Business Processes

Diaz, Lorenzo and Solís suggest a taxonomy of business processes based on the value chain of any company. They propose a set of nine generic business processes and their specific key activities.

Business Processes and Their Key Activities

1: Product Development

Design (formulation, risk and reliability analysis, costing)

Engineering change management.

Specification management.

Portfolio management.

2: Procurement


Payment Cycle

Inbound Logistics

Supplier performance management

Purchasing order administrative processing

3: Order Fullfilment

Demand Planning

Order administrative processing

Product Delivery



Inventory allocation

Collecting payment from customer

4: Transformation

Production planning and scheduling

Workforce planning and scheduling

Products (goods and services) execution

Internal logistics

Conformance quality

5: Customer Relationship Management



Sales force support

Promotional activities


6: Asset Management

Network facilities design

MRO (Materials, Repairs, Operations) management.

Maintenance planning and scheduling

Process design and improvement

7: After-sales service

Warranty managment.

Labour scheduling

Reverse logistics

Lifecycle cash flow exploitation


8: Human Resource Management

HR planning and scheduling


HR Development

9: Business Process Management

Process design, modeling, implementation, and monitoring

Total Quality Management

Source: A taxonomy of business processes developed by Diaz, Lorenzo and Solís. See it at:

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