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AbstractThe manufacturing industry is usually operated on the basis of business processes, and most workers are familiar with their own processes. The process‐based approach can provide an efficient way to capture and navigate knowledge. In this study, we focus on knowledge that may be missed during knowledge transfer among workers. For this, we propose a method for analysing knowledge flow, which is passed among business processes.As a means of developing a process‐based approach to analysing knowledge flow, a new categorization of knowledge is presented in three dimensions: scope, type, and usage level. Then we propose a process‐based knowledge management framework for analysing knowledge flow, which employs a two‐phase analysis: process analysis and knowledge‐flow analysis. We use process decomposition and process dependency analysis techniques for process analysis. A knowledge‐flow model, represented by a knowledge‐flow diagram, is proposed as a tool for representing knowledge. We formulate several semantics for knowledge‐flow modelling and suggest procedures for knowledge‐flow analysis. The proposed approach is verified and illustrated through a case study of the manufacturing process. Copyright © 2003 John Wiley & Sons, Ltd.