Frumherji Case Study
Frumherji Case
Frumherji is a vehicle inspection company in Iceland. They lead in inspection, testing, and legal metrology in the country. In order to maintain that lead and continue to grow profitably in the future, they must make some adjustments or address some inefficiency in their process. The main problems Frumherji has to cope with include high degree variation in demand and uncertainties with excess capacity in staffing and physical space. The company also needs to make some strategies to decrease the potential loss of customers who are dissatisfied with the too long waiting line. To deal with the challenges and try to figure out problems, Frumherji hires a local consultant, Brynja Thorbjornsdottir. She collects the process data and makes observations about customer service at Frumherji’s largest station, Hesthals, located in Reykjavik. The company hopes to use this information to help it identify problems and introduce solutions.
Is there a link between the KPI’s and the process map?
There is a link between the KPIs and the process map. The KPI is a tool to evaluate the success of an organization or of a particular activity. The key performance indicators for the vehicle inspection department at Frumheriji define the success of the company in market, service, pricing, quality, and employee qualifications and set goals of each particular activity. All of these offer good guides and right directions for the company to improve operational progress and to get a further more successful development. The process map describes specific and valid steps about the operational process. It helps the company to understand the entire process better and figure out where could be improved to reach the goal. For example, if there is a problem in the process, they can check the process whether it get something which is against the goal in the KPI. So the KPI provides perfect factors for process maps’ checking and improving.
Frumherji is a vehicle inspection company in Iceland. They lead in inspection, testing, and legal metrology in the country. In order to maintain that lead and continue to grow profitably in the future, they must make some adjustments or address some inefficiency in their process. The main problems Frumherji has to cope with include high degree variation in demand and uncertainties with excess capacity in staffing and physical space. The company also needs to make some strategies to decrease the potential loss of customers who are dissatisfied with the too long waiting line. To deal with the challenges and try to figure out problems, Frumherji hires a local consultant, Brynja Thorbjornsdottir. She collects the process data and makes observations about customer service at Frumherji’s largest station, Hesthals, located in Reykjavik. The company hopes to use this information to help it identify problems and introduce solutions.
Is there a link between the KPI’s and the process map?
There is a link between the KPIs and the process map. The KPI is a tool to evaluate the success of an organization or of a particular activity. The key performance indicators for the vehicle inspection department at Frumheriji define the success of the company in market, service, pricing, quality, and employee qualifications and set goals of each particular activity. All of these offer good guides and right directions for the company to improve operational progress and to get a further more successful development. The process map describes specific and valid steps about the operational process. It helps the company to understand the entire process better and figure out where could be improved to reach the goal. For example, if there is a problem in the process, they can check the process whether it get something which is against the goal in the KPI. So the KPI provides perfect factors for process maps’ checking and improving.