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Business Processes 2015 - Overview

A summary of (some of) the materials covered in weeks 1-6

Alinda Kokkinou

on 12 October 2015

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Transcript of Business Processes 2015 - Overview

Improve a Process!
As much as you can!
The process is carefully examined and modeled and relevant performance measures are identified.
Document the Process
Your choice of chart will depend on why you are building one in the first place
Models/ Charts
A flowchart is a type of diagram that represents an algorithm or process, showing the steps as boxes of various kinds, and their order by connecting these with arrows
An organized way to document all the activities performed by a person or group
Process Charts
Indicators that can be used to evaluate quality, cost, or other characteristics of an activity or process.
Performance Measures
Single Factor Productivity
Multi Factor Productivity
Total Factor Productivity
Unidimensional vs. Multidimensional Performance Measures
Conformance to Specifications
Fitness for Use
Psychological Impressions
Knowledge of salesperson
Responsiveness of helpdesk
Average waiting time
Number of customers waiting more than 3 minutes
Service level
Number of items of luggage lost
Number of calls dropped
Safety is oftentimes overlooked...
Number of accidents per 1,000 worker hours
There are still other categories that you could consider, depending on the process that you are trying to improve!
Information is collected about the process's performance
SIX SIGMA SPEAK: Determine the current process characteristics critical to customer satisfaction and identify any gaps
SIX SIGMA: Quantify the work the process does that affects the gap
SIX SIGMA SPEAK: Use data on measures to perform process analysis
Fishbone diagrams are used to identify many possible causes for an effect or problem.
They are a qualitative tool.
Fishbone Diagrams
Statistics are collected about the performance measures
Change the process in such a way that you can improve the performance measures
Improve / Implement
Automation oftentimes can contribute to improved process performance by improving quality, safety, timeliness and/or productivity
Computer based systems that provide information and support for effective managerial decision-making
Management Information Systems (MIS)
Keep track of the performance measures to ensure the process continues to perform well
SIX SIGMA SPEAK: Modify (or redesign) existing methods to meet the new performance objectives.
SIX SIGMA SPEAK: Monitor the process to make sure high performance levels are maintained.
Improve Training!
(re)DESIGN the Process
For example when you cannot improve it enough
Process strategy is an organization’s approach to transforming resources into goods and services.
The choice of a process strategy influences Cost Quality Volume Variety
Process Strategy
Competitive priorities are the critical dimensions that a process must have to satisfy internal and/or external customers.
Competitive priorities relate to cost, quality, time and flexibility
Competitive Priorities
Lost Cost Operations
Top Quality
Consistent Quality
Delivery Speed
On Time Delivery
Development Speed
Volume Flexibility
Design for Six Sigma
Customer Satisfaction
Continuous Improvement
Employee Involvement
TQM Implementation
>>>Silo View
Silo View <<<
>>>Silo View
Quality systems that
measure, analyse, improve ànd control
Deming cycle
: Plan - Do - Check - Act
Six Sigma
Improvement Model: a five-step process Makin use of the DMAIC process: Define - Measure - Analyse - Improve - Control
: Lean is a philosophy that seeks to eliminate waste in all aspects of a firm’s production activities: human relations, vendor relations, technology, and the management of materials and inventory.

Value Stream Map (VSM)
- The key to starting any Lean effort. You have to know where you are and where you want to go.
Total Quality Management (TQM)
Philosophy that stresses three
principles for achieving high levels of process quality and performance:
Customer Satisfaction
Employee Involvement
Continuous Improvement
Full transcript