Process performance
| Process performance |
|---|
| See also |
Process performance or process capability is the degree to which the process meets the quality requirements. If we take into account the tolerance of the tested property, we can determine the potential and real capacity of the process to meet the quality requirements. Thanks to this, it is possible to determine how many products are within the defined specifications. To assess the process's capacity, you should directly refer to its spread (usually estimated based on the range or standard deviation) to the width of the assumed tolerance field[1].
Regarding to the process, there are three different perspective distinguished in literature[2]:
- process targets – referring to external and internal users and coming from their requirements
- process design – setting up the appropriate structure and creating the logical way of running the process to achieve its goals
- process management – including management of targets, performance, resources and process interface through supporting each process stage
Properly management of process performance enforces controlling of implementation process and execution during its lifecycle[3].
The model of modern control (BPM) includes six complex aspects[4]:
- process modeling
- process implementation
- performance planning
- process monitoring
- performance measurement
- performance enhancement
Process Performance Indicators
Measuring progress in process lifecycle is the key element in process-oriented enterprises and it is possible by deploying of indicators - Process Performance Indicators (PPIs) – that have specified target values to achieve in a certain period. Set PPIs need to be understandable for all stakeholders and verifiable by automated analysis (there is a recommendation to set them by applying the SMART model). The main issue in measuring the progress nowadays is that the indicators are created during the implementation of process (they should be prepared before starting the lifecycle) and they are too formally to understand by non-technical stakeholders or management. To avoid the misunderstanding and further issues, there should be prepared the PPI specification that will contain the process name, set goals, definition and target of indicator, scope, source and responsible person for the process[5].
Integrating Process Performance Indicators into BPM (Business Performance Management) lifecycle created a need to establish PPI phases[6].
There are four stages[7]:
- evaluation – identifying PPI correlations with business and predicting the future behavior
- design – defining PPIs and connect them with BP, preparing time analysis
- instrumentation – implementing of measurement points
- computation – calculating and monitoring PPIs
Analysis of different organization showed using of indicators which can be group as below (model PPINOT)[8]:
- base measures (time measure, count measure, condition measure and data measure) – they directly comes from the process and do not require further calculations
- derived measure – they are calculated by using aggregation function (e.g. average, minimum)
- aggregated measure – they represent the function of other measurements
References
- Balaban N., Belić K., Gudelj M., (2011), Business Process Performance Management: Theoretical and Methodological Approach and Implementation, Management Information Systems, (2011), 4, 3-4.
- Kueng, P. (2000). Process performance measurement system: a tool to support process-based organizations. Total quality management, 11(1), 67-85.
- Río Ortega A., Resinas M., Durán A., Ruiz–Cortés A., (2010), Defining Process Performance Indicators by Using Templates and Patterns, Universidad de Sevilla, 1-3.
- Río Ortega A., (2012), On The Definition and Analysis of Process Performance Indicators, Universidad de Sevilla, 62, 25-26.
Footnotes
Author: Justyna Kurnik
