Week%201%20Additional%20Readings%20BDMM%20Chapter%202%20

Week%201%20Additional%20Readings%20BDMM%20Chapter%202%20 -...

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Chapter 2 Workflow and Process Analysis What You Will Find Out About in This Chapter ¾ Understand the objectives and the role of process analysis ¾ Recognise the differences between a functional and a processual view of organisations ¾ Use a process map to describe a workflow system ¾ Conduct process analysis for different types of businesses and for different purposes ¾ Evaluate an existing process from different perspectives ¾ Learn about some useful analytical tools
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Management Accounting for Change: Process Improvement and Innovation 24 2.1 INTRODUCTION . ............................................................................................................................................ 25 2.2 BUSINESS PROCESSES AND THE ORGANISATION. .............................................................................. 26 2.2.1 What is a Process? . ..................................................................................................................................... 26 2.2.2 The Systemic Context of Processes . .......................................................................................................... 26 2.2.3 The Generic Value Chain of Organisations. .............................................................................................. 28 2.2.4 Processes, Sub-processes and Activities. ................................................................................................... 29 2.2.5 Different Types of Processes. ..................................................................................................................... 30 2.2.6 Workflow Management, Project Management and Process Analysis . ..................................................... 31 2.2.7 Processual vs. Functional View of Organisations. ..................................................................................... 33 2.3 WHAT IS PROCESS ANALYSIS?. ................................................................................................................. 34 2.3.1 Objectives of Process Analysis . ................................................................................................................. 35 Objective 1 - Understanding. ........................................................................................................................... 35 Objective 2 - Monitoring. ................................................................................................................................ 36 Objective 3 - Prioritising . ................................................................................................................................ 36 Objective 4 - Problem Solving . ....................................................................................................................... 36 2.3.2 Step 1 - Identify the Process. ...................................................................................................................... 36 2.3.3 Step 2 - Charting the Existing Process. ...................................................................................................... 37 2.3.4 Step 3 - Evaluating the Existing Process. ................................................................................................... 40 Value-added Versus Non-value Added Activities. ......................................................................................... 41 Performance Appraisal: Efficiency vs. Effectiveness. .................................................................................... 44 Evaluation of Value Parameters. ..................................................................................................................... 45 2.3.5 Step 4 - Continuous Improvement and Business Process Re-engineering. ............................................... 49 2.4 SOME USEFUL TOOLS FOR PROCESS ANALYSIS . ................................................................................ 51 2.4.1 Root Cause Analysis. .................................................................................................................................. 51 2.4.2 Fishbone Diagrams. .................................................................................................................................... 51 2.4.3 Statistical Process Control. ......................................................................................................................... 53 2.4.4 Pareto Diagrams. ......................................................................................................................................... 55 2.5 CONCLUSION. ................................................................................................................................................. 57
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Chapter 2 Workflows and Process Analysis 25 2.1 INTRODUCTION In recent years, managers have become increasingly aware of the importance of process analysis. In essence, process analysis is the link between strategic goals and resourcing to achieve those goals. That is, by focusing on business processes, process analysis seeks to realign task performance and resource use so as to realise desired strategic goals and enhanced customer value. The reason for the linkage is that a firm’s processes possess certain attributes that support (or constrain) its ability to meet the customer value parameters of time, quality and cost. These process attributes include (but are not limited to): 1. Responsiveness Capacity Flexibility 2. Productivity Efficiency Consistency 3. Linkages Coordination 4. Innovativeness Product design Process design 5. Empowerment For example, higher capacity levels may increase responsiveness and reduce lead- time and thus increase the chance of on-time delivery (i.e. the time dimension of customer value). However, on the other hand, unused capacity may be less efficient and lead to higher costs and hence prices (i.e. the cost dimension of customer value).
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This note was uploaded on 06/12/2011 for the course ASB 1001,2522, taught by Professor Nicole during the One '09 term at University of New South Wales.

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Week%201%20Additional%20Readings%20BDMM%20Chapter%202%20 -...

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