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Key measures for assessing the quality of a process – part 5

10/30/2011

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5. Is the process measured?
The process needs to be measured in terms of volume drivers and performance indicators. If the process is measured it is more likely to be maximised for performance.

If you are not measuring the performance of the process then how can you expect it to perform well? The inference is that you have no idea what is actually happening. I

If you do measure performance just doing it once is not enough as you need something to compare it against.

Measuring performance on a regular basis is best. You could measure it on a weekly, monthly, quarterly, 6 monthly or annually basis. The regularity will depend on how easy it is to do and what the feedback loop is like (ie: if nothing much happens in a week then measuring monthly would suffice). You just want to do it on a regular basis so you can see the trends and compare the results.

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Key measures for assessing the quality of a process – part 4

10/20/2011

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4. Time delay between instigation & completion of processing
There should be a target cycle time for processing. The shorter the cycle the more effective the process must be. If the cycle is longer than expected it implies there is a problem.

You probably have a goal of at least attempting to process everything you receive on the day you receive it (allowing for peak periods). If the first attempt is successful you may succeed in this.

People would like things processed quickly, within 1 day is normally the target with 48 hrs acceptable. Beyond 5 working days and people will probably chase to find out what is happening, causing more queries. We know that time frames can vary depending on the process under review. You may be happy with a shorter or longer cycle time, but probably the shorter the better.

For the processing cycle you are trying to determine the average time taken. You can assess this through sampling (tracking some of the volume), workflow records (if you use workflow software), use dates recorded by your computer system (eg: for Accounts Payable the invoice date is usually entered into the system and the entry date will be recorded by the system itself. Compare the two and allow 5-7 days for the supplier to raise the invoice and post it to you), a last option is simply to ask people for their estimate.

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Key measures for assessing the quality of a process – part 3

10/13/2011

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3. How many phone calls / e-mails are received relevant to the process (as a % of customers / vendors or volume)

Something causes people to ask a question. It means work for them to ask it, and work for you to answer it. The more questions the more work.

People normally query for a reason and phone calls / e-mails require action. They are an indicator of problems with a process and require resource to respond (includes both internal & external phone calls / emails – anyone who is querying the process).              

To get the query % you can simply ask people how many emails / phone calls or even mail items they get a day, then compare this to the number of internal and external customers or vendors they have (customer or vendor is very broad for this – it is people who feed data into the process or take data out of it). If you can use phone and email logs if available and assume that everything is work related. Active means they are current (ie: you may have 1000 vendors for Accounts Payable but only 400 have traded in the last 12 months).

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Key measures for assessing the quality of a process – part 2

10/6/2011

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2. How many transactions are processed at their first attempt
The lower the 1st attempt failure rate the more effective the process must be. Failure to process at the first attempt means reprocessing and double handling which increases the cost of processing that transaction. It may also have flow on effects to other processes.

To determine the 1st attempt failure rate ask the people involved for an estimate and / or ask them to keep a record for a day or two.

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