MTAT.03.231
Business Process Management (BPM)
(for Masters of ETM)
Lecture 3: Process Implementation,
Monitoring and Controlling
Marlon Dumas
marlon.dumas ät ut . ee
Agenda for Today
Time
Contents
10.00-11.30
Review of homework
11.45-13.15
Process Implementation
13.15-14.15
Lunch break
14.15-15.45
Process Monitoring and Mining
16.00-17.30
Process Measurement and Controlling
2
Another View on Process
Improvement
Business Process Lifecycle Management
• Process identification
•
•
•
•
•
•
Process modelling (as-is)
Process analysis
Process improvement (to-be)
Process implementation
Process execution
Process monitoring/controlling
4
4
Process Improvement
- Object-oriented Approaches (1/2) • Elimination of object types
– secondary objects (copies, reports)
– e.g. prebilling
• Elimination of objects
– statistical checks in goods receipt or invoice verification
• Substitution of objects
– credit vouchers instead of invoices (Hammer: Ford)
(Evaluated Receipt Settlement)
• Digitalisation of objects
– document management, EDM-systems
– Microsoft‘s invoicing process
© Michael Rosemann
5
Process Improvement
- Object-oriented Approaches (2/2) • Harmonisation of objects
– Unitisation
– Logistical units (e.g. pallets)
• Separation of objects
– Differentiation of standard-cases and exceptions
– Increased time-/cost-homogenity
• Process oriented optimisation of objects
– Design for process
– Design of products meets needs of production,
assembly, logistics and recycling
© Michael Rosemann
6
Process Improvement
- Function-oriented Approaches (1/2) • Elimination of functions
– Lean Management-approach
– Outsourcing
• Integration of functions (unification)
– Job Enlargement (horizontal compression)
• Process Owner
• Case manager / case worker
– Job Enrichment (empowerment)
• delegation of decisions
© Michael Rosemann
7
Process Improvement
- Function-oriented Approaches (2/2) • Change process direction
– pull instead of push
– Kanban, Just-in-time
• Automation of functions
– Basic idea of IT-use
– Especially: Automation of control flow (workflow mgmt)
• Parallel routing of functions
– create ‚natural order‘
– delinearize processes e.g. simultaneous/concurrent
engineering
© Michael Rosemann
8
Process Improvement
- Resource-oriented Approaches • In general: extend the control sphere of a (human, technical)
resource to its limits
– organisational:
- case worker/process owner
- reduced interfaces
- delegation of responsibility
– IT:
- integration of different media
- reduced media changes (e.g. Enterprise System)
- standardisation (e.g. Web services)
• Optimal synchronisation of demand and offer
© Michael Rosemann
9
Process Improvement
- Another Classification Resource
Function/
Process
Process Object
Abandon /
eliminate
Downsizing
Lean Management
e.g. copies,
reports
Outsource/
off-shore/
self-service
External service
provider
Business process
outsourcing
Modular sourcing
Pull principle
Management by
exception
Kanban
reports
Streamline
Training
Re-design of
function
Re-design of
document
Automate
Increased use of
IT
Workflow
management
Digitalization
Natural order
© Michael Rosemann
Simultaneous
engineering
Multi-user access
10
Process Improvement
- Another Classification Resource
Function/
Process
Horizontal
integration
Job enlargement
Standardise
Standardised roles (Global)
Integration
XML, ontologies
Eliminate
bottleneck
OPT
Smoothen
demand
Multi-user access
Specialisation/
decentralisation
Specialised roles
Design alternative
cases
Design of variants
Empowerment
Job enrichment
Integrated quality
assurance
Integration of
delivery note and
invoice
Centralisation
Shared service
Process
consolidation
Elimination of
variants
© Michael Rosemann
Workflow
management
Process Object
Unitization
11
Process Implementation
Business Process Lifecycle Management
• Process identification
•
•
•
•
•
•
Process modelling (as-is)
Process analysis
Process improvement (to-be)
Process implementation
Process execution
Process monitoring/controlling
13
13
Harmon’s Process-centric Enterprise
Architecture
14
Harmon (2004)
Process Implementation
• Organisational Change and Enablement
– User Participation
– User Training
– Change Planning and Management
• IT Implementation
– Custom Software Application
• In-house development
• Outsourced
– Packaged Enterprise System
– Workflow Management System (WfMS / BPMS)
15
User Participation/Involvement
1. Buy-in, not only commitment
2. Select first processes carefully
3. Involve users and sponsors
4. Highlight business impact
5. Provide short-term benefits and long-term objectives
6. BPM must be in their self-interest
7. Proof of concept
8. Communicate (internal) success stories
9. Identify and coach BPM champions
10. Communication is different to consensus
16
Management of User Participation in
Processes
17
Harmon 2004
IT Implementation – Packaged
Enterprise Systems
Typically classified into:
• ERP: Enterprise Resource Planning, including
– Manufacturing, inventory control, procurement, financials, human
resources
• SCM: Supply Chain Management, including
– Material acquisition (forecasting, planning), logistics/transportation
– Supplier relationship management
• CRM: Customer Relationship Management
– Marketing, lead management, sales
• These functions can come together, or acquired separately, e.g.
– E.g. Peoplesoft for HR (now Oracle), SAP for manufacturing and SCM,
Oracle Apps for financials, Salesforce for CRM
18
What is an ERP System?
• Multi-module application that helps a company manage
key parts of its business in an integrated fashion.
• Key features include:
– standardized environment with shared database independent of
applications and integrated applications
– enables information flow across organizational boundaries to
support common transactions and business processes
– intended to be customized for specific companies
• database configuration
• bolt-on software
19
ERP System
Legacy
Systems
Data Warehouse
ERP System
On-Line Analytical Processing
(OLAP)
Bolt-On Applications
(Industry Specific Functions)
Suppliers
Customers
Core Functions [On-Line Transaction Processing (OLTP)]
Sales
&
Distribution
Business
Planning
Shop Floor
Control
Logistics
Operational Database
Customers, Production,
Vendor, Inventory, etc.
© Sumit Lodhia
20
Risks Associated with ERP Implementation
• Pace of implementation
– ‘Big Bang’--switch operations from legacy systems to ERP in
a single event
– ‘Phased-In’--independent ERP units installed over time,
assimilated, and integrated
• Opposition to change
– user reluctance and inertia
– need of upper management support
• Choosing the wrong ERP
– goodness of fit: no one ERP product is best for all industries
– scalability: system’s ability to grow
21
Risks Associated with ERP Implementation …
• High cost and cost overruns
•
•
•
•
training
testing and integration
database conversion
Business rules conversion (cf. failed Queensland Health
Payroll and Roster Implementation.)
• Disruptions to operations
– ERP implementations usually involve major process changes
– Need to align ERP-imposed processes with existing processes
22
Business Process Execution Engines
Big Vendors
• Oracle SOA Suite
• IBM Websphere Process
Server
• MS BizTalk
• MS Windows Workflow
Foundation
• SAP NetWeaver BPM
Other closed-source
•
•
•
•
Savvion
BizAgi
Metastorm BPM
TIBCO
ActiveMatrix BPM
Commercial
Open-Source
• Intalio
• ActiveBPEL
• jBPM
Community
Open-Source
• YAWL
• Enhydra
Shark
23
Danske Bank: Customer Package
Process
Create Card
Customer
Create Account
Advisor
Juni 2003
August 2003
Create Credit
October 2003
December 2003
Marts 2007
Introduction of Customer packages.
Word template to collect info
24
© Steen Brahe, Danske Bank
Danske Bank: Customer Package
Process
Create Card
Customer
Create Account
Email
Advisor
Juni 2003
Backoffice workers
August 2003
October 2003
December 2003
Create Credit
Marts 2007
Backoffice group created
Handles the creation process
25
© Steen Brahe, 2007
Danske Bank: Customer Package
Process
Create Card
Customer
Not valid
Create Account
Advisor
Juni 2003
August 2003
Case Transfer System
October 2003
Backoffice workers
December 2003
Create Credit
Marts 2007
Case Transfer System
Automatic validation and transfering
26
© Steen Brahe, 2007
Danske Bank: Customer Package
Process
Create Card
Create Account
Backoffice workers
Customer
Not valid
XML
Advisor
Case Transfer System
Create Credit
Backoffice workers
Juni 2003
August 2003
October 2003
December 2003
Marts 2007
Workflow enabled creation process v. 1
Automatic process control, 0% automated activities
27
© Steen Brahe, 2007
Danske Bank: Customer Package
Process
Service
A
Service
B
Service
C
Customer
Not valid
XML
Advisor
Case Transfer System
Create Credit
Backoffice workers
Juni 2003
August 2003
October 2003
December 2003
Marts 2007
Workflow v. 6
80% automated activities
28
© Steen Brahe, 2007
Danske Bank – System Architecture
Executable Business Process
A2
A1
A4
A3
WSDL A1
WSDL A2
WSDL A3
WSDL A4
Service Bus / Container
App1: COBOL
App2: PL1
App3: Java
App4: C#
29
© Steen Brahe, 2007
Workflow Technology in a Nutshell
Animation by Wil van der Aalst, Vincent Almering and Herman Wijbenga
30
Worklist
Work Item
http://www.ahrq.gov
31
The YAWL Workflow System
Persisted Data
Event Log
YAWL Engine
Interfaces
Process Designer
Process
Repository
Other Custom Services
Org Data
Event Logs
Resource Service
Admin Users Applications
© YAWL foundation
32
YAWL Notation
YAWL
BPMN
33
Demo: Designing a YAWL net
34
Resource Allocation in YAWL
Org DB
4
resource
manager
resource 1
5
resource 2
3
completed work 1
items
YAWL engine
2
resource n
allocated work
items
YAWL nets
35
Path of a Work Item in YAWL
36
Default YAWL Worklist Handler
37
Process Monitoring & Controlling
Business Process Lifecycle Management
• Process identification
•
•
•
•
•
•
Process modelling (as-is)
Process analysis
Process improvement (to-be)
Process implementation
Process execution
Process monitoring/controlling
39
39
Process Monitoring and Controlling
Process
design
Strengths/
weaknesses
Process
design
Implementation
Process
execution
(Re-)
implementiation
Process
Monitoring &
Controlling
Analysis
Process
execution
© Michael zur Muehlen
40
Types of Process Monitoring
• Runtime Monitoring (Business Activity Monitoring)
– Viewing the load of the process
– Identifying problematic cases
– Identifying late cases (risk of missing deadlines), etc.
• Post-mortem Monitoring (aka Business Process Analytics)
– Performance KPIs: cycle times, resource utilization, error rates, …
– Identification of bottlenecks
• See for example:
– BizAgi BAM: http://wiki.bizagi.com/en/index.php?title=Analysis_Reports_BAM
– Analytics: http://wiki.bizagi.com/en/index.php?title=Analysis_Reports_Analytics
41
Process Monitoring: Dashboards
Process Cycle
Time
of Order
Processing
Process
Frequency
of Order
Processing
Process Cycle Time
of Order Processing
split up to different
Plants
IDS (2003)
42
Process Mining Tools
• ARIS Process Performance Manager
• Pallas Athena ReflectOne
• ProM (open-source)
44
Process Mining – The ProM Framework
supports/
controls
information
system
operational
process
records
refers to
models
configures
process
discovery
(un)desired
properties
process
models
conformance
testing
event
logs
log-based verification
www.workflowcourse.com
45
Example: Event log (audit trail)
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Case 21
Description
Event
User
yyyy/mm/dd hh:mm
---------------------------------------------------------------------------Start
swdemo@staffw_edl 2006/02/05 15:00
Register order
Processed To swdemo@staffw_edl 2006/02/05 15:00
Register order
Released By
swdemo@staffw_edl 2006/02/05 15:00
Prepare shipment
Processed To swdemo@staffw_edl 2006/02/05 15:00
(Re)send bill
Processed To swdemo@staffw_edl 2006/02/05 15:00
(Re)send bill
Released By
swdemo@staffw_edl 2006/02/05 15:01
Receive payment
Processed To swdemo@staffw_edl 2006/02/05 15:01
Prepare shipment
Released By
swdemo@staffw_edl 2006/02/05 15:01
Ship goods
Processed To swdemo@staffw_edl 2006/02/05 15:01
Ship goods
Released By
swdemo@staffw_edl 2006/02/05 15:02
Receive payment
Released By
swdemo@staffw_edl 2006/02/05 15:02
Archive order
Processed To swdemo@staffw_edl 2006/02/05 15:02
Archive order
Released By
swdemo@staffw_edl 2006/02/05 15:02
Terminated
2006/02/05 15:02
46
W.v.d.Aalst (2003
Process discovery
Prepare
shipment
Register
order
Ship
goods
(Re)send
bill
Archive
order
Receive
payment
process
discovery
www.workflowcourse.com
Contact
customer
47
Conformance testing
Prepare
shipment
Register
order
Ship
goods
(Re)send
bill
Archive
order
Receive
payment
Requirement
for material
has arisen
Purchase
Requisition
Contact
customer
Requisition
released
for scheduling
agreement
schedule/SA release
Purchase
requisition
released
for purchase
order
Purchasing
Decide To Buy Computer
Order Machine
Goods
received
Choose Model
[desktop]
[bad reviews]
Inbound
delivery
entered
Purchase
order
created
Material
is released
Invoice
received
Save Money
Read Test Reviews
Order Screen
[laptop]
[enough]
Receive Machine
Choose Operating System
Receive Screen
[reviews ok]
[laptop]
[desktop]
[windows]
Order Windows
Goods
Receipt
[linux]
Goods
receipt
posted
Download Linux
Work Hard
Receive Windows
Check Bank Account
Set Up And Connect
Open Lid
[not enough]
Warehouse/
Stores
Plug In And Power On
Install Operating System
TO item
confirmed
without
differences
www.workflowcourse.com
Transfer
order
item
is confirmed
Invoice
Verification
48
Payment
must
be effected
Log based auditing
Is the “four-eyes” principle
between activity create PO and
approve PO being respected?
Are there cases where an invoice is
paid for an unapproved PO?
www.workflowcourse.com
49
ProM Demo
http://www.processmining.org/
www.workflowcourse.com
50
Process Controlling
• Collation and analysis of runtime data
• Comparison of actual- and target data
• Active impact on current process execution as well as
future process modeling (target)
Goal:
Improvement of an enterprise‘s adaptability
to changes in the environment and in the
enterprise itself
51
Process Controlling
 Objective:
 Establish a system for controlling the process and providing
feedback to the people involved
Establish Control Points
• Control points are activities such as
– Inspection, verification, auditing, measuring, counting…
– Usually considered business value adding
• Without control points and a control system the only way
of assessing process performance is customer feedback
 The process ends up in a reactive mode
 Poor quality is discovered too late
• Location of control points is determined by
– Criticality – impact on customer satisfaction
– Feasibility – physically and economically possible
Laguna & Marklund
52
Process Controlling (cont.)
Develop and Implement Measurements
• Involves answering the questions
1.What is to be measured and controlled (Ex. FedEx)?
2.What is currently measured (available data)?
3.Can a business case be made for a new measurement system?
4.What is an adequate sampling method, sampling size & frequency?
• Measurements should be meaningful, accurate and timely
– Statistical and graphical tools needed to turn data into information.
• Five measurement categories: Measures of…
–
–
–
–
–
Conformance (to given specifications)
Response time (lead-time, cycle time)
Service levels (degree of availability, service reliability)
Repetition (frequency of recurring events such as rework)
Cost (Quality, PAF, internal and external failure costs)
Laguna & Marklund
53
Performance Measures in SCM
Overall Inventory Turns
Annual cost of goods sold (company info)  average total inventory
Raw Materials Inventory Turns
(manufacturing companies only)
Annual cost of raw materials purchased (3)  average raw material
inventory
Work-in-Process Inventory Turns
(manufacturing companies only)
(Annual cost of raw materials purchased (3) + Annual cost of conversion
(4))  average work in process inventory
Finished Goods Inventory Turns
Annual cost of goods sold (company info)  average finished goods
inventory
Average safety stock  total inventory
Percentage of safety stock
Purchase order cycle time (in days for
purchasing department and excludes
supplier lead time)
Average amount of time (in days) elapsed from point of intention to
place order to receipt of order by vendor
Supplier lead time
Average amount of time (in days) elapsed from point of order to delivery
Supplier on-time delivery
Percentage of orders supplier delivers on scheduled due date
Find more at:
http://www.exinfm.com/workshop.html
54
What to Measure?
The Balance Scorecard Framework
After Kaplan & Norton (1992)
55
(Investments)
Financial
Learning
& Growth
Internal Process
Stakeholder
Strategy Map: Capture a Cause Effect
Relationship from the Bottom Up
Improved Returns
on Investments
Economic
Model Process
Expand Global
Facility Reach
Facilities and
Fixed Assets
http://www.exinfm.com/
More rapid and
accessible services
Reduce Re-Activities
thru ABC
Leadership
Development
Human Capital
Establish WebBased Self Services
Knowledge
Management
IT Infrastructure
56
Examples of Measurements by Perspective
Stakeholder / Customer
•
•
•
•
Current customer satisfaction level
Improvement in customer satisfaction
Customer retention rate
Frequency of customer contact by
customer service
• Average time to resolve a customer
inquiry
• Number of customer complaints
Learning and Growth
•
•
•
•
•
•
Percentage employee absenteeism
Hours of absenteeism
Job posting response rate
Personnel turnover rate
Ratio of acceptances to offers
Time to fill vacancy
http://www.exinfm.com/
Internal Processes
• Number of unscheduled maintenance calls
• Production time lost because of maintenance
problems
• Percentage of equipment maintained on
schedule
• Average number of monthly unscheduled
outages
• Mean time between failures
Financial / Investments
• % of facility assets fully funded for
upgrading
• % of IT infrastructure investments
approved
• # of new hire positions authorized for
filling
• % of required contracts awarded and in
place
57
Internal Process
Stakeholder
Extend the Strategy Map with Measures,
Targets and Initiatives
Strategy Map
Faster Service Access
Self Service
Applications
Lean Processes
L&G
Objective
Description
Eliminate waste,
reworks, and
other errors in
our processes
Process and Value
Map Analysis
Investments
Detailed
statement of
what is critical to
successfully
achieving the
strategy
How success in
achieving the
strategy will be
measured and
tracked
Measure
Number of
Reworks
The level of
performance
or rate of
improvement
needed
Target
2 per setup per
month each
Outlet Office
Key action
programs
required to
achieve
objectives
Initiative
Lean / Six
Sigma
Web Enable
Technologies
Invest in IT
http://www.exinfm.com/
58
Alignment of Scorecard Components
Make sure the components of your scorecard fit together. We want to
create a tight model for driving execution of your strategy.
Goal
Achieve
Agency
operational
efficiencies
with best
practices in
the private
sector
Objective
Measurement
Reduce
Operational
Service Costs by
50% over the
next 5 years
Cost per Outlet
Office, Cost per
Region, Cost
per FTE
5% - Year 1
10% - Year 2
15% - Year 3
Activity
Based
Costing /
Management
Reduce identified
re-activities
within primary
processes by
80% over the
next 3 years
Waste Volume
Charts, Rework
Tracking, Cycle
Time End to End
in S-LX (5 of 7
Regions)
Waste stream
reductions of
5% each year,
Reworks cut in
half for next 3
years, cycle
time cut by 75%
Lean / Six
Sigma
http://www.exinfm.com/
Target
Initiative
59
Exercise
• June 2009 exam, question 2 (Masters of ETM
version)
60
Guidelines for Performance Measures
• At least one measurement per objective.
• Measurements define or explain objectives in
quantifiable terms:
Vague => We will improve customer service
Precise => We will improve customer service by
reducing response times by 30% by
year end.
• Measurements should drive change and encourage
the right behavior.
• Should be able to influence the outcome.
http://www.exinfm.com/
61
Benchmarking: SCORcards
T. Gulledge & T. Chavusholu: “Automating the construction of supply chain
key performance indicators”, Industrial Management & Data Systems, 2008.
62
Process Controlling (cont.)
Performing Feedback and Control
• Important for stabilizing and improving the process
• Objectives of control/corrective action are
– Regulation to maintain a certain performance level
– Improvement aiming at reducing variability or raising the average
performance level (see for example Six Sigma)
• Feedback is an important enabler for corrective action
– People in the process need to understand how their actions affect
the overall process and its performance
– Feedback should be constructive and non-punitive
• Constructive feedback of course!
– Makes people feel that they matter
– Encourages involvement and commitment
Laguna & Marklund
63
Six Sigma Quality Programs
• Six Sigma is originally a company wide initiative at Motorola
for breakthrough improvement in quality and productivity
– Launched in 1987
• The ongoing success of Six Sigma programs has attracted
a number of prestigious firms to adopt the approach
– Ex. Ford, GE, AMEX, Honeywell, Nokia, Phillips, Samsung, J.P.
Morgan, Maytag, Dupont…
 Broad definition of Six Sigma programs
“A company wide strategic initiative for process improvement in
both manufacturing and service organizations with the clear
objective of reducing costs and increasing revenues”
– Fierce focus on bottom-line results
Laguna & Marklund
64
Technical Definition of Six Sigma
•
•
Reduce the variation of every individual process to render no more
than 3.4 defects per million opportunities
Assuming the process output is normally distributed with mean  and
standard deviation  the distance between the target value and the
closest specification limit is at least 6  and the process mean is
allowed to drift at most 1.5  from the target
 - 1.5
Lower Specification Limit
(LSL)
4.5σ
6σ
Laguna & Marklund

  1.5
Target Value (T)
1.5 1.5
Upper Specification Limit
(USL)
4.5
6σ
65
The Six Sigma Cost or Efficiency
Rationale
• Reducing costs by increasing process efficiency has an
immediate effect on the bottom line
– To assure worker involvement Six Sigma strives to avoid layoffs
The Six Sigma
Efficiency loop
Variation
Improvement projects
Commitment
Cycle Time
Laguna & Marklund
Reduced Costs
Increased Profits
Yield
66
The Six Sigma Cost or Efficiency
Rationale
• Based on the dimensions of variation, cycle time & yield
Variation
• Can be divided into two main types
1. Common cause or random variation
2. Special cause or non-random variation
• Non-random variation
– Relatively few identifiable root causes
– First step in reducing the overall variation is to eliminate nonrandom variation by removing its root causes
• Random variation
– The result of many different causes
– Inherent in the process and can only be affected by changing
the process design
Laguna & Marklund
67
The Six Sigma Cost or Efficiency
Rationale
Variation (cont.)
• Important concepts to understand the impact of variation
– Dispersion
– Predictability
– Centering
• Dispersion
– Magnitude of variation in the measured process characteristics.
• Predictability
– Do the measured process characteristics belong to the same
probability distribution over time?
– For a predictable process, dispersion refers to the width of the pdf.
• Centering
– How well the process mean is aligned with the process target value
Laguna & Marklund
68
The Six Sigma Cost or Efficiency
Rationale
Variation (cont.)
•
•
Ideally the process should be predictable, with low
dispersion, and well centered
Standard approach for reducing variability in Six Sigma
programs
1. Eliminate special cause variation to reduce overall
dispersion and improve predictability
2. Reduce dispersion of the predictable process
3. Center the process to the specified target
•
Six Sigma use traditional tools for quality and process
control/analysis
– Basic statistical tools for data analysis
– The 7 QC tools
Laguna & Marklund
69
The Six Sigma Cost or Efficiency
Rationale
Cycle time and Yield
• Cycle time (lead-time, response time)
– The time a job spends in the process
• Yield (productivity)
– Amount of output per unit of input or per unit time
• Improvement in cycle time and yield follow the same
tactic as for variation
– Gain predictability, reduce dispersion and center to target
• The target is usually broadly defined as
– Minimize cycle time and Maximize yield
• Six Sigma principle
– Improvement in average cycle time and yield should not be
made at the expense of increased variation
Laguna & Marklund
70
The Six Sigma Revenue or
Effectiveness Rationale
• Determinants of the company’s revenues
– Sales volume closely related to market share
– Sales prices
 Revenues contingent on how well the
firm can satisfy the external customers’
desires
 An important Six Sigma Success factor is
the focus on internal and external
customer requirements in every single
improvement project
Laguna & Marklund
71
The Six Sigma Cost & Revenue
Rationale
Variation
Improvement projects Customer satisfaction
Commitment
Increased Market
Share & potentially
higher prices
Reduced Costs
Increased Profits Increased Revenues
Cycle Time
Laguna & Marklund
Yield
72
The Six Sigma Framework
 Centered around a disciplined and quantitatively
oriented improvement methodology (DMAIC)
– Define, Measure, Analyze, Improve, Control
Top Management Commitment
Training
Improvement Methodology
Define
Measure
Analyze
Improve
Control
Measurement System
Stakeholder Involvement
Laguna & Marklund
73
Six Sigma Success Factors
• The bottom line focus and big dollar impact
– Encourages and maintains top management commitment
• The emphasis on - and consistent use of - a unified and
quantitative approach to process improvement
– The DMAIC methodology provides a common language to share
experiences and successes across the organization
– Creates awareness that decisions should be based on factual data
• Emphasis on understanding & satisfying customer needs
– Creates focus on doing the right things right
– Anecdotal information is replaced by factual data
• Combination of right projects, right people and right tools
– Careful selection of projects and people combined with hands on
training in using statistical tools in real projects
Laguna & Marklund
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Recap: The Layers of BPM Activities
BPM Setup
Strategic
Alignment
BPM
Governance
BPM
Methodology
Process-aware
Infom. Systems
Culture &
People
Process
Measurement
Process
Analysis
Process
Improvement
Process
Training
Process
Testing
Change
Management
Process
Perform. Mgt.
Process
Controlling
Process Analysis
Process
Identification
Process
Modelling
Process Implementation
Lean/
Six
Sigma
Process
Configuration
Process
Development
Process Execution and Controlling
Process
Execution
Process
Monitoring
Process
Mining
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Project
(see project description on the course
web page)
Readings
• P. Harmon. Business Process Architecture and
the Process-Centric Company, BPTrends
Newsletter, March 2003.
http://tinyurl.com/c88rlp
• P. Harmon. Business Processes at a New
Company: What Do You Do First?. BPTrends
Newsleter, October 2004.
http://tinyurl.com/cfckrf
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