Process management is an analytical method that includes any specific methods, business tools, skill sets, or methods used to control the process of a certain business function in a business setting. Like any method, it has advantages and disadvantages.
Process management is often used in the business world because it allows the owners and employees of a business to make sure that the best methods are being used. For example, process management could be used to produce a machined part, to be sure that everything is being done at the best time and in the most efficient possible way in order to cut costs and increase productivity without sacrificing quality. The advantages of process management are that it helps to improve productivity and profits; however, the disadvantages are that it costs a lot of money and is very time and labor intensive to implement.
It is important to understand explore the advantages of process management in more detail to understand how it helps productivity and profits.
- Identifies delay and cost issues - Process management looks at every step in the process of completing a business function (such as producing a part, or working with the billing cycle of a client); so, it is very effective at identifying specifically which of the current processes are causing delays in production. It can also help to identify where there are excess costs and can identify other issues, such as excess employee down time.
- Works for any industry - Any business can benefit from a thorough and complete understanding of how their business processes work. Process management can be applied across any industry in their strategic business planning.
- Works for any business model - If you have performed process management for your business and you need to change to a different product or alter some other portion of your business, you can keep the same streamlined processes that you have set up.
Of course, this doesn't mean that there are not disadvantages:
- Frequently requires outside skill and knowledge - Process management planning requires a great deal of skill and knowledge in order to be properly performed, as well as in order to be implemented. This generally means that individuals at a business cannot do process management by themselves. They will probably need to contract with a consultant.
- Cost - Due to the skill and knowledge required for process management, the business will generally have to hire an outside organization to analyze and establish the processes in order to reap all of the potential benefits of process management.
The cost and complexity of true business process management are two of the greatest disadvantages.