2014-Dascalu_BPM.ppt

Business Process Management
(BPM)

Information
 Instructor:
 Assist. Prof. Maria-Iuliana Dascalu, PhD, FILS-UPB
 Contact address:
 maria.dascalu@upb.ro
 The course material will be available on:
 www.mariaiulianadascalu.com/teaching
 Schedule:
 Friday, 9th of May, 18-21, room 2103
 Saturday, 16th of May, 9-18 , room 2017
 Sunday, 17th of May, 9-18 , room 2017
 Grading:
 10%: written exam (18 multiple-choice qs and an open qs), 24th of
May, 9-9.50 , room 2017
 20%: research presentation on a given subject (in teams) in-class
on Sunday, 17th of May
 70%: project presentation (in teams), 24th of May, 10-12

The bottom line is…
 Clean kitchen does not necessarily produce tasty food, but
 we’d rather eat a so-so tasty food from a clean kitchen.
 Good processes does not necessarily develop quality
software, but
 we’d rather fly in Airbus with a software from a well-known
company than a small software development house.
 So, there is a need for quality processes, since they decrease
the risk of companies producing low quality products.
 Process management ensure qualitative processes.

Outline
 Definitions
 Core concepts and their descriptions
 Components
 Lifecycle
 Examples
 Advanced concepts

Definitions (1)
 Business = person/ corporation engaged in commerce,
manufacturing, or a service; profit-seeking enterprise
(people/teams are involved for a specific outcome; refers to individuals, interacting together, to perform a set of
activities to deliver value to customers and a return on investment to the stakeholders)
 Process= a systematic series of actions directed to
some end; a continuous set of actions, operations or
series of changes taking place in a definite manner
 Management = the act or manner of managing; handling,
direction or control; executive ability; the person or
persons controlling and directing the affairs of a business
or institution (it requires handling exceptions, providing directions, controlling variables to achieve
desirable outcomes; it requires skills and involves people and executives)

Definitions (3)
 Business Process Management:
 Disciplined approach to identify, design, execute, document,measure, monitor
and control both automated and nonautomated business processes to achieve
consistent, targeted results aligned with an organisation’s strategic goals
 Involves the deliberate, collaborative and increasingly technology aided
definition, improvement, innovation and management of end-to-end business
processes that drive business results, create value and enable an organisation
to meet its business objectives with more agility
 Enables an enterprise to align its business processes to its business strategy,
leading to effective overall company performance through improvements of
specific work activities either within a specific department, across the enterprise
or between organisations
(Association of Business Process Management Professionals-ABPMP)

Core Concepts •The defining
characteristic of
process vs. project
is repeatability vs.
uniqueness.
•Process is a
repetitive collection
of interrelated tasks
aimed at achieving a
certain goal.
•Project is a unique
endeavour with a
beginning and an
end undertaken to
achieve a goal.

Management Discipline and Enabling
Technologies
 Enabling technology is meaningless without the management
disciplines and processes for exploiting the technology
 Vendors have created application suites which help enable
organisations to better manage their business processes
 Tools to visually design and model business processes
 Simulate and test business processes, automate, control and
measure business processes
 Provide feedback and reporting on process performance
 Some vendors have combined these into integrated business
process management suites

Addresses End-To-End Work
 Business functions are typically defined by a group
of activities related by a particular skill or goal such
(i.e. sales, finance, manufacturing)
 Business processes focus on the end-to-end work,
i.e., tasks and activities, across functional
boundaries to deliver customer value
 Business processes have defined inputs and
outputs and functions have not

Ongoing Management of Processes
 BPM involves a permanent ongoing
organisational commitment to managing the
organisations processes
 Includes:
 Modelling
 Analysis
 Process design
 Performance measurement

Modelling, Analysis, Design and
Measurement of Processes
 Practice of BPM requires the measurement and
supervision of process performance
 Setting process performance goals
 Measuring actual performance, the efficiency of the business
processes (“doing the thing right“)
 Reviewing the effectiveness of business processes (“doing the
right thing“)
 Providing information, insight and feedback to other primary
activities such as process analysis, design and transformation
 Gather information at key points in the process to
support decisions regarding cost or timing

Organisational Commitment
 Management of end-to-end business process crosses organisational
boundaries
 New roles and responsibilities are introduced, such as process
owners, designers and architects
 Individuals responsible for end-to-end process design must interact
with traditional functionally based managers
 New governance structures need to be introduced which may change
the way organisations make decisions and allocate resources
 Practice of BPM requires a significant organisational commitment:
without organisational commitment, the practice and benefits of BPM
is unlikely to mature within an organisation
 • Without supporting leadership, values, beliefs and culture, BPM is
unlikely to successfully take hold within an organisation

BPM Technology
 BPM is a technology enabled and supported management discipline
 Wide range of technologies available to support the planning, design,
analysis, operation and monitoring of business processes
 Application suites available which help enable organisations to better
manage their business processes
 BPM systems must be able to integrate with legacy systems in order to
control work and get information or measure performance
 Common framework for how these technologies are deployed is most
often referred to as a Service Oriented Architecture (SOA)

Components
 A management approach to continuously
improve processes and archive
organizational objectives through a set of
methodologies and technologies
 People and processes are a key part

Input
•An input can be a form, a document, an image, an approval from a person
(employee/customer/ manager can trigger an event), data, alert, mail from a
person or a system.

Process
Participants
From the same team project,
but also cross-functional

Process Activities
 Types:
 Value Added - contribute to the process output in a
positive way
 Handoff - pass control of the process to another
department or organisation
 Control - assure that the processes behave within
desired tolerances or specify a validity checkpoint
 Examples:
 Planning & strategy
 Analysis
 Design & modeling
 Implementation
 Monitoring & controlling
 Refinement

Output
•Management
dashboard, reports,
phones, e-mail alerts
from key participants
and reviewers
•Good outcomes for
participants and
organization + bring
the process to an
end

BPM Lifecycle (1)
• The BPM activities are affected by several factors: leadership, values, culture
and beliefs factors

BPM Lifecycle (2)
•Iterative, phased set of activities

Process Planning and Strategy
 Sets the strategy and direction for the BPM
process
 Plan starts with an understanding of organisational
strategies and goals
 Provides a foundation for a holistic BPM approach to
ensure the alignment with organisational strategy and
the integration of strategy, people, processes and
systems across functional boundaries
 Identifies appropriate BPM organisational roles and
responsibilities, executive sponsorship, goals and
expected performances measures and methodologies

Analysis of Business Processes
 Takes information from strategic plans,
process models, performance
measurements, changes in the environment
and other factors in order to fully understand
the business processes in the context of the
overall organisation

Design and Modelling of Business
Processes
 Document the sequence of activities, including the
design of what work is performed, at what time, in
what location, by what process actors using what
methodology
 Defines what the organisation wants the process to
be and answers the what, when, where, who and
how questions of how end-to-end work is executed
 Ensures that the proper management controls and
metrics are in place for compliance and performance
measurement

Process Monitoring and Controlling
 Continuous measuring and monitoring of business
processes provides the information necessary to
adjust resources in order to meet process objectives
 Measuring and monitoring also provides critical
process performance information through key
measurements related to goals and value to the
organisation
 Analysis of process performance information can
result in improvement, redesign or reengineering
activates

Process Refinement
 Implements the output of the iterative
analysis and design cycle
 Addresses organisational change
management challenges
 Aimed at continuous improvement and
process optimisation

Simple vs. Complex: number of steps, number of
participants, number of people/systems involved, number of exceptions

Other examples…
 Management processes:
 used to measure, monitor and control business activities
 ensure that a primary or supporting process meets operational,
financial, regulatory and legal goals
 Primary (core) processes:
 end-to-end, cross-functional processes which directly deliver value
 represent the essential activities an organisation performs to fulfill its
mission
 Support processes:
 support primary processes, often by managing resources and/or
infrastructure required by primary processes
 not directly deliver value (does not mean that they are unimportant to
an organisation); e.g. information technology management and human
resource management

Example: Request to IT Department

Advanced Concepts
1. Process Ownership
2. Process Modelling
3. Process Analysis
4. Process Design
5. Process Performance Measurement
6. Process Transformation
7. Process Implementation
8. Process Quality
9. Process Management Organisation
10. Enterprise Process Management
11. Process Management Technology

Process Ownership
 Successful BPM implementations recognise that the
role of a process owner is critical
 Process owner is responsible for the entire end-to-
end process across functional departments
 Success of this role depends on the authority the
individual has to control the budget and make
decisions that effect the development, maintenance
and improvement of the business process

Process Diagrams, Maps and Models
 Diagrams:
 Process diagram often depicts simple notation of the basic
workflow of a process
 Depicts the major elements of a process flow, but omits the minor
details which are not necessary for understanding the overall flow
of work
 Maps:
 More precision than a diagram
 More detail about process and important relationships to other
elements such as performers (actors), events, results
 Provide a comprehensive view of all of the major components of
the process
 Models:
 Represents the performance of what is being modelled
 Needs greater precision, data about the process and about the
factors that affect its performance
 Often done using tools that provide simulation and reporting
capability to analyse and understand the process

Process Attributes and Characteristics
 describe the properties, behaviour, purpose and
other elements of the process
 are captured in a tool in order to organise, analyse
and manage an organisation’s portfolio of processes
 examples:
 Inputs/Outputs, Events/Results, Value Add,
Roles/Organisations, Data/Information, Probabilities,
Queuing, Transmission Time, Wait Time, Arrival
Patterns/Distributions, Costs (indirect and direct), Entry
Rules, Exit Rules, Branching Rules, Join Rules,
Work/Handling Time, Batching, Servers (number of people
available to perform tasks)

Purpose of Process Modelling (1)
 A model is rarely a complete and full representation
of the actual process
 Objective is to create a representation of the
process that describes it accurately and sufficiently
for the task at hand
 Models are simplified representations that facilitate
understanding of that which is being studied and
making decisions about it

Purpose of Process Modelling (2)
 Focus on representing those attributes of the process that support continued
analysis from one or more perspectives
 Understanding the business process through the creation of the model
 Creating a visible representation and establishing a commonly shared
rerspective
 Process models are the primary means for
 Measuring performance against standards
 Determining opportunities for change
 Expressing the desired end state preceding a change effort
 Benefits of Modelling:
 Models are relatively fast, easy and inexpensive to complete
 Models are easy to understand (when compared to other forms of documentation)
 Models provide a baseline for measurement
 Models facilitate process simulation and impact analysis

Modelling Standards and Notations
 Range of number of modelling and notational standards and
Techniques
 Models provide a language for describing and communicating as-is and
to-be process information
 Like all new languages must be learned
 Examples:
 Business Process Modelling Notation (BPMN)
 Flow Charting
 Event Process Chain (EPC)
 Value Chain
 Unified Modelling Language (UML)
 IDEF-0 (Integration Definition for Function Modelling)
 LOVEM-E (Line of Visibility Engineering Method - Enhanced)
 SIPOC (Supplier, Input, Process, Output and Customer)
 Systems Dynamics
 Value Stream Mapping

Business Process Modelling Notation
(BPMN)
 Widely used and supported standard for business
process modelling
 Provides a graphical notation for specifying business
processes in a Business Process Diagram (BPD)
 Uses a flowcharting technique similar to activity
diagrams from Unified Modelling Language (UML)
 Can output BPMN to Business Process Execution
Language (BPEL)
 Standard executable language for specifying interactions
with Web Services
 Emerging standard

 BPMN – Events: denote something that happens
 Classifications: Catching – triggered by external event or Throwing – generating an output
 Types: Start Event - acts as a trigger for the process, End Event - represents the result of a process,
Intermediate Event - represents something that happen between the start and end events
 BPMN – Activities: describe the kind of work that must be done
 Types: Task - represents a single unit of work that is not or cannot be broken down to a further level of
business process detail, Sub-Process - used to hide or reveal additional levels of business process
detail, Transaction - a form of sub-process in which all contained activities must be treated as a whole
 BPMN – Gateway: determines forking and merging of paths depending on the conditions expressed
 BPMN – Flow objects are connected to each other using connecting objects.
 Types: Sequence Flow - shows in which order the activities will be performed, Message Flow - shows
what messages flow across organisational boundaries, Association - associate an Artefact to a Flow
Object and can indicate directionality
 BPMN - Swim Lanes: visual mechanism of organising and categorising activities, based on cross
functional flowcharting
 Types: Pool - represents major participants in a process and contains one or more lanes, Lane - used
to organise and categorise activities within a pool according to function or role
 BPMN – Artefacts: used to bring some more information into the model/diagram
 Types: Data Objects - show the data is required or produced in an activity, Group - used to group
different activities but does not affect the flow in the diagram, Annotation - used to provide the
model/diagram with understandable details

References
 Association of Business Process Management Professionals
(ABPMP) Business Process Management Common Body of
Knowledge (CBOK)
 Alan McSweeney, “Introduction to Business Process
Management”, 2010
 M. Staron, W. Meding, “Ensuring Reliability of Information
Provided by Measurement Systems”, Ericsson
 M. Staron, “Software Leadership and Quality Assurance”,
Gothenburg University, 2010

Business Process Management
(BPM) – cont.

Process Modelling Quality
 Most process analysis and design efforts
require the use of models to describe what is
happening during the process
 Useful to have some standards and measures
of quality as it relates to process modeling
 Quality of model defined by its accuracy,
amount of detail and completeness

Requirements of a Process Model
 Business environment
 Organisational structure
 Business rules
 Process structure

Model Validation and Simulation
 Useful or necessary to validate the model
through simulation
 Validate the model through simulation is to
compare simulated outputs to real-world
results

Modelling Perspectives
 Processes can
be modelled
from many
perspectives
 All perspectives
are maintained
in a process
repository

Modelling Approaches
 Bottom-up
 Top-down
 Middle-out

Capturing Information for Process
Modelling
 Direct Observation
 Interviews
 Survey/Written Feedback
 Structured Workshops
 Web-Based Conferencing

Modelling Participants
 Business strategists
 Business managers
 Financial analysts
 Auditors
 Compliance analysts
 Process performance analysts
 Requirements analysts
 Systems analysts
 Business analysts

Modelling Techniques and Tools
 White Boarding and Flip Charts
 Paper and Post-Its
 Drawing Tools and Reports (e.g. Visio,
PowerPoint)
 Electronic Modelling and Projection:
 Repository-based tools allow the reuse of objects
or patterns that have already been defined in
previous efforts

Process Simulation
 Form of models which provide valuable insight to
process dynamics
 Simulations require sufficient data which typically
allows the process to be mathematically simulated
under various scenarios, loads, etc.
 Simulations can be manual or electronic using
process simulation tools
 Various benefits

Purpose of Process Analysis
 Process analysis is an essential tool to show how well the business is meeting its objectives
 Due to business change the processes of an organisation can quickly become inconsistent to their
original design and no longer meet the needs of the business
 Analysis generates an understanding and measurement of process effectiveness and its efficiency
 Information generated from analysis includes:
 Strategy, culture and environment of the organisation that uses the process (why the process
exists)
 Inputs and outputs of the process
 Stakeholders, both internal and external, including suppliers, customers and their needs and
expectations
 Inefficiencies within the current process
 Scalability of the process to meet customer demands
 Business rules that control the process and why they must exist
 What performance metrics should monitor the process, who is interested in those metrics and
what they mean
 What activities make up the process and their dependencies across departments and business
functions
 Improved resource utilisation
 Opportunities to reduce constraints and increase capacity

When to Perform Process Analysis
 Can be the result of continuous monitoring of
processes or can be triggered by specific
events, such as:
 Strategic Planning
 Performance Issues
 New Technologies
 Startup Venture
 Merger/Acquisition
 Regulatory Requirements

Process Analysis Roles
 Performed by a single individual or by a cross-functional team
 Analyst
 Decide the depth and scope of the analysis
 How it is analysed
 Perform the analysis
 Provide documentation and final reports to the stakeholders and
executive leadership
 Facilitator
 Lead process analysis teams with an unbiased view
 Subject Matter Experts
 Individuals closest to the process with knowledge and expertise
 Familiar with both the business and technical infrastructure that
supports the process

Preparing the Analysis
 Choose the
process
 Determine the
scope of the
depth of analysis
 Choose analytical
frameworks

Process Design Principles (1)
 Design around customer interactions
 Design around value-adding activities
 Minimise/ automate handoffs
 Work is performed where it makes the most sense
 Provide a single point of contact
 Ensure a continuous flow
 Reduce batch size: batching causes wait time for items at the
end of the batch
 Capture information once at the source and share it:
eliminate data redundancy
 Involve as few as possible
 Redesign, then automate
 Ensure quality at the beginning

Process Design Principles (2)
 Standardise processes: when there is no
standardisation there cannot be process control
 Use co-located or networked teams for complex
issues
 If complex problems occur regularly, consider co-locating
team members
 If co-location does not make sense, then network the team
so information can smoothly flow
 Consider outsourcing business processes
 Compare to the costs of designing the process in-house as
well as compared to the risks associated with outsourcing
 Process Compliance
 Process Design Considerations

5. Process Performance Measurement

Process Performance Measurement

Business Process Action Hierarchy

Key Process Performance Definitions
 All processes have a metric or
measurement associated with
the work or output of the
process that is performed
 Metrics are based on the
following fundamental metric
dimensions: time, cost, capacity,
quality
 When a process is value-added?
 When it is required to generate
the output required by the
customer of the process
 When the customer is willing to
pay for the process
 When it enhances customer
experience

Key Performance Indicators (KPIs)

Measurement Methods
 Several common measurement
methodologies used in BPM implementations
 Value Stream Mapping
 Activity Based Costing (ABC)
 Statistical Methods

BPM Improvement Methodologies
 An approach with principles, procedures and
practices that provide guidelines for
designing and executing the different
components within BPM

Other Methodologies
 Lean:
 originated by Toyota
 Focus on reduction of process wastes
 TQM (Total Quality Management)
 focus on process measurement and controls as a megans of
continuous improvement
 statistical analysis
 Performance Improvement Model
 developed in the early 1990s
 framework aligns processes at three distinct three levels of
performance: organisational, process and job/ performer
 Redesign
 although it may lead to significant changes, these changes continue to
be based on the fundamental concepts of the existing process
 Reengineering
 Mike Hammer’s 1993 book Reengineering the Corporation
 radical change of process

Activity Specification
 Each implementation activity specification should
include:
 Objectives, performance metrics and list of deliverables—
all related to delivering improved customer value
 Risks for completion and how to be minimised
 Accountability for completion
 Financial, personnel, any IT support and other resources
required
 Length of time for completion
 Any implementation task cross-functional
interdependencies

Are these all of the same quality? Do they cost the
same?

What is good quality?
 Please list 3 characteristics of a good quality
car.

What is a “good quality” mobile
phone?
 List 3 characteristics of a good quality phone.
 How about the characteristics of a process to
make a phone?

Definition of Quality
 IEEE (IEEE_Std_610.12-1990) :
 the degree to which a system, component, or process meets
specified requirements/ customer or user needs or expectations
 Fault (according to ISO/CD 10303-226):
 “an abnormal condition or defect at the component,
equipment, or sub-system level which may lead to a failure”
 Failure:
 the state or condition of not meeting a desirable or intended
objective
 Defect:
 see fault

Root Cause Analysis (RCA)
 RCA is used to find the root causes of defects –
what is the cause of the failure
 RCA can be done using a number of methods:
 Barrier analysis
 Causal factor tree analysis
 Change analysis
 Failure mode and effects analysis
 Fault tree analysis
 5 Whys
 Ishikawa diagram
 Pareto analysis

5 Whys: Example
 Problem Statement: You are on your way home from work and
your car stops in the middle of the road.
1. Why did your car stop?
- Because it ran out of gas.
2. Why did it run out of gas?
- Because I didn't buy any gas on my way to work.
3. Why didn't you buy any gas this morning?
- Because I didn't have any money.
4. Why didn't you have any money?
- Because I lost it all last night in a poker game.
5. Why did you lose your money in last night's poker game?
- Because I'm not very good at "bluffing" when I don't have a good
hand.

Ishikawa Diagram: Principles
 Causes are grouped into categories and linked together
(primary and secondary causes)
 The list of categories is not definite, the figure shows the
“typical”
• Relationships are used to
backtrack the cause of a
particular problem.
• The analysis requires
more effort than 5 whys
but still no statistics is
necessary.

Exercise
 Imagine the following situation: You are a
quality manager in a software development
project in a new version of the Hyunday i30
car. A new version of the software for the
ABS (Anti-Block System) brakes has been
delivered and it does not work. Please draw
the Ishikawa diagram that would help you do
Root Cause Analysis.

Pareto Analysis: Principles
 Pareto analysis is based on the assumption
that 20% of the units contributes with 80% of
the effect, e.g.:
 20% of the modules contain 80% of errors
 80% of failures are caused by 20% of the defects
 The basis of Pareto Analysis is Pareto
diagram

Absence of defects = good quality?
 What is a quality process?
 How would you recognize a quality process in
a restaurant?
 How about software development?

Rational Unified Process (RUP)
RUP is a quality process…
Well defined phases
Well defined activites
Well defined tasks
Well defined deliverables
Templates
Team support
Tool support
…

Team Software Process (TSP)
 is a detailed process description for small
teams, containing:
 details of activities
 QA
 …
 Organizations implementing TSP announced:
 productivity improvements of 25% or more
 reductions in cost and schedule variance to less than +/-
10%
 testing costs and schedule reductions of up to 80%

Capability Maturity Model Integration
(CMMI)
 CMMI can be used to guide process improvement across a project, a division, or
an entire organization
 Processes are rated according to their maturity levels
 CMMI best practices are published in documents called models, each of which
addresses a different area of interest: development, acquisition, services
 Capability Maturity Model describes how good an organization is in its
processes
 Starts from unpredictable and reactive (ad-hoc) processes
 Ends with processes focused on the continuous improvement
 http://www.sei.cmu.edu/cmmi/

Key Process Area (KPA)
 Each maturity level
has some associated
KPAs
 KPAs are from 4
categories: project
management, process
management,
engineering, support
 The relationship is:
 Maturity level =>
KPA
 Not vice versa!!!
•The assumption is that the more
advanced the organization is =>
the more mature its processes
are => the more difficult KPAs it
implements

CMMI’s relationship to quality
 Level 1 “expects” the following process areas
 Quality assurance (PPQA)
 Measurement and analysis
 Level 2 “expects” the following process areas
 Verification
 Validation
 Level 3 “expects”
 Automation, including automated measurement
processes

PPQA’s main specific goals related to QA
 SG1: Objectively Evaluate Processes and Work
Products
 SP1.1: Objectively Evaluate processes
 SP1.2: Objectively evaluate work products and services
 SG2: Provide objective insight
 SP2.1: Communicate and Ensure Resolution of
Noncompliance issues
 SP2.2: Establish records

Objectivity: Examples
 Examples of measurement data
 Estimated/planned vs. actual data on software size, cost,
and schedule
 Productivity data
 Coverage and efficiency of peer reviews
 Organization’s measurement program includes
 Definition of the organization-wide measurements
 Collection of the organization’s measurement data
 Analysis of the organization’s measurement data
 Quantitative measurement goals for the organization

CMMI Assessment
 Checking the CMMI level is done ‘manually’ during an
assessment
 Has to be done by an accredited auditor
 Is supported by methods like SCAMPI (Standard CMMI Appraisal
Method for Process Improvement)
 Capability vs. maturity – continuous representation vs. staged
one

Practical considerations about CMMI
 CMMI is a comparison framework and a descriptive maturity level
framework
 If you want to improve your organization, CMMI does not tell you
HOW to do it
 CMMI describes areas which the organizations should consider
 CMMI level 5 does NOT guarantee that the software will be free
of errors
 The projects might be on budget, requirements correct, testing
correct, but…
 … one needs to know the “Garbage in – garbage out” principle
 CMMI is very good and well-known, but not the only framework
like this
 CMMI is very high level
 If an organization wants to focus on a specific area, say QM, then
CMMI is not very helpful

Process Management Maturity Levels
 There are several Process Management Maturity Models
 Process Maturity Models define levels of awareness for business process best
practices and automation with some assessing the management of operational
processes

SPICE
 SPICE is a major international initiative to support the
development of an International Standard for Software Process
Assessment
• http://www.sqi.gu.edu.au/spice/what.html

Deming’s PDCA: Plan-Do-Check-Act
• Iterative problem
solving process
used for process
improvement

How to improve processes?
 Rational Unified Process has its own
improvement framework:
 http://www-01.ibm.com/software/rational/mcif/
 Deming’s PDCA: Plan-Do-Check-Act:
 iterative problem solving process

Measures of Software Process Quality:
Example
 Fault-Slip
Through:
 this measure
helps to
understand the
efficiency of
testing in each
phase

Conclusions so-far…
 “The quality of a product is largely determined
by the quality of the process that is used to
develop and maintain it.” (Shewhart, Juran,
Deming and Humphrey), but…
 Once the process is of a good quality this does
not mean that the product is of a good quality
 No product QA -> no quality
 Process is not followed -> no quality

Quality Metrics
 According to standard ISO/IEC 15939, measure (i.e. metric) is
a
 ”variable to which a value is assigned as the result of
measurement”
 “Categories” of metrics:
 Simple
 Statistics
 Key performance indicators (KPI)
 Measurement Systems: set of metrics that present the status
and/or progress of a specific area
 Can anything/everything be measured?
 Can we trust metrics/statistics?

ISO/IEC 15939 (1)
 an international standard that defines a
measurement process for software
development and systems engineering:
 ”This international standard identifies the activities
and tasks that are necessary to successfully
identify, define, select, apply and improve
measurement within an overall project or
organizational measurement structure.”

Measurement System: the Principles

Measurement System: the Conceptual
Model
An optimal
measurement
information model
has to be defined!!!

Measurement Information Model
 “is a structure linking information needs to the
relevant entities and attributes of concern” –
from Annex A (ISO/IEC 15939)
 defines measurement constructs which link
information needs with attributes of entities

Ericsson Example (*)
(*) A framework for developing
measurement systems and its industrial
evaluation - Miroslaw Staron , Wilhelm
Meding, Christer Nilsson

Main Benefices of Using Measurement
Systems
 New means of communication: common
language, based on an ISO standard
 Automation (data collection, analysis,
presentation)
 Reliability (assured by check-indicators)

More on: “Ensuring Reliability of Information Provided by Measurement Systems” –
M. Staron, W. Meding

9. Process Management Organisation

Process Management Organisation

Cross Functional Processes – Crossing “Vertical”
Operational Organisational Units

Enterprise Process Management
 Assures alignment of the portfolio of end-to-end business
processes and process architecture with the organisation’s
business strategy and resource allocation
 Provides a governance model for the management and
evaluation of initiatives
 Involves the deliberate, collaborative and increasingly
technology-aided definition, improvement, innovation and
management of end-to-end business processes that drives
business agility

10. Enterprise Process Management

11. Process Management Technology

Process Management Technology
 Increasing use of computer applications to assist with the analysis,
design, implementation, execution, management and monitoring of
business processes
 Business Process Management Systems (BPMS) include a large
number of computer applications that continue to evolve as our
understanding of business processes matures and requirements
for handling complex issues and large volumes of information
increase
 All studies of successful BPM programs have found that BPM
Systems are important and necessary components of any BPM
effort
 BPM technology can encompass some or all of BPM lifecycle:
modelling and design, simulation, implementation - publish
designed processes to controlling platform, management and
control

Software Components Supporting BPM Activities

Free BPM Software
 ADONIS
 ARIS Express
 BonitaSoft
 BizAgi
 Intalio
 ProcessMaker

Process Management Conclusions

Examples of processes you can model (1)
 Launch Voyager
space craft, in
order to to
extend the
exploration of the
solar system
beyond the
furthest point that
has ever been
reached

 Control a smart home

 Buy
something

 Print a 3D
object with
a bio-printer

 Print a 3D object with a bio-printer

2014-Dascalu_BPM.ppt

More Related Content

Similar to 2014-Dascalu_BPM.ppt

More from LuckySaigon1

Recently uploaded

2014-Dascalu_BPM.ppt

Editor's Notes