Business Fundamentals

Business Fundamentals

Realistically most of the organization’s time must be devoted to keeping the business running, i.e., carrying out the value-added activities of the key business processes that fulfil the organization’s purpose. The monitoring of these day-to-day value-added activities needs to occur in all parts of the organization. This is how the process owners are able to take real-time corrective action for continuous process improvement (known by the Japanese as ‘kaizen’). These selected monitoring points are the business fundamental measures, and together they comprise the business fundamentals table.

The BFT information is collected using process performance measures that reflect the progress of individual process activities (or steps). The PPMs are placed at steps within a key process to ensure that the value-added steps of that process are indeed being performed at the correct time and rate, as well as with the required quality level. These are essentially the performance measures of the organization’s key business processes.