VOJISLAV STOILJKOVIĆ, Prof. dr CIM College d.o.o., Niš, Serbia DRAGUTIN FUNDA, M. Sc. Hrvatski zavod za norme, Zagreb BRATISLAV STOILJKOVIĆ, bba CIM College d.o.o., Niš, Serbia vojislav.stoiljkovic@cimcollege.co.yu dfunda@net.hr bratislav.stoiljkovic@cimcollege.co.yu
IMPROVMENT OF ECONOMICS BY IMPLEMENTING PROCESS-BASED INFORMATION SUPPORT
Summary Economic development of a company can be achieved by embarking upon continuous process improvement, and by eliminating process variations and hidden costs. Once improved, processes should be information-supported. The quality perspective in the supply chain in business today becomes more important every day. This perspective is briefly reviewed in this paper. Moreover, the paper elaborates on the concepts of process mapping, improvement, information support, and tools and methods for quality analysis in both services and manufacturing. The process mapping to be presented is based on the SIPOC model using Visual Processes .Net process-modeling tool. Applying quality tools and methods allows organizations to profit from the "low fruit” and improve processes without significant financial investment. Key words: Process Mapping and Improvement, Quality Tools and Methods 1. INTRODUCTION Organization operating across different industries have processes that add core value – core processes – alongside with support processes. Organizations’ business success depends on the process quality level, and especially on quality level of core processes. In an average organization, processes are at the 3σ quality level and they make 67.000 defects per million opportunities for a defect. The cost of such a quality level is 25-40% of organization’s gross income. By improving processes, organizations can arrive at the 6σ quality level which causes only 3.4 defects per million opportunities and cost less than 1% of gross income. Economic development of a company can be achieved by embarking upon continuous process improvement, by eliminating process variations, and hidden costs. Once improved, processes should be information supported. Information support of “ill” processes leads only to a bigger trouble. Such an approach is widely accepted worldwide and Jack Welch was one of the prominent people who proclaimed that processes have to be improved first and automated only afterwards. Moreover, this paper elaborates on the concepts of process mapping, improvement, information support, and tools and methods for the quality analysis. Process mapping to be presented is based on the SIPOC model using Visual Processes .Net process modeling tool.