Graduate program in business information systems
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BIS 581 Business Process Management Lecture-2. Graduate Program in Business Information Systems. Aslı Sencer Department of Management Information Systems. Business Process Management- 2 Key Performance Indicators Process Identification. Key Performance Indicators - KPI.

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Graduate Program in Business Information Systems

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Graduate program in business information systems

BIS 581 Business Process Management

Lecture-2

Graduate Program in Business Information Systems

Aslı Sencer

Department of Management Information Systems


Graduate program in business information systems

Business Process Management- 2

Key Performance Indicators

Process Identification


Key performance indicators kpi

Key Performance Indicators - KPI

  • Performance measures called key performance indicators (KPI) are developed to evaluate the processes from different aspects.

  • BPM requires that the performance of the processes should be continually observed with respect to these KPI’s and documented periodically.

  • In the next step, current performances are compared with the target values that have been generated for these KPI’s.

  • Modifications are made in the process flow to improve the performance.

You can not control without measuring!


Classification of kpi s effectiveness efficiency flexibility

Classification of KPI’s:Effectiveness, Efficiency, Flexibility

Effectiveness:

  • Measures the degree to which an output fulfills the customer needs and requirements.

  • Measures if the right output is provided at the right time, place and price.

  • Can the process provide what is intended initially?

  • Can we produce more with the same input by decreasing defectives?


Classification of kpi s effectiveness efficiency flexibility1

Classification of KPI’s:Effectiveness, Efficiency, Flexibility

Efficiency:

  • Measures how much resource are used to obtain a given output? Resources are manpower, energy, machinery, raw material, capital and knowhow.

  • Measuring efficiency is more difficult than measuring effectiveness.

  • Aim is to decrease the amount of resource used to produce the same output.

  • Can we decrease the used resources by eliminating the non value adding activities?


Classification of kpi s effectiveness efficiency flexibility2

Classification of KPI’s:Effectiveness, Efficiency, Flexibility

Flexibility:

  • Measures the adaptability of the processes to the changing environmental conditions like special customer needs, new rules, regulations, emergency cases, etc.

  • A flexible process can be performed in a different way in special cases.

  • Flexibility is the most difficult performance to measure.


Process identification form

Process Identification Form


Graduate program in business information systems

Ex: Cross Functional Process Map

A Product Quality Test Process in a Fast Food Restaurant

Handoff

Handoff


Graduate program in business information systems

Example: Process Identification Form

M101

Product Quality Test Process in a Fast Food Restaurant

Periodically checking if the quality of the food prepared in the fast food restaurants conforms the quality standards.

Managerial process for internal customers

Istanbul Municipality Department of Public Health

General Product Quality Test Process in a Fast Food Restaurant

This process includes:

Checking the hygiene of the kitchen and service area

Product quality test process

Implementation of the test results

Take samples: Choose a samplePut into an hygienic bag  Put into a cooler

Take to laboratory: Put into the car Take to the lab

Analyze: Obtain the chemicals Apply test

Prepare a fine document

Prepare an appropriate condition document


Graduate program in business information systems

Example: Process Identification Form (cont’d.)

Pass/fail document approved by the test team

Sample food

Test team member

Istanbul Municipality

Test team member, Lab. Analyst, Lab. chemicals, Hygienic bag, Cooler, Lab materials

Checking the hygiene of the kitchen and service area

Take samples

Take to laboratory

Analyze

Prepare a fine document

Prepare an appropriate condition document

Implementation of the test results

General product quality testing process

Process duration

Cost

Number of tests/day

3-1= 2 (to be improved)

100-20=80 (to be improved)

10-30= -20 (to be improved)

Decrease

Decrease

Increase

Hr

TL

items

1

20

30

3

100

10

It takes long time to go the lab. (traffic problem exists, might think of portable analysis tools)

Long waiting time for the analyst (might think of increasing the staff size, check the support process for maintaining the chemicals)


Gap analysis

Gap Analysis

Improvement needed

  • Measure to be decreased

Gap=Current-Target

  • Gap > 0

  • Measure to be increased

  • Measure to be decreased

  • Gap < 0

Improvement needed

  • Measure to be increased


Group exercise 2 process identification

Group Exercise 2: Process Identification

1) Complete the process identification form for the registration process.


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