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Business Processes 2016 - Overview

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

Alinda Kokkinou

on 10 October 2016

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Transcript of Business Processes 2016 - 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
ERP: a single information system for organization-wide coordination and integration of key business processes.

Information that was previously fragmented in different systems can seamlessly flow throughout the firm so that it can be shared by business processes in manufacturing, accounting, human resources, and other areas.

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
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.

TBA – Time Based Analysis
- Time spent on things the customer doesn’t want …
and definitely doesn’t want to pay for…

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