Introduction to BPM

Sarbashrestha Panda August 2008

Coverage Detailed

What is BPM Process Reference Models Process Modeling

Notations Modeling Essentials (What to capture) KPIs Non Value Adding Activities (NVAs) FMEA/Root Cause Simulation (Bottlenecks, Costs, Resources fine-tuning) Inputs to Design Process Design best practices BPA Vs BPMS Components and structure of a BPMS Overview of a BPA/BPM tool

Process Analysis

Process Design

Tools :

Slide 2

What is BPM?

What is BPM

BPM is a set of processes that help organizations optimize their business performance. It is a framework for organizing, automating and analyzing business methodologies, metrics, processes and systems that drive business performance. Wikipedia The ABPMP definition of Business Process Management is:

Business Process Management (BPM) is a disciplined approach to identify, design, execute, document, monitor, control, and measure both automated and non-automated business processes to achieve consistent, targeted results consistent with an organization's strategic goals. BPM involves the deliberate, collaborative and increasingly technology-aided definition, improvement, innovation, and management of end-to-end business processes that drive business results, create value, and enable an organization to meet its business objectives with more agility.

https://www.bpminstitute.org/articles/article/article/what-is-bpm-anyway.html

Slide 4

What exactly is BPM? Is it a process, technology, or management discipline?

So, what really is Business Process Management (BPM)?

A A A A

process of managing your business processes management discipline. technology or set of technologies rapid application development framework

Slide 5

What is BPM? The evolution

General Workflow

Mana geme nt Co ncep ts

BPM

Interface Layer

Web Service
Presentation Pres entat ion

Process Layer

An y Proc ess

Calculation

General Workflow

System and User Interactions

Business Rules Layer

Inv oices Business Lev el Obj ects

AFEs Business Level Objects

BPMS
Production Busin ess Level Objects Business Level Objects

Anything Business Level Objects

IT

at no v In

Back end \ Systems Layer

i o ns

Self-Generating Integration

API

API

API

API

API

API

EAI WFM

Web Service

XML

SAP using java

MSMQ using com or java

Excel us ing com

Databases us ing jdbc

ERP

Databases

88
Ravesteyn, 2007

88

88

8888

88 time

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Process Reference Models

Process Reference Models

Slide 8

Process Reference Models SCOR

Slide 9

Process Reference Models - eTOM

Slide 10

Process Modeling

Process Mapping Basics

Mapping Techniques/ Notations

Flowcharting Activity Diagrams IDEF EPC (Event driven process charts) BPMN

http://www.diveintobpm.org/

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Diagram Construction

Boxes represent functions Arrows represent real objects or data

INPUT

FUNCTION

OUTPUT

MECHANISM
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Example IDEF Diagram

Needs

Establish Reqmnts.
A1

Understanding of Customer Requirements Requirements

Alternative Technologies Knowledge of Previous Design

Design System

Contract for Tradeoff Decisions A2 Design

Raw Material

Build System
Analysis Methods Design Methods

Product

A3

Fabrication Methods

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What to capture?

Slide 15

What to capture?

Org view

Roles Responsibilities Locations Input objects Output objects Transformations Rules Flow dependencies Simulation Parameters

Data View

System View

Others

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Key Performance Indicators

Measures Vs KPIs Types

Financial / Operational / Transactional Department Level, Process Level, Organizational Level

driven by the strategy > what gets measured gets done

Process Analysis

Process Analysis

NVA Non Value Added Activities Lean concepts

Muda - Waste Muri - Overburden Mura Unevenness

FMEA Root Cause Analysis Simulation

Slide 19

Process Design

Process Design

Inputs from

SMEs FMEAs Gap Analysis Benchmarking Best Practices

Slide 21

Process Analysis / Re-designing Workflows

Weed out the NVA Check necessity of each activity Parallelism Optimize communication Resource allocation Order task according to cost / effects

Slide 22

Tools

BPA Vs BPMS

Slide 24

When to use BPMS

BPMS Complexity of coordination EAI

low low
Krafzig et al. 2005

Application server high Frequency of change

Slide 25

BPMS: Under the hoods

Web Service
Presentation Presentation

Process Layer

An y Process

Calculation

General Workflow

System and User Interactions

Business Rules Layer

Component Manager

Inv oices Business Lev el Obj ects

AFEs Business Level Objects

Production Business Level Objects

Anything Business Level Objects

Business Level Objects

Self-Generating Integration

Back end \ Systems Layer

API

API

API

API

API

API

Existing Systems

Web Service

XML

SAP using java

MSMQ using com or java

Excel using com

Databases using jdbc

Slide 26

Advanced Topics

Process Maturity Models BPM Implementation Methodology Process Governance SOA and BPM

Slide 27

Thank you

contact: [email protected]