Introduction to BPM Sarbashrestha Panda August 2008

Coverage Detailed Slide 2  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

What is BPM?

What is BPM Slide 4  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.” 

“What exactly is BPM? Is it a process, technology, or management discipline?” Slide 5  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

What is BPM? The evolution Slide 6 Ravesteyn, 2007

Process Reference Models

Slide 8

Process Reference Models –SCOR Slide 9

Process Reference Models - eTOM Slide 10

Process Modeling

Process Mapping Basics Slide 12  Mapping Techniques/ Notations  Flowcharting  Activity Diagrams  IDEF  EPC (Event driven process charts)  BPMN 

Diagram Construction Slide 13  Boxes represent functions  Arrows represent real objects or data FUNCTION CONTROL OUTPUTINPUT MECHANISM

Example IDEFØ Diagram Slide 14 Build System A3 Design System A2 Establish Reqmnts. A1 Needs Alternative Technologies Knowledge of Previous Design Customer Expectations Understanding of Customer Requirements Requirements Contract for Tradeoff Decisions Design Product Raw Material Analysis MethodsDesign MethodsFabrication Methods

What to capture? Slide 15

What to capture? Slide 16  Org view  Roles  Responsibilities  Locations  Data View  Input objects  Output objects  Transformations  System View  Rules  Flow dependencies  Others  Simulation Parameters

Key Performance Indicators Slide 17  Measures Vs KPIs  Types  Financial / Operational / Transactional  Department Level, Process Level, Organizational Level driven by the strategy > what gets measured gets done

Process Analysis

Slide 19  NVA – Non Value Added Activities  Lean concepts  Muda - Waste  Muri - Overburden  Mura – Unevenness  FMEA  Root Cause Analysis  Simulation

Process Design

Slide 21  Inputs from  SMEs  FMEAs  Gap Analysis  Benchmarking  Best Practices

Process Analysis / Re-designing Workflows Slide 22  Weed out the NVA  Check necessity of each activity  Parallelism  Optimize communication  Resource allocation  Order task according to cost / effects

Tools

BPA Vs BPMS Slide 24

When to use BPMS Slide 25 low high Frequency of change Complexity of coordination BPMS EAI Application server Krafzig et al. 2005

BPMS: Under the hoods Slide 26

Advanced Topics Slide 27  Process Maturity Models  BPM Implementation Methodology  Process Governance  SOA and BPM

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