Business Process Management
Re: Standardization
• Introduction Module on Mapping
• Six Sigma Simplicity:
– What do you want to map?
– How do you want to map?
Drivers
• Business Process Management (BPM) is primarily a business
philosophy about people, the way they work together (their
business processes), the technology they use, and the
performance objectives that these processes underpin.
• BPM is the management of workflow, information, and interaction among
systems and people involved in a discrete activity - ultimately for delivery of
enhanced business performance through:
• cost reductions
• increased productivity
• ability to turn the business on a dime (agility)
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Standardization
• “To standardize a method is to choose out of the many
methods the best one, and use it.
• Today’s standardization, instead of being a barricade against
improvement, is the necessary foundation on which
tomorrow’s improvement will be based.
• If you think of ‘standardization’ as the best that you know
today, but which is to be improved tomorrow, you get
somewhere. But if you think of standards as confining, then
progress stops.”
• Henry Ford, 1926
Demonstration
NOW IS A GREAT TIME
TO PERFORM AN
OPERATION!!!
THE NORMAL TIME TO COMPLETE
THIS TASK IS 30 SECONDS
Work Instructions
Pick up a writing instrument
Get a clean sheet of paper
Draw the following figure:
1.
Draw the letter M at the top left
2.
Draw two letter Ws, one at the bottom left and right
3.
Draw an arc from the M towards the right
4.
Draw an arc from the arc to the bottom left W
5.
Draw an arc between the two Ws
6.
Draw a circle in the center left
7.
Draw an arc from the M to the tangent of the circle
8.
Draw an arc from the left W to the tangent of the circle
9.
Draw an arc halfway between the M and the circle
10.
Draw an arc halfway between the W and the circle
11.
Draw a cursive e near the top of the arc on the right
12.
Draw two dots in the middle of the circle
13.
Set writing instrument down
Demonstration
NOW IS A GREAT TIME
TO PERFORM ANOTHER
OPERATION!!!
THE NORMAL TIME TO COMPLETE
THIS TASK IS 30 SECONDS
Work Instructions w/ a Standard
•
•
•
•
•
Pick up a writing instrument
Get a clean sheet of paper
Draw the above figure
Set writing instrument down
Turn the paper over and wait
Need for Standardized Processes
Safety:
Standard processes promote safe behaviors and hazard
free conditions for predictable outcomes
Quality:
Standard processes produce predictable
results and predictable cycle times
Delivery:
‘Synchronized Production’ requires reliable lead
times based on predictable cycle times
Cost
Reductions:
Standardized processes are the
foundation of Continuous Improvement
Need for BPM Standardization
• Orchestrate high-level processes and manage the data
between systems
• Digitize Good Manufacturing Practices (GMP) / tasks
• Digitize Standard Operating Procedures and work instructions
• HACCP monitoring procedures and corrective action (Alarm
and event response, corrective action)
• Manual operation/ assembly error-proofing
• Task management
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Process Mapping - Definition and Purpose
• Business process mapping refers to activities involved in defining
–
–
–
–
what a business entity does
who is responsible
to what standard a business process should be completed
how the success of a business process can be determined
• Purpose for business process mapping is to assist organizations in
becoming more efficient
• A clear and detailed business process map assists us in determining
whether or not improvements can be made to the current process
Types of Maps and Symbols
• Several Options Available, i.e. – Linear Process Map (sequential)
– Deployment Flowchart (swim-lane)
– IDEF0 (inputs, outputs, controls, mechanisms)
• Most common symbols used:
Start/
End
Process
Begins/
Terminates
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Process
Step
Activity/
Task
?
Info
Query/
Decision/
Test
Document/
Report
Types of Maps and Symbols
• Most common flow lines used:
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Details
.
.
.
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Mapping Example – BPM (High level Model)
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Mapping Example - Block Diagram
Mapping Example - I / O
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Mapping Example - Parameter Diagram
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Mapping Example - Flowchart
Web System
Customer
Web System
Inventory Check on
website
Place Order
System Updates
Inventory
Order e-mailed to
Fulfillment
System returns ‘Out
Of Stock’ notice and
suggests alternative
No
Inventory
Available?
Yes
Customer charged
Web System
Accounting
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Mapping Example - Flowchart continued
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Mapping Example - Linear
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Mapping Example - Swim Lane
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Mapping Example - UML
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Mapping Example - Brown Paper
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Mapping Example - Value Stream
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Mapping Example – BPMN (Generic)
http://www.what-is-bpm.com/bpmn_aids/bpmn_aids.html
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BPMN Specification
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BPMN Elements
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BPMN Elements
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BPMN Elements
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BPMN Elements
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BPMN Elements
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BPMN Elements
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BPMN Elements
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Business Process Model and Notation
(Chap 7)
• BPMN provides business with
– the capability of understanding their internal
business procedures in a graphical notation
– the ability to communicate these procedures in a
standard manner
– a better way to facilitate understanding of
performance of collaborations and transactions
within and between organizations
– a standard for flowcharting for readability and
flexibility
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Mapping Example - BPMN
Private (internal) executable
business process
Mapping Example - BPMN
Public process represents interactions
between a private Business Process and
another Process or Participant
Mapping Example - BPMN
Collaboration depicts interaction
between two or more business entities
Mapping Example - BPMN
Choreographies are interactions that
represent a set (1 or more) of Message
exchanges, which involve two or more
participants
Mapping Example – Systems Approach
• On the “Academic Side”
•The 5 tools were (the links
refer to earlier posts): SODA
(Strategic Options Development
and Analysis), VSM (Viable
Systems Model), SSM (Soft
Systems Methodology), SD
(System Dynamics, worked
case), and CSH (Critical System
Heuristics)
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Regardless of Technique: Focus is on Value
Structured approach provides value throughout 5 areas (subsystems).
BPMN Organizational Benefits
•
•
•
Increase Accountability
– Track and monitor expenditures to ensuring deliverables are met
– Achieve a system of checks and balances, minimizing potential for fraud
– Affirm that all employees are aware of their responsibilities
Improve Reliability
– Improve reliability of information and its dissemination in a more timely manner
– Accurate information is critical in order to make important and time-sensitive
business decisions
– When business processes are properly recorded and monitored, it is easy to
locate the necessary data and quickly produce relevant reports
Simplify Regulatory Compliance
– Comply with labor laws to submitting SEC-mandated financial reports
– Business process management practices help organizations keep track of their
obligations, and ensure that they are in compliance with applicable standards
and legislation
– Avoid the potentially costly repercussions of non-compliance
BPMN Organizational Benefits
•
•
Avoid Waste
– Because business process management involves assigning and tracking
corporate resources, there is generally far less waste than in companies that
do not actively monitor those resources
– Organizations that follow best practices will find that they can dramatically
reduce waste, enhance efficiency and, ultimately, boost profitability
– Regular performance reviews can identify possible instances of waste and
inefficiency, and continuous process improvements can help to address them
Promote Safe Working Conditions and Protect Company Resources and
Information
– Another benefit of business process management is its capacity to enforce
safety and security measures
– By documenting proper procedures and mandating full compliance with
them, organizations can help ensure staff safety and protect company assets
– including physical resources and confidential information – from theft, loss
or misuse
A Little BPMN Humor!
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Review
• Business Process Management (BPM) is primarily a business
philosophy about people, the way they work together (their
business processes), the technology they use, and the
performance objectives that these processes underpin.
• BPM is the management of workflow, information, and interaction among
systems and people involved in a discrete activity - ultimately for delivery of
enhanced business performance through:
• cost reductions
• increased productivity
• ability to turn the business on a dime (agility)
44