Business Systems

1. Business Systems Interactions

2. A Quality Management System?

3. Trade Relationships

4. Consumer Research Design and redesign Suppliers of materials and equipment ABCD Consumers Receipt and test of materials Distribution Production, assembly, inspection Test of processes, machines, methods (Deming, 1986) Organization As An Extended System

5. S END U S E R S U P P L I E R S Extending Outside the Organization System Your Product(s) Process (or Sub-Sub-System) Within a System Sub-System

6. Machines Methods Environment People Material Measures In The Extended System Systems / Processes Outputs Inputs Outcomes Product Supplier End-user or Service Convert to Measurables When None Exist

7. Environment Environment Yes No Suppliers End-user Short-term Feedback Short-term Feedback Yes No Internal Long-term Long-term feedback feedback An Extended System Process Within the System Sub-System System

8. The ISO 9001:2000 'Process' Model Continual Improvement of the Quality Management System MANAGEMENT RESPONSIBILITY Quality Policy Quality Objectives Management Review Customers and Other Interested Parties Customers and Other Interested Parties MEASUREMENT, ANALYSIS AND IMPROVEMENT Internal Audit Preventive Action Corrective Action Customer Satisfaction INFRASTRUCTURE Document Control Control of Records Information Systems RESOURCE MANAGEMENT Purchasing Human Resources Satisfaction PRODUCT REALIZATION Process Planning Process Documentation Requirements PRODUCT(s)

9. Simple Top Level Operations Flowchart Account Management Sales / Marketing Order Receipt Order to MFG. Procure Material Build Product Ship Product Bill Customer Collect Money Mrkting Process Sales Process Quote Process Credit Approval Order Review Gen. Doc. Acknowl. Order Notify Mfg. Verify Inputs Plan the Job Release for Purch 7 Mfg. Review Reqmts Make vs. Buy Select Supplier Issue RFQ Place Orders Eval. Incoming Matls Material Dispo. Autorize Supp. pay Review Doc. Pack. Kit Materials Set up Equip. Mfg. per Route Card Package Send to Finish goods Confirm Date Create Pack. Docs. Create / Dist Invoice Sched. Carrier Generate Ship. Docs. Pass to shipper File Paperwork Mail Invoice Receive Payments Resolve Disputes Support Processes Management Processes Results / Forecasts Business Plan Mgmnt Mtgs. Quality Systems Internal Audits Procedures & Standards Document Control Training Facilities Processes Material Stocking Control of Test Equipment Personnel Processes Corrective Action Financial Processes Design Engineering Supplier Approval Data Security Customer Complaints Customer Services Preventative Maintenance

10. Process Feedback Machines Methods Product or Service Customer Environment People Material Customer Feedback Quality Through Process Improvement Feedback is a cornerstone, so to speak, of ISO 9001. The implication throughout the standard is that you will manage with data.

11. Business As A System (Process) Design Product Receive Order Sales / Marketing Sub-Processes(Sub-Systems) Purchase Materials Receive Materials Fabrication Assembly Ship Component Test Device Test Process Validations

12. Define Product and Base Processes External Customers Process 3 Retail Clients Process 1 Wholesale Process 2 Sub-Process Sub-Process A High level Process Description High level Process Description Sub-Process B 1. Product 1 2. Product 2 1. Product 1 Information Services Products This is not meant to represent YOUR process structure. It is only meant to serve to give you food for thought on looking at your processes. Process 4 Sub-Process Sub-Process A Sub-Process B Sub-Process C

13. Main Processes / Systems Process 3 Process 1 Implement Add New Contracts Contract Sales Proposal Proposal to Retailer Outside Retailer Selling Covered Products For Retailer Relationship Process 2 Tele-Market Retailer Provides Sales Information Contact Prospective Customers Successful Sale Process 4 Contact Servicer & Issue Authorization Service Supplier Provides Service Service Supplier Invoices Company Individual Calls for Service Company Pays Invoice

14. Miscellaneous Sub-Processes Contracting & Compliance Warranty Administration Direct Marketing Client Services • Contract Negotiation • Compliance to State Regulations • Maintenance of Fulfillment Process • Load client data electronically • Dealer Set Up • Table maintenance • New client installations (implementations) • Claims • Review & Approve Payments • OTL authorizations for retail contracts • Customer Service • Entitle & issue all initial authorizations • Inbound Sales Calls • Calculations forcash out • Service Recruitment • Maintain Servicer Database • Satellite Customer Service • Compliance & Training • New Employee Training • Quality audits of staff • QA Card review & reporting • PC Help Desk • Entitle & issue all initial authorizations • Campaign Planning • Execute Direct Mail & Telemarketing campaigns • Reporting for Client and management Sales & Marketing Support Data Entry • Load client data manually • Process Cancellations • Develop proposals • Control collateral materials

15. Integrated Process Overview Example

16. Process Interaction Example

17. Yes No Yes No The Organization as a System, Subsystems, and Processes Every company is made up of systems / processes. These interact. And they extend beyond the company ‘walls’.

18. Army System for Defense Marines Air Force Navy y n Systems and Subsystems There are high level systems and low level systems. High level systems are composed various sub-systems.

19. Document Types / Classification & Controls Master Systems Department Specific Training Materials Systems Manual and Level IIs Control by: Department Manager Control by: Quality Systems Manager Departmental Master Systems Quality Records Training Records Control by: Department Manager Control by: Department Manager Orientation Training Materials Departmental Work Instructions Control by: HR