Development of CRI business process.
Separately, we highlight the analysis of the effectiveness of the implementation of business processes using the KRI system. To develop an individual business process, it is most convenient to use the process model in IDEF0 notation. This is due to the fact that the IDEF0 diagram shows the main process resources, inputs and outputs (Figure 9.8). This allows us to assess the resource needs, the relationship with other processes, and the result of this process is clear.
Fig. 9.8. IDEF0 Process Model & "Generic Product Production"
The IDEF0 schema of the business process allows you to determine what is the result of its execution. In this example, the result of the process is a typical product. Knowing the result, we can formulate its quantitative and qualitative CRI, namely:
• the number of manufactured products;
• the number of manufactured products on time;
• the number of manufactured products that meet the requirements of the technical documentation (without marriage) in the total number of manufactured products.
Knowing what mechanisms are used to implement this process, we can formulate CRI for assessing the effectiveness of personnel and the efficiency of using equipment and equipment, for example:
• the number of manufactured products per employee-participant in the process (we emphasize that this indicator will be informative in a simple production cycle, where one worker makes the product entirely);
• The cost of using equipment (machines) and equipment;
• The cost of manufacturing a typical product;
• implementation of the process in accordance with the regulations and technical documentation;
• number of disruptions in terms of product manufacturing due to equipment failure;
• number of disruptions in production time but staff fault;
• number of failures due to errors in the technical documentation.
Information about the inputs of the process allows you to formulate such performance indicators as:
• costs for materials for manufacturing a typical product;
• the amount of return of substandard material;
• number of disruptions in production due to faulty delivery of substandard material or incomplete.
However, the performance indicators and the efficiency of the business process, based on the process diagram, can not be determined. But they also need to be considered when building a KPI process system.
The performance metric is calculated as the ratio of the result to time. For example, the average number of manufactured products per day.
Performance metric is the cost of running a business process. For example, the number of manufactured products/amount of costs for the implementation of this process (including costs per person, equipment depreciation, materials, etc.).
Thus, the KPI system of business processes can contain the following performance indicators:
KPI resource costs (how many resources were spent):
• on the staff;
• materials (commodity and material values - commodities and materials);
KPI result (how many and what result was produced):
• the number of products/services/documents produced for a certain period;
• the number of products produced with a defect;
• number of complaints;
• Number of refunds;
• number of refinement cycles;
KPI process continuity (number of failures, downtime due to poor process organization);
KPI functioning - performance indicators of business processes (allows you to evaluate the compliance of the process with the required algorithm for its execution);
KPI performance - derived indicators that characterize the relationship between the result obtained and the time it takes to get it (the performance of each artist);
KPI efficiency - derived indicators that characterize the ratio of the result to the resource costs (cost of the process).
Key indicators of the effectiveness of business processes, especially in the process management of the company, allow you to assess how much the result of the implementation of the business process is consistent with the goals for the sake of achieving which it is implemented. In addition, KPI in this case identifies the bottlenecks of the process, which are prerequisites for detailed analysis and subsequent optimization. Thus, the system of key performance indicators for business processes is an indicator of the need for measures to improve them.
Generate reporting on key performance indicators.
Any types of documents can be used to collect and summarize information on KPI. Usually, those used in this particular organization are used. In many companies, reports are prepared using various information systems, including BPMS. Thus, at the request of the user, it is automatically created in the automatic mode, but to a predefined template.
The frequency of the reports depends on the frequency of calculating the KPI values. For example, the balance of cash is calculated on a daily basis, and the calculation of violators of the labor schedule, as a rule, is calculated once a year (at the end of the year before the payment of bonuses). KPI can be roughly divided into three categories depending on the periodicity of their calculation: long-term (1-3 years), medium-term (3-6 months) and operational (1 day-1 month).
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