Process Management _M1 Flashcards
What are the 6 elements in business process management?
Topic 1
- Approaches
2. Activities (5 components)
- Design
- Modeling
- Execution
- Monitoring
- Optimization
3 Plan, Do, Check, Act (PDCA) Do=Implement= Execution=Quality Assurance phase
4 Performance Measures (4 Components)
- Financial Metrics
- Customer Metrics
- Internal Process Metrics
- Organizational Growth Metrics
5 Benefits (3 Components)
- Efficiency
- Effectiveness
- Agility
6 Business Process Modeling
Business Process Reengineering (2 Components)
Topic 4
- Fresh Start: mgmt will wipe the slate clean; reengineering using benchmarking
- Current Status: Reengineering not as popular today.
What is business process reengineering (BPR)?
Business Process Reengineering (BPR) refers to techniques that organizations can implement that radically reform business processes to acjieve strategic objectives, such as improving customer satisfaction and service, cutting oprational cost, and enhancing competiveness. Seeks atypical changes that result in revolutionary shifts in the way a company performs a process.
Business Process Management seeks incremental change.
What are the 7 Management Philosophies and techniques for performance improvement?
5th topic
1. Just-In-Time (JIT) (2 Components)
- Inv does not add value
- Benefits
2 Total Quality Management (TQM) (7 Components)
1 Customer Focus (2 components)
* External Customers
* Internal Customers
2 Continuous Improvement
3 Workforce Involvement
* Quality Circles small groups of workers that uses team approaches to process improvement
4 Top Management Support
5 Objective Measures
6 Timely Recognition
7 Ongoing Training
3 Quality Audits and Gap Analysis (1 Component)
- Quality Audits
4 Lean Manufacturing (3 Components)
1. Waste Reduction
2. Continuous Improvement (Kaizen)
3. Process Improvements/Activity-Based Management (2 Concepts)
- Cost Identification
- Implementation ( Quality Assurance phase)
5 Demand Flow Systems (2 Components)
* Relationship to Just-In-Time
* Relationship to Lean
6 Theory of Constraints (TOC) (3 Components)
* Constraints (Internal and external)
* Five steps: I.D. Constraints, Exploit constraints, subordinate enerything else to above decision, Elevate constraint, return to 1st step
* Buffer
7 Six Sigma (2 Components)
* DMAIC
* DMAVD
What is Just-In-Time Inventory?
1 of 7 mgmt techniques for performance improvements
Efficiency improves by scheduling the deployment of resources just-in-time to meet customer or production requirements.
The company is..
* Reduction in the number of suppliers.
* Very dependent on supplier performance.
* Very close working relationship with existing suppliers.
* System linked with vendor’s order system.
* Dependent on timely deliveries from the vendor.
* Requires more deliveries from suppliers.
* More reliance on quality control by the supplier.
* Lot sizes equal to one
* Balanced and level workloads
* Insignificant set-up times and cost
* Inventory pull through system
Disadvantages:
* Finding defective goods as they arrive is too late.
* A stock-out could cause production to shut down.
What are the benefits of JIT?
- Synchronization of production scheduling on demand.
- Arrival of supplies at intervals throughout the production day.
- Improved coordination and team approach with suppliers.
- More efficient flow of goods between warehouses and production.
- Reduced setup time.
- Greater efficiency in the use of employees with multiple skills.
- Elimination of non-value-adding operations.
What is Total Quality Management (TQM)?
2 of 7 mgmt techniques for performance improvements
Represents an organizational commitment to customer-focused performance that emphasizes both continuous improvement and quality.
7 Critical Factors
1. Customer focus
2. Continuous Improvement
3. Workforce Involvement
4. Top Management Support
5. Objective Measures
6. Timely Recognition
7. Ongoing Training
Quality Circles which one is synonymous with
What are Quality Audits and Gap Analysis?
3 of 7 mgmt. techniques for performance improvement
Techniques used as part of strategic positioning in which mgmt. assesses the quality practices of the organization.
Quality Audit Procedures
* Analysis that identifies strengths and weaknesses.
* Strategic quality improvement plans that identify the improvement steps that will produce the greatest return to the organization in the short term and long term.
Gap Analysis
* Gap analysis determines the difference between industry best practices and current company practices.
* Focuses on quality while identifies areas that improvement to meet industry best practices.
What is Lean Manufacturing?
4 of 7 mgmt techniques for performance improvements
- Lean manufacturing or lean production emphasizes the use of only those resources required to meet the requirements of customers.
- Invest resources only in value-added activities.
- Quality is not the main focused here.
- Kaizen, or continuous improvement, occurs at the manufacturing stage where the ongoing search for cost reductions takes the form of analysis of production processes to ensure that resource uses stay within target costs.
(Goals or 3 Components):
1 Waste Reduction.
2 Continuous Improvement (Kaizen).
3. Process Improvement (2 Components)
- Cost Identification
- Implementation - Quality Assurance phase
What is Demand Flow Sytems?
5 of 7 mgmt techniques for performance improvement
- Manages resources using customer demand as the basis for resource allocation instead of using sales forecast or master scheduling.
- Related to JIT and Lean Manufacturing.
What is the Theory of Constraints (TOC)?
6 of 7 mgmt techniques for performance improvement
The Theory of Constraints (TOC) says that organizations are impeded from achieving objectives by the existence of one or more constraints or bottlenecks.
* Organizations or projects must be operated in a manner that either works around or leverages the constraint (in this case, the bottleneck).
* The theory of constraints is concerned with maximizing throughput by identifying and alleviating constraints.
1 Internal Constraints.
2. Five Steps.
- I.D. Constraint
- Exploit it
- Subordinate it to everything else to the above decisions
- Elevate it
- Return to first step.
3 Buffer.
What is Six Sigma?
7 of 7 mgmt techniques for performance improvement
Is a quality improvement program that uses metrics to evaluate the achievement of goals.
* Six Sigma emphasizes cost reduction above production constraints.
* Improving current processes for the purpose of reducing defective product outputs.
1 Existing Product and Business Process Improvements (DMAIC).
2 New Product or Business Process Development (DMADV).
What is Existing Product and Business Process Improvements (DMAIC)?
1 of 2 elements in Six Sigma
- Define the problem.
- Measure Key Aspects of the current process.
- Analyze data.
- Improve or Optimize Current Processes.
- Control.
What is New Product or Business Process Developement (DMADV)
2 of 2 elements in Six Sigma
- Define Design Goals
- Measure CTQ (Critical to Quality Issues)
- Analyze Design Alternatives
- Design Optimization
- Verify the Design
What are the disadvantages of outsourcing?
- Security concerns
- Language barriers
- Overall quality of service
