B6 - Process Management & IT Flashcards
Business Process Management
management approach that seeks to coordinate the functions of an organization toward an ultimate goal of continuous improvement in customer satisfaction
What are the two objectives of BPM?
Effectiveness and efficiency
How does BPM meet its objectives?
Innovation, flexibility, and integration with tech
What are the five groups of BPM?
Design, modeling, execution, monitoring and optimization
Design
Identification of existing processes and concept of how process should function
Modeling
introduces variables to the conceptual design for what if analysis
Execution
Changes are implemented and key indicators of success are developed
Monitoring
Information is gathered, tracked, and compared with expected performance
Optimization
Process manager continues to refine the process
PDCA
Plan, do, check, act
Plan
Design and model
Do
Execution
Act
Optimization
Check
Monitoring
Performance measure (KPI)
assess processes can be financial or nonfinancial, quantitative or qualitative, should correlate directly to the managed process
Financial metrics
Gross revenue, profit margin, EBITDA
Customer metrics
Number of new customers, customer satisfaction ratings
Internal process metric
% of manufacturing waste, number of units manufactures number of service hours delivered
Organizational growth metric
Number of training sessions completed, ratings on employee satisfaction, employee turnover
Efficiency
Fewer resources are used to accomplish objectives
Effectiveness
Objectives are accomplished with greater predictability
Agility
Responses to change are faster and more reliable
Business Process Modeling Notation
used to depict business process; consists of flow objects, connecting objects, and swim lanes
Flow Objects
Events, activities and gateway
Events
markets the different points in a process
Activities
function or action performed by a person or system
gateway
point at which the path of the process diverges
Connecting objects
sequence flow and message flow
Swim lanes
pools and lanes
Pools
key participants or groups in the process
lanes
reflects a group of similar activities within a pool
rational improvement initiatives
structured and systematic
strategic gap analysis
external assessments and internal assessments performed to help determine the gap between an organization’s objectives and status quo
review of competitive priorities
review of price, quality, and other differentiators required to have a competitive advantage
review of production objectives
review of performance requirements needed to reach production or service delivery objectives
selection of an improvement program
deciding how to proceeds for improvement
Business process reengineering (BPR)
Implements radical change
BPM vs BPR
BPM - incrememntal change, BPR - atypical change
What is the underlying concept of JIT
inventory doesn’t add value and maintenance of inventory on hand produces wasteful cost
Total Quality Management
organizational commitment to customer focused performance that emphasizes quality and continuous improvement
customer focus
component of TQM; recognition that each function of the corporation exists to satisfy the customer
Continuous improvement
quality isn’t viewed as an achievement in TQM as the organization is constantly striving to improve its product/process
Workforce involvement
TQM characterized by team approaches and worker input
Lean manufacturing
requires the use of only those resources required to meet the requirements of the customer
kaizen
continuous improvement and search for cost reduction completed at the implementation level
Availability
Systems and data must be available to users, have proper integrity, be in usable format and secure
Architecture
Job roles, IT applications, and hardware supporting them should be designed to enable the fulfillment of governance objectives
Metadata
Data describing other data
Policy
IT governance policies should be in place to help companies translate management and governance objectives in practice
Quality
data integrity and quality are critical to ensure basic standards are met so there are no anomalies such as missing values, duplicate values, or transposed values
regulatory compliance
information collected, used and stored by an orgnaization is considered personally identifiable information, personal health, or otherwise subject to regulatory constraints
Security
IT governance strategy should include the secure preservation, storage, and transmission of data
Demand flow system
Manage resources using customer demands as the basis for resource allocation instead of using sales forecasts or master scheduling
TOC
states that organizations are impeded from achieving objectives by the existence of one or more constraints or bottlenecks
Six Sigma
Continuous quality improvement program that strives to reduce product or service defects
