Process Management

Only available on StudyMode
  • Download(s) : 73
  • Published : March 14, 2013
Open Document
Text Preview
Statements on Management Accounting
BUSINESS PERFORMANCE MANAGEMENT

TITLE

Implementing Process Management for Improving Products and Services

CREDITS
This statement was approved for issuance as a Statement on Management Accounting by the Management Accounting Committee (MAC) of the Institute of Management Accountants (IMA® IMA ). appreciates the collaborative efforts of the Cost Management Competency Center at Arthur Andersen LLP and the work of Dr. C.J. McNair, CMA, of Babson College, who drafted the manuscript. Special thanks go to Randolf Holst, CMA (Canada), Knowledge Manager at Arthur Andersen, for his continuing oversight during the development of the Statement. IMA thanks the Consortium for Advanced Manufacturing-International (CAM-I) for their support in the development of this SMA. IMA is also grateful to the members of the Management Accounting Committee for their contributions to this effort.

Published by Institute of Management Accountants 10 Paragon Drive Montvale, NJ 07645 www.imanet.org

Copyright © 2000 in the United States of America by Institute of Management Accountants and Arthur Andersen LLP All rights reserved ISBN 0-86641-288-3

Statements on Management Accounting
BUSINESS PERFORMANCE MANAGEMENT

Implementing Process Management for Improving Products and Services TABLE OF CONTENTS
I. Rationale . . . . . . . . . . . . . . . . . . . . . . . 1 II. Scope . . . . . . . . . . . . . . . . . . . . . . . . . 1 III. Defining Process Management . . . . . . . . .2 IV. Elements of a Process . . . . . . . . . . . . . .4 V. Classification of Processes . . . . . . . . . . .7 VI. Characteristics of a Process . . . . . . . . . .9 VII. Why Implement Process Management . . .9 VIII. The Role of Management Accounting . . .10 IX. Stages in Implementing . . . . . . . . . . . . .11 Process Initialization . . . . . . . . . . . . . .13 Establishing Process Ownership . . . . . . .13 Defining Process Boundaries . . . . . . . . .15 Process Definition . . . . . . . . . . . . . . . .19 Defining the Process . . . . . . . . . . . . . . .20 Establishing Customer Requirements . . .24 Process Control . . . . . . . . . . . . . . . . . .25 Establishing Control Points . . . . . . . . . .25 Measuring/Assessing the Process . . . .30 Performing Feedback and Corrective Action . . . . . . . . . . . . . . . . .34 Ensuring Continuous Improvement . . . .34 X. Conclusion . . . . . . . . . . . . . . . . . . . . .37 Glossary Bibliography

Exhibits
Exhibit 1: Exhibit 2: Overview of Process Management .3 Key Process Performance Dimensions . . . . . . . . . . . . . . . . .5 Exhibit 3: Process Flow Depiction of a Purchasing Procedure . . . . . . . . . .6 Exhibit 4: Process Classification Framework .8 Exhibit 5: GTE Telephone Process Migration Model . . . . . . . . . . . . . . . . . . . . .12 Exhibit 6: GTE Telephone Process Management Roles and Responsibilities . . . . . .14 Exhibit 7: Customer-Producer-Supplier Relationships . . . . . . . . . . . . . . .16 Exhibit 8: Information Flowchart . . . . . . . . .17 Exhibit 9: Deployment Matrix . . . . . . . . . . .18 Exhibit 10: Interlocking Responsibility Matrix .20 Exhibit 11: Macro Definition of an Accounts Payable Process . . . . . . . . . . . . .21 Exhibit Exhibit Exhibit Exhibit 12: 13: 14: 15: Process Flowchart Symbols . . . . .22 Steps in Compliance Initiatives . .27 Quality Feedback Loop . . . . . . . . .28 Customer Service Conformance Check Sheet . . . . . . . . . . . . . . . .29 Examples of Process Performance Measures . . . . . . . . . . . . . . . . . .32 Process Features Conformance Chart . . . . . . . . . . . . . . . . . . . . 33 Shewhart Control and Pareto Charts . . . . . . . . . . . . . . . . . . . .35 Process Adaptability Checklist . . .36

Exhibit 16: Exhibit 17: Exhibit 18: Exhibit 19:

BUSINESS PERFORMANCE MANAGEMENT

I . R AT I O N A L E
Organizational survival depends on meeting the minimum requirements set by the market for a product or service. A...
tracking img