AAOM Handbook

Management Process Model

PROCESS

INPUTS

OUTPUTS

MANAG’T PROCESSES

TARGETS / STRATEGY SCHEDULE / BUDGET WORK MANAG’T ANALYSE & IMPROVE

EFFECTIVENESS

LABOUR

EFFICIENCY

MATERIALS

EQUIPMENT

SUSTAINABILITY

PLANNED

RIGHT WORK

SCHEDUED

RIGHT TIME

RESOURCED

RIGHT WAY

The purpose of a Process is to produce a desired set of outcomes. The outcomes (purpose) of a Process can be characterised by its Effectiveness (units of quality output on/over time), Efficiency (eg units of output per unit of input or cost per unit of output), and Sustainability (the requirements for continuing in business - eg safety, environment, social, return on investment and operating life expectations). The minimum set of measures that fully represent the significant characteristics of the purpose of the Process form the Key Performance Indicators (KPIs) of that purpose. As stated and seen above, the outputs of a Process exhibit variation – and in some cases significant variation! Consequently, when setting performance targets for a Process the impact of variation must be taken into account. Setting a target that comprises a single number is rather meaningless. When the varying output of a process is compared to it the two will almost always be different – look at the charts above and you will see that, regardless of the value you choose, that value seldom recurs over the period of measurement. A target must therefore be expressed as a specification that may include; a lower limit, an upper limit, or both, and perhaps a target mean. Where it is not necessary for every result to meet the specifications, but they must be met when averaged over a number of results, then this measurement interval must also be specified. The number of result within this interval that meet a specification (a measure of the confidence level of the Process) can then easily be

© McAlear Management Consultants 2005 – 2012

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