chapter 11 Flashcards
(89 cards)
1
Q
What is the simple definition of a “process”
A
ongoing series of operations, work activities, or tasks ordered in a definite sequence so that each step adds incremental value towards achieving an end result.
2
Q
what is the simple definition of procedure?
A
set of instructions for following a series of steps in a regular, definite order to accomplish a process
3
Q
What is a project?
A
planned undertaking wiht a specific phased approach, plan, or design for achieving a unique specified end
4
Q
what is a program?
A
a plan or system of action directed toward a specified goal.
5
Q
the process has a fixed number of steps with a beginning and end called what?
A
process bondaries
6
Q
what do you call the fastest time for completing a process?
A
process turnaround capability.
7
Q
what is the process turnaround time AKA cycle time?
A
the average or median time for a unit of work to pass through a process.
8
Q
True or False:
A good process should be efficient, effective, adaptable and scalable
A
True.
9
Q
What is a scalable process?
A
process that can be adjusted to change in volume wihtout losing efficiency or effectiveness
10
Q
What is a management process?
A
type of process limited to the practices of employees in managerial roles
11
Q
What is a support process>
A
type of process that provides a function serving only internal customers
12
Q
What is an operational process?
A
ongoing method or system for achieving a bsuiness result.
-ie: insurance claim processing
13
Q
Operational processess can be further classified as either industrial process or business processes. Define these
A
- industrial: ongoing method or system using mechanical or chemical processing steps to manufacture a physical item from component materials.
- business: ongoing method or system for responding to customer’s needs without involving signifciant mechanical or chemical processing.
14
Q
True or false
the processes in financial services are industrial processes?
A
False
- manufacturing = industrial processes
- Financial = business process
15
Q
True or false
industrial processes are performed by machines, whereas business processes in financial services are preformed by people
A
True
16
Q
Industrial processes are frequently suspectible to incremental improvements, how does this differ from financial services?
A
they often need to be redesigned entirely.
17
Q
processes have smaller components called subprocess, activities and tasks. What is a subprocess?
A
smaller grouping of activities than a process, and makes up a significant portion or stage of a process.
18
Q
processes have smaller components called subprocess, activities and tasks. What is an activity?
A
part of a set of actions that accomplish a job, problem, or assignment, all of which must be accomplished within a specified time.
19
Q
processes have smaller components called subprocess, activities and tasks. What is a task?
A
smallest unit that undergoes analysis in a process, a subprocess or in an acitvity.
20
Q
Analysis of a business process typically requires mapping the business process down to the activity level. What is process mapping?
A
refers to creating a graphical representation of business processes, typically using a recohnized set of graphical symbols.
21
Q
What is a flow chart?
A
a process mapping diagram that shows step-by-step progression through a series of activities or a system, using connecting lines and a set of conventional symbols.
22
Q
what is the broadest level of flow chart?
A
23
Q
What is the second, more details, level of a flow chart?
A
functional activity flow chart
- adds’ details such as an activity for each employe ie: title
24
Q
What is a task-procedure flow chart?
A
present the most detail of any flow chart, displaying the level of detail needed to train an employee to perform a procedure for the first time.
25
What is an as-is flow chart?
describes how a work process is actually performed regardless of how it should be preformed.
26
What is an to-be flow chart?
depicts the planned future state for a new process design or a process redesign.
27
Define the standard flow chart symbol: Event Box
| box with rounded corners
event which occurs automatically.
| - will trigger subsequent action
28
Define the standard flow chart symbol: activity box
| rectagular box
activity in process- most frequently used symbol.
| - can represent an activity which is controlled wihtin the process
29
Define the standard flow chart symbol:
Decision node
(diamond symbol)
inside the sumbol on a flow chart is a decision or question which supports a yes or no response.
- after decision node the process flow branches to different parts of the process
30
Define the standard flow chart symbol: Delay box
| shape of lettter D
delay in a process
31
Define the standard flow chart symbol: Circle symbol
contains cross-reference or an explanation.
| - poitn where the flow chart connects with another process
32
Define the standard flow chart symbol: oval box
starting or stopping point in a process
33
Define the standard flow chart symbol: arrow
Line with an arrow represents a process flow.
| - connects the activity boxes and other symbols
34
what is a process charter
a formal document that establishes a process team and gives the team accountability and authority- termed process "ownership".
35
Found in usual structure for accountability and authority in a process what is an executive champion process owner?
AKA process sponsor
a company executive who authorizes a process design, creates the process team, provides supportive resources to the process and communicates process information up the organizational chain of command on behalf of the process team.
36
Found in usual structure for accountability and authority in a process
What is a working process owner?
AKA: process owner manager, process owner, process leader.
its the person accoutable for fulfilling the function of planning, organizing, directing and controlling in support of succesful process completion.
- responsible for the sucessful performance of the process, but dosent preform the tasks.
37
A process team consists of all employees assembled for accomplishing a process.
What is a work team member
any employee assigned to execute a portion of process activities.
38
What is a functional expert team member?
a process team member who is an expert in a functional aspect of the relevant process.
39
What is process analysis?
a systematic evaluation of all aspects of a process to make the process faster, more efficient, less expensive, or more focused on the customer.
40
What is time-and-motion study?
an exercise in which a techincal specialist views a team memeber who is performing a process and sues a stopwatch to record the time the person requires for specific action or movement employed in the job activity.
41
What are the 5 main goals of the process design guidelines for improving process efficiency and effectiveness?
1) aim to increase the speed of a process
2) study the work requirements of process tasks to understand how much time a work team memeber should need for performing each task
3) eliminate processes that are known to produce high rate of errors
4) automate processes to the extent possible
5) consolidate similar activities into one process in part by eliminating handoffs.
6) design process with the awareness that humains are vulnerable to safety risk- not all processess will conform to the plan.
7) involve work team members in evaluating and testing a new process design and adapt to preferences
8) test it before you implement it
42
what is a handoff?
the transfor of work from one team member to another, typically across organizational boundaries.
43
In business process management, the design activity for addressing human fallibility is termed what?
mistake-proofing
44
Define process management
a formal approach to implementing process quality control, process quality improvement and process review and assessment to ensure the smooth flows of a company's resources and tasks through key company process.
45
What are the main activities of process management?
1. establish managerial control of process
2. introduce process improvement
3. periodically review process quality
46
What is a control point?
measurable outcome of a process that is susceptible to repeated measurement while the process is ongoing.
47
How does a company establish control of processes?
by communicating, measuring, and monitoring control points.
| - control is maintained by ongoing referrence to the control points.
48
Where do we currently get the technology support for processses in the financial services?
from business process management systems, workflow management systems, documented management systems, straight-through processing and queuing managment systems.
49
Financial service companies have acess to suites of business process management systems. What does this allow them to do?
support business process manegeent and business process automation.
- they provide modeling tools for business analysts, developer tools for system integration, dashboards to help process owners with measuring, monitoring and controlling and user interactions to facilitate work for process team members.
50
Define the important elevement of a business process management system called rules engine
this is a repository of key business process rules that can be consistently applied in specified circumstances to produce the desired results.
- provides the founation for process clarification, communication and automation.
51
What is "workflow"
combination of process steps, required information, quality control standards, decision trees, automated follow-ups, and other tools needed to accomplish a business process.
52
What is the workflow management systemn?
a software package designed to improve business process control by coordinating the flow of physical or electronic documentation between process steps.
- auto prioritize, schedule, distribute, trigger parallel processes, and complete some process steps.
- they store appropriate information in structured formats.
53
The rules engine in a workflow management system is known as a workflow engine. Define this
it is the system component containing all relevant procedures and standards.
54
What is a document management system?
an IT system desgined to manage electronic documents by centralizing and organizing document storage, controlling access to documents, automating routinesfor archiving, and ensuring regulatory compliance with records rentention requirements and privacy requirements.
55
What is a straight through processing (STP)
refers to a fully automated process in which all steps in a specified transaction type can be conducted without human intervention, subject to legal and regulatory restrictions.
56
A physical queue system is an arrangement used for routine documents to transactional employees or telephone calls to representatives in a conact center. What are the automated queuing management systems?
typical softwares used to model and analyze work processes affected by waiting lines, and then to establish appropriate rules for automatically routing service objectives to service destination.
- measure floa nd backlog of transactions., turnaround times, staffing.
57
What is a universal queuing management system?
a single system used for automatically routing all incoming customer requests and information regardless of the communication format to appropriate service destinations.
58
Define business process reengineering (BPR)
formal program for undertaking a project to fundamentally redesign an organization's business processess, structures, and software to achieve substantial measurable improvements in the performance measures of cost, quality, service levels and speed.
59
What do you call the holistic type of quality management program that focuses on making continuous, incremental improvement in operational processes and technology, integrated with strategic initiatives and carried throughout a company?
Business process management, continuous process improvement, business process improvement or business process quality management.
60
What are the main principles of business process management?
1. apply a quality management life cycle of quality planning, control and improvement to each operational process
2. consciously orient management and business process towards customer needs.
3. assign clear accountability for each process element
4. focus on closely managing a few key processes that have the greatest influence on success in meeting customers' needs.
5. assign a cross-functional process team to manage and conduct each key process
61
business process management requires a company's executive team to identify a few key processes and key performance indicators for the company as a whole. What is key process?
one of several operational processes which is critical to meeting customer's needs, acheiving or maintainign the company's competitive positions, or implementing the corporate plan.
62
What is a balanced scorecard approach ?
conceptual framework used in internnal and sometimes external- reporting to communicate how well operation results are aligned with the corporate mission and strategy.
63
What is a graphical balanced socrecard?
displays a set of key performances indicators and compares these values to performance standards.
- links measures of financial and nonfinancial activities to broad performance outcomes.
64
What is a Key performance indicator (KPI) ?
a measure of a key operational (or process) outcome reported to the company;s executiv--level managers as an indication of the company's perfromance relative to a strategic goal.
65
What are stoplight indicators?
red, amber green colour sometimes blue- symbols that indicate how favourably the company's actual performance compares with its performance standards.
66
What are the meanings fo the spot light indicators?
1. green: relevant area of performance is within an acceptable range
2. amber: relevant are of performance is below goal standards
3. red: performance needs urgent correction
4. blue: available information does not support an indicator for a particular perspective.
67
What is benchmarking in terms of operations management?
a formal program for measuring company performance results, identifying best practives
- ie serves as a best practice performance standard.
68
What is a benchmark?
a performance standard that a company aspires to acheive perhaps because it represents a high standard that another company was able to achieve.
69
how do comapnys identify appropriate benchmarks?
looking at industry benchmarks (same industry) or universal benchmarkes (same process)
70
What is six sigma>
a formal process improvement program for operations.
| - eliminates defects (waste)
71
Classic Six sigma directly relies on what?
rigorous measurements, statistical analysis, and application control measures in a quest to find and destroy hidden defects or waste.
72
What are the 3 roles involved in a 6 sigma team?
1. master black belt (MB)- coaching black belts through the project- training.,
2. Black Best (BB): expert and team leader- responsible for improvement results- roles are dedicated to six sigma project
3. Green Belt (GB) employeed employee trained in six sigma - spends time completing projects but maintains regular work role and responsibility outside of six sigma projects.
73
Describe the abbreviation SIPOC
suppliers/ inputs/ process/ outputs/customers
74
What is a SIPOC diagram?
the type of process diagram used to record the findings of the define and measure stages of DMAIC.
75
Describe the abbreviations of PISOC and COSIP
Rearrangements of SIPOC
PISOC: process/inputs/suppliers/outputs/customers
COSIP: customers/outputs/suppliers/inputs/process
76
What is Kaizen?
a gradual and continuous approach to business process improvement using a series of modest improvemnets and feedback from process team members.
- japanese way of life
77
The application of kaizen in business is founded in five principles and 3 key values. what are they?
5 principles: team work, quality circles, personal discipline, improved morale, and suggestions for improvement.
3 Key values: elimination of waste, good housekeeping and standardization.
78
What is lean management?
a business process management approach that emphasizes creating a vlue stream comprised of lean process, as well as identifying non valye activities and eliminating them.
79
Lean management refers to a set of 5 main principles and 7 wastes. Name the 5 lean principles
1. define valye from the perspective of the customer
2. define the value stream
3. create a conitnuous flow of value adding steps
4. allow processes to respond to the pull of the customer
5. work towards perfection.
80
Lean management refers to a set of 5 main principles and 7 wastes. Name the 7 waste
1. overproduction
2. defects
3. unnecesary inventory
4. innapropriate processing
5. excessive transportation
6. waiting
7. excessive motion.
81
What is a value stream in Lean management?
a conitnuous-flow process of value creation.
82
How does a value stream differ from a value chain?
A value stream differs in several respects from Michael porter's value chain because it focusews on organizational functions, value stream focuses on potentially cross-functional processes.
83
What does non value activities represent?
waste
84
What do you call the process map of a value stream?
value stream map
85
What is the Just-in-time (JIT) approaches?
use precise forecasting rto eliminate waste arising from waiting for deliveries and stroing inventories.
86
Where could lean principles be applied in insurance companies?
directly to policy issue and customer address changes.
87
What is lean six sigma?
refers to a hybrid of type of business process management program which mixes elements of lean management and six sigma.
- lean focus: waste reducing
- six sigma focus: managing variations in result.s.
88
What is agile management?
an approach to business effectiveness focused on finding and seizing opportunities to improve operations and processes.
89
In what department would agile management excel for insurance companies?
project management.
