Blog Archives

What influences a process? – part 2

11/24/2011

2. What is the % of corrections as a % of process driver?
Corrections mean rework. The higher the % the higher the cost of the process.

3. What is the average number of line items for each process driver?
If you need to cross match as part of the process (eg: invoice to purchase order to goods receipt; time sheet to personnel to pay rates; sales order to delivery note to invoice) then processing a 1-1-1 match is easier than a 30-17-22 match. If you are doing this sort of matching you will appreciate that there are never the same number of lines on the documents to be cross matched. A low number of lines to match will also make automation easier.

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What influences a process? – part 1

11/13/2011

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Unfortunately numerous factors influence the cost and quality performance of a process. The next 12 blogs look at some of these factors and their potential impact on a process:

What follows is not a comprehensive list. Some factors may not be applicable and there could be others not listed impacting the process. Hopefully the list gets you thinking about the types of things that may be impacting the process you want to review.

When you are reviewing your process you should step back and think about all of the things that could be impacting its performance. Use the list to start you off then add any additional factors that are appropriate for your process.

1. What is the per annum volume of the main process driver?
The economies of scale effect means the more volume you have the cheaper per item you should be able to process it. This does depend on your cost structure and how good your process is.

An organisation with high volume will probably show more interest in the process and be able to afford to invest more $$ and time in the process to improve it. If the volume is low it may be hard to get people’s attention on improving the process because it is not viewed as important.

High volume can also mean big problems and backlogs can develop quickly.

If you have low volume process it could be a part-time process where people have to remember what it is they are supposed to do so skill and knowledge retention could be an issue. It will also be hard to justify improvements that larger scale organisations can implement.

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Key measures for assessing the quality of a process – part 6

11/3/2011

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6. Is the process understood?
Are the job roles and processes clearly defined and documented. If not how can people be expected to follow them?

People will do what they think is best or easiest if there is no direction. They may do the right thing but often will not. If you do have documentation then it needs to be regularly reviewed and updated because things change. Annually is enough, 6 monthly if you are really keen and have the time. You need to review the documentation for process or system changes, new short cuts people have learned that others should know, new policies / regulations, etc.

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What influences a process? – part 2

What influences a process? – part 1

Key measures for assessing the quality of a process – part 6

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