Internal Business Process Performance - Template.net by: Josua Tarigan, MBA, CMA, CFP, CSRS Internal...
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Presented by: Josua Tarigan, MBA, CMA, CFP, CSRS Internal Business Process Performance
Transcript of Internal Business Process Performance - Template.net by: Josua Tarigan, MBA, CMA, CFP, CSRS Internal...
Presented by: Josua Tarigan, MBA, CMA, CFP, CSRS
Internal Business Process Performance
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• Internal Process performance will drive financial performance and customer performance
• Business performance will determine your company sustainaibility (customer) and potential profit (financial)
• This things can be managed by using ABM concept.
• Activities and Effects (potential loss or potential profit)
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InnovationOBJECTIVES MEASURES
Increase the numberof new products
Percentage revenue from new product
Increase proprietaryproducts
Percentage revenue fromproprietary products
Decrease new productdevelopment time
Time to market (from start to finish)
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OperationsOBJECTIVES MEASURES
Increase process qualityQuality costs
Percentage of defective unitsOutput yields
Increase process efficiency
Unit cost trendsOutput/input(s)
Decrease process timeCycle time and velocity
Manufacturing Cycle Efficiency
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• Examine various activities involved in producing your product or services?
• Examine the value and cost in each activities. Profit Margin can be reached only if the company create value added more than costs
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• Check efficiency and effectiveness in your company process activity
• Efficiency focuses on the denominator (output divide by input)
• Effectiveness asks a simpler question: Should I be doing this work, or activity, at all?
• Waste permanently reduces available resource, and creates profit potential
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Manufacturing Cycle Time
(MCT) ProcessingTime
MaterialHandling
Time
InspectionTime
WaitingTime
= + + +
Value AddedActivities
NON Value AddedActivities+
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• Using lean system• JIT System• Total Quality Management• Value Engineering• etc
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The circled observations are unacceptable, that is, they suggest an out-of-control process. Management may want to investigate the underlying causes of these observations and take appropriate corrective action.
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Josua TariganBusiness Accounting ProgramPetra Christian University, IndonesiaP: +62-31-2983230E: [email protected]: [email protected]
