Operations Management: Process Management Flashcards
Business Process Management
management approach that seeks to coordinate the function of an organization to customer satisfaction
The process seeks effectiveness and efficiency through promotion of innovation flexibility and integration with technology
BPM can be categorized in 5 categories
- Design
- Modeling-what-if analysis
- Execution-changes are implemented. key indicators of success are developed
- Monitoring
- Optimization
Techniques for BPM
- Define- WHere are we now?
- Measure-Objectively are we getting better?
- Analyze-Best options available?
- Improve-is selected and implemented
- Control-Does it work?
Measures for BPM
1) Gross Revenue-Financial Non-Financial 2) Customer Contracts-Leads 3) Customer Satisfaction-Complaints 4) Operational Statistics-Time
Benefits of BPM
- Efficiency
- Effectiveness
- Agility- Responses to change are faster and more reliable
Process management (PDCA)
Plan-Design the planned process environment
Do-Implement the process improvement
Check -Monitor the process improvement
Act-Continuously commit to the process and reassess the degree of improvement
Benefits
1) Efficiency- Fewer resources are used to accomplish organizational objectives
2) Effectiveness-Obj. are accomplished with greater predictability
3) Agility- Responses to change are faster and more reliable
Shared Services
Seeking out redundant services, combining them and then sharing those services within a group or organization.
Ex. HR, payroll, and legal dept. services will be consolidated into one centralized functions.
Shared Services Implications for Business Risks and Controls -gaining efficiency
a) Service flow disruptions
b) Failure demand
Outsourcing
Contracting services to an external provider.
Outsourcing: Implications for Business Risks and Controls -gaining efficiency
a) Quality Risk -Product or service may be defective
b) Quality of Service-Poorly designed service agreements may impede the quality of service.
Outsourcing Issues Continued
a) Quality Risk -Product or service may be defective
b) Quality of Service-Poorly designed service agreements may impede the quality of service.
c) Productivity
d) Staff turnover
e) Language Skills
f) Security
g) Qualifications of Outsourcers
h) Labor Insecurity
Offshore Operations
relate to an outsourcing of services or business functions to an external party in a different country.
Common types of Offshore Outsourcing
a) IT
b) Business Process( Call centers)
c) Software research and development
d) Knowledge Process
Selecting Improving Initiatives
A) Irrational- Intuitive & Emotional
B) Rational- Structured & Systematic
Implementing Improvement Initiatives
1) Internal Leadership
2) Inspections
3) Executive Support
4) Internal Process Ownership-Accountability
Business Process Engineering
Refers to techniques to help organizations rethink how work is done to dramatically improve customer satisfaction and service, cut costs of operations and enhance competitiveness.
Performance Improvement
Provide the highest quality goods and services in the most efficient and effective manner possible.
Just in Time (JIT)
JIT mgmnt aticipates achievement of efficiency by scheduling the deployment of resources of JIT to meet customer or production requirements
JIT & Inventory
The underlying concept is that inventory does not add value. The maintenance of inventory on hand produces wasteful costs.
Benefits of JIT
1) Synch of production scheduling with dept.
2) Arrival of supplies at regular intervals throughout the production day.
3) Improved coordination and team approach with suppliers
4) More efficient flow of goods between warehouses and production
5) Reduces set-up time
6) Greater efficiency in the use of employees with multiple skills
Costs of Quality
Conformance with quality standards & correcting nonconformance with quality standards.
Prevention + Cure
Conformance Costs
Prevention and appraisal costs
Prevention costs - Prevent the production of defective units
1) Employee Training
2) Inspection expenses
3) Preventive maintenance
4) Redesign of product
5) Redesign of processes
6) Search for higher quality suppliers