Simulation of e-business processes

1. Simulation of e-business processes Pável Albores Peter D. Ball Jillian MacBryde

2. Agenda • Project Aims/Plan • Project Framework • Levels of BPS • Case Studies • Results so far • Conclusions and Future Work

3. Project aims • To investigate the suitability of simulation as a technique to analyse the effects that e-business has on the business processes of manufacturing companies. • To look at the differences between traditional and e-business processes for different e-business scenarios in the manufacturing sector. • To develop the methodology for the use of these tools and techniques.

4. Research questions • Is simulation suitable as a tool to analyse the effect of e-business implementation in the business processes of manufacturing companies. • Can differences be identified between traditional business process models (e.g. Childe et al) and electronic business processes? • If there are differences, can reusable simulation templates be derived from these differences? • What are the limitations, scope and range of applicability of these templates? • What methodology must be followed when using simulation in this context?

5. Research Approach • Research Methodology • Case Study • Action Research • Survey • Modelling methodology • Simulation (General purpose tool) • Interviews • ERP system data

7. Contributions • Use of simulation in a new context • Description of e-process dynamics • Methods and procedures for integration of tools and techniques

8. 1 4 3 5 2 Conceptual Business process simulation Manufacturing systems simulation Process Specific simulation Enterprise-wide simulation Supply-chain-wide Simulation Levels of BPS application

9. Mineral Water Co. Label Co. Generic Business Process models Operate Processes

10. Label Case Study • Label Manufacturer • Make to Order • Approx. 65 employees • The interest of the company in e-business is in looking for a way to reduce the lead time for enquiry/order processing. • The objective is to reduce it from a current maximum of 9 days to a maximum of 3 day

11. Label Process Map

12. Benefits identified • If full e-business implementation is carried out, a reduction of 15 % in processing time in the first part of the process could be achieved.

13. Results so far… • Not what expected: • Business process structure does not change • Change in the how, not the what. • Little questioning about the why. • but • Change in dynamics (<time, <human involvement, < redundancy) • Change in performance metrics (>reliability, > quality of information)

14. Conclusions • At this level of detail the generic process configuration remains unchanged. • However, the process behaviour will change. Simulation captures this. • Simulation proved to be useful for the analysis of e-business implementation –highlighting potential benefits/problems. • Level of detail is important to derive generic e-business processes.

15. Future Work • E-business survey • Has the implementation of e-business changed the structure of your business processes? • In-depth interviews • Which (and how) business processes have been affected by e-business implementation? • Theoretical templates development • Further case studies

16. Questions? Pavel Albores pavel.albores@strath.ac.uk http://www.dmem.strath.ac.uk/csm/pavel

17. E-process templates

18. General Purpose Arena Witness Simul8 Extend ServiceModel Ithink Business process Work Flow Modeler Simprocess Process Charter Igrafx Processmodel Showflow Evaluated Simulation Tools

19. Performance Measurement • “...is the process of quantifyingpurposeful action where the process of quantification is measurement and purposeful action equates with performance”. Neely et al (1996) • Quantification and comparison  simulation model. • Finding the "purposeful actions" business process management.