Business Process Management

Transcription

1 Business Process Management Paolo Bottoni Lecture 1: Introduction Adapted from the slides for the book : Dumas, La Rosa, Mendling & Reijers: Fundamentals of Business Process Management, Springer

2 Objective of the course To introduce the principles and methods of Business Process Management To help achieve familiarity with: Formal models for Business Process Business Process Modeling Notation Workflow languages and patterns Petri nets Modeling tools Based on BMPN Signavio Eclipse WebRatio Based on YAWL Petri Nets 2

3 Structure of the course Lectures covering: Principles of BPM Process Modeling Using BPMN Process Analysis (Qualitative and Quantitative) Process Automation Process Monitoring and Mining Team Project 3

4 Structure of the assessment Project Definition of business process model Exam Discussion on the project Formal topics 4

5 Readings and Resources Course material posted on course Twiki page Suggested textbooks Dumas, La Rosa, Mendling & Reijers: Fundamentals of Business Process Management, Springer 2013 Weske: Business Process Management. Concepts, Languages, Architectures, Springer 2012 van der Aalst, Van Hee, Workflow Management: Models, Methods, and Systems, MIT Press, 2004 Jeston, Nelis, Business Process Management. Practical Guidelines to Successful Implementations, Butterworth- Heinemann,

6 What is a (Business) Process? Collection of related events, activities (tasks) and decisions, that involve a number of actors and resources, and that collectively lead to an outcome that is of value to an organization or its customers. Examples: Quote-to-Order Order-to-Cash Procure-to-Pay Application-to-Approval Claim-to-Settlement Fault-to-Resolution (Issue-to-Resolution) 6

7 VALUE My washing machine won t work! Call Centre Technician Warranty? Customer Service Dispatch Parts Store Customer Michael Rosemann fault-report-to-resolution process Business Process Management Lesson1Introduction 7

8 Processes and Outcomes Every process leads to one or several outcomes, positive or negative Positive outcomes deliver value Negative outcomes reduce value Fault-to-resolution process Fault repaired without technician intervention Fault repaired with minor technician intervention Fault repaired and fully covered by warranty Fault repaired and partly covered by warranty Fault repaired but not covered by warranty Fault not repaired (customer withdrew request) 8

9 What is a Business Process: Recap 9

10 BPM: What is it? Body of principles, methods and tools to design, analyze, execute and monitor business processes In this course, we will focus on BPM based on process models. 10

11 Why BPM? The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency. 11

12 Why BPM? Information Technology Yields Business Value Enables Process Change Yields Index Group (1982) 12

13 How to engage in BPM? Continuous Process Improvement (CPI) Does not question the current process structure Seeks to identify issues and resolve them incrementally, one step at a time and one fix at a time Business Process Re-Engineering (BPR) Puts into question the fundamental assumptions and principles of the existing process structure Aims to achieve breakthrough, for example by removing costly tasks that do not directly add value Business Process Management Lesson1Introduction 13

14 The Ford Case Study (Hammer 1990) Ford needed to review its procurement process to: Do it cheaper (cut costs) Do it faster (reduce turnaround times) Do it better (reduce error rates) Accounts payable in North America alone employed > 500 people and turnaround times for processing POs and invoices was in the order of weeks 14

15 The Ford Case Study Automation would bring some improvement (20% improvement) But Ford decided not to do it Why? a) Because at the time, the technology needed to automate the process was not yet available. b) Because nobody at Ford knew how to develop the technology needed to automate the process. c) Because there were not enough computers and computer-literate employees at Ford. d) None of the above 15

16 The correct answer is Mazda s Accounts Payable Department Business Process Management Lesson1Introduction 16

17 How the process worked? ( as is ) 17

18 How the process worked? ( as is ) Business Process Management Lesson1Introduction 18

19 How the process worked? ( as is ) Business Process Management Lesson1Introduction 19

20 How the process worked? ( as is ) Business Process Management Lesson1Introduction 20

21 How the process worked? ( as is ) Business Process Management Lesson1Introduction 21

22 How the process worked? ( as is ) Business Process Management Lesson1Introduction 22

23 Summing up Business Process Management Lesson1Introduction 23

24 Reengineering Process ( to be ) Business Process Management Lesson1Introduction 24

25 Reengineering Process ( to be ) Business Process Management Lesson1Introduction 25

26 Reengineering Process ( to be ) Business Process Management Lesson1Introduction 26

27 Reengineering Process ( to be ) Business Process Management Lesson1Introduction 27

28 Reengineering Process ( to be ) Business Process Management Lesson1Introduction 28

29 Reengineering Process ( to be ) Business Process Management Lesson1Introduction 29

30 Summing up Business Process Management Lesson1Introduction 30

31 The result 75% reduction in head count Material control is simpler and financial information is more accurate Purchase requisition is faster Less overdue payments Why automate something we don t need to do? Automate things that need to be done. 31

32 How to engage in BPM? 1. Process identification and opportunity assessment 2. Process discovery (as-is) 3. Process analysis 4. Process re-design (to-be) 5. Process implementation 6. Process monitoring/controlling Process Modeling Tools Process Management Systems Business Process Management Lesson1Introduction 32

33 Process Identification Core processes Support processes Management processes Quote handling Product delivery Invoice handling Detailed quote handling process 33

34 Phase 1: Performance Measure Identification and Selection Cost Cost per execution Time Cycle time Quality Error rates Resource utilization Waiting time SLA violations Waste Non-valueadding time Customer feedback 34

35 Phase 2: Process Discovery 35

36 Phase 3: Analysis Qualitative analysis Root-cause analysis PICK charts (Possible, Implement, Challenge and Kill) Issue register Quantitative Analysis Flow analysis Queuing analysis Process simulation 36

37 Issue Register Issue No. Short Description Issue Explanation Broad Consequence Assumptions Impact 2 Information regarding units does not match Units in Relocation system do not match information provided by... Wrongly calculated entitlements cause manual calculation... 5% of cases go to the wrong queue, 5 minutes to sort queue and redirect. 5% recalculating on average 10 minutes per calculation. 28,000x0.05x1 5 = 21,000 minutes 350 hours/ hrs 9.5 working days 5 Protected/ Mandatory data entry fields Not all fields in data entry forms are relevant but mandatory. So "fuzzy" information is entered Resource intensive, incorrect data. Cases in Clarify need to physically be closed. 5% of cases taking 2 minutes to locate and close. 5% of relocations requiring entry that is not needed taking 30 minutes each. 28,000x0.05x3 2 = 44,800 minutes 477 hours/ hrs 20 working days 11 Information on posting orders Time consuming to sort through posting orders to identify relocations... MBR does not get Info pack therefore cannot process move. More information could be provided which could be used later in process... Only 1/3 rd of postings and CIPC s are entitled to relocation relocations then sorting through postings. 3 to 4 minutes on average to sort through each. 84,000x3.5 = 294,000 min/60/7.5 = 653 days /250 working days in year FTE Michael Rosemann 37

38 Simulation / What-If Analysis 10 applications per hour Poisson arrival process (negative exponential) Receive info Request info No accept Deliver card Start Receive review request Check for completeness complete? Yes 0.7 Perform checks reviiew Make decision 0.2 Decide 0.5 reject Notify acceptance Notify rejection 0.8 Time out review request End Task Role Execution Time (mean, dev.) Receive application system 0 0 Check completeness Clerk 30 mins 10 mins Perform checks Clerk 2 hours 1 hour Request info system 1 min 0 38

39 Simulation output: KPIs Resource Cost 4, , % 90.00% 3, % 3, % 2, % 2, % 1, % 1, % % % 0.00% $ # PI's 18.82% Resource Utilization $ 4, Cycle Time - Histogram 50.34% $ Clerk Manager 5.04% System 2 Clerk 0 Manager System Days 39

40 Phase 4: Process Re-Design Costs Time Flexibility Quality 40

41 Phases 5-6. When technology Kicks in.. 41

42 Life cycle of Business Information Systems Business Process Management Lesson1Introduction 42

43 Evolution of Enterprise Applications Business Process Management Lesson1Introduction 43

44 Process Execution Engines BPMN-based BizAgi Activiti Progress Savvion BPEL-based Oracle SOA Suite ActiveVOS BPM IBM BPM Microsoft BizTalk Windows Workflow Foundation Business Process Management Lesson1Introduction 44

45 Next Lecture Introduction to Process Modeling 45

46 BPMBottoni Business Process Management Lesson1Introduction 46