What are the three important regions of a service provider's process domain as represented on a process chain network (PCN) diagram? What implication do those three regions have in terms of cost and efficiency?

Question

What will be an ideal response?

Answer 1

A process domain has three regions:
1. The direct interaction region includes process steps that involve the service provider interacting with another entity, such as a supplier or a customer.
2. The surrogate interaction region includes process steps in which the service provider is acting on the resources coming from another entity without direct interaction.
3. The independent processing region includes process steps that the service provider performs without interacting with other entities, such as designing products and scheduling production. The process efficiency for the service provider is lowest in region 1 (involving direct interaction) and highest in region 3 (independent processing). The economies of scale experienced by the service provider are typically highest in activities involving independent processing (region 3) and lowest in activities involving direct interaction with customers of suppliers (region 1).