Process performance is important for efficiency which hits the bottom-line of the business. There are two aspects of process performance that you need to pay attention to.
First, throughput. It is the volume of transaction you process per input unit. The transaction could be new account application, bill payment, or customer inquiry. The input unit could be time, or headcount. Measuring throughput provides information on capacity, which allows you assess resource level, adequacy of the skills and tools to do the work.
Second, cycle time. This is the elapse time from the start of the process to the end. The cycle time is indicative of how well the process is functioning. Too many steps increases the cycle time. Handoffs between workers within a group and across departments adds waiting time. Often, measurements focus on what’s happening within a working area and neglect the effects of cross-departmental delays. The essence is monitoring the end-to-end cycle time.
So throughput and cycle time are two important measures you want to monitor for processes.
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