ISCOM471 - Business Process
ISCOM471 - Business Process
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Date Created: 11/07/15
Running head BUSINESS PROCESS ANALYSIS AND MEASUREMENT Business Process Analysis and Measurement Angie Killion Michael Farrar William Schiferl ISCOM 471 August 25 2013 Paul Yakob University of Phoenix BUSINESS PROCESS ANALYSIS AND MEASUREMENT 2 Business Process Analysis and Measurement In 1916 William E Boeing came from the timber business in the northwestern part of the United States where he did well for himself Boeing was interested in planes that landed on water called sea planes Boeing bought one of these sea planes and not long after that crashed his plane and needed parts to fix his plane Boeing was told that it was going to take months to get replacement parts and decided that he could build his own plane in that amount of time and that was the start of Boeing Company Today Boeing Company has diVisions and plants nationwide that employ over a hundred thousand employees Boeing Company is one of the largest commercial aircraft manufacturers in the world Boeing Company also has diVisions in aerospace and defense contractor To keep such a large company operational one has to take into consideration the business processes analysis and measurements necessary to compete financially but also build a product that is safe and reliable for the company s customers In this paper team A will show the readers some of the process performances used to ensure that the quality of products and financial future of Boeing Company remain intact Additionally one is going to read about the stakeholders who have a vested interest in Boeing Lastly one is going to read about some of the performance measurements Boeing Company uses Now please fasten your seat belts and return your tray tables and seats to their upright position as we prepare for takeoff on team A airlines Four Processes that Boeing Uses to Determine Process Performance Boeing uses several processes to determine process performance One approach Boeing A amp T a diVision of Boeing uses is ProcessBased Management PBM PBM approaches an organization as a collection of processes focused on customer serVice satisfaction and waste BUSINESS PROCESS ANALYSIS AND MEASUREMENT 3 reduction by defining measures and stabilizing and improving processes Garretson amp Harmon 2005 Boeing uses PBM to define the core processes of the organization as well as its sub processes Boeing uses PBM to determine the process performance of its processes Boeing also uses process owners to determine process performance They are not always managers but in some cases are subject matter experts These owners are to ensure that the process follows all requirements and that the output meets the agreed upon quality There are four key performance areas that Boeing uses to measure process performance quality timeliness efficiency cycle time Garretson amp Harmon 2005 Quality is measured through conformance or non conformance or the requirements or expected performance Timeliness is measured through the success in meeting customer commitments Efficiency is measured through the output a process produces in relation to cost Cycletime is measured through the time between a customer request and delivery of the product Boeing also has personnel schooled in process redesign lean balanced scorecard and Six Sigma Boeing has developed software called ProcessBased Management System in which all of their process owners as well as the individuals in each of the mentioned disciplines can come together and use one system to determine how to improve their performance as a team The transition to PBM was not an easy transition for Boeing but it has proven to be a success They have received the Malcolm Baldrige National Quality Award the California Awards of Performance Excellence Gold and the California Govemor s Award since its implementation in 1998 Garretson amp Harmon 2005 Four of the Organization s Stakeholders and how they affect the Business Processes BUSINESS PROCESS ANALYSIS AND MEASUREMENT 4 At Boeing stakeholders include employees vendors customers and shareholders Each stakeholder represents an investment made into the company and the company has a responsibility to each stakeholder Employees Employees at Boeing are the driving force to how the company s product gets from idea through manufacturing and to the customer Boeing employs around 172000 people in a given period Boeing 2013 and uses its employee resources to control and support business processes Because the company is so vast the employees are split into several groups The largest group is the Commercial Airplanes division that uses more than 82000 employees to concentrate on the engineering design sales and production of commercial planes The Defense Space and Security division employs 58000 people to focus on meeting military and government focused needs The Corporate division consists of roughly 30000 managers and corporate officers to help guide the company to a profitable state Boeing also has Engineering Operations and Technology divisions that employs 8000 people who are responsible for defining and implementing corporate strategies for attaining and maintaining functional and technical excellence including enhancing the yield of Boeing39s technology investments across the enterprise quotBoeing 2013 Vendors Because the aerospace industry is specialized in so many different ways vendors must be partnered with on their ability to build quality product meet deadlines and resolve issues BUSINESS PROCESS ANALYSIS AND MEASUREMENT 5 quickly Boeing sources from more than 23000 suppliers that provide what the company needs to be competitive in the market Boeing Suppliers 2013 Vendors effect business processes by building a relationship with Boeing understanding what they can provide as a Boeing vendor and seeking to maintain a future with the company Customers Boeing s direct customers include both small and major airlines military and private individuals The Boeing Company has made a commitment of quality and excellence to its customers and therefore seeks to create the best value it can in their products Boeings largest customers are from major airlines that require certain aspects of their product to be customized to their needs Options such as paint scheme interior layout or design and a trained ight crew are available upon customer requests Offering these diverse options requires Boeing to be adaptable to their customers and work hard for customer satisfaction Shareholders As of 2013 Boeing boasts more than 81 billion dollars in revenue and 39 billion in profit over 66 of which is stockholder equity The company has also produced an average annual growth rate of 237 since 2002 These numbers show that Boeing feels a responsibility to its shareholders by continue their trend of profitability Shareholders like customers are considers in every aspect of the Boeing business process The company is continually changing to improve processes and create more opportunities for higher profit and higher value to their customers This trend also increases the value that Boeing has to its shareholders BUSINESS PROCESS ANALYSIS AND MEASUREMENT 6 Identify and Describe Performance Measures There are several performance measurements that were read about within the weeks reading In this paper one is going to hear about effectiveness quality productivity and timeliness Boeing Company uses all of these performance measures as a process to help the company s current and future line of products and services The effectiveness of a company in a chosen craft or sector of any industry has to be checked and evaluated Boeing is in the aircraft and aerospace industry but the large majority of Boeings aircraft have wheels Could Boeing get into the wheel business Absolutely however there are already business who are effective and are experts in the tire or wheel business It would not be effective for Boeing to get into that industry If one is in a business whether it is the sale of a product or the sale of a service there has to be quality in the product or service Even if the product or service is so cheap that one has to buy the goods the goods have to have a degree of quality There is a imaginary line where price and quality have to cross each other If that line is too high the price of the product could put the company manufacturing the product out of business If that line is to low the cheap price is going to sell the products initially but that product will have a short life cycle because of quality Just as it was with the quality measurement productivity and timeliness also have an imaginary line where both of these measurements have an affective and ineffective measurement There is a limit to the productivity that the company can reach That productivity is based on how long it takes to make that product by how many people are making that product The timeliness is the time necessary to satisfy the customers who are waiting for their airplanes in this case with Boeing Company Boeing Company can tell one of the airlines that the company is going to deliver a specific number of aircraft but if the productivity of the company BUSINESS PROCESS ANALYSIS AND MEASUREMENT 7 cannot bring delivery of those aircraft the timeliness guaranteed will not be made and there for be untimely Conclusion In the beginning of this paper the reader was able to read about how a plane crash helped to make one of the largest aircraft manufacturers come to existence Through that plane crash and through sound business decisions Boeing Company will have reached its golden anniversary in the year 2016 The process based management PBM used by Boeing Company is in many ways the same performance measurement processes used by companies all over the world except just like with other companies Boeing Company tailors there processes to their company The processes are different but yet still the same With communication and hard work stakeholders both internal and external are able to grow and enjoy success at Boeing Company Thank you for ying team A airlines now if you can return your tray table and seats to their upright position and fasten ones seatbelt we can have the ight crew prepare for our safe landing BUSINESS PROCESS ANALYSIS AND MEASUREMENT 8 Reference Boeing 2013 Retrieved from httpboeingcomfboeingaboutusemploymentemploymenttab1epage Boeing 2013 Retrieved from httpWWWboeingcomfboeingcompanyofficesaboutusthindexpage Boeing Suppliers 2013 Retrieved from httpboeingsupp1ierscom Garretson P amp Harmon P 2005 November How Boeing AampT Manages Business Processes Retrieved from httpWWWbptrendscompublicationfilesl105WPBoeingATBPM GarretsonHarmonpdf Chase R B Jacobs F R ampA uilano N J 2006 0 erations mana ement or com etitive advantage 11th ed New York NY McGraWHill Companies
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