introduction to bpm, business process management, bpm

Introduction to BPM

Sarbashrestha PandaAugust 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.”

https://www.bpminstitute.org/articles/article/article/what-is-bpm-anyway.html

“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

Databases

Back e

nd \

Sys

tem

sLaye

r

Self-Generating Integration

SAP usingjava

API

WebService

API

Excel using com

API

MSMQ usingcom or java

API

Databases usingjdbc

API

Busin

ess

Rule

sLaye

r

Production Business Level

Objects

Business Level Objects

InvoicesBusiness Level

Objects

AFE’sBusiness Level

ObjectsAnything

Business Level Objects

Pro

cess

Laye

r

Any Process

General Workflow System and User InteractionsCalculation

Inte

rface

Laye

r

Web Service

Presentation Presentation

XML

API

Back e

nd \

Sys

tem

sLaye

r

Self-Generating Integration

SAP usingjava

API

SAP usingjava

API

WebService

API

WebService

API

Excel using com

API

Excel using com

API

MSMQ usingcom or java

API

MSMQ usingcom or java

API

Databases usingjdbc

API

Databases usingjdbc

API

Busin

ess

Rule

sLaye

r

Production Business Level

Objects

Business Level Objects

InvoicesBusiness Level

Objects

AFE’sBusiness Level

ObjectsAnything

Business Level Objects

Pro

cess

Laye

r

Any Process

General Workflow System and User InteractionsCalculation

Inte

rface

Laye

r

Web Service

PresentationPresentation PresentationPresentation

XML

API

XML

API

BPMS

TQM

General WorkflowBPR

BPM

time

ERP

WFMEAI

‘85 ‘90 ‘95 ‘05‘00‘98DatabasesDatabases

Back e

nd \

Sys

tem

sLaye

r

Self-Generating Integration

SAP usingjava

API

WebService

API

Excel using com

API

MSMQ usingcom or java

API

Databases usingjdbc

API

Busin

ess

Rule

sLaye

r

Production Business Level

Objects

Business Level Objects

InvoicesBusiness Level

Objects

AFE’sBusiness Level

ObjectsAnything

Business Level Objects

Pro

cess

Laye

r

Any Process

General Workflow System and User InteractionsCalculation

Inte

rface

Laye

r

Web Service

Presentation Presentation

XML

API

Back e

nd \

Sys

tem

sLaye

r

Self-Generating Integration

SAP usingjava

API

SAP usingjava

API

WebService

API

WebService

API

Excel using com

API

Excel using com

API

MSMQ usingcom or java

API

MSMQ usingcom or java

API

Databases usingjdbc

API

Databases usingjdbc

API

Busin

ess

Rule

sLaye

r

Production Business Level

Objects

Business Level Objects

InvoicesBusiness Level

Objects

AFE’sBusiness Level

ObjectsAnything

Business Level Objects

Pro

cess

Laye

r

Any Process

General Workflow System and User InteractionsCalculation

Inte

rface

Laye

r

Web Service

PresentationPresentation PresentationPresentation

XML

API

XML

API

BPMS

Back e

nd \

Sys

tem

sLaye

r

Self-Generating Integration

SAP usingjava

API

WebService

API

Excel using com

API

MSMQ usingcom or java

API

Databases usingjdbc

API

Busin

ess

Rule

sLaye

r

Production Business Level

Objects

Business Level Objects

InvoicesBusiness Level

Objects

AFE’sBusiness Level

ObjectsAnything

Business Level Objects

Pro

cess

Laye

r

Any Process

General Workflow System and User InteractionsCalculation

Inte

rface

Laye

r

Web Service

Presentation Presentation

XML

API

Back e

nd \

Sys

tem

sLaye

r

Self-Generating Integration

SAP usingjava

API

SAP usingjava

API

WebService

API

WebService

API

Excel using com

API

Excel using com

API

MSMQ usingcom or java

API

MSMQ usingcom or java

API

Databases usingjdbc

API

Databases usingjdbc

API

Busin

ess

Rule

sLaye

r

Production Business Level

Objects

Business Level Objects

InvoicesBusiness Level

Objects

AFE’sBusiness Level

ObjectsAnything

Business Level Objects

Pro

cess

Laye

r

Any Process

General Workflow System and User InteractionsCalculation

Inte

rface

Laye

r

Web Service

PresentationPresentation PresentationPresentation

XML

API

XML

API

BPMS

TQMTQM

General WorkflowBPR

General WorkflowBPR

BPMBPMBPM

time

ERPERP

WFMWFMEAIEAI

‘85 ‘90 ‘95 ‘05‘00‘98Ravesteyn, 2007

Process Reference Models

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

http://www.diveintobpm.org/

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

DesignSystem

A2

EstablishReqmnts.

A1

Needs

Alternative Technologies

Knowledge of Previous Design

Customer Expectations

Understanding of Customer Requirements

Contract for Tradeoff Decisions

Design

ProductRaw Material

Analysis Methods Design Methods Fabrication 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

Process Analysis

Slide 19

NVA – Non Value Added Activities Lean concepts

Muda - Waste Muri - Overburden Mura – Unevenness

FMEA Root Cause Analysis Simulation

Process Design

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

low high

high

Frequencyof change

Complexity ofcoordination

BPMS

EAI

Applicationserver

Krafzig et al. 2005

BPMS: Under the hoods

Slide 26

Back e

nd \

Sys

tem

sLaye

r

Self-Generating Integration

SAP usingjava

API

WebService

API

Excel using com

API

MSMQ usingcom or java

API

Databases usingjdbc

API

Busin

ess

Rule

sLaye

r

Production Business Level

Objects

Business Level Objects

InvoicesBusiness Level

Objects

AFE’sBusiness Level

ObjectsAnything

Business Level Objects

Pro

cess

Laye

r

Any Process

General Workflow System and User InteractionsCalculation

Process Designer

Web Work Portal/ Forms/ WSDL

Component Manager

Existing Systems

Inte

rface

Laye

r

Web Service

Presentation Presentation

XML

API

Back e

nd \

Sys

tem

sLaye

r

Self-Generating Integration

SAP usingjava

API

SAP usingjava

API

WebService

API

WebService

API

Excel using com

API

Excel using com

API

MSMQ usingcom or java

API

MSMQ usingcom or java

API

Databases usingjdbc

API

Databases usingjdbc

API

Busin

ess

Rule

sLaye

r

Production Business Level

Objects

Business Level Objects

InvoicesBusiness Level

Objects

AFE’sBusiness Level

ObjectsAnything

Business Level Objects

Pro

cess

Laye

r

Any Process

General Workflow System and User InteractionsCalculation

Process Designer

Web Work Portal/ Forms/ WSDL

Component Manager

Existing Systems

Inte

rface

Laye

r

Web Service

PresentationPresentation PresentationPresentation

XML

API

XML

API

contact: sarbashrestha@gmail.com

Thank you