Performance analysis means using key metrics to evaluate performance efficiency, effectiveness, or success. Performance analysis uses a variety of key performance indicators (KPIs), like lead time, average cost of resources used, or customer satisfaction scores. It looks at three specific dimensions: cycle time, cost, and quality. This is how you identify bottlenecks and understand why processes take too long or cost too much.
What does performance say about my process model? High performing processes are based on strong process models. It’s an indicator of a well-designed and well-implemented process.
The higher the standardization, the higher the process performance. High standardization means that a process only has a few process variants—the main variants. The main variants are the variants that run through most business transactions. In most cases, the main variants correspond to the target process or reference process—in other words, the process runs as it was originally intended to run.
Main variants are generally rule-compliant and efficient. However, unplanned process sequences often develop over time due to both internal and external factors. After all, not all circumstances or relationships are predictable or calculable. For example, overload, technical problems, or supplier problems can cause an unplanned process implementation or process run.
A high number of process variants—and low standardization—often has a negative impact on performance. A standardized process implementation saves resources and is essential for good process performance.
A case’s cycle time indicates how long a business transaction took from start to finish. For example, the cycle time of a manufacturing process might reflect how long it takes to produce one product. In general, the shorter the cycle time, the better, as long as the quality of the service or product does not decrease as a result. Shorter cycle times often increase customer satisfaction and reduce capital commitment costs.
The output quality of a business process is critical. Quality impacts customer satisfaction, the market’s perception of your product or service, and more. A low-quality product can indicate an ineffective process.
Process implementation cost is a key indicator of process performance. Consider the following to determine how process implementation has affected costs:
If costs are higher than those for other comparable products or services and not attributable to another source, like process change or restructuring, then you should evaluate process implementation as a potential cause of the cost.
Related Terms: Key Metric, Analysis, Process Cycle, Cycle Time
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