Upgrade to remove ads
Managing Business Process Flows Quiz 1
Terms in this set (56)
4 product attributions that determine value
1. Product Cost
2. Delivery-response time
Drivers that managers can control to increase the value
1. Processing costs
2. Flow time
3. Resource flexibility
4. Process quality
Dictionary vs their definition of process
Dictionary states a systematic series of actions directed to some end.
Theirs states any transformation that converts inputs into outputs. With this in mind the above can be split into many processes.
ex: tires are a process, parts are a process, and the assembly is a process
5 characteristics of a process determine the value
1. Inputs and outputs
2. Flow Units
3. Network of activities and buffers
5. Information structure
refers to any tangible items that flow into the process from the environment; they include raw materials, energy and customers in need of service.
any tangible or intangible items that flow from the process back into the environment, such as finished products, pollution, processed information, or satisfied customers.
the basic unit that moves through a process
Can be anything such as customer orders, finished products etc
Network of activities and Buffers
Activity is the transformation simply the building of a process.
Buffer stores flow units that have finished one activity and await the next activity.
Defined here as the total number of flow units present within process boundries.
The sequential relationships that determine which activity must be finished before another can begin.
Resources are tangible assets usually divided into what two categories?
Capital- fixed assets such as land, buildings, equipment and information systems.
Labor- people and staff that go into the processes.
Shows what information is needed and is available to whom in order to perform activities or make managerial decisions.
Is a network of activities separated by buffers and performed by resources that transform inputs and outputs.
Specifies the structure of a business process in terms of inputs, outputs, the network of activities and buffers, and the resources used.
Process Flow Management
Is a set of managerial policies that specify how a process should be operated over time and which resources should be all allocated to which activities.
Value Stream Mapping/Value Chain Mapping
is a tool used to map the network of activities and buffers in a process identifying the activities that add value and those like waiting that are wasteful.
External Measures vs Internal Measures
External measures indicate how customers view the organizations products and services.
Internal measures identify areas where the process is performing well and where improvement is necessary.
Three types of financial measures reported to shareholders
1. Absolute performance (revenues, costs, net income, profit)
2. Performance relative to asset utilization (accounting ratios, ROI ROA, inventory turnovers_
3. "Survival" strength (cash flow)
Can be measured by the time or cost needed to switch production from one type of product or service to another by the number of different products and services that can be produced and delivered.
Is the total cost that a customer incurs in order to own and experience the product.
Product Delivery-Response TIme
The total time that a customer must wait for, before receiving a product for which he or she has expressed need to the provider.
The range of choices offered to the customer to meet his or her needs.
The degree of excellence that determines how well the product performs.
From a customers perspective quality is dependent on
Conformance to expectations
The maximum price that a specific customer is willing to pay for a product.
the total cost incurred in producing and delivering outputs
Process Flow Time
the total time needed to transform a flow unit from input into output
the ability of the process to produce and deliver the desired product variety
managers identify measurable dimensions along which the performance of the process will be tracked
is identifying targets for the various metrics and specifying managerial policies that support the achievement of these targets.
Is the tactical aspect of process management that is focused on continually ensuring that in the short run, the actual process performance conforms to the planned performance.
managers identify metrics that need to be improved in the long run and work on changes in process design or planning that are required to achieve this improvement
the types of resources used to perform the activities and their physical layout in the processing network
Uses flexible resources to produce low volumes of highly customized, variety products. Job shop is an extreme.
Ex: Artisan baker, lawyers
Other extreme uses specialized resources that perform limited tasks but do so with high precision and speed. This is typically high fixed costs low MC
Ex: Auto Assembly line
The three pivotal aspects of a firms operations strategic fit
1. Business Strategy
2 Operation Strategy
3. Process architecture and operating policies
Competitive Product Space
a representation of the firm's product portfolio as measured along the four dimensions or product attributes -- product cost, response time, variety, and quality
Possessing process competencies that support the given strategic positions.
Ex: Reducing defects in products, developing products faster.
Defines businesses in which the corporation will participate and specifies how key corporate resources will be acquired and allocated to each business.
Defines the scope of each division or business unit in terms of the attributes of the products that it will offer and the market segments that it will serve.
1. Competitive analysis of the industry in which the business unit will compete.
2. Critical analysis of the unit's competitive skills and resources.
Define the purpose for marketing, operations, and finance the three main functions in most organization.
Operation Strategy .
configures and develops business processes that best enable a firm to produce and deliver the products specified by the business strategy
Three main components of a firms strategy
1. Its strategic position
2. Its process architecture
3. Its managerial procedures.
Market Driven Strategy
A firm starts with key competitive priorities and then develops processes to support them.
Ex: commodities usually are
A firm starts with a given set of process competencies and then identifies a market position that is best supported by those processes.
Ex: tend to be tech companies
Committing to a limited, congruent set of objectives in terms of demand and supply.
one whose products fall within a small region of the competitive product space
Plant within a plant (PWP)
In which the entire facility is divided into several "miniplants", each devoted to its own specific mission with a process that focuses strictly on accomplishing that mission
EX: Hospital separating emergency care vs non emergency care
The smallest curve that contains all industry positions. This looks at responsiveness and cost efficiency. Over time this line will have to shift out due to innovations and forcing companies to improve to maintain market share.
Is a decreasing of one aspect to increase another.
Created by Adam Smith was the division of labor. Defined as a process and organizational structure where people are specialized by function, meaning each individual is dedicated to a specific task.
The alternative is product specialization where people focused on a specific product line
Who created Flexible Mass Production
GM in response to Ford's only one car option.
Who really created industrial engenering
Frederick W. Taylor his philosophy centered off three main ideas
1. Scientific laws govern how much a worker can produce per day.
2. It is managements function to discover and apply these laws to productive operations systems.
3. It is the worker's function to carry out management decisions without question.
Statistical Quality Control
a management approach that relies on sampling of flow units and statistical theory to ensure the quality of the process
Toyota created what vital business processes
Total Quality Management (TQM)
Just-In-Time manufacturing (JIT)
Time based competition
business process engineering
The hardware and software used throughout businesses processes to support data gathering, planning and operations.
Sets found in the same folder
Managing Business Process Flows Quiz 2
Final exam prep Quizes+modules
Quiz 2 Q&Q
Sets with similar terms
CIS 309 - chapter 1
MGT 3900 Exam 1 (Chapters 1-4)
Operations Mgmt Ch. 1-5 Terms
IS Chapter 2
Other sets by this creator
Anatomy and physioloigy
Diseases and conditions
CFA Calculator Tricks
Reinforced Leaning Broad
Other Quizlet sets
Marketing 300 1-4
Chapter 43 study guide
Sadiler Connect Blue Vocabulary Unit 14…
Digital Forensics - Week 1: Introduction to Digita…