Business Process Improvement Reflection

profilerupali
M1FoundationofBPMT1.20.pptx

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.