project management
samira121
M4BPAnalysisandImprovementT1.192.pptx
Master Global Project Management
Torrens University Australia
BUSINESS PROCESS
MANAGEMENT & SYSTEM
PROJ6009
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
Module 4:
Business Process Analytics and Improvement
Business Process Analytics
Use tools and techniques to turn data into meaningful business insights
Business Intelligence aims to generate more values for customers and the business
Accurate view of business process is required and the starting point
Process optimisation and maturity are the BPM goals
Combine process flow with data
Business Process Analytics
Type of Analytics
Descriptive analytics – What had happened?
Eg: Compare current data and historical records, and see what had happened?
Predictive analytics – What might happen?
Eg: Pareto to identify key influencers
Regression to analyse inter-relationship among variables
Prescriptive analytics – What should we do?
Eg: Optimization or Simulation model – True business intelligence
Eg1: Traditional Analytics
Collect raw but structured data
Extract, Transform and Load
Data warehouse store data
Use tools to analyse data and generate graphic and report
Eg2: Big Data Analytics
Collect Big data though unstructured
Pulling into Hadoop cluster, which extracts large amount unstructured data super fast, and can do some data scrubbing
Cleaned data into Data warehouse then tools to analysis
In a computer system, a cluster is a group of servers and other resources that act like a single system and enable high availability and, in some cases, load balancing and parallel processing
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Eg3: Excel Power User
Pull out data from existing Excel, webs or database
Use Excel as primary analytical tool
Pivot a table or graphic then report
BP Analytics Challenges
Data often are not that clean, need scrubbing
Data tend to be more unstructured, as they come from everywhere
Data volume grows toooooooo fast
Key BP Analytics
Business process analytics can help increase operational efficiency, protect company reputations, eliminate waste and save resources. Key BP analytics:
Core Competency analytics
Supply Chain analytics
Project and Program analytics
Other BP analytics might impact on business success:
Fraud detection analytics
Capacity utilisation analytics
Lean Six Sigma analytics
Environment impact analytics
CSR impact analytics
Key BP Analytics
Business Data and Analytical Tools
Current in-use spreadsheet
Databases
Purchased information
Business social media gathering
Statistical tools, Regressions, Modelling
SAP, Oracle, Salesforce
Commonly Used Analytics Tools
Business Experiment: Try try and never die.
Try something in one part of organisation and compare it with where change is not made. Eg, SafeAssign vs Turnitin
Visual analytics: Let me see the patterns and moves.
An integrated approach to make sense of Big data analysis, visualisation, and Human interaction. Eg, Info-graphics
Correlation analysis: What do they do to each other?
Determine whether there is a relationship between two separate variables and how strong that relationship may be.
Eg: How well you prepare vs Meeting cancelled
the Muphry’s Law
Regression analysis: Why this happened? What caused it?
Investigate relationship between variables
Commonly Used Analytics Tools
Scenario analysis: Over the horizon look! What if.. then…
Simulate various events of possible future, consider alternative outcomes, to determine actions to pursue.
Eg: Investment portfolios, BP re-design
Revenue / Cost estimation
Capacity Options
Commonly Used Analytics Tools
Data mining: Big data analysis
Text mining: Unstructured text extraction, information retrieval, pattern recognition, annotation
Opinion mining: Sentiment analytics. Categorise subjective opinions to determine individual or group attitude
Commonly Used Analytics Tools
Other tools
Image, Voice, Video analytics
Monte Carlo simulation
Linear programming
Cohort analysis
Factor analysis
Neural network analysis
Mega/Literature analysis
Research Activity
Any suggestions to better manage mega data?
Any suggestions to produce more meaningful business intelligence?
Business Process Improvement
“How to advance business core competencies, and create more values for customers” - $M Question
Reinforce business triple bottom lines – Profitability, Ethics, Governance
Not all process improvement efforts lead to profitability increase, therefore CBA is necessary
Main BPI Methods
Business Process Re-engineering (BPR)
Newly developed processes are being creative, innovative, and change focused
Process Mapping
Inter-relationships among business
activities are being efficient
and effective
Six Sigma
Scientific, statistical and evidence based improvement
Benchmarking
Comparison study on current performance and standardised performance (Best Practice)
Main BPI Methods
Business Process Re-Engineering (BPR)
Using Radical change to improve organizational performance
Do stuff
-> Do stuff differently
-> Do different stuff
-> Do different stuff differently
Key common elements of BPR
Defining the project (limits and scope).
Determining the vision for the redesign.
Creating a plan or model for the redesign.
Completing a cost-benefit analysis (CBA).
Developing a detailed plan for implementation.
Establishing performance measures for evaluation.
Kaizen
Change (Kai) for the Good (Zen);
Kaizen is based on the philosophical belief that everything can be improved;
Kaizen facilitates continuous and incremental improvement;
Kaizen Approaches
Much of the focus in Kaizen is on reducing "waste" and this waste takes several forms:
Movement – moving materials around before further value can be added to them
Time – spent waiting (no value is being added during this time)
Defects – which require re-work or have to be thrown away
Over-processing – doing more to the product than is necessary to give the "customer" maximum value for money
Variations – producing be-spoke solutions where a standard one will work just as well.
Kaizen Approaches
8 Wastes of LEAN
Defects
Over-production
Waiting
Non-Utilised talent
Transportation
Inventory
Motion
Extra-Processing
https://goleansixsigma.com/8-wastes/
Process Mapping
Not just data flow or flow chart, but a framework shows relationships between the activities, people, data and objectives.
There are two types of process mapping:
Value-added process map,
Cross-functional map or process interaction map.
Swim Lane Diagrams
Swim Lane Diagrams were proposed by Geary Rummler and Alan Brache in their book Improving Processes (1990).
The added advantage of the Rummler-Brache or Swim Lane Diagram approach is that it focuses on the high-risk interconnections between departments and teams, and helps spotting clearer issues and risks associated with them.
Customer Experience Mapping
Seeing business processes through customers’ eyes.
Map out customer experience
Identify customer “Touch-points”
Outline key stages of customer experience
Populate, analyse and valid the map
Sample of Customer Experience Mapping
Process Improvement Plan
Details the steps for analysing project management and product development process to identify activities that enhance their value. Areas to consider include:
Process boundaries
Process configuration
Process metrics
Targets for improved performance
Process Analysis
Follows the steps outlined in the process improvement plan to identify needed improvements.
The analysis also examines problems experienced, constraints experienced, and non-value added activities, and it includes Cause-Effect analysis, FMEA, 5 Whys…
Improve Processes
Map processes.
Analyse the process.
Redesign the process.
Acquire resources.
Implement & communicate change.
Review the new process.
Activity
Use various colours post notes and label on your process in Swim lane or CX mapping;
Identify
Pain points
Wastage
Value add
New activities
More …
Module 5 Lean and Six Sigma in BPM
Reference
Marr. B. 2016
https ://www.forbes.com/sites/bernardmarr/2016/02/04/the-18-best-analytics-tools-every-business-manager-should-know/2/# 1cb7912c2e84
Siha, S. M., & Saad, G. H. (2008). Business process improvement: empirical assessment and extensions. Business Process Management Journal, 14(6), 778-802.
Childe, S. J., Maull, R. S., & Bennett, J. (1994). Frameworks for Understanding Business Process Re‐engineering. International Journal of Operations & Production Management, 14(12), 22-34.
Business Process Re-enginerring, Mindtools
https://www.mindtools.com/community/pages/article/newSTR_74.php?route=pages/article/newSTR_74.php
