‫Business process management and important concepts.
‫The Wealth of Nations by Adam Smith is perhaps one of the most influential books on economics in all
‫history.
‫However, not many people know that it is this book that the idea of improving policies to increase
‫productivity and therefore profit has was born or the Adam Smith Division of labor and not business
‫process management.
‫He was referring to the same idea.
‫The concept is illustrated of the head of a PIN factory example as follows a PIN factory example about
‫Smith's book about 10 on board PIN Factory, where each laborer.
‫Would produce, they're hoping that is from new or raw material to finish produce himself, Smith realized
‫that a lot of time such a liberal was spent in moving from one job to another and switching tools required
‫for different jobs.
‫This time, he concluded, it was being spent in unproductive manner.
‫He then saw that in the same history or in the same factory, sorry, when different people were doing
‫different activities, that is one man was drawing the while.
‫The second was Shippen.
‫It's a 10 making blipping heads and therefore assembling the pin to complete the product.
‫This town was being used.
‫As much if it effectively.
‫Productivity went to the roof and costs were cut into a fraction of that, the where the concept of
‫process was born and was taking the global Western world by storm.
‫So that is where the concept of process was born.
‫Adam Smith also realized that such a simplification of individual tax made it possible for the workers
‫to increase the to.
‫The productivity increased even more as workers went faster up the learning curve, lasting as the jobs
‫were being reduced to simple tasks, it gave an impetus to mechanization.
‫It is much simpler to make a machine to do one part of the process rather than to make a machine to
‫do the entire process.
‫Or are the business process pardon the absurd example.
‫By showing that it was possible to increase the productivity by a factor of 10 or more if the process
‫were efficient enough cooperation to realize this revolution idea and soon became the bedrock of the
‫Industrial Revolution, all business endeavors to try to compete with each other by building more efficient
‫processes to meet the needs of their customers.
‫Average Fortune 500 companies today claimed to be process driven.
‫The study of processes has today become a separate science, what we call a business process management.
‫The idea of process might be good, but it is still very much valid, almost all business organizations
‫that have become big have adopted process paradigm.
‫Some of the famous names are as follows Ford Motors Henry Ford idea of assembly line is a textbook presentation
‫of an efficient process.
‫It is no wonder that Henry Ford, who therefore is importing more wages than his competitors and so
‫make more profit.
‫This was a large scale proof of the idea to ponder by Adam Smith in his 1776 seminar.
‫Wal-Mart's turned the tables on some of the big retailers of the 80s who put in improvements, Wal-Mart
‫use the RFID chips, which have been automating the purchasing process and saving a lot of effort in
‫efficiency and cost, is a case study.
‫Every student or business must go through.
‫This, too, can be traced back to Adam Smith's idea of mechanization in today's world.
‫We call it automation, but the basics remain the same.
‫Dell, that very the story of Michael Dell's innovation is well known today.
‫Instead of purchasing and then hoping to sell.
‫Photos are there for a model who initiated production only after the other was what received this had
‫them cut a lot of inventory and storage costs.
‫We do not add any value of a better process as a newcomer.