A methodology for dynamic enterprise process performance evaluation

In order to manage enterprise businesses effectively, enterprise decision makers need to understand enterprise business processes from various perspectives using sophisticated process simulation and optimization tools. Evaluation of enterprise processes is the basis of enterprise process simulation and optimization research for business process re-engineering. This paper proposes a methodology for dynamic enterprise process performance evaluation with metric measurement models based on Activity-Based Costing and Activity-Based Management (ABC/ABM) for six types of process flows within manufacturing enterprises, including activity flow, product information flow, resource flow, cost flow, cash flow, and profit flow. The proposed methodology uses time, quality, service, cost, speed, efficiency, and importance as seven criteria. A prototype software system has been implemented to validate the proposed methodology.