Process Performance Measures

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Questions and Answers

What is the primary focus of the time dimension in process performance measurement?

Processing time spent on handling cases
Resource allocation and availability
Waiting time, including idle time and queueing time
Cycle time, or the total time to complete a process (correct)

What is the primary difference between fixed and variable costs?

Fixed costs are overhead, while variable costs are labor-related
Variable costs are correlated with sales, while fixed costs are not (correct)
Variable costs are always higher than fixed costs
Fixed costs are correlated with production, while variable costs are not

What is the purpose of distinguishing between different process performance dimensions?

To eliminate one dimension in favor of another
To analyze and improve business processes (correct)
To prioritize one dimension over others
To solely focus on cost reduction

What is the primary purpose of measuring process performance?

To analyze and redesign business processes (C) Signup and view all the answers

What is an example of a variable cost?

Salaries for new hires (D) Signup and view all the answers

What is the relationship between cycle time and processing time?

Processing time is a subset of cycle time (B) Signup and view all the answers

What are the two primary perspectives from which the quality of a business process can be viewed?

Process participant’s and client’s perspective (D) Signup and view all the answers

Which criterion is least noted to measure the effect of process redesign?

Flexibility (A) Signup and view all the answers

What is process portfolio?

The set of all processes in general, and their visualization by different criteria (C) Signup and view all the answers

How is the health of a process quantified?

By calculating the difference between objectives and actual values for major process performance measures (B) Signup and view all the answers

What is the purpose of process selection?

To prioritize processes based on importance, health, and feasibility (D) Signup and view all the answers

What framework can be used as an aid in creating a process landscape model?

APQC Process Classification Framework (C) Signup and view all the answers

What is the primary purpose of process profile in process definition?

To define boundaries, vision performance indicators, and resources (C) Signup and view all the answers

How can reference models contribute to the process definition phase?

By checking completeness and consistency of process definitions (B) Signup and view all the answers

What is a key consideration when evaluating the strategic importance of a business process?

The process's potential impact on competitive advantages (C) Signup and view all the answers

What is the primary goal of process selection in BPM?

To select processes that are most likely to benefit from BPM initiatives (C) Signup and view all the answers

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 (D) Signup and view all the answers

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 (D) Signup and view all the answers

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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.