session 3: business process optimization

Question 1

business process

Answer 1

an ongoing collection of related activities that create a product or service of value to organization

Question 2

3 elements in business process:

Answer 2

inputs
resources
output

Question 3

competitive advantage

Answer 3

any assets that provide an organization with an edge against competitors

Question 4

2 metrics to asses performance of a firm

Answer 4

effectiveness: are we doing what matters
efficiency: are we doing things without wasting any ressources

Question 5

cross-functional processes

Answer 5

: process that involves multiple divisions of each of which make its part in total workflow

Question 6

marketing business processes

Answer 6

managing post-sale customer follow-up
handing customer complaints
collecting sales tax
handling returned goods from customers
applying copyrights and trademarks
producing sales leads

Question 7

mgmt info system business processes

Answer 7

antivirus control
applying electronic mail policy
computer security issues
generating internet use policy
traning computer users
managing service agreements and emergency services

Question 8

procurement process

Answer 8

incluudes all of the tasks involved in acquiring needed materials externally from a vendor

Question 9

procurement process steps (5)

Answer 9

Warehouse :
-recognizes need for materials => pruchase requisition (Step1)
Purchasing department:
- identify suitable vendor, sends the order…(Step 2)
Warehouse:
-vendor ships the materials to the warehouse (Step3)
Accounting department:
- vendors send an invoice (Step 4)
-accounting sends payment to the vendor (Step 5)

Question 10

fulfillment process

Answer 10

concerned with processing customer orders

Question 11

fulfillment process steps

Answer 11

Sales department:
- customer purchase order
- validate order + creates a sales order
Sales order communicated data related to the order to other functiunal areas of org.
Warehouse:
- prepares and send the shipment to customer
Accouting:
- creates an invoice and send it to th ecustomers
- register customer payment

Question 12

Business process of ordering an e-ticket from an airline website

Answer 12

SEE lesson

Question 13

measures business process efficiency with

Answer 13

customer satisfaction
cost reduction
cycle and fulfillment time reduction
quality
differentiation
productivity

Question 14

IS vital role in business processes

Answer 14

Executing the process
Capturing and storing process data
Monitoring process performance

Question 15

IS in executing business processes

Answer 15

Inform people when its time to complete a task
Provide necessary data to complete the tasks
Provide means to complete the task

Question 16

IS in capturing/storing data in business processes

Answer 16

Processes generate data => IS caputres and stores these data called process data or transaction data
Data need to be entered only once, everyone can easily access them
Data captured can provide immediate feedback

Question 17

IS in monitoring business process perfomance

Answer 17

indicated how well a process is executing => evaulates info about the process
At 2 levels : process or instance
Identify pbls for improvments

Question 18

Business Process Reengineering (BPR)

Answer 18

“clean sheet” prespective
radical
lenghty
impact = overwhelming
top-down approach

Question 19

Business Process Improvement (BPI)

Answer 19

incremental approach
6 sigmas
low-risks/costs
bottom-up
quantifiable results
all employees trained in BPI
less time consuming

Question 20

6 sigmas

Answer 20

goal is to ensure that the process has no more than 3.4 defects/million

Question 21

5 phase to implement BPI

Answer 21

define: document the “as is” process
measure identifies relevant process metrics
analysis: identify pbls with the process and its root cause
improve: identify possible solutions and find the most appropriate solution
control : established process metrics and monitors improvments

Question 22

Business Process Management (BPM)

Answer 22

a management system that includes methods and tools to support the design, analysis, implementation, management and continuous optimization of core business processes.

Question 23

BPM components

Answer 23

process modelling : graphical depiction of all of the steps in a process
business activity monitoring

Question 24

Business Activity Monitoring (BAM)

Answer 24

a real-time approach for measuring and managing business processes
identify failurs or exception and address them in real time
creates valuable recors of process behaviours that org. use to improve process

Question 25

Business Process Management Suites (BPMS)

Answer 25

an integrated set of app used in BPM