1. Marlon Dumas marlon.dumas ät ut . ee
MTAT Business Process Management (BPM) (for Masters of ETM) Lecture 1: Introduction
Marlon Dumas
marlon.dumas ät ut . ee

2. Course Objective
The objective of this course is to introduce the principles and methods of business process management.
The course emphasises the role of business process modelling as an instrument to understand and analyse business operations, and to drive the design of Information Technology solutions to support the automation of business processes.

3. Structure of the Course
Four sessions
12.02 – Introduction to BPM and BPMN
12.03 – Process Analysis & Improvement
16.04 – Process Lifecycle Management
04.06 – Project Presentations and Exam
Two homeworks worth 10 points each
Project (30 points) – starting on 16.04
Exam (60 points)
Total = 110 points but maximum score = 100

4. Readings and Resources
Recommended textbook
Manuel Laguna and Johan Marklund. Business Process Modeling, Simulation and Design, Prentice Hall, (esp. Chapters 1, 2 and 3)
Other readings & resources listed in the course pages:
Readings are examinable
Please register to the course mailing list

5. Agenda for Today Time Contents 10.15-11.45 Introduction to BPM
Break
Introduction to Process Modeling and BPMN
Lunch Break
BPMN (Part II) – with a coffee break at 15:45-16:00

6. Introduction to Business Process Management
Part I
Introduction to Business Process Management

7. BPM: What is it?
Body of methods to design, analyze, execute and monitor business operations involving humans, software, information and physical artifacts using process models.

8. So What is a (Business) Process
A collection of inter-dependent activities whose collective performance is intended to achieve a goal such as delivering a product or a service.
Examples:
Order-to-Cash
Procure-to-Pay
Claim-to-Settlement (Insurance)
Fault-to-Resolution
Which definition do you prefer
Note - Keen allows processes to have no customers (e.g., cultural processes) - in a sense, making a difference in terms of service, etc. takes into account the customer,

9. “My washing machine won’t work!” fault-report-to-resolution process
Warranty?
Service
Dispatch
Technician
Call Centre
Customer
Parts
Store
Customer
Customer
VALUE
fault-report-to-resolution process
© Michael Rosemann

10. Background to BPM Organisational Management - Adam Smith (1776)
Observation: “a number of specialized workers, each performing a single step in the manufacture of a pin, could make far more pins in a day than the same number of generalists.”
Quoted from Hammer & Champy 1993

11. Limitations of Functional Org.
Focus on skills and resource utilization rather than work output
Reward systems tailored for the functional unit not the overall firm
Group behavior and cultures fostering an “us versus them” mentality
Creates silos  “firms within the firm” with their own agenda
© Laguna & Marklund

12. Complementarity of Functional and Process Views
Other
Stakeholders
Resources
Organisation System
Financial
Function A
Function B
Function C
Human
Resources
Materials
Technology
Business Processes
Customers
[after Rummler 1984]

13. Why BPM?
“The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.”

14. Why BPM?
Improving Business Processes = #1 business priority for CIOs internationally, 4 years in a row…
© Gartner Group, 2009 CIO Survey

15. Why BPM? Process Change Yields Information Technology Business Value
Enables
Yields
Process
Change
Index Group (1982)

16. How to do BPM? Two complementary BPM approaches:
Continuous Process Improvement (CPI)
Change that brings a process closer to its normal operating standards
Does not question the fundamental assumptions and rules that define the current process design
Business Process Re-Engineering (BPR)
Questions existing assumptions and rules
Requires new perspectives to generate innovative solutions with potential for breakthrough improvements
© Laguna & Marklund

17. Continuous vs. Radical Improvement
Time
Incremental
Radical
Theoretical
Capability
Statistical
Process
Control

18. The Ford Case Study (Hammer 1990)
Ford needed to review its procurement process to:
Do it cheaper (cut costs)
Do it faster (reduce turnaround times)
Do it better (reduce error rates)
Accounts payable in North America alone employed > 500 people and turnaround times for processing POs and invoices was in the order of weeks
The solution:
Rationalization
Automation

19. The Ford Case Study
Automation would bring some improvement (20% improvement)
But Ford decided not to do it… Why?
Because at the time, the technology needed to automate the process was not yet available.
Because nobody at Ford knew how to develop the technology needed to automate the process.
Because there were not enough computers and computer-literate employees at Ford.
None of the above

20. The correct answer is … Mazda’s Accounts Payable Department

21. How the process worked? (“as is”)

22. How the process worked? (“as is”)

23. How the process worked? (“as is”)

24. How the process worked? (“as is”)

25. How the process worked? (“as is”)

26. How the process worked? (“as is”)

27. Reengineering Process (“to be”)

28. Reengineering Process (“to be”)

29. Reengineering Process (“to be”)

30. Reengineering Process (“to be”)

31. Reengineering Process (“to be”)

32. Reengineering Process (“to be”)

33. The result… 75% reduction in head count
Material control is simpler and financial information is more accurate
Purchase requisition is faster
Less overdue payments

34. Principles of BPR
Have those who use the output of the process perform the process
Subsume information-processing work into the real work that produces the information
Treat geographically dispersed resources as though they were centralized
Capture information once and at the source

35. Exercise – Claims Handling in a Large Insurance Company
Claims handling for replacement of automobile glass
Set up procedure
The CEO appoints an executive sponsor to lead the project
Team members are handpicked by the CEO and the sponsor
The team creates a flowchart of the existing process
Under the existing process the client may have to wait 1-2 weeks before being able to replace the damaged auto glass
Goal – A radical overhaul and improvement of the process to shorten the client waiting time
© Laguna & Marklund

36. Overview of the existing claims process
Client
Local
independent
agent
Approved
glass
vendor
Claims
processing
center
Request additional information
Pay
Notify agent
File claim
Give instructions
Forward
claim
Request quote
Provide quote
© Laguna & Marklund

37. Existing claims process
Client notifies a local agent that she wishes to file a claim. She is given a claims form and is told to obtain a cost estimate from a local glass vendor.
When the claims form is completed the local agent verifies the information and forwards the claim to a regional processing center.
The processing center logs the date and time of the claim’s arrival. The data is entered into a computer-based system (for record keeping only) by a clerk. The claim is then placed in a hard copy file and passed on to a claims representative.
a) If the claims representative is satisfied with the claim it is passed along to several others in the processing chain and eventually a check is issued and sent to the client.
b) If there are problems with the claim the representative mails it back to the client for necessary corrections.
5. When the client receives the check she can go to the local glass vendor and replace the glass.
© Laguna & Marklund

38. New Recommended Design
Client
Claims
processing
center
Approved
glass
vendor
Call in claim
Schedule repair
Pay
Notify
© Laguna & Marklund

39. Procedural changes to the new process
The Claims representative is given final authority to approve the claim.
Long term relationships with a limited number of glass vendors enables the insurance company to leverage its purchase power to pre-negotiate low prices.
Clients no longer have to collect estimates.
Vendors are certified for quality, price, reliability, etc.
The Client now contacts the claims representative directly instead of going via a local agent.
© Laguna & Marklund

40. Structural changes to the new process
A new 24 hour hotline enables the client to speak directly to a claims representative at the regional processing center.
The claims representative gathers data over the phone, enters the data into the computer and resolves any issues on the spot. He tells the client to expect a phone call from a certain glass vendor to arrange the replacement.
The claims information is immediately available for accounting via a LAN system and they can start processing the check and send it to the vendor.
© Laguna & Marklund

41. Benefits of redesigned process
The client can have the glass replaced within 24 hours
As opposed to 10 days
The client has less work to do
Only one phone call, no need for a cost estimate
Problems handled immediately when the claim is filed
Lost or mishandled claims virtually disappear
Less people involved in the process  lower op. costs
Long term relationships with glass vendors
Savings of 30-40% on paid claims due to special discounts
Consolidated monthly payments  lower handling costs
More consistent and reliable service
Claims representative feels ownership of the process
© Laguna & Marklund

42. How to do BPM? Profit maximizing firms Non-profit organizations
Step 1: Define the strategic goals and link them to measurable objectives
Profit maximizing firms
Non-profit organizations
Overarching goal is usually to
maximize long term shareholder value
A common goal is survival and
growth while satisfying customer needs
Maximize revenues and
minimize costs
Must use resources efficiently while
understanding customer needs
Satisfying customer needs in an efficient way
© Laguna & Marklund

43. Step 2: Document the “as is” process

44. Step 3: Analyze the existing process
Qualitative analysis
Issue Register
Scenario analysis
Cause-Effect-Analysis
Quantitative Analysis
Cycle Time Analysis
Capacity Analysis
Queuing Theory
Simulation

45. Step 4: Re-design Strategy / Goals Capabilities As Is To-Be
Issues
Barriers
Guidelines
Capabilities IT
Knowledge
People
Ability to change
Culture
To-Be
Best Practice
Reference
Models
Bench
marking
Ideal
models
Study
tours

46. Basics of Process Re-Design: Activity Classification
A key step in process re-design is classifying of the process activities into value-adding and non-value adding
Crucial in identifying waste and inefficiencies in existing processes
Activity
Value-Adding
Non-Value Adding
Handoff
Delay
Rework
Business Value Adding
Control
Policy compliance
© Laguna & Marklund

47. Activity Classification
Customer value-adding activities
Essential in order to meet customer expectations
Activities the customer would be willing to pay for
Involves doing the right things right
Performing the right activities
Doing them correctly, with high efficiency
Business value adding activities
Control activities
Do not directly add customer value but are essential to conducting business
Non-value adding activities
Activities the customer is not willing to pay for
© Laguna & Marklund

48. Activity Classification
Elimination of non-value adding activities is a key first step in redesigning business processes
Often achieved through task or activity consolidation
Task and activity consolidation reduces
Hand-offs
Need for control activities
Process complexity
© Laguna & Marklund

49. Step 5: Automate

50. And finally: close the loop…
Goal definition
Process modelling (as-is)
Process analysis
Process re-design (to-be)
Process implementation
Process execution
Process monitoring/controlling
Process Modeling Tools
Process Management Systems
In the following we will specify the process modelling task. Especially, we will understand the characteristics of a model, the difference between a meta and a reference model, and how the event-driven process chains (EPC) can be used to design process models.

51. Let’s get our hands to work…
June 2009 exam, question 5(b)

52. Introduction to Business Process Modeling
Part II
Introduction to Business Process Modeling

53. Compliance / Risk Management Enterprise Architecture
Process Modeling: Why?
Process Improvement
Compliance / Risk Management
Process
Documentation
Knowledge Management
Enterprise Systems
Process Cost Analysis/Simulation
Enterprise Architecture
Workflow Management
Document Management
Software
Evaluation/
Selection
© Michael Rosemann

54. Popular Process Modelling Purposes
Recker et al. (2005)

55. Process Modeling Languages
For business analysts
Business Process Modelling Notation (BPMN)
Event-driven Process Chains (EPC)
IDEF0, IDEF3
Flowcharts, data-flow diagrams (system analysis)
UML Activity Diagrams (system analysis)
For business programmers
Business Process Execution Language (BPEL)
Yet Another Workflow Language (YAWL)
And many, many more…

56. Modelling Purpose vs. Detail
Abstract Models
EPC, BPMN
Communication, simulation, activity-based costing…
Detailed Models
BPEL, YAWL…
Data types, conditions, data mappings, fault handling…
Integration, testing, deployment…

57. BPMN Business Process Modeling Notation
Inspired by cross-functional flowcharts
OMG Standard, supported by many tools:
TIBCO Business Studio
IBM Websphere Business Modeler
ARIS, Oracle BPA
Telelogic System Architect (now IBM)
ITP Commerce Process Modeler for Visio
Oryx (
Savvion, Lombardi, BizAgi, ...

58. BPMN from miles…
A process model in BPMN is called a Business Process Diagram (BPD)
A BPD is essentially a graph consisting of four types of elements (among others):

59. Example
An Order Management process is triggered by the reception of a purchase order from a customer. The purchase order has to be checked against the stock re the availability of the product(s) requested. Depending on stock availability the purchase order may be confirmed or rejected. If the purchase order is confirmed, the goods requested are shipped and an invoice is sent to the customer.

60. Order Management Process in BPMN

61. A little bit more on gateways …
Exclusive Decision / Merge
Indicates locations within a business process where the sequence flow can take two or more alternative paths.
Only one of the paths can be taken.
Depicted by a diamond shape that may contain a marker that is shaped like an “X”.
Parallel Fork / Join
Provide a mechanism to synchronize parallel flow and to create parallel flow.
Depicted by a diamond shape that must contain a marker that is shaped like a plus sign.

62. Revised Order Management Process

63. BPMN Exercise 1: Claims Notification process at a car insurer
When a claim is received, it is first checked whether the claimant is insured by the organization. If not, the claimant is informed that the claim must be rejected. Otherwise, the severity of the claim is evaluated. Based on the outcome (simple or complex claims), relevant forms are sent to the claimant. Once the forms are returned, they are checked for completeness. If the forms provide all relevant details, the claim is registered in the Claims Management system, which ends the Claims Notification process. Otherwise, the claimant is informed to update the forms. Upon reception of the updated forms, they are checked again.

64. Process Modelling Viewpoints
Who?
Organization
What?
Function
When?
Process
Which?
Data / Service / Product

65. Process Modelling Viewpoints
Functional perspective
What tasks/function are happening in the process?
Control-flow perspective
In what order do they occur?
Resource perspective (also called organisational perspective)
Who performs which activity?
Data perspective
What data are created/produced by the process?
“Process-modelling (*synonymous to process mapping) is an
approach, for visually depicting how businesses conduct their operations;
defining and depicting business processes, including entities, activities,
enablers and the relationships between them (Gill)
“Business process modelling is the documentation, analysis and design of the structure of a business or business sector, its aims and objectives, the mechanisms and resources used to deliver them; the constraints it must work within, and its relationships with the environment in which it operates” (DAVIES)
“A process model includes a set of activities arranged in a specific order, with the clearly identified inputs and outputs. The output may be either a product or service. Each activity in a process takes an input and transforms it into an output with some value to a customer. Ideally, every transformation occurring in the process should add value to the input and create an output that is useful to a downstream recipient”
(Zakarian and Kusiak)
IN GENERAL TERMS ..
Process modeling is an approach for visually depicting how businesses conduct their operations; defining and depicting business processes including entities, activities, enablers and the relationships between them
(Curtis, Keller and Over, 1992; Gill, 1999, p.5).

66. Organisational Elements in Process Models
Basic abstractions:
Resource (participant, actor, user, agent) A resource can execute certain tasks for certain cases. Human and/or non-human (e.g. printer).
Resource class: Set of resources with similar characteristics
A resource class is typically either a:
Role (skill, competence, qualification) Classification based on what a resource can do or is expected to do
Group (department, team, office, organizational unit) Classification based on the organization.

67. Roles vs. Groups groups roles © Wil van der Aalst Helger Triin Rainer
Jaana
Peeter
Ahto
Britt
Sven
Indrek
Joel
Secretary
Sales
Sales_clerk
Frank
Jan
Office_worker
Manager
Purchase
Tartu
Tallinn
groups
roles
© Wil van der Aalst

68. Resource Modelling in BPMN
In BPMN, resource classes are captured using:
Pools – independent organisations or organizational units (e.g. customer, supplier, East-Tallinn Hospital, Tartu Clinic)
Lanes – tightly connected roles or groups (e.g.

69. BPMN Elements – Pools
Pools represent business process participants. They are used to partition a set of activities.
Can be a business entity or a business role.
Sequence flows cannot cross the boundaries of a Pool.
Interaction between Pools are captured through Message Flow (dashed lines with an arrow)
A Pool will extend the entire length of the Diagram.

70. Order Management example (ctd.)
The Order Management process now includes the customer as a process participant...
The Order Management process is started when a customer places a purchase order. The purchase order has to be checked against the stock re the availability of the product(s). Depending on stock availability the purchase order may be confirmed or rejected. If the purchase order is confirmed, the goods requested are shipped and an invoice is sent to the customer. The customer makes then makes the payment.

71. Order Management BPD with Swimlanes

72. BPMN Elements – Swimlanes
Lanes represent sub-partitions within a pool. They are used to organize and categorize activities.
Horizontal vs. vertical
Meaning is not specified by BPMN, Lanes are often used for internal roles (e.g., Manager, Associate), systems (e.g., an enterprise application), an internal department (e.g., shipping, finance), etc.
Both Sequences Flow and Message Flow can cross the boundaries of Lanes.
Lanes can be nested:
E.g., an outer set of Lanes for company departments and then an inner set of Lanes for roles within each department.
A Pool will extend the entire length of the Diagram.

73. Order Management example (ctd.)
The process now includes two departments within the supplier organization...
The purchase order received by the Sales & Distribution department has to be checked against the stock. The order details are sent to the Warehouse department that returns an availability notification. If the purchase order is confirmed, the Warehouse department collects the shipping details from the customer and ships the goods. The Sales & Distribution department sends an invoice to the customer who then makes the payment.

74. Corresponding BPMN Model

75. BPMN Exercise 2: Lanes, Pools
Claims Handling process at a car insurer
A customer submits a claim by sending in relevant documentation. The Notification department checks the documents for completeness and registers the claim. The Handling department picks up the claim and checks the insurance. Then, an assessment is performed. If the assessment is positive, a garage is phoned to authorise the repairs and the payment is scheduled (in this order). In any case (whether the outcome is positive or negative), a letter is sent to the customer and the process is considered to be complete.

76. BPMN Artifacts
Data Objects are a mechanism to show how data is required or produced by activities.
Represent input and output of a process activity.
Annotations are a mechanism for the modeller to provide additional text information to the diagram reader.
Text annotations do not affect the flow of the process.
Groups are a visual mechanism to logically group diagram elements informally.

77. BPMN Connections
Associations are used to link artifacts such as text or data objects with flow objects.
Are depicted by a dotted line.
Can be directed or undirected.
They can be used to show inputs and outputs of activities.

78. Order Management example (ctd.)
Let’s have a look at some artifacts...
The Purchase Order document serves as an input to the stock availability check. Based on the outcome of this check, the status of document is updated, either to “approved” or “rejected”.
Include the relevant documents in the process model. Also, for visualization purposes, all parts of the processes that use or update the purchase order should be highlighted.

79. Order Processing Model with Artifacts

80. BPMN Exercise 3: Artifacts
The report related to the car accident is searched within the Police Report database and put in a file together with the claim documentation. This file serves as input to a claims handler who calculates an initial claim estimate. Then, an action plan is created based on a checklist available in the Document Management system. Based on the action plan, a claims manager tries to negotiate a settlement on the claim estimate. The claimant is informed of the outcome, which ends the process.
Please depict all relevant documents in the model. Also visualize activities that are performed by the claims handler.

81. Part III
BPMN Continues

82. BPMN Main Elements - Recap
Connections
Swimlanes
Flow Objects
Artifacts

83. BPMN Flow Elements – Recap

84. © QUT – BPM Research Group
BPMN Gateways
XOR-split (exclusive decision)  take one branch
XOR-merge  proceed when one branch has completed
AND-split (fork)  take all branches
AND-join  proceed when all incoming branches have completed
OR-split (inclusive)  take one or several branches depending on conditions
OR-join  proceed when all active incoming branches have completed
© QUT – BPM Research Group
3 May Slide 84

85. Example: XOR & AND gateways

86. Example: OR gateways

87. An alternative to “split” gateways: Conditional flows

88. BPMN Exercise 4
Map the following process fragment using OR-split, OR-join and/or conditional flows:
When a claim is received, it is registered. After registration, the claim is classified leading to two possible outcomes: simple or complex. If the claim is simple, the policy is checked. For complex claims, both the policy and the damage are checked independently.

89. Complex gateways
Sometimes, it is not necessary to wait for all active branches to complete:
In an order placement process, a quote is sought from two preferred suppliers in parallel. As soon as one of them provides a quote, the order placement process may proceed. The second quote, if any, is ignored.

90. Complex gateway example

91. Sub-processes
A task in a process can be decomposed into a “sub-process”.
Use this feature to:
Break down large models into smaller ones, making them easier to understand and to explain
Identify parts of a process model that should be:
repeated
executed multiple times in parallel
cancelled, or
compensated.

92. Sub-processes: example

93. Fragment of the SCOR model
Process hierarchies
Fragment of the SCOR model

94. Block-structured repetition
PO Protocol taken from
A customer sends a purchase order (PO) and expects to receive a “PO response”. In the “PO response”, each line item is marked as “accepted”, “rejected” or “pending”. If some line items are left pending, the customer expects to receive a “PO Update” later. Again, this “PO Update” marks line items as “accepted”, “rejected”, or “pending”. If some line items are left pending, the customer waits for another PO-Update, and so on until no line items are left pending.

95. Block-structured repetition: example

96. Interlude: Arbitrary cycles
Another way of capturing “repetition” is through “cycles”: flows that go back to an “earlier” task.
Choice between looping and cycles is often a matter of taste, but if it is possible to meaningfully cluster the activities to be repeated as a sub-process, looping is more suitable.

97. Exercise 5: Repetition/cycles
After a claim is registered, it is examined by a claims officer. The claims officer then writes a “settlement recommendation”. This recommendation is then checked by a senior claims officer who may mark the claim as “OK” or “Not OK”. If the claim is marked as “Not OK”, it is sent back to the claims officer and the examination is repeated. If the claim is OK, the claim handling process proceeds.

98. Event types

99. Event types (cont.)

100. Advanced event types

101. Modelling with events - Example
A PO handling process starts when a PO is received. The PO is first registered. If the current date is not a working day, the process waits until the following working day before proceeding.
Otherwise, an availability check is performed and a “PO response” is sent back to the customer.
Anytime during the process, the customer may send a “PO change request”. When such a request is received, it is just registered, without further action.

102. Modelling with events - Example

103. Event-based decision
With the XOR-split gateway, a branch is chosen based on expressions that evaluate over available data
 The choice can be made immediately after the incoming flow fires
Sometimes, the choice must be delayed until something happens  choice is based on a race between events
This is why BPMN distinguishes data-driven and event-driven XOR-splits

104. Event-based decision – Example
After a purchase order is sent, a customer can receive either a “PO Response” or an error message. It may happen that no response is received at all. If no response is received after 24 hours or if an error message is received, the purchasing officer should be notified. Otherwise, the PO Response is processed normally.

105. Event-based decision – Example

106. Exercise 5
In the context of a claim handling process, it is sometimes necessary to send a questionnaire to the claimant to gather additional information. The claimant is expected to return the questionnaire within five days. If no response is received after five days, a reminder is sent to the claimant. If after another five days there is still no response, another reminder is sent and so on until the completed questionnaire is received.

107. Exception handling
Exceptions are events that deviate a process from its “normal” course
Handling exceptions often involves stopping a sub-process and performing a special activity
Three ways of stopping a sub-process in BPMN:
Simple stop: Stop a sub-process and start an exception handling routine
Transaction cancellation: Stop a transaction, release resources reserved during the transaction and notify any partners involved in the transaction
Compensation: Stop the sub-process, compensate any sub-sub-process, and run a compensation routine

108. Exception handling – Example
Consider the previous “PO Change Request” example with the following variation: When a PO Change Request is received, it is first checked to determined if it can be accepted. If it is accepted, any processing related to the PO must be stopped. The PO change request is then registered. Thereafter, the process proceeds as it would after a “normal” PO is registered.

109. Exception handling – Example

110. Exercise 6 Extend the claim handling process as follows:
After checking the insurance policy, a possible outcome is that the insurance is invalid. In this case, any processing is cancelled and a letter is sent to the customer. In the case of a complex claim, this implies that the damage checking is cancelled if it has not yet been completed.

111. Modelling conventions
Why use modelling conventions?
To reduce variety
Increase the comparability of models
Support the analysis (with clear syntax, sematic and layout standards)
Acceleration and simplification (just start and ‘Go’) …
Different types of modelling conventions?
Organisational level
Project level

112. Modelling Guidelines Typical categories of guidelines:
Naming conventions for processes, tasks and events
Guidelines for layout and usage of tasks, events, lanes and pools
Process elements “to be avoided”

113. Naming conventions for processes and tasks
Names should be 1-3 words long
Begin with a verb followed by business object name and possibly an adjective (e.g. Issue Driver Licence, Renew Driver Licence via Offline Agencies)
Avoid generic verbs such as Handle, Record…
Avoid prepositions (to, from, for)
Avoid naming business areas which are already named in a lane/pool

114. Verbs to avoid
Update, Create, Read, Delete, Record, Download, Transmit: Too technical. Try Amend, change, generate, retrieve, remove, capture, register, forward
Send: Could merely be a message flow from one business process to another.
Process, Handle, Manage: Too generic, would not reflect the specific objective of the process. Try disseminate, distribute, etc.
Input: Why do we have to input data? Maybe there is an opportunity for process optimisation here…

115. Naming conventions for events
For start/intermediate message events: indicate what is being sent or received (e.g. Invoice Received)
For end message events indicate what is being sent (e.g. Order Sent)
For time events, indicate frequency or deadline, e.g. Monthly, Weakly, Invoice Due.
Event names (except for timer events): should begin with a noun followed by a past participle

116. Usage and layout guidelines
A task must always have at least one incoming and one outgoing flow
Input flows should come from the left or from the top
Output flows should come out of the right or the bottom
A process model should contain at least one pool
Pools must be laid out horizontally
A pool may appear multiple times in a diagram to improve presentation, but the name of the repeated pool must be italicised.
Use link events to split large diagrams across multiple pages

117. Homework (10 points) See homework in course web page:
Can be completed in teams of up to 4 members
To be returned on 11.03

118. In preparation for next session
Read the Harvard Case Study “Pharmacy Service Improvement at CVS”
Prepare answers to the following question:
What percentage of defecting customers in 2000 are light users? Same question for heavy users.
What is the volume of scripts lost annually to light defectors? Same question for heavy defectors?
How many scripts are filled annually by CVS pharmacies?
What is the average revenue per script?
What revenue improvement could be obtained from a reduction in defection rate of 60%?

119. References and acknowledgments
Examinable reading:
Michael Hammer: “Deep Change”
Suggested readings (non-examinable)
M. zur Muehlen and J. Recker: “Process Discovery on a Rainy Day”.
M. Rosemann. “Pitfalls of Process Modeling”. Business Process Management. Journal, Volume 12, Number 2, 2006 , pp
Other resources are listed on the course Web page