Certified Business Process

Professional (CBPP®)
Study Session

Part 3
Sept. 1, 2010
 Part 3 of Certification Overview ABPMP

• Process Performance Management

Tony Benedict
President ABPMP
• Process Improvement Methodologies
Gabrielle Field
VP Certification, ABPMP
• Today’s session will cover your questions on
the key concepts for these topics
• We will review sample questions to prepare for
the exam format

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 House Keeping ABPMP

• Only the “call in option” is available today to

increase the recording quality of the
webinar
• An On Demand version of this will be
available through the ABPMP website
• A PDF of the slides will also be available for
this webcast with the On Demand version

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BPM CBOK® Knowledge Areas
Knowledge Areas
Business Process Management

Business Process Management Technologies

Process Management Organization

Enterprise Process Management

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5.0 Process Performance Management
14 Questions 10% of the Exam

5.0 Effective Process Measures

 Understand the role and objectives of measurements and metrics in the Process
Performance Management
 Describe fundamental metrics dimensions and characteristics of effective metrics
 Describe the concept of "value added" versus "non-value added" measurement
approaches

5.1 Importance and benefits of (cross-functional) performance

management
 Understand the benefits of cross-functional process improvement efforts versus
isolated functional area improvements
 Understand the reasons for continues process monitoring and control

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5.0 Process Performance Management
14 Questions 10% of the Exam

5.2 Alignment of business process and enterprise performance

 Understand the difference between functional and cross-functional (enterprise
level) metrics
 Understand the difference between the key approaches to process improvement
methods; explain the key differences in the tools used by each

 Decision support for process owners and managers

 Describe the reasons for planning for monitoring and controlling of business
processes
 Describe the role of business intelligence in decision support for process owners
and managers

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 ABPMP

Importance of Performance Measurement

• Aligning process performance to organizational

goals is primary reason for process management

• “If you can’t measure it, you can’t manage it”

• Focusing on process & associated process

performance metrics vs. just financial metrics
yields greater overall performance improvements

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 ABPMP

Key Process Performance Definitions

• Time – measurement of process duration
– Cycle time – time it takes from start of process to
completion
• Cost – measurement of monetary value
– Resource cost – monetary value of resources (human
or non-human) required to complete process
– Opportunity cost – value lost from process by not
getting the resultant output of the process
• Capacity – amount or volume of a feasible output
– Usually includes associated revenue
– Can also include throughput

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 ABPMP

Key Process Performance Definitions

• Quality – usually expressed as percentage of actual to

optimal/maximum in process terms
– Satisfaction – measurement of customer satisfaction
– Variation – measurement of the amount, extent, rate or
degree of change; usually expressed as the difference
between the actual & target/expected result
• Value Added – required to generate the output required by
the customer or when the customer is willing to pay for the
process that generates the output; or to maintain quality &
consistency, continuity or transport

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What to Measure ABPMP

• First understand the desired result

• Quality information comes from inputs/outputs &
entire process
• Cost information comes from resources needed
to perform the process & outputs
• Capacity information comes from outputs
• Time information comes from entire process
(supplier to customer)
– Can be broken down between supplier & input & output
& customer

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 Audience Survey
Sample Question #1
Process modeling:
 What is the purpose of “as is” process
modeling?
                             A)           To support audit requirements
                        B)            To define the current activities and rules
                                C)            To compare against a "to be" model
                                D)           To identify poor performance

                                               

      
 Audience Survey
Correct Response #1
Process modeling:
 What is the purpose of “as is” process
modeling?
                          
                        B)            To define the current activities and rules

                                                                              

      
 Audience Survey
Sample Question #2
Process modeling:
 What does a process model depict?
A)           Sequence of process activities using standard and custom symbols
B)            Job procedures of people involved in an activity for process costing
 C)            Legacy application interfaces that capture activities
D)           Workflow standards to track the volume of handoffs
                                               
 Audience Survey
Correct Response #2
Process modeling:
 What does a process model depict?

 The sequence of process activities using

standard and custom symbols
 Audience Survey
Sample Question #3
Process measurement:
 Which of the following is a process improvement
methodology characterized by statistical process control
techniques to reduce variation?
A) Six Sigma
B) Lean
C) Activity Based Costing (ABC)
D) Total Quality Management (TQM)
 Audience Survey Questions
Correct Response #3
Process measures:
 Which of the following is a process improvement
methodology characterized by statistical process control
techniques to reduce variation?

Six Sigma
5.0 Process Performance Management
14 Questions 10% of the Exam
5.2 Alignment of business process and enterprise
performance
 Understand the difference between functional and cross-functional (enterprise
level) metrics
 Understand the difference between the key approaches to process
improvement methods; explain the key differences in the tools used by each.

 Decision support for process owners and managers

 Describe the reasons for planning for monitoring and controlling of business
processes
 Describe the role of business intelligence in decision support for process owners
and managers

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Activity-Based Costing ABPMP

• Accounting methodology that assigns costs to

activities rather than products/services
• Provides data about how costs are actually consumed
in a process
• Used to discover opportunities for cost/efficiency
improvement
• Focuses on overhead, traces rather than allocates
each expense to a particular cost object
• Makes indirect expenses direct
• Use when overhead/cost of errors is high, inefficiency
is identified or competition is stiff
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Wastes Identified in Lean ABPMP

Value Stream Mapping

DEFECTS
MOTION
WAITING Repair Any wasted time
or to gather resources
Any non-work time Rework such as documents
waiting for approval,
or requirements in
resources, info, queue
multiple systems.
time, etc.

PROCESSING
The 7 OVERPRODUCTION
Doing more work than Producing more
is necessary (work not
Wastes than is needed before
specified in the scope it is needed, working
or requirements). non priority items early
INVENTORY
Maintaining excess
TRANSPORTATION
output such code to Wasted time to move
be deployed in later code, documents, etc.
between processes. (i.e.
releases, etc.
manually record
something in another
system)

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Statistical Methods – Six Sigma ABPMP

• Science of collecting, analyzing, presenting &

interpreting data
• Used to understand & reduce or eliminate
variability in processes for improvement
• Focuses on data (inputs that drive the outputs)
and processes primarily responsible for driving
inputs
• Use when error rate is high or outputs are
inconsistent

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Critical Success Factors ABPMP

• Focus on people as much as the process

• Education – make sure everyone knows the entire
process & not just their part
• Everyone has same understanding of the “process”
• Everyone understands why process is important – tie to
operational performance metrics for the company & tie
compensation to the improvements
• Engage those who design and approve process
activities as well as those who perform the work
• Attempt to “over communicate” the goals & objectives
(performance metrics) of the process

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 Next Steps:
Review Chapters 8 and 9 of the BPM
CBOK®
Next Webinar Topic:
The Process Organization 7.0
Enterprise Process Management 8.0
September 15, 2010
Jon Strickler, ABPMP
Denver Chapter

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