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ABPMPFEBRUARY 20139:00 a.m. Arrival and networking 9:15 a.m. General Announcements –

Chapter Officers Updates9:30 a.m. Feature Presentation & Facilitated Discussion

"Best Practices in Process Modeling" -Laura Graham

11:30 a.m. Networking12:00 p.m. Adjourn

05/09/2023

PROCESS MODELING AND ANALYSISBEST PRACTICES

• TYPES OF PROCESS MODELS • MODELING NOTATIONS FOR BUSINESS PROCESS DIAGRAMS• APPROACHES TO PROCESS MODELING• USING THE SCIENCE OF BPMN FOR

BETTER BUSINESS PROCESS MODELING AND ANALYSIS • ESTABLISHING CORPORATE BEST PRACTICES AND PROCESS MODELING STANDARDS

PROCESS MODELING AND ANALYSIS BEST PRACTICESLAURA GRAHAM

VICE PRESIDENT, ENTERPRISE PRODUCT GROUPBPM PRODUCT DEVELOPER

INTRODUCTIONSName, title, company

What do you enjoy doing on weekends

What is your favorite sound, word, or phrase

What process modeling tools, BPMS, or workflow applications does your organization use

THE EVOLUTION OF LAURA GRAHAMIndustrial Engineering Six SigmaOperations ManagementProcess ManagementBusiness Process Management

Source: BPM Common Body of Knowledge – Association of BPM Professionals

Software

WHAT IS BPMIs a management discipline enabled by technology

• Continuously monitor and improve business process

• Performance• Visibility• Agility

• Facilitate business innovation• Addresses end to end work

• Delivers value to customer • Distinguishes between

processes, sub-processes, activities, and functions

Requires organizational commitment

PROCESS INNOVATION: LED BY BUSINESS OR IT?

BUSINESS PROCESS MANAGEMENTSUPPORTING TECHNOLOGIES

Business Process Analysis• Modeling: Graphically represent process for analysis• Simulation: Plays what-if scenarios

Business Intelligence (BI)Metrics, information from historical viewpoint

Business Activity Monitoring (BAM)Metrics, information on what’s happening now

Workflow: Automates hand-offs in a manual process

Business Rules Management systems: Makes business rules accessible to business rather than buried in IT code within applications

Business Process Management Suites (BPMS): Supports all aspects of process improvement: includes all of the above plus IT service oriented architecture (SOA)

ONE JOURNEY TOWARDS A BUSINESS PROCESS COMPETENCY CENTER1. Define modeling standards2. Communicate and train3. Establish repository4. Adopt standard improvement

methods5. Formalize competency center6. Add to the tool kit7. Manage re-usable process

service

PROCESS MAPPINGWHY PROCESS MAP

TYPES OF PROCESS MAPSWHY STANDARD NOTATIONAPPROACHES TO MODELING

WHY PROCESS MAPExternal Requirements:

• ISO: Process exists and management for ensuring it is followed and for improving process metrics

• SOX: “Management understands the process, including the IT hand-offs, well enough to understand the point at which a mis-statement could arise” [and works to reduce those risks]

• Other external auditors

Internal Benefits:• Training of new employees• Prioritization and alignment of improvement initiatives – help build the business case• Scope improvement projects – develop project milestones vs. capital appropriate needs

Just because a process isn’t formalized or mappeddoesn’t mean one doesn’t exist

If there is not a clear process, there are usually un-intended consequences

WHAT IS A PROCESS?Process:

• Series of activities that transform something (an input) into something else (output)

• Means of delivering customer value• Living entity that changes over time

Three types:• Operational (or executional)

• Primary / Core • Support

• Managerial (governance)• Planning (strategy)

PROCESS DOCUMENTATIONDiagram (Hand drawn directions)

• Major activities• Overall flow

Map (Google maps)• Provides relationship to other process elements:

• Performers, events, resourcesModel (DoT program for traffic / new light analysis)

• Enables simulation• Requires data gathering and precise details• May consist of multiple documentation types

• Process flows• Process metrics• Data models

TYPES OF PROCESS MAPS – BUSINESS ANALYSIS

Diagram When to UseSIPOC(Supplier, Inputs, Process, Outputs Customer)

High level – identify scope of process, identify sub-processesShow customer / supplier perspectiveCycle time is not important

Value Stream Mapping Typically used for logistics, supply chain, service oriented processesSingle flow processesIdentify waste (non-value add)Data on process metrics available

Business Process (Flow Diagram or Activity Diagram)

Improving business processes: reduce non-value add

Business Process Flow Diagram with Swim Lanes

Improving business processes: reduce non-value addWhen more than one group is responsible for different parts of processWhen responsibilities change / organization alignment needed

Choreography / Collaboration High level, end to end process analysisManaging white space between processesDepicts how processes relate to each other – through messages, or data

TYPES OF ‘PROCESS MAPS’ – SYSTEMS ANALYSISDiagram When to Use

Systems DiagramsData Flow

Systems analysis or data managementDepicts flow of data within systems, where data inputs and outputs occurOrder, sequence of flow, cycle time is not important

State Diagrams Used in systems analysisDepicts behavior of a system, particularly in response to external events

Class Diagram Used in object oriented system designDepicts relationship of objects within a systemRepresents main business objects and/or interactions in a system

Use Case When a system is being designedDepicts who can do what with a system, how system responds Testing of systems is needed

Entity Relationship Diagram When a system or database is being designedDepicts database schema

Insert PowerPoint Presentation Name Here

Software should be a tool to help users do their job better. This requires that we work hard to understand their job. We need to gain understanding beyond the tasks they must complete and instead strive to understand their goals… Replacing a file cabinet with a computerized file cabinet is not application development, it's called shifting the burden. – Joseph Reddy

“If business processes don’t change when new technology is installed, the investment has less value.” - Ross, Weill, Roberston

WHAT IS ON A PROCESS MAP?ActivitiesDecisionsDependenciesMilestonesErrorsPerformersSystems / ToolsInputs / outputsMetrics

05/09/2023

The modeler makes decisions about the purpose of the model

The interpretation of the model is always up to the reader

All models need to contain a certain amount of rigor to be meaningful

APPROACHES TO PROCESS MODELING When do you model as-is vs. go straight to the to be?

CAPTURING THE “AS IS”Approach Description When to Use

Top Down Start at high level overview of processesDrill down into detail

Scoping a processStrong management understandingClear process ownership

Bottom Up Begin describing at detail levelGroup tasks into sub-processes

One group performs many unrelated tasksMany groups participate in processManagement doesn’t understand process

Event Partitioning

Identify events or triggers to begin workFollow the event, or follow the work

Many groups are involvedHighly manual process, limited databases / systems hand-offs

HOW MUCH TIME DOES IT TAKE TO MODEL/ANALYZE A PROCESS?Enterprise Process Framework

• APQC• Value Reference Model• Architectural Frameworks• SCOR• ITIL

SIPOC: Suppliers Inputs Process Outputs CustomersIGOE: Inputs Guides Outputs Enablers

PROCESS SCOPE DIAGRAM: IGOE: INPUTS, GUIDES, OUTPUTS, ENABLERSProcess =

• Action• Start / trigger• End / result

Inputs• Come from other processes (internal or external)• Types include:

• Physical materials to be transformed• Information to be created, read / reviewed, updated, deleted (CRUD)

Guides: • Come from other processes (internal or external) – planning or managerial processes• Formal or informal policies, rules, regulations, guidelines, best practices, tribal knowledge, etc.

Outputs• Go to other processes (internal or external)• Types include:

• Physical materials to be transformed• Information to be read / reviewed, updated, deleted (RUD)

Enablers• Managed, allocated, acquired, assigned in other processes• Types include:

• People• Technologies• Facilities• Machines

05/09/2023

IGOE EXAMPLEExample: The latest reports shows that it takes us 25% longer to manufacture a product than our competition, and it costs 10% more. Our largest customers are twice as likely to complain about our quality then are smaller ones I want you to make our manufacturing process more efficient, and I want the complaints to stop!

Enablers

Process:Manufacture Product

Sub-processes:Assembly

Test / InspectFix / Repair

Guides

Inputs OutputsOrders,

sequencedMaterials, line

sideWork instructions

EmployeesPlants

Machinery / Tooling

Processes:Receive orders

Schedule ordersOrder materials

Transfer inventoryDesign mfg process

Processes:Hire employeesPay employeesAcquire assets

Final productPaperwork

(certificate of mfg)

Invoice

Processes:Invoice orderDeliver orderVerify receipt

Design tolerancesQuality targets

OSHA regulationsLabor union contracts

Processes:Design product

Manage labor relationsMonitor [OSHA]

regulations

THE VALUE CHAIN GROUP’S VRMExecute

M1Analyze Market

M2Analyze Performance

M3Define Customer Needs

M4Architect Solution

M5Develop Business Case

M6Validate Opportunity

M7Create Product Roadmap

MarketINPUTSCompetitive OfferingsCustomer NeedsPlan, MarketingStrategy, Marketing

INPUTSCompetitive OfferingsProduct Performance Analysis

INPUTSCustomer InterviewsLeads, UnqualifiedMarket Survey

INPUTSCompetitive IntelligenceCustomer TrendsTechnology TrendsVoice of the Customer

INPUTSProduct Design ConceptSupply Chain Design

INPUTSBusiness Case

INPUTSFunding ApprovalMarket TrialValidated Opportunity

OUTPUTSCustomer Density MapCustomer GoalsCustomer SegmentationMarket Dynamics

OUTPUTSBenchmark Data, ProductCompetitive IntelligenceReverse Engineering Reports

OUTPUTSCustomer NeedsCustomer RequirementsCustomer TrendsUnique “Must Haves”

OUTPUTSConcept ClinicPreliminary Brand StrategyProduct Benefits CoreProduct Design Concept

OUTPUTSBusiness CasePreliminary Pricing StrategyPreliminary Volume TargetValue Proposition

OUTPUTSBrand Concept AlignmentMarket TrialValidated Opportunity

OUTPUTSPlan, Plan PositioningProduct Life ExpectationsProduct RoadmapProduct Schedule

R1Define Research Opportunity

R2Forecast Technology

R3Acquire Technology

R4Define New Technology

R5Validate Technology

R6Protect Technology

R7Transfer Technology

R8Introduce Technology

ResearchINPUTSCompetitive IntelligenceIndustry Research ReportsNew Technology StandardsProduct Usage Analysis

INPUTSBenchmark Data, ProductCompetitive IntelligenceCustomer SurveyTechnology Requirements

INPUTSCompetitive IntelligenceTechnology Life ExpectancyTechnology Impact AnalysisTechnology Viability Analysis

INPUTSAcquired TechnologiesIntellectual PropertyResource AvailabilityTechnology Requirements

INPUTSAcquired TechnologiesResearch PrototypesIntegration RequirementsTest & Validation Equipment

INPUTSField Intelligence DataResearch RegulationsPatent LawsPatent Searches

INPUTSDevelop RecommendationsPatentsResearch PrototypesIntegration Requirements

INPUTSDemo PrototypesTech Integration RequirementsTech Robustness ParametersTech Testing Requirements

OUTPUTSTechnology Requirements

OUTPUTSTechnology Life ExpectancyTechnology Impact Analysis

OUTPUTSAcquired TechnologiesIntellectual PropertyResearch Partnerships

OUTPUTSDevelopment TargetsResearch PrototypesIntegration RequirementsImpact Analysis

OUTPUTSTech Production ProceduresTech Testing ProceduresTech Viability AnalysisValidated Technology

OUTPUTSPatentsRegulatory Requirements Develop

OUTPUTSDemo PrototypesIntegration RequirementsTech Robustness ParametersTech Testing Requirements

OUTPUTSArchitectural DocumentationDevelopment KitsImplementation Standards

D1Define Product Requirements

D2Select Technology

D3Design Product

D4Design Process

D5Validate Product & Process

D6Align Supply Chain

D7Define Product Life Cycle

D8Launch Product

DevelopINPUTSCustomer RequirementsProduct Design ConceptProject BudgetProject Schedule

INPUTSAcquired TechnologiesArchitectural DocumentationImplementation StandardsTechnology Viability Analysis

INPUTSDesign StandardsMaterials LibraryProduct RequirementsProduct Technology Plan

INPUTSProduct Configuration / BOMProduct Specif ication

INPUTSCustomer RequirementsProduct Configuration / BOMProduct RequirementsPrototype / Simulation

INPUTSCapabilit ies, Supply ChainCapacity, Supply ChainChannel AlliancesMarketing Alliances

INPUTSPlan, Market Launch PlanProduct RoadmapValidated Customer ReqValidated Product Req

INPUTSFunding ApprovalProduct Lifecycle PlanValidated Customer ReqValidated Product Spec

OUTPUTSProduct RequirementsSourcing Criteria

OUTPUTSProduct Technology PlanSourcing Criteria

OUTPUTSMaterial Cost EstimatesPacking SpecificationProduct Configuration / BOMService Manuals

OUTPUTSProcess RequirementsProcess ManualsProcess Standards

OUTPUTSEngineering Change RequestTest ResultsValidated Product SpecValidated Process Documents

OUTPUTSSupply Chain Design

OUTPUTSFunding RequestProduct Lifecycle PlanStrategy, Product

OUTPUTSBuild PackageSell PackageSource PackageSupport Package

A1Qualify Supplier

A2Issue Request

A3Evaluate Proposal

A4Negotiation Contract

A5Place Order

A6Receive Order

A7Verify Order

A8Transfer Inventory

A9Process Invoice

AcquireINPUTSTargeted SuppliersSupplier SolicitationsDuns ReportsSupplier References

INPUTSMaterial Cost EstimatesSource CriteriaQualified Supplier ListPreferred Supplier List

INPUTSIT Licensing AgreementsStrategy, Corporate

INPUTSAccepted ProposalContract GuidelinesTerms & Conditions

INPUTSCompleted ContractOrder ConfirmationSchedule, Production

INPUTSAdvanced Ship NoticeSchedule ReceivingShipped ProductShipping Documents

INPUTSReceived GoodsShipping Documents

INPUTSProduct Routing InstructionsReceived Goods, Verified

INPUTSInvoiceReceipt Confirmation

OUTPUTSQualified Supplier ListPreferred Supplier ListSource Criteria

OUTPUTSLoad TenderOpen RFP’sRequest for ProposalRequest for Quotation

OUTPUTSIT Change GuidelinesIT PortfolioRules, Information TechnologyStrategy, Information Technology

OUTPUTSCompleted ContractLicensing RequirementsT&C Revision Request

OUTPUTSOrder ConfirmationPurchase OrderScheduled, Receiving

OUTPUTSReceipt ConfirmationReceived GoodsShipping Documents

OUTPUTSReceipt ConfirmationReceived Goods, Verified

OUTPUTSInventory LocationSpare Parts

OUTPUTSAP EntryPayment Authorization

B1Request Resource

B2Issue Material

B3Build Product

B4Verify Product

B5Package Product

B6Stage Product

B7Release Product

BuildINPUTSMaintenance ScheduleProduction PackageSchedule, Receiving

INPUTSBill of MaterialProduction PackageSchedule, Production

INPUTSEngineering Change NoticeInventory, WIPProduction PackageProduction Standards

INPUTSBuild PackageTest Procedures

INPUTSInventory, Quality VerifiedPackaging Specif icationSchedule, Production

INPUTSInventory Packaged GoodsStorage Instructions

INPUTSInventory, Packaged GoodsReg Compliance Guidelines

OUTPUTSBill of MaterialPurchase Requisit ionRouting InstructionsRequirements, Capital Projects

OUTPUTSInventory, LocationInventory, WIPPerformance Feedback

OUTPUTSEngineering Change RequestInventory, Unpacked GoodsPerformance Feedback

OUTPUTSPerformance FeedbackRouting Instructions

OUTPUTSInventory Packaged GoodsLot CertificationPerformance Feedback

OUTPUTSInventory, Package GoodsPerformance Feedback

OUTPUTSAdvanced Ship NoticeInventory, Finished GoodsPerformance FeedbackSchedule Delivery

F1Order Inquiry

F2Confirm Order

F3Plan Load

F4Receive at Warehouse

F5Fill Order

F6Ship Order

F7Deliver Order

F8Verify Receipt

F9Install & Test

F10Invoice

FulfillINPUTSLoad TenderRequest for Quotation

INPUTSPurchase OrderRFQ ResponseRules, Order Entry

INPUTSCustomer Order RulesPlan, Transportation NetworkSoft Allocation

INPUTSAdvanced Ship NoticeInventory, Finished Goods

INPUTSInventory, Finished GoodsProduction SchedulePlanned LoadsSoft Allocation

INPUTSCarrier Rate TablesConsolidated OrderReg Compliance GuidelinesTransportation Routing

INPUTSBill of LadingOrder ShipmentShipping Documents

INPUTSAdvance Ship NoticeBill of LadingReceipt ConfirmationShipping Manifest

INPUTSInstallation Instructions

INPUTSProof of Delivery

OUTPUTSInventory, LookupRFQ Response

OUTPUTSOrder ConfirmationSoft Allocation

OUTPUTSOrder TriggerPlanned LoadsSoft AllocationTransportation Routing

OUTPUTSInventory, Location

OUTPUTSConsolidated Order

OUTPUTSAdvance Ship NoticeBill of LadingShipped ProductShipping Documents

OUTPUTSBill of LadingShipping Manifest

OUTPUTSProof of DeliveryShipping Documents

OUTPUTSInstallation Records

OUTPUTSInvoice

N1Define Brand Requirements

N2Differentiate Brand

N3Select Channel

N4Architect Brand

N5Validate Brand

N6Protect Brand

N7Assess Supply Network

N8Create Marketing Roadmap

N9Launch Brand

BrandINPUTSCompetitive IntelligenceCustomer SegmentationStrategy, ProductValue Proposit ion

INPUTSBrand Equity PyramidBrand RequirementsMarketing DynamicsUnique Buying State

INPUTSBrand Collaboration ModelCreative NetworkMarketing Partnerships

INPUTSDifferentiation StatementBrand Equity AssessmentBrand Network ModelCorporate Identity System

INPUTSBrand IdentityBrand PrototypePackage PrototypeTesting Criteria

INPUTSIP OpportunitiesPatent DrawingsDesign RequirementsProduct Portfolio

INPUTSMarketing PartnershipsValidated Brand DesignValidated Package Design

INPUTSAdvertising ConceptsMarketing PartnershipsValidated Brand DesignValidated Package Design

INPUTSCommunication StrategyCorporate Identity SystemValidated Brand DesignValidated Package Design

OUTPUTSBrand Equity PyramidBrand RequirementsPerceptual Map

OUTPUTSBrand Differentiation StatementBrand Equity AssessmentCompetitive FocusUnique Selling Proposit ion

OUTPUTSBrand Network Model

OUTPUTSAdvertising ConceptsBrand ArchitectureBrand IdentityBrand Prototype

OUTPUTSQuantitative ResearchValidated Brand DesignValidated Package Design

OUTPUTSFreedom of Use AssessmentIP StrategyPatent ApplicationTrademark Registration

OUTPUTSStrategy, Sales Channel

OUTPUTSCommunication StrategyCustomer ProfileQualification ChecklistPlan, Brand Lifecycle

OUTPUTSPlan, Market LaunchPrice ListSales KitSales Process Template

S1Target Customers

S2Qualify Target

S3Position Solution

S4Develop Relationship

S5Assess Customer Needs

S6Develop Proposal

S7Present Proposal

S8Finalize Contract

S9Win / Loss Review

SellINPUTSBudget, SalesCurrent Customer ListCustomer Density MapCustomer Profile

INPUTSQualification ChecklistPlan, Market LaunchSales KitTarget List

INPUTSAccount Plan, GeneralLeads QualifiedSales KitTactical Sales Processes

INPUTSAccount Plan, DetailedAgreement to EngageCustomer Org StructureSales Kit

INPUTSAccount Plan, DetailedRelationship Management PlanSales Diagnostic ToolsTactical Sales Processes

INPUTSAccount Plan, DetailedCustomer Buying ProcessCustomer ExpectationsRequest for Proposal

INPUTSCustomer Value Proposit ionGo / No Go CriteriaProposed Solution

INPUTSAward Notif icationCompleted ContractT&C Revision RequestTactical Sales Process

INPUTSDead PursuitsLost SalesWon Sales

OUTPUTSPlan, Channel HeadcountPlan, Sales CoverageQualification ChecklistTactical Sales Processes

OUTPUTSAccount Plan, GeneralLeads, Qualif iedLeads, Unqualified

OUTPUTSAccount Plan, DetailedCustomer Contact InfoCustomer Org StructureProduct Advertising

OUTPUTSRelationship Mgnt Plan

OUTPUTSConsensus on ValueCustomer ExpectationsCustomer Needs IdentifiedCustomer Value Proposition

OUTPUTSProposal Solution

OUTPUTSDead PursuitsProposed SolutionLost SalesWon Sales

OUTPUTSTerms & Condit ionsSigned Contract

OUTPUTSWon / Lost Report

U1Register Customer

U2Manage Incident

U3Resolve Problem

U4Process Return

U5Educate Customer

U6Deliver Service

U7Monitor Experience

SupportINPUTSCustomer DataCustomer Profile

INPUTSProduct Failure ReportReg Compliance Guidelines

INPUTSProblem DescriptionReg Compliance GuidelinesRouted Support Query

INPUTSReg Compliance GuidelinesRequest for Return

INPUTSProduct ManualsProcess Manual

INPUTSGuidelines, Cust Notif icationGuidelines, Service BulletinsService ManualsSupport Agreements

INPUTSErgonomic DataField Performance DataProduct Failure Data

OUTPUTSCustomer CRM Record

OUTPUTSProblem DescriptionRoute Support Query

OUTPUTSProposed Solution

OUTPUTSReturn Authorization

OUTPUTSCourse DescriptionsCourse Materials

OUTPUTSService ReportSpare Part Kits

OUTPUTSCustomer SurveyProduct Performance AnalysisProduct Usage AnalysisVoice of the Customer

Plan Govern

PV PV1Identify Value Chain Requirements

PV2Assess Value Chain Resources

GV GV1Set Strategy & Vision

GV2Set Performance Expectations

GV3Set Information Policy

GV4Set Financial Policy

GV5Set Asset Policy

Plan ValueChain

INPUTSCorporate Performance TargetsProduct Lifecycle PlanFunctional Requirements

INPUTSFunctional CapacityCorporate Strategy

GovernValueChain

INPUTSExternal FactorsMarket Dynamics

INPUTSPerformance FeedbackSolution Performance FeedbackVRM ROI, Validated

INPUTSIT Licensing AgreementsStrategy, Corporate

INPUTSPerformance TargetsFunding RequestStrategy, Corporate

INPUTSStrategy, Corporate

OUTPUTSRequirements, Value

OUTPUTSResource Availability

OUTPUTSVision & Mission StatementBusiness ContextStrategy, CorporateSWOT Analysis

OUTPUTSBenchmark GuidelinesImprovement MethodsPerformance TargetsValueCard Template

OUTPUTSIT Change GuidelinesIT PortfolioRules, Information TechnologyStrategy, Information Technology

OUTPUTSBudgetsRules, FinanceStrategy, Finance

OUTPUTSAsset PolicyPersonnel AvailabilityResource Allocations

PV3Align Value Chain Resources

PV4Communicate Value Chain Plan

GV6Set Personnel & Ethical Policies

GV7Set Extended Enterprise Policy

GV8Set Business Change Guidelines

GV9Set Compliance Policy

GV10Set Life Cycle Policies

INPUTSPerformance MetricsResource AvailabilityStrategy, CorporateStrategy, Financial

INPUTSPerformance MetricsStrategy, ITStrategy, OrganizationalStrategy, Value Chain

INPUTSPersonnel RequirementsStrategy, Corporate

INPUTSCorporate Value StatementExternal FactorsSocial & Ethical PolicyStrategy, Corporate

INPUTSChange Prior itization MatrixInternal Factors (Cultural)Training MaterialProject Guidelines

INPUTSGovernmental RegulationsContract PrecedenceInternational Law

INPUTSStrategy, CorporateStrategy, Functional Lifecycle

OUTPUTSFinancial Impact DocPerformance TargetsStrategy, Value Chain

OUTPUTSFunctional Business ObjectivesPortfolio Objectives

OUTPUTSSocial & Ethical PolicyCorporate Value StatementOrganizational Structure

OUTPUTSGuidelines, Due DiligenceGuidelines, Partnership

OUTPUTSChange Guidelines, CorporateProcess DocumentationVRM ModelBusiness Framework

OUTPUTSCorporate PoliciesLegal Guidelines

OUTPUTSStrategy, Organizational Lifecycle

PP PP1Gather PD Requirements

PP2Assess PD Resources GP GP1

Govern PD RulesGP2Govern PD Process

GP3Govern PD Information

GP4Govern PD Treasury

GP5Govern PD Assets

PlanProductDevelop-

ment

INPUTSBusiness Objectives, PDPlan MarketingStrategy, Corporate

INPUTSPersonnel AvailabilityResource Allocation, PD

GovernProductDevelop-

ment

INPUTSCorporate PoliciesResearch RegulationsPatent LawsRegulatory Trends

INPUTSPerformance Feedback

INPUTSExternal StandardsPlan, Information Technology

INPUTSBudget, MarketingFunding RequestPlan, Finance

INPUTSAsset PolicyPatents

OUTPUTSRequirements, PD


OUTPUTSRules, Product Development

OUTPUTSCapabilities, ResearchCapacity, ResearchPerformance Metrics, PDPerformance Targets, PD

OUTPUTSCurrent Market Strategy

OUTPUTSFunding Approval

OUTPUTSResource Allocations, PDTest & Validation Equipment

PP3Align PD Resources

PP4Communicate PD Plan

GP6Govern PD Personnel

GP7Govern PD Network

GP8Govern PD Change

GP9Govern PD Compliance

GP10Govern PD Life Cycle

INPUTSPerformance Targets, PDRequirements, PDResource Availability

INPUTSChange Guidelines, PDFunding ApprovalRules, PDStrategy, Develop

INPUTSPersonnel RequirementsSocial & Ethical Policy

INPUTSPartnership Guidelines

INPUTSChange Guidelines, CorporateExternal FactorsNew Technology Impact

INPUTSCorporate PoliciesRegulatory Requirements

INPUTSTechnology Lifecycle Expectations

OUTPUTSFunding RequestStrategy, PD

OUTPUTSPersonnel RequirementsPlan, PD

OUTPUTSJob PostingsPersonnel Availability

OUTPUTSPartnership, ResearchPD Partner Policies

OUTPUTSChange Guidelines, PD

OUTPUTSGov Research RegulationsPatent Laws

OUTPUTSStrategy, Product Lifecycle

PS PS1Gather Supply Chain Requirements

PS2Assess Supply Chain Resources

GS GS1Govern Supply Chain Rules

GS2Govern Supply Chain Process

GS3Govern Supply Chain Information

GS4Govern Supply Chain Treasury

GS5Govern Supply Chain Assets

PlanSupplyChain

INPUTSBuild PackageBusiness Objectives, SCCustomer OrdersProcess Requirements

INPUTSPersonnel AvailabilityResource Allocations, SCSupply Chain Design

GovernSupply Chain

INPUTSCorporate Policies

INPUTSPerformance Feedback

INPUTSExternal StandardsInventory LookupPlan, Information TechnologyStrategy, Information Tech

INPUTSBudget, Supply ChainFunding RequestInvoice PaymentPlan, Finance

INPUTSAsset Policy

OUTPUTSRequirements Supply Chain


OUTPUTSRules, Supply Chain

OUTPUTSCapabilities, Supply ChainCapacity, Supply ChainPerformance Metrics, SCPerformance Targets, SC

OUTPUTSInventory, AvailabilityInventory, Soft Allocation


OUTPUTSEquip & Facility HistoryEquip & Facility DispositionMaintenance ScheduleResource Allocations, SC

PS3Align Supply Chain Resources

PS4Communicate Supply Chain Plan

GS6Govern Supply Chain Personnel

GS7Govern Supply Chain Network

GS8Govern Supply Chain Change

GS9Govern Supply Chain Compliance

GS10Govern Supply Chain Life Cycle

INPUTSPerformance Targets, BuildRequirements, Supply ChainResource Availability

Funding ApprovalRules, Supply ChainStrategy, Supply Chain


INPUTSPartnership Guidelines

NPUTSChange Guidelines, CorporateEngineering Change Notice

INPUTSCorporate PoliciesGovernmental Regulations

INPUTSStrategy, BuildStrategy, Product Lifecycle

OUTPUTSFunding RequestStrategy, Supply Chain

OUTPUTSPersonnel RequirementsProduction PackagePlan, Supply Chain


OUTPUTSPartnerships, Supply Chain

OUTPUTSEngineering Change NoticeEngineering Change Request

OUTPUTSCompliance Guidelines

OUTPUTSStrategy SC Lifecycle

PC PC1Gather Customer Requirements

PC2Assess Customer Resources

GC GC1Govern Customer Rules

GC2Govern Customer Process

GC3Govern Customer Information

GC4Govern Customer Treasury

GC5Govern Customer Assets

PlanCustomerRelations

INPUTSBusiness Objectives, CRPlan, MarketSell Package

INPUTSPersonnel AvailabilityResource Allocations, CRSupply Chain Design

GovernCustomerRelations

INPUTSCorporate Policies

INPUTSChannel Quality AssessmentPrior Sales PerformanceStrategy, Sales

INPUTSBrand ArchitecturePlan, Information TechnologyQuantitative Market Research

INPUTSBudget, Customer RelationsFunding RequestPlan, Finance

INPUTSAsset Policy

OUTPUTSRequirements, Sell


OUTPUTSGo / No Go CriteriaRules, Customer Relations

OUTPUTSChannel ConstraintsPerformance Metrics, CRPerformance Targets, CR

OUTPUTSCorporate Identify System


OUTPUTSResource Allocations, CR

PC3Align Customer Resources

PC4Communicate Customer Plan

GC6Govern Customer Personnel

GC7Govern Customer Network

GC8Govern Customer Change

GC9Govern Customer Compliance

GC10Govern Customer Life Cycle

INPUTSPerformance Targets, CRRequirements, SalesResource Availability

INPUTSChange Guidelines, CRFunding ApprovalRules, Customer Relations


INPUTSPartnership GuidelinesStrategy, Customer Relations

INPUTSChange Guidelines, Corporate

INPUTSCorporate PoliciesGovernment RegulationsLegal Guidelines

INPUTSStrategy, Product Lifecycle

OUTPUTSChannel StrategyFunding RequestStrategy, Sales

OUTPUTSPersonnel RequirementsPlan, SaleSales Forecast


OUTPUTSChannel AlliancesSales Strategy

OUTPUTSChange Guideline, CRPricing Changes

OUTPUTSContract Guidelines

OUTPUTSStrategy, Customer Lifecycle

VALUE CHAIN RELATIONSHIPS

Product or Service

End Customer

Performing Locations

Order to CashSupply Chain to SettleIdea to Launch

Service Parts

Used Equipment

Direct Materials

Indirect Materials

Business Services and Consulting

Fixed Assets

Internal

OEM

US Govt

Kits

National Account

Distributor

JV

IT SW Licenses

Miami

Mexico

New Equipment

Financial Products

S outh America

IndiaChicago

New York

WHQ

Plants

PDC

JV

New Equipment

After market parts

Financial Services

Service offerings

USA Mexico

End Customer

National Account JV

Distribution Partners Internal

India

Priority Goals

Office Suppliers

Low CostReliability / Quality

Customer Focus

Asset UtilizationAdaptive Innovative Velocity

Every product & service And deliver

IT Technical Solutions

Internal

For a customer

That expects a particular value

IT Solutions

Brazil

OEM

Contract Manufacturing

We develop

Is done a particular way at a location

Variables create a complex hierarchy of processesBuild or assemble

HOW MUCH TIME DOES IT TAKE TO MODEL/ANALYZE A PROCESS?RULE of Thumb:2-4 weeks (depending on experience of process modeler)For EACH level 3 process scenario

Expected output:BPMN diagram that is not executableActivities and flow is accurate – manual, user, and automatedInputs / outputs / data requirements are definedSystems used are identifiedRoles / swimlanes are usedBusiness rules are identified if not completely documented

WHY STANDARD NOTATIONWhat notations of process modeling do you use?How did you select it?

WHY STANDARD NOTATION?

http://www.google.com/search?q=process+models&hl=en&tbo=u&tbm=isch&source=univ&sa=X&ei=hmkUUdyeKYXM9QTT1YGYBg&ved=0CD4QsAQ&biw=1132&bih=658

All models are wrong – some are useful.- Charles Box.

The modeler makes decisions about the purpose of the model

The interpretation of the model is always up to the reader




WHY STANDARD NOTATION?


27

WHY STANDARD NOTATION? What is the difference between the diagrams?

Do Work

Do Other Work

Do Still More Work

Do Different

Work

Do Work

Do Other Work

Do Still More Work

Do Different

Work+

Do Work

Do Other Work

Do Still More Work

Do Different

Work

Do Work

Do Other Work

Do Still More Work

Do Different

Work

BENEFITS OF A STANDARD NOTATIONQuickly and clearly communicate:

• Reduces ambiguity • Re-use or reference other process maps / subprocesses

It makes you think • Assists in process analysis• Question simple words like “and”

Enables faster automation• Link between process model and IT code• First step in utilizing BPMS tools

PROCESS MODELING NOTATIONS ACCORDING TO ABPMP CBOKBPMNFlow charting – ANSI standards – loosely definedSwim lanes – Rummler BracheEvent Process Chain (EPC) – activity diagram [UML] or ARIS - syntax

variesValue Chain – VRM notation, SCORUML – activity diagramsIDEF-0LOVEM-E (IBM process methodology)SIPOCSystems DynamicsValue Stream Mapping (TQM / Lean)

05/09/2023

NOTATION OPTIONSStandard Use Pros ConsNo standard Any Easy for creator to do

Adaptable to any toolReaders may have difficulty following what’s happeningNot readily automated

Internal Corporate Standard

Any Can be designed for tools already in-house

Time to develop and gain buy-inNot readily automatedLimited ability to model reality (exceptions, interruptions)

Graham Process Methodology

Business flow diagrams Swim lanesData flow

“Industry standard” Requires specific proprietary SWOutdated?Limited ability – Focused on artifactsNot readily automated

IDEF0 Data flow / Document Maps:Tracking information in/out of processProcesses with clearly defined “rules”

Industry standardSupported by wide variety of tools

Technically detailed – confusing to businessLimited to describe functioning aspects of systems, not business processesNot readily automated

UML Business flow diagramsDocument software systems / Data flow / Document Maps

Industry standardSupported by wide variety of tools

Not readily understood by businessNot readily automated

BPEL Process “Execution”Modeling computing environment with web services

Industry standardSupported by wide variety of toolsEnables process automation

Not readily understood by business

BPMN Business flow diagrams / Swim lanesExecutable processes

Industry standardBusiness and IT orientedSupported by wide variety of toolsEnables process automation

Still evolving

PROCESS MODELING“AS IS” APPROACHES

Start with “happy path”• Include major decisions / check points as normal

process• What business rules / policies are used to direct

process flow?

Add exceptions and errors - At each task ask: • What kinds of errors occur? • What happens if information isn’t available for a

particular task? • When are there exceptions to the rules?

What else does a participant do in a given week? • What causes these tasks to be done?

Represent all “Regularly Recurring” instances

The Problem with the 80-20 Rule:

How many of your process instances

follow the happy path at every decision?80% x 80% = 64%64% x 80% = 51%

TO WHAT LEVEL OF DETAIL?

“When we don’t understand the details• it’s easy to miss inefficiencies.• we may be enabling subversive or counterproductive activity.”

“Detail does not go away because it is ignored. If we intend to engineer our processes we need the detail”

“Detail charts may be intimidating at first glance. However, a chart is a reflection of the process. If the chart is complicated, the process is complicated.” – Ben Graham, Detail Process Charting

To What Degree of Accuracy?

PROCESS HIERARCHY DEFINITIONS AND LEVELS OF DETAIL

Level 0 – Enterprise Process Model:• Visual depiction of ALL value chains used throughout the enterprise and relationships• Identifies core processes • Used in corporate governance / funding approvals – prioritization of projects across value chains• Otherwise known as: Enterprise Reference Model, Process Framework, Business Process Architecture

Level 1 – Value Chain • Provides value to end-customers• Is a chain of processes: Activities within value chain have independent triggers that require coordination to

provide value. • Enables: strategic planning – prioritization of projects within value chains• Otherwise known as : Value Stream, High Level Process; Core Processes

Level 2 – Scenario:• Is a value chain for a specific business unit, product/service, and geographical locations (of customers and

producers)• Used to define operating model: when to differentiate or standardize on process activities

Level 3 – Process• Sequence of repeatable activities, decisions, and events• Enables: Process design and assessment• Otherwise known as: business flow; “low level of process” in process framework” (VRM level 3, APQC level

¾)

PROCESS HIERARCHY DEFINITIONS AND LEVELS OF DETAIL

Level 4 – Activity / Sub Process Level• Sequence of repeatable activities, decisions, and events • Finer grained than process – sub-processes completed within 2 weeks time period (usually less)• Enables: Process design and improvement – discuss sequence of activities, decisions, causes / results of events• Otherwise known as: Activity, Tasks, Function, Service, Sub Process

Level 5 – Finite Tasks• No further break down of activity • Finer grained – activities completed within 24 hours or less (usually minutes). User tasks all completed within a

single “screen” or “session” of an IT application / system.• Enables: Process design and improvement – identify where inputs / outputs / rules / etc. are created and used• Otherwise known as: Activity, Tasks

Level 6 – Finite Tasks for Execution• Activities are associated to data objects with specific data fields identified• Business rules are documented and conditions associated with gateways• Systems are identified for services / integrations

Level 7 – Work level instruction (not really a process)• Activity detail changes with tools, system, or application• Enables: User education of new tools used to improve process performance• Otherwise known as: Training details, user guide; “how” things are done

APPROACHES TO PROCESS ANALYSIS AND PROCESS IMPROVEMENT

“AS IS” ANALYSIS: WHAT DO YOU LOOK FOR?Excessively sequential activities“Yo-Yo” effect: many handoffsExcessive rework

• Decisions late in the process • Multiple loops back• Similar sounding activities

Delays• Lack of SLAs

Is the law of conservation met?• Where are the inputs coming from?

There is nothing so useless as doing something

efficiently that should not be done at all.

- Peter Drucker

SEVEN PRINCIPLES OF PROCESS DESIGN

1. Whether should work be done• Under what circumstance

2. How precisely should it be done3. What information is needed to make decisions4. When or in what order should it be performed5. Who should perform it

• Case work vs. Sequence / work-flow6. Where should it be performed

• Centralized vs. local7. What should be done8. What tools should we use to do it?

- Hammer and Hershberger(Better, Faster, Cheaper)

DOES PROCESS STIFLE INNOVATION?

Focus on redesigning a tool: I need a database

Focus on limited actionsI need a method to record XYZ

Focus on actions and resultsI need a method to communicate status to management to get help OR I need a method to meet records and retention policy

“The difference between the right word and the almost right word is the difference between lightning and the lightning bug”

- Mark Twain

LESSONS LEARNED FROM APPLYING BPMNWords matters

• And vs. And Then Process flow matters. The value of modeling events

• And vs. Or• What really triggers activities• What happens after you send something to a customer or

supplierDecisions are related to business rules The concept of “for each” and how this impacts process and organizational change managementThe importance of grouping tasks correctly into sub-processes

MOST COMMONLY USED BPMN ELEMENTS

BPMN Task Types

Task: verbfollowed by noun

Looping task:Do while

Multiple instancetask: For each

Sub-process:Details

collapsed

BPMN Event Placement

Boundary event:interrupts activity

If event occurs, redirect flow

Respond toevent

Continuenormally

In SequenceFlow: Do

somethingWait for or send an event

Continue onBPMN Gateways -Splits

Exclusive: Only one path taken - based on data

Activity A

Activity B

Activity C

Parallel: All paths are always taken

Activity A

Activity B

Activity C

Inclusive: One or more paths taken - based on multiple data fields

Activity A

Activity B

Activity C

Event (exclusive): Only one path taken - based on which event happens first

Activity A

Activity B

Activity C

yes

no

not in time

BPMN Gateways - Merges

Exclusive: No delay Anypath will continue on

Activity A

Activity B

Activity C

Parallel: Wait for all paths to complete

Activity A

Activity B

Activity C

Inclusive: Wait for all paths thatare active to complete

Activity A

Activity B

Activity C

BPMN Most Common Events

None

Catch (Receive) Message

Throw (Send) Message

Wait for Time Delay

Catch Error Condition (Interupt and divert)Condition is reached

Throw (sound) a signal

Throw (Notify) Error Condition

EXCLUSIVE GATEWAYS: DECISIONS / SPLITS

Can have TWO OR MORE (no limit) outgoing sequence flowsOne and only one path will be followed for each tokenWhich path the token takes depends on the gateway type

[Data] Exclusive Or: • Decision based on a variable or

condition that is known• Evaluation usually based on

ONE data field or business policy• Decision is evaluated when

token reaches gatewayNO DELAY

Event gateway: • Decision based on which event happens first

• All paths must have an event or receive task following the gateway

• Usually a message, timer, or condition• Token will be DELAYED until event happens

BPMN Gateway Exercises

Wait 1 week

Contactcustomer

Prepare quote Receive Purchase Order

Place Order

Receive Feedback - Price to High

Negotiate withNavistar


Approve Loan

Get collateral

Reject loan

Check creditscore

high risk

medium risk

Low risk

Exclusive Gateways

English Words to Listen For:Either, Or, If, Sometimes, Wait for (event)

Specific numbers / codes

Always ask: How do you know which path to

chose?

GATEWAYS AND RULESNo work is done at a gateway

• Token does not wait• Cycle time is not impacted

“Evaluation” or “Refer to policy” activity typically done prior to a gateway

• Often omitted from narration• Intuitive to subject matter experts• Business rules may be:

• Personal decision• Tribal knowledge / best practice / verbal / informal• Formalized definition or documented rules• Hard coded into IT logic and out of date

GATEWAYS AND BUSINESS RULES

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ApproveLoan

Getcollateral

Rejectloan

Checkcreditscore

Reviewbusiness

policy

Credit risk policy

Low risk

medium

high risk


Approve Loan

Get collateral

Reject loan

Check creditscore

<600

600-699

> 700

What happens during financial crisis?What happens when new regulation is introduced?What happens is too many people default on loans?What happens if no loans are approved?

Best Practice:Extrapolate the Rules from the Process, just as you want them

extrapolated from IT code so that business can take over management of rules

DATA GATEWAYS: EXCLUSIVE VS. INCLUSIVEDecision based on a variable or condition that is known

• Variable may come from a data input into the process• Condition is known by process performers

Decision is evaluated at point token reaches gatewayNO DELAY

• Exclusive• Only one condition can be true• Typically ONE variable

or business rule is used

• Inclusive• One or more conditions can be true• Typically more than one variable or

business rule is usedCan usually be represented by seriesof exclusive gateways… but order in which they are evaluated doesn’t matter


BPMN Gateway ExercisesBPMN Gateway Exercises

Approve Loan

Get collateral

Reject loan

Check creditscore

high risk

medium risk

Low risk

English Words to Listen For:Sometimes, If, And, Also

English Words to Listen For:Either, Or, If

BPMN GATEWAYSTO BE OR NOT TO BE?

Decisions• And gateway =

Uncontrolled outgoing flow• ALL subsequent activities will be enabled

Merges• Exclusive-Or merge =

Uncontrolled incoming flow• Completion of ANY of the previous activies will

trigger the next task

Recommendation:• Use gateways to avoid accidental misuse or

misinterpretation• Be accurate with business context

USING EVENTS TO IDENTIFY DELAYS

HIRING EXAMPLE:WHAT’S WRONG

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SEPARATE PROCESSES LINKED THROUGH INPUTS AND OUTPUTS

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BPMN Receive Resumes

Receive Resume

Determine whetherresume is for a

posted job

Resume [Received]

Job Postings

Review resume -search for basic

requirements

Resume for Posting?

Review resumefor potential

Forward resume to hiring manager

Basic requirements met?

Reply "sorry but no thanks" to candidate

Potential

Potential is not a formally defined policy, but is based on HR experience, current labor conditions, and general understanding of Navistar current and future hiring needs. This will vary by HR individual as well as time.

Resume has potential?

Store resume for furture use

Resume[In Review]

Resume [Rejected]

Resume[Filed]

yes

no

yes

no

no

BPMN Hiring Example

Hiring Manager

HR

Position [posted]

Post PositionPost Position

Evaluate ResumesEvaluate Resumes

Resume [Received]

Interview CandidateInterview Candidate

Receive ResumesReceive Resumes

Resume [Submitted]

Candidate

Identify what really TRIGGERS activity to beginIdentify what INPUTS are required to do activitiesIdentify OUTPUTS of activities

LOOP TYPES:Loop Type

Gateway Standard Loop(Do-While or Do-Until)

Multiple Instance

Use •Repeat activities without preserving the previous results•Activities always repeat sequentially (do once, then maybe do again)• Loops cross multiple swim lanes

•Repeat one or more activities while preserving the data/results of the activities for future reference•Number of occurrences is not known prior to first instance•Activities always repeat sequentially (do once, then maybe do again)•Exceptions regularly occur

•Activities will occur a fixed number of times, and this number of times is known before the loop begins (based on data object)•Activities may repeat sequentially or in parallel

Pros Readily understood Visual indication of repeated activity No need to specify a loop condition

Cons • Difficult to represent exceptions• Open to misinterpretation• Unintended “execution” consequences

•No way to determine what the loop condition is without annotations

•No way to tell how many parallel instance or serial iterations are currently being performed (during execution) •Least intuitive

Words to Listen For”

•Escalate•Go back and update•Approve / Reject•Verify / Confirm

• Monitor• Until [an alarm goes off/status is

reached]• Again

• For each• For all• Until [the last one is done]

LOOPS IMPLICATIONSOne activity finishes before next activity begins

• Packaging of parts will not begin until all parts are picked. This may or may not be the actual case.

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BPMN gateways

Pick Part (for each pickticket in order file)

Pick Ticket

Package PartsConfirm Order

Order

BPMN

52

BASIC MODELING CONCEPTS

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BPMN BPMN Concepts

«Pool» External Party

«Lane» Role ABC«Lane» Role XYZ

Activity A Activity B

Activity C

Text Annotation - Clarification

DataObject Z

BPMN BASIC ELEMENTSSub-process, Activity or Task: Action that performs work

Events: • Signal that something happened• Status of process• Describes how a process starts, pauses, waits, sends signals, redirects

process flow, ends

Gateway: Branches / controls flow of activity• Decision / Split• Merge / Join

Sequence flow: • Connects activities within a process• Shows order of tasks

Message flow:• Shows flow of messages between participants

Association: Associates information with objects


54

BPMN BASIC ELEMENTS (CONT’D)

Pool: Graphical representation of a participant in a process• Are not required

Swimlane: Sub-partition of a process• Are not required• Used to organize activities• Usually represents roles / users in process• Can be nested

Data Object: Information involved in process• Are not required• May be required to perform an activity• May be generated as output from an activity


55

BPMN A Play Area

«Lane»«Pool»

«Lane»«Lane»

«Lane»

BPMN POOLS AND LANES

Used to organize processes and activities

Pools• Is not required• Represents a “participant”• “Container” for a process• Sequence flow cannot cross boundary• Message flows must always be between two pools

• Message flow can attaches to boundary (black box){Message flow can also attach to BPMN element within a pool}

Lanes• Is not required• Represents any “logical grouping” – usually for roles / responsibilities

• Roles• Organization• Title• Specific Name

• Sequence flow crosses boundaries• Can be nested• Can be horizontal or vertical – tool or user preference

BPMN ACTIVITYActivity = work performed in processTask = atomic: no further breakdownSub-process = compound activity

• May be further broken down into any level of sub-processes or tasks and BPMN elements

• May be shown collapsed or expanded• Enables high level overview of process• Scopes activities that are impacted by events

BPMN ACTIVITY TYPESTYPES Icons in upper left of task box indicates task type

Different types have different inherent behavior Common types include:Service:

• Represents a service, such as a webservice• Performed by system / application• Requires input, may have output [message / data object]

Receive / Send: • Task either receives / sends message• Can be replaced with send / receive event

User: Workflow type activitity• Performed by person• Usually interfaces with a system • Managed and executed by BPM engine

Manual:• Work performed without any aid of system• Unmanaged by any system / BPM engine

Business rule:• Provides input to rules engine • Receives output / calculation results

Script:• Executed by BPM engine directly

BPMN TASKSMARKERS

Task: Smallest piece of work; Activity

Sub Process

Looping task: (Do while): • Perform activity at least once• Evaluate / test for condition• If condition is true, repeat task again• Condition may be a Boolean Expression or a Numeric Cap• Condition may be evaluated at beginning or end of task

Multiple instance task: (For each):• Perform activity X times, where X is known at onset of task starting• Task is complete when all X iterations are done

Next task does NOT begin until all iterations are done• Instances of activity can occur in sequence or in parallel with each other• Each instance must complete the task before next task begins

Ad Hoc• Process not performed same every time• Group of activities generally determined by performer


59Markers may be used in conjunction with one another, except for looping and multi-instancei.e., a multiple instance compensation or a loop compensation are possible

Activity Markers

BPMN GATEWAYSDo NOT perform work

• Do not affect process time

Control sequence flow: • Directs flow of a single token

(based on logical condition or event occurrence) OR• Splits tokens apart (generates additional tokens) OR• Merges tokens together

Must have multiple inputs or multiple outputs of sequence flow• Can’t have one input and one output• Can have multiple inputs and multiple outputs• Can have no input: decision will be made at start of process• Should use a default flow: otherwise an exception error can occur

BPMN EVENTSSomething that happens during a process

• Affect flow of process• Have a cause and/or reaction

Examples:• Activity starts or ends• Message arrives• Change of state in document

Placement in diagram• Stand alone:

• Catch: wait for signal, then proceed• Throw: send a signal, then proceed

• Boundary: • Catch: wait for a signal• Interrupt activity and redirect flow

EVENT TYPESStart: Single circle: Starts the processIntermediate: Double circle: Occurs during processEnd: Single bold circle: Ends the process

• Throw / send events: Black icon• Trigger is sent when token reaches event• Token immediately moves along sequence flow

• Catch / receive events: White icon• Token stops at event and waits for trigger• Token moves along sequence flow after trigger is received

Icon inside circle represents event or “trigger” type. Most common types are:

• Message• Timer• Error

BPMN Dealer Quote

SendBPMN Dealer Quote

Receive

BPMN Events

BPMN GATEWAYS AND CONDITIONAL FLOWSCONTROLLING PATH OF PROCESS

BPMN GATEWAYSDo NOT perform work

• Do not affect process time

Control sequence flow• Merges tokens together OR• Splits tokens apart (generates additional tokens) OR• Directs flow of a single token

Must have multiple inputs or multiple outputs of sequence flow• Can’t have one input and one output• Can have multiple inputs and multiple outputs [not recommended]• Can have no input: decision will be made at start of process

BPMN GATEWAYS: DECISIONS / SPLITS

Directs a token into different possible pathsAsks a question, associates outgoing paths with answers Generate a token for each answer / condition that is true

Types:• Exclusive Or: Only one path can be followed – based on data condition

• Only one answer / condition can be true

• Inclusive Or: One or more paths can be followed• One or more answer / condition can be true

• Parallel (aka “and”): All paths are taken (no question is asked)• All paths must reach end event for process to complete

• Complex: Condition evaluated to determine which flow is taken

• Event gateway: Exclusive, but occurrence of an event determines the flow• Decision made by participant based on data not visible to process• Usually a message (yes message vs. no message) or a timer• Must have 2 or more outgoing flows followed by events or receive tasks• First event to happen directs flow

BPMN Gateways – Splits

BPMN GATEWAYS: CONVERGES / JOINSConverges / Merges: Joins previous paths / tasks back into one flow

Types:• Exclusive (Uncontrolled):

• When any previous task / path is completed, continue on • (don’t wait for other tokens to arrive)

• Inclusive (Conditional And): • Wait for tokens from all active paths to arrive • Some tasks are completed

• Parallel (And): • Wait for tokens from all paths to arrive • All process tasks are completed

• Complex: • Condition evaluated to determine which inputs are needed to

continue onInsert PowerPoint Presentation Name Here

66

Gateway Merges

English Words to Listen For:Always, All, And, Wait for

everything to finish

GATEWAYS AND MERGESBEST PRACTICESAlways use a gateway instead of uncontrolled flowsSeparate gateways and mergers

• If multiple outgoing sequences flows, only one incoming sequence flow

• If multiple incoming sequence flows, only one outgoing sequence flow

Avoid complex gatewaysAvoid hard coding business rules into your process logic

• Extrapolate the business rules – make your process flexible!Check for matching icons

• OK if a gateway does not merge again• OK if gateway and merge have different symbols as long as business

context is accurate

05/09/2023

BPMN EVENTS

05/09/2023

BPMN EVENTSSomething that happens during a process

• Affect flow of process• Have a cause and/or reaction

Examples:• Activity starts or ends• Message arrives• Change of state in document

Placement in diagram• Stand alone:

• Catch: wait for signal, then proceed• Throw: send a signal, then proceed

• Boundary: • Catch: wait for a signal• Interrupt activity and redirect flow

EVENT TYPESStart: Single circle: Starts the processIntermediate: Double circle: Occurs during processEnd: Single bold circle: Ends the process

• Throw / send events: Black icon• Trigger is sent when token reaches event• Token immediately moves along sequence flow

• Catch / receive events: White icon• Token stops at event and waits for trigger• Token moves along sequence flow after trigger is received

Icon inside circle represents event type or “trigger” or “result”

BPMN Events

BPMN Dealer Quote

SendBPMN Dealer Quote

Receive

BPMN START EVENTStart Event begins the process, generates a ‘token’ that travels through the pathsAll start events are “catches”Start Event is NOT required but recommendedIf there is no start event:

• ALL tasks, sub-processes, gateways, etc. that do not have incoming sequence flow will act as the “start”

• Any element without an incoming sequence flow will start when the process startsMultiple start events may be used if applicable (be careful)If a start event is used

• An end event must also be used• All other objects must have incoming sequence flow

If a start event is used in a sub-process, it must ALWAYS have NO trigger• If a trigger is desired, use an intermediate event just before the sub process on the high level

diagramFlows:

• Sequence flow only coming out• May have message flow going in

Often over looked in narration. Questions to ask:

How do you know you need to do this process?What is the trigger to your activities?

Words to listen for:Every day,/week/month; I get an email; I access my

work queue; I wait until…

BPMN START EVENTSTOP LEVEL PROCESSES

None: No specific start

Message: A message arrives (start events can only catch messages)

Timer: Specific time / date or a specific duration

Conditional: Condition is reached

Signal: Signal broadcast elsewhere is received

Multiple: Any multiple types above may trigger a process

Parallel Multiple: Multiple triggers - ALL must occur to begin process+

START EVENTS EXERCISEWHICH TYPE OF EVENT TO USE?

1. Customer submit s an order to ABC corporation who fills the order. The process is “fulfill order” from ABC perspective.

2. You arrive at work and begin to analyze data from a report that was generated last week.

3. Five business days before the end of the month, a batch job starts preparing sales data for financial reports.

4. When your balance on your corporate travel and expense credit card reaches $20,000, you and your manager receive notices and you are no longer to make any more purchases. The process is “cut-off credit” from the Accounting Center’s perspective.

5. A message is posted on the corporate internet site that sign-up for a new sports program is now open. You click on the link and register to join a team.

BPMN END EVENTSNone: No specific result

Message: A message is sent to a participant at end of process (End message events can only send)

Error: An error is generated and thrown (some thing else must catch it); all active threads in process will be terminated

Cancel: Use within a transaction sub-process ONLY. Ends the transaction process and send a notify message to participants involved in transaction

Compensation: Activities identified will be compensated (reversed / undone).

Signal: A signal is broadcast (any process that can receive the signal will hear it and be triggered). Propagates to all processes, all levels

Terminate: All activities in the process end immediately without compensation or event handling. Does NOT propagate beyond [sub] process boundaries

Multiple: Multiple consequences, all of which will occur

Escalation: An escalation is thrown (something else must catch); all other active threads in process continue)

^

Words to listen for:Notify, confirm, completes, done,

end, send, submit

BPMN END EVENT EXERCISES

Parts are delivered to a plant which are put into bins at line side or in warehouse. When Sales finalizes a quote, the quoting system sends an email to the customer with the quote attached.A customer service representative receives a request for quote for a product. The analyst looks up the product, but the part doesn’t have a price in the system. You complete an adventure course and fire a flare to notify the adventure company you are ready to be picked up.

05/09/2023

BPMN INTERMEDIATE EVENT TYPESNORMAL FLOW (STAND ALONE)

None: no specific trigger

• Acts as a throw event (token immediately moves on)

• Indicates process change of state or milestone is reached

Message: sends or receives a message from other process or participant

• Throw = Send• Catch = Receive

Timer: acts as delay

• Specific time / date (every April 15)• Duration / cycle (every four hours)

Escalation: throws an escalation

Compensation: throws a compensation

• Token moves forward• Activities prior to compensation are

undone in reverse orderConditional: catch event

• Triggers if / when a condition becomes true

Link: connects two sections of a process

• Creates a loop within a process• Acts as “go to” directions • Show process continued on next page• May be

• Multiple source / throw events• Single target / catch event

Signal: used to communicate within or across pools

• Throw = send signal• Catch = watch for signal

Multiple:

• Throw = all events will get thrown• Catch = any one of the events will be

received and move tokenMultiple Parallel

• Catch = all of the events must be received before token moves

BPMN Submit SPA

^

+

Stand Alone Intermediate Events

Words to listen for:Milestone, status, Notify, confirm, Wait, Receives, escalates,

until, reaches, except, sometimes, errors,

BOUNDARY INTERMEDIATE EVENTS

Interrupts an activity*Activity does not fully completeWhen event occurs, a different path is takenCreates a race condition:

• Token arrives and activates both the activity and the event• If activity completes first, the token moves on, and the event won’t be activated• If the event is activated before the activity completes, the activity stops and flow is

redirected

* Compensation and escalation do NOT interrupt the activity

BPMN INTERMEDIATE EVENT TYPESATTACHED TO ACTIVITY BOUNDARY (EDGE MOUNTED)

Message: catch event• Redirects flow if message is

received

Timer• Specific time / date (every April 15)• Duration / cycle (every four hours)

Escalation• Catches the escalation • Does NOT interupt activity by default

Error: catch event• Error condition is thrown elsewhere

in process• Always interrupts activity

Cancel: catch event• Cancel trigger is thrown from end of

a transaction sub-process• Always interrupts activity

Compensation: • catches compensation event from

elsewhere• Does NOT interrupt activity• Can only be triggered after activity to

compensate has been completed

Conditional• Triggers if/when a condition becomes true

Signal: Catch only = Signal is received

• More general, larger scope, non-error condition than error event

Multiple• Catch = any one of events will redirect flow

Parallel Multiple• Catch = all of the events must be received

to redirect flow

^

+

Boundary Intermediate Events

TIMER EVENTS IN PRACTICETimers represent

• A specific date (Every January 1)• Duration (Every 6 hours)

• Clock starts when token arrives• Token leaves when timer goes off

• A relative time (Every Monday)

Timers are exact• Gateways should be used

if it’s a personal judgment call• Are NOT delays due to bad process design• Used primarily by systems / processes in execution

05/09/2023

MESSAGE EVENTS IN PRACTICEIn modeling for Analysis, Messages can represent:

• Phone call • Email • Fax• Service request in IT systems• Doorbell

Sequence flow should still be used to indicate hand-offs between roles within a process.

In modeling for execution• Messages can be used between activities to indicate status is complete

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BACK TO BPMN TASKS: REPEATED ACTIVITIES

05/09/2023

HIRING EXAMPLE:WHAT’S WRONG

05/09/2023

SEPARATE PROCESSES LINKED THROUGH INPUTS AND OUTPUTS

05/09/2023

BPMN Receive Resumes

Receive Resume

Determine whetherresume is for a

posted job

Resume [Received]

Job Postings

Review resume -search for basic

requirements

Resume for Posting?

Review resumefor potential

Forward resume to hiring manager

Basic requirements met?

Reply "sorry but no thanks" to candidate

Potential

Potential is not a formally defined policy, but is based on HR experience, current labor conditions, and general understanding of Navistar current and future hiring needs. This will vary by HR individual as well as time.

Resume has potential?

Store resume for furture use

Resume[In Review]

Resume [Rejected]

Resume[Filed]

yes

no

yes

no

no

BPMN Hiring Example

Hiring Manager

HR

Position [posted]

Post PositionPost Position

Evaluate ResumesEvaluate Resumes

Resume [Received]

Interview CandidateInterview Candidate

Receive ResumesReceive Resumes

Resume [Submitted]

Candidate

Identify what really TRIGGERS activity to beginIdentify what INPUTS are required to do activitiesIdentify OUTPUTS of activities

REPEATED ACTIVITIESProcesses are repeatable by definition

• Instance occurs each time trigger occurs

Activities can also be repeated• Re-Usable SubProcess:

• Subprocess / Task repeated once in many different process / sequence flows

• Different activities before and after• Sub-process that begins with a non-NONE start event

• Loops• Subprocess / Task repeated multiple times in same process

05/09/2023

LOOP TYPES:Loop Type

Gateway Standard Loop(Do-While or Do-Until)

Multiple Instance

Use •Repeat activities without preserving the previous results•Activities always repeat sequentially (do once, then maybe do again)• Loops cross multiple swim lanes

•Repeat one or more activities while preserving the data/results of the activities for future reference•Number of occurrences is not known prior to first instance•Activities always repeat sequentially (do once, then maybe do again)•Exceptions regularly occur

•Activities will occur a fixed number of times, and this number of times is known before the loop begins (based on data object)•Activities may repeat sequentially or in parallel

Pros Readily understood Visual indication of repeated activity No need to specify a loop condition

Cons • Difficult to represent exceptions• Open to misinterpretation• Unintended “execution” consequences

•No way to determine what the loop condition is without annotations

•No way to tell how many parallel instance or serial iterations are currently being performed (during execution) •Least intuitive

Words to Listen For”

•Escalate•Go back and update•Approve / Reject•Verify / Confirm

• Monitor• Until [an alarm goes off/status is

reached]• Again

• For each• For all• Until [the last one is done]

LOOPS IMPLICATIONSOne activity finishes before next activity begins

• Packaging of parts will not begin until all parts are picked. This may or may not be the actual case.

05/09/2023

BPMN gateways

Pick Part (for each pickticket in order file)

Pick Ticket

Package PartsConfirm Order

Order

OTHER BPMN ELEMENTSGroupsData ObjectsArtifacts

05/09/2023

GROUPSVisual representation onlyAids process discussionHas NO impact on process flow or execution

05/09/2023


«Group»

Activity A

Activity A Complete OK?

Activity B

Activity C

BPMN: DATA OBJECTSData Objects: Visual representation of artifacts used in a process

• Types:• Data Input: Data that is required by activities and processes in

order to complete• Data Output: Data produced by an activity or process

• Examples• Piece of [e-] paper

• Order for vehicle• Purchase order

• File• Spreadsheet on shared drive

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BPMN Prepares Solicitation

Ouput

Activity A

Input

ARTIFACTS“Modelers and tool vendors can extend BPMN concepts through the addition of new types of Artifacts”Should NOT impact process flowUse for additional detail

• Screen shots• Standard operating procedures• Secret decoder rings• Current business policies

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USE OF SYSTEMSModel as a lane if system activities are being documented

• Rules hardcoded in system today• Timing of batch jobs impact user

activities• Systems interactions need

understood

Model as a custom object associated with activities

• Associate user activities / business processes with applications

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BPMN UTO Process Map

Configure vehicle

Sales Tools

Submit SPA

Request Finance

BPMN UTO Process Map

Truck Order Database

EOFF

Assigns jobnumber

Batch Job Times

Collects batch oforders

Batch Job Times

Check for batch job times

Receivesorder

updates job step

TOP MODELING MISTAKES

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#3 STARTS ACTIVITIES WITH A NOUN

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INCORRECT CORRECT

BPMN Nouns

Strategy andVision

BPMN Nouns

DevelopsStrategy

Strategic Plan and Goals

Using only nouns makes it difficult for the reader to determine WHAT is HAPPENING. Start with strong verbs.

#2: HARD CODES BUSINESS RULES INTO PROCESS LOGIC

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Attempt to have connectors out of gateways labeled as yes or no, rather than labeled after a condition or expression (may not always be possible).Hard coding business rules or policies into process maps is equivalent to burying them in IT code. Identify if decisions are based on a policy (formal or informal). As part of the to-be, make sure a process exists for managing, updating, and communicating policies or rules.

INCORRECT CORRECT

BPMN Hard Codes Business Rules

«Lane» CSA

Assign SPA

Reviews deal

Number of trucks? Use sales

program

10 or more

<10

BPMN Hard Codes Business Rules

«Lane» CSA

AssignSPA

Reviewsdeal

Deal meet SPA policy minimum?

Use salesprogram

Refers toSPA

policy

SPA Policy

yes

no

#1 CONNECTS INDEPENDENT PROCESSES VIA SEQUENCE FLOW

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INCORRECT CORRECT

BPMN Connects Processes

PurchasingEngineering

Designs Part

Sources Part

Sequence flow indicates as soon as one activity finishes, the next one begins.Focus on what triggers an activity to start. Is the activity really a separate process that can be triggered by other events or activities? Are processes connected via shared data rather than a hand-off?

BPMN Connects Processes

EngineerSources Part

Designs Part

Manager

Part Database

Designs Part

ApprovesPart

Preparesrequest forproposal

Checks fornew parts

PROCESS MODELING GOVERNANCE


96

WHAT IS GOVERNANCE?

PROCESS MODELING GOVERNANCE• What tools / file formats?• What notations?

• What are corporate best practices• How do you specify levels of detail?• What needs to be included?• Who needs to review and approve for business context?• Who needs to review and approve for process modeling

context?