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PROCESS elementary

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PROCESS elementary

  1. 1. A presentation on process and business process modeling… … “If you can't explain it simply, you don't understand it well enough.” Albert Einstein Michael A. Evens – Creative Consulting michael_evens@unforgettable.com August 2015 – Updated
  2. 2. WHAT? …what is a process and what it’s not WHY? …why we define, design and model HOW? …process modeling techniques EXAMPLES …seeing helps in understanding METHODOLOGIES …Six Sigma, CMMI, ISO, etc. CONCLUSIONS …repeatable and successful PROCESS: elementary PRESENTATION TOPICS:
  3. 3. WIKIPEDIA (2013) says… Process… WHAT? Miscellaneous Definitions …“a process, business process or business method is a collection of related, structured activities or tasks that produce a specific service or product (serve a particular goal) for a particular customer or customers.
  4. 4. RUMMLER & BRACHE (1995) says… Process… WHAT? Miscellaneous Definitions …“a definition clearly encompasses a focus on the organization’s external customers, when stating that… a business process is a series of steps designed to produce a product or service.
  5. 5. DAVENPORT (1993) defines a process as… Process… WHAT? Miscellaneous Definitions … ”a structured, measured set of activities designed to produce a specific output for a particular customer or market.
  6. 6. JOHANSSON et al. (1993) says… Process… WHAT? Miscellaneous Definitions … “a process is a set of linked activities that take an input and transform it to create an output.”
  7. 7. WE, CREATIVE CONSULTING (2013) say… Process… WHAT? Miscellaneous Definitions …in the context of this presentation, we will expand on this definition to include… “a repeatable set of activities documented to achieve a consistent result, output, product, or service …preferably successful.”
  8. 8. There are three basic types of processes: 1. Management Processes 2. Organizational Processes 3. Support Processes (or Sub-Processes) NOTE: Exceptions exist to these basic categorizations, but for the purpose of this presentation we are keeping definitions simple. Process… WHAT? 3 Types of Processes
  9. 9. 1. MANAGEMENT PROCESSES Process… WHAT? 3 Types of Processes …a Management Process is a process of planning, controlling, organizing and leading execution of any type of activity, such as a project (e.g. project management process), other process or group of processes.
  10. 10. 2. ORGANIZATIONAL PROCESSES Process… WHAT? 3 Types of Processes …Operational Processes are those that encapsulate the core of the business and create the primary value stream. Examples include budgeting, purchasing, manufacturing, advertising, marketing, and sales.
  11. 11. 3. SUPPORTING PROCESS (or SUB-PROCESS) Process… WHAT? 3 Types of Processes …a Supporting process supports the core processes. Examples may include technical support, accounting, call center, and recruitment.
  12. 12. Process… WHAT? Components and Characteristics Processes have many components and characteristics outside of what we have listed, but notice the word “must” in each of the items described. A process would not be a process without the following musts:
  13. 13. INPUT / OUTPUT Process… WHAT? Components and Characteristics …a process must have clearly defined boundaries, input and output. Similar to following the recipe for baking a cake, if you follow a defined process, over-and-over, you will achieve a constant result.
  14. 14. CUSTOMER Process… WHAT? Components and Characteristics …a process must have a recipient of the process' outcome, a customer.
  15. 15. ACTIVITIES (or STEPS) Process… WHAT? Components and Characteristics …a process must consist of activities that are ordered according to their position in time and space. If the steps in the process or recipe are skipped or repeated, the process will fail to provide the desired result. If you neglect to cook the cake, it won’t become cake.
  16. 16. DECISIONS Process… WHAT? Components and Characteristics … there are points in many processes that require a judgment or decision to be made. Using the cake recipe analogy, when the time comes where most cakes have achieved the desired degree of doneness… there is a test. A yes or no decision must be made. Bake the cake longer or take it out of the oven.
  17. 17. ORGANIZATION Process… WHAT? Components and Characteristics …a process cannot exist in itself; it must be embedded in an organizational structure.
  18. 18. BUSINESS PROCESS MODELING Process… WHY? Why define processes or do modeling? Processes don’t need to be modeled. However… …there are many benefits in knowing what a process model is, what it can do for you and how it can benefit your organization.
  19. 19. BUSINESS PROCESS MODELING Process… WHY? Its beginnings were in capital/profit-led business, but the methodology is applicable to any organized activity. That is …any BUSINESS …any ORGANIZATION …any ORGANIZED ACTIVITY.
  20. 20. BUSINESS PROCESS MODELING Process… WHY? …Business Processes Modeling is designed and developed to add value for the customer and should not include unnecessary activities.
  21. 21. BUSINESS PROCESS MODELING Process… WHY? …the outcome of a well designed business process is increased effectiveness (value for the customer) and increased efficiency (less costs for the company).
  22. 22. BUSINESS PROCESS MODELING also helps with Process… WHY? • Communication and Comprehension • Understanding / Visual Depiction • Accountability • Reliability • Problem Solving • Breaking Downs Barriers
  23. 23. BUSINESS PROCESS MODELING also helps with Process… WHY? • Circumventing Departmental Autonomy • Avoiding Waste • Operational Ambiguity • Effectiveness…Satisfaction • Efficiency…Cost Reduction…Productivity • Process Improvement
  24. 24. BUSINESS PROCESS MODELING also helps with Process… WHY? • Quality / Consistency / Compliance • Reporting of Performance • Transparency • Aligning Operations with Strategy • Control • Competitive Advantage
  25. 25. BUSINESS PROCESS MODELING & NOTATION Process… HOW? There are many kinds of tools and techniques available to help in defining a business process or Business Process Model (BPM), such as computer software applications. But, the basics can also be achieved by using a pen and paper or a bunch of sticky notes.
  26. 26. BUSINESS PROCESS MODELING & NOTATION Process… HOW? In some cases, pen, paper and sticky notes are more effective ways of creating and communicating fundamental ideas than computers. Computers can get in the way and can exclude people. Defining process requires people.
  27. 27. UML and BPMN Process… HOW? Process Modeling Notation (BPMN) …Unified Markup Language (UML) provides a plethora of behavioral models which are useful in modeling and it has become a familiar and useful tool to many in all areas of business.
  28. 28. UML and BPMN Process… HOW? Process Modeling Notation (BPMN) …Recently, process modeling vendors joined together to create a new Business Process Management Notation (BPMN) administered by the Object Management Group.
  29. 29. UML and BPMN Process… HOW? Process Modeling Notation (BPMN) …today, most methodologies – like the BPM vendors – use the BPMN notations.
  30. 30. Process… HOW? Modeling Elements (Notation) Understanding MODELING ELEMENTS for business owners, users and developers, simplifies the understanding of business, business flow and process…
  31. 31. Process… HOW? Modeling Elements (Notation) Models consist of simple diagrams constructed from a limited set of graphical elements for consistency in communication… The following will describe some of the most common elements:
  32. 32. Process… HOW? Modeling Elements (Notation) ACTIVITIES (or Steps) An activity is work that is performed within a business process and is represented by a rounded rectangle. Get MY Information Change MY Information
  33. 33. Process… HOW? Modeling Elements (Notation) EVENTS An event is something that happens during the course of a business process which affects the sequence or timing of activities of a process. Start Intermediate End
  34. 34. Process… HOW? Modeling Elements (Notation) GATEWAYS Gateways are used to control how sequence flows converge and diverge within a process. Gateways can represent decisions, where one or more paths are disallowed, or they can represent concurrent forks.
  35. 35. Process… HOW? Modeling Elements (Notation) GATEWAYS Inclusive / Exclusive: An Inclusive Gateway (Inclusive Decision) can be used to create alternative but also parallel paths within a Process flow. Unlike the Exclusive Gateway, all conditions are evaluated… Inclusive Exclusive
  36. 36. Process… HOW? Modeling Elements (Notation) GATEWAYS Parallel: …used to synchronize (or combine) parallel flows and to create parallel flows without checking any conditions. Parallel
  37. 37. Process… HOW? Modeling Elements (Notation) GATEWAYS Complex: …used to model complex synchronization behavior (i.e. incoming and outgoing flows vary). Complex
  38. 38. Process… HOW? Modeling Elements (Notation) GATEWAYS Event Based / Exclusive Event Based: …a branching point in the Process where the alternative paths that follow the gateway are based on events that occur. Event Based Exclusive Event Based
  39. 39. Process… HOW? Modeling Elements (Notation) GATEWAYS Parallel Event Based: …will wait for an (one or more) incoming event before triggering the flow through its outgoing paths. Parallel Event
  40. 40. Process… HOW? Modeling Elements (Notation) GATEWAYS Exclusive Event: An Exclusive Gateway (Decision) is used to create alternative paths within a Process flow. Only one of the paths can be taken, this means the gateway is exclusive… Exclusive Event
  41. 41. Process… HOW? Modeling Elements (Notation) CONNECTIONS Connections (connecting objects) are used to represent different types of flows. This paper defines four objects: 1. Sequence Flow 2. Message Flow 3. Association 4. Data Association
  42. 42. Process… HOW? Modeling Elements (Notation) CONNECTIONS Sequence Flow: A sequence flow is used to show the order in which activities are performed within a process. A sequence flow is represented by a line with an arrowhead. Sequence Flow
  43. 43. Process… HOW? Modeling Elements (Notation) CONNECTIONS Message Flow: A message flow is used to show the flow of messages between two entities, where pools are used to represent entities. A message flow is represented by a dashed line with a light- colored circle at the source and an arrowhead at the target. Message Flow
  44. 44. Process… HOW? Modeling Elements (Notation) CONNECTIONS Association: An association is used to associate information and artifacts with flow objects. An association is represented by a dashed line which may or may not have an arrowhead at the target end if there is a reason to show directionality. Association
  45. 45. Process… HOW? Modeling Elements (Notation) CONNECTIONS Data Association: A Data Association is used to show the flow of information (data) between activities in a business process. A data association is represented by a dashed line which may or may not have a line arrowhead at the target end if there is a reason to show directionality. Data Association
  46. 46. SWIMLANE Process… HOW? Process Modeling Notation (BPMN) …A swimlane (or swim lane) is a visual element used in process flow diagrams that visually distinguishes responsibilities for sub-processes of a business process. Swimlanes may be arranged either horizontally or vertically.
  47. 47. SWIMLANE Process… HOW? Process Modeling Notation (BPMN) …Swimlanes in BPMN consist of two types:
  48. 48. SWIMLANE Process… HOW? Process Modeling Notation (BPMN) … Represents major participants in a process, typically separating different organizations. A pool contains one or more lanes (like a real swimming pool).
  49. 49. SWIMLANE Process… HOW? Process Modeling Notation (BPMN) … Used to organize and categorize activities within a pool according to function or role, and depicted as a rectangle stretching the width or height of the pool.
  50. 50. SWIMLANE Process… HOW? Process Modeling Notation (BPMN) …Example Pool ………………………………………... Lane 1……. Lane 2….. Lane 3….. Lane 4…… Lane 5... Lane 6…….
  51. 51. Process… HOW? Modeling Elements (Notation) DATA OBJECT: A data object does not have a direct affect on a process but does provide information relevant to the process. It is represented in many ways as shown below: Card Stored Data Document Etc… ARTIFACTS
  52. 52. Process… HOW? Modeling Elements (Notation) GROUP: A group is an informal means for grouping elements of a process. It is represented as a rectangle with a dashed line border. ARTIFACTS Pool ………………………………………... Lane 1……. Lane 2….. Lane 3….. Lane 4…… Lane 5... Lane 6…….
  53. 53. Process… HOW? Modeling Elements (Notation) ANNOTATIONS: An annotation is a mechanism to provide additional information to the audience of a BPMN diagram. ARTIFACTS It is typically represented by an open rectangle containing the annotation text.
  54. 54. BUSINESS PROCESS MODELING …process modeling is a focus on the business logic of the process (how work is done), instead of taking a product perspective (what is done). Process… HOW? Creating a Model
  55. 55. Process… HOW? Creating a Model 1. Define the Boundaries (start and end points or scope) What begins the process? How does the process end? DEFINE BASELINE (‘As Is’)
  56. 56. Process… HOW? Creating a Model 2. Define the Goals What is the main objective? What is desired outcome of the process (customer need and customer need fulfillment)? DEFINE BASELINE (‘As Is’)
  57. 57. Process… HOW? Creating a Model 3. Define the Roles How do they (people/roles) complete their activities and what is the order of those activities? What activities are performed and who performs them? People (roles) are essential to process modeling. DEFINE BASELINE (‘As Is’)
  58. 58. Process… HOW? Creating a Model 4. Define what is Exchanged? What is exchanged between (in and out) the activities. DEFINE BASELINE (‘As Is’)
  59. 59. Process… HOW? Creating a Model The first draft will involve positioning and repositioning of events (activities). This may be a good time to use the sticky notes we mentioned earlier. If you're working with a group of people, everyone needs to be able to see it. POSITION ACTIVITIES
  60. 60. Process… HOW? Creating a Model Once you have established an agreed sequence of activities, you can create in a visual flow using a more sophisticated tool, such as a generic software application… for example, Microsoft’s Visio. Or, you may choose a specialized software package … for example, Enterprise Architect. GENERATE FLOWCHART (‘As Is’)
  61. 61. Process… HOW? Creating a Model You may want to check your model with the users by doing a ‘live observation’ of the process in action. People in meetings invariably forget the exact steps or say what should be happening, rather than what really happens. …a live observation of the process would be a great validation or… ‘REALITY CHECK.’ VALIDATE PROCESS
  62. 62. Process… EXAMPLES Sequence Numbering with Narratives VISIO EXAMPLE: BCC_CMSLIB REFDATA$D ORACLE Designer 2000 DMLDDL Source Files DBCHGS$D BCCDML CMS_NODE ENV_NODE TDD DIRECTORIES TDD$INPUT VOLUME LIBRARY NATIVE LIBRARY Pre-process DDL & DML DDL & DML is processed DATABASE 2 1 3 4 5 7 6 8 9 10 11 13 14 6 12 BCC ENVIRONMENT BUILD.DIR COMPILE 15 COMPILE 16
  63. 63. Process… EXAMPLES Sequence Numbering with Narratives VISIO EXAMPLE: The narratives below describe the activity for the sequence numbers on the previous graphic. 1. Developers use “ORACLE Designer” to generate the Data Definition Language (DDL) files. 2. Developers populate the DBCHGS$D directory with DDL files. These files are *.VEW, *.TAB, *.CON, *.IND, etc. These files can next be inserted directly into their respective TDD directories because they don’t require additional processing at this stage. 3. Developers also populate the REFDATA$D directory with DDL files. These files are *.SQL files that will require processing before they can be inserted into their respective directories in the TDD library.
  64. 64. Process… EXAMPLES Swimlanes with Annotations VISIO EXAMPLE: Stakeholder / AnalystQA / TesterRelease ManagerDeveloper RTC Team Lead creates a Work Item (WI) and assigns to Developer RTC Developer changes WI state to IN PROGRESS Developer modifies artifact(s) under SCM RTC Developer checks -in files – Automatically associates files with WI RTC Unit Test Developer changes state to IMPLEMENTED RTC Done – ----------- Ready to Deploy RTCTeam Lead creates “Deployment Request” RTC Review Build Deploy Release Manager changes status to QA READY RTC Test Changes “Deployment Request” to VALIDATED RTC Change status of “Deployment Request” to APPROVED RTC Release Manager deploys changes to PRODUCTION Changes “Deployment Request” to CLOSED RTC Deploy Release Manager changes state to PROD READY RTC Unit Test or Code Review ……… Manual Processes ….... Business Partners (SR Development) IR&C Staff Team Lead ………………….……………………… SCM Process ………………………………………….…….. Work Request 1. Service Request 2. Incident 3. Problem 4. Change 5. Configuration 6. Service Levels Documentation Specifications Requirements END-TO-END PROCESS – High Level
  65. 65. Process… EXAMPLES Swimlanes with Annotations VISIO EXAMPLE: Team Lead RTC RTC RTCTeam Lead initiates WORK ITEM and assigns to Developer
  66. 66. In defining a successful process, it would seem only logical to follow a successful process modeling methodology. The following are selected methodologies based on their popularity, success, adaptability and other valuable attributes: Process… METHODOLOGIES
  67. 67. Process… METHODOLOGY Six Sigma (DFSS, DMAIC, and DMADV) SIX SIGMA Six Sigma is all about improving efficiencies and reducing costs of existing products. Many companies like General Electric, Honeywell, Raytheon and IBM have realized billions of dollars in cost savings, and process and quality improvement.
  68. 68. Process… METHODOLOGY Six Sigma (DFSS, DMAIC, and DMADV) SIX SIGMA The Six Sigma process is a standardized problem solving methodology that can be incorporated into any business. This turn-key five step process is used universally around the world. Benefits of Six Sigma initiatives are realized within a matter of four to six months and directly hit the bottom line.
  69. 69. Process… METHODOLOGY Six Sigma (DFSS, DMAIC, and DMADV) SIX SIGMA - DFSS Design for Six Sigma (DFSS) is a business process that is incorporated into a company’s existing product development process. It takes products from concept to commercialization using data-driven decision making processes, delivering high quality, consistent, capable, defect-free products by focusing on critical design and process parameters based on the customer and market needs.
  70. 70. Process… METHODOLOGY Six Sigma (DFSS, DMAIC, and DMADV) SIX SIGMA - DFSS The Basic Process: Design for Six Sigma (DFSS) 1. Developing the Business Case 2. Formulating the Technical Requirements 3. Designing and Developing. 4. Verifying and Validating 5. Manufacturing and Commercializing 6. Controlling and Sustaining
  71. 71. Process… METHODOLOGY Six Sigma (DFSS, DMAIC, and DMADV) SIX SIGMA - DMAIC The DMAIC process of Six Sigma is a proven successful model used in many industrial sectors. DMAIC is used for projects aimed at improving an existing business process. The DMAIC project methodology has five (and sometimes six) phases …
  72. 72. Process… METHODOLOGY Six Sigma (DFSS, DMAIC, and DMADV) SIX SIGMA - DMAIC 1. DEFINE - Define the system 2. MEASURE - Measure and collect key data 3. ANALYZE - Analyze the data 4. IMPROVE - Improve or optimize process 5. CONTROL - Control the ‘future state’ 6. …Sometimes, a RECOGNIZE step… recognize the right problem to work on, thus yielding an RDMAIC methodology.
  73. 73. Process… METHODOLOGY Six Sigma (DFSS, DMAIC, and DMADV) SIX SIGMA – DMADV DMADV is used for projects aimed at creating new product or process designs. The DMADV project methodology features five phases:
  74. 74. Process… METHODOLOGY Six Sigma (DFSS, DMAIC, and DMADV) SIX SIGMA – DMADV 1. DEFINE - Define design goals 2. MEASURE - Measure and identify 3. ANALYZE - Analyze, develop and design 4. DESIGN - Design an improved 5. VERIFY - Verify the design
  75. 75. Process… METHODOLOGY Six Sigma (SIPOC / COPIS) SIX SIGMA – SIPOC SIPOC (sometimes COPIS) is a tool that summarizes the inputs and outputs of one or more processes in table form. The idea behind the SIPOC methodology is to view each process as a different organization in itself. Each process therefore has its own suppliers, inputs, process, outputs and corresponding customers… thus the acronym SIPOC
  76. 76. Process… METHODOLOGY Six Sigma (SIPOC / COPIS) SIX SIGMA – SIPOC The SIPOC provided an effective methodology to get an in detail look at the process. 1. BOUNDRIES - Boundaries must be explicitly stated. 2. SUB-PROCESSES - Sub-processes must be defined 3. PROCESS OWNER - One person must be accountable 4. OUTPUTS - Outputs must be verifiable deliverables 5. CUSTOMER – Customers must consume outputs and provide feedback.
  77. 77. Process… METHODOLOGY Capability Maturity Model (CMMI) CMMI (CARNEGIE MELLON) Capability Maturity Model Integration (CMMI) was developed by a group of experts from industry, government, and the Software Engineering Institute (SEI) at Carnegie Mellon University. CMMI models provide guidance for developing or improving processes that meet the business goals of an organization.
  78. 78. Process… METHODOLOGY Capability Maturity Model (CMMI) CMMI (CARNEGIE MELLON) CMMI originated in software engineering but has been highly generalized over the years to embrace other areas of interest, such as the development of hardware products and the acquisition of products and services. CMMI models provide guidance for developing or improving processes that meet the business goals of an organization.
  79. 79. Process… METHODOLOGY Capability Maturity Model (CMMI) CMMI (CARNEGIE MELLON) CMMI for Development Repeatable - Maturity Level 2 Defined - Maturity Level 3 Quantitatively Managed - Maturity Level 4 Optimizing - Maturity Level 5
  80. 80. Process… METHODOLOGY Capability Maturity Model (CMMI) CMMI (CARNEGIE MELLON) CMMI for Services Managed - Maturity Level 2 Defined - Maturity Level 3 Quantitatively Managed - Maturity Level 4 Optimizing - Maturity Level 5
  81. 81. Process… METHODOLOGY Capability Maturity Model (CMMI) CMMI (CARNEGIE MELLON) CMMI for Acquisition Managed - Maturity Level 2 Defined - Maturity Level 3 Quantitatively Managed - Maturity Level 4 Optimizing - Maturity Level 5
  82. 82. Process… METHODOLOGY Capability Maturity Model (CMMI) CMMI (SCAMPI) NOTE: The Standard CMMI Appraisal Method for Process Improvement is an appraisal method that meets all of the ARC (Appraisal Requirements for CMMI). Results of an SCAMPI appraisal may be published on the CMMI Web site: Published SCAMPI Appraisal Results. SCAMPI also supports the conduct of ISO/IEC 15504, also known as SPICE (Software Process Improvement and Capability Determination).
  83. 83. CREATIVE CONSULTING et al. (2013): Process… CONCLUSION Different methodologies are better for some organizations and less effective when used for other organized activities or organizations. Given the ferocious rate of change in business, business processes and business process approaches, leading methodologies will continue to change in the time ahead.
  84. 84. CREATIVE CONSULTING et al. (2013): Process… CONCLUSION There are analysis, redesign approaches and methodologies designed to help business managers, others designed for people improving quality control, and others designed to help business analysts or software developers, yet all these are developed for the purpose defining a process that is …a repeatable set of activities documented to achieve a consistent result, output, product, or service …preferably successful.
  85. 85. CREATIVE CONSULTING et al. (2013): Process… CONCLUSION CREATIVE CONSULTING… and Business Services will endeavor to keep pace with approaches and methodologies in Process Modeling to provide the best service possible to the business community. …“Make everything as simple as possible, but not simpler.” Albert Einstein

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