Monitoring Processes Jrgen Dorn Motivation Monitoring Processes quality
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Monitoring Processes Jürgen Dorn
Motivation Monitoring Processes • quality today most important criteria on market • many organizations demand quality management from their suppliers • quality management (e. g. ISO 9000) demands continuous improvement of business processes • advantage for customer • advantage for provider • service level agreements (e. g. stock level for maintenance parts) • provider checks satisfaction otherwise penalty • customer will check too
Continuous Improvement • what does improvement mean? • improving quality of output from customer view point • quality by RATER dimensions • Reliability, • Assurance, • Tangibles, • Empathy, • Responsibility • better price • improving efficiency of used resources • no rework • no scrap producing • avoiding unnecessary coordination • fast completion • cost reduction Monitoring Processes
Business Process Analysis Monitoring Processes
Definition Monitoring Processes • business process monitoring enables an organization to measure and analyze process performance to identify critical process problems pro-actively, using data to make decisions that will improve the speed, quality and efficiency of business processes
KPI Monitoring Processes • Key Performance Indicator operationalization of critical success factors for whole enterprise (costs, revenue, customer satisfaction, . . . ) derive • Key Process Indicators for processes
Approaches to Monitoring • quantitative analysis of process • • simulating a process and measuring in simulation measuring at runtime measuring resource allocation cost analysis • qualitative analysis of process • quantitative analysis of output (service) • number of customers, services, income • qualitative analysis of output (service) • RATER questionnaire for quality Monitoring Processes
Measuring Time • in real time or in simulation • cycle time (end event – start event time) • average over many process instances • extreme durations • variance (goal reducing variance) • aggregation of duration of activities • bottlenecks • resource load in % (90% critical, 10% inefficient) • waiting times Monitoring Processes
Monitoring Processes Simple WFM Problem Management
Problem Management with Decision Monitoring Processes
Monitoring Processes Problem Management with Quality Evaluation
Activity-Based Costing (ABC) • Monitoring Processes
Measuring Quality with RATER Monitoring Processes • Reliability the ability to provide the service you have promised consistently, accurately, and in time • Assurance the knowledge, skills, and credibility of staff and their ability to use this expertise to inspire trust and confidence • Tangibles the physical evidence of the provided service this could be offices, equipment, employees, and the communication and marketing materials in use • Empathy the relationship between employees and customers • Responsiveness the ability to provide a quick, high quality service to customers
Process Benchmarking Monitoring Processes • comparing a business process with the process of the best competitor (e. g which parcel service has better delivery) • • which tasks are performed which technologies are applied which data and knowledge is applied which human resources • objectives (KPIs) of the processes should match • also benchmark with process from different sector possible • problems • not whole process may be disclosed • process may be whitewashed
Service Level Agreements • a performance-based technique where a written agreement (contract) is established between customer and service provider defining • key service objectives, • metrics, • acceptable quality levels, and • compensation Monitoring Processes
Example • problem management • levels • gold, silver and bronze customer • gold: • answer in 6 hours • 6 solutions / month • answer by top expert • silver: • answer in 24 hours • 4 solutions / month • if no answer found by team delivery to expert • bronze: • automatic answers • 3 solutions Monitoring Processes
Service Quality Attributes / Metrics Monitoring Processes • reliability (correct operation) • availability (time when service is available) • usability (user experience) • security (confidentiality, authenticity, integrity) • performance (response time, throughput, timeliness) • auditability (storing records for financial or legal audits) • in principle, all attributes known from service quality, but some are difficult to be measured (e. g. empathy)
Monitoring Processes Business-driven IT Management (BDIM) • IT Service Management • measurement and optimization of IT resources in organization • IT resources are used for different business processes • solution: service level agreements between business and IT management • better solution in IT management would be to also consider business KPIs 18
Monitoring Processes Business-driven IT Management (BDIM) • IT Service Management is an independent unit in many organizations or outsourced • Business Processes are supported by IT • KPI/SLA on Business Process layer may be fast completion of customer order • IT Services are governed by SLAs negotiated between units (e. g. availability of CPU or storage capacity) • IT Management typically does not know the KPI of business • optimization independent of business processes (e. g. reduce active (virtual) server or used cloud resources) • BDIM tries to negotiate between business and IT
Conclusions Monitoring Processes • measuring and monitoring is necessary in processes • continuous improvement • service level agreements • setting goals what shall be achieved in defined period • improvements are achievable by • • • new technology less media breaks in process (no mapping of data) parallelism automation of tasks application of alternative resources exception handling
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