APQCProcessClassificationFramework(PCF)-ConsumerProducts

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Version 5.0.2-en-CP • April 2008 1

CONSUMER PRODUCTS

PROCESS CLASSIFICATION FRAMEWORK

THE CONSUMER PRODUCTS

PROCESS CLASSIFICATION FRAMEWORK

Based on the renowned Process Classification Framework

(PCF),

a taxonomy of cross-functional business processes intended to allow

objective comparison of performance within and among organizations,

and the support of IBM, this industry PCF enables more industry

applicable content by outlining and defining processes and activities

specific to the Consumer Products industry. This allows organizations to

choose the framework most relevant to the specific process improvement

need, whether it be benchmarking within or across industries, business

process management/re-engineering, or content management. The

cross-industry PCF and industry PCFs are available on the APQC website

at no charge. IBM provided the subject matter expertise and intellectual

property to create the industry specific business process classification

frameworks, as part of the IBM’s continuing leadership in the promotion

of open standards to help organizations evaluate and measure business

processes at an industry level.

THE FRAMEWORK FOR PROCESS IMPROVEMENT

Experience shows that the potential of benchmarking to drive dramatic

improvement lies squarely in making out-of-the-box comparisons

and searching for insights not typically found within intra-industry

paradigms. To enable this beneficial benchmarking, the APQC Process

Classification Framework

(PCF) serves as a high-level, industry-neutral

enterprise process model that allows organizations to see their

business processes from a cross-industry viewpoint.

This cross-industry framework has experienced more than 15 years of

creative use by thousands of organizations worldwide. The PCF provides

the foundation for the Open Standards Benchmarking Collaborative

(OSBC) database and the work of its advisory council of global industry

leaders. Each version of the PCF will continue to be enhanced as the

OSBC database further develops definitions, processes, and measures.

The PCF and associated measures and benchmarking surveys

are available for download and completion at no charge from the

Open Standards Benchmarking Collaborative Web site at

www.apqc.org/OSBCdatabase.

HISTORY

The cross-industry Process Classification Framework was originally

envisioned as a taxonomy of business processes and a common

language through which APQC member organizations could benchmark

their processes. The initial design involved APQC and more than 80

organizations with strong interest in advancing the use of benchmarking

in the United States and worldwide. Since its inception in 1992, the

PCF has seen updates to most of its content. These updates keep the

framework current with the ways that organizations do business around

the world. In 2008, APQC and IBM worked together to enhance the

cross-industry PCF and to develop a number of industry-specific process

classification frameworks.

Interpreting the PCF ______________________________________________________________________________ 3

Overview _______________________________________________________________________________________ 4

1.0 Develop Vision and Strategy ___________________________________________________________________ 4

2.0 Design and Develop Products and Services _______________________________________________________ 5

3.0 Market and Sell Products and Services __________________________________________________________ 6

4.0 Deliver Products and Services _________________________________________________________________ 8

5.0 Manage Customer Service ___________________________________________________________________ 10

6.0 Develop and Manage Human Capital ____________________________________________________________11

7.0 Manage Information Technology ______________________________________________________________ 13

8.0 Manage Financial Resources __________________________________________________________________ 16

9.0 Acquire, Construct, and Manage Property ______________________________________________________ 19

10.0 Manage Environmental Health and Safety (EHS) __________________________________________________ 19

11.0 Manage External Relationships ________________________________________________________________ 20

12.0 Manage Knowledge, Improvement, and Change __________________________________________________ 21

PROCESS CLASSIFICATION FRAMEWORK TABLE OF CONTENTS

LOOKING FORWARD

The cross industry and industry Process Classification Frameworks are

evolving models, which APQC will continue to enhance and improve

regularly. Thus, APQC encourages comments, suggestions, and more

importantly, the sharing of insights from having applied the PCF within

your organization. Share your suggestions and experiences with the

PCF by e-mailing pcf_feedback@apqc.org.

ABOUT APQC

An internationally recognized resource for process and performance

improvement, APQC helps organizations adapt to rapidly changing

environments, build new and better ways to work, and succeed in a

competitive marketplace. With a focus on productivity, knowledge

management, benchmarking, and quality improvement initiatives,

APQC works with its member organizations to identify best practices;

discover effective methods of improvement; broadly disseminate

findings; and connect individuals with one another and the knowledge,

training, and tools they need to succeed. Founded in 1977, APQC

is a member-based nonprofit serving organizations around the world

in all sectors of business, education, and government. APQC is

also a proud winner of the 2003 and 2004 North American Most

Admired Knowledge Enterprises (MAKE) awards. This award is

based on a study by Teleos, a European based research firm, and

the KNOW network.

ABOUT IBM

IBM works with its clients to develop new business designs and

technical architectures that allow their businesses the flexibility

required to compete in a global business landscape. The business is

also adjusting its footprint toward emerging geographies, tapping into

IBM’s double-digit growth, providing the technology infrastructure

they need, and taking advantage of the talent pools provided to better

service IBM’s clients. IBM’s major operations comprise a Global

Technology Services segment; a Global Business Services segment; a

Systems and Technology segment; a Software segment; and a Global

Financing segment. For more information, visit: www.ibm.com/soa

THE CONSUMER PRODUCTS

PROCESS CLASSIFICATION FRAMEWORK

RIGHTS AND PERMISSIONS

the wide distribution, discussion, and use of the PCF for classifying and

defining processes. APQC grants permission for use and adaptation of

the Consumer Products PCF for internal use. For external use, APQC

grants permission for publication, distribution, and use, provided that

proper copyright acknowledgment is made to APQC and IBM. No

modifications to the look or content should be made in external venues.

UNDERSTANDING THE NUMBERING SCHEME

Beginning with Version 5.0.0, the PCF uses a numbering scheme that

differs from previous versions. The cross-industry framework and the

industry-specific frameworks collectively form a library of process

The IBM logo is a registered trademark of IBM in the United States and other

countries and is used under license.

The PCF is written in United States English language format.

1.1 Deﬁne the business concept and long-term vision (10014)

1.1.1 Assess the external environment (10017)

1.1.1.1 Analyze and evaluate competition (10021)

1.1.1.2 Identify economic trends (10022)

1.1.1.3 Identify political and regulatory issues (10023)

1.1.1.4 Assess new technology innovations (10024)

1.1.1.5 Analyze demographics (10025)

1.1.1.6 Identify social and cultural changes (10026)

1.1.1.7 Identify ecological concerns (10027)

1.1.1.8 Conduct mergers and acquisitions (M&A)

analysis (11301)

1.1.1.9 Monitor external opportunities and threats

(11302)

1.1.2 Survey market and determine customer needs and

wants (10018)

1.1.2.1 Conduct qualitative/quantitative assessments

(10028)

1.1.2.2 Capture and assess customer needs (10029)

1.1.3 Perform internal analysis (10019)

1.1.3.1 Analyze organizational capabilities (10030)

1.1.3.2 Create baselines for current processes (10031)

1.1.3.3 Analyze systems and technology (10032)

1.1.3.4 Analyze nancial conditions (10033)

1.1.3.5 Identify enterprise core competencies (10034)

1.1.4 Establish strategic vision (10020)

1.1.4.1 Align stakeholders around strategic vision

(10035)

1.1.4.2 Communicate strategic vision to stakeholders

(10036)

1.2 Develop business strategy (10015)

1.2.1 Develop overall mission statement (10037)

1.2.1.1 Dene current business (10044)

1.2.1.2 Describe means to achieve desired state

(11303)

1.2.1.3 Formulate mission (10045)

1.2.1.4 Communicate mission (10046)

1.2.2 Select long-term business strategy (10039)

1.2.3 Coordinate and align functional and process

strategies (10040)

1.2.4 Create organizational design (structure,

governance, reporting, etc.) (10041)

1.2.4.1 Evaluate breadth and depth of organizational

structure (10049)

1.2.4.2 Perform job specic roles mapping and value-

add analyses (10050)

1.2.4.3 Develop role activity diagrams to assess hand-

off activity (10051)

1.2.4.4 Perform organization redesign workshops

(10052)

1.2.4.5 Design the relationships between

organizational units (10053)

1.2.4.6 Develop role analysis and activity diagrams for

key processes (10054)

1.2.4.7 Assess organizational implication of feasible

alternatives (10055)

1.2.4.8 Migrate to new organization (10056)

1.2.5 Develop and set organizational goals (10042)

1.2.6 Formulate business unit strategies (10043)

1.2.7 Develop ﬁnancial strategies (11304)

1.2.7.1 Set corporate nancial targets (11305)

1.2.7.2 Communicate targets to operating divisions

(11306)

1.2.8 Analyze portfolio positioning (11307)

1.2.8.1 Determine growth potential (11308)

1.2.8.2 Determine relative market share (11309)

1.2.8.3 Assess cash ow potential (11310)

1.2.8.4 Determine optimal portfolio (11311)

1.3 Manage strategic initiatives (10016)

1.3.1 Evaluate strategic options to achieve the objectives

(10038)

1.3.1.1 Dene strategic options (10047)

1.3.1.2 Assess and analyze impact of each option

(10048)

1.3.2 Develop strategic initiatives (10057)

1.3.2.1 Evaluate strategic initiatives (11683)

1.3.2.2 Select strategic initiatives (11684)

1.3.2.3 Manage strategic business portfolio (11685)

1.3.2.4 Establish high-level measures (11686)

1.0 Develop Vision and Strategy (10002)

Version 5.0.2-en-CP • April 2008 5

2.1 Design products and services (11681)

2.1.1 Analyze market segments, portfolios and

technologies (11321)

2.1.1.1 Identify market segments (11322)

2.1.1.2 Develop and manage product range

architecture (11326)

2.1.1.3 Identify brand and portfolio gaps (11327)

2.1.2 Design strategy for new product development

(NPD) and innovation (11330)

2.1.2.1 Translate retailer/shopper/consumer wants

and needs into market/product/service

opportunities (11331)

2.1.2.2 Align strategy with business strategy and

initiatives (10066)

2.1.2.3 Evaluate new product/service ideas against

existing product, NPD portfolio and past

products (11332)

2.1.2.4 Rene innovation/NPD portfolio and strategy,

including prioritization of products in the NPD

pipeline (11336)

2.1.3 Develop new product and service concepts (11337)

2.1.3.1 Analyze concept feasibility (10090)

2.1.3.2 Develop concepts (11338)

2.1.3.3 Develop preliminary designs (11345)

2.1.3.4 Test concepts (11675)

2.1.4 Build and evaluate product and service prototypes

(11338)

2.1.4.1 Collaborate design with suppliers and contract

manufacturers (11355)

2.1.4.2 Work with manufacturers on process/

manufacturing (11357)

2.1.4.3 Build prototypes (11366)

2.1.4.4 Rene product/service to eliminate quality and

reliability problems (11371)

2.1.4.5 Conduct in-house product/service testing and

evaluate feasibility (11372)

2.1.4.6 Identify design/development performance

indicators (11373)

2.1.4.7 Revise business case and make go/no go

decision (11374)

2.1.5 Test market for new or revised products and

services (10081)

2.1.5.1 Conduct consumer/shoppers tests and

interviews (11678)

2.1.5.2 Conduct clinical and product claims testing

(11375)

2.1.5.3 Finalize technical requirements (10096)

2.1.5.4 Identify requirements for changes to

manufacturing/delivery processes (10097)

2.1.5.5 Conduct legal/regulatory/medical review

(11379)

2.1.5.6 Finalize product/service characteristics and

business cases (10095)

2.1.6 Prepare for production and marketplace

introduction (11679)

2.1.6.1 Develop and test prototype production and/or

service delivery process (10098)

2.1.6.2 Design and obtain necessary materials and

equipment (10099)

2.1.6.3 Install and validate production process or

methodology (10100)

2.1.6.4 Introduce new product and/or service

commercially (11383)

2.1.6.5 Determine plan for new product development

and introduction (11384)

2.1.6.6 Develop product/service launch plans (e.g.

timelines, retail communication strategies)

(11385)

2.1.6.7 Identify licensing and co-branding

opportunities (11386)

2.1.6.8 Plan preliminary media buys (print, television,

radio) (11387)

2.1.6.9 Begin initial creative/advertising development

(11388)

2.1.6.10 Develop sales communication plan (11389)

2.1.6.11 Design preliminary sales collateral, point-of-

sale (POS) and promotion prototypes (11390)

2.1.6.12 Disseminate new item and price information

(11391)

2.1.6.13 Coordinate introduction of products and sunset

obsolete products with retailers/distributors

(11392)

2.1.6.14 Manage questions and issues associated with

product introduction (11399)

2.1.7 Develop product (11400)

2.1.7.1 Rene formulation based on market research,

technical and cost analysis (11401)

2.1.7.2 Develop packaging (11402)

2.1.7.3 Outline initial processing parameters (11403)

2.1.7.4 Develop nal product and manufacturing costs

(11404)

2.1.7.5 Revise nancial analysis (11405)

2.1.7.6 Identify and source raw materials from

suppliers (11406)

2.1.7.7 Scale up manufacturing (11407)

2.1.8 Launch product/service - commercialization (11408)

2.1.8.1 Sell in-product to retailers (11409)

2.1.8.2 Create and release nal advertising (11410)

2.1.8.3 Build nal distribution and production plans

(11411)

2.1.8.4 Order packaging and ingredients (11412)

2.1.8.5 Order promotional and point of sale materials

(11413)

2.1.8.6 Manufacture and release nished product

(11414)

2.1.8.7 Distribute product (11415)

2.0 Design and Develop Products and Services (11680)

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