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Chapter 1 2 The Process View of the Organization

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Chapter 1 2 The Process View of the Organization

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    1. Chapter 1 & 2 The Process View of the Organization

    2. 2 Operations & the Process View: What is a Process? Architectures Customer interface Competency Architectures Customer interface Competency

    3. Categorizes processes into one of five clusters Similar processes tend to have similar problems There exists a long-term drift from the upper left to the lower right Categorizes processes into one of five clusters Similar processes tend to have similar problems There exists a long-term drift from the upper left to the lower right

    4. 4 The Matrix: Reloaded

    5. 5 Focus and the Frontier In the health-care sector Operational tradeoffs – balance responsiveness w/efficiency Tools to identify & eliminate inefficiencies Evaluate designs prior to implementation Develop appropriate capabilities iaw your strategy Operational tradeoffs – balance responsiveness w/efficiency Tools to identify & eliminate inefficiencies Evaluate designs prior to implementation Develop appropriate capabilities iaw your strategy

    6. Processes: how to describe them?

    7. Inventory, Rate, and Time Who cares about it? Economic impact - Air travel – Retailing – Emergency Room – Iron Ore - Pacemakers Causes: Rigidity & Variability Types Pipeline, Seasonal, Cycle, Decoupling/Buffer, Safety Who cares about it? Economic impact - Air travel – Retailing – Emergency Room – Iron Ore - Pacemakers Causes: Rigidity & Variability Types Pipeline, Seasonal, Cycle, Decoupling/Buffer, Safety

    8. Little’s law: It’s more powerful than you think... Out of the three fundamental performance measures (I,R,T), two can be chosen by management, the other is GIVEN by nature Hold throughput constant: Reducing inventory = reducing flow timeOut of the three fundamental performance measures (I,R,T), two can be chosen by management, the other is GIVEN by nature Hold throughput constant: Reducing inventory = reducing flow time

    9. Inventory Turns in Retailing : Link to Inventory Costs

    10. 10 Measuring Your Process Financial Measures Absolute measures: revenues, costs, operating income, net income Net Present Value (NPV) Relative measures: ROI, ROE ROA Survival measure: cash flow

    11. 11 Measurement Models Balanced Scorecard Organization Balanced Scorecard Discussion Baldrige National Quality Program

    12. 12 Balanced Scorecard

    13. Baldrige Criteria & Balanced Scorecard

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