Modeling and Implementing Business Processes

Business Process – A business is a set of activities that deliver an outcome with some value to a customer (external or internal) – Business processes are built with business rules in mind – A set of goal-oriented activities that are performed in sequence, or parallel by organizational actors (not necessarily human beings). The activities use, process (change), or produce physical and information resources (materials, documents). – A business process has a well-defined beginning and end, and a customer to which it provides value (not necessarily monetary value).

Explain any three of Hammer’s (1990) seven principles for re-engineering. 1 . Organize around outcomes, not tasks 2. Have those who use the output of the process perform the process 3. Subsume information-processing work into the real work that produces the information 4. Treat geographically dispersed resources as though they were centralized 5. Link parallel activities instead of integrating their results 6. Put the decision point where he work is performed, and build controls into the process 7.

Capture information once and at the source Class 3 Review Ђ What is the role of the business process owner and why are process owners important? – Generally represented by Senior Executive – Responsible for: Process design, deployment, implementation Process budget and resources Process performance Works in cooperation with traditional department/unit heads – Responsible for workforce and training – Received budget allocation from process owners What new management principles do Hammer & Stanton (1999) propose for a process-centric organization and why? – Distributed authority over resources requires cooperation, rather than authority –

Negotiation between process owners and unit/departments heads over Process and work design Process performance metrics Resource requirements and allocation Budget allocation “Matrix of Decision Rights” – Negotiation among process owners over Shared resources Process coordination Performance metrics – Negotiation with frontline staff Managerial responsibility moved to process team Process coordinator becomes coach/leader Process owners become advocates Describe the organizational “infrastructure” components that will need to be adapted to a process-centric organization and explain how they need to be adapted.

Measurement of process performance Compensation of process performers Facilities for process teams Training and Development of process teams Career Paths for process performers Class 4 Review How are breadth and depth of a process implementation defined? Breadth Range AT actively Included In ten process or reengineering e root contribution AT process/activities to business performance Neither too narrow, nor too broad Requires business analysis and diagnosis Focus on overall business unit performance Depth Roles and responsibilities

Measurement and incentives Organizational structure Information technology Shared values (organizational culture) Skills How is process implementation success affected by breadth and depth? – Generally the greater the depth and breadth, the greater the implementation success – Increasing breadth and depth increases complexity and organizational risk Explain any 3 of Champ’s 11 guidelines on how to manage process implementation change. An executive must be involved, not Just supportive – Put the best people on the process design teams and keep the teams small change ten work as quickly as you can – Go further with the change than you are inclined, and leave no paper behind – Tell everything that you know – Empathic – Know the corporate values that you want to preserve – Know the corporate values of your business partners – Regularly inspect the workplaces of your global operations – Anticipate the new worker – Recognize that process change never ends Class 5 Review Explain the five process enablers in Hammer’s POEM Design Performers Owner Infrastructure Metrics Explain the enterprise capabilities in Leadership Culture Expertise Governance Class 7 Review Explain and describe any 3 of the 6 principles of Lean – Let the customer pull – Continual improvement – Make the process flow – Identify the value stream – Specify value Describe the goals for Lean? – Improve quality – Eliminate waste – Reduce time – Reduce total costs Describe any 3 of the 8 wastes described in Lean Transport Inventory Motion Waiting Over-production over-processing Defects Skills misuse What is value stream mapping and how is it implemented? – Value is anything that is worthwhile from the customer point of view The stream is the Journey from end to end.

The ideal process flows smoothly, to deliver output to the downstream customer as quickly and efficiently as possible – Start with the current process including every step – Identify those steps that add value to the customer – Everything else is either non-value adding or waste Class 8 Review Describe some key process improvement metrics – Capacity – Throughput – Cycle time – Throughput time – Utilization Class 9 Review Explain Emirs’ (2006) life-cycle model for implementing business processes Process Alcove’s Ana unreasonably Process design Process deployment and execution Process monitoring Process analysis Process optimization Describe the three layers of the YAWL system architecture – Data layer – Business Logic layer – Presentation layer Class 13 Review What is a Petri net? – Petri nets consist of places and transitions – Places represent states are modeled as circles – Transitions represent state changes and are modeled by thick bars or boxes. Class 14 Review Construct a simple Workflow net that is not sound. Identify why it is not safe.

Can terminate with tokens remaining in the workflow. Describe each of the following: Respectability Aliveness A Petri net (VPN, M) is live if for every reachable state Mn and every transition t, there is a state Mn+l reachable from Mn, which enables t Informally, it means that there are no deadlocks in the process Boundless A future state is said to be reachable from a previous state if there is a series of transitions that can eventually lead to that state A Petri net (VPN, M) is bounded if for every reachable state knavery place p, the number of tokens in p is bounded Provides maximum limits on the number of items (tokens) that can exist in a given place Soundness