Introduction to BPM

Sarbashrestha Panda
August 2008
Coverage Detailed
 What is BPM
 Process Reference Models
 Process Modeling
 Notations
 Modeling Essentials (What to capture)
 KPIs
 Process Analysis
 Non Value Adding Activities (NVAs)
 FMEA/Root Cause
 Simulation (Bottlenecks, Costs, Resources fine-
tuning)
 Process Design
 Inputs to Design
 Process Design best practices
 Tools :
 BPA Vs BPMS
 Components and structure of a BPMS
 Overview of a BPA/BPM tool

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

Slide 5
What is BPM? The evolution
TQM

BPRGeneral Workflow

BPM

Interface
Layer
Web
Service
Presentation Presentation

Any Process

Process
Layer
Calculation General Workflow System and User Interactions

BPMS
AFE’s
Busines s Level
Production
Business Level

Business
Objects Objects
Invoices Anything

Layer
Rules
Business Level Business Level
Obj ects Objects
Bus iness Level Objects

Self-Generating Integration

Back end \ Systems

API API API API API API

EAI

Layer
Web SAP using MSMQ using Excel using Databases using

WFM
Service XML java com or java com jdbc

ERP

Databases

‘85 ‘90 ‘95 ‘98 ‘00 ‘05 time

Ravesteyn, 2007

Slide 6
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/

Slide 12
 Diagram Construction
 Boxes represent functions

 Arrows represent real objects or data

CONTROL

INPUT OUTPUT
FUNCTION

MECHANISM
Slide 13
Example IDEFØ Diagram
Customer
Expectations

Needs Establish Understanding of Customer Requirements

Reqmnts.
A1

Alternative Technologies Contract for Tradeoff Decisions

Design
Knowledge of Previous Design System Design
A2

Raw Material Build Product

System
A3
Analysis Methods Design Methods Fabrication Methods

Slide 14
What to capture?

Slide 15
What to capture?
 Org view
 Roles
 Responsibilities
 Locations
 Data View
 Input objects
 Output objects
 Transformations
 System View
 Rules
 Flow dependencies
 Others
 Simulation Parameters

Slide 16
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

Slide 17
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
high

BPMS
Complexity of
coordination
EAI

Application
server
low

low high
Frequency
Krafzig et al. 2005 of change
Slide 25
BPMS: Under the hoods
Web Work

Interface
Portal/

Layer
Web
Forms/ Service
Presentation
WSDL Presentation

An y Process

Process
Process
Layer
Designer
Calculation General Workflow System and User Interactions

AFE’s Production
Component Business Level Business Level
Business

Objects Objects
Inv oices Anything
Manager
Rules
Layer

Business Lev el Business Level

Obj ects Objects
Business Level Objects

Self-Generating Integration
Back end \ Systems

API API API API API API

Existing
Systems
Layer

Web SAP using MSMQ using Excel using Databases using

Service XML java com or java com jdbc

Slide 26
Thank you

contact:
[email protected]