BPM Lecture 3 (Implement, Execute, Control)

MTAT.03.
231
Business Process Management (BPM)
(for Masters of ETM)
Lecture 3: Process Implementation,

Monitoring and Controlling
Marlon Dumas
marlon.dumas ät ut . ee
Agenda for Today
Time Contents
10.00-11.30 Review of homework
11.45-13.15 Process Implementation
13.15-14.15 Lunch break
14.15-15.45 Process Monitoring and Mining
16.00-17.30 Process Measurement and Controlling
2
Another View on Process
Improvement
Business Process Lifecycle Management
• Process identification
• Process modelling (as-is)
• Process analysis
• Process improvement (to-be)
• Process implementation
• Process execution
• Process monitoring/controlling
4
4
Process Improvement
- Object-oriented Approaches (1/2) -
• Elimination of object types
– secondary objects (copies, reports)
– e.g. prebilling
• Elimination of objects
– statistical checks in goods receipt or invoice verification
• Substitution of objects
– credit vouchers instead of invoices (Hammer: Ford)
(Evaluated Receipt Settlement)
• Digitalisation of objects
– document management, EDM-systems
– Microsoft‘s invoicing process
© Michael Rosemann 5
Process Improvement
- Object-oriented Approaches (2/2) -
• Harmonisation of objects
– Unitisation
– Logistical units (e.g. pallets)
• Separation of objects
– Differentiation of standard-cases and exceptions
– Increased time-/cost-homogenity
• Process oriented optimisation of objects
– Design for process
– Design of products meets needs of production,
assembly, logistics and recycling
Process Improvement
- Function-oriented Approaches (1/2) -
• Elimination of functions
– Lean Management-approach
– Outsourcing
• Integration of functions (unification)
– Job Enlargement (horizontal compression)
• Process Owner
• Case manager / case worker
– Job Enrichment (empowerment)
• delegation of decisions
Process Improvement
- Function-oriented Approaches (2/2) -
• Change process direction
– pull instead of push
– Kanban, Just-in-time
• Automation of functions
– Basic idea of IT-use
– Especially: Automation of control flow (workflow mgmt)
• Parallel routing of functions

– create ‚natural order‘
– delinearize processes e.g. simultaneous/concurrent
engineering
Process Improvement
- Resource-oriented Approaches -
• In general: extend the control sphere of a (human, technical)
resource to its limits
– organisational:
- case worker/process owner
- reduced interfaces
- delegation of responsibility
– IT:
- integration of different media
- reduced media changes (e.g. Enterprise System)
- standardisation (e.g. Web services)
• Optimal synchronisation of demand and offer
Process Improvement
- Another Classification -
Resource Function/ Process Object
Process
Abandon / Downsizing Lean Management e.g. copies,
eliminate reports
Outsource/ External service Business process Modular sourcing
off-shore/ provider outsourcing
self-service
Pull principle Management by Kanban reports
exception
Streamline Training Re-design of Re-design of
function document
Automate Increased use of Workflow Digitalization
IT management
Natural order Simultaneous Multi-user access
engineering
Process Improvement
- Another Classification -
Resource Function/ Process Object
Process
Horizontal Job enlargement Workflow Unitization
integration management
Standardise Standardised roles (Global) XML, ontologies
Integration
Eliminate OPT Smoothen Multi-user access
bottleneck demand
Specialisation/ Specialised roles Design alternative Design of variants
decentralisation cases
Empowerment Job enrichment Integrated quality Integration of
assurance delivery note and
invoice
Centralisation Shared service Process Elimination of
consolidation variants
Process Implementation
13
13
Harmon’s Process-centric Enterprise
Architecture
14
Harmon (2004)
• Organisational Change and Enablement

– User Participation
– User Training
– Change Planning and Management
• IT Implementation
– Custom Software Application
• In-house development
• Outsourced
– Packaged Enterprise System
– Workflow Management System (WfMS / BPMS)
15
User Participation/Involvement
1. Buy-in, not only commitment

2. Select first processes carefully
3. Involve users and sponsors
4. Highlight business impact
5. Provide short-term benefits and long-term objectives
6. BPM must be in their self-interest
7. Proof of concept
8. Communicate (internal) success stories
9. Identify and coach BPM champions
10. Communication is different to consensus
16
Management of User Participation in
Processes
17
Harmon 2004
IT Implementation – Packaged
Enterprise Systems
Typically classified into:
• ERP: Enterprise Resource Planning, including
– Manufacturing, inventory control, procurement, financials, human
resources
• SCM: Supply Chain Management, including
– Material acquisition (forecasting, planning), logistics/transportation
– Supplier relationship management
• CRM: Customer Relationship Management
– Marketing, lead management, sales
• These functions can come together, or acquired separately, e.g.
– E.g. Peoplesoft for HR (now Oracle), SAP for manufacturing and SCM,
Oracle Apps for financials, Salesforce for CRM
18
What is an ERP System?
• Multi-module application that helps a company manage

key parts of its business in an integrated fashion.
• Key features include:
– standardized environment with shared database independent of
applications and integrated applications
– enables information flow across organizational boundaries to
support common transactions and business processes
– intended to be customized for specific companies
• database configuration
• bolt-on software
19
ERP System
Legacy
Data Warehouse Systems
ERP System
On-Line Analytical Processing Bolt-On Applications
(OLAP) (Industry Specific Functions)
Customers Suppliers
Core Functions [On-Line Transaction Processing (OLTP)]
Sales
Business Shop Floor
& Logistics
Planning Control
Distribution
Operational Database
Customers, Production,
Vendor, Inventory, etc.
© Sumit Lodhia 20
Risks Associated with ERP Implementation
• Pace of implementation
– ‘Big Bang’--switch operations from legacy systems to ERP in
a single event
– ‘Phased-In’--independent ERP units installed over time,
assimilated, and integrated
• Opposition to change
– user reluctance and inertia
– need of upper management support
• Choosing the wrong ERP
– goodness of fit: no one ERP product is best for all industries
– scalability: system’s ability to grow
21
Risks Associated with ERP Implementation …
• High cost and cost overruns

• training
• testing and integration
• database conversion
• Business rules conversion (cf. failed
Queensland Health Payroll and Roster Implementation.)
• Disruptions to operations
– ERP implementations usually involve major process changes
– Need to align ERP-imposed processes with existing processes
22
Business Process Execution Engines
Big Other Commerc Commun

Vendor closed- ial Open- ity Open-
s source Source Source
Oracle SOA Suite
Intalio
●
●
IBM Websphere
YAWL
●
●
Savvion ●
Process Server
BizAgi
ActiveB
●
●
MS BizTalk ●
Metastorm BPM
Enhydr
●
●
MS Windows ●
TIBCO
PEL
●
Workflow
ActiveMatrix
●
Foundation
SAP NetWeaver BPM
●
jBPM
a Shark
BPM
23
Danske Bank: Customer Package
Process
Customer Create Card
Create Account
Advisor Create Credit
Juni 2003 August 2003 October 2003 December 2003 Marts 2007
Introduction of Customer packages.

Word template to collect info
24
© Steen Brahe, Danske Bank
Process
Create Account
Microsoft Office Word 2003.lnk

Email
Advisor Backoffice workers Create Credit
Backoffice group created

Handles the creation process
25
© Steen Brahe, 2007
Process

Not valid
Create Account

Advisor Case Transfer System Backoffice workers Create Credit
Case Transfer System

Automatic validation and transfering
26
Process
Create Card Create Account
Backoffice workers
Customer
Not valid
XML

Advisor Case Transfer System
Create Credit
Backoffice workers
Workflow enabled creation process v. 1

Automatic process control, 0% automated activities
27
Process
Service Service Service

A B C
Customer
Not valid
XML

Advisor Case Transfer System
Create Credit
Backoffice workers
Workflow v. 6
80% automated activities
28
Danske Bank – System Architecture
Executable Business Process

A2
A1 A4
A3
WSDL A1 WSDL A2 WSDL A3 WSDL A4
Service Bus / Container
App1: COBOL App2: PL1 App3: Java App4: C#
29
Workflow Technology in a Nutshell
Animation by Wil van der Aalst, Vincent Almering and Herman Wijbenga 30
Worklist
Work Item
http://www.ahrq.gov 31
The YAWL Workflow System
YAWL Engine
Persisted Data
Event Log
Interfaces
Process Designer
Other Custom Services
Org Data
Process Event Logs
Repository Resource Service
Admin Users Applications

32
© YAWL foundation
YAWL Notation
YAWL
BPMN 33
Demo: Designing a YAWL net
34
Resource Allocation in YAWL
Org DB
resource 1
4 5
resource manager resource 2
3
completed work 1 YAWL engine resource n
items allocated work
items
2
YAWL nets
35
Path of a Work Item in YAWL
36
Default YAWL Worklist Handler
37
Process Monitoring & Controlling
39
39
Process Monitoring and Controlling
Process
Process Strengths/
design
design weaknesses Process
Process
Monitoring
Monitoring &
&
Process
Process Controlling
Controlling
design
design
Imple-
mentation Process (Re-) Analysis
Process
implemen-
execution
execution tiation
Process
Process
execution
execution
© Michael zur Muehlen 40

Types of Process Monitoring
• Runtime Monitoring (Business Activity Monitoring)
– Viewing the load of the process
– Identifying problematic cases
– Identifying late cases (risk of missing deadlines), etc.
• Post-mortem Monitoring (aka Business Process Analytics)
– Performance KPIs: cycle times, resource utilization, error rates, …
– Identification of bottlenecks
• See for example:
– BizAgi BAM: http://wiki.bizagi.com/en/index.php?title=Analysis_Reports_BAM
– Analytics: http://wiki.bizagi.com/en/index.php?title=Analysis_Reports_Analytics
41
Process Monitoring: Dashboards
Process Cycle
Time
of Order
Processing
Process
Frequency
of Order
Processing
Process Cycle Time

of Order Processing
split up to different
Plants
IDS (2003)
42
Process Mining Tools
• ARIS Process Performance Manager

• Pallas Athena ReflectOne
• ProM (open-source)
44
Process Mining – The ProM Framework
supports/
controls
operational information
process system
records
configures
refers to models
process
discovery
(un)desired process event
properties models conformance logs
testing
log-based verification
45
www.workflowcourse.com
Example: Event log (audit trail)
• Case 21
• Description Event User yyyy/mm/dd hh:mm
• ----------------------------------------------------------------------------
• Start swdemo@staffw_edl 2006/02/05 15:00
• Register order Processed To swdemo@staffw_edl 2006/02/05 15:00
• Register order Released By swdemo@staffw_edl 2006/02/05 15:00
• Prepare shipment Processed To swdemo@staffw_edl 2006/02/05 15:00
• (Re)send bill Processed To swdemo@staffw_edl 2006/02/05 15:00
• (Re)send bill Released By swdemo@staffw_edl 2006/02/05 15:01
• Receive payment Processed To swdemo@staffw_edl 2006/02/05 15:01
• Prepare shipment Released By swdemo@staffw_edl 2006/02/05 15:01
• Ship goods Processed To swdemo@staffw_edl 2006/02/05 15:01
• Ship goods Released By swdemo@staffw_edl 2006/02/05 15:02
• Receive payment Released By swdemo@staffw_edl 2006/02/05 15:02
• Archive order Processed To swdemo@staffw_edl 2006/02/05 15:02
• Archive order Released By swdemo@staffw_edl 2006/02/05 15:02
• Terminated 2006/02/05 15:02
46
W.v.d.Aalst (2003)
Process discovery
Prepare Ship
shipment goods
Register (Re)send Archive

order bill order
Receive
payment
process Contact
customer
discovery
47
Conformance testing
Prepare Ship
shipment goods
Register (Re)send Archive

order bill order
Receive
payment
Requirement
for material
has arisen
Purchase
Requisition
Contact
customer
Requisition Purchase
released requisition
for scheduling released
agreement for purchase
schedule/SA release order
Purchasing
Decide To Buy Computer
Order Machine Inbound Purchase

Goods
Choose Model delivery order
[desktop] received
entered created
[bad reviews]
Save Money
Read Test Reviews

Order Screen
Choose Operating System
[enough] [laptop]
Receive Machine Receive Screen

[reviews ok]
Goods
[linux] Receipt
[laptop] [windows]
Goods
[desktop] Order Windows Download Linux receipt
posted
Work Hard
Receive Windows
Check Bank Account

Set Up And Connect Open Lid
[not enough]
Warehouse/ Material Invoice

Plug In And Power On
Stores is released received
Install Operating System
TO item Transfer
confirmed order Invoice
without item Verification
48
differences is confirmed
Payment
must
be effected
Log based auditing
Is the “four-eyes” principle

between activity create PO and
approve PO being respected?
Are there cases where an invoice is

paid for an unapproved PO?
49
ProM Demo
http://www.processmining.org/
50
Process Controlling
• Collation and analysis of runtime data

• Comparison of actual- and target data
• Active impact on current process execution as well as
future process modeling (target)
Goal:
Improvement of an enterprise‘s adaptability
to changes in the environment and in the
enterprise itself
51
Process Controlling
 Objective:
 Establish a system for controlling the process and providing
feedback to the people involved
Establish Control Points

• Control points are activities such as
– Inspection, verification, auditing, measuring, counting…
– Usually considered business value adding
• Without control points and a control system the only way
of assessing process performance is customer feedback
Þ The process ends up in a reactive mode
Þ Poor quality is discovered too late
• Location of control points is determined by
– Criticality – impact on customer satisfaction
– Feasibility – physically and economically possible
Laguna & Marklund 52

Process Controlling (cont.)
Develop and Implement Measurements
• Involves answering the questions
1.What is to be measured and controlled (Ex. FedEx)?
2.What is currently measured (available data)?
3.Can a business case be made for a new measurement system?
4.What is an adequate sampling method, sampling size & frequency?
• Measurements should be meaningful, accurate and timely
– Statistical and graphical tools needed to turn data into information.
• Five measurement categories: Measures of…
– Conformance (to given specifications)
– Response time (lead-time, cycle time)
– Service levels (degree of availability, service reliability)
– Repetition (frequency of recurring events such as rework)
– Cost (Quality, PAF, internal and external failure costs)

Performance Measures in SCM
Overall Inventory Turns Annual cost of goods sold (company info)  average total inventory
Raw Materials Inventory Turns Annual cost of raw materials purchased (3)  average raw material
(manufacturing companies only) inventory
Work-in-Process Inventory Turns (Annual cost of raw materials purchased (3) + Annual cost of conversion
(manufacturing companies only) (4))  average work in process inventory
Finished Goods Inventory Turns Annual cost of goods sold (company info)  average finished goods
inventory
Percentage of safety stock Average safety stock  total inventory
Purchase order cycle time (in days for Average amount of time (in days) elapsed from point of intention to
purchasing department and excludes place order to receipt of order by vendor
supplier lead time)
Supplier lead time Average amount of time (in days) elapsed from point of order to delivery
Supplier on-time delivery Percentage of orders supplier delivers on scheduled due date
Find more at: 54

http://www.exinfm.com/workshop.html
What to Measure?
The Balance Scorecard Framework
55
After Kaplan & Norton (1992)
Strategy Map: Capture a Cause Effect
Relationship from the Bottom Up
Stakeholder
More rapid and

Improved Returns
accessible services
on Investments
Internal Process
Economic Reduce Re-Activities Establish Web-

Model Process thru ABC Based Self Services
& Growth
Learning
Expand Global Leadership Knowledge

Facility Reach Development Management
(Investments)
Financial
Facilities and IT Infrastructure

Fixed Assets Human Capital
56
http://www.exinfm.com/
Examples of Measurements by Perspective
Stakeholder / Customer Internal Processes
• Current customer satisfaction level • Number of unscheduled maintenance calls
• Improvement in customer satisfaction • Production time lost because of maintenance
• Customer retention rate problems
• Frequency of customer contact by • Percentage of equipment maintained on
customer service schedule
• Average time to resolve a customer • Average number of monthly unscheduled
inquiry outages
• Number of customer complaints • Mean time between failures
Learning and Growth Financial / Investments

• Percentage employee absenteeism • % of facility assets fully funded for
• Hours of absenteeism upgrading
• Job posting response rate • % of IT infrastructure investments
• Personnel turnover rate approved
• # of new hire positions authorized for
• Ratio of acceptances to offers
filling
• Time to fill vacancy
• % of required contracts awarded and in
place
57
Extend the Strategy Map with Measures,
Targets and Initiatives
Stakeholder
Strategy Map
Detailed How success in The level of Key action
Faster Service Access statement of achieving the performance programs
what is critical to strategy will be or rate of required to
successfully measured and improvement achieve
achieving the tracked needed objectives
Self Service strategy
Internal Process
Applications
Objective
Measure Target Initiative
Lean Processes Description
Eliminate waste, Number of 2 per setup per Lean / Six
reworks, and Reworks month each Sigma
Process and Value other errors in Outlet Office
Map Analysis our processes
L&G
Web Enable
Technologies
Investments
Invest in IT
58
Alignment of Scorecard Components
Make sure the components of your scorecard fit together. We want to
create a tight model for driving execution of your strategy.
Goal Objective Measurement Target Initiative

Achieve Reduce Cost per Outlet 5% - Year 1 Activity
Agency Operational Office, Cost per 10% - Year 2 Based
operational Service Costs by Region, Cost per 15% - Year 3 Costing /
efficiencies 50% over the FTE Management
with best next 5 years
practices in
the private Reduce identified Waste Volume Waste stream Lean / Six
sector re-activities Charts, Rework reductions of Sigma
within primary Tracking, Cycle 5% each year,
processes by Time End to End Reworks cut in
80% over the in S-LX (5 of 7 half for next 3
next 3 years Regions) years, cycle
time cut by 75%
59
Exercise
• June 2009 exam, question 2 (Masters of ETM

version)
60
Guidelines for Performance Measures
• At least one measurement per objective.

• Measurements define or explain objectives in
quantifiable terms:
Vague => We will improve customer
service
Precise => We will improve customer
service by reducing response times by
30% by year end.
• Measurements should drive change and encourage
the right behavior.
• Should be able to influence the outcome.
61
Benchmarking: SCORcards
T. Gulledge & T. Chavusholu: “Automating the construction of supply chain 62

key performance indicators”, Industrial Management & Data Systems, 2008.
Process Controlling (cont.)
Performing Feedback and Control
• Important for stabilizing and improving the process
• Objectives of control/corrective action are
– Regulation to maintain a certain performance level
– Improvement aiming at reducing variability or raising the average
performance level (see for example Six Sigma)
• Feedback is an important enabler for corrective action
– People in the process need to understand how their actions affect
the overall process and its performance
– Feedback should be constructive and non-punitive
• Constructive feedback of course!
– Makes people feel that they matter
– Encourages involvement and commitment

Six Sigma Quality Programs
• Six Sigma is originally a company wide initiative at Motorola
for breakthrough improvement in quality and productivity
– Launched in 1987
• The ongoing success of Six Sigma programs has attracted
a number of prestigious firms to adopt the approach
– Ex. Ford, GE, AMEX, Honeywell, Nokia, Phillips, Samsung, J.P.
Morgan, Maytag, Dupont…
 Broad definition of Six Sigma programs
“A company wide strategic initiative for process improvement in
both manufacturing and service organizations with the clear
objective of reducing costs and increasing revenues”
– Fierce focus on bottom-line results

Technical Definition of Six Sigma
• Reduce the variation of every individual process to render no more
than 3.4 defects per million opportunities
• Assuming the process output is normally distributed with mean  and
standard deviation  the distance between the target value and the
closest specification limit is at least 6  and the process mean is
allowed to drift at most 1.5  from the target
 - 1.5    1.5
Lower Specification Limit Target Value (T) Upper Specification Limit

(LSL) (USL)
4.5σ 1.5 1.5 4.5
6σ 6σ

The Six Sigma Cost or Efficiency
Rationale
• Reducing costs by increasing process efficiency has an
immediate effect on the bottom line
– To assure worker involvement Six Sigma strives to avoid layoffs
The Six Sigma Variation

Efficiency loop
Improvement projects
Commitment Reduced Costs
Cycle Time Yield

Increased Profits
Rationale
• Based on the dimensions of variation, cycle time & yield
Variation
• Can be divided into two main types
1. Common cause or random variation
2. Special cause or non-random variation
• Non-random variation
– Relatively few identifiable root causes
– First step in reducing the overall variation is to eliminate non-
random variation by removing its root causes
• Random variation
– The result of many different causes
– Inherent in the process and can only be affected by changing
the process design

Rationale
Variation (cont.)
• Important concepts to understand the impact of variation
– Dispersion
– Predictability
– Centering
• Dispersion
– Magnitude of variation in the measured process characteristics.
• Predictability
– Do the measured process characteristics belong to the same
probability distribution over time?
– For a predictable process, dispersion refers to the width of the pdf.
• Centering
– How well the process mean is aligned with the process target value
Rationale
Variation (cont.)
• Ideally the process should be predictable, with low
dispersion, and well centered
• Standard approach for reducing variability in Six Sigma
programs
1. Eliminate special cause variation to reduce overall
dispersion and improve predictability
2. Reduce dispersion of the predictable process
3. Center the process to the specified target
• Six Sigma use traditional tools for quality and process
control/analysis
– Basic statistical tools for data analysis
– The 7 QC tools

Rationale
Cycle time and Yield
• Cycle time (lead-time, response time)
– The time a job spends in the process
• Yield (productivity)
– Amount of output per unit of input or per unit time
• Improvement in cycle time and yield follow the same
tactic as for variation
– Gain predictability, reduce dispersion and center to target
• The target is usually broadly defined as
– Minimize cycle time and Maximize yield
• Six Sigma principle
– Improvement in average cycle time and yield should not be
made at the expense of increased variation
The Six Sigma Revenue or
Effectiveness Rationale
• Determinants of the company’s revenues
– Sales volume closely related to market share
– Sales prices
Þ Revenues contingent on how well the
firm can satisfy the external customers’
desires
 An important Six Sigma Success factor is
the focus on internal and external
customer requirements in every single
improvement project

The Six Sigma Cost & Revenue
Rationale
Variation
Improvement projects Customer satisfaction
Increased Market
Commitment Reduced Costs Share & potentially
higher prices
Increased Profits Increased Revenues
Cycle Time Yield

The Six Sigma Framework
 Centered around a disciplined and quantitatively
oriented improvement methodology (DMAIC)
– Define, Measure, Analyze, Improve, Control
Top Management Commitment
Training
Improvement Methodology
Define Measure Analyze Improve Control
Measurement System
Stakeholder Involvement

Six Sigma Success Factors
• The bottom line focus and big dollar impact
– Encourages and maintains top management commitment
• The emphasis on - and consistent use of - a unified and
quantitative approach to process improvement
– The DMAIC methodology provides a common language to share
experiences and successes across the organization
– Creates awareness that decisions should be based on factual data
• Emphasis on understanding & satisfying customer needs
– Creates focus on doing the right things right
– Anecdotal information is replaced by factual data
• Combination of right projects, right people and right tools
– Careful selection of projects and people combined with hands on
training in using statistical tools in real projects

Recap: The Layers of BPM Activities
BPM Setup
Strategic BPM BPM Process-aware Culture &
Alignment Governance Methodology Infom. Systems People
Process Analysis
Process Process Process Process Process
Identification Modelling Measurement Analysis Improvement
Lean/
Six Process Process Process Process Change
Sigma Configuration Development Training Testing Management
Process Execution and Controlling

Process Process Process Process Process
Execution Monitoring Mining Perform. Mgt. Controlling
75
Project
(see project description on the course

web page)
Readings
• P. Harmon.
Business Process Architecture and the Process-
Centric Company
, BPTrends Newsletter, March 2003.
http://tinyurl.com/c88rlp
• P. Harmon.
Business Processes at a New Company: What
Do You Do First?
. BPTrends Newsleter, October 2004.
http://tinyurl.com/cfckrf
77

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MTAT.03.

Lecture 3: Process Implementation,

11.45-13.15 Process Implementation

13.15-14.15 Lunch break

14.15-15.45 Process Monitoring and Mining

16.00-17.30 Process Measurement and Controlling

• Parallel routing of functions

• Organisational Change and Enablement

1. Buy-in, not only commitment

• Multi-module application that helps a company manage

• High cost and cost overruns

Big Other Commerc Commun

Customer Create Card

Advisor Create Credit

Introduction of Customer packages.

Customer Create Card

Microsoft Office Word 2003.lnk

Backoffice group created

Customer Create Card

Microsoft Office Word 2003.lnk

Case Transfer System

Microsoft Office Word 2003.lnk

Workflow enabled creation process v. 1

Service Service Service

Microsoft Office Word 2003.lnk

Executable Business Process

WSDL A1 WSDL A2 WSDL A3 WSDL A4

Service Bus / Container

App1: COBOL App2: PL1 App3: Java App4: C#

Admin Users Applications

resource manager resource 2

© Michael zur Muehlen 40

Process Cycle Time

• ARIS Process Performance Manager

Register (Re)send Archive

Register (Re)send Archive

Order Machine Inbound Purchase

Read Test Reviews

Receive Machine Receive Screen

Check Bank Account

Warehouse/ Material Invoice

Install Operating System

Is the “four-eyes” principle

Are there cases where an invoice is

• Collation and analysis of runtime data

Establish Control Points

Laguna & Marklund 52

Laguna & Marklund 53

Find more at: 54

More rapid and

Economic Reduce Re-Activities Establish Web-

Expand Global Leadership Knowledge

Facilities and IT Infrastructure

Learning and Growth Financial / Investments

Goal Objective Measurement Target Initiative

• June 2009 exam, question 2 (Masters of ETM

• At least one measurement per objective.

T. Gulledge & T. Chavusholu: “Automating the construction of supply chain 62

Laguna & Marklund 63

Laguna & Marklund 64

Lower Specification Limit Target Value (T) Upper Specification Limit

Laguna & Marklund 65

The Six Sigma Variation