Podcast
Questions and Answers
What is the primary focus of the time dimension in process performance measurement?
What is the primary focus of the time dimension in process performance measurement?
What is the primary difference between fixed and variable costs?
What is the primary difference between fixed and variable costs?
What is the purpose of distinguishing between different process performance dimensions?
What is the purpose of distinguishing between different process performance dimensions?
What is the primary purpose of measuring process performance?
What is the primary purpose of measuring process performance?
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What is an example of a variable cost?
What is an example of a variable cost?
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What is the relationship between cycle time and processing time?
What is the relationship between cycle time and processing time?
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What are the two primary perspectives from which the quality of a business process can be viewed?
What are the two primary perspectives from which the quality of a business process can be viewed?
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Which criterion is least noted to measure the effect of process redesign?
Which criterion is least noted to measure the effect of process redesign?
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What is process portfolio?
What is process portfolio?
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How is the health of a process quantified?
How is the health of a process quantified?
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What is the purpose of process selection?
What is the purpose of process selection?
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What framework can be used as an aid in creating a process landscape model?
What framework can be used as an aid in creating a process landscape model?
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What is the primary purpose of process profile in process definition?
What is the primary purpose of process profile in process definition?
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How can reference models contribute to the process definition phase?
How can reference models contribute to the process definition phase?
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What is a key consideration when evaluating the strategic importance of a business process?
What is a key consideration when evaluating the strategic importance of a business process?
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What is the primary goal of process selection in BPM?
What is the primary goal of process selection in BPM?
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What is the difference between generic performance dimensions and specific performance measures?
What is the difference between generic performance dimensions and specific performance measures?
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What is a key factor to consider when determining the feasibility of a process for BPM initiatives?
What is a key factor to consider when determining the feasibility of a process for BPM initiatives?
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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.
Process Landscape Model
- Creating a process landscape model involves seven steps, aided by the APQC Process Classification Framework.
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Description
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.
