Reflection Report: Best Practice of BPI case study
rupali
RevisionT1.20.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
Business Process
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.
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 to Operations
Performance to Evaluation
Pillars of BPM
People (Process Owner)
Process (Operations Flow)
Technology (Better process enabler)
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
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
Key BPM Capabilities
Leverage for Efficiency
BPM enables by service oriented architecture (SOA)
BPM solutions maximise assets re-use
Respond Faster
BPM allow flexible processes design, quick responses to customer, partners and competitions
Manage Change
Streamline processed to keep employees productive and customers satisfied
Basic Components of BPM
Modeling and Simulation
Business Activity Monitoring (BAM)
Rules and Pre-built Frameworks
Content-centric Processing
Collaboration Between People
Process Automation
Ten Principles of Good BPM
1. Principles of Context Awareness
2. Principle of Continuity
3. Principle of Enablement
4. Principle of Holism
5. Principle of Institutionalisation
6. Principle of Involvement
7. Principle of Joint Understanding
8. Principle of Purpose
9. Principle of Simplicity
10. Principle Of Technology Appropriation
Driver and Triggers
Organisations
Management
Employees
Customers
Products and services
Processes
IT
Conduct the Audit
Analysis necessity for process improvement
Design objectives, strategies and team
Stakeholders impacted and required
Current As-Is process
Ideal Should-Be process
Execution and Enactment
Monitor and Evaluation
As-Is vs To-Be Process
As-Is Process:
Examine flowchart
Document functional performance
Point out the Obvious improvement needed
Qualitative and Quantitative measurement on performance
To-Be Process:
Enforce future values
Visionary and ideation
Required inputs
Desirable outcomes
Upstream selection
Though describe the future outcome of change
As-Is vs. To-Be Processes
Should-Be Process
Identify the foreseeable state of process
Strategic movement and/or improvement
VOCs and CTQs
VOPs and boundaries
Might be undergoing transition / incomplete
Phases of BPM – Another view
Design – Identification of current and design for future processes
Modelling – Consider multiple combination of variables (What if)
Execution – Use technical and human intervention to automate processes
Monitoring – where process performance is measured; tools are used, BAM
Optimisation – Lesson learned, performance improved, value created, reach a level of maturity
Process Governance
Impersonal governance
Rules, Regulations, Organisational requirements
Policies, Procedures, Compliance
Personal governance
Work ethics,
Work capabilities
Work performance
Business Intelligence aim 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 happened?
Eg: Compare current data and historical record, and see what 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
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
Main BPI Methods
Business Process Re-engineering (BPR)
Newly developed processes are being creative, innovative, and change focused
Process Mapping
Inter-relationship 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
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
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 bespoke 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
Customer experience
Improve Processes
Map processes.
Analyse the process.
Redesign the process.
Acquire resources.
Implement & communicate change.
Review the new process.
DMAIC Methodology
DMAIC is a structured problem-solving methodology widely used in modern businesses.
Define – Measure – Analyze – Improve – Control
DMAIC encourages creative thinking within boundaries, such as keeping basic process, product or service.
Implement LEAN in Manufactory
Identify values (Current value & future value proposition)
Map the value stream (VSM)
Create and maintain the flow (From As-Is to To-be)
Establish Pull, not Push (Understand customer’s requirements, not push fixed products through)
Improve continuously (Kaizen…)
Value Stream Map (VSM)
Step 1
Step 3
Data:
Set up time: 10 min
Process time: 300 min
Units in queue: 23
Complexity: 15
Queue time: 65 min
Data:
Set up time: 8 min
Process time: 400 min
Units in queue: 21
Complexity: 22
Queue time: 122 min
Step 2
VSM is a process map with data to identify values & quantify waste
Enterprise Resources Planning System
ERP is a typical ES widely used in manufactory industry, incorporated with key functions such as Product development, Production and Post-sales Services. Normally including:
HRM (Human Resources Management)
CRM (Customer Relationship Management)
FRM (Financial Resources Management)
SCM (Supply Chain Management)
MRP (Manufacturing Requirement Planning)
ERP Phases / Life Cycle
Planning Phase
Implementation Phase
Post – Implementation phase
Extended enterprises and E-business
ERP Customisation vs Configuration
Customisation is always optional
Customisation embedded organisational requirements
The original software are designed to accommodate various configuration
The effect configuration changes system behaviour and performance can be predicted
Challenge of ERP
Top Management Commitment
Why we need, choose, use this ERP?
Business Process Clarity
Simple, Complicated, Complex or Chaotic
IT Infrastructures
Hardware and Software ready and updated
Change Management
Who is doing what in the new System?
Insufficient Training
How does it work exactly? Predecessors and Successors
Lack of Ownership
It was not my idea, why ask me to do it now?
Challenge of ERP
Tools for ERP evaluation
Stakeholders and End-users feedback
MBO checklist (Manage by Objectives)
Cost-Benefits analysis
Variance analysis: compare “As-is” and “To be” processes
Benchmarking
Questions
