Introduction to BPM

MODULE_1 Content

◦ Introduction Background, history, concepts of BPM. BPM as a management Discipline versus a methodology. Possible benefits while practicing BPM. Organizational performance. BPM Process, BPM life cycle- Process identification, Process architecture. ◦ Business process management is a discipline in operations management in which people use Introduction to various methods to discover, model, analyze, measure, improve, optimize, and automate BPM business processes. Any combination of methods used to manage a company's business processes is BPM.

Background of BPM

◦ Business Process Management (BPM) is the discipline that combines knowledge from information technology and knowledge from management sciences and applies this to operational business processes. ◦ It has received considerable attention in recent years due to its potential for significantly increasing productivity and saving costs. Moreover, today there is an abundance of BPM systems. These systems are generic software systems that are driven by explicit process designs to enact and manage operational business processes ◦ BPM has a broader scope from process automation and process analysis to operations management and the organization of work. On the one hand, BPM aims to improve operational business processes, possibly without the use of new technologies, by modeling a business process and analyzing it using simulation, management may get ideas on how to reduce costs while improving service levels. On the otherhand,BPM is often associated with software to manage, control, and support operational processes. Background of BPM

◦ BPM systems provide more flexibility or support specific processes ◦ BPM techniques such as process mining can be used to discover and analyse emerging processes that are supported by systems that are not even “aware” of the processes they are used in. ◦ The notion of a process model is foundational for BPM. A process model aims to capture the different ways in which a case can be handled., History of BPM History

History of BPM

◦ Business Process Management (BPM) has various roots in both computer science and management science. Therefore, it is difficult to pinpoint the starting point of BPM. ◦ industrial revolution, productivity has been increasing because of technical innovations, improvements in the organization of work, and the use of information technology. Adam Smith (1723-1790) showed the advantages of the division of labor. Frederick Taylor(1856-1915) introduced the initial principles of scientific management. Henry Ford (1863-1947) introduced the production line for the mass production of “black T-Fords”. It is easy to see that these ideas are used in today’s BPM systems. ◦ Around 1950 computers and digital communication infrastructures started to influence business processes. This resulted in dramatic changes in the organization of work and enabled new ways of doing business. Today, innovations in computing and communication are still the main drivers behind change in almost all business processes. History of BPM

◦ Process model assist in managing complexity by providing insight andbydocumentingprocedures.Informationsystemsneedtobeconfiguredanddriven by precise instructions. Cross-organizational processes can only function properly if there is common agreement on the required interactions. process models are widely used in todays organizations. In the last century many process modeling techniques have been proposed. In fact, the well-known Turing machine described by Alan Turing (1912-1954) can be viewed as a process model. History of BPM

◦ The road to business process management (BPM) has been a difficult one that has gained from the successes and failures of various other attempts at achieving process-based organizational efficiency. ◦ In the 1980s there was a considerable focus on Total Quality Management (TQM). This was followed in the early 1990s by Business Process Reengineering as promoted by Hammer and Champy (1990). BPR had a chequered history, with some excellent successes as well as failures. ◦ Following BPR in the mid- and late 1990s, Enterprise Resource Planning (ERP) systems gained organizational focus and became the next big thing. These were supposed to deliver improved ways for organizations to operate, and were sold by many vendors as the 'solution to all your problems'. The ERP systems certainly did not solve an organization's process issues, nor make the processes as efficient and effective as they could have been. Towards the end of the 1990s and in the early 2000s, many Customer Relation Management (CRM) systems were rolled out with extensive focus on the customer view and customer experience. While this provided focus on the front office, it did not improve the back-office processes. More recently, Six Sigma has started to come into its own. History of BPM

◦ According to Hammer (1993), 'Coming up with the ideas is the easy part, but getting things done is the tough part. The place where these reforms die is down in the trenches' and who 'owns' the trenches? You and I and all the other people. Change imposed on the 'trench people' will not succeed without being part of the evolutionary or revolutionary process: Concepts of BPM

◦ Business Process is essentially a standardized way to convert a set of inputs into a desired output that a customer would find valuable, business analysis is the core aspect of process management. ◦ Key Factors Enabling BPM Success ◦ There are three major components that decide the success or failure of a Business Process Management (BPM) Implementation. ◦ Process ◦ People ◦ Technology Concepts of BPM

◦ Process ◦ All business processes need to be ‘fit for purpose’ and actually need to satisfy the demands of the clients/stakeholders involved. ◦ People ◦ Individuals play a key role in the success of BPM implementation, they are the ones who provide inputs ◦ Technology ◦ Technology also plays a significant role in the success of any BPM implementation Concepts of BPM

◦ Business Process Management Business Process Management (BPM) is a systematic approach that is used to make an organization's workflow effective, efficient and responsive to changing environment. ◦ Purpose of BPM To reduce human error and avoid miscommunication. Link operational processes to corporate strategies. Measure performance indicators from processes for evaluation of business success ◦ Business Process Model A Business Process Model (BPMd) typically consists of workflow diagrams, descriptions, inputs and outputs, KPIs and data that provide both overview and detailed information about an organization’s business processes. ◦ Utility of Business Process Model It helps to measure requirements of a process and eliminates the risk of losing value through inefficient or inappropriate activities. ◦ BPM Software Software that allows users to create BPM diagrams and integrate process content with critical business entities (departments, resources, etc.) ◦ . Concepts of BPM

◦ Business Process Re-engineering (BPR) The realignment of business process strategies through the use of an analytic tool and an intense consultation process. BPR is an off-shoot of BPM implementation that involves a great deal of risk due to change management. ◦ Business Process Design (BPD) BPD is the systematic working by which an organization understands, defines and documents the business activities that enable it to function efficiently, effectively and economically. ◦ Business Process Model (BPMd) Illustrated description of business processes, usually created with flow diagrams. The model contains the relationship between activities, processes, sub-processes and information, as well as roles, the organization and resources. It is also termed as Business Process Mapping Definition BPM

◦ Business process management (BPM) is a systematic approach to making an organization's workflow more effective, more efficient and more capable of adapting to an ever-changing environment. A business process is an activity or set of activities that will accomplish a specific organizational goal. ◦ The term business process management covers how we study, identify, change, and monitor business processes to ensure they run smoothly and can be improved over time. ◦ Business process management (BPM) is a discipline that uses various methods to discover, model, analyze, measure, improve, and optimize business processes. A business process coordinates the behavior of people, systems, information, and things to produce business outcomes in support of a business strategy. Processes can be structured and repeatable or unstructured and variable. BPM is a continual process of 6 steps. BPM is a continual process of 6 steps

1. Design- Existing processes and to-be processes are discussed amongst stakeholders and documented. The design includes process flows, roles, notifications and escalations, service level agreements, workflow task user interfaces and task management mechanisms.

2. Modelling -Modelling takes the design and considers how the process might operate in different scenarios. This what-if analysis considers real world business conditions.

3. Implementation-Developers implement the business models. This involves:

- creating process flows - creating user interfaces for workflow steps - integration with enterprise data sources and systems - setting up users and roles and associating with process steps. BPM is a ◦ 4. Execution ◦ The new business processes are continual operationalized. This may involve: process of 6 - staff training - organizational changes to align with steps new processes BPM is a Processes are monitored and 5. Monitoring process metrics continual are collected. process Process monitoring data is analyzed to determine how 6. Optimization well the process of 6 performs in real business steps conditions. BPM as management discipline- BPM Institute.org defines Business Process Management (BPM) as improvement and management of a firm’s end-to-end enterprise business processes in order to achieve three outcomes crucial to a performance-based, customer-driven firm: 1) clarity on strategic direction, 2) alignment of the firm’s resources, 3) increased discipline in daily operations. BPM as management

◦ discipline- Traditional methods of performance management focus on department & functional unit performance. ◦ BPM focuses on the management and continuous improvement of cross functional processes. This involves continuous monitoring, evaluation, measurement and process innovation. These cross-functional processes must be clearly defined and documented. Process Improvement can attribute performance objectives in terms of time, quality, cost and productivity must be defined. ◦ To fully achieve the value of BPM an organization should make it part of its culture – i.e. its beliefs and practices – just as it may have done with respect to customer satisfaction or quality. It must evolve to become a process-managed enterprise. A process-managed enterprise exhibits these attributes: ◦ Process improvement is embedded in the business strategy ◦ Competitive advantage is supported throughout the value chain ◦ It practices process-driven budgeting and resource allocation ◦ Key processes flow seamlessly through the value chain BPM as management discipline- ◦ BPM helps organization to take balanced approach to managing these six factors. The six factors are: BPM’s methodology

◦ DMEMO ◦ DMAIC BPM’s methodology

◦ BPM follows a lifecycle of phases, and each phase has its own set of tasks that need to be executed. The most common BPM methodology utilizes five stages: Design, Model, Execute, Monitor and Optimize (DMEMO). Each phase of DMEMO asks specific questions and has certain purposes. ◦ Design – How is it done and what steps can be taken to complete the process? ◦ Model – Why is it done that way? What improvements can we make? What can we eliminate to consolidate and automate the procedure? ◦ Execute – Make adjustments in an attempt to improve the process. ◦ Monitor – Track the process and see if the modifications are yielding improvements. ◦ Optimize – What more can we do? If improvements can be made, it’s time to repeat the DMEMO process. BPM’s methodology

◦ DMAIC is one of the methodologies typically used in Six Sigma. Each phase of DMAIC has a particular purpose, and uses a step-by-step model to enhance the desired process. Six sigma(performance management aims at reducing number of defects in a business process to as close as zero defects to million opportunity) ◦ Define – Define the problem in terms of the customer. ◦ Measure – Evaluate aspects of the current process and collect data. ◦ Analyze – Interpret data to identify cause and effect. ◦ Improve – Use the analysis to determine how to change and optimize the process. ◦ Control – Eliminate deviations from the target goal in order to correct future mistakes. Benefits while practicing BPM 1.Improves process quality, reliability and output. 2. Helps for continuous process improvement that provides foundations for BPR. 3. Maximizes process visibility that helps in reducing costs. 4. Improves strategic decision-making by providing correct information at correct time. It provides end-to-end performance visibility and optimization of resources. 5. Improves operational efficiency that results in the avoidance of wastage and loss of company resources. Benefits while practicing BPM ◦ 6. Consistent execution reduces process cycle time. ◦ 7. Improves customer satisfaction by delivering better and enhanced value. ◦ 8. Promotes organizational flexibility and business agility(adapt to change). ◦ 9. Promotes communication and collaboration between departments. ◦ 10. Helps in standardization of procedures. ◦ 11. Helps in measuring KPIs and thus improves accountability. ◦ The primary aim of business Processes Management (BPM) is to make organisation effective. ◦ BPM characteristics tends to lead to improvement in the key factors : speed, cost, flexibility, reliability and satisfied relationships. ◦ Organisations are likely to yield superior Organisational performance if they operate business process management (BPM) and managerial capabilities Performance together. Managers commitment and employee involvement have a positive impact on technical BPM capabilities improving organisations' performance. ◦ Organisation culture helps in maintaining the relationship between managerial and technical capabilities. ORGANIZATIONAL PERFORMANCE AND BPM Strategic choice and direction: BPM helps aligning strategies to goals and targets considering the resource based view of the firms .

Organizationa Organisational design: BPM is incorporated into the design of an organisation influencing the scope, l Performance structure and intentions of power within and around processes . and BPM Maximising the market value chain: Processes are used to describe the market value chain. The linking of business processes leads to the innovation of new products and services and delivers them to customers, provides any support in their use and collects revenues and market information. The market value chain requires the interaction of processes between different organisations which make up a chain or extended network. Performance management: Business Process Management relies on the management of resources and on a series of measurement systems, these allow the setting of targets, monitoring for progress and the initiating corrective action. Application of the Balanced Score Card approach7 fulfils this requirement

Organisational co-ordination: Business Process Management addresses organisational co-ordination both internally and external with Organizationa partners who are customers or suppliers. Aspects of coordination are seen in the decision making processes of the organisation. l Performance Organisational learning and knowledge management: Business Process Management provides a framework for organisational learning and can incorporate the management of knowledge. Business Process and BPM Management is a vehicle for exploring a knowledge based view of an organisation.

Organisational culture: The organisational culture shapes the way Business Process Management works . Fundamental process concepts behind BPM The BPM Lifecycle Process identification

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35 Process Identification ◦ Goal - Identify processes that are worthwhile to manage, understand organization , Maximise value of BPM projects. ◦ e.g. to redesign or to support with workflow technology ◦ Key activities ◦ Enumerate major processes Process Architecture ◦ Determine process scope ◦ Assess strategic relevance of each process ◦ Render high-level judgments of the “health” of each process ◦ Feasibility ◦ Define manageable process innovation scope ◦ Process Selection COMPONENTS OF PROCESS ARCHITECTURE

Business process

◦ “A set of logically related tasks performed to achieve a defined business outcome.” Davenport (1990)

◦ Two important characteristics: ◦ it has customers, either internal or external to a firm ◦ it crosses organizational boundaries, i.e. it occurs across or between organizational subunits Process selection

Four criteria: 1. Assess strategic relevance of each process 2. Render high-level judgments of the “health” of each process 3. Qualify the culture and politics of each process 4. Define manageable process innovation scope ◦ Concurrent process initiatives ◦ limited resources ◦ coordination complexity ◦ Limited number of “active” process management projects ◦ Mark is going on a trip to Sydney. He decides to call a taxi from home to the airport. The taxi arrives after 10 minutes, and takes half an hour for the 20 kilometers to the airport. At the airport, Mark uses the online check-in counter and receives his boarding pass. Of course, he could How to have also used the ticket counter. He does not have to check-in any luggage, and so he model a proceeds straight to the security check, which is 100 meters down the hall on the right. The business queue here is short and after 5 minutes he walks up to the departure gate. Mark decides process not to go to the Frequent Flyer lounge and instead walks up and down the shops for 15 minutes and buys a newspaper before he returns to the gate. After ten minutes waiting, he boards the plane. Many ways of modelling a process… Many ways of modelling a process… Many ways of modelling a process… Many ways of modelling a process… Many ways of modelling a process… Many ways of modelling a process…

PROCESS DISCOVERY AND MODELING PROCESS DISCOVERY

MODULE_2  Process Discovery and Modelling Process discovery – Objectives, Approaches, techniques, strength and weakness of various techniques, Process Modelling Process, Principles, Process modeling technique and CONTENT tools, identifying value chain, value stream, Process classification framework , Different ways to express process knowledge, Maps Vs Models, Different types of diagram, Modelling Pitfall. PROCESS DISCOVERY

01 02

Business process discovery or Along with business process process discovery, is a collection modelling, it is widely viewed as of tools and techniques used to critical for successful business define, map and analyse an process management (BPM) organization‘s existing business initiatives; it is considered as an processes. initial step in BPM. PROCESS DISCOVERY-STEPS

Defining the setting: This phase is dedicated to Defining assembling a team in a company that will be responsible for working on the process.

Gathering information: This phase is concerned with building an understanding of the process. Different Gathering discovery methods can be used to acquire information on a process.

Conducting the modeling task: This phase deals with organizing the creation of the process model. The Conducting modeling method gives guidance for mapping out the process in a systematic way.

Assuring process model quality: This phase aims to guarantee that the resulting process models meet Assuring different quality criteria. This phase is important for establishing trust in the process model. Process discovery deals with analysing the current state of an organization‘s business processes provides a baseline for process improvements. Identifies key problem areas to be addressed by OBJECTIVES OF BPM, eliminating guesswork. BUSINESS PROCESS DISCOVERY Process discovery tools and techniques can be manual or automated, including the use of business intelligence (BI) and business analytics (BA). The goal of Process Discovery is to make explicit an existing process in order to make it known, understood and shared by everyone involved.  Process Discovery serves to clarify and document the current situation (often called the as-is process).

 As-is definitions are generally used as the starting point to a process improvement effort. Business process discovery OBJECTIVES OF (BPD) related to business process management and process mining is a set of techniques that manually or automatically BUSINESS PROCESS construct a representation of an organisations' current DISCOVERY business processes and its major process variations. These techniques use evidence found in the existing organisational methods of work, documentations, and technology systems that run business processes within an organization. Domain Expert Process Analyst

WHO IS INVOLVED

7 EXPERTISE OF PROCESS ANALYSTS

Problem understanding Problem solving Modelling skills

Episodic knowledge available to Trigger identification (problem- Well-structured and laid out get to root of problem related cues) Systematically labelled Knowledge organisation helps to Hypothesis management Explicit start and end points of a structure problem (formulation and testing of process hypotheses) Appropriate granularity and Goal setting (what needs to be decomposition achieved next) Top-down strategy driven by analysis goals 8 APPROACHES OF PROCESS DISCOVERY

Existing Facilitated Event Logs Documents Sessions Existing Documents

APPROACHES In situations where documentation of the process exits within OF PROCESS the organization it is possible to streamline the extraction and collection of relevant information from the DISCOVERY documentation. The Discovery exercise then consists in identifying in the documentation various activities, actors, artifacts, events, systems along with the goals pursued. Some common sources of documentation for this type of discovery are the standard operating procedures (SOPs), governance or standard conformance documentation, internal policies and handbooks.  Facilitated Sessions

 In the facilitated approach, a facilitator is charged with gathering from subject matter experts (SME) and end users point of views of the process under study . The collection of these points of views can either be carried out on an individual basis during interviews or APPROACHES OF collectively during a facilitated workshop. During discovery PROCESS DISCOVERY everyone describes in his own words; how they are involved in the process, why they are doing it, what they are using to support their work, where they are doing the work, and when the work is required. Upon completion of the discovery, the facilitator is responsible to assemble and correlate all the gathered information in a coherent and unique description.  Event Logs  Automated discovery tools are also being explored. This new approach is often referred to as Process APPROACHES OF Mining. In this approach, logs PROCESS DISCOVERY produced by information systems supporting daily operations of the organization are interpreted by software looking to extract patterns of processing.  The challenge of all discovery approaches is CHALLENGES OF to try to ensure completeness of the analysis. Simple analysis techniques such PROCESS as HW5 (How, Who, What, Where, When, and Why) questioning may help in ensuring DISCOVERY coverage. Typical questioning in identifying “how things get done” includes: who is involved in getting things done, what is involved in getting things done, where are things getting done, when do things get done and why are these things done. Evidence-Based Discovery

DISCOVERY Interview-Based METHODS/TECHNIQUES - Discovery

Workshop-Based Discovery PROCESS DISCOVERY TECHNIQUES

1 2 3

Evidence-based Interview-based Workshop-based • Document analysis • Observation • Automated process discovery • Process mining

15  Various pieces of evidence are typically available for studying how an existing process works. Here, we discuss three methods: document analysis, observation, and automatic process discovery.  Document analysis exploits the fact that there is usually documentation material available that can be related to an existing process.  Advantages EVIDENCE-BASED  process analyst can use them to get familiar with certain parts of a process DISCOVERY and its environment, and also to formulate hypotheses.  Problems with document analysis-  Documents are not organised in process oriented way.  Many companies document detailed work instructions for tasks and work profiles for positions. These are typically too detailed for modelling processes.  many of the documents are only partially trustworthy. Fora process discovery project, it is important to identify how a process works in reality. Many documents do not necessarily show reality. Some of them are outdated and some state how things should work idealistically, and not how people conduct them in reality.  Observation as a method of discovery, directly follow the processing of individual cases in order to get an understanding of how a process works. The process analyst can either play the active role of a customer of a process or the passive role . As part of the active customer role, the process analyst triggers the execution of a process and records the steps that are executed and the set of choices that are offered.  Limitations- Not able to capture back end process. EVIDENCE-BASED  The role of a passive observer is more appropriate for understanding the entire DISCOVERY process.  Limitation-  requires access /approval of supervisor and corresponding team to the people and sights where the process is being worked on  There might be a potential issue with people acting differently, because they are aware of being observed. People usually change their behaviour under observation in such a way that they work faster and more diligently.  Advantages- It reveals how a process is conducted in reality today, which is in contrast to document analysis that typically captures the past. EVIDENCE-BASED DISCOVERY

Event logs need to be recorded in Automatic process discovery such a way: an individual case of emerges from the extensive the process, a specific activity of operational support of business the process, and a precise point in processes provided by various time. If these three pieces of information systems. Automatic information are available in the process discovery makes use of event logs, then automatic process event logs that are stored by these discovery techniques can be used information systems. to reconstruct the process model.  Interview-based discovery refers to methods INTERVIEW BASED that build on interviewing domain experts about how a process is executed. With these DISCOVERY methods, we have to explicitly take into account the challenges of process discovery, namely the fact that process knowledge is scattered across different domain experts, that domain experts typically think in terms of individual cases, and that domain experts are often not familiar with business process modeling languages. This has implications for how the interviews can be scheduled, and which phases and iterations are required. Helps in getting more information on the business process. the setting can be organized in such a way that the contributions to the discussion are immediately used to model the process. In contrast to interviews, it not only involves more participants, but also a bigger set of roles. Additional roles are required for facilitating the discussion and for operating the process modeling tool. WORKSHOP- The facilitator takes care of organizing the verbal contributions of the participants. The tool operator is responsible for directly BASED entering the discussion results into the modeling tool. Several domain experts also participate, as much as the process owner and DISCOVERY the process analyst.

Limitation -The process requires preparation and scheduling. The process takes more time can be expected to take three to five half- day sessions . PROCESS MINING

Process mining is the method of analysis of process on the basis of event logs.

21 STRENGTHS AND WEAKNESSES

Technique Strength Weakness

Document Analysis • Structured information • Outdated material • Independent from availability of stakeholders • Wrong level of abstraction

Observation • Context-rich insight into process • Potentially intrusive • Stakeholders likely to behave differently • Only few cases

Automatic Discovery • Extensive set of cases • Potential issue with data quality • Objective data

Interview • Detailed inquiry into process • Requires sparse time of process stakeholders • Several iterations required before sign-off

Workshop • Direct resolution of conflicting views • Synchronous availability of several stakeholders BUSINESS PROCESS MODELLING

 Business process modeling, often called process modeling, is the analytical representation or illustration of an organization‘s business processes.

 Along with business process discovery, process modeling is widely viewed as a critical component in successful business process management (BPM). It is used to map out an organization‘s current (or ―as-is‖) processes to create a baseline for process improvements and to design future (or ―to-be‖) processes with those improvements incorporated. Process modeling often uses Business Process Modeling Notation (BPMN), a standard method of illustrating processes with flowchart-like diagrams that can be easily understood by both IT and business managers. STEPS IN PROCESS MODELLING

 Modeling a process in the discovery phase is a complex task. Therefore, it is good to follow a predefined procedure in order to approach this task in a systematic way. One way to do so is to work in five stages, as follows:

 1. Identify the process boundaries

 2. Identify activities and events

 3. Identify resources and their handovers

 4. Identify the control flow

 5. Identify additional elements PROCESS BOUNDARIES

• Identify the Process Boundaries

• The identification of the process boundaries is essential for understanding the scope of the process. Part of this work might have been done already with the definition of a process architecture. Technically, this means we need to identify the events that trigger our processes and those that identify the possible process outcomes. For example, let us consider again the order fulfillment process that we modeled in Chap. 3. We observe that this process is triggered by the receipt of a purchase order from the customer, and completes with the fulfillment of the order as an outcome. These two events mark the boundaries of this process. Accordingly, we use a start message event and an end event in BPMN to represent them. If our process would havehadnegativeoutcomes,wewouldhavemodeledtheseviaterminateendevents IDENTIFY ACTIVITIES AND EVENTS who is responsible for them. This information provides the basis for the definition of pools and lanes, and the assignment of activities and events to one of these pools and lanes. At this stage, the order of the activities is not defined yet. Therefore, it is a good step to first identify those points in the process where work is handed over from one resource to another, e.g. from one department to the other. These handover points are important since a participant being assigned a new task to perform, usually has to make assumptions about what has been completed before. Making these assumptions explicit is an essential step in process discovery IDENTIFY RESOURCES AND HANDOVERS

 who is responsible for them. This information provides the basis for the definition of pools and lanes, and the assignment of activities and events to one of these pools and lanes. At this stage, the order of the activities is not defined yet. Therefore, it is a good step to first identify those points in the process where work is handed over from one resource to another, e.g. from one department to the other. These handover points are important since a participant being assigned a new task to perform, usually has to make assumptions about what has been completed before. Making these assumptions explicit is an essential step in process discovery IDENTIFY RESOURCES AND HANDOVERS IDENTIFY CONTROL FLOW YOUR MODELLING PROJECT

For your modeling project, capture • Control flow • Activities • Gateways • Conditions • Events • Resources

 Describe the process in such a way that it can be used to trace in which state the admission/ doctor- studies is and who is conducting which steps of processing. 7 PRINCIPLES OF PROCESS MODELLING G1 Use as few elements in the model as possible

G2 Minimize the routing paths per element

G3 Use one start and one end event

G4 Model as structured as possible

G5 Avoid, where possible, OR routing elements

G6 Use verb-object activity labels

G7 Decompose a model with more than 30 elements WHY USE BUSINESS PROCESS MODELLING

 To create visual models of processes - Word-driven documentation is often not sufficient for employees to understand the way a process is performed. Backing it up with visual representations helps provide a comprehensive picture.

 Align operations - With any new business strategy, keeping processes consistent after a change requires figuring out how to stay within the overall organizational strategy. Analyses are also performed to identify bottlenecks and inefficiencies, and enable process change.

 Improve process communication - Communication is the key to all of the following tasks: formalizing existing processes (that were once informal knowledge), making consistent processes, eliminating guesswork with business rules, handling exceptions, providing regulatory compliance, ensuring business people are in charge, and supporting new initiatives (such as Six Sigma). WHY USE BUSINESS PROCESS MODELLING

 Improve operational efficiency - Modelling processes promotes optimization by allowing simulation and illustrating needed improvements. This reduces cycle time and promotes better resource utilization.

 Gain competitive advantage - A process is better overall when it is constantly refined and aligned with its business‘ strategies. This efficiency places the company in a forward-leaning position to be better than the competition. BUSINESS PROCESS MODELLING TECHNIQUES AND TOOLS

 The purpose of business process modelling is to improve performance by increasing efficiency and productivity. The tools used are essentially visual aids that can quickly and clearly tell a story of a process, such as making an airline reservation, fulfilling online orders or transferring funds from one bank account to another.

 Here are a few common tools and techniques of business process modelling: BUSINESS PROCESS MODELLING TECHNIQUES AND TOOLS

 Flowcharts

 A flowchart is a diagram that represents a process and can be created with readily available software. Flowcharts contain a starting and ending point. Typically, symbols such as circles, squares and diamonds represent events or activities, while arrows indicate sequential flow and associations between steps.  Functional Flow Block Diagram  A functional flow block diagram (FFBD) is used to describe requirements in functional terms. Rather than being solution-oriented like a flowchart, the FFBD is functionally oriented and illustrates the functional architecture of a system. In a FFBD, elements such as equipment, training and software are identified and defined, support requirements are tied to specific functions and proper sequencing is established.

 Control Flow Diagram

 A control flow diagram is used to help describe the normal flow of a process, with added limits and constraints. Control flow diagrams illustrate how certain conditions, such as alternate operations, additional data or equipment, or alternative inputs affect a process flow. BUSINESS PROCESS MODELLING TECHNIQUES AND TOOLS

 Gantt Chart

 A Gantt chart is another way to visually communicate information. Typically a bar chart, Gantt charts focus on activities and tasks involved in a process, depicted sequentially and against a timeline. They also show the dependency relationships between activities. With a Gantt chart, a professional can see at a glance whether a project is on, ahead or behind schedule.

 PERT Diagram

 A PERT (Program Evaluation and Review Technique) diagram is used to help identify the minimum amount of time needed to complete a project. The concept behind this technique is that certain activities cannot be started until others are completed. The PERT diagram helps avoid unrealistically short timelines by estimating the shortest, most likely and longest time each step of a process will take.

 IDEF Diagram  IDEF is an acronym for Integration Definition, a commonly used technique in business process modeling. IDEF refers to 16 methods, designed to capture a type of information through modeling processes. IDEF methods are used to create diagrams that define system control and data flow, and can graphically represent a wide variety of processes with any desired level of detail. BUSINESS PROCESS MANAGEMENT SYSTEM, PORTER’S VALUE CHAIN

 The concept of Value Chain was developed around 1985 by Michael Porter and subsequently popularized by his book ―Competitive Advantage‖. One visual representation of Porter‘s Value Chain from Wikipedia is:

 Porter‘s value chain approach is consistent with the desires of a business process management system deployment. Porter‘s value chain entails viewing organizational units as systems composed of interrelated subsystems or processes that involve consumption and transformation of resources such as money, work force, materials, infrastructure and management. Porter‘s Value Chain in essence defines ways in which an organization unit could uniquely manage its business processes to gain competitive advantage.

 How an organization manages its core business activities as defined by the Porter‘s Value Chain will ultimately determine the overall cost of doing business and the revenue generated. Organizations benefit when a value chain is structurally integrated in an overall business process management system (BPM system).

BUSINESS PROCESS MANAGEMENT SYSTEM, PORTER’S VALUE CHAIN

 For businesses to develop superior performance, they need to restructure their business strategies to be in line with the organization‘s core operations such as innovation and development and distribution of products or services. A business process management system can provide the integration of value chain concepts with other key aspects of BPM. IDENTIFYING VALUE CHAIN

 Organizations should first identify and link all their business activities together into one Value Chain defined by the Porter helps organizations to develop a big picture of all the activities that are involved in the creation of finished products and how these processes are interrelated.

 Once a product value chain has been developed,

 Determine the cost of an individual Value Chain process

 Implement a cost reduction strategy or reorganize the entire Value Chain processes.

VALUE STREAM

 Value-stream mapping employs standard symbols to represent items and processes, therefore knowledge of these symbols is essential to correctly interpret the production system problems. Value-stream mapping is a lean- management(waste elimination method without compromising on productivity) method for analyzing the current state and designing a future state for the series of events that take a product or service from its beginning through to the customer. At Toyota, it is known as "material- and information-flow mapping".[1] It can be applied to nearly any value chain. PROCESS CLASSIFICATION FRAMEWORK

 The Process Classification Framework has been developed over the past three years by the APQC International Benchmarking Clearinghouse, with the assistance of several major international corporations, and in close partnership with Arthur Andersen & Co. The intent has been to create a high-level, generic enterprise model that will encourage businesses and other organizations to see their activities from a cross-industry process viewpoint instead of a narrow functional viewpoint. Many organizations now have used the Process Classification Framework in practical ways to better understand their processes, to reach out across industry boundaries to communicate and share information, and to classify information in various forms.

PURPOSE THE PROCESS CLASSIFICATION FRAMEWORK

 serves as a high-level, generic enterprise model that encourages businesses and other organizations to see their activities from a cross-industry process viewpoint instead of from a narrow functional viewpoint.

 All too often, organizations become bogged down by the fear of making mistakes in ―apples to oranges‖ benchmark comparisons. Convinced that they have unique characteristics and constraints, they have difficulty understanding how to compare their processes meaningfully to those of other, different organizations. However, experience shows that the potential of benchmarking to drive dramatic improvement often lies squarely in making ―out of the box‖ comparisons and a search for insights not found within typical intra-industry paradigms. How can organizations communicate effectively across industry boundaries and overcome the vocabularies that obscure the underlying commonality of their business processes? The Process Classification Framework supplies a generic view of business processes often found in multiple industries and sectors—manufacturing and service, healthcare, government, education, and others. Additionally, many organizations now seek to understand their inner workings from a horizontal process viewpoint, rather than from a vertical functional viewpoint. How can they, for example, differentiate the sales process from the existing sales department? The Process Classification Framework seeks to represent major processes and subprocesses, not functions, through its structure and vocabulary. The Framework does not list all processes within any specific organization. Likewise, not every process listed in the Framework is present in every organization. THE DIFFERENT WAYS TO EXPRESS PROCESS KNOWLEDGE

 Models  Maps  Diagrams  Word documents . MAPS VS MODELS.

 Models

 Maps  Process models are processes of the same nature that are classified together into a model.  A process map is a planning and management Thus, a process model is a description of a tool that visually describes the flow of work. process at the type level.  Process maps show a series of events that  Purpose of Model is descriptive (track what produce an end result. actually happens during the process),prescriptive  It shows who and what is involved in a process (defined the process and how they should or and can be used in can reveal areas where a might be performed .Exploratory Provide process should be improved. explanations about the rationale of processes. PROCESS MAPPING VERSUS PROCESS MODELING

 In business, process mapping is the task of defining what exactly a business does, who is responsible, and what is the standard by which the success of a business process can be judged. This is not to be confused with business process modeling, which is focused more on the optimization of business processes.  In process mapping, the organization is seen as a single entity with interconnecting parts. Each of the interconnecting parts directly or indirectly adds value to the end-product or service.  Though both activities serve to create a graphical representation which ultimately serves to improve business processes, modeling incorporates business and economic rules while mapping is more directed towards clarifying roles and procedures. Mapping can be useful in compliance with the Public Company Accounting Reform and Investor Protection Act of 2002 (SOX Act of 2002). This federal law requires a certain amount of understanding and visibility of compliance issues.  Process modeling often allows users to go deeper into the relationships among the tests and outcomes. BPMN is an industry standard used to graphically represent process steps and actions in a process model. It is essential that stakeholders be able to see how the process flows and, upon execution, determine where inefficiencies and bottlenecks reside. PROCESS MAPPING VS. PROCESS MODELLING

 Process mapping is a high-level review of an organization as a single entity with interconnecting parts. The flow of business processes through the organization is reviewed to clarify who does what, how processes are performed, and by what standard they are judged. In process modelling, professionals are more focused on how efficient the processes are, using business and economic best practices. Although both depict the processes graphically, process modelling is a deeper dive into the relationships that produce the services and outcomes. BUSINESS PROCESS MAPPING SYMBOLS STEPS INVOLVED IN BUSINESS PROCESS MAPPING

 Identify the process you want to document  Gather information from process participants via interviews or observations  Identify the start and end points of your process  Break the process into distinct tasks and decision points  If you want to perform a detailed analysis, you may want to continue by creating a business process model. BASIC COMPONENTS OF BUSINESS PROCESS MODELING

 Process. The overall workflow from a starting point to its successful completion.

 Tasks or Activities. Something performed by a person or a system.

 Flows. This is indicated on the process map by connecting lines and arrows.

 Events. These are triggers that cause a process to begin, end, or may redirect a process to a different path.

 Gateways. Decisions that can change the path of the process depending on conditions or events.

 Participants. Specifically naming the people or systems that perform the tasks or activities. TYPES OF DIAGRAMS USED FOR BUSINESS PROCESS MODELLING (IBM )

 Process charts

 The process chart is one of three choices available for business process flow modelling in IBM® Rational® System Architect; the other two are the BPMN business process diagram, and the IDEF3 process flow diagram.  Process map diagrams

 The process map diagram is identical in functionality to the process chart diagram.  Business process hierarchy diagrams

 In the business process hierarchy diagram, you can group Process Objects in a hierarchy. You can also show in the hierarchy the derived logical process that the process objects perform.  Process decomposition diagrams in business process modeling

 The process decomposition diagram enables you to create a hierarchy of Process Threads and the Elementary Business Processes that belong to them. You can create this hierarchy manually or automatically based on information already in the project encyclopedia in Process Chart diagrams and the matrix editor. TYPES OF DIAGRAMS USED FOR BUSINESS PROCESS MODELLING(IBM)

 Functional hierarchy diagrams in business process modeling

 The functional hierarchy diagram enables you to model the organizational functions in your business in a hierarchical structure.

 Relationship map diagrams for business process modeling

 You can use a relationship map diagram to show relationships between definitions that occur across diagrams. TYPES OF DIAGRAMS /TECHNIQUES OF BUSINESS PROCESS MODELLING

 Business process modeling notation (BPMN)  UML diagrams  Flowchart technique  Data flow diagrams  Role activity diagrams  Role interaction diagrams  Gantt charts  Integrated definition for function modeling  Colored petri-nets  Object oriented methods  Workflow technique  Simulation model BUSINESS PROCESS MODELING NOTATION (BPMN)

 BPMN is a graphical representation of your business process using standard objects.

 BPMN consists of the following basic building blocks;

 Flow objects: events (circles), activities (rectangles with rounded corners), and gateways (diamonds)  Connecting objects: mainly comprising arrows, these indicate sequence flow (filled arrows), message flow (dashed arrows), and associations  Swim lanes (visually distinguishes job sharing and responsibilities for sub-processes of a business process. ) pools (graphic container) and lanes (sub-partition of the pool)  Artifacts: data objects, groups, and annotations BPMN EXAMPLE ADVANTAGE OF BPMN

 is that it‘s a standard with well-defined syntax. So many business analysts are familiar with it which makes collaboration much easier. Also, most modeling tools support BPMN which makes it much easier to share and edit if even using different software. All the together makes BPMN the most popular business process modeling technique at the moment. WHEN TO USE BPMN

 You find yourself stuck using the handful of most commonly used workflow diagram elements to represent a concept. ...

 Your organization requires you to use it. It also typically means you are completing more formal modeling that is implementable in business process management tools. ...

 You are applying for a job you are otherwise qualified for that requires knowledge of or experience with BPMN notation. UML DIAGRAMS

 UML is a modeling language mainly used for specification, visualization, development and documenting of software systems. But business professionals have adapted it as a powerful business process modeling technique.

 With 14 different UML diagram types, it offers a flexible and powerful way to visualize almost any business process. They are typically used for modeling the detailed logic of a business process. In many ways, UML diagrams are the object-oriented equivalent of flow charts.

 Main advantages is its flexibility.

 Limitation 14 different diagram types, some might find it difficult to understand the diagrams. So probably not the most popular choice among analysts. UML software supports drawing of all UML diagram types. Templates, separate libraries for various UML diagrams and knowledge article to guide through the process.

 Click here to start drawing UML with Creately >>

 https://www.lucidchart.com/pages/how-to-draw-a-sequence-diagram-in-UML FLOWCHART

 When to Use a Flowchart  To develop understanding of how a process is done.  To study a process for improvement.  To communicate to others how a process is done.  When better communication is needed between people involved with the same process.  To document a process.  When planning a project.  Flowchart Basic Procedure  Materials needed: sticky notes or cards, a large piece of flipchart paper or newsprint, marking pens.  Define the process to be diagrammed. Write its title at the top of the work surface. FLOWCHART

 Discuss and decide on the boundaries of your process: Where or when does the process start? Where or when does it end? Discuss and decide on the level of detail to be included in the diagram.

 Brainstorm the activities that take place. Write each on a card or sticky note. Sequence is not important at this point, although thinking in sequence may help people remember all the steps.

 Arrange the activities in proper sequence.

 When all activities are included and everyone agrees that the sequence is correct, draw arrows to show the flow of the process.

 Review the flowchart with others involved in the process (workers, supervisors, suppliers, customers) to see if they agree that the process is drawn accurately. DATA FLOW DIAGRAM

 A data flow diagram (DFD) illustrates how data is processed by a system in terms of inputs and outputs. As its name indicates its focus is on the flow of information, where data comes from, where it goes and how it gets stored.

 How to Create a Data Flow Diagram

 Making a data flow diagram involves a few simple steps:

 Add symbols that represent processes, datastores, dataflows and external entities

 Connect symbols with lines to represent the flow of information

 Add text

 Show any loops back to previous steps or link to sub processes SYMBOLS AND NOTATIONS USED IN DFDS

 Two common systems of symbols are named after their creators:

 Yourdon and Coad

 Yourdon and DeMarco

 Gane and Sarson SYMBOLS USED IN DFD WHEN TO USE DFD

 used as a preliminary step to create an overview of the system without going into great detail.

 DFDs can also be used for the visualization of data processing (input,output and processing . ROLE ACTIVITY DIAGRAMS

 Role Activity Diagrams (RADs) are a useful way of describing processes. They are valuable in documenting processes as they are now, and as they might be in the future.

 Roles • Role - a set of activities which when taken together achieve some particular goal. ROLE ACTIVITY DIAGRAMS

 Activities • Activities - the items of work that people do.

Ordering • Ordering - activities are ordered by state. ROLE ACTIVITY DIAGRAMS

 Interactions. • Interactions – the point at which a role interacts with another role in order to fulfil an objective. Interactions are shown by a horizontal line linking two boxes.

 Choices. • Choices - the conditions under which different activities take place.

 ROLE ACTIVITY DIAGRAMS

 Part refinement - In the terminology of Role Activity Diagrams this is a ‗Part Refinement.‘ What it really says is that the vertical is a state that can be refined into further parts . Linked triangles indicate that activities below them can be undertaken in any order. Therefore, ‗Prepare notes for meeting‘ can be undertaken before, at the same time as, or after ‗Read other materials. ROLE ACTIVITY DIAGRAMS

 Cardinality • Cardinality – the numerical relationship between role types.

 Explicit State Marker. • State - It is sometimes useful to identify and label particular states in a Role Activity Diagram. A state is marked explicitly by concentric circles. WHEN TO USE ROLE ACTIVITY DIAGRAM

 Role activity diagrams (RAD hereafter) are a very popular high-level visual language that it is useful for capturing the dynamics and role structure of an organization. ROLE INTERACTION DIAGRAM

 The purpose of interaction diagrams is to visualize the interactive behavior of the system. sequence and collaboration diagrams are used to capture the dynamic nature but from a different angle.

 The purpose of interaction diagram is −

 To capture the dynamic behaviour of a system.

 To describe the message flow in the system.

 To describe the structural organization of the objects.

 To describe the interaction among objects. HOW TO DRAW

 Following things are to be identified clearly before drawing the interaction diagram

 Objects taking part in the interaction.

 Message flows among the objects.

 The sequence in which the messages are flowing.

 Object organization. ROLE INTERACTION DIAGRAM

 The Sequence Diagram

 Following are two interaction diagrams modeling the order management system. The sequence diagram has four objects (Customer, Order, SpecialOrder and NormalOrder). ROLE INTERACTION DIAGRAM

 The Collaboration Diagram  In the collaboration diagram, the method call sequence is indicated by some numbering technique. The number indicates how the methods are called one after another. We have taken the same order management system to describe the collaboration diagram. WHERE TO USE INTERACTION DIAGRAMS

 Interaction diagrams can be used −

 To model the flow of control by time sequence.

 To model the flow of control by structural organizations.

 For forward engineering.

 For reverse engineering.

 PROCESS HIERARCHY DIAGRAMS

 A process hierarchy diagram (or functional decomposition diagram) provides a graphical view of the functions of a system and helps you decompose them into a tree of sub-processes.

 The PHD is commonly used during the analysis phase of a project to identify all the processes in a system by name, and decompose them into multiple levels of sub-processes.

 In the following example, the root process, Marketing, is decomposed into three sub-processes, Paper Advertising, Email Campaign, and Corporate Web Site. The latter is in turn decomposed into two sub- processes, and so on: WHEN TO USE

 When you’re working on a large project and need to understand the size of the work effort: Knowing all the processes you have to document can help.

 When you’re validating with your stakeholders that you have captured all the processes you’ll document: Stakeholders can very easily see whether you‘ve missed a process.

 When you’re eliciting processes in scope from your stakeholders: The stakeholders are able to interact with a diagram structure they‘re very familiar with (in the company‘s org chart). BUSINESS MODELLING PITFALLS

 Lack of governance Who owns process modeling How do we measure its success. Who and how do we make decisions regarding tools, methods, procedures, reporting duties. And most important, how do we fund all of this. There is a lack of an established body of knowledge on process (modeling) governance.

 Lack of link between corporate strategy and process modelling can make the whole efforts in significant. BUSINESS MODELLING PITFALLS

 Lack of synergies Business modeling can be conducted for a wide range of purposes. It could be the interest to document, to cost, to simulate, to animate or to improve a business process. Or the driver might be the need to be, project management, knowledge management, document management, and relationship management and so on. However, in practice we see many organizations where different organizational groups model the same process independent from each other for different purposes. BUSINESS MODELLING PITFALLS

 Lack of qualified modelers A business process analyst needs more than an advanced and customized modeling tool and detailed modeling conventions. He or she needs the right methods and skills to be able to facilitate interviews and workshops. (S)He must be able to translate comments and process documentation into structured and overall appropriate process models. BUSINESS MODELLING PITFALLS

 Lack of qualified business require the right process representatives, i.e. appropriate subject matter experts. In principle, I need three types of people. First, I need people with knowledge about the current processes. Their level of knowledge will depend on the focus of the project. Their role is to report on the current ways the process is conducted, what steps are undertaken, what data is required, what exceptions do exist, who is involved, etc. In most cases, there is no time and/or budget for detailed time and motion studies, so the process modeler relies on the expertise of the business representative. Of course, the modeler has to be careful that (s)he captures as-is models – instead of as-if models. Furthermore, these representatives will become the ambassadors for the process change, and thus they have a crucial role in the organizational change to follow. Second, we need people who provide directions. What is the overall objective? What is the timeframe for the project? Can we think out-of-the-box? What are the constraints? Who will be responsible? How do we measure the success? Third, we need people who create ideas. These people do not have to be involved in the actual current process. However, they have to have a sufficient understanding of the project objectives, unutilized capabilities, current common practices, and future developments. It is also worthwhile to involve further external stakeholders (customers, vendors, further business partners) in selected modeling sessions, so their viewpoints can be considered as well. The right mix of business representatives is crucial for the project success. BUSINESS MODELLING PITFALLS

 Lack of details While the scope of processes which can be modelled seems to be endless, there are often annoying constraints about what parts of a process can be modelled. BUSINESS MODELLING PITFALLS

 Lack of measuring modelling performance We model processes to improve process performance in the hope that this positively contributes to increased business performance. It is important, therefore, to have, right from the start, a good understanding of the parameters we are seeking to change and the nature of the change we seek. Such parameters must be measurable and the measurement process should be well understood before we start so that we can create a baseline against which our changes can be assessed. Understanding the nature of the improvements that we are trying to make and maintaining a credible record of outcomes as we progress, can only happen if we develop appropriate plans for process performance measurement before we start making changes. Companies have different attitudes in terms of the evidence they require before they believe in actual process improvement. The actual measures may vary and go far beyond the obvious processing time. In a recent project in an insurance company in the area of processing claims related to personal injuries in car accidents, it was the minimization of the average payout, which was far more important than the processing time. In a loan application example, the focus was on ―maximizing face-to-face time spent with the customer.‖ Measuring the cost of a process is another interesting challenge. The discussions related to activity-based costing have shown that any measurement of process costs has to be very much aware of the characteristics of direct and indirect.

Process Improvement (Analysis & Design) MODULE -3 Process Improvement (Analysis & Design)- Process analysis and design, Concepts ,Methods of process analysis; Syllabus Quantitative , Qualitative analysis, Characteristics of well defined process, Fundamental process concepts behind BPM The BPM Lifecycle

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3 Process Analysis and Design is a Process systematic approach to improve our understanding of the business analysis processes of an organization to assist in the realization of tangible benefits and such as cost reduction, process design efficiency, and effective human resource allocation. Process Improvement

Analyzing Processes Understand and define organizational process requirements Perform problem identification and analysis Conduct organizational context analysis Business process mapping Process requirement engineering Workshop facilitation Enterprise business process model analysis Process Improvement

Designing or Redesigning Processes Identify and measure process efficiencies Reduce process waste Future state process visioning Process change impact analysis Process re-engineering Process stakeholder (customer) impact analysis Process solution assessment and validation Process Improvement

Managing Continuous Process Improvement Identify key process performance indicators (metrics) Process control chart mapping and tracking Process error prevention Process defect corrective action planning Right work, right first time framework development Sustainable cost management Operational performance improvement When Should You Apply Business Process Analysis Unidentified issues like regular delays or increased customer complaints Process stakeholders are unclear about how to carry out a process Before introducing automation to make sure the process is optimized A team wants to replace a process with a new version The 4 Stages of Business Process Analysis

Identify The Process Collect Process Information Analyze As-Is Process Develop To-Be Plan Identify The Process The first step is to choose the ‘as-is’ process to be analysed and identify the stakeholders who handle it. Be sure to have a clear starting and stopping point for the process. Collect Process Information Next, gather as much information about the process as possible to understand the issues it faces, the objectives, the scope of improvement, and other goals of the analysis. Analyse As-Is Process Implement a business process analysis plan. Get to the bottom of the identified process, define the process in flowcharts and other diagrams, and measure its effectiveness. Develop To-Be Plan Finally, use the analysis to make recommendations how a ‘to-be’ process should look. Point out the requirements, suggest resources and changes, define a timeline, etc. Benefits Does an Organization Get From Business Process Analysis Clear documentation of the process and greater understanding Robust data on how the process is performing Identify the obstacles that cause delay to certain processes Identify which user actions are hindering the process and where inefficiencies are Better training for new employees taking on the process

Principles and methods of Qualitative Analysis Quantitative Analysis – Subjective Analysis Method – . Value Added Analysis – Consists of 2 stage . Value Classification . Waste Elimination

. Value Classification – is a technique to identify un necessary steps in a process in view of eliminating them . . Checklist Method Stepwise information about the process Observation and interviewing . Detail Document

. Step -1 Decompose the process into steps . Step -2 Identify positive outcome of the process from customers point of view Value Classification In summary, value-added analysis is a technique whereby an analyst decorticates a process model, extracts every step in the process and classifies these steps in to one of three categories, namely: • Value-adding (VA): This is a step that produces value or satisfaction of the customer. When determining whether or not a step is value-adding, it may help to ask the following question: Would the customer be willing to pay for this activity? • Business value-adding (BVA): The step is necessary or useful for the business to run smoothly, or it is required due to the regulatory environment of the business. • Non-value adding (NVA): The step does not fall into any of the other two categories. Waste elimination Identification and elimination of waste is the central theme of a lean manufacturing production system Lean manufacturing is a dynamic and constantly improving process dependent upon understanding and involvement by all employees Successful implementation requires that all employees must be trained to identify and eliminate waste from their work Waste exists in all work and at all levels in the organization

Issue Analysis Job of process Analyst is to identify and document the issues related to a process. Analyst will gather information from multiple sources –several Stakeholder, Process manager , Process Owner. .Root cause Analysis .Issue documentation and Impact Assesment .Pareto Analysis Root Cause Analysis Is a family of technique to help analyst identify and understand root causes of problem or undesirable events . Root cause Analysis is helpful to identify and understand the issues that prevent a process from having better performance. Techniques of root cause analysis .Cause effect Diagram .Why Why Diagram Cause Effect Diagram Relationship between negative effect and its causes . Negative Effect is Recurrent Issue and undesirable level of process performance. Causes can be casual and contributing factor Casuals – If corrected eliminated /avoided would prevent issues from occurring in future . Contributing Factor – Set the stage for or that increase the chance of a given issue occurring. Causes categories are written and discussion is continued (6M). Machine – Function/storage/ IT network / Poor User interface / Lack of integration between multiple system. Method – The way the process is defined , Understood and performed .(unclear, Lack of empowerment, Lack of timely communication) Cause Effect Diagram Material Man – Lack of training and clear instruction, Lack of incentives , Expecting too much from process participants, Inadequate recruitment of process participants. Measurement- Calculation Milieu- Environmental factor, Customer, Supplier These provides guidelines for brainstorming session Alternative Categories are – 4 Ps Policy , Procedure, people , Plant Diagrammatic representation of cause and effect is known as Fish Bone .

Why Why Diagram Is also known as tree diagram , is a technique to analyse the cause of negative effects.5 why reason for negative . Step –I Identify Issue / Multiple Issue (why does this happen/ What are the main sub issues) Step –II Possible factors are identified – Each of these factors are then analysed using same questions . Factors are eliminated and mitigated (written in point and subpoint). Issue Documentation and Impact Analysis Issue Register will help in providing more detailed analysis of individual issues and their Impact. The focus of issue register is to categorise identified issues as part of process The components of issue register is to form of a table with predefined set of a fields. Issue Description Priority Assumption Qualitative Quantitative

. Pareto Analysis A typical approach to conduct Pareto analysis is as follows: 1. Define the effect to be analyzed and the measure via which this effect will be quantified. The measure might be for example: ◦ Financial loss for the customer or for the business. ◦ Time loss by the customer or by the process participants. ◦ Number of occurrences of a negative outcome, such as number of unsatisfied customers due to errors made when handling their case. 2. Identify all relevant issues that contribute to the effect to be analyzed. Pareto Analysis 3. Quantify each issue according to the chosen measure. This step can be done on the basis of the issue register, in particular, the quantitative impact column of the register. 4. Sort the issues according to the chosen measure (from highest to lowest impact) and draw a so-called Pareto chart. A Pareto chart consists of two components: a. A bar chart where each bar corresponds to an issue and the height of the bar is proportional to the impact of the issue or factor. b. A curve that plots the cumulative percentage impact of the issues. For example, if the issue with the highest impact is responsible for 40 % of the impact, this curve will have a point with a y-coordinate of 0.4 and an x-coordinate positioned so as to coincide with the first bar in the bar chart. Quantitative analysis is a valuable tool to gain systematic insights into a process. A range of techniques are available for analyzing business processes quantitatively, in terms of performance measures such as cycle time, total waiting time and cost. Specifically, there are three techniques: flow analysis, queueing analysis and simulation. All these techniques have in common that they allow us to calculate performance measures of a process, given data about the performance of individual activities and resources in the process. Performance Measures Flow Analysis Flow analysis is a family of techniques that allow us to estimate the overall performance of a process given some knowledge about the performance of its activities. For example, using flow analysis we can calculate the average cycle time of an entire process if we know the average cycle time of each activity. We can also use flow analysis to calculate the average cost of a process instance knowing the cost-per-execution of each activity, or calculate the error rate of a process given the error rate of each activity.

Flow analysis

Queueing theory is a collection of mathematical techniques to analyze systems that have resource contention. Resource contention inevitably leads to queues as we all probably have experienced in supermarket check-out counters, at a Performance bank’s office, post office or government agency. Queueing theory gives us techniques to analyze important parameters Measures of a queue such as the expected length of the queue or the expected waiting time of an individual case in a queue. Such an arrival process is called a Poisson process. Performance Measures Simulation Process simulation is arguably the most popular and most widely supported technique for quantitative analysis of process models. The basic idea underpinning process simulation is quite simple. In essence, a process simulator generates a large number of hypothetical instances of a process, executes these instances step-by-step, and records each step in this execution. The output of a simulator typically includes the logs of the simulation as well as some statistics related to cycle times, average waiting times and average resource utilization. Process Design Process Design aims to create new processes or enhance the existing ones. It should be clear that, unlike analysis, the Design of Process is future-oriented and it is impossible to accomplish this activity competently and correctly without having the analysis done first. It is necessary to define the process’ specifications to design it: Goals and objectives Performance Workflow Platforms and technologies Data sources Operational and financial controls Integration with other processes The seven principles of process design

Integrating customers Value-added activities Reducing Handoffs Warning: avoid automate too much! Patterning of processes Business Rules Compliance 1. Process Objective Identified 2. Executive Sponsor Identified and Involved 3. Process Owner Identified; Given Responsibility For and Authority Over the Process 4. Process Inputs Identified 5. Process Suppliers Identified and Involved 6. Key Customers Identified and Involved 7. Secondary Customers Identified and Consulted 8. Process Outputs Identified 9. Process is Described by a Sound Business Model 10. Process Hierarchy is Understood 11. Execution is Enforceable 12. Designed to Provide Service Characteristics Metrics 13. Service Metrics Recorded and Analyzed, Not Just Collected 14. Designed To Provide Process Metrics 15. Process Metrics Recorded and Analyzed, Not Just Collected 16. of well defined Documentation is Thorough, Accurate, and Easily Understood 17. Process Contains All Required Value-Added Steps 18. Process process Eliminates All Non-Value-Added Steps 19. Process Guarantees Accountability 20. Process Provides Incentives for Compliance, and Penalties for Avoidance or Circumvention 21. Process is Standardized Across All Appropriate Departments and Remote Sites 22. Process is Streamlined As Much As Possible and Practical 23. Process is Automated Wherever Practical But Only After Streamlining 24. Process Integrates With All Other Appropriate Processes Characteristics of well defined process 1. Objective Identified – The overall objective of the process needs to be stated, written down, shared with all appropriate parties, and agreed to and clearly understood by all process design participants. The objective should answer the questions of what problem will the process solve, which issues will it address and how will the process add value and quality to the environment. 2. Executive Sponsor Identified and Involved – Each process needs to have an executive sponsor who is passionate about the successful design and ongoing execution of the process. This person provides support, resources, insight and executive leadership. Any required participation or communication with other groups, either inside or outside of the infrastructure, is typically arranged by the executive sponsor. This individual is often the manger of the process owner. 3. Process Owner Identified; Given Responsibility For and Authority Over the Process – This person will lead the team that designs the process, identifies the key customers and suppliers of it, and documents its use. On an ongoing basis the process owner will execute, communicate, and measure the effectiveness of the process. 4. Key Customers Identified and Involved – Key customers are those individuals who are the immediate users and direct beneficiaries of the process. For example, suppose you designing processes to request the re-print of a report or the restoration of a file. Key customers for these processes may be users Characteristics of well defined process who are most likely to request these services on a regular basis. Their involvement in developing the process is important to ensure practical design and ease of use. 5. Secondary Customers Identified and Consulted – Secondary customers are those that may use a process less frequently than primary customers, or may be the eventual rather than immediate beneficiaries of the process. In the above example, if administrative assistants are making the original requests for re-prints or restorations, then their managers are likely to be the secondary customers of the process. Their consultations can be helpful since they may be the ultimate users of the process. 6. Process Outputs Identified – These are the specific deliverables or services being provided to the primary and secondary customers. The quality of the delivery and content of these outputs is usually measured with Service Metrics. 7. Process Inputs Identified – These are the specific input entities required by the process. They may take the form of soft inputs such as data, information or requests, or may be hard inputs such as diskettes, tapes, or other physical entities. 8. Process Suppliers Identified and Involved – Process suppliers are the individuals who provide the specific inputs to a process. These suppliers may be internal to an IT infrastructure such as data entry departments. They may be external to an IT infrastructure but internal to IT as with a development group inputting change requests. They may be external to IT but internal to a company as with an outside user group supplying report modification information. Process suppliers may also be external to a company such as hardware and software vendors who may provide details about how an upgrade is to be performed. 9. Process is Described by a Sound Business Model – In simple terms, a robust process should make common business sense. The benefits of using the process should exceed the cost and efforts expended to design, execute and maintain the process. The business side of a robust process sometimes involves leasing agreements, maintenance agreements, and Service Level Agreements (SLAs). 10. Process Hierarchy is Understood – Some processes have secondary, or sub-processes, underneath them. Individuals who are developing well-designed robust processes know and understand the relationships between the primary and secondary processes. 11. Execution is Enforceable – Most any process, regardless of design, needs to be enforced to be effective. Whenever possible and practical, software techniques such as passwords, authorizations, audit trails, or locks, should be used to enforce compliance with a process. When technical enforcement is not practical, management support, review boards, metrics or other procedural techniques should be used to ensure enforcement. . Characteristics of well defined process 12. Designed to Provide Service Metrics – Most processes measure something associated with its output. Often it involves a quantitative measure such as transactions processes per second or jobs completed per hour. In addition to these, a robust process also focuses on qualitative measures that are oriented toward the end-user. These metrics show the relative quality of the service being provided. For example, service metrics involving a report delivery process may include not only how often the report is delivered on time, but also whether it was delivered to the right individual, in the correct format, with accurate content, and on the proper media. Service metrics should measure the benefits of the process to the end-users in their own terms. The metrics should be customer-oriented and focused on measuring right thing; in a word, these metrics should exhibit effectiveness. 13. Service Metrics Compiled and Analyzed, Not Just Collected – Mediocre infrastructures often invest a fair amount of time, energy and cost to collect and compile metrics, but do little to analyze them. The real value of meaningful measurements come from thoroughly and consistently examining them for trends, patterns and relationships, and then applying the results of the analysis to improve the effectiveness of the particular service being measured. 14. Designed To Provide Process Metrics – Robust processes not only have service metrics associated with them but process metrics as well. The key difference between a service metric and a process metric is that a service metric focuses on how effective a process is in regards to a customer, while a process metric focuses on how efficient a process Characteristics of well defined process is in regards to a supplier. A process metric indicates the productivity of a procedure by measuring such things as resources consumes or cycle times. The frequency that reports are delivered on time is a service metric since it measures the end-result of the process. The number of times the report had to be re-printed to obtain acceptable quality is a process metric since it measures the amount of effort required to produce the end product. Abnormal ending of job processing, re-routing of problems, rerunning of jobs, reprinting of reports and restoring of files are common examples of process metrics. This characteristic reinforces the notion that process metrics should be supplier-oriented and focused on measuring the entity right rather than measuring the right entity. In a word, these metrics determine efficiency Tools and techniques of process improvement Process Improvement is used to identify, analyze and improve existing processes within an organization to meet new goals and objectives. This is an at a glance review of the top methodologies employed for Process Improvement. The tools and techniques most commonly used in process improvement include: DRIVE Process mapping DMAIC Statistical Process Control (SPC) Simulation DRIVE DRIVE is an approach that can be used as part of process improvement. D efine the scope of the process, the criteria to measure success by, and agree the deliverables. R eview the current process, identify and collect data. I dentify improvements to the process and necessary changes to sustain the improvements V erify that the improvements will achieve the goals that were defined, then prioritize and plan the improvements E xecute the plan and implement the changes, gather feedback and review Tools and techniques of process improvement Process mapping This is a technique of creating a diagram to represent your process. Examples include BPMN models, Value Stream Mapping, and flowcharting. This is very useful to understand how a process works and where it can be improved, but by importing these diagrams into a simulation and adding the real life data they suddenly become a visual and interactive way to accurately test out changes on your process. Tools and techniques of process improvement DMAIC DMAIC is a process improvement cycle developed as part of the Lean Six Sigma methodologies. Define : Define what is currently known about the process. Measure : Collect the data, decide what to measure and how to measure it. Analyze : Analyze the data collected to determine the cause of problems (defects) in the process. Improve : Identify and implement solutions to address these defects. Control : Monitor the improvements to ensure sustained success Tools and techniques of process improvement Statistical Process Control (SPC) SPC is a strategy for reducing the variability in processes which are the cause of most quality problems. Decisions and actions are all based on the analysis of data, so establishing a thorough data recording system is the crux of this methodology. You can use SPC to monitor and control a process to ensure it is optimized. Its most common application is quality control in manufacturing. An important tool for SPC is the Control Chart; used to monitor processes using means and ranges. Tools and techniques of process improvement Simulation A simulation is a computer model that mimics the operation of a real or proposed system, such as the day-to-day operation of a bank, the running of an assembly line in a factory, or the staff assignment of a hospital or call centre . The simulation is time based, and takes into account all the resources and constraints involved, as well as the way these things interact with each other as time passes. Simulation also builds in the randomness you would see in real life. For example, it doesn't always take exactly 5 minutes for a customer to be served and a customer doesn't always arrive every 15 minutes. This means that the simulation really can match reality, so when you make changes to the simulation it will demonstrate exactly how the system would behave in real life. With simulation software you can quickly try out your ideas at a fraction of the cost of trying them in the real organization. And, because you can try ideas quickly, you can have many more ideas, and gain many insights, into how to run the organization more effectively. PROCESS MEASUREMENT

Module 4 SYLLABUS • Process Measurement -Process measurement, Concepts, Principles, Dimensions process performance measurement. Validation of measurement data. Manage by measurement. Definition a tops-down measurement system. Defining organizational, process and activity level measures. Measurement techniques, tools, Different methods of process measurement. Different methods to define specific metrics. FUNDAMENTAL PROCESS CONCEPTS BEHIND BPM THE BPM LIFECYCLE

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3 PROCESS MEASUREMENT • Measurement is the assignment of a number to a characteristic of an object or event, which can be compared with other objects or events. Process Measures are critical to understanding not only the baseline state of a Process, but if (and if so, how much) improvements have been made. Process measurement skills are essential to BPM success. Measuring the performance of business processes is challenging since organizations are challenged to achieve effective and efficient results. Applying performance measurement models to this purpose ensures alignment with a business strategy, which implies that the choice of performance indicators is organization-dependent. THE CONCEPTS AND PRINCIPLES OF PROCESS MEASUREMENT • Profit maximisation –Maximise long term shareholder value --- Maximise revenue and minimise cost----Satisfying customer (effectiveness)/Resource utilisation (Efficient) • Non Profit Organisation -----survive and grow while satisfying customer need-----Use resources efficiently while satisfying customers need ----Satisfying customer (effectiveness)/Resource utilisation (Efficient) • Process Measurements deals with measuring the process attributes like cost, duration , error probability(pre requisites for assessment) THE CONCEPTS AND PRINCIPLES OF PROCESS MEASUREMENT • Predicting the attributes before actual implementation and execution of process model would be desirable . • Purpose of process measurement – Understand – Control – Improve PROCESS EFFECTIVENESS MEASUREMENT

• Process effectiveness can also be measured in many ways. Effectiveness of the process refers to how well the process is functioning in terms of its quality as well as output besides customer satisfaction. Data and reports maintained by the department show the actual performance or output of the process. Several data and reports in the form of Customer complaints, defective supplies or output, late deliveries, incomplete deliveries, rejections and rework etc are the critical parameters that reflect the process effectiveness. Therefore gathering data and analyzing data in conjunction with process walkthrough becomes necessary. PROCESS EFFICIENCY MEASUREMENT

• Another important factor that is considered for the study of the process is its efficiency. Process efficiency includes the cycle time taken to complete the process or the task as well as the resources utilized to complete one unit of output. Further we can also add the quality parameters to the output measurement and the overall value added to the overall output can also be computed to arrive at the process efficiency. • Measuring cycle time provides valuable clue to the utilization of resources as well as the time. By analyzing and working on improving the cycle time of a particular process, the cost per transaction can be reduced along with shrinking the cycle time, which will ultimately reflect in an increase of profitability as well as increased through put which can boost the sales too. • If the Organization has adapted Quality Tools and Methods in its operations, then the data with reference to the process, output and all criteria will be available. In such cases, the job of measurement becomes very simple by using the available data for analysis. If there is no system of recording the data through the process, then process measurement should look for alternate sources of collecting, tabulating and analysing the data. It might also warrant the team to look through the transactions and build the necessary data required for analysis. Alternatively the for peocess measurement sample experiments can be conducted on the process and gather data for analysis. In many cases, historical data about the process from the early times can often provide valuable information and understanding of the efficiency trends. PROCESS PERFORMANCE DIMENSIONS

• Three process performance dimensions: time, cost and quality. A fourth dimension gets involved in the equation once we consider the issue of change. This observation leads us to identify a fourth dimension of process performance, namely flexibility. • Process performance measures (also called key performance indicators or KPIs PROCESS PERFORMANCE MEASURES. • Time • Cost • Quality • Flexibility PERFORMANCE MEASURES • Time • a very common performance measure for processes is cycle time (also called throughput time). Cycle time is the time that it takes to handle one case from start to end. Although it is usually the aim of a redesign effort to reduce cycle time, there are many different ways of further specifying this aim. • Processing time (also called service time): the time that resources (e.g. process participants or software applications invoked by the process) spend on actually handling the case. • • Waiting time: the time that a case spends in idle mode. Waiting time includes queueing time—waiting time due to the fact that no resources available to handle the case—and other waiting time, for example because synchronization must take place with another process or because input is expected from a customer or from another external actor.

PERFORMANCE MEASURES • Cost- Another common performance dimension when analyzing and redesigning a business process has a financial nature. While we refer to cost here, it would also have been possible to put the emphasis on turnover, yield, or revenue. Obviously, a yield increase may have the same effect on an organization’s profit as a decrease of cost. However, process redesign is more often associated with reducing cost.Fixed costs are overhead costs which are (nearly) not affected by the intensity of processing. Typical fixed costs follow from the use of infrastructure and the maintenance of information systems. Variable cost is positively correlated with some variable quantity, such as the level of sales, the number of purchased goods, the number of new hires, etc. A cost notion which is closely related to productivity is operational cost. Operational costs can be directly related to the outputs of a business process. A substantial part of operational cost is usually labor cost, the cost related to human resources in producing a good or delivering a service

PERFORMANCE MEASURES • Quality • The quality of a business process can be viewed from at least two different angles: from the client’s side and from the process participant’s side. This is also known as the distinction between external quality and internal quality. The external quality can be measured as the client’s satisfaction with either the product or the process. Satisfaction with the product can be expressed as the extent to which a client feels that the specifications or expectations are met by the delivered product. On the other hand, a client’s satisfaction with the process concerns the way how it is executed. A typical issue is the amount, relevance, quality, and timeliness of the information that a client receives during execution on the progress being made. On the other hand, the internal quality of a business process related to the process participants’ viewpoint. Typical internal quality concerns are: the level that a process participants feels in control of the work performed, the level of variation experienced, and whether working within the context of the business process is felt as challenging

PERFORMANCE MEASURES • Flexibility • The criterion that is least noted to measure the effect of a redesign measure is the flexibility of a business process. Flexibility can be defined in general terms as the ability to react to changes. These changes may concern various parts of the business process, for example: • The ability of resources to execute different tasks within a business process setting. • The ability of a business process as a whole to handle various cases and changing workloads. • The ability of the management in charge to change the used structure and allocation rules. • The organization’s ability to change the structure and responsiveness of the business process to wishes of the market and business partners.

CASE STUDY • A restaurant has recently lost many customers due to poor customer service. The management team has decided to address this issue first of all by focusing on the delivery of meals. The team gathered data by asking customers about how quickly they liked to receive their meals and what they considered as an acceptable wait. The data suggested that half of the customers would prefer their meals to be served in 15 minutes or less. All customers agreed that a waiting time of 30 minutes or more is unacceptable. SOLUTION OF CASE STUDY • In this scenario, it appears that the most relevant performance dimension is time, specifically serving time. One objective that distills from the scenario is to completely avoid waiting times above 30 minutes. In other words, the percentage of customers served in less than 30 minutes should be as close as possible to 100 %. Thus, “percentage of customers served in less than 30 minutes” is a relevant performance measure. Another threshold mentioned in the scenario is 15 minutes. There is a choice between aiming to have an average meal serving time below 15 minutes or again, minimizing the number of meals served above 15 minutes. In other words, there is a choice between two performance measures: “average meal delivery time” or “percentage of customers served in 15 minutes”. 9 WAYS TO MEASURE A BUSINESS PROCESS • 1. Process Effectiveness measures the process performance to specified customer requirements. • 2. Process Alignment measures the level of matchup between customer demand, process outputs, and supplier inputs. • 3. Process Reliability measures the capability of supply to meet demand requirements. • 4. Process Cycle Time measures the time required for inputs supply to outputs delivery. • 5. Product Cost measures the total cost to produce and deliver an output, including inputs, processing and resource costs. 9 WAYS TO MEASURE A BUSINESS PROCESS • 6. Process Efficiency measures the inputs and resources consumed by the process versus established standards. • 7. Resource Productivity measures the ratio of outputs produced by the process versus resources consumed by the process, including facility, equipment, people, and information technology. • 8. Supplier Effectiveness measures supplier performance to specified process requirements. • 9. Process Compliance measures the extent to which a process adheres to third-party standards, such as maturity, ISO, industry, federal, or SOX. HOW TO VALIDATE MEASUREMENT DATA • Reliability/consistency: Metric/measure values obtained by different observers of the same process model have to be consistent . For mathematically defined process model metrics, this is automatically fulfilled. But for process model quality measures measuring external process model attributes like understandability, the exact measurement conditions are important to fullfill this requirement. • Example . If one wants to measure the height of a person, the measurements should be taken at a special time of day (e.g., always in the morning) and always barefooted. Otherwise, the measure values of the same person could vary a lot. HOW TO VALIDATE MEASUREMENT DATA • Validity: Validity can be classified into construct validity and content validity. The first checks whether the metric/measure really represents the theoretical concept to be measured (e.g., is church attendance a good measure for religiousness?). The second checks whether the metric/measure covers the range of meanings included in the concept (e.g., a test of mathematical ability for elementary pupils cannot be limited to addition but should also include subtraction, multiplication, division and so forth). HOW TO VALIDATE MEASUREMENT DATA • Computability/ease of implementation/automation: A computer program can calculate the value of the process model metric infinite time and preferably quickly. The difficulty of the implementation of the method which computes the process model metric is within reasonable limits. This requirement, which was found in the process measurement literature, only applies to process model metrics (measuring internal process model attributes) which are mathematically defined and can be computed automatically. HOW TO VALIDATE MEASUREMENT DATA • The validation can be done either by using existing data (e.g., from log files) or by conducting experiments (to get new data). emphasize the advantages of experiments as the level of control and the level of replication are much higher . HOW TO VALIDATE MEASUREMENT DATA • Validation must take into account the measurement’s purpose; a measure may be valid for some uses but not for others. Consequently, the conditions during validation and the later use of the prediction system must be consistent. The following four “measurement dimensions” are generally important conditions. For special cases, additional conditions may exist. • Time • Cost • Flexibility • Quality REASON FOR MEASURING BUSINESS PERFORMANCE • To monitor and control • To drive improvement • To maximize the effectiveness of the improvement effort • To achieve alignment with organizational goals and objectives • To reward and to discipline HOW TO MANAGE MY MEASUREMENT • Identify organisational mission goal and objectives. • Identify internal and external entities / Set of inputs/information resource • Evaluate requirement of metrics • Identify metrics set if requirements are met • Access complete set of metrics against refinement criteria • Implement metrics set.

HOW TO DEFINE A TOPS-DOWN MEASUREMENT SYSTEM. • Balanced Scorecard • The Balanced Scorecard is essentially an approach to align the goals and measures that are used to evaluate the work of managers. The mainargumentbehindtheBalancedScorecardisthatitisnotsufficien ttousefinancial metrics, such as Return-On-Investment (ROI) or operating margin, when evaluating managers. An extreme focus on these measures is in the long-term detriment to the company as it neglects fundamental sources of value, namely the customer, the company’s internal structure and the company’s employees. Accordingly, the Balanced Scorecard is based on four performance dimensions HOW TO DEFINE A TOPS-DOWN MEASUREMENT SYSTEM. • Financial Measures, e.g. cash flow, to ensure survival, operating margin to ensure shareholder satisfaction. • Internal Business Measures, e.g. cycle time, to ensure efficiency and low levels of inventory in the case of manufacturing organizations. • InnovationandLearningMeasures,e.g.technologyleadership,toens urecompetitive advantage and to attract and retain talent. • Customer Measures, e.g. on-time delivery, to ensure customer satisfaction and loyalty. HOW TO DEFINE A TOPS-DOWN MEASUREMENT SYSTEM. • The classical way to implement the Balanced Scorecard follows a top- down procedure. It begins with a corporate scorecard, followed by departmental ones with an emphasis on goals and metrics directly affected by the specific department .Process related measures tend to appear only at the level of heads of units or their subordinates. This classical implementation of the Balanced Scorecard overemphasizes the functional division of organizations not paying enough attention to processes view. Companies implementing the Balanced Score card in conjunction with BPM need to carefully consider the relation between the measures in the Balanced Scorecard— both at the corporate level, departmental level and lower levels—and the performance measures associated with their business processes. HOW TO DEFINE A TOPS-DOWN MEASUREMENT SYSTEM. • One way to ensure this Alignment is to implement a Balanced Scorecard structured according to the company’s process architecture . This process-oriented Balanced Scorecard may co- exist with a Balanced Scorecard that is traditionally associated to the company’s functional architecture. In any case, we observe that the Balanced Scorecard is a useful tool for identifying process performance measures across an entire organization. DEFINING ORGANISATIONAL LEVEL MEASURES • Efficiency Indicators • Effectiveness Indicators • Capacity Indicators • Productivity Indicators • Quality Indicators • Profitability Indicators • Competitiveness Indicators • Value Indicators DEFINING ORGANISATIONAL LEVEL MEASURES • Effectiveness is the relationship between the expected results and the obtained results: the best way to do that is = achieve the expected results Efficiency is the relationship between the results achieved, and the resources used = making things the best way using the least amount of resources. We can say that efficiency is to be effective using a minimum of resources. Focusing on the process and resources applied to, for example, reduce costs. Effectiveness already focuses on the product and the obtained results and can bring benefits, through higher profits. • Capacity Indicators: The ratio between the amount that can be produced and the time for this to occur. For example, the automaker X is capable of producing 200 cars per month.

• DEFINING ORGANISATIONAL LEVEL MEASURES

• Productivity Indicators: The ratio between the outputs generated by a job and the resources used to do it. Example: A worker can install 20 m2 of flooring in an hour. Another can install only 17 m2 of flooring in an hour. Therefore, he is less productive than the first.

• Quality Indicators: The relationship between total output (total produced) and the outputs suitable and appropriate for use, i.e., without faults or deformities. Example: 980 pieces suitable for every 1,000 produced (98% compliance).

• Profitability Indicators: The percentage relationship between profit and total sales. Example: a company that sold US$200,000.00 of goods and calculated a US$20,000.00 profit. So profitability is 10%.

• Return on Investment (ROI) Indicators: The percentage relationship between the profit and the investment made in the company. Example: the same company from the previous example invested US$500,000.00, with a US$20,000.00 profit. The yield was 4%.

• Competitiveness Indicators: A company’s relationship with the competition. Market share can be used for this.

• Effectiveness Indicators: Effectiveness is the combination of efficacy with efficiency.

• Value Indicator: The relationship between the perceived value when you get something (a product, for example) and the amount spent to obtain it. CHARACTERISTICS OF METRICS DEFINING ORGANIZATIONAL, PROCESS AND ACTIVITY LEVEL MEASURES. • Metrics should measure the right things, which are outputs and results, not activities. • • Metrics should measure the relevant variables, or dimensions, of a given output or result. The variables may be the usual ones of time, cost, and quality, or they may be special and unique to a given output, but, in any case, you need to know what those variables are. • • It is often necessary to have multiple metrics correlated to multiple variables (whatever is important to the customer and the business) • • Whatever is measured at the process, subprocess, or task level should be traceable upward to business and customer requirements. There should be a clear line of sight from process to total business variables. • • Metrics should track trends, not single snapshot data. Overreaction and under-reaction are both less likely when using trend data. • • Metrics should be assigned at each management level so it is clear who is responsible for tracking, reporting, diagnosing, acting, following up. (We often see cascading measurement systems that skip whole levels of management or have gaps from, say, the business to the job level.) • • At least some metrics should be leading indicators of future performance problems. These are singled out for special attention. MEASUREMENT TECHNIQUES, TOOLS, DIFFERENT METHODS OF PROCESS

• Business performance measurement (BPM) refers to the management and analytical process employed by the management of an organization to assess the performance of the organization to achieve the goals pre- defined by the management of the organization. Business performance management is also known as corporate performance management or enterprise performance management. Managing Business performance is not a one-time activity and is a regular job to assess the performance and make sure that the company is working towards achieving the goal. BPM has three major activities- goal selection, measurement information consolidation and managers intervention to improve future goals. The three activities present here are sequential but they run simultaneously in line with the organization objectives. MEASUREMENT TECHNIQUES, TOOLS, DIFFERENT METHODS OF PROCESS

• There are several tools available with the managers and they need to select the right tools keeping in mind the objectives or goals of the organization. Some of the tools that can be used for the same are Balanced Scorecard, Benchmarking, Enterprise risk management, Six Sigma etc. BENCHMARKING • Benchmarking is a process of measuring the performance of a company’s products, services, or processes against those of another business considered to be the best in the industry, aka “best in class.” The point of benchmarking is to identify internal opportunities for improvement. By studying companies with superior performance, breaking down what makes such superior performance possible, and then comparing those processes to how your business operates, you can implement changes that will yield significant improvements. That might mean tweaking a product’s features to more closely match a competitor’s offering, or changing the scope of services you offer, or installing a new customer relationship management (CRM) system to enable more personalized communications with customers. BENCHMARKING-STEP-BY-STEP • Choose a product, service, or internal department to benchmark • Determine which best-in-class companies you should benchmark against – which organizations you’ll compare your business to • Gather information on their internal performance, or metrics • Compare the data from both organizations to identify gaps in your company’s performance • Adopt the processes and policies in place within the best-in-class performers KEY BENEFITS • In addition to helping companies become more efficient and profitable, benchmarking has other benefits, too, such as: – Improving employee understanding of cost structures and internal processes – Encouraging team-building and cooperation in the interests of becoming more competitive – Enhancing familiarity with key performance metrics and opportunities for improvement company-wide ENTERPRISE RISK MANAGEMENT (ERM) • Enterprise risk management (ERM) is the process of planning, organizing, leading, and controlling the activities of an organization in order to minimize the effects of risk on an organization's capital and earnings. Enterprise risk management includes financial, strategic and operational risks, in addition to risks associated with accidental losses. • In recent years, external factors have fueled a heightened interest by organizations in ERM. Industry and government regulatory bodies, as well as investors, have begun to scrutinize companies' risk- management policies and procedures and in an increasing number of industries, boards of directors are required to review and report on the adequacy of risk-management processes in the organizations they administer. ENTERPRISE RISK MANAGEMENT (ERM) • Organizations can benefit by shifting the corporate culture from one that focuses on meeting IT compliance obligations to one that targets overall risk reduction. Visibility into the overall security of the organization plays an important role in establishing this new dialogue. ENTERPRISE RISK MANAGEMENT (ERM) • Reducing enterprise risk and developing a common risk management language requires an organization to: • Define scope - identify and prioritize critical business processes and their related risks. • Map risk - determine which threats could jeopardize business objectives or critical strategy, share that information and set controls to offset these risks. • Develop an action plan - create a risk treatment plan to identify unacceptable risks and resolve risk gaps. • Automate - use AI technologies to automate inefficient and ineffective manual processes. • Monitor and measure - establish metrics to identify key control deficiencies. Evaluate how the enterprise risk management program is progressing, how it varies from policy and the number of risk incidents. SIX SIGMA • Six Sigma is a method that provides organizations tools to improve the capability of their business processes. This increase in performance and decrease in process variation helps lead to defect reduction and improvement in profits, employee morale, and quality of products or services. • "Six Sigma quality" is a term generally used to indicate a process is well controlled (within process limits ±3s from the center line in a control chart, and requirements/tolerance limits ±6s from the center line). SIX SIGMA • Set of tools: The Six Sigma expert uses qualitative and quantitative techniques or tools to drive process improvement. Such tools include statistical process control (SPC), control charts, failure mode and effects analysis (FMEA), and process mapping. Six Sigma professionals do not totally agree as to exactly which tools constitute the set. • Methodology: This view of Six Sigma recognizes the underlying and rigorous DMAIC approach. DMAIC defines the steps a Six Sigma practitioner is expected to follow, starting with identifying the problem and ending with the implementation of long-lasting solutions. While DMAIC is not the only Six Sigma methodology in use, it is certainly the most widely adopted and recognized. • Metrics: In simple terms, Six Sigma quality performance means 3.4 defects per million opportunities (accounting for a 1.5-sigma shift in the mean). CASE STUDY – SIX SIGMA

• The Beginning of Six Sigma

• A look back in history indicates that the implementation of Six Sigma principles was pioneered by Motorola Company in 1980s. Motorola has always been a high tech company, offering highly reliable products. However, by 1870, every business in which Motorola was engaged in, was already targeted by Japanese.

• During that time, Motorola, like many other American companies, was struggling to keep up with Japanese competition. Motorola’s customers were unhappy with the product defects and customer support. On the other hand, Japanese had already built an amazing quality standard that many American companies simply could not keep up with. As a result, dealing with severe financial pressure, Motorola had to take action.

• The top management summoned the Motorola engineers and sought to reduce the amount of errors in their products before they were even shipped out of their factories. They combined all the quality management practices known till that time and created a methodology that would be the baseline of Motorola’s quality improvement program. Bill Smith, an engineer and scientist at Motorola, developed a methodology that would reduce the amount of product defects. He created the original statistics and formulas initiated the implementation of Six Sigma methodology. Convinced in the huge success that this methodology would have, he presented the ideas to CEO Bob Galvin. Bob came to recognize this approach as the solution to their quality concerns. They followed the four phase Six Sigma methodology (measure, analyze, improve and control) and started their journey of documenting their key processes, aligning those processes to customer requirements, and installing measurement systems to continually monitor and improve these processes.

• As a result, Motorola’s performance improved instantly. However, even though they were doing well, the analysis revealed that Japanese were still way ahead of them. CASE STUDY – SIX SIGMA

• Thus, to remain competitive, top management vowed to make improvements in their quality by tenfold over a five-year period. Initially, this seemed to be impossible, but by the end of 1985, everyone in Motorola had started working toward that goal.

• By the end of the five year period, every business in Motorola had reached their targeted scale of improvement. Motorola managers decided to fly to Japan to better evaluate how their competition was doing, and what they found out was mind- blowing. They saw that the Japanese companies were doing 2000 times better than them. This was due to the fact that Japanese had been using similar technologies for a longer period of time.

• The information unveiled in Japan changed the objectives of Motorola again. The executives became even more ambitious, and decided to set a tenfold target one more time, but deadline was set for a two year period now. Motorola goal for 1992 was to have 3.4 defects per million opportunities.

• After implementing Sig Sigma, Motorola realized how important the methodology had been in improving their processes. In fact, they have documented more than $16 billion in saving as a result of Six Sigma adoption. Therefore, they decided to make the methodology public for every company that wanted to adopt it in their processes. Since then, tens of thousands of companies around the world have been considering Six Sigma as a way of doing business.

• Bearing in mind the previous points, it can be concluded that Motorola implementation of Six Sigma has been a stepping stone in the modern times of quality improvement. We may wonder where will the Six Sigma journey lead us to. This path, however, will certainly be challenging while we seek perfection. But the highly satisfied customers, motivated employees, increased benefits, among many other reasons, lead to believe that the employment of Six Sigma as the best business support will never cease to exist. ANALYZE THE CASE

• Case is about sig sigma • Company involved is Motorola • Problem –1. Reduce the defects in the product 2. Keep competition with Japanese companies . • Solution Six Sigma –Methodology – Objective reduce error , Quality Improvement DMAIC-(Define , Measure , Analyses, Improve , Control), 4 Phase • Phases -2 times , 2nd 3.5 defects in million • Years – 5 Years ORGANIZATIONAL PERFORMANCE MEASUREMENT MODELS • Organizational performance measurement models typically intend to provide a holistic view of an organization’s performance by considering different performance perspectives. As mentioned earlier, the BSC provides four perspectives for which objectives and performance indicators ensure alignment between strategies and operations (Fig. 1) (Kaplan and Norton 1996, 2001). Other organizational performance measurement models provide similar perspectives. For instance, Cross and Lynch (1988) offer a four-level performance pyramid: (1) a top level with a vision, (2) a second level with objectives per business unit in market and financial terms, (3) a third level with objectives per business operating system in terms of customer satisfaction, flexibility and productivity, and (4) a bottom level with operational objectives for quality, delivery, process time and costs. Another alternative view on organizational performance measurement is given in business excellence models, which focus on an evaluation through self-assessment rather than on strategic alignment, albeit by also offering performance perspectives. WHAT IS THE EFQM MODEL • The EFQM Model is a globally-recognised management framework which allows organisations to achieve success by measuring where they are on the path towards transformation, helping them understand the gaps and possible solutions available, and empowering them to progress and significantly improve their organisation’s performance. WHAT ARE THE BENEFITS OF USING THE MODEL?

• Since its inception, the EFQM Model has provided a blueprint for organisations across and beyond Europe to develop a culture of performance and innovation. • The new EFQM Model allows organisations to embrace change, drive performance and evolve for the future. Here are just some of the Model benefits: • It helps define your purpose: • Purpose is the lifeblood of any organisation. Without it, there is no reason to serve. The new EFQM Model places an unparalleled emphasis on the importance of purpose, vision and agile strategies to organisations if they are to create sustainable value. WHAT ARE THE BENEFITS OF USING THE MODEL?

• It helps create your culture: • The new EFQM Model is an innovative culture creator, valuing core quality beliefs and shared goals at the heart of organisations whilst allowing them to remain connected and committed to their vision. • It helps forge strong leaders: • Effective leadership keeps an organisation true to its purpose and vision, which is why the new EFQM Model advocates a ‘leaders at every level’ approach to ensure strong decision-making, collaboration and teamwork in every team and every project. WHAT ARE THE BENEFITS OF USING THE MODEL?

• It helps transform your organisation: • Transformation takes time and the EFQM Model supplies a tried and tested framework to make the process of landing effective change as smooth and pain-free as possible. • It helps foster agile practices: • To be agile amid emerging threats is the marker of an effective organisation. The new EFQM Model provides organisational analysis and insight to lead a safe path to progress and transformation. WHAT ARE THE BENEFITS OF USING THE MODEL?

• It helps address unique organisational challenges: • EFQM understands that all organisations are different and there is no one size fits all approach to transformation. That’s why the new EFQM Model was built from the ground up to be both adaptive to unique organisational obstacles and flexible enough to deliver on its promise of performance gains. • It helps forecast the future: • The new EFQM Model has been designed from years of experience in changing markets to understand the benefits of organisational analysis, future forecasting and predictive intelligence in driving true transformation. Business Process Technologies Module 5 Syllabus

 The capabilities of modelling tools and support for different notations. The capabilities of a standalone process modelling tool versus an enterprise modelling tool. The capabilities and use of process simulation. The concepts, design and capabilities of BPMN. Best practices for modelling with BPMN. The concepts, design and functional capabilities of a BPMS. Creating analytical and executable models. Business Process modelling tools and notations

 Business Process Model and Notation (BPMN) is a graphical representation for specifying business processes(sub Processes) in a business process model.  Business Process Management Initiative (BPMI) developed BPMN, which has been maintained by the Object Management Group since the two organizations merged in 2005. Version 2.0 of BPMN was released in January 2011, at which point the name was adapted to Business Process Model and Notation as execution semantics were also introduced alongside the notational and diagramming elements. The capabilities of modeling tools and support for different notations

 1. Gliffy is a web-based tool for creating diagrams online;  Capabilities - No downloads are necessary. It supports UML so whether it's a flowchart or use case diagram you want to draw, Gliffy will deliver. It can also be used to draw interface mockups and organizational charts.  2. Lucidchart is another web-based tool  Capabilities- for creating flowcharts, business process models, organizational charts, mock-ups and lots more. It's a collaborative software that integrates with Google docs. The capabilities of modelling tools and support for different notations

 Business Process Model and Notation (BPMN) is a standard for business process modelling that provides a graphical notation for specifying business processes in a Business Process Diagram (BPD),[2] based on a flowcharting technique very similar to activity diagrams from Unified Modeling Language (UML).[3] The objective of BPMN is to support business process management, for both technical users and business users, by providing a notation that is intuitive to business users, yet able to represent complex process semantics(explanations ). The BPMN specification also provides a mapping between the graphics of the notation and the underlying constructs of execution languages, particularly Business Process Execution Language (BPEL).[4] The capabilities of modelling tools and support for different notations

 The primary goal of BPMN is to provide a standard notation readily understandable by all business stakeholders. These include the business analysts who create and refine the processes, the technical developers responsible for implementing them, and the business managers who monitor and manage them. Consequently, BPMN serves as a common language, bridging the communication gap that frequently occurs between business process design and implementation.  Currently there are several competing standards for business process modeling languages used by modeling tools and processes. Widespread adoption of a single standard would help unify the expression of basic business process concepts (e.g., public and private processes, choreographies), as well as advanced process concepts (e.g., exception handling, transaction compensation).  Since 2014, BPMN has been complemented by a new standard for building decision models, the Decision Model and Notation standard. The capabilities of modelling tools and support for different notations

 3. Open ModelSphere is an open-source tool for modelling data, processes and producing UML diagrams.  Capabilities- It allows the analyst decompose a process into its sub-processes and offers the functionality to drill down to the required level of detail. It is platform-independent and supports the generation of SQL scripts for integration with other databases. It also supports the creation of Entity-Relationship Diagrams, Activity Diagrams and Class Diagrams. It is useful in software development from the analysis stage through process modelling, database modelling and code reverse engineering. The capabilities of modelling tools and support for different notations

 4. ARIS Express is a popular modelling tool that supports the modelling of processes using the BPMN 2.0 and Event-driven Process Chains (EPC) notations. It is Java-based and can run on multiple platforms but has only been officially released for Windows.  Capabilities - used for modelling data, processes and building organizational charts. All documents can be exported in different file formats. The user interface is intuitive, which is perfect for modelling newbies. The ARIS community provides training materials to get you started.  5. Modelio Free Edition is a platform-independent process modelling tool that supports the creation of BPMN and UML Diagrams.  Capabilities -can generate documents in word and models can be exported with ease to another platform. It also supports traceability management. The capabilities of modelling tools and support for different notations

 6. ProcessMaker Open Source is more than a modelling tool. It is a BPM solution for managing workflows and is designed for small and medium- sized businesses.  Capabilities- It is web-based and has an intuitive user interface.  7. Questetra BPM Suite Capabilities -has workflow capabilities that can be used to define, operate and monitor business processes. It is browser-based and is fully compatible with BPMN. The capabilities of modelling tools and support for different notations

 8. BizAgi Process Modeler is a desktop application .  Capabilities- can be used to create business process diagrams and flow charts. It supports BPMN 2.0 notation. It is easy to use, comes in different languages, supports simulation and allows you to publish documentation in a variety of formats. Bizagi Process Modeler is free and allows users collaborate in real-time. It is not web-based but users can collaborate on process diagrams via Dropbox or shared network folders. The platform also comes with the added functionality to chat during collaboration. When changes are to be made by one person, he or she can “lock” the diagram under review and “release” it when the change is complete. Users may however choose to work offline and upload the diagram when it is ready. The capabilities of modelling tools and support for different notations

 9. ArgoUML is an open source tool that is platform-independent .  Capabilities - can be used to create class diagrams, state chart diagrams, activity diagrams, use case diagrams, collaboration diagrams and sequence diagrams.  10. Visual Paradigm for UML 11.0 Community Edition is another free UML drawing tool  Capability-Export and import capabilities that can help you create professional diagrams. It supports ERD and Systems Modelling Language (SysML). In addition to the supported diagrams, it offers the Requirement diagram for documenting users' needs; requirements can be linked to one another using this diagram. The capabilities of modelling tools and support for different notations

 11. Adonis is considered a benchmark tool in the field of business process analysis (which includes modelling, management and analytics). It offers multiple uses for analysts, supports the BPMN 2.0 standard  Capabilities - helps in executing complex and elaborate business process analytical functions. It is targeted at new users who would like to document business processes, as well as BPM experts who want more sophisticated options like process simulation, monitoring, optimization and risk support. You can work with hundreds of models and easily see the relationships between them. These models can be published as documents or printed as-is. The community edition can be downloaded free of charge. It is user- friendly and comes with a knowledge toolkit on modelling, simulation, analysis and documentation. The capabilities of modelling tools and support for different notations

 12. Intalio Capabilities-provides a roadmap for complete process orchestration. The software is open-source with the community edition available for free.  13. Tibco Business Suite can be downloaded for free as a stand-alone application.  Capability- It is used for modelling business processes, user interfaces, data and organizational structures.  14. Oryx is another web browser-based modelling tool that business process analysts will find handy.  Capability- With this tool, stakeholders can access business process models via the web. Oryx directly supports a variety of languages like BPMN and EPC. The capabilities of modelling tools and support for different notations

 15. Creately capabilities- has all the features needed in an online, collaborative business process modelling platform. It has loads of templates so you never have to start from scratch. In addition to process models, you will also have access to other types of diagrams - UML diagrams, mockups/wireframes, etc. Important question

 Discuss the capabilities of modelling tools and support for different notations  Ans – Capabilities of modelling Tools and support for different notations-  Web based modelling tools are available for creating diagrams online without downloading. It Support UML, Flow chart, Organisational chart, and interface and mock ups .Eg- Gliffy, Lucid chart  Open source modelling tools are available for data modelling , processes and producing UML helps analyst to decompose process into sub process. It supports creation of relation diagram, activity diagram and class diagram . Eg- Open model sphere  Some modelling tools support document to be exported to different file format . Support event driven process chain . Eg-ARIS  Some platform independent modelling tools are available can create documents in words that supports creation of BPMN and UML diagram . Eg- Modelio  Some modelling tools support BPM for managing work flow . Eg- Process maker open source.  Some modelling tools has work flow capabilities that can be used to define operate and monitor BP.  Some modelling tools helps in creating business process diagrams. Allows simulation and publish documents in variety of format. Eg- BizAgi.  Some Modeling tools helps in creating class diagram , state , chart diagram.  Some modelling tools helps in benchmarking business process  Some modelling tools support stake holders access business process model. Capabilities of business process simulation

 Simulation modelling allows the analysis and development of optimal business processes with minimal disruption.  Using simulation models, you are free to test ideas and their combinations against different scenarios, with the virtual environment avoiding the expense of workplace interruptions Capabilities and uses of business process Stimulation

 Uses –  It is used to assess the dynamic behaviour of processes over time, i.e. the development of process and resource performance in reaction to changes or fluctuations of certain environment or system parameters.  The results provide insights supporting decisions in process design or resource provision with the goal to improve factors such as process performance, process and product quality, customer satisfaction or resource utilization. Capabilities and uses of business process Stimulation

 Business process simulation plays an important role in the continuous improvement approach to business process management (BPM).  By running business process simulations, companies can predict how business processes perform under specific conditions.  Simulations can also be used to test process design, measure performance, identify bottlenecks and test changes.  process simulation can identify the most effective process flow and help prevent problems from cropping up during process execution. Standalone tools  BPMN Miner 2.0  (by R. Conforti, A. Augusto, M. Dumas, L. Garcia-Baneulos and M. La Rosa) BPMN Miner is a tool for the automated discovery of maximally-structured, hierarchical BPMN models containing sub processes, interrupting and non- interrupting boundary events and activity markers. The tool works on top of a range of flat process discovery algorithms: Heuristics Miner, Inductive Miner, Fodina, ILP Miner and the Alpha algorithm. It employs functional and inclusion dependency discovery techniques in order to elicit a process- subprocess hierarchy from the event log. It requires as input a log in the XES or MXML format, and produces a standard BPMN 2.0 model (.bpmn) as output. The tool will identify inclusion dependencies from the log, and ask the user to validate these dependencies before proceeding with the mining of the BPMN model. The identification of the inclusion dependencies in noise-tolerant. Moreover, the tool integrates Structured Miner, meaning that it returns a maximally structured BPMN 2.0 model by combining BPStruct and Extended Oulsnam Structurer (both used with default settings  Business Process Clone Detector  (by R. Uba, M. La Rosa, L. Garcia-Banuelos and M. Dumas) Business Process Clone Detector is a command-line tool for detecting duplicate fragments (a.k.a. clones) in repositories of process models. The tool works with a collection of EPC models as input (at least two models) and returns a DOT image for each identified clone. These images can be opened with ProM 5.2 (www.processmining.org). It is possible to choose the minimum size of a clone, which is 4 nodes by default.  Source code (provided “as is”, under LPGL v3.0)  Infrequent Process Behavior Filter  (by R. Conforti, M. La Rosa and A.H.M. ter Hofstede) The analysis of business process event logs can be negatively influenced by the presence of outliers, which reflect infrequent behavior or “noise”. In process discovery, where the objective is to automatically extract a process model from an event log, this may result in rarely travelled pathways that clutter the process model. The Infrequent Process Behavior Filter automatically filters out infrequent behavior while minimizing the number of events being removed from the log. The tool accepts as input an event log in XES or MXML format and provides a filtered log in output. This tool has been integrated into Apromore as part of the BPMN Miner plugin, where users can choose whether to filter the input log before process discovery.  Nirdizati  (by A. Rozumnyi, I. Verenich, M. La Rosa, M. Dumas, F. Maggi, I. Teinemaa) Nirdizati is a dashboard-based monitoring tool which is updated periodically based on incoming streams of events. However, unlike classical monitoring dashboards, Nirdizati does not focus on showing the current state of business process executions, but their future state (e.g. when will each case finish). On the backend, Nirdizati uses predictive models trained using machine learning methods, including deep learning. Currently, Nirdizati is processing two predefined event streams corresponding to the Business Process Intelligence Challenges (BPIC 2012 and BPIC 2017). Both logs originate from a financial institute and pertain to a loan application process. For the 2012 BPIC, we are using a classification model to predict whether the case duration will be within a certain threshold and a regression model to predict the remaining cycle time of an ongoing case. In addition, for the 2017 BPIC, we predict whether a customer will accept a loan offer via a classification model. All the predictions are updated automatically as new events arrive.  OptimizeKnockout  (by I. Verenich, M. Dumas, M. La Rosa, F.M. Maggi and C. Di Francescomarino) Optimize Knockout is a tool for finding an optimal ordering of check activities in a so-called “knockout section” of a business process in order to minimize over processing. Over processing waste occurs in a business process when effort is spent in a way that does not add value to the customer nor to the business. A recurrent over processing pattern in business processes happens in the context of “knockout checks”, i.e. activities that classify a case into “accepted” or “rejected”, such that if the case is accepted it proceeds forward, while if rejected, it is cancelled and all work performed in the case is considered unnecessary. Thus, when a knockout check rejects a case, the effort spent in other (previous) checks becomes over processing waste, according to the Lean classification. This tool implements a fine-grained approach to reorder knockout checks at runtime based on predictive machine learning models.  PNSA Algorithm  (by M. Gambini, M. La Rosa, S. Migliorini and A. ter Hofstede) PNSA Algorithm is a command-line tool for automatically fixing unsound Workflow nets. The core procedure is a heuristic optimization algorithm inspired by the dominance-based Multi-Objective Simulated Annealing procedure. Given an Workflow nets and the output of its soundness check, at each run, the algorithm generates a small set of alternative models (“solutions”) similar to the original model but containing fewer or no behavioral errors, until a maximum number of desired solutions is found or a given timeframe elapses. These solutions are produced by applying a number of controlled changes on the current solution, which in turn is derived from the original model. The similarity of a solution to the original model is determined by its structural similarity and (to remain efficient) by an approximation of its behavioral similarity to the original model. Since the intentions of the process modeler are not known and there are usually many ways in which an error can be corrected, the algorithm returns several non-redundant final solutions (i.e. no solution is worse than any of the others). The differences between these solutions and the original model can then be presented to a process modeler as suggestions to rectify the behavioral errors in the original model.  Predictive Business Process Monitoring with LSTM  (by N. Tax, I. Verenich, M. La Rosa and M. Dumas) This tool can be used to perform the following prediction tasks: i) prediction of the next type of activity to be executed in a running process instance; ii) prediction of the timestamp of the next type of activity to be executed; iii) prediction of the continuation of a running instance, i.e. its suffix; and iv) prediction of the remaining cycle time of an instance. The tool trains a Long Short Term Memory (LSTM)-based predictive model using data about historical process instances. Next, the models are evaluated on running, i.e. incomplete instances. It assumes the input is a complete log of all traces in the CSV format wherein the first column is a case ID, then activity name or ID and finally the activity timestamp. Then, this input log is temporally split on 66% (training set) vs 34% (test set), and on the test set the tool evaluates prediction performance for every size of a partial trace, e.g a test trace cut at the 2nd event, the same trace cut at the 3rd event and so on, along all four prediction tasks.  Process Merger  (by M. La Rosa, M. Dumas, R. Uba and R. Dijkman) Process Merger is a command-line tool for merging (C-)EPC process models into a C-EPC process model. This tool accepts two or more models in the EPML format (.epml) and merges them by creating a configurable process model in C-EPC. Nodes that belong to all input models are only taken once, and reconnected to all other nodes that are not in common by means of configurable XOR connectors. It is possible to select the matching algorithm (Greedy or Hungarian) used to determine the mapping between the nodes of the two input models, and to customize the matching thresholds for functions/events and for connectors. To compute the similarity between each pair of input models, the Process Merger tool embeds the Process Similarity tool, which is also available for download separately. Moreover, this tool can compute the digest of a merged model. The digest is a projection of a configurable model where only the nodes that satisfy a given occurrence frequency appear, e.g. all nodes that occur in at least three of the five input models, or all nodes that are in common to all input models. Placeholder nodes may be added to avoid disconnections in the resulting digest. Process Merger has been integrated as a plugin into Apromore.  Process Similarity  (by M. La Rosa, M. Dumas, R. Uba and R. Dijkman) Process Similarity is a command-line tool which computes the similarity between two (C-)EPC models based on graph-matching techniques. It is possible to choose the matching algorithm (Hungarian or Greedy) and configure the thresholds for model similarity, label similarity and connector similarity, and the weights for skipped nodes/edges and matched nodes/edges. The result is a value between 0 and 1 indicating the degree of similarity between the two input models. Process Similarity has been integrated as a plugin into Apromore.  ProConformance 1.0 (event structures-based)  (by L. Garcia-Banuelos, N. van Beest, M. Dumas and M. La Rosa) Given a process model and a process execution log, ProConformance 1.0 provides a list of statements in natural language capturing behavior that is present or frequent in the model, while absent or infrequent in the log, and vice versa. This conformance analysis method allows users to diagnose differences between prescriptive process behavior (as captured in the process model) and deviant executions of a process as captured in the log, e.g. for compliance purposes. or between two versions or variants of a process. The model can be provided in BPMN and the log in the MXML or XES format. ProConformance 1.0 has also been integrated into Apromore as part of the Compare plugin.  ProConformance 2.0 (automata-based)  (by D. Reissner, R. Conforti, M. Dumas, M. La Rosa and A. Armas-Cervantes) ProConformance 2.0 provides a list of statements in natural language capturing behavior that is present or frequent in the log but not in the model. Moreover, it returns all optimal and one-optimal trace alignments between the log and the model. The difference with ProConformance 1.0 is that the internal structures are based on automata (a Deterministic Acyclic Finate State Automaton – DAFSA is built from the log and a Reachability Graph is built from the process model) instead of event structures. Similar to ProConformance 1.0, the model can be provided in BPMN and the log in the MXML or XES format.  ProDelta  (by N. van Beest, M. Dumas, L. Garcia-Baneulos and M. La Rosa) Given two process execution logs, ProDelta provides a list of statements in natural language capturing behavior that is present or frequent in one log, while absent or infrequent in the other. This log delta analysis method allows users to diagnose differences between normal and deviant executions of a process or between two versions or variants of a process. The logs can be provided in the MXML or XES format. ProDelta has been integrated into Apromore as part of the Compare plugin.  ProDrift 2.4  (by A. Maaradji, A. Ostovar, M. Dumas, M. La Rosa) ProDrift is a fully-automated tool for detecting and characterizing business process drifts. The tool accepts as input a process execution log in MXML or XES format, and performs statistical tests over a stream of runs or a stream of events, obtained by replaying the event log. ProDrift accepts an optional window size (specified as number of traces or events), as well as the possibility of using an adaptive window. If the latter option is chosen, ProDrift will adapt the window size in order to strike a trade-off between classification accuracy and drift detection delay. The output is a list of drifts, each with information on the location in the stream of traces (or events) where the drift occurred, and a list of behavioral relations that have been modified by the drift. ProDrift has also been integrated as a plugin into Apromore.  ProLoCon  (by A. Armas Cervantes, M. Dumas and M. La Rosa) ProLoCon is a command line tool for the computation of local concurrency oracles out of event logs. Given an event log, the tool constructs a state space representing the behaviou captured in the log and identifies parts within such state space, referred to as scopes, where concurrency relations between pairs of events hold. The state space abstracts the behavior in the log as an acyclic transition graph, where every vertex in the graph denotes an execution state and every transition denotes an event occurrence. Then, a scope is a pair of vertices (execution states) where pairs of events can occur concurrently. The current version of the tool uses the Alpha algorithm for the computation of the concurrency relations between events. The input required for the tool is simply an event log in either XES or MXML format.  ProSeqPredict  (by I. Verenich, D. Chasovskyi, M. Dumas, M. La Rosa, F. Maggi and A. Rozumnyi) ProSeqPredict is a tool to predict the most likely sequence of activities (trace suffix) that will be executed from a partial process instance (trace prefix), based on the information already available on the prefix as well as on the availability of past traces already executed, which are recorded in an event log. It requires as input an event log in CSV format and the length of the prefix to be used. The tool will predict the most likely suffix for each prefix of that length present in the log.  ProVariant  (by N. van Beest, H. Groefsema, L. Garcia-Banuelos and M. Aiello) ProVariant allows the automated generation of declarative specifications from a set of business process variants. It takes as input a set of process models in PNML format and return as output a set of CTL specifications stored in an XML file.  Slice Mine Dice (SMD) Process Miner  (by C.C. Ekanayake, M. Dumas, L. Garcia-Baneulos and M. La Rosa) SMD is a tool for mining a collection of process models from a process log. This tool uses a combination of trace clustering and clone detection techniques to mine a process model collection where similar process sections are extracted as subprocesses. The tool requires as input a log, an existing trace clustering technique (different ones can be chosen) and a complexity threshold. The result is a hierarchical process model collection where the size of each process model is bounded by the threshold. As this tool can detect and extract common sections from discovered process models, the resulting process model collection has a smaller overall size and less number of process models compared to a collection of process models obtained with a trace clustering technique under the same complexity bound. Furthermore, identification and extraction of similar sections could facilitate better analysis of the generated process model collection.  Split Miner  (by A. Augusto, R. Conforti, M. Dumas and M. La Rosa) Split Miner is a tool for fast mining of simple, accurate and deadlock-free BPMN process models from an event log. The approach works in five steps. The first step discovers the directly-follows graph and identifies loops in the process behavior captured in the input event log. The second step detects parallelism between process activities. The third step filters the graph by removing infrequent behavior. The fourth step detects the split gateways while the last step discovers the join gateways. The event log can be in MXML, XES.GZ or XES format. The output model, in BPMN 2.0, can be opened and visualized using different tools, such as Apromore.  Staged Process Flow Performance Analyzer  (by H. Nguyen, A.H.M. ter Hofstede, M. Dumas, M. La Rosa, F.M Maggi) Existing process mining techniques provide summary views of the overall process performance over a period of time, allowing analysts to identify bottlenecks and associated performance issues. However, these tools are not designed to help analysts understand how bottlenecks form and dissolve over time nor how the formation and dissolution of bottlenecks – and associated fluctuations in demand and capacity – affect the overall process performance. Staged Process Flow (SPF) is a ProM plugin offering a number of visualizations that collectively allow process performance evolution to be analyzed from multiple perspectives. The idea underlying this tool is an abstraction of a business process as a series of queues corresponding to stages. SPF has also been integrated as a plugin into Apromore.  Staged Process Miner  (by H. Nguyen, A.H.M. ter Hofstede, M. Dumas, M. La Rosa, F.M Maggi) Staged Process Miner (SPM) is a ProM plugin that takes as input an event log in XES or MXML format and returns a partitioning of this log into stages. The only parameter required is the minimum number of events for each stage. You can download the Staged Process Miner plugin directly from the ProM nightly build. Here we provide a standalone ProM distribution that includes the Staged Process Miner plugin, as well as the plugins implementing the two baseline techniques used in our paper for the evaluation, namely the Divide and Conquerframework (DC) and the Performance Analysis with Simple Precedence Diagram (SPD), which have been modified to export their output to file, and a plugin to visualize the output of these latter two techniques. SPD has also been integrated as a plugin into Apromore.  Structured Miner 1.1  (by A. Augusto, R. Conforti, M. Dumas, M. La Rosa, G. Bruno) Structured Miner is a tool for mining maximally structured process models in BPMN from an event log. The approach works in two phases. The first phase discovers the BPMN process model from an input log using a baseline discovery algorithm which does not force the discovered model to be structured (currently, Heuristics Miner and Fodina Miner are supported). The second phase structures the discovered model combining BPStruct and Extended Oulsnam Structurer (both used with default settings). The event log can be in MXML or XES format. The discovered model, in BPMN 2.0, can be opened and visualized using different tools, e.g. Apromore. Structured Miner is also part of BPMN Miner 2.0. The difference between the two is that Structured Miner always discovers flat process models whereas BPMN Miner 2.0 discovers hierarchical process models with subprocesses. Structured Miner has also been integrated into Apromore as part of the BPMN Miner plugin. Important question

 Discuss the Capability of standalone process modelling tools .  The following are the capabilities of standalone tools  Helps in automated discovery of maximally-structured process and containing sub processes, interrupting and non-interrupting boundary events and activity markers. Process discovery is done with the help of event log.(BPMN miner 2.0)  Some standalone tools helps in detecting duplicate fragments in repositories of process models.  Standalone command-line tool helps in detecting duplicate fragments in repository process(Business Process Clone Detector)  Infrequent Process Behavior Filter (is a standalone tool) which automatically filters out infrequent behaviour while minimizing the number of events removed from the log.  Standalone tool (Nirdizati) is a dashboard-based monitoring tool which is updated periodically based on incoming streams of events. It focuses on future state.  Standalone tool (optimize Knockout)is capable for finding an optimal ordering of check activities in knockout section of a business process in order to minimize over processing.  Stand alone tool (PNSA Algorithm) is capable for automatically fixing unsound Workflow nets.  Standalone tool are capable of following prediction tasks: i) prediction of the next type of activity to be executed in a running process instance; ii) prediction of the timestamp of the next type of activity to be executed; iii) prediction of the continuation of a running instance and iv) prediction of the remaining cycle time of an instance. Enterprise Modelling

 Enterprise modelling is the process of building models of whole or part of an enterprise with process models, data models, resource models and or new ontologies etc. It is based on knowledge about the enterprise, previous models and/or reference models as well as domain ontologies using model representation languages.[3] An enterprise in general is a unit of economic organization or activity. These activities are required to develop and deliver products and/or services to a customer. An enterprise includes a number of functions and operations such as purchasing, manufacturing, marketing, finance, engineering, and research and development. The enterprise of interest are those corporate functions and operations necessary to manufacture current and potential future variants of a product.[4] Enterprise Model

 An enterprise model is a representation of the structure, activities, processes, information, resources, people, behavior, goals, and constraints of a business, government, or other enterprises.[12] Thomas Naylor (1970) defined a (simulation) model as "an attempt to describe the interrelationships among a corporation's financial, marketing, and production activities in terms of a set of mathematical and logical relationships which are programmed into the computer."[13] These interrelationships should according to Gershefski (1971) represent in detail all aspects of the firm including "the physical operations of the company, the accounting and financial practices followed, and the response to investment in key areas"[14] Programming the modelled relationships into the computer is not always necessary: enterprise models, under different names, have existed for centuries and were described, for example, by Adam Smith, Walter Bagehot, and many others. Enterprise Modelling tools

 Enterprise model[edit]  An enterprise model is a representation of the structure, activities, processes, information, resources, people, behavior, goals, and constraints of a business, government, or other enterprises.[  Function modelling  Function modelling in systems engineering is a structured representation of the functions, activities or processes within the modelled system or subject area.[16]  A function model, also called an activity model or process model, is a graphical representation of an enterprise's function within a defined scope. The purpose of the function model are to describe the functions and processes, assist with discovery of information needs, help identify opportunities, and establish a basis for determining product and service costs. Enterprise Modelling tools

 Data modelling is the process of creating a data model by applying formal data model descriptions using data modelling techniques. Data modelling is a technique for defining business requirements for a database. It is sometimes called database modelling because a data model is eventually implemented in a database.  Business process modelling  Business process modelling, not to be confused with the wider Business Process Management (BPM) discipline, is the activity of representing processes of an enterprise, so that the current ("as is") process may be analyzed and improved in future ("to be"). Business process modelling is typically performed by business analysts and managers who are seeking to improve process efficiency and quality. Enterprise Modelling tools

 There are several techniques for modelling the enterprise such as  Active Knowledge Modeling,[22]  Design & Engineering Methodology for Organizations (DEMO)  Dynamic Enterprise Modeling  Enterprise Modelling Methodology/Open Distributed Processing (EMM/ODP)  Extended Enterprise Modeling Language  Multi-Perspective Enterprise Modelling (MEMO),[23]  Process modelling such as BPMN, CIMOSA, DYA, IDEF3, LOVEM, PERA, etc.  Integrated Enterprise Modeling (IEM), and  Modelling the enterprise with multi-agent systems. Enterprise Modelling tools

 More enterprise modelling techniques are developed into Enterprise Architecture framework such as:  ARIS - ARchitecture of Integrated Information Systems  DoDAF - the US Department of Defense Architecture Framework  RM-ODP - Reference Model of Open Distributed Processing  TOGAF - The Open Group Architecture Framework  Zachman Framework - an architecture framework, based on the work of John Zachman at IBM in the 1980s  Service-oriented modeling framework (SOMF), based on the work of Michael Bell  And metamodelling frameworks such as:  Generalised Enterprise Reference Architecture and Methodology Important Question

Capabilities of enterprises modelling tools.  Enterprise modelling tools can provide information regarding structure, activities, processes, information, resources, people, behaviour, goals, and constraints of a business, government, or other enterprises.  Function modelling. A function model, also called an activity model or process model, is a graphical representation of an enterprise's function within a defined scope.  Enterprise modelling is capable of Data modelling it is a technique for defining business requirements for a database.  Business process modelling,, is the activity of representing processes of an enterprise, so that the current process may be analyzed and improved in future Business process modelling is typically performed by business analysts and managers who are seeking to improve process efficiency and quality.

BPMN objective

 The primary goal of BPMN is to provide a notation that is readily understandable by all business users, including : The business analysts, that create the initial drafts of the processes. The technical developers, responsible for implementing the technology, that will perform those processes. The business people, who will manage and monitor those processes. Thus, BPMN creates a standardized bridge for the gap between the business process design, and process implementation.  XML languages, designed for the execution of business processes, such as WSBPEL, (Web Services Business Process Execution Language) and XPDL (XML Process Definition Language), can be visualized with a business- oriented notation. A key objective of the BPMN specification is to enable portability of Process definitions, so that users can take Process definitions, created in one vendor’s environment, and use them in another vendor’s environment.  It supports the management of business processes.  Provides an intuitive and easy way for non-expert users in BPM to understand the notation.  Helps in understanding complex process easily.  It reduces confussion between the process design stage and implementation, execution and BPMN management. Capabilities  Common understanding helps integration of other professionals involved in BPM, such as business analysts, staff performing the processes and also the managers, who will have access to data, to control and monitor a process that they will need understand.  It formalizes the execution semantics for all BPMN elements.  It defines extensibility mechanism for both Process model extensions, and graphical extensions. BPMN  It refines Event composition and correlation. Capabilities  It extends the definition of human interactions.  It defines a Choreography model, and a Conversation View for a Collaboration diagram.  In short, BPMN 2.0 is not just a modeling notation anymore. It is a model and a notation. Best practices for modeling with BPMN

 Process Scope  You should clearly define the scope of the Process by identifying the “Who”, “What”, “When”, “Where”, and “Why” of your process. The Process captures the “How”. It should be clear what each instance of your process represent. The process instances are discreet and identifiable, therefore you can refer to each one of them and can count them if desired. The potential alternative ways to trigger the Process should be identified, using Start Events. The potential alternative end states of the instances of the Process should also be identified using End Events. In BPMN, Start and End Events are optional. However, processes with implicit start and end events are undesirable and could lead to misinterpretations. Use Start and End Events in each Process and Sub-process to represent its beginning and completion. Best practices for modeling with BPMN

 Diagram Layouts  Aim for BPMN Diagrams that fit one page. The top-level diagram shows the whole Process on a single page, and Sub- processes can be used to expand process detail at nested diagram levels, so you can zoom in and out of your model to describe any level of detail. You should create alternative visualizations of the same Process for different communication purposes and stakeholders. For example:A summary Diagram with all Sub-processes and Call Activities collapsed and not showing any Data Objects.  A verbose Diagram with all Sub-processes and Call Activities, showing Data Objects and Annotations.  Layout your BPMN Diagrams neatly to ease readability. Diagrams can become unreadable and very confusing when the process logic is not explicit and clear. Avoid crossed lines and keep a consistent direction of flow. The diagram reading will be easier and its communication efficient. Use consistent layout with horizontal Sequence Flows, and vertical Message Flows and Associations when your draw horizontally. BPMN Diagrams are not strict temporal orderings, as it is possible to loop back, but most readers expect a left-to-right ordering. It should be clear what the primary scenario, the “Happy path” of the Process, is. Whenever possible, externalize the business rules from the Process using Business Rule Tasks to create more concise and more agile Process models. Remember that a BPMN diagram is obscured by:Long, meandering, crossing lines.  Mixed flow of the primary and alternative scenarios.  Process Partitioning and Structure A business process modeller should create a hierarchical Process model with multi layers of details for the Process. BPMN Sub-processes are used to split the Process into “phases” or “layers”. Use BPMN Call Activities to re-use other Processes or fragment of these Processes into your current Process. Best practices for modeling with BPMN

 Start and End Events  Explicit instantiation and termination of the Process should be enforced by always using Start and End Events. Alternative instantiations of the process should be depicted with separate Start Events. Success and failure end states in a Process or a Sub-process should be distinguished with separate End Events. Flows that end in the same end state should be merged to the same End Event.Gateways  To make it explicit, always use Gateways to depict split or merge of flow. Do not mix Gateway types when both diverging and converging flows. For example, when a flow is divided with a Parallel Gateway, the resulting parallel flows should be consolidated via another Parallel Gateway if or when required. Always place an Activity that determines the diverging condition(s) just before a diverging Gateway of type Exclusive, Inclusive and Complex. A benefit of this best practice is that this decision Activity can now be interrupted if need be. Abstract multiple daisy-chained diverging Gateways into a Business Rule Task, simplifying potential overloaded diagrams. Best practices for modeling with BPMN

 Collaborations  Do not model the internal process under focus into a Pool. Without a pool to label, one will not have the opportunity to fall into the bad practice of naming the Pool with the Process Name. Message flows can add valuable business context to your diagram, but it is important to use them consistently. For example, if you are going to show any message flows from and to a requester of your process, you really should show all of them, and show them consistently in each level of your model.  Other considerations  Make the process logic visible in the diagram by adequately labeling diagram elements and by showing the exception handling logic explicitly in the diagram. BPMN provides a business-friendly notation for describing exception-handling behavior. Even though the BPMN specification gives the modeler great freedom, best practice is to learn specific diagram patterns to distinguish each type of exception, and use them consistently. Make sure your model is valid. If you want others to understand your model, you need to start by making it valid, so you should validate with appropriate tools, peer reviews, etc. Keep a unique format along your diagrams and focus on a clean and friendly look and feel. Using different font sizes, colors, boxes sizes or overlapping labels might make the diagrams reading a challenge. The concepts, design and functional capabilities of a BPMS.

 BPM Software (BPMS) is software which enables businesses to model, implement, execute, monitor and optimize their processes.  A business process management suite (BPMS) is a tool to support BPM initiatives. BPMS is a model-driven approach that aids a process improvement lifecycle from start to end – from process discovery, definition, design, implementation, monitoring, and analysis. Capabilities of BPMS

 BPMS allows users to:  Model processes  Create process applications  Configure functionalities  Execute applications  Build custom reports, and  Monitor process results Capabilities of BPMS

 A BPMS supports the BPM life cycle from conception to full implementation. A BPMS also helps continuous process optimization throughout its runtime.  While creating workflows and paths is an important part of any BPMS, there are certain features that make the best BPM suites stand out from others.  Out-of-the-box utilities  Real-time process modeling  Flexible work assignment and routing  A unified platform for live collaboration  Impact analysis and simulation abilities  Cross-platform integration  Complex event processing abilities  Rule-based process authoring  Customized metrics recording and automatic report generation The Perks of Using a BPM Suite

 A BPMS can simplify process complexities in an organization and ease its pain points.  Using a BPM suite offers rapid process automation, remarkable agility, seamless collaboration between process participants, useful insights, and overall operational excellence. This gives more control to process owners and accelerates the time to value (TtV) associated with any business process.  Organizations can also use a BPMS to build a culture around management by exception (MBE), where process managers are required to step in only if an operation encounters major process deviations. This adds business intelligence to an organization’s processes and decision making. Creating Analytical and Executable Models.

 Adapting the three levels of modelling method – descriptive, analytic (operational) and executable – with incremental details at each provides an effective approach for the different stakeholders of a business process model. BPMN Descriptive Process Model

 A descriptive process model defines the scope of the end-to-end business process at the strategic level that managers can easily understand. It also depicts the expected outcome of the business process. The model serves the following purposes: Clarify the scope of the end-to-end process  Identify resources and assign responsibilities  Identify KPIs of the business process  Review the process to determine improvement and/or automation.  The key audience of such model are the executive and/or senior managers who have an interest in improving and managing the end-to-end process. Hence it must be easy to understand even for people with no experience in BPMN.  Although the model is to depict the end-to-end business process, it must be kept simple only including standard procedure and regular responsibilities. Work out the end-to-end process with a maximum of eight activities (can be task or sub-process) and only shows a single path in the model.  Apart from senior management, there will be other audience including process participants, process analysts, and process engineers. These stakeholders would expect more details but avoid jumping into the details at this level. After several iteration, an agreed end-to-end process model is reached . The figure below shows a draft of an example for “recruit new employee” process (Descriptive process Model) BPMN Analytic or Operational Process Model

 The analytic model as its name speaks is for analysis of the process either via simulation or other process improvement method adapted from Lean Six Sigma. This is where the defined KPIs come into the picture. We will skip the analytic in this paper and look at another usage of the model at this level – operational process model. An operational process model is used to show the happening at the level of the participants. It could be a day-to-day guideline of the process from the view of the respective participant. Before we continue, recall that there are different types of stakeholders and each only interested in their own views. Firstly, the process analyst who is concerned with the whole end-to-end integration of the process between human tasks and system tasks. He/she is also concerned on the improvement of the process either through process optimisation or process automation. On the other hand a process participant only interests in the activities of the process that concern him/her directly. The process engineer at this level is concerned about what the process engine has to achieve.  Having separate views of the same process for the different roles may require more works but it will pay off especially if the process crosses multiple business functions. The feedbacks from the SMEs would represent their view from within their represented business functions which match to the view for individual role.  Closing the gaps between the process analyst, process participants as SMEs and process engineers are the key to move from the operational model to the executable model. It ensures that the logic between operational model and the executable model is the same; different views based on a single model helps the business to understand any technical implication to the process (as inputs provided by the process engineer). Operational model Recruitment process BPMN Executable Process Model

 The work of moving the process model from the operational level to the executable level lies mostly between the process analyst and the process engineer. On the process model itself, the model has to be refined to include system elements such as business rule tasks, script tasks and service tasks.  The list below shows the additional requirements of an executable process model  Process data - Data that are used or generated during the process runtime. In BPMN diagram, they can be represented as data elements but for process execution, they must be further defined either in XML or object models. Data matching between parent process and sub process, receiving messages must also be defined. BTW this has nothing to do with in-memory data technology.  Organisation - Although the pool and lane of the diagram can be used to represent roles of participants, they are not binding in BPMN. The allocation is managed through membership (a combination of defined groups and roles) with other parameters (depending on the process engine). The structure of the groups, roles and other parameters must be defined and users allocated with the right memberships.  Business rules - Normally defined as decision tables and implemented on business rules management engines or decision management engine, which is called using a Business Rule task. On the process engine, the parameters, the conditions and return variables must be defined within the business rule task.  User interface - For each user task in the process model, screen or form must be defined and designed. Most out-of-the-box form designers of process engines are adequate for putting together a decent form. Depending on the process engine, it is also possible to define screen flow or page flow, i.e. having some logic flow of multiple pages of form for a single user task. In addition the form fields must be matched to the process data.  Business KPIs - Though all process engines come with some features of capturing, monitoring and reporting on KPIs, thereis no standard in BPMN at the moment and rely on the extension implemented by the individual process engine.  Apart from the above details, some controls on the process engine may be managed through 'script' language, hence "script task" in the BPMN model. Interfaces with other enterprise systems are called via various types of "service tasks". Most process engines come with a handful of pre- built integration services ready to use by the process engineer. If there is service task that is required but not available that will be a mini development project in itself. Once these definitions, designs, and developments (if any) are completed, the process model is ready for execution. The executable process model deployed on a process engine is commonly referred to as process based application or simply process application. Important question

 Draw Recruitment process model-  Descriptive  Operational  Define descriptive process model , operational process model and executable process model.