1/15/2013 4Principles of BPM• Organize around outcomes not tasks• Correct and improve processes before (potentially) automating them• Establish processes and assign ownership• Standardize processes across the enterprise• Enable continuous change• Improve existing processes, rather than build radically new or ‘perfect’ processes
1/15/2013 5Business Drivers of BPM• Perceived or Expected Benefits: • Reduce staff and office overhead numbers • Process business critical activities faster • Reduce the number of errors and exceptions • Reduce overall IT costs • Reduce duplications • Increase visibility into operational efficiencies and bottlenecks • Reduce business risks • Improve customer service and retention
1/15/2013 6Why Model Processes Understand and control existing processes Measure time, cost and resources needed to existing processes Improve current processes Streamline, identify missing process steps, rationalize existing processes Design new processes Realize business requirements and design new processes Based on changing business environment, new processes may be needed Communicate existing and new processes Automate processes
1/15/2013 7Charting v/s Modeling• Flowcharting creates a graphical representation of the sequence and key elements of a business process• Process modeling extends this by • Mapping dependencies and related flows • Adding data intelligence to the steps • Enabling simulation of flows to check for efficiencies and bottlenecks • Enabling reuse of mapped chart elements • Supporting future monitoring of improved processes
1/15/2013 13Process Decomp• Process Decomposition is the break up of a process to activity level• Every project should have a Process Decomp• Process Decomp helps at later stages when improvisation has to be implemented• Process Decomp keeps a running score of all the processes under a function
1/15/2013 16Exception Handling• Always account for Exceptions, business is not a blue sky scenario – there are always exceptions in every process• Exceptions have to be handled – we have to define the process to resolve the exceptions• If you don’t find Exceptions in the process – somebody has not shared info or something’s not right
1/15/2013 18BPM Notations• BPMN helps to explain business processes both internal and external through a Business Process Diagram.• BPMN helps organizations the ability to communicate the processes in a standard manner.• BPMN helps to bridge the understanding ‘GAP’ between various departments internal / external. For example the gap in understanding business processes by IT developers
1/15/2013 19Flow Objects• Flow objects define the behavior of the Name process• Flow Objects are • Activities – are the actions that are carried out Activity as part of business Name • Event – are the process triggering objects that affect the flow of the process and have a cause and a result Event • Gateways – are the controlling objects that diverge or converge the flow Name Gateway
1/15/2013 20Connection Objects• Connections are used to connect two or more objects in a process• Connection Objects are Sequence • Sequence Lines – to show in which order the Flow activities are performed • Associations – are used to associate a role, text, Association artifact to a flow object • Message Lines – represents how message flows between the objects Message Flow
1/15/2013 21 Artifacts• Artifacts are • Group – to put similar activities under a Group group • Annotations – are used to proved additional text information Text Annotation • Data Objects – are used to show how data is required or produced at each step
1/15/2013 22What is an Event• An Event is something that happens during the course of a business process and affects its execution Event• An Event has a CAUSE and an IMPACT• All activities are triggered by an Event. for example purchase order received. This is an Event
1/15/2013 233 Stages of Life of an Event• Events have Three stages • Start Event - begins the process • Intermediate Event - these happen during the process, between Start and End Events • End Events - terminate the event If we use a tool like ARIS, we can avoid the multiple notations by using the standard Event notation
1/15/2013 24Naming Convention - EVENT• An event marks the beginning and end of any process.• It’s a trigger that initiates the process.• Each process should start with an event and end in an event.• It indicates the changing state of the world as the process proceeds.• Events usually follow functions unless they are trivial and do not convey anything significant.• Events describe the function is completed.• Events do not indicate the next function.• The convention for an event is Noun-Verb, written in simple past tense. For example: Order Entered or Price Calculated.
1/15/2013 25What is an Function• Functions indicate the tasks or activities that are carried out in the business process. Function• Functions have inputs (material or information) and outputs (different material or information) and usually utilize resources. Thus, they are carried out by either people or systems.• Functions should not convey unambiguous information to the reader; it should be specific and convey the right information. The usage of short forms such as ent. instead of enter should be avoided.
1/15/2013 26Naming Convention - Function• The convention for a function is Verb-Noun. For example: Enter Order or Calculate Price.• It is written as Action (such as Enter, Calculate) followed by the Information Item (such as Order, Price).• The function is to be written in active voice, do not write the Functions in passive voice, for example Route Planning is Done Plan the Route
1/15/2013 27Naming Convention - Function • Activity is a piece of work performed within a business process. • There are two types of Activity • Tasks - is atomic within a business process. For example Take Order • Sub Process - an activity that can be decomposed into other smaller activities. For example Generate Bill, this is when you take the items ordered list, check the price, apply promotions, apply other discounts • As a rule - Sub Processes ALWAYS begin with a NONE START EVENT and end with a NONE END EVENT
1/15/2013 28Naming Convention - Function• Functions are activities that have to be carried out, do not word them as Events (outcome in past tense).• For example, With Authorization Cancel SO after SO is cancelled Authorization
1/15/2013 31Rules• ARIS has three basic rules: AND, XOR & OR.• While XOR & OR are used in making decisions, AND is used to split and join branches.• When to use the three rules, depends on whether they follow or precede the function.
1/15/2013 32 OR OperatorOR Following a Function OR Preceding a FunctionSingle Input – Multiple Output Multiple Input – Single OutputOR Decision OR TriggerOne or many possible paths will be Any one Event, or combination of Events,followed willas a result of the decision trigger the Function
1/15/2013 33 XOR OperatorXOR Following a Function XOR Preceding a FunctionSingle Input – Multiple Output Multiple Input – Single OutputXOR Decision XOR TriggerOne, but only one, of the possible paths One, but only one, of the possible Eventswill willbe followed be the trigger
1/15/2013 34 AND OperatorAND Following a Function AND Preceding a FunctionSingle Input – Multiple Output Multiple Input – Single OutputAND Branch AND Branch TriggerProcess flow splits into two or more All Events must occur in order to triggerParallel thepaths following Function
1/15/2013 35Split Rule• To join back the branches split by a rule, use the same end object (event/function) on all the split branches preceding the rule.• The object (event/function) following the join must be different from the one used preceding the join. For eg., if there are events preceding the join, the object that follows after the join is a function and vice-a-versa, as shown below:
1/15/2013 36Do’s and Don’ts• Avoid OR/XOR following an Event.• Functions taking the decision are always followed by Rules. AND split is usually made after an Event and recombined after events, though you can recombine and then insert a single event at times.• The “Join” should be made using the same Rule that was used for the “Split”.• Avoid “Do Nothing” paths, shown below:
1/15/2013 37Artifacts• BPMN provides three Artefacts that help us to add extra information to the models WHERE WHAT WHO • Text Annotation - text added to the diagram to increase understanding • Group - a way to group together parts of a process • Data Objects - Way to show data and documents that are changed by the process Always attach Notes, RASCI to the key functions for traceability
1/15/2013 40Introduction to Model Structure• Tools like ARIS provide more than 150 pre-defined models to work with• The models available are • EPC: Detail modelling of processes at various levels of hierarchy • FAD: For defining the relationship between a Function and the resources needed to execute it and the data it transforms • Organization Chart: A hierarchical model of the business organization • Technical Terms Model: Models the hierarchical and relational structure of information used by the business • Value Added Chain Diagram (VACD): Models a hierarchy of high- level functions that add value to the business along with the organizational units that have a role in those functions
1/15/2013 41 EPC – Event Driven Process Chain• EPC’s are an accurate representation of the real world• Important rules to bear in mind when constructing an EPC: • Every EPC model should have a start event and an end event. The models cannot start or end with a function. • Functions and events alternate. Avoid connecting functions to functions, except at times when the events are trivial and do not convey something significant and could be skipped. Events should never connect to events. • Avoid bringing-in additional Events/ triggers in middle of a process; it leads to lots of interconnections and confusion. Check whether the process is really dependent on this trigger in order to proceed or if this Event could lead to triggering a separate new EPC. • A function or event can have ONLY ONE arrow coming in and/or going out. Whereas, Rules/ connectors such as XOR & OR can have either: • Multiple incoming connections and a single outgoing connection • A single incoming connection and multiple outgoing connections • Connectors cannot have multiple incoming and outgoing connections.
1/15/2013 42VACD – Value Added Chain Diagram• The VACD represents a high-level view of the functions that add value to a business and the rough order in which they proceed. In addition to the rough process flow, we can also represent some of the high level hierarchy associated with these functions.• The main objects in a VACD are functions, but with a different symbol as compared to those used in the EPC. Function Function In EPC In VACD• But you can copy and paste theses functions back and forth between VACD and EPC, the symbol will automatically change depending on the model in which they are used.• The difference is that the functions in a VACD are connected together• without intervening events or rules.
1/15/2013 43FAD – Function Allocation Diagram• Function Allocations in the Event-Driven Process Chain (EPC) models enable the EPC to be put in context with the resources required to deliver the process and the environment in which it operates.• Thus, FADs can be assigned at the right places in the process (but only to functions), to indicate the relationship between the Business Process and environment/ resources such as organization, systems, documents and technical terms as shown below.
1/15/2013 44FAD Relationship between Function and its environmental components and resources
1/15/2013 45Incorrect FAD Customer Service Advisor is a position in the Sales Department and it is incorrect to show both responsible for the function
1/15/2013 47Model Hierarchy• The models to be used for these 4 levels are: • Level 1- VACD • Level 2- VACD • Level 3- VACD supported by FAD to model RACI, Risks, SOP, KPI • Level 4- EPC or VACD • Level 5- EPC (where level 4 is a VACD)
1/15/2013 48Level 1 Process - VACD• Also known as MEGA Processes
1/15/2013 49Level 2 Process - VACD• Level 1 – Buy Process is decomposed into Level 2 • Introduce Assortment • Master Data Maintenance • Vendor Management Strategy
1/15/2013 50Level 3 Process – VACD can besupported by FAD• Level 2 – Introduce Assortment Process is decomposed into Level 3 • Construct Assortment and Planogram • Edit Assortment and Planogram
1/15/2013 51Level 4 Process – VACD can besupported by FAD• Level 3 – Construct Assortment and Planogram Process is decomposed into Level 4 APPLICATIO N ROLES
1/15/2013 52Level 5 Process• Level 5 is modelled using an EPC.• This is an optional level which can be used when the 4 Levels are not enough to decompose the process to the desired detail.• If there is a Level 5 in the process decomposition in that case level 4 has to be a VACD.
1/15/2013 58Recap• Processes generally begin with an Event and flow through to Business Results• All tasks / activities are assigned to a ROLE• A model should display how data / objects are transferred and where they are going• Process can be modeled in a hierarchical manner – sub processes
1/15/2013 59Assignment• Business Scenario • The company is into selling Furniture • Company sells through Store, Catalogue, Online • Customer books order, pays and await delivery • Customers can call the call center for • Quotes • Delivery Updates • Installation appointment • Complaints • Returns Create a Process Decomp for this business – Level 4