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CIS591S: Business Process and Workflow Analysis Dr. Raghu Santanam Department of Information Systems Business Process Analysis. Agenda. Benchmarking Process and Examples Tools and techniques Code of conduct Module Summary. Benchmarking.
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CIS591S: Business Process and Workflow Analysis Dr. Raghu Santanam Department of Information Systems Business Process Analysis
Agenda • Benchmarking Process and Examples • Tools and techniques • Code of conduct • Module Summary
Benchmarking • The process of identifying, understanding, and adapting outstanding practices and processes from organizations anywhere in the world to help your organization improve its performance.—American Productivity & Quality Center
When…? • Need to know • Goals and priorities • Key business processes • Map organization goals to process and functional goals • Process models
Benchmarking Process • Four phases to the project • Planning • Identification, documentation and scope • Data Collection • Measures and approach • Benchmark partners, competitors • Analysis • Identify gaps and root causes • Characteristics of best practices • Adaptation • Assess candidate practices • Develop implementation strategy • Monitor
Analysis Tools and Techniques • Control Charts • Cause-effect diagrams (Ishikawa) • Pareto diagrams • Radar/spider chart • Scatter plots
Effective benchmarking • Numbers tell only part of the story • Problems may not be in process! • Benchmarking should focus on “How” • Do not stop with the numbers • Facility tours • Process walkthrough • Interviews and surveys
Intel way… • Benchmarking surveys • Followed by “three or four-hour teleconferences or site visits and ask how they do it.” Steve Viera, Corporate Purchasing (Source: “Is your benchmarking doing the right work?” Harvard Management Update, 2003)
Code of conduct • Legality • Disclosure of trade secrets • Price-fixing or collusion • Dissemination • Partnership • Exchange is two-way • Use • Limit scope of use of information
Creativity • Compare across industries • Each step in a process • Find analogous steps in other industries • Yield management - Walmart, airlines • Pricing – airlines, telecom, software • Tailored service – luxury hotels and retailers • Logistics – UPS, Fedex • Failure recovery – airlines, emergency responders
Further reading • Robert Camp, Business Process Benchmarking: Finding and Implementing Best Practices, ASQC Quality Press, Milwaukee. • APQC web site resources • http://www.apqc.org/portal/apqc/site/generic2?path=/site/metrics/free_resources.jhtml