BP - CIS : Business Processes

Transcription

1 Meltem Özturan 1 Basics of Business Process Improvement (BPI) The new business process design is supposed to provide a process; with less number of errors with less waiting times that is easier to implement with more focus on changing needs of the customer with more competitive power. 2 1

2 Basics of BPI Business process improvement is to reorganize the business processes so as to improve their effectiveness, efficiency and flexibility. The objectives are to improve: Effectiveness: Does the process produce the desired results and meet the customer s needs? Does the process produce what the customers want? Efficiency: Does the process minimize the use of resources and eliminate bureaucracy? Can the responsible employees use the process easily? Adaptability: Is the process flexible in the face of changing needs? Can the process be easily modified on the basis of changing business requirements? 3 BPI Life Cycle Determining the process to be improved Investigating and reporting Search for alternatives for improvement Design of an improved process Implementationof the improved process Evaluation Reporting 4 2

3 Choosing the Business Process to be Improved The processes to be improved initially are identified by considering the followings: Changes in the competitive environment Complaints of the external/internal customer Advances in new technologies Existence of relatively long and costly processes Low performance processes as compared to benchmarks Existence of processes with a high gap. 5 Techniques for BPI Process improvement starts by identifying a KPI to be improved and/or optimized. From a systemic and analytical approach, these KPI s are improved either by changing the process model or by changing the level of a set of decision (or control) variables. Most common KPI s are related to Duration Cost Quantity 6 3

4 Techniques for BPI Process improvement starts by identifying a KPI to be improved and/or optimized. From a systemic and analytical approach, these KPI s are improved either by changing the process model or by changing the level of a set of decision (or control) variables. Most common KPI s are related to Duration Cost Quantity 7 Techniques for BPI Changing the Business Process Model After the business process model is executed; if the model behaves as expected, the project can proceed with development and deployment. If not, change in the process model may eliminate the bottlenecks or other factors that do not measure up to expectations. Major techniques for model changing: Eliminating Outsourcing Merging Paralellization 8 4

5 Techniques for BPI Changing the Business Process Model Activity 2 Activity 3 ELIMINATING Activity 1 Activity 4 Activity 5 Activity 6 Advantages Savings in time and cost Decreased complexity Attention Output quality should not be lowered Output should be the same 9 Techniques for BPI Changing the Business Process Model Activity 2 OUTSOURCING Activity 2 Activity 3 Activity 1 Activity 4 Activity 5 Activity 6 Advantages Focus on core competencies Lower fixed costs Higher quality Attention Control and management problems Risk of lower quality Outsource might quit the agreement Risk of information sharing 10 5

6 Techniques for BPI Changing the Business Process Model Activity Activity Activity 3 MERGING Activity 1 Activity 4 Activity 5 Activity 6 Advantages Savings in time and cost Inceased motivation Attention Control and management problems 11 Techniques for BPI Changing the Business Process Model Activity 2 Activity Activity 2 3 PARALELLIZATION Activity 1 Activity 3 Activity 5 Activity 6 Activity 4 Advantages Shorter process durations Shorter waiting times Attention Need for extra personnel Need for extra location 12 6

7 Techniques for BPI Changing the Decision Variables Levels Inputs are the predefined parameters of the system. These parameters may be introduced by the customers, or obtained from the internal system. Decision Variables are the inputs that are controlled by the decision maker. Their levels may or may not be set optimally depending on the decision maker s management concerns. Outputs are in the form of goods, services that leads to a value creation. Quality of the outputs are directly related to the quality of the process that is measured by KPI s. 13 Techniques for BPI Changing the Decision Variables Levels INPUTS Uncontrollable Inputs Parameters (Probability Distributions Controllable Inputs Decision Variables OR Control Variables BUSINESS PROCESS MODEL OUTPUTS Performance Measures KPI s OR Objectives OR Goals If the value of the decision variables are determined optimally, the performance of the modelled work flow is optimized in terms of the chosen KPI s. But this does not ensure that the workflow itself is optimal! 14 7

8 Techniques for BPI Changing the Decision Variables Levels 15 CourseWork Consider the registration process that you have modelled. 1) Think about the reasons that give way to process improvement. Give two example problems for each of these reasons. 2) Propose an improvement for each of these problems by identifying the improvement technique that you use. 16 8

9 Business Process Management (BPM) BPM is the achievement of organization s objectives through the improvement, management and control of essential business processes. Achievement: Realizing the strategic objectives as outlined in the organizations strategic plan. Organization: Refers to an enterprise or parts of an enterprise; a discrete business unit. 17 Business Process Management (BPM) Objectives: Range from strategic goals of the organization to the individual process goals. BPM is not an objective in itself; rather a means to achieving an objective. Improvement: Making the business processes more efficient, effective and flexible. Management: Performance management of the process and people. Control: Managing the end-to-end business processes that involves full cycle of Plan-Do-Check-Act. 18 9

10 Business Process Management (BPM) Objectives: Range from strategic goals of the organization to the individual process goals. BPM is not an objective in itself; rather a means to achieving an objective. Improvement: Making the business processes more efficient, effective and flexible. Management: Performance management of the process and people. Control: Managing the end-to-end business processes that involves full cycle of Plan-Do-Check-Act. 19 BPM Tools BPM tools provide the capability of optimizing outputs of business process management lifecycle. It provides process modeling, execution, monitoring, and optimization

11 BPM BPM is; More than just a software More than just improving and reengineering your processes - it also deals with managerial issues. Not just hype - it is an integral part of management More than just modeling - it is also about the implementation and execution of these processes, which requires analysis. 21 BPM BPM is not; Just process reengineering Based on perceptions it uses real data Focused on a component it has an holistic approach An individual task includes all staff in the organization A departmental task includes all departments in the organization 22 11

12 BPM and Iceberg Sendrome Theoretical analysis which takes quite a long time is the small portion of the iceberg. Fear/courage Cultural differences Sympathy/Antipathy Tabus Unwritten rules Conflicts of benefits Resistance to change Irrational behaviors The success of the real implementation and achievement of the business benefits depend on the organizational change management and control of the impacts on the people. 23 BPM and Resistance to Change Main types of resistance are; Reject the problem: There is no such problem! Reject the significance of the problem: There is a problem but it can be ignored! Reject the solvability of the problem: There is a problem, it is significant, but has no solution! Reject his role in the solution of the problem: There is a problem, it is significant, it has solution, but I do not have the authority to solve it

13 CourseWork Consider the changes you have suggested to improve... process that you have modelled. Think about the behaviors of different stakeholders you may face related to the changes you have suggested