Business Process Improvement Reflection
Master Global Project Management
Torrens University Australia
BUSINESS PROCESS
MANAGEMENT & SYSTEM
PROJ6009
Welcome
Facilitator: Kevin Chiang [email protected]
EMBA, MEcon, MIB, BBsMn, LSS BB, PhD candidate (OP)
16 years working experience in Finance, Telecommunication, Higher Education and Consulting.
J.P Morgan, Macquarie Group, Synergy, FTI, MBS, MU
Multi-million-dollar project manager and consultant
Westpac, Telstra, CBA, Oracle, InterSystems, Hua Wei, China Telecom
Torrens University MGPM program manager Sydney
You? Program you study? Your working experience?
Using Library & Academic Support
Learning resources on Blackboard
Use library e-book, journal, database, articles
http ://library.laureate.net.au/business/ projectmanagement
Use Google scholar; NO Wikipedia
Proper referencing - APA
Turnitin < 20% overall, <10% Single source
Safe Assign < 20% overall, <10% Single source
PMI student membership
Subject Description
The BPM covers the design, implementation, monitoring, evaluation and optimisation of an organisation’s processes. This subject provides students with the foundational knowledge that can improve their organisation's strategic and operational base line.
In this subject, students explore the definition, concepts, process mapping tools and techniques of BPM in relation to business process life cycle and the role of technology in business processes management.
The subject incorporates theories and applications including Project Change Management; Organisational Agility; Business Analytics and Performance Review. It also introduces how disruptive technologies can impact on business process management including Internet of Things (IoT), Smart Services, Process Automation, and Clustered Innovation.
The subject opens up basic concepts of Lean and Six Sigma, which constitute an integral knowledge to advanced subjects in Master of Global Project Management.
Subject Structure
Module 1 – Foundation of Business Process Management (BPM)
Module 2 – Drivers of BPM Projects and Opportunities
Module 3 – Phase of Business Process Management
Module 4 – Business Process Analytics and Improvement
Module 5 – Lean and Six Sigma in BPM
Module 6 – Enterprise Systems and Applications in BPM
Roughly Two sessions (weeks) per Module
Assessment Structure
| Assessment Task Overview - Individual or Group | Points | Due Date |
| 1. Business Process Development Plan | ||
| Part A: Business Process Analytical Plan:” As-Is & To-Be” Mapping | 30 | End of Week 6 |
| Part B: Business Process Improvement Report: “Should-Be” Mapping | 30 | End of Week 10 |
| 2. Business Process Improvement Reflection | ||
| Part A: Presentation: Commentary on Best Practice of BPI Case Study | 20 | End of Week 8 |
| Part B: Reflection Report: Incorporating Feedback From Cohort | 20 | End of Week 11 |
| Total for Course | 100 |
Module 1:
Foundation of Business Process Management
Activities
Any decision(s) you made recently which was absolutely necessary, can not live without?
Why did you make the decision(s)?
How much do(es) each decision impact on entire event?
Efficiency vs Effectiveness
Example: Flights to HK for a conference
Some descriptions
A Business Process consists of a set of activities that are performed in coordination in an organisational and technical environment.
Business process is a collection of inter-related events, activities and decision points that involve a number of actors and objects, and that collectively lead to an outcome that is of value to at least one customer.
Business Process Management is a Process-Centric approach for improving business performance, which combines Information Technology and Governance methodologies.
BPM includes concepts, methods, and techniques to support the design, administration, configuration, enactment, and analysis of business processes.
Some descriptions cont…
Some descriptions cont…
A BPM System is a generic software system that is driven by explicit process representations to coordinate the enactment of business processes.
BPM is NOT the only discipline that is concerned with improving the operational performance of organisations.
Other disciplines: TQM, Operations, LEAN, Six Sigma
Why BPM?
IT is essential to all organisations: Private, Public, Non-profit
Thorough understanding how the business operates
Speedy product and service design
Enhance stakeholder engagement
Organisational change requirement
Internet based communication among
equipment and products
A business process model consists of a set of activity models and execution constraints between them. Typical examples:
Quote to Order
Order to Cash
Procure to Pay
Issue to Solution
Application to Approval
Business Process Model
Observe to Analyse
Analyse to Interpret
Interpret to Decision-Making
Strategy (DM) to Operations
Performance to Evaluation
Business Process Model
Sample ordering process to re-seller
Activities
Recall your previous or current working experience, list all events or activities occurred within selected business processes.
Share with the class
Pillars of BPM
People (Process Owner)
Process (Operations Flow)
Technology (Better process enabler)
BPM Development
Functional Organisation emerging since The Second Industrial revolution to 1980’s : Small groups focused on getting their own things right; created in-efficiency and lack of coordination cross corporates.
Process Thinking: The key event for the development of BPM was Ford’s acquisition of a big financial stake in Mazda during the 1980s.
One of the breakthrough drivers was: Mazda was under-staffed. Ford had hundreds people checking errors, but making errors same time, where Mazda avoided discrepancies at the first place.
BPM Development
Purchasing process at Ford at initial stage
Purchasing process at Ford after re-design
Central
Processing point
The Rise and Fall of BPR: Numerous white papers, articles, and books appeared on the topic throughout the 1990s and companies all over the world assembled BPR teams to review, re-design or re-engineer their processes.
Concept misuse
Over radicalism
Support immaturity
BPM Development
Concept misuse: In some organizations, about every change program or improvement project was labeled BPR even when business processes were not the core of these projects. During the 1990s, many corporations initiated considerable reductions of their workforce (downsizing) which, since they were often packaged as process redesign projects, triggered intense resentment among operational staff and middle management against BPR. After all, it was not at all clear that operational improvement was really driving such initiatives.
Over-radicalism: Some early proponents of BPR, including Michael Hammer, emphasized from the very start that redesign had to be radical, in the sense that a new design for a business process had to overhaul the way the process was initially organized. A telling indication is one of Michael Hammer’s early papers
1.3 Origins and History of BPM 13
on this subject which bore the subtitle: “Don’t automate, Obliterate”. While a radical approach may be justified in some situations, it is clear that many other situations require a much more gradual (incremental) approach.
3. Support immaturity: Even in projects that were process-centered from the start and took a more gradual approach to improving the business process in question, people ran into the problem that the necessary tools and technologies to implement such a new design were not available or sufficiently powerful. One particular issue centered around the fact that much logic on how processes had to unfold were hard-coded in the supporting IT applications of the time. Understandably, people grew frustrated when they noted that their efforts on redesigning a process were thwarted by a rigid infrastructure.
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Technology advancement:
ERP (Enterprise Resources Planning) systems are essentially systems that store all data related to the business operations of a company in a consistent manner, so that all stakeholders who need access to these data can gain such access.
WfMSs (Work flow Management Systems) are systems that distribute work to various actors in a company on the basis of process models.
BPM Development
BPM Life Cycle
The business process lifecycle consists of phases that are related to each other which are organised in a cyclical structure, showing their logical dependencies.
Many design and development activities are conducted during each of these phases, and incremental and evolutionary approaches involving con-current activities in multiple phases are not uncommon. (Segatto 2013)
Segatto, M., Pádua, S. I. D. d., & Martinelli, D. P. (2013). Business process management: a systemic approach? Business Process Management Journal, 19(4), 698-714.
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Administration
& Stakeholders
BPM Life Cycle
Evaluation
Design & Analysis
Configuration
Enactment
Design & Analysis
General enter point
Conduct survey on organisational and technical environment:
Structure, Key P&P, Software & System
Business operations & improvement flow
Process identification and modelling
Validation, simulation, verification
BPM Life Cycle
Activities
Identify your business’s organisational and technical environment.
Eg, Torrens University
Student appeal policies & procedures
Configuration
In case a dedicated software system is used to realise the business process, an implementation platform should be chosen during the configuration phase.
System selection
Implementation
Test and deployment
BPM Life Cycle
Activities
Identify your business’s Systems used in various functions
Eg, Torrens University
Learning management system
CRM system
HRM system
Integration system (CAP)
Enactment
The actual run time of the business process - Execution
Needs to cater to a correct process orchestration, guarantee the process activities are performed according to the execution constraints specified in the process model.
Operations, Monitoring, Maintenance, Status
BPM Life Cycle
Evaluation
Execution logs examination
Process mining (Discovery, Conformance check, Extension)
Business Process Intelligence (BPI)
Business Activities Monitoring (BAM)
BPM Life Cycle
Aalst, W. van der 2005
BPM Life Cycle
Administration and Stakeholders
A set clear policies and procedures in place
A KMS with skillful, knowledge workers, expertise, experience.
A well-structured repository with powerful query mechanisms is essential to manage multiple business processes.
Roles of Stakeholders in the BPM
Chief Process Officer (Path finder, Director hunter)
Business Engineer (Vision converter, Goal aligner, Communicator)
Process Designer (Data analysts, Modelling guru)
Process Participant (Doer, Activity conductor)
Knowledge Worker (IT applicants, Automation enabler)
Process Responsible (Test, Detector, Error finder)
System Architect (Configurator, Business infrastructure builder)
Developers (Coding writer, Interface designer, System prettier)
BPM Life Cycle
Business Process Levels
Organisational vs Operational
What happened here, what happened out there?
So what in it for me (the business)?
Why we intent to do this?
Now we are doing it?
Hang on, how we gonna do it?
Any 7 Ss enable us to do it?
Now we are REALLY doing it…
Oh Sh*t, something went wrong…
What can we find from mistakes?
Let’s change people, methods, environment?
Are we ready to do it again?
Do it now, do it right, do it with methods...
Cool, we did it!
We did it well!
Can we do it again?
Business Process Levels
Optional
Degree of Automation
Degree of Repetition
Degree of Structuring
Module 2 Drivers of BPM Projects and Opportunities
Reference
Aalst, W. van der, Beer, H., & Dongen, B. van (2005). Process Mining and Verification of Properties: An Approach based on Temporal Logic. In R. Meersman & Z. T. et al. (Eds.), On the Move to Meaningful Internet Systems 2005: CoopIS, DOA, and ODBASE: OTM Confederated International Conferences, CoopIS, DOA, and ODBASE 2005 (Vol. 3760, pp. 130–147). Springer-Verlag, Berlin
Segatto, M., Pádua, S. I. D. d., & Martinelli, D. P. (2013). Business process management: a systemic approach? Business Process Management Journal, 19(4), 698-714.