Process Management Flashcards
Seeks to coordinate the functions of an organization toward and ultimate goal of continuous improvement in customer satisfaction
Business process management (BPM)
Five categories that go into business process management (BPM) are:
Design Modeling Execution Monitoring Optimization
Measures or process metrics can be financial or non financial and should correlate directly to the managed process under this:
Key performance indicators (KPI)
Four measure categories under KPIs are:
Financial measures
Customer measures
Internal process measures
Organizational growth measure
A standardized system of diagrams, symbols and visuals used to depict business processes:
Business process modeling notation (BPMN)
Seeking out redundant services, combining them, and then sharing those services within a group or organization is called
Shared services
Some negatives that could results from implementing shared services are:
Service flow disruption (creates waste in the transition, rework, or duplication) Failure demand (when a task must be performed for a second time because it was incorrectly performed the first)
Contracting services to an external provider is called
Outsourcing
Negative risks that can occur from implementing outsourcing are:
Quality risk - product or service might be defective Quality of service - poorly designed service agreements may impede the quality of service Productivity may be reduced Staff turnover Language skills Security Qualifications of outsources Labor insecurity
Intuitive and emotional methods that lack structure and systematic evaluation. Based on fashion, fad, or trend that may result from an immediate need for cost reduction and stem from short term viewpoints are what type of improvement initiative?
Irrational methd
Structured and systematic method that involves strategic gap analysis, review competitive priorities, review production objectives, and choose improvement program is what type of improvement initiative?
Rational method
Techniques to help organizations rethink how work is done to dramatically improve customer satisfaction and service, cut costs of operations, and enhance competitiveness. It the idea that management wants to “wipe the slate clean” and reassess.
Business process re-engineering (BPR)
How is BPR different than BPM?
BRP seeks radical change and BPM seeks incremental change
Benefits of Just in Time implementation are:
Synchronization of production schedule with demand
Arrival of supplies at regular intervals
Improved coordination with suppliers
Efficient flow of goods between warehouses and production
Reduced setup time
Greater efficiency in use of employees with multiple skills
An organizational commitment to customer-focused performance that emphasizes both quality and continuous improvement. Recognizes that each function of the corporation exists to satisfy the customer (both external and internal).
Total quality management (TQM)
7 critical factors of TQM are:
Customer focus Continuous improvement Workforce involvement Top management support Objective measures Timely recognition Ongoing training
Seeks to only invest resources in value-added activities. Focuses on waste reduction and continuous improvement (Kaizen).
Lean manufacturing
Manages resources using customer demand as the basis for resource allocation rather than sales forecasts or master scheduling
Demand flow
Evident when the market demands more than the system can produce such as:
Equipment is inefficient
People lack skills or mind-set to produce required efficiencies
Policies prevent the efficient use of resources
Internal constraints
Exist when the system produces more than the market requires
External constraints
Five steps of the theory of constraints are:
Identification of constraint Exploitation of constraint Subordinate everything else to the above decision Elevate the constraint Return to first step
Strives to reduce product or service defects to near zero. Requires specialized training and is a continuous quality improvement program:
Six sigma
Methodologies under six sigma that improve existing products:
(DMAIC)
Define the problem Measure key aspects of the current process Analyze data Improve or optimize current processes Control
Methodologies under six sigma to improve new products:
DMADV
Define design goals Measure critical to quality issues Analyze design alternatives Design optimization Verify the design
