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12 CHAPTER 1 Introduction to Business Processes

In contrast, corrective maintenance is done as needed—for example, repair-
ing a machine when it breaks down. Figure 1-8 illustrates a simplifi ed main-
tenance process. The trigger is a maintenance request, which can be either
preventive or corrective. Production approves the request, and the mainte-
nance is performed. The fi nal stage, settlement, involves an internal charge for
the work done.

Figure 1-8: An asset management process

A similar process is used for service requests from customers, for exam-
ple, to repair a product they purchased (Figure 1-9). In such cases, different
functional areas may be involved. Sales receives a service request, which it
approves and forwards to the department responsible for completing the
repairs. Settlement will depend on whether the service is covered by a warranty.
If it is, then the organization will absorb the cost of the repair. Otherwise, the
organization will send an invoice to the customer and then record payment,
similar to the steps in the fulfi llment process.

Figure 1-9: A customer service process

HUMAN CAPITAL MANAGEMENT—PEOPLE
Human capital management (HCM) consists of numerous processes related to
all aspects of managing people in an organization. Examples of HCM processes
are recruitment, hiring, training, compensation and benefi ts management, and

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