Process performance indicators for measuring Order to Cash process
Muurinen, Alina (2020)
Muurinen, Alina
2020
All rights reserved. This publication is copyrighted. You may download, display and print it for Your own personal use. Commercial use is prohibited.
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2020122830013
https://urn.fi/URN:NBN:fi:amk-2020122830013
Tiivistelmä
Processes are at the center of competition. They form a significant portion of organizational costs and managing them offers significant opportunities for improving managerial decision making, performance, customer satisfaction, and ultimately improving market share. One of the key dimensions facilitating a company’s transformation into a process-oriented is process performance indicators. Despite the fact that business processes have been the subject of formal study for a long time, existing performance measurement models tend to give little guidance on how business process performance indicators can be chosen and operationalized. This study enhances the literature which is focused on the design and development of process performance measurement systems but lacking attention to the actual measures. This Master thesis is executed as a case study with focus on the OTC process of a manufacturing company. The research questions are what process performance indicators of OTC process can be used to measure the as-is end-to-end process, and how these indicators could be applied for process performance benchmarking. After a literature review on existing process performance measurement frameworks, the Devil’s quadrangle is selected as research framework. The study results in a list of concrete process performance indicators covering four performance dimensions: time, quality, cost, and flexibility. Recommendations on how the process performance can be benchmarked based on the Devil’s quadrangle framework are also provided. One of the limitations of this research is related to significant process performance indicators. It was not proven mathematically that the selected indicators can significantly predict the OTC process performance, therefore it is challenging to evaluate whether there would have been other significant predictors. Another limitation is that the process performance indicators are OTC process specific and cannot be applied to evaluate performance of other process types.