MIS 325 PSCJ

2  Business processes can be quite complex  Process model: any abstract representation of a process  Process-modeling tools provide a way to describe a business process so that all participants can understand the process  Advantages of process models  Graphical representations are usually easier to understand than written descriptions  Provide a good starting point for analyzing a process  Participants can design and implement improvements  Document the business process  Easier to train employees to support the business process Introduction

Flowcharting Process Models 3  Flowchart  Simplest process modeling tool  Graphical representation of a process from beginning to end  Uses a standardized set of symbols  Process mapping  Often used interchangeably with flowcharting  Specifically refers to activities occurring within an existing business process  Develops an “as-is” representation of existing processes, with a goal of exposing weaknesses that need to be addressed

Basic Flowcharting Symbols 4

Flowchart Design Steps (1)  1. Establish the system boundary. The system boundary is critical in designing a flowchart.  2. Determine column headings. Column headings should focus on areas of responsibility—usually department names, functions, or position titles.  For example, in a “purchase inventory” flowchart, column headings would include requesting departments, purchasing department, accounting department, receiving department, and vendor. 5

Flowchart Design Steps (2)  3. List actions performed within each column. In this step, list what each department does within the system. For example, the purchasing department would: (a) receive purchase requisitions from requesting departments; (b) prepare a purchase order; (c) send the original purchase order to the vendor; and (d) send copies of the purchase order to the requesting department, the accounting department, and the receiving department.  4. Select appropriate symbols.  5. Prepare a first draft.  6. Discuss the flowchart with others.  7. Revise as needed. 6

Example - Customer Invoice process The Customer Invoice process goes through the following stages:  The administrator starts an invoice by getting a list of items and their prices  The administrator calculates invoice totals from the amount of items  The administrator prints the invoice and takes it to the director for authorization  If the calculations are not OK the director returns the invoice to the administrator for corrections  If the calculations are OK the administrator delivers the invoice to the customer  The administrator checks with the customer for payment  The director confirms if payment was made. If payment was not made the administrator checks again with the customer  After confirmation of payment the administrator closes the invoice 7

Customer Invoice process flowchart YES NO START GET LIST OF ITEMS AND PRICES PRINT INVOICE DELIVER INVOICE TO CUSTOMER CHECK PAYMENT CHECK INVOICE CLOSE INVOICE CALCULATE INVOICE TOTALS END PAYMENT DONE? CALCULATION OK? MAKE PAYMENT ADMINISTRATOR CUSTOMER NO DIRECTOR YES CONFIRM PAYMENT NO

Evaluating Process Improvement 9  Disrupting the current process to make changes can be costly and time consuming  Dynamic process modeling takes a basic process flowchart and puts it into motion  Uses computer simulation techniques to facilitate the evaluation of proposed process changes  Computer simulation  Uses repeated generation of random variables that interact with a logical model of the process  Predict performance of the actual system

ERP Workflow Tools (1) 10  Workflow tools  Software programs that automate the execution of business processes and address all aspects of a process, including:  Process flow (logical steps in the business process)  People involved (the organization)  Effects (the process information)  ERP software provides a workflow management system to  monitor workflow tasks  if the tasks are not completed on time, can automatically take various actions

ERP Workflow Tools (2) 11  Workflow provides a number of useful features  Employees can track progress of workflow tasks  System can be programmed to send reminders to employee(s) responsible for a task  Workflow tools are a powerful way to improve process efficiency and effectiveness

Draw a flowchart to model a salesperson expense claim process based on the description of the following activities in order:  The salesperson completes a expense claim form after travelling  He makes a copy for his records and attaches receipts for all expenses over SAR100  The salesperson mails the claim form and receipts to the manager at the branch office  Upon receiving the application, the manager checks whether it is complete  If something is not OK with the claim form the manager mails it back to the salesperson asking for explanation, verification, or modification  If the everything is OK, the manager approves report and mails the application to accounts payable officer at the head office  The accounts payable officer at the head office records the application and makes payment 12 In-class Exercise – Expense claim process

In-class Exercise - Mail order process The Mail order process goes through the following stages:  The customer fills out order form  The customer submits order form to mail order supplier  The mail order supplier receives order and inspects it  If the information is incomplete, mail order supplier returns form to customer  If the information is complete, supplier ships goods to customer  The customer receives goods and inspects them  If goods are not acceptable, the customer complains to supplier who processes the complaint 13

In-class Exercise – Online reservation process  Model an online reservation process based on the description of the following activities in order:  A customer can select “book flight” (a 1 ).  Then he “enters dates” (a 2 ) of reservation.  The system “searches and displays available choices” (a 3 ).  He either goes back to the beginning to make changes, or proceeds by “choosing a choice” (a 4 ).  If he is an existing customer recorded in the system, he should “log in” (a 5 ) to the system, and then he can either “confirm an existing credit card” (a 7 ) recorded in the system, or “enter credit card information” (a 6 ) of a new card.  If he is a new customer, he should “register” (a 8 ) and then “enter credit card information” (a 9 ) of a new card.  Finally, he “places the order” (a 10 ) of reservation. 14