Chapter 3 Flashcards
Business process
A collection of linked activities employed by an organization to produce a product or service
Types of business processes: generic or unique, supporting or core, simple or complex, short or long running, formal or informal
Optimal business process criteria
Cost efficiencies, customer satisfaction and differentiation, standardization, value added activities, improved agility and speed scalability.
** see chapter 3 slides for further details.
As is Vs to be processes
As is process refers to the current process that is flawed and in read of change
To be process refers to the future design of the new business process that is much more efficient and effective
seeks to eliminate the common business problems and use best practices wherever possible
Problems with as is business processes
Bottlenecks, cycle time, handoffs, data duplication, scalability, old ways, etc.
Business process recingineering
Is the fundamental redesign of business processes to achieve breakthrough performance in key measures of cost, flexibility, accuracy, quality, speed, and customer satisfaction. Companies do not change core competencies. 2 types of BPR: clean slate and technology enabled
Clean slate reengineering
Process designers will start with a clean sheet of paper and redesign a process from scratch. This fosters innovation and creativity.
Hammers BPR principles
See chapter 3 slides
Technology enabled reengereering
The technology (ERP) provides the roadmap for fundamental process change. Also known as constrained re-engineering because the ERP system imposes limits and bounds. System configurations will dictate how processes will work
Paving the cow paths
In ERP, this refers to recreating outdated, inefficient processes within the ERP system.
Fatal Business process reengineering mistakes
Unclear definitions, unrealistic expectations, minimal input, taking too long, lack of leadership, wrong scope, lack of an effective methodology, inadequate resources.
Business process improvement (bpi)
Changes to existing processes that occur slowly, and incrementally. More gradual and evolutionary compared to BPR scope and intensity much smaller than BPR
Step 1 OF BPI
Identify goals and objectives of the BPI project and assemble a team.
- team includes the process owner: person in charge of a process and manages it daily. Subject matter expert designs technical features of the process
Step 2 of BPI
Compile a process inventory that identifies key business processes in the organization, including their sub processes activities
Step 3 of BPI
Obtain info about the process from process owners and experts
Step 4 of BPI
Analyze and measure the process and pinpoint any problems