESSES, you might want to use a tabular format identifying the KEY PROCESSES and the attributes of each as called for in questions 6.1a(1)–6.1a(6).

N5. The RESULTS of improvements in product and service PERFORMANCE should be reported in Item 7.1. All other PROCESS PERFORMANCE RESULTS should be reported in Item 7.5.

For additional description, see 6.1 Value Creation Processes Description.

2005 Criteria Additions Links: 1.1 - 1.2 - 2.1 - 2.2 - 3.1 - 3.2 - 4.1 - 4.2 - 5.1 - 5.2 - 5.3 - 6.1 - 6.2 - 7.1 - 7.2 - 7.3 - 7.4 - 7.5 - 7.6 - P.1 - P.2