Second Edition
Second Edition
Second Edition
Edition
Business
Process
Management
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Key Concepts
Business Process Management
Business Process Management (BPM) is a systematic approach that is used to
make an organization's workflow effective, efficient and responsive to
changing environment.
Purpose of BPM
To reduce human error and avoid miscommunication. Link operational
processes to corporate strategies. Measure performance indicators from
processes for evaluation of business success.
BPM Software
Software that allows users to create BPM diagrams and integrate process
content with critical business entities (departments, resources, etc.) Please
refer to Appendix A for more details about BPM soft-wares.
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Key Concepts
Business Process Design (BPD)
BPD is the systematic working by which an organization understands, defines and
documents the business activities that enable it to function efficiently, effectively
and economically.
Sub-process
A sub-process is a compound activity that is included within a task (process). Each task may
have its own sub-processes. Each sub-process can also contain other sub-processes.
Activities
Activities are the lowest-level process steps in modeling software where actual work is
performed. Activities cannot be broken down into further steps.
Process Owner
The person (Resource) responsible for the process.
Scope of a Process
It describes the boundaries of a process and includes start and end points, the
context in which the process is performed and elements excluded from that context.
Workflow Diagram
It refers to a simple form of flowchart depicting the flow of tasks or actions from
one person or group to another. It typically consists of a set of symbols
representing actions or individuals connected by arrows indicating the flow from
one to another.
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Benefits of BPM
1. Improves process quality, reliability and output.
2. Helps for continuous process improvement that provides foundations for BPR.
3. Maximizes process visibility that helps in reducing costs.
4. Improves strategic decision-making by providing correct information at correct
time. It provides end-to-end performance visibility and optimization of
resources.
5. Improves operational efficiency that results in the avoidance of wastage and
loss of company resources.
6. Consistent execution reduces process cycle time.
7. Improves customer satisfaction by delivering better and enhanced value.
8. Promotes organizational flexibility and business agility.
9. Promotes communication and collaboration between departments.
10. Helps in standardization of procedures.
11. Helps in measuring KPIs and thus improves accountability.
12. Promotes safe working conditions that protect company resources.
13. Defines roles and responsibilities that increases employee efficiency and
satisfaction.
14. Simplifies regulatory compliance.
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Process Composition
Process
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BPM Life-Cycle
Following are stages in BPM
Life-Cycle:
Designing,
Modeling,
Executing,
Monitoring &
Optimizing
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1. Designing
BPD is the systematic working by which an organization understands, defines and
documents the business activities that enable it to function efficiently, effectively and
economically.
The purpose of BPD is to ensure that processes are optimized, effective, meet
customer requirements, support and sustain organizational development and growth.
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3. Executing
It refers to automating processes by using
BPM application software that executes the required steps
of a process. BPM soft-wares are either purchased or
developed to fit to the requirements of a company. Please
refer to Appendix A for BPM soft-wares.
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4. Monitoring
Monitoring refers to tracking of individual processes, so that
information about them can be checked.
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5. Optimizing
Refers to retrieving process performance information from
monitoring phase, identifying the potential or
actual problems, recognizing the opportunities for cost
cuttings or further improvements and then, applying those
enhancements in the design of the process. In more specific
terms, optimizing may include the following activities:
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Workflow for Purchase of Materials
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Workflow for Project Delivery
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Purchasing of
Materials –
Workflow
Diagram
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Brief Background
Hammer and Champy (1990s) felt that the design of workflow in most
large companies was based on facts about
technology, people, practices, and organizational goals that were no longer
applicable.
They suggested seven principles of re-engineering to streamline the work
process and, thereby, achieve significant levels of improvement in
quality, time management, and cost:
1. Organize around outcomes, not tasks.
2. Identify all the processes in an organization and prioritize them in order of
redesign urgency.
3. Integrate 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 in the workflow instead of just integrating their results.
6. Put the decision point where the work is performed, and build control into the
process.
7. Capture information once and at the source.
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Methodology
BPR involves the redesign of business processes to achieve improvements in
productivity, cycle time, quality and cost.
BPR typically adopts a new value system that places emphasis on customer
needs. They remove unnecessary organizational layers and eliminate
unproductive activities in two key areas.
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Case Study -- Taco Bell
Taco Bell (founded in 1962, California) created K-Minus Program
(Kitchen-less Restaurant) based on the fact that they are a retail service
company, not a manufacturing company. In the new process, meat, beans,
corn shells, lettuce, tomatoes and cheese for their products are prepared
outside of the restaurants in central commissaries. At Taco Bell
restaurants, the food ingredients are prepared when ordered for customer
consumption. Taco Bell has produced the following results: greater quality
control, better employee morale, fewer employee accidents and injuries, big
savings and more time to focus on the customer satisfaction. Currently,
they are redefining how to deliver their food services, by taking their food
service to public gathering places such as dining centers, schools,
universities, airports, and stadia. Taco Bell has progressed from a $. 500
million regional company in 1982 to a $. 1.9 billion in 2009 a national
company. (Hammer & Champy 1993, pg. 178-179)
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Abbreviations
Abbreviation
# Complete Term
s
1 IT Information Technology
2 BPD Business Process Design
3 BPM Business Process Management
4 BPMd Business Process Model
5 BPMS Business Process Management Suites
6 KPIs Key Performance Indicators
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Appendix A: List of BPM soft-wares
# BPM Software Website
2 RunMyJobs http://www.runmyjobs.com
3 BPMS http://www.sydle.com
5 ProcessMaker http://www.processmaker.com
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A Presentation by:
A h m a d Ta r i q B h at t i
Contact details:
Email id: [email protected]
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