Introduction to BPM

1. Introduction to BPM Sarbashrestha Panda August 2008

2. 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

3. What is BPM?

4. 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

5. “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

6. What is BPM? The evolution Ravesteyn, 2007

7. Process Reference Models

8. Process Reference Models

9. Process Reference Models –SCOR

10. Process Reference Models - eTOM

11. Process Modeling

12. Process Mapping Basics • Mapping Techniques/ Notations • Flowcharting • Activity Diagrams • IDEF • EPC (Event driven process charts) • BPMN • http://www.diveintobpm.org/

13. CONTROL INPUT OUTPUT FUNCTION MECHANISM Diagram Construction • Boxes represent functions • Arrows represent real objects or data

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

15. What to capture?

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

17. 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

18. Process Analysis

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

20. Process Design

21. Process Design • Inputs from • SMEs • FMEAs • Gap Analysis • Benchmarking • Best Practices

22. 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

23. Tools

24. BPA Vs BPMS

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

26. BPMS: Under the hoods

27. Thank you contact: sarbashrestha@gmail.com