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Yves Caseau – Business Process Enterprise Model - 2012 1/13
Operations Research for Managing BusinessOperations Research for Managing Business
Processes Communication and PerformanceProcesses Communication and Performance
BPEM : Business Process Enterprise ModelBPEM : Business Process Enterprise Model
ICORES
February 2012
Yves Caseau
Bouygues Telecom – Bouygues’s eLab
National French Academy of Technologies
Yves Caseau – Business Process Enterprise Model - 2012 2/13
MotivationsMotivations
 « Traditional » ICORES 
 Crisp, well-defined models corresponding to a clear issue
 Sophisticated optimization techniques that bring value 
(compared to human judgment)
 « Enterprise as a System » optimization
 Cumbersome and coarse models, multiple issues
 Simple optimization/simulation methods
 Part of management sciences, 
a tradition of models & simulation
 Why ?
 Structural issues (in addition to cultural, political, human …)
 How
 Enterprise modeling with operational semantics
 “As simple as possible but no simpler”
 White box model
 Complex system approach (rich interaction of various concerns)
Cf. “Garbage-can
model” of decision
Ill-defined problem
Human > computer
Cf. Vehicle Routing
problems
Computer > human
Not a « personal
fiction » !
Not a
Yves Caseau – Business Process Enterprise Model - 2012 3/13
OutlineOutline
 Motivations 
Operations Research for Management Science
 First Part
Enterprise Models & Business Processes
 Second Part
BPEM: Business Process Enterprise Model
Four Dimensions of Enterprise Modeling
 Third Part
Applications – Two Examples
 Conclusion
Yves Caseau – Business Process Enterprise Model - 2012 4/13
Enterprise ModelsEnterprise Models
Part1:Motivations
Ressources
CEISAR BAPO (ESAPS)
IDEAS
CPP (Club Pilotes Processus) Altime
MODAF
Business Organization
Architecture
Process
Activity Activity Activityprocess
Manual/assisted/automated
value
Organization/ Actors
Information
objectives Units/roles
Enterprise Entity
Capability Role
ServicesProcess
Strategy /goals
Information System
Business Process
Action Plan
Innove / adjust / optimize
Results:
-Satisfaction
- value
- risk
Managing processes
Support process
Functions
Business processes
Business processes
Business processes
environment
customers
Logical Capability
project
delta
data function
Activity
Information
system
Organization
resource
skills
Strategy/vision
TasksEnterprise
IT
Yves Caseau – Business Process Enterprise Model - 2012 5/13
BPEM at a glanceBPEM at a glance
Part1:Motivations
Leadership Process KPI
people
Policy &
Strategy
Partnership
& resources
Leadership
Customer
results
Society
results
Innovation & Learning
enablers results
Left out
(long term)
Perimeter of
BPEM
Information Flows
activity activity
Environment
Management
Control
Coordination
customer
Production Factors
Products /
services
transfer
synchronization manage
 Enterprise macro-model
(Mintzberg)
 Executable
(operational semantics)
 Focus on Business Process
& Communication
 What BPEM is and
isn’t, based on EFQM
 Focus on structure
 Short-term vision
of enterprise
operations
Yves Caseau – Business Process Enterprise Model - 2012 6/13
BPEM : Enterprise ModelBPEM : Enterprise Model
Part2:BPEM
H
T
Communication Matrix
C1 C2
Cn…
Information System IT
BusinessProcesses
Market
Requests
delivery
Management
Capabilities
Functiona
l mapping
Four dimensions:
 Business Processes, associated with
customer requests, represent
enterprise operations
 Processes require time and consume
resources, value creation depends
on SLA (quality is expressed as
timeliness)
 Organization is the combination of
hierarchy (top-down mapping of
capabilities) and project/process
management
 Information flows derive from
processes (signal & content)
BPEM
Yves Caseau – Business Process Enterprise Model - 2012 7/13
BPEM Organization ModelBPEM Organization Model
Part2:BPEM
T
U
1
…
Hierarchical
Management
U
2
U
3 …
U
4
U
Un
-1
U
n
Process(Transverse)
Management
Functional
mapping
C1
C2 Cn…
Capabilities
R1(l1,l2, .. , lq)
Set of
Ressources
Activity
R2(l1,l2, .. , lq)
Rp(l1,l2, .. , lq)
WBS
Σ(skill, level, units)
 Hierarchy : tree structure
(organizational chart)
 Transverse : set of coordination
resources
 Communication throughput is
measured with man.hour
 Functional units are described
through capabilities
 man.hours
 skill levels
 Supports specialization
(one unit = one capability)
as well as polyvalence
Yves Caseau – Business Process Enterprise Model - 2012 8/13
BPEM : Business Process ModelBPEM : Business Process Model
 Business Process Patterns (sequence of activities with skill requirements)
 Business Process Instances (Actual load + value + SLA )
 Stochastic Load Generation
 Cover multiple scenarios (burst, overload, …)
 Events:
 Re-priorization based on value change
 Activity duration changes
Part2:BPEM
A1:C1
Σ(skill,level) A2 An
Process pattern
Stochastic
Request
Model1
Process
Instance
value
time
WBS
Σ(units
)
WBS
Σ(units)
WBS
Σ(units)
Variation in
rate & load
request
VV m
in
m
ax
SLA
(Service Level
Agreement)
Time is the only
dimension for
quality =
better skills means
faster execution
Yves Caseau – Business Process Enterprise Model - 2012 9/13
BPEM : Communication ModelBPEM : Communication Model
Part2:BPEM
H
T
Management
Process
Monitoring &
Management
Transfer &
Synchronize
WBS
Σ(units
)
WBS
Σ(units)
WBS
Σ(units)
Environment
Event:
Value
Variation
Event :
production
variation
 Business processes operations
entail 3 types of information flows:
 Inter-activity (ignored)
 Transfer & synchronization
between consecutive activities
 Monitoring & Management
between units and T&H
 BPEM information flows:
 valued in man.hour
 generated from BP measures,
using simple ratios
 BPEM semantics = scheduling :
Communication flows are broken
into communication units
Precedence constraints represent:
(a) BP orchestration
(b) event management
Yves Caseau – Business Process Enterprise Model - 2012 10/13
Optimizing the use of communication channelsOptimizing the use of communication channels
 Application of BPEM to study the impact of communication channels on
performance
 Four categories of communication channels
 “Communication Channel Model”
 Characteristics
 Policies
Part3:
Applications
Communication
Channel
Model
BPEM
Results
(value)
Learning
(optimization)
Activities to be
assigned to resources
Channel
PoliciesCommunication flow
units to be scheduled
Scheduler
Receivers
Organization
Rules/ Culture
Information
Flows
Meetings
Face-to-Face
Electronic – Synchronous
Electronic – Asynchronous
• Randomization
(Monte-Carlo)
• Evolutionary
algorithms (learning):
local opt, genetic
algorithm
Channel Performance Characteristics:
Throughput, Latency, Loss, Scheduling constraints
Yves Caseau – Business Process Enterprise Model - 2012 11/13
Simulation of Information FlowsSimulation of Information Flows
 Goals – How to ?
 Best use of multiple / new communication channels ?
 Study the resilience of organization w.r.t. load distribution and bursts
 Look at Organizational Architecture issues (e.g., flat hierarchies)
 Organization shapes communication channels (e.g., meetings)
 Simulation – Preliminary results
 BPEM simulation produces value, usage ratios, lead time statistics
 Effectiveness of email
 Importance of Affiliation Network
Structure (MSN 2012 paper)
 Organizational design impacts
information flows
 Next Steps
 Full compliance with BPEM 
 What-if scenarios
 New 2.0 communication tools
Part3:
Applications Leverage their specificity
• synchronous/ asynchronous
• Face-to-face vs electronic
• Ease of sharing (1-to-N)
• immersive vs. multitasking
• etc.
Yves Caseau – Business Process Enterprise Model - 2012 12/13
Understanding lean management of processesUnderstanding lean management of processes
 Two scenarios
Part3:
Applications
 Experimental verification of Taiichi Ohno’s insight :
a « tight system » is more robust
 Lean systems are more flexible
 Economic rationalization (cost of lowering
utilization rate) depends on CoD (Cost of Delay)
Strict SLA – 60% utilization
BPEM « lean »
Scheduling
Policies
Scheduler
BPEM « reg »
SameBusinessProcesses
Loose SLA, 80% utilization
Yves Caseau – Business Process Enterprise Model - 2012 13/13
ConclusionsConclusions
 We need Enterprise Models
 Use OR for Management science
 Other applications : Information System
 BPEM is compatible with most conceptual models 
 We need computational Enterprise Models
 Complex issues : simulation as an investigation tool
 Structural issues are only one of the dimensions, but it is critical and
amenable to analysis though simulation
 Managing Information Flows is a key part of management
science
 An old idea (March & Simon)
 A modern idea (Enterprise 2.0 & information overload)
 Communication requires time:
scheduling & structure matters
Yves CASEAU

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Managing Business Processes Communication and Performance

  • 1. Yves Caseau – Business Process Enterprise Model - 2012 1/13 Operations Research for Managing BusinessOperations Research for Managing Business Processes Communication and PerformanceProcesses Communication and Performance BPEM : Business Process Enterprise ModelBPEM : Business Process Enterprise Model ICORES February 2012 Yves Caseau Bouygues Telecom – Bouygues’s eLab National French Academy of Technologies
  • 2. Yves Caseau – Business Process Enterprise Model - 2012 2/13 MotivationsMotivations  « Traditional » ICORES   Crisp, well-defined models corresponding to a clear issue  Sophisticated optimization techniques that bring value  (compared to human judgment)  « Enterprise as a System » optimization  Cumbersome and coarse models, multiple issues  Simple optimization/simulation methods  Part of management sciences,  a tradition of models & simulation  Why ?  Structural issues (in addition to cultural, political, human …)  How  Enterprise modeling with operational semantics  “As simple as possible but no simpler”  White box model  Complex system approach (rich interaction of various concerns) Cf. “Garbage-can model” of decision Ill-defined problem Human > computer Cf. Vehicle Routing problems Computer > human Not a « personal fiction » ! Not a
  • 3. Yves Caseau – Business Process Enterprise Model - 2012 3/13 OutlineOutline  Motivations  Operations Research for Management Science  First Part Enterprise Models & Business Processes  Second Part BPEM: Business Process Enterprise Model Four Dimensions of Enterprise Modeling  Third Part Applications – Two Examples  Conclusion
  • 4. Yves Caseau – Business Process Enterprise Model - 2012 4/13 Enterprise ModelsEnterprise Models Part1:Motivations Ressources CEISAR BAPO (ESAPS) IDEAS CPP (Club Pilotes Processus) Altime MODAF Business Organization Architecture Process Activity Activity Activityprocess Manual/assisted/automated value Organization/ Actors Information objectives Units/roles Enterprise Entity Capability Role ServicesProcess Strategy /goals Information System Business Process Action Plan Innove / adjust / optimize Results: -Satisfaction - value - risk Managing processes Support process Functions Business processes Business processes Business processes environment customers Logical Capability project delta data function Activity Information system Organization resource skills Strategy/vision TasksEnterprise IT
  • 5. Yves Caseau – Business Process Enterprise Model - 2012 5/13 BPEM at a glanceBPEM at a glance Part1:Motivations Leadership Process KPI people Policy & Strategy Partnership & resources Leadership Customer results Society results Innovation & Learning enablers results Left out (long term) Perimeter of BPEM Information Flows activity activity Environment Management Control Coordination customer Production Factors Products / services transfer synchronization manage  Enterprise macro-model (Mintzberg)  Executable (operational semantics)  Focus on Business Process & Communication  What BPEM is and isn’t, based on EFQM  Focus on structure  Short-term vision of enterprise operations
  • 6. Yves Caseau – Business Process Enterprise Model - 2012 6/13 BPEM : Enterprise ModelBPEM : Enterprise Model Part2:BPEM H T Communication Matrix C1 C2 Cn… Information System IT BusinessProcesses Market Requests delivery Management Capabilities Functiona l mapping Four dimensions:  Business Processes, associated with customer requests, represent enterprise operations  Processes require time and consume resources, value creation depends on SLA (quality is expressed as timeliness)  Organization is the combination of hierarchy (top-down mapping of capabilities) and project/process management  Information flows derive from processes (signal & content) BPEM
  • 7. Yves Caseau – Business Process Enterprise Model - 2012 7/13 BPEM Organization ModelBPEM Organization Model Part2:BPEM T U 1 … Hierarchical Management U 2 U 3 … U 4 U Un -1 U n Process(Transverse) Management Functional mapping C1 C2 Cn… Capabilities R1(l1,l2, .. , lq) Set of Ressources Activity R2(l1,l2, .. , lq) Rp(l1,l2, .. , lq) WBS Σ(skill, level, units)  Hierarchy : tree structure (organizational chart)  Transverse : set of coordination resources  Communication throughput is measured with man.hour  Functional units are described through capabilities  man.hours  skill levels  Supports specialization (one unit = one capability) as well as polyvalence
  • 8. Yves Caseau – Business Process Enterprise Model - 2012 8/13 BPEM : Business Process ModelBPEM : Business Process Model  Business Process Patterns (sequence of activities with skill requirements)  Business Process Instances (Actual load + value + SLA )  Stochastic Load Generation  Cover multiple scenarios (burst, overload, …)  Events:  Re-priorization based on value change  Activity duration changes Part2:BPEM A1:C1 Σ(skill,level) A2 An Process pattern Stochastic Request Model1 Process Instance value time WBS Σ(units ) WBS Σ(units) WBS Σ(units) Variation in rate & load request VV m in m ax SLA (Service Level Agreement) Time is the only dimension for quality = better skills means faster execution
  • 9. Yves Caseau – Business Process Enterprise Model - 2012 9/13 BPEM : Communication ModelBPEM : Communication Model Part2:BPEM H T Management Process Monitoring & Management Transfer & Synchronize WBS Σ(units ) WBS Σ(units) WBS Σ(units) Environment Event: Value Variation Event : production variation  Business processes operations entail 3 types of information flows:  Inter-activity (ignored)  Transfer & synchronization between consecutive activities  Monitoring & Management between units and T&H  BPEM information flows:  valued in man.hour  generated from BP measures, using simple ratios  BPEM semantics = scheduling : Communication flows are broken into communication units Precedence constraints represent: (a) BP orchestration (b) event management
  • 10. Yves Caseau – Business Process Enterprise Model - 2012 10/13 Optimizing the use of communication channelsOptimizing the use of communication channels  Application of BPEM to study the impact of communication channels on performance  Four categories of communication channels  “Communication Channel Model”  Characteristics  Policies Part3: Applications Communication Channel Model BPEM Results (value) Learning (optimization) Activities to be assigned to resources Channel PoliciesCommunication flow units to be scheduled Scheduler Receivers Organization Rules/ Culture Information Flows Meetings Face-to-Face Electronic – Synchronous Electronic – Asynchronous • Randomization (Monte-Carlo) • Evolutionary algorithms (learning): local opt, genetic algorithm Channel Performance Characteristics: Throughput, Latency, Loss, Scheduling constraints
  • 11. Yves Caseau – Business Process Enterprise Model - 2012 11/13 Simulation of Information FlowsSimulation of Information Flows  Goals – How to ?  Best use of multiple / new communication channels ?  Study the resilience of organization w.r.t. load distribution and bursts  Look at Organizational Architecture issues (e.g., flat hierarchies)  Organization shapes communication channels (e.g., meetings)  Simulation – Preliminary results  BPEM simulation produces value, usage ratios, lead time statistics  Effectiveness of email  Importance of Affiliation Network Structure (MSN 2012 paper)  Organizational design impacts information flows  Next Steps  Full compliance with BPEM   What-if scenarios  New 2.0 communication tools Part3: Applications Leverage their specificity • synchronous/ asynchronous • Face-to-face vs electronic • Ease of sharing (1-to-N) • immersive vs. multitasking • etc.
  • 12. Yves Caseau – Business Process Enterprise Model - 2012 12/13 Understanding lean management of processesUnderstanding lean management of processes  Two scenarios Part3: Applications  Experimental verification of Taiichi Ohno’s insight : a « tight system » is more robust  Lean systems are more flexible  Economic rationalization (cost of lowering utilization rate) depends on CoD (Cost of Delay) Strict SLA – 60% utilization BPEM « lean » Scheduling Policies Scheduler BPEM « reg » SameBusinessProcesses Loose SLA, 80% utilization
  • 13. Yves Caseau – Business Process Enterprise Model - 2012 13/13 ConclusionsConclusions  We need Enterprise Models  Use OR for Management science  Other applications : Information System  BPEM is compatible with most conceptual models   We need computational Enterprise Models  Complex issues : simulation as an investigation tool  Structural issues are only one of the dimensions, but it is critical and amenable to analysis though simulation  Managing Information Flows is a key part of management science  An old idea (March & Simon)  A modern idea (Enterprise 2.0 & information overload)  Communication requires time: scheduling & structure matters Yves CASEAU

Editor's Notes

  1. Most important slide, if you do get my motivation, the rest of the talk will be lost since this is no cutting edge science Why: Big Enterprise efficiency issue ! White Box : simple, standard
  2. Deux messages: - ils existent (besoin pour IT et pour TQM) - ils utilisent une grammaire de concepts communs Key concepts: Business Processes Resource Organization Service / contracts -> value - Information
  3. Modèle (cf. Mintzberg – propre à la simulation - nanoéconomie) Focus on short-term operations, simple vue of value creation
  4. Parler de la probabilité Parler de la priorisation OCCAM’s razor: pas de qualité
  5. Principe clé de March & Simon “La capacité d’une organisation à maintenir un schéma complexe et fortement interdépendant d’activités est limitée pour partie par sa capacité à gérer les communications requise pour leur coordination” Le 21e siècle est celui du post-Taylorisme parce que la complexité de la coordination casse la logique du « séparation & spécialisation » Complexité des transferts de « contexte » (retour aux généralistes) Fréquence de la synchronisation avec l’environnement (aléas/incertitude)
  6. Characteristics: latency, throughput (one to M), sync/async of both ends, fidelity loss
  7. Rôle de l’organisation qui Façonne les canaux (comités, points) -> crée un « canal » de com Culture: donne les priorités et usage – ex: répondre au tel en réunion Efficacité du tel = fonction de la culture
  8. Comparons: « lean » IT : utilisation à 60% de la capacité, SLA serrés (50% lean ratio) « IT optimisé »: utilisation à 80% de la capacité, SLA plus “larges” (10-20% lean ratio = total des temps de service / temps de service global)