BPM Week 1 Flashcards
BPM =
OM + BIS
Value Added
Process that leads to final product. Changes inputs to outputs
Non Value Added Process
Could be removed from the process without changing outcome. Ex: waiting in line
Inputs
Things put into the process Ex: money, time, labor
Output
Final outcome of process
Process Steps
Physical steps in a process. sequence of actions and exchanges of resources.
BIS
Information flows. Business functions and processes that constantly exchange info
Processes can be improved by:
lower cost, better product quality, best customer value, increased product innovation.
OM
process control and improvement
Pre Industrial
agriculture, mining, simple tools
Industrial
goods production, machine tending, quantity of goods
Post Industrial
among persons, services, information, quality of life
what % in 1800 of US workforce in agriculture?
80%
What % in 1950 of US workforce in goods production/factories?
37.5%
1950-now % in services?
50-80%
Productivity definition
how much you can get done in a certain amount of time. output divided by input. always has units of measurement.
Clark-Fisher Hypothesis
productivity increases in one sector of economy make available resources to others.
In early 1900’s, ratio of workers in service sectors
3 out of 10
in 1950 what percent workers in services?
50%
why is post industrial era start in 1950s?
first time more than 50% work in services
Efficiency
the ratio of measured productivity to an established productivity standard or norm. (measured productivity / norm productivity) Dimensionless with no units. (expected/example)
Increase productivity
new technology, mechanization, better processes.
Business Process Reengineering (BPR)
changing a process to increase efficiency and effectiveness.
division of labor and trade leads to…
specialization
local optimization leads to..
outsourcing
Dematerialization
replacement of information-bearing physical goods and services with electronic ones
Engel theory
“can only eat so much…” As family income increases, the percentage spent on food and durables drops while consumption of services increases
Bell theory
Economic growth partially drives itself. Combination of all other three theories.
Service Information Process
from customer to service provider, then provider does task, then service provider to customer
Explicit Service
ex: university, degree, education, job. Only care about specific topic
Implicit Service
ex: university, beavers, win, football, greek life. Care about everything that surrounds topic psychologically.
Closed System
manufacturing facility. can rely on inventory for fluctuations in demand
Open System
Services that cannot be stored therefore no inventory
Flux
Everything changes everyday. systems theory solves this.
System
conceptualization of reality. dynamic and cognitive (human) construct.
Element
Part of system. Adds value (actor)
Subsystem
element that can be a system by itself
Black Box
element modeled as if it has no structure.
Control Elements
elements whose input is under control of a decision maker
Feedback
input to an element as a response to a previous output by the same element.
Process
is a series of subsequent changes in the state of a system’s elements (state transitions) – also known as System’s Dynamics – system behavior.
Deterministic Process
Outcomes are certain. Determined by initial state and dynamics.
Stochastic Process
Outcomes not certain and randomness changes dynamics.
Stochastic Distributions
Normal, Uniform, Poisson, Exponential
Bill Hewlett
“you cannot manage what you cannot measure”
DMAIC
Define, measure, analyze, improve, control
Process Performance measures:
inputs/outputs, time, yield, quality, cycle time
Cycle time=
setup time + wait time + move time + queue time + process time
ERP
Enterprise Resource Planning systems. integrate data from all departments
Percent of fortune 500 companies with ERP
75-80%
MRP
Materials Requirement Planning. Production planning and inventory control system used to manage manufacturing process.
MRPII
Manufacturing Resource Planning. Method used for effective planning of all resources of a manufacturing company.
