Methods and Tools for BPR

1. Methods and Tools for BPR • An Integrated Framework for Methods and Tools for BPR • Process Modeling Methods and Tools • IDEF0: Notation, Technique, Tools, & Analysis • Functional Flowchart • Activity-Based Costing • Supporting Technologies for BPR Activities • Groupware • Process Simulation • Organization Modeling Tools

2. A Framework of Integrating Methods & Tools for BPR cost and performance data compared to the baseline Analyze the activity costs of the process activity cost data ABC Tool (IDEFCost, Easy ABC) information of a process Elicit semi-formal process and data models Construct/ revise static business process models performance data Analyze the dynamics of the process semi-formal process model Pro. Modeling Tools (IDEFine, BDF, Design/IDEF) Simulation Tool (SIMPROCESS, iThink) Target information system generated Model Elicitation Tools (GroupSystems V) finalized process model Construct formal IS models & generate information systems Construct/ revise business data models semi-formal data model Data Modeling Tools (ERWin, BDF) CASE & Workflow Mgmt. Tools (IEF, ADW)

3. Standard Flowchart Symbols Annotation Activity Delay Direction of process flow Storage Movement/ Transportation Transmission Connector Decision Point Begin/End Paper document

4. Functional Flowchart (Process Mapping) PROCESS ACTIVITY CYCLE Credit Checking Customer Service Customer Shipping Inventory · · 2 1 1 1 1 2 0.1 4 3 0.2 1 4 ... ... ... Enter Order Check Credit Begin No Yes Order Processing Update Inventory Wait for shipping Ship order End

5. TeamFlow from CMF at www.teamflow.com

6. IDEF0 Notations Order processing policy Work schedule Process Order Customer order Processed order Order processing system Order processing clerks Legends Controls Outputs Function Inputs Mechanism

7. Process Modeling for BPR • Controls • Constraints • Specifications • Schedules • Inputs: • Materials • Information • Suppliers • Requirements Process 1. Entry Conditions 2. Exit Conditions 3. Decomposition • Outputs: • Materials • Information • Customers • Satisfiers • Mechanism • Systems • Personnel • Resources • Infrastructures • Costs

8. ICOM in IDEF0 The ICOM of a function represents certain system principles: Inputs are transformed into outputs, controls constrain or dictate under what conditions transformations occur, and mechanisms describe how the function is accomplished. An IDEF0 box and its ICOM can be described as: "Inputs are transformed by the function into outputs according to controls, using mechanisms." C O I M

9. Definition of ICOM • Input: Describe resources or data that are needed to perform the function and are transformed by the function into outputs. • Control: Describe the conditions, rules, procedures, or circumstances that govern the execution of the function. An arrow is a control unless it obviously serves only as input. Each function should have at least one control arrow. Most of controls are in the form of data. • Output: The data or objects produced when the function is performed. • Mechanism: Define the supporting mechanisms that carry out the function. A mechanism may be a person, an organizational unit, a physical device, or a computer program.

10. An Example of an IDEF0 Diagram Detected or suspected malfunction, or Item is scheduled for bench-check In-service asset Replaced asset Remove & Replace 1 Man-hour standards and personnel availability Spare Repairable Status records asset asset Schedule into Shop 2 Asset (before Inspect repair) or Repair Replacement 3 or original Completed Asset Assets (repaired) asset (after awaiting Monitor repair) parts & Route 4 Spare or NRTS NODE: TITLE: NUMBER: pg. 4-5 AØF Maintain Repairable Spares (FEO) Source: Integrated Computer-Aided Manufacturing (ICAM): Functional Modeling Manual (IDEF0), June 1981, p. 4-5.

11. IDEF0 Diagrams as Constraint Diagrams Function A Function B Function C

12. IDEF0 Model Structure C1 I1 O1 I2 A-0 GENERAL C1 I1 1 I2 2 Abstraction 3 O1 4 A0 1 The diagram A0 is the "parent" of the diagram A4. 2 3 Refinement A4 1 2 DETAILED 3 A42

13. Node Tree Manufacture Product • A1 • Plan for Manufacture A11 Assume a Structure and Method of Manufacturing A12 Estimate Requirements, Cost, Time to Produce A14 Develop Support Activities Plan A13 Develop Production Plans

14. Node Index A0 Manufacture Product A1 Plan for Manufacture A11 Assume a Structure and Method of Manufacture A12 Estimate Requirements, Cost, Time to Produce A13 Develop Production Plans A14 Develop Support Activities Plan A2 .......

15. ICOM Balancing: The Match Must Be Complete and Consistent Parent Diagram 1 This arrow is a control from the parent Parent Box 2 3 Detail Diagram This arrow continue on the parent 1 2 3 This arrow is an input from the parent

16. ICOM Codes Are Written on the Detail Diagram C1 C3 C2 1 O1 I1 2 I2 O2 This is C2 below This is C3 below ICOM code must be written at the unconnected ends of all boundary arrows except for A-0 diagram and on tunneled arrows. This is C1 below This is I1 below This is O1 below Box of Parent to be Detailed This is I2 below This is O2 below 3

17. Tunneled Arrows ( ) Tunneling an arrow where it connects to a box indicates that the data conveyed is not necessary at the next level of decomposition. ( ) ( ) ( ) Tunneled Arrows at Connected Ends ( ) Tunneling an arrow at the unconnected end indicates that the data conveyed is not relevant to or supplied by the parent diagram. ( ) ( ) ( ) Tunneled Arrows at Unconnected Ends

18. Tunneled Arrows and ICOM Codes corporate Control will not be shown on detail diagram policy ( ) This arrow is still labeled as C3 A0 PARENT DIAGRAM C1 C3 status report to Output not shown on parent diagram controller's office I1 ( ) O1 A2 DETAIL DIAGRAM

19. Attributes of Processes • Basic • Name • Description • Author • Audit trails • Performance data • Importance: Core, Critical, Strategic • Value Added: Business, Customer, None • Cycle time: Mean, Variance, and Distribution • Cost/Unit

20. Process Evaluation • Eliminate • Simplify • Combine • Make them concurrent • Automate • Create value-adding processes

21. Adding Value, Not Cost and Time

22. Inputs Evaluation • Type: Data, Material • Performance: • Quality • Cost/Unit: include cost of processing purchase order, shipping cost, cost of the inputs, and inventory cost. • Delivery timeliness • Volume: Average and peak • Reduce the cost of inputs. • Alternative sources of inputs. • Ensure timeliness of inputs delivery.

23. Controls Evaluation • Relocate or retime controls • Reduce unnecessary controls • Embed controls as part of the process • Let the workers who perform the process conduct the checking. • Improve the procedures and guidelines of the process. • Empower workers to learn and think and give them authority to make decision to make changes and improvements

24. Mechanism Evaluation • Who should perform the process? • Are tools used for performing the process adequate? • What are emerging and matured techniques, tools, and information technologies that may help the improvement of process productivity or effectiveness? • What is the cost of the resources in employing the mechanism? Are there alternatives? • Are there adequate training programs for employees in using tools and methods?