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Slide 1
Certified Business Process Professional (CBPP) Study Session
Part 3 Sept. 1, 2010
Slide 2
ABPMP 2 ABPMP Part 3 of Certification Overview Process
Performance Management Tony Benedict President ABPMP Process
Improvement Methodologies Gabrielle Field VP Certification, ABPMP
Todays session will cover your questions on the key concepts for
these topics We will review sample questions to prepare for the
exam format
Slide 3
ABPMP 3 ABPMP House Keeping Only the call in option is
available today to increase the recording quality of the webinar An
On Demand version of this will be available through the ABPMP
website A PDF of the slides will also be available for this webcast
with the On Demand version
Slide 4
4 BPM CBOK Knowledge Areas
Slide 5
5 5.0 Process Performance Management 14 Questions 10% of the
Exam 5.0 Effective Process Measures Understand the role and
objectives of measurements and metrics in the Process Performance
Management Describe fundamental metrics dimensions and
characteristics of effective metrics Describe the concept of "value
added" versus "non-value added" measurement approaches 5.1
Importance and benefits of (cross-functional) performance
management Understand the benefits of cross-functional process
improvement efforts versus isolated functional area improvements
Understand the reasons for continues process monitoring and
control
Slide 6
6 5.0 Process Performance Management 14 Questions 10% of the
Exam 5.2 Alignment of business process and enterprise performance
Understand the difference between functional and cross-functional
(enterprise level) metrics Understand the difference between the
key approaches to process improvement methods; explain the key
differences in the tools used by each Decision support for process
owners and managers Describe the reasons for planning for
monitoring and controlling of business processes Describe the role
of business intelligence in decision support for process owners and
managers
Slide 7
ABPMP 7 ABPMP Importance of Performance Measurement Aligning
process performance to organizational goals is primary reason for
process management If you cant measure it, you cant manage it
Focusing on process & associated process performance metrics
vs. just financial metrics yields greater overall performance
improvements
Slide 8
ABPMP 8 ABPMP Key Process Performance Definitions Time
measurement of process duration Cycle time time it takes from start
of process to completion Cost measurement of monetary value
Resource cost monetary value of resources (human or non-human)
required to complete process Opportunity cost value lost from
process by not getting the resultant output of the process Capacity
amount or volume of a feasible output Usually includes associated
revenue Can also include throughput
Slide 9
ABPMP 9 ABPMP Key Process Performance Definitions Quality
usually expressed as percentage of actual to optimal/maximum in
process terms Satisfaction measurement of customer satisfaction
Variation measurement of the amount, extent, rate or degree of
change; usually expressed as the difference between the actual
& target/expected result Value Added required to generate the
output required by the customer or when the customer is willing to
pay for the process that generates the output; or to maintain
quality & consistency, continuity or transport
Slide 10
ABPMP 10 ABPMP What to Measure First understand the desired
result Quality information comes from inputs/outputs & entire
process Cost information comes from resources needed to perform the
process & outputs Capacity information comes from outputs Time
information comes from entire process (supplier to customer) Can be
broken down between supplier & input & output &
customer
Slide 11
Audience Survey Sample Question #1 Process modeling: What is
the purpose of as is process modeling? A) To support audit
requirements B) To define the current activities and rules C) To
compare against a "to be" model D) To identify poor
performance
Slide 12
Audience Survey Correct Response #1 Process modeling: What is
the purpose of as is process modeling? B) To define the current
activities and rules
Slide 13
Audience Survey Sample Question #2 Process modeling: What does
a process model depict? A) Sequence of process activities using
standard and custom symbols B) Job procedures of people involved in
an activity for process costing C) Legacy application interfaces
that capture activities D) Workflow standards to track the volume
of handoffs
Slide 14
Audience Survey Correct Response #2 Process modeling: What does
a process model depict? The sequence of process activities using
standard and custom symbols
Slide 15
Audience Survey Sample Question #3 Process measurement: Which
of the following is a process improvement methodology characterized
by statistical process control techniques to reduce variation?
A)Six Sigma B) Lean C)Activity Based Costing (ABC) D)Total Quality
Management (TQM)
Slide 16
Audience Survey Questions Correct Response #3 Process measures:
Which of the following is a process improvement methodology
characterized by statistical process control techniques to reduce
variation? Six Sigma
Slide 17
17 5.0 Process Performance Management 14 Questions 10% of the
Exam 5.2 Alignment of business process and enterprise performance
Understand the difference between functional and cross-functional
(enterprise level) metrics Understand the difference between the
key approaches to process improvement methods; explain the key
differences in the tools used by each. Decision support for process
owners and managers Describe the reasons for planning for
monitoring and controlling of business processes Describe the role
of business intelligence in decision support for process owners and
managers
Slide 18
ABPMP 18 ABPMP Activity-Based Costing Accounting methodology
that assigns costs to activities rather than products/services
Provides data about how costs are actually consumed in a process
Used to discover opportunities for cost/efficiency improvement
Focuses on overhead, traces rather than allocates each expense to a
particular cost object Makes indirect expenses direct Use when
overhead/cost of errors is high, inefficiency is identified or
competition is stiff
Slide 19
ABPMP 19 ABPMP Wastes Identified in Lean Value Stream
Mapping
Slide 20
ABPMP 20 ABPMP Statistical Methods Six Sigma Science of
collecting, analyzing, presenting & interpreting data Used to
understand & reduce or eliminate variability in processes for
improvement Focuses on data (inputs that drive the outputs) and
processes primarily responsible for driving inputs Use when error
rate is high or outputs are inconsistent
Slide 21
ABPMP 21 ABPMP Critical Success Factors Focus on people as much
as the process Education make sure everyone knows the entire
process & not just their part Everyone has same understanding
of the process Everyone understands why process is important tie to
operational performance metrics for the company & tie
compensation to the improvements Engage those who design and
approve process activities as well as those who perform the work
Attempt to over communicate the goals & objectives (performance
metrics) of the process
Slide 22
22 Next Steps: Review Chapters 8 and 9 of the BPM CBOK Next
Webinar Topic: The Process Organization 7.0 Enterprise Process
Management 8.0 September 15, 2010 Jon Strickler, ABPMP Denver
Chapter