03/02/2024

Business Process Management-

MIM1202
Dr. Umar Yahya
PhD CS & MSc. CNM (UBD, Brunei), BSc.CIT (IUT, Bangladesh)
Motion Analysis Research Laboratory (MARL)
Email: umar.academics@gmail.com Phone: 0700836936
https://marlworks.net

About the Course unit

Contact Hours / Assessment
o Contact Hours= 60 Hours
o Course work / Continuous Assessment=40%
o Final Examination=60%
o Pass Mark: 60.
Reference Texts
1) Harmon P. (2007), Business process change: a guide for business managers and BPM and
six sigma, professionals, 2nd Ed., Elsevier/Morgan Kaufmann Publishers
2) Sharp A. & McDermott P. (2009). Workflow Modeling: Tools for process improvement and
application Development 2nd Edition. Artech House, Boston | London.
3) Ralph F. Smith, "Business Process Management and the Balanced Scorecard - Using
Processes as Strategic Drivers", Published by John Wiley & Sons, Inc., Hoboken, New
Jersey, 2007.
4) Jan vom Brocke, Jan Mendling. "Business Process Management Cases. Digital Innovation
and Business Transformation in Practice", 2018
5) Mathias Kirchmer, High Performance Through Business Process Management Strategy
Execution in a Digital World, 3rd Edition, 2017.
6) Marlon Dumas · Marcello La Rosa, Jan Mendling · Hajo A. Reijers, Fundamentals of
Business Process Management, 2nd Edition, 2017
7) Jan vom Brocke, Michael Rosemann, Handbook on Business Process Management, 2nd
Edition, 2015

03/02/2024 UmarYahya2024-IUIUKC

1
 03/02/2024

THE COST OF POOR QUALITY

(COPQ)

03/02/2024 UmarYahya2024-IUIUKC

COST OF POOR QUALITY

COPQ
 What is a quality service / product?
 Serves its purpose + Defect Free
• i.e anything short of this, is a poor quality product
or service
 Examples:
o A phone that does what’s supposed to do and it is
defect free
o A procedure (process) that serves a client without
leaving a bad customer experience

03/02/2024 UmarYahya2024-IUIUKC

2
 03/02/2024

COST OF POOR QUALITY

COPQ
 You can either prevent or fix defects.
 Preventing defects is more cost-effective than trying
to fix them afterwards
 Therefore COPQ = Financial Impact of defects
 There are 4 types of quality costs: -

03/02/2024 UmarYahya2024-IUIUKC

COST OF POOR QUALITY

COPQ
 There are 4 types of quality costs: -

03/02/2024 UmarYahya2024-IUIUKC

3
 03/02/2024

COST OF POOR QUALITY

COPQ
 Popular Example of “External Failures” Cost

03/02/2024 UmarYahya2024-IUIUKC

COST OF POOR QUALITY

COPQ
 Popular Example of “External Failures” Cost

03/02/2024 UmarYahya2024-IUIUKC

4
 03/02/2024

COST OF POOR QUALITY

COPQ
 Popular Example of “External Failures” Cost

This excludes:-
- Lost future sales
- Customer loyalty
- Credit-worthy
- Brand image
- etc

03/02/2024 UmarYahya2024-IUIUKC

COST OF POOR QUALITY

COPQ
 Popular Example of “External Failures” Cost

03/02/2024 UmarYahya2024-IUIUKC

5
 03/02/2024

COST OF POOR QUALITY

COPQ
 It is important that a process is refined to avoid a
defective end product / service.
 The cost of poor quality (COPQ) is higher and
multifaceted (Iceberg) if identified after delivery of a
service / product.
 It is therefore important to focus on preventive and
appraisal measures in-order to avert internal and
external costs
 Example: What is the financial impact of an error-
prone results processing approach in a University?
o Preventive  Appraisal  Internal  External
03/02/2024 UmarYahya2024-IUIUKC

END

03/02/2024 UmarYahya2024-IUIUKC