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Information Technology
ITEC 4030
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Business Process Management Systems ITEC 4030 – Winter 2011 – Peter Khaiter Lecture 6 – Analysis and Redesign of Business Processes – Jan 26 Process Analysis and Redesign: Overview - Activities o Continue data collection if needed (Not covered here, See Lecture 5 on required data) o Analyze and diagnose AS-IS process o Design and model alternative TO-BE processes (BPR principles & best practices) o Analyze alternative TO-BE processes (Only one TO-BE process here) o Select best TO-BE process o Plan process integration phase (Plan design of computer-based apps) - Deliverables o Software-based process model o Process Reengineering Report - Key participants o Process participants o BPR team Zyco Customer Service Process Elements of the Process Scoping - Process redesign goals: Capitalize on e-business opportunities in order to o Enhance customer service (reduce cycle time) o Reduce fraud exposure o Reduce costs for partners (agents and repair shops) - Process targeted: Auto windshield claims process o Subprocess 1: Checking insurance coverage o Subprocess 2: Repairing the windshield o Subprocess 3: Processing the insurance claim and settling payment - Inefficiencies of AS-IS process o Delay in providing service due to backlog of phone calls o Unwanted fraud exposure o Telephone tag problems faced by the repair shop Analyze and Diagnose AS-IS Process - What: o Understand how well the process works o Diagnose process performance problems (time- and cost- related metrics) o Identify bottlenecks/critical areas (queues, process capacity, resource usage) o Identify other problems that are not necessarily quantifiable - How (analysis methods): o Identification of process problems through modeling and data collection  See annotation objects used to document problem in process o Identification of process problems through cases  Review of individual paths (Lab5) o Analysis of individual cases: Isolation and analysis of the most deficient case  Review of cases by frequency, cost and processing time (Lab5 + p.146-147) o Evaluation of entire process: Weighted Average Analysis  Review of W.A. cost of W.A. processing time (Lab5 + p.146-147)  Classification of cases as processed / denied claims (or orders, etc.) (p.146-148)  Review of frequencies for most deficient/efficient case in each category (p.146-147) - See next slide for illustration Illustration: Case Analysis (Zyco, AS-IS) - Claim processed: o 90% of all claims received are processed o Cost of processing a claim ranges from $1.64 to $4.13 and averages $3.48 o Cycle time (average length of time based on the critical path) averages 11 days  The processing time inside Zyco averages 7.66 days  The working time (average duration that excludes waiting and transfer time) in the process during which the claim is being worked on averages 19 minutes (.04 days x 8 hours x 60) o Most frequent case(s) and cost: Case 1 occurs 54% of the time but costs $3.65 per claim, twice as much as the least c
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