Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
118 Cards in this Set
- Front
- Back
|
Why should you study BPM? |
Processes are at the core of every organization and process improvement is highly valued |
|
|
Which structure is more likely to favour individual incentive rewards: function or product? |
Function because it needs expertise or specialization |
|
|
What are waves of process improvement? |
- Specialization - Production lines in Henry Ford’s car factory - Total Quality Management (TQM), 1980s - Business Process Reengineering (BPR), 1990s - Enterprise Architectures (EA), 2000s - Business Process Management, 2010s |
|
|
BPM is the convergence of three approaches to process improvement. What are they? |
Business Management Quality Control Information Technology |
|
|
What are the problem (according to TQM)? |
* functional groups work for themselves, and sometimes against the overall process * quotas and targets lead to game playing * hierarchical control takes away workers' desire to improve and maintain quality * managers become distant from the realities of work process |
|
|
Who did develop Six Sigma? |
Developed by Motorola, by Mikel Harry |
|
|
The Seven Types of Waste (Lean, Six Sigma) key: WORM PIT |
1. Waiting 2. Overproduction 3. Rework 5. (Over) Processing 6. Inventory 7. Transportation |
|
|
What are key points of BPR? key: replace, radical, enabler, office |
• Emerged in 1990s • Originated in USA by Davenport and Hammer • Focus on obliteration of old processes and replacement with radically innovative business processes • “Reengineering is the radical redesign of business processes for dramatic improvement”. • IT seen as a critical enabler of new processes • Focused on processes in the office, not the factory |
|
|
What is difference between impact of TQM vs BPR in the devil’s quadrangle? |
TQM impact Quality BPR impact Cost and Time |
|
|
What are Enterprise Systems? key: integrated, IT, support process |
Enterprise systems (ESs) are large-scale, integrated application-software packages that use the computational, data storage, and data transmission power of modern information technology to support processes, information flows, reporting, and data analytics within and between complex organizations. |
|
|
What are examples of Enterprise Systems? |
ERP CRM SCM SAP’s NetWeaver DWH |
|
|
What is configuration? |
Each module has tables in which pre-defined settings are made: e.g. to specify the country of use; preferred accounting procedures; GST, etc. |
|
|
What is customisation? |
Special pieces of software can be written and added to the ES software code. |
|
|
What is “Best practice” processes? |
A single best way to design and manage an organisational process which is the same across most industries and organizations. This includes critical areas from complex sales management and partner relationship management to service management. |
|
|
What is CRM? |
Customer relationship management (CRM) software is “packaged software that supports an organization’s customer strategy and customer-focused business processes.” |
|
|
What are benefits? key: customer management business service |
– Improved Customer-facing Processes – Improved Management Decisions – Improved Customer Service – Increased Business Growth and Revenue |
|
|
What are the costs that caused by vulnerabilities? |
– Employee Fraud (agency cost) – Human Error (internal coordination cost) |
|
|
What are five control checks key: input and update |
1. Input validity 2. Input completeness 3. Input accuracy 4. Update completeness 5. Update accuracy |
|
|
What are the four main symbols used in a Data Flow Diagram? |
Data stores, data flows, external agents and processes |
|
|
What is the best way to describe the purpose of levelling with DFDs? |
To manage complexity |
|
|
What is shown in a physical DFD that is not shown in a logical DFD? |
People and departments who carry out the work |
|
|
An assumption, associated with a model of process, is best described as: from lecture: is something that the analyst decides to be true in order that the model can be drawn. |
A guess about the facts that are being modelled |
|
|
Why do processes need internal controls? |
To reduce fraud and errors |
|
|
What is principle of segregation of duties? |
People working in a process should not do all of the steps. It should be divided between different people. |
|
|
What steps are involved for segregation of duties? |
1. Authorizing transactions 2. Executing transactions 3. Recording transactions 4. Safeguarding resources |
|
|
One of the early champions of Business Process Re-engineering was: |
Michael Hammer |
|
|
Which of the following is NOT a principle of Total Quality Management? |
Take advantage of new developments in technology |
|
|
What are principle of Total Quality Management? |
- reduce the variability of processes - focus on the needs of external and internal customers - avoid quotas and performance targets - aim for continual improvement |
|
|
Which of the following was an aim of the Business Process Re-engineering project of the Ford Motor Company discussed in lectures: |
Invoiceless sales order processing |
|
|
Which of the following is true for BOTH Business Process Re-engineering and Total Quality Management? |
It has been used successfully by Ford Motor Company |
|
|
Six Sigma is a current approach to process management which is: |
Inspired by TQM but with greater use of statistical methods |
|
|
On which of the following process outcomes does BPR place its main emphasis? |
Cost and Time |
|
|
The principle of using a Case Manager is most closely associated with which management approach(es)? |
Total Quality Management (TQM) |
|
|
With an Enterprise System (ES), what does the term Customisation mean? |
Making special pieces of software that can be added to the ES packages software code |
|
|
Define an organisational process and explain its important characteristics? |
A Collection of related events, activities and decisions, that involve a number of actors and resources, and that collectively lead to an outcome that is of value to an organization or its customers. |
|
|
Explain why ‘process thinking’ is a significant way to understand organisation design. |
Process thinking ... ... ties organisation design to the source of value, ie the external stakeholders, it allows us to see what is contributing to value and what is not. ... address coordination between different functions or groups in the organisation ... promotes efficiency in repeated patterns of activity that are critical to creating value. |
|
|
Why is ‘process thinking’ especially important for the design of Information Systems? |
Process thinking is important to the design of Information Systems because ... ... it focuses on the necessary exchange of information along the chain of a process. ... and it facilitates the centralisation of information storage that informs each step of the process. |
|
|
What is the purpose of IGOE diagrams? In other words, how might people in organisations find IGOE diagrams useful? |
The purpose of an IGOE diagram ... to show inputs and outputs from stakeholders and/or adjacent processes in the organisation ... to show the rules that govern the process, such as safety laws, and enablers that are the resources and tools that perform the work of the process. |
|
|
What are bigger purpose of IGOE diagrams? |
... communicate a clear picture to non-IT people and especially senior managers, so that they might confirm or deny what the analysis shows .... to reach consensus among managers in the organisation about the purpose of a process. ... to show the potential source of problems affecting the smooth running of the process - for example, inappropriate rules or insufficient enablers. |
|
|
What are types of organisational processes? |
• manufacturing processes • purchasing and sales processes • administrative processes, e.g., accounting, HR |
|
|
What is business process? key: activities & value |
A business process is a coordinated and logically sequenced set of work activities and associated resources that produce something of value to a customer |
|
|
Why draw process models? |
to understand, explain, and improve complex processes as a representation that is concise, easy to understand and easy to maintain |
|
|
Who develop DFD? |
DFDs were developed in the late 1970s by two groups of people associated with the US consulting firm, Yourdon Inc. |
|
|
What are things that must NEVER happen in a DFD? |
- NEVER connect one external agent to another external agent. - NEVER connect an external agent directly to a data store. |
|
|
What DFDs show (and what they hide!)? |
DFD shows 'information plumbing' DFDs do NOT show when or why information travels. |
|
|
What is an organisation? key: entity & goals |
Organisations are created entities within and through which people interact to reach individual and collective goals. |
|
|
What are structures? |
Functional Product Geographical Customer |
|
|
Can you think of an example of a recent business model innovation that changed the way a particular industry worked? |
Video Rental Market |
|
|
What is TQM: Ishikawa's principles? |
– quality comes first, not short-term profits – the customer comes first, not the producer – customers are the next process with no organizational barriers – decisions are based on facts and data |
|
|
What are tenets of TQM in summary key: quality to measure variability for internal customer to improve cross empower |
• Put QUALITY first • MEASURE quality at every step! • Focus on VARIABILITY • Each process step treats the next group as an INTERNAL CUSTOMER • Focus on CONTINUOUS IMPROVEMENT of the process • Establish CROSS-FUNCTIONAL TEAMS • EMPOWER people who are close to the work to make decisions about quality |
|
|
What is Six Sigma? |
Approach to process management that continues the Quality tradition that improve the process within in acceptable limits (6 standard deviations away from the mean) |
|
|
What are Six Sigma analysis step? key: demearol |
Define Measure Analyze Improve Control |
|
|
What is Lean? |
An approach to process improvement that focuses on efficiency to reduce seven types of waste |
|
|
What are principles of BPR? key: process, all tasks, IT and combination |
Organise around processes, not tasks Train workers to be able to carry out all of the tasks in their process. Use IT to make information available in real-time throughout a process. IT enables the combination of simple tasks previously performed by many different people into more complex one-person jobs that provided higher levels of customer service. |
|
|
What is structured process? |
A structured process is one where all the steps required to execute the process may be specified in advance. Typically executed the same way over and over again. |
|
|
What is unstructured process? |
Unstructured processes are hard to define in advance. Human judgement is often required. Rarely are the same steps executed in the same order. |
|
|
What is difference between case manager and case assignment? |
Case manager: manager Case assignment: worker |
|
|
What are four pillars of the new sourcing- management process at Merck? key: source people to supply expense |
1. The Sourcing-Management Process 2. People 3. Supplier relationship management 4. Expense management |
|
|
What is the key of Galbraith’s Star Model of Organisational Design? |
The key is to achieve fit between the factors. |
|
|
What does Capabilities mean? |
What are our unique integratedcombination of skills, processes,human abilities, (and technology)? |
|
|
What does Structure mean? |
• How are we organised? • What are the key roles? • How is work managed? • Who has power and authority? |
|
|
What does Processes mean? |
• How are decisions made? • How does work flow between roles? • What are the mechanisms for collaboration? |
|
|
What does Rewards mean? |
• How is behaviour shaped by the goals? • How do we assess progress? |
|
|
What does People mean? |
• What skills are needed? • How do we best develop our talent? |
|
|
What is agency cost? |
Agency theory identifies the costs of a forming a firm (relative to open markets). |
|
|
Why firms exist? key: scale labour in market |
1. To achieve economies of scale. 2. Specialization of labour. 3. Because market transactions are costly. |
|
|
What are three types of Agency costs? key: bomor |
Bonding costs Monitoring costs Residual losses |
|
|
What is internal control? key: integrated, assurance, goal |
Internal control is a system of integrated elements - people, structure, processes, and procedures - acting together to provide reasonable assurance that an organization achieves business process goals. |
|
|
Explain about IGOE! |
|
|
|
What are business drivers for BPM? |
1. need to save money by reducing cost or improving productivity 2. improve customer satisfaction 3. improve management coordination |
|
|
What are cost of ES? |
licencing, implementation and maintenance |
|
|
What are the flexibility issue of ES? |
package selection, configuration, customization |
|
|
How does IT contribute to processes? |
1. makes individuals and routine organizational processes more efficient and effective 2. facilitates communication and collaboration between members 3. be used to collect and analyze information to improve decision making |
|
|
What are problems with legacy systems? |
1. Data stored in different systems, in different formats 2. Maintaining many different computer systems 3. Fragmented systems = fragmented business |
|
|
What are examples of CRM Functionality |
1. Telesales 2003 2. Solution Database, September 2001 3. Customer Interaction Center, Sep 2001 |
|
|
What is rule of thumb of Enterprise Systems implementation? |
Five times the initial cost of the software |
|
|
What is Total Quality Management focus? |
reduction of variability and continuous incremental improvement |
|
|
Who are The Quality Gurus? |
W. Edwards Deming1900 – 1993 Joseph M. Juran1904 – 2008 Kaoru Ishikawa1915 - 1989 |
|
|
What are Deming’s 14 Points for Management? |
1) Create constancy of purpose toward improvement of product and service. 2) Adopt the new philosophy. 3) Cease dependence on mass inspection. 4) End the practice of awarding business on the basis of price tag alone. 5) Improve constantly and forever the system of production and service. 6) Institute training and retraining. 7) Institute leadership. 8) Drive out fear. 9) Break down barriers between staff areas. 10) Eliminate slogans, exhortations, and targets for the work force. 11) Eliminate numerical quotas. 12) Remove barriers to pride of workmanship. 13) Institute a vigorous program of education and retraining. 14) Take action to accomplish transformation. |
|
|
What are other Deming-inspired changes in Ford? |
– Ford changed its staff appraisal system from a ten point scale (1= awful to 10=star) to a three point scale (1=awful, 2=good, and 3=star; 89% to be “good”). – Suppliers were viewed as partners not people to be beaten down to the lowest price. – New product development was done with teams from marketing, design, through manufacturing and maintenance. Suppliers were included in the team, e.g., development of the new Taurus. |
|
|
What are companies that claiming great benefits? |
Honeywell, Black & Decker, Texas Instruments |
|
|
What are key Six Sigma techniques? |
1. measuring outcomes and reducing the variability of each step 2. processes are mapped into: suppliers, inputs, the process itself, outputs, customers 3. A Critical-to-Quality chart maps the outcomes desired by the process analysts 4. A Cause-and Effect diagram is created to identify the obstacles to achieving the quality goals |
|
|
What is SCM? |
Process-orientated, integrated approach to procuring, producing, and delivering products and services to customers. |
|
|
What are SCM benefits? |
– Reduced inventory – Increased speed of interactions with real-time data exchange – Increased revenue by satisfying customer needs more efficiently |
|
|
What is supply chain? |
Sequence of events that covers a product’s entire life cycle, from conception to consumption |
|
|
What is bullwhip effect? |
The bullwhip effect is a distribution channel phenomenon in which forecasts yield supply chain inefficiencies |
|
|
What is data warehouse? |
A data warehouse is a relational database that is designed for query and analysis rather than for transaction processing |
|
|
What is Business intelligence (BI) software? |
A collection of decision support technologies for the enterprise aimed at enabling knowledge workers |
|
|
What are enablers in IGOE? |
Enablers are the resources or assets required to transform an Input into an Output or to create Outputs. • Human Resources •Systems •Facilities •Tools •Equipment |
|
|
What is purpose of DFD? |
Tools to reduce ambiguity of verbal descriptions |
|
|
What are key concepts of DFD? |
Ambiguity Assumptions The system boundary |
|
|
What does the model tell? |
Models try to remove ambiguity, by clarifying who does what (physical) or what tasks are carried out (logical) |
|
|
What are general properties of Processes? key: CCTVRC |
• Cycle • Case • Trigger • Volume • Rhythm • Cross-functional boundary |
|
|
What are advantages of functional structure? |
- allow transfer ideas - allow greater scale, specialization and standardization |
|
|
What are disadvantages of functional structure? |
- barriers between different functions - overwhelming if there are variety of products |
|
|
What are advantages of product structure? |
compress the product development cycle |
|
|
What are disadvantages of product structure? |
- duplicate resources - challenging when customers buy from more than one product division |
|
|
What is black hole? |
processes that consume information or goods for no apparent reason ie. without related outputs |
|
|
What is magic process? |
processes that produce information or goods impossibly, ie. without the necessary inputs. |
|
|
What are being shown in CONTEXT DIAGRAM? |
- ONE process representing the overall system - ALL of the external agents - NO data stores |
|
|
What is Business Process Management Notation (BPMN)? |
One set of rules for drawing workflow models |
|
|
How to name the overall process in BPMN? |
adjective (of main object) + noun (of main action) e.g. order handling process |
|
|
How to name activities in BPMN? |
Activities are expressed as logical tasks verb + noun |
|
|
What are seven areas of process design? key: COBOOITE |
1. Customers 2. Business Process Operations 3. Business Process Behaviour 4. Organization 5. Information 6. Technology 7. External Environment |
|
|
Why is inventory fluctuation a risk? |
- Too much (stockpiling) - Too little (undersupply) |
|
|
What are the risk of stockpilling? |
- cost of storage space - capital outlay with no return on investment - perishable goods - obsolete parts/goods |
|
|
What are the risk of undersupply? |
- delay in supply - unable to benefits from economy of scale - leads to stockpiling of associated components |
|
|
What is shown in a logical DFD that is not shown in a physical DFD? |
activities carried out |
|
|
What are similarities between TQM and BPR? |
1. honor the importance of business and product process 2. methods and tools are same, for example: cross-functional teams |
|
|
What are differences between TQM and BPR? |
1. in TQM, cross-functional team means permanent team of managers. in BPR, it means ad hoc teams of managers and experts who work together for duration of project 2. TQM effect: Quality. BPR effect: Cost & Time 3. TQM focus on continuous improvements while BPR is concerned about product innovations. 4. TQM emphasis on the use of statistical process control while BPR emphasis on the use of information technology. |
|
|
What relationship does Agency Theory seek to explain? |
Principal and agent in business |
|
|
What does input validity mean? |
is the information a true reflection of the world? |
|
|
What does input completeness mean? |
is all of the relevant information included? |
|
|
What does input accuracy mean? |
is the information recorded correctly? |
|
|
What does update completeness mean? |
is all relevant information kept together when updated? |
|
|
What does update accuracy mean? |
is accuracy preserved when information is updated? |
|
|
What is agency theory? |
The agency theory is a supposition that explains the relationship between principals and agents in business. |
|
|
How to achieve fit? |
|
