18 Questions
What is the primary focus of the time dimension in process performance measurement?
Cycle time, or the total time to complete a process
What is the primary difference between fixed and variable costs?
Variable costs are correlated with sales, while fixed costs are not
What is the purpose of distinguishing between different process performance dimensions?
To analyze and improve business processes
What is the primary purpose of measuring process performance?
To analyze and redesign business processes
What is an example of a variable cost?
Salaries for new hires
What is the relationship between cycle time and processing time?
Processing time is a subset of cycle time
What are the two primary perspectives from which the quality of a business process can be viewed?
Process participant’s and client’s perspective
Which criterion is least noted to measure the effect of process redesign?
Flexibility
What is process portfolio?
The set of all processes in general, and their visualization by different criteria
How is the health of a process quantified?
By calculating the difference between objectives and actual values for major process performance measures
What is the purpose of process selection?
To prioritize processes based on importance, health, and feasibility
What framework can be used as an aid in creating a process landscape model?
APQC Process Classification Framework
What is the primary purpose of process profile in process definition?
To define boundaries, vision performance indicators, and resources
How can reference models contribute to the process definition phase?
By checking completeness and consistency of process definitions
What is a key consideration when evaluating the strategic importance of a business process?
The process's potential impact on competitive advantages
What is the primary goal of process selection in BPM?
To select processes that are most likely to benefit from BPM initiatives
What is the difference between generic performance dimensions and specific performance measures?
Generic dimensions are high-level categories, while specific measures are quantitative or qualitative metrics
What is a key factor to consider when determining the feasibility of a process for BPM initiatives?
The cultural and political barriers to BPM initiatives
Study Notes
Process Performance Measures
- Four generic dimensions of process performance measures: time, cost, quality, and flexibility.
Time Dimension
- Cycle time (also called throughput time): time taken to handle one case from start to end.
- Processing time (also called service time): time resources spend on handling a case.
- Waiting time: time a case spends in idle mode, including queueing time and other waiting time.
Cost Dimension
- Distinguishing between fixed and variable costs.
- Fixed costs: overhead costs unaffected by processing intensity.
- Variable costs: positively correlated with some variable quantity (e.g., sales, purchased goods, new hires).
Process Analysis and Design
- Process profile: defines boundaries, vision, performance indicators, resources, etc.
- Reference models: used to check completeness and consistency, and to associate processes with functional units of the organization chart.
Process Selection
- Aim: define criteria for assessing process performance.
- Selection criteria: strategic importance, health, and feasibility.
- Strategic importance: processes impacting strategic goals, profitability, uniqueness, and competitive advantages.
- Health: processes in trouble, potentially benefiting from BPM initiatives.
- Feasibility: susceptibility to BPM initiatives, considering culture and politics.
Process Performance Measures
- Quality: viewed from client and process participant perspectives (external and internal quality).
- Flexibility: ability to react to changes, a criterion often overlooked in process redesign.
Process Portfolio
- Set of all processes, visualized using different criteria.
- Process selection based on importance, health, and feasibility.
- Strategic importance: assessed by senior managers in reference to the organization's strategy.
- Health: quantified by calculating the difference between objectives and actual values for major process performance measures.
- Feasibility: assessed by the process owner.
Process Landscape Model
- Creating a process landscape model involves seven steps, aided by the APQC Process Classification Framework.
Learn about the four dimensions of process performance measures, including time, cost, quality, and flexibility. Understand how cycle time and processing time are used to evaluate process efficiency.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
