PROCESS EXCELLENCE – Efficiency Vs. Effectiveness
Organisations simply cannot ignore the terms ‘efficiency’ and ‘effectiveness’ whilst practicing Process Excellence. For increasing productivity as well as improving customer service, both of these are essential.
“Efficiency is doing the things right; effectiveness is doing the right things”. – Peter Drucker
Effectiveness of a process is the measure of how relevant the output is to the desired objective. A truly effective process will make customers happy by providing everything right. That is, the right results at the right place time and cost. Hence, measure process effectiveness from the customers’ goal point of view.
Process efficiency, on the other hand, acts as a vital factor in determining productivity. It is a measurable concept. Essentially it is the ratio of ‘useful output to total input’. Hence it requires resource optimization (mainly cost and time) along with maximum waste reduction.
To understand process efficiency we need to measure process time, cost and effort needs.
Measuring Process Excellence with PRIME
The PRIME Suite provides all the tools to achieve Process Excellence. First of all use the PRIME Modeller to document your business processes. Then automatically identify processes that require urgent attention, or are customer facing. Move forward with these to analyse for efficiency and effectiveness.
As a result, process effectiveness is easily measured by using the PRIME Analyser engine. The Analysis shows the value of each task within a process. That is, does it add value to the customer? Or does it add value to the business? Or does it add no value?
The PRIME Analyser engine also easily calculates process efficiency. PRIME easily calculates process cost, process execution time and process delay time. In addition, calculate process cycle efficiency at a click of a button.
Use these analysis outputs to find opportunities to trim waste from your business processes. Consequently, drive process efficiency and process effectiveness with PRIME and achieve process excellence today.
The Process Excellence Revolution
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