Business Process Management

Business Process Management
Process Modeling and Analysis Workshop Using BPMN Instructor: Laura Graham Wi – Fi: Madison Room 1 / Madison Room 2 Password: AnchorT3ch

Introductions Name, title, company
9/17/2018 Introductions Name, title, company Any background in process mapping / BPMN? What process modeling tools do you use? What do you hope to get out of this class?

Objectives At the end of this presentation, you should know:
How to utilize BPMN for better process design and analysis Considerations in developing individualized / corporate standards to process models Factors to consider in choosing process modeling tools How process models documented in BPMN enable process faster technology-based improvements

What is BPM

What is BPM Is a management discipline enabled by technology
Continuously monitor and improve business process Performance Visibility Agility Facilitate business innovation Addresses end to end work delivers value to customer distinguishes between processes, sub-processes, activities, and functions Requires organizational commitment Source: BPM Common Body of Knowledge – Association of BPM Professionals Software PURPOSE OF SLIDE: Level set on what is BPM and the fact BPM includes BPMS technology – is not just technology and is not just six sigma, but both aspects are included. From the ABPMP Common Body of Knowledge: • BPM is a management discipline and a set of enabling technologies • BPM addresses end-to-end work and distinguishes between sets of subprocesses, tasks, activities and functions • BPM is a continuous, ongoing set of processes focused on managing an organizations end-to-end business processes • BPM includes the modeling, analysis, design and measurement of an organization’s business processes • BPM requires a significant organizational commitment, often introducing new roles, responsibilities, and structures to traditional functionally oriented organizations • BPM is technology enabled with tools for visual modeling, simulation, automation, integration, control and monitoring of business processes and the information systems which support these processes Most large organizations have a significant investment into a number of legacy systems. These systems are typically designed to support specific functions such as manufacturing or sales. In order to manage the end-to-end work involved in business processes, a BPMS must be able to integrate with legacy systems across the organization in order to control work, get information, or measure performance. A variety of new technologies have emerged to simplify integration efforts. A common framework for how these technologies are deployed is also being adopted and is most often referred to as a Service Oriented Architecture (SOA). The technology industry appears to be standardizing on a specific set of open technologies commonly referred to as “web services.” By leveraging web services in a SOA, organizations can build ABPMP BPM CBOK® Version 2.0 © 2009 ABPMP All rights Reserved Page 26 and manage end-to-end business processes across organizational silos and their legacy systems. Many modern BPM technology solutions include the capability to integrate legacy systems through standards based interfaces while providing the tools to automate and orchestrate work across the entire organization.

Business Process Management An Approach to Management
Improve profitability Focus on corporate throughput Reduce non-value add activity Collaborate improvements between IT and business Ensure that business units and systems are aligned Improve understanding of business Exploit intellectual property Identify means of differentiation System: a regularly interacting or interdependent group of items forming a unified whole What does this mean to you: Improve profitability = better corporate results = better bonuses BUT MORE IMPORTANTLY: Richer lives! Who wants to get out of bed on Monday and go to work? Who wants to use Excel to perform v-lookups that everyone knows can be automated? Who would rather perform value add activity like analysis that can’t be automated? BPM is making sure people get to do the fun stuff and WANT to work!

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How Do you Do BPM? Plan Identify business objective and goal Clarify external and internal customer requirements Analyze Understand current process Document “as-is” Design and Model Utilize process improvement methodologies Develop “to-be” Simulate Implement Change Management, IT deployment, re-organization Monitor and Control Refine Five easy steps – similar to DMAIC, or any other process improvement steps. The devil is in the details. HOW do you do each of these steps? Which is the most challenging of these in your organization? Do you think all steps are necessary? Which are often “forgotten” in your organization? Which process improvement methodologies do you use? How do you think they differ or support “BPM”? Insert PowerPoint Presentation Name Here

Process Innovation: Led by Business or IT?
9/17/2018 Process Innovation: Led by Business or IT? Sometimes, a business unit knows their requirements upfront. However, it’s fairly typical for a business user to say “I need a new XYZ system” and come to IT with some requirements or ideas around that system. Understanding what the business is really trying to accomplish with a new system is not always so clear cut. When and MS Windows became widely adopted, people started to grasp that could speed up communication and electronic forms could reduce data entry errors, and many people put their paper forms into electronic format and followed the same process as before, missing an opportunity to take advantage of what computing technologies were really capable of. Processes can be electronic, but still be highly manual. Can you think of any examples at Navistar today? Understanding technology capabilities and how they can be used to help businesses meet their needs requires business users and IT to work together. Insert PowerPoint Presentation Name Here

How Do Business and IT Work Together?
Business Users IT Users Application / IT Development Meet Business Requirements Educate on Technology to help improve business processes Manage / Improve IT processes “Run” and grow the Business Utilize Information Business Process Analysis Identify new business opportunities Process Metrics Process Improvement Methodologies Change Management Process Mapping BPMN Data Modeling Workflow SDLC UML SOA BPEL JAVA Process modeling is a way for business users to explain business requirements to IT. The focus of the process model should be on the “what why” and not focus on the actual tools used today. Data modeling is not something the business generally does – from a UML data diagram standpoint – but the business does care about data in the form of reports, and owning what the data definitions are. Workflow is a tool that is starting to span both groups, as the millennial generation joins the workforce – some are familiar with using MS Sharepoint and can create their own workflows without help from IT. Insert PowerPoint Presentation Name Here

Business Process Management Supporting Technologies
9/17/2018 Business Process Management Supporting Technologies Business Process Analysis Modeling: Graphically represent process for analysis Simulation: Plays what-if scenarios Business Intelligence (BI) Metrics, information from historical viewpoint Business Activity Monitoring (BAM) Metrics, information on what’s happening now Workflow: Automates hand-offs in a manual process Business Rules Management systems: Extrapolates business rules from process and IT code Business Process Management Suites (BPMS): Supports all aspects of process improvement: includes all of the above plus IT service oriented architecture (SOA) Improve utilization of corporate assets BPM doesn’t require technology, but BPM technology / applications have evolved to make BPM (as a methodology) faster. For example: In traditional approaches, there can be the non-value add activitie of redrawing process models from different perspectives, in different tools, using different notations. Insert PowerPoint Presentation Name Here

Optimized Core Enterprise
9/17/2018 Maturity Model Gartner Enterprise Architecture Stages Business Silos Technology Standards Optimized Core Enterprise Business Modularity

Business Process Competency Center
9/17/2018 Business Process Competency Center

Process Mapping Why Process Map Types of Process Maps Why Standard Notation How to Approach Process Mapping Insert PowerPoint Presentation Name Here

9/17/2018 Why Process Map External Requirements: ISO: Process exists and management for ensuring it is followed and for improving process metrics SOX: “Management understands the process, including the IT hand-offs, well enough to understand the point at which a mis-statement could arise” [and works to reduce those risks] Other external auditors; SEC, Federal Reserve, EPA, etc. Internal Benefits: Training of new employees Prioritization and alignment of improvement initiatives – help build the business case Scope improvement projects – develop project milestones vs. capital appropriate needs Just because a process isn’t formalized or mapped doesn’t mean one doesn’t exist If there is not a clear process, there are usually un-intended consequences Process Mapping has some external roots – ISO and SOX have references to process. Process mapping is also a tool to provide direct business results – it helps managers identify areas to improve bottom line, and can help in defining business requirements of an IT project. Just because a process is not defined, does not mean one isn’t followed. Without a conscious pre-defined process, unintended results can occur. Example: you oil the squeaky wheel. One real-life example: no formal process to manage IT assets. Only certain people call the help desk to request new laptops and their managers approve. Certain protected groups may be less likely to request / be vocal, resulting in unintended discrimination and law suits. Insert PowerPoint Presentation Name Here

Focusing on the process Leads to Innovation
9/17/2018 Focusing on the process Leads to Innovation Focus on redesigning a tool: I need a database Focus on limited actions I need a method to record XYZ Focus on actions and results I need a method to communicate status to management OR I need a method to meet records and retention policy Example: Henry Ford used to say “If I had asked people what they wanted, they would have said faster horses.” That’s only true if he asked WHAT they wanted, or WHAT tool. If he asked what they wanted to DO, they might have said “travel longer distances in a day” or “get to school faster”. Focus on what you want to ACHIEVE and the verbs to get there, Before you focus on the tools to use

9/17/2018 What is a process? Process: Series of activities that transform something (an input) into something else (output) Means of delivering customer requirements Living entity that changes over time Three types: Operational (or executional) Managerial (governance) Planning (strategy) A process is a series of activities that transform something (an input) into something else (output). Hopefully the resultant output is what was expected or anticipated, although some processes do produce errors or unintended outputs. A process map is a visual depiction of the process. Usually the term “process map” refers to a flow chart of the activities that transform an input into an output, but there are many different types of “process maps”. A list of processes used in businesses has been defined by APQC (American Productivity & Quality Center): ww.apqc.org Insert PowerPoint Presentation Name Here

What is on a process map? Activities Decisions Dependencies Milestones
9/17/2018 What is on a process map? Activities Decisions Dependencies Milestones Errors Performers Systems / Tools Inputs / outputs Metrics The modeler makes decisions about the purpose of the model The interpretation of the model is always up to the reader All models need to contain a certain amount of rigor to be meaningful BPMN is capable of representing many different levels of details and different sorts of diagrams for different purposes

Types of Process Maps – Business Analysis
9/17/2018 Types of Process Maps – Business Analysis Diagram When to Use SIPOC (Supplier, Inputs, Process, Outputs Customer) High level – identify scope of process, identify sub-processes Show customer / supplier perspective Cycle time is not important Value Stream Mapping Typically used for logistics, supply chain, service oriented processes Single flow processes Identify waste (non-value add) Data on process metrics available Business Process (Flow Diagram or Activity Diagram) Improving business processes: reduce non-value add Business Process Flow Diagram with Swim Lanes When more than one group is responsible for different parts of process When responsibilities change / organization alignment needed Choreography / Collaboration High level, end to end process analysis Managing white space between processes Depicts how processes relate to each other – through messages, or data There are many different types of process maps, each with different focus. Examples of these types of maps, with directions on how to create them are included in the appendix. SIPOC is useful at initial stages of investigation, and helps define the process boundaries. However, the “process” remains a black box or at most gets expanded into high level sub-processes, and doesn’t provide detail for identifying non-value add activities, improving cycle times, or understanding how users are impacted when the process itself changes. Value stream mapping is a common tool in Lean analysis. It is basically a SIPOC map, with added information on metrics. It is particularly useful in logistics or other service oriented processes with single flows. Document maps are useful when designing IT interfaces, but don’t provide detail to do process improvement. If your goal is to automate data capture, this is a useful map. If your goal is to enable process improvement, this does not provide enough information. Flow diagrams show detail processes, but don’t explain roles or responsibilities. To understand the interfaces and hand-offs, as well as identify training and change management aspects of a project, swim lanes with roles are needed. Swim lanes take flow diagrams one step further, showing which resources are responsible for each task or decision within a process. References: Roger Burlton “Points of View” Additional Sources: wikipedia, isixsigma.com; Ben Graham corporation ( BPMN is capable of representing many different levels of details and different sorts of diagrams for different purposes.

Types of Process Maps – Systems Analysis
9/17/2018 Types of Process Maps – Systems Analysis Diagram When to Use Systems Diagrams Data Flow Systems analysis or data management Depicts flow of data within systems, where data inputs and outputs occur Order, sequence of flow, cycle time is not important State Diagrams Used in systems analysis Depicts behavior of a system, particularly in response to external events Class Diagram Used in object oriented system design Depicts relationship of objects within a system Represents main business objects and/or interactions in a system Use Case When a system is being designed Depicts who can do what with a system, how system responds Testing of systems is needed Entity Relationship Diagram When a system or database is being designed Depicts database schema There are many different types of process maps, each with different focus. Examples of these types of maps, with directions on how to create them are included in the appendix. SIPOC is useful at initial stages of investigation, and helps define the process boundaries. However, the “process” remains a black box or at most gets expanded into high level sub-processes, and doesn’t provide detail for identifying non-value add activities, improving cycle times, or understanding how users are impacted when the process itself changes. Value stream mapping is a common tool in Lean analysis. It is basically a SIPOC map, with added information on metrics. It is particularly useful in logistics or other service oriented processes with single flows. Document maps are useful when designing IT interfaces, but don’t provide detail to do process improvement. If your goal is to automate data capture, this is a useful map. If your goal is to enable process improvement, this does not provide enough information. Flow diagrams show detail processes, but don’t explain roles or responsibilities. To understand the interfaces and hand-offs, as well as identify training and change management aspects of a project, swim lanes with roles are needed. Swim lanes take flow diagrams one step further, showing which resources are responsible for each task or decision within a process. References: Roger Burlton “Points of View” Additional Sources: wikipedia, isixsigma.com; Ben Graham corporation ( Software should be a tool to help users do their job better. This requires that we work hard to understand their job. We need to gain understanding beyond the tasks they must complete and instead strive to understand their goals… Replacing a file cabinet with a computerized file cabinet is not application development, it's called shifting the burden. – Joseph Reddy “If business processes don’t change when new technology is installed, the investment has less value.” - Ross, Weill, Roberston Insert PowerPoint Presentation Name Here

Why standard notation? 9/17/2018 The modeler makes decisions about the purpose of the model The interpretation of the model is always up to the reader All models are wrong – some are useful. - Charles Box. As mentioned earlier… without a process you usually get unintended consequences. That applies to process mapping as well. Everyone wants to do great, and most people get what a process map is to some extent. The problem is, there are various types of process maps and various notations for doing each type of process map. Without a standardized approach to process mapping, the results are very creator-specific. Sometimes you get a Value Stream Map, sometimes you get a document map, and sometimes you get a swimlane flow diagram. Even if you get the expected process map type, you can get varying degrees of detail and completeness. Sometimes only the happy path is shown, sometimes you only get sub-processes modeled, not specific tasks. This is not to say that there isn’t a time and a place for each of these process maps or levels of detail, just remember for whom and why you are process modeling before starting… Which asks the questions, what types of maps are there, and when should they be used?

9/17/2018 Why Standard Approach? Defining business requirements, or communicating them so that everyone understand them, is often the hardest part of any project. Insert PowerPoint Presentation Name Here

Why standard notation? + What is the difference between the diagrams?
Do Work Do Work Do Different Work Do Different Work Do Other Work Do Other Work + Do Still More Work Do Still More Work Do Work Do Work I do work, do other work, and do still more work. And then I do different work. Which diagram best represents this narration by the SME? Sequence work should be when an output of one task is required for the next; when a single person is doing work and never varies the order. Do Different Work Do Other Work Do Other Work Do Different Work Do Still More Work Do Still More Work

Benefits of a standard notation
9/17/2018 Benefits of a standard notation Quickly and clearly communicate: Picture is really worth 1,000 words Reduces ambiguity Re-use or reference other process maps to get “big picture” It makes you think Assists in process analysis Question English (you know what I mean) Enables faster automation Link between process model and IT code First step in utilizing BPMS tools Establish a basis for re-usable technology Insert PowerPoint Presentation Name Here

Process Modeling Notations According to ABPMP CBOK
BPMN Flow charting – ANSI standards – loosely defined Swim lanes – Rummler Brache Event Process Chain (EPC) – activity diagram [UML] or ARIS - syntax varies Value Chain – VRM notation, SCOR UML – activity diagrams IDEF-0 LOVEM-E (IBM process methodology) SIPOC Systems Dynamics Value Stream Mapping (TQM / Lean) 9/17/2018

Notation Options – Why BPMN?
9/17/2018 Notation Options – Why BPMN? Standard Use Pros Cons No standard Any Easy for creator to do Adaptable to any tool Readers may have difficulty following what’s happening Not readily automated Navistar Standard? Can be designed for tools already in-house Time to develop and gain buy-in Limited ability to model reality (exceptions, interruptions) Graham Process Methodology Business flow diagrams Swim lanes Data flow “Industry standard” Requires specific proprietary SW Outdated? Limited ability – Focused on artifacts IDEF0 Data flow / Document Maps: Tracking information in/out of process Processes with clearly defined “rules” Industry standard Supported by wide variety of tools Technically detailed – confusing to business Limited to describe functioning aspects of systems, not business processes UML Document software systems / Data flow / Document Maps Not readily understood by business BPEL Process “Execution” Modeling computing environment with web services Enables process automation BPMN Business flow diagrams / Swim lanes Executable processes Business and IT oriented Still evolving There are many different options for a standard notation. We could create our own Navistar standard, as many have attempted to do. When you are modeling a process map, how would you show what starts the process (A phone call / is received; Batch job runs; User accesses a system in the course of their day)? How many processes do we have in Navistar stay on the happy path? How do you model the exceptions? What happens if : An error occurs An order change request is received A system times out or crashes An issue needs escalated to a manger If you wanted to, how would you simulate your to-be process to determine how many people would be needed to support an up or down economy? How would you automate your process (i.e, develop a workflow system or integrate with financial tools to meet SOX requirements or provide business intelligence)? What tools would you use? How would we be able create our own internal standard that met the needs of all organizations and was able to model all aspects just mentioned? How would we educate and train people on it? There are many alternatives already created that seek to meet the broad needs of all levels of an organization. BPMN in particular focuses on business and IT needs, is supported by a wide variety of tools, and enables modeling of real life, non-happy-path examples in a concise format. But like anything new, it takes some time getting used to. References: Graham Process Notation: IDEF0: wikipedia.org UML vs BPMN links:

Approaches to Process Mapping
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Approaches to Capturing “As Is”
Top Down (useful when starting with management approach) Start at high level overview of processes Drill down into detail Bottom Up (useful when one group performs many unrelated tasks) Begin describing at detail level Group tasks into sub-processes Event Partitioning (useful when many groups perform work) Identify events or triggers to begin work Walk through processing of events (Follow the event, or follow the work) Ask where is work created Where does work go When does it “change state” What approaches do you use? What has worked when? Insert PowerPoint Presentation Name Here

Process Modeling Best Practices?
9/17/2018 Process Modeling Best Practices? Define scope – at the high level – 1 hour – Estimate the Discovery Project What starts / triggers process? What is end result? What groups are involved? Where are they? Who manages them? What is feedback from end-customer? What are their goals? What IT systems do they use? Document As Is – bottoms up approach – depends on scope – Estimate the Implementation Project Start with SMALL groups at local level (1-5 people) Review process documentation at local level Connect the Dots to produce an ACCURATE big picture Process Workshop: Broad group workshop – Used for Change Management Define goals – align vision Present any as-is metrics Review As Is: Clarify and discuss – park ideas to improve until walk through complete Brainstorm: to-be process Prioritize: What are process goals Discuss with IT: what tools do we already have that can achieve process objectives? What is on watch list? Develop To Be / Project Scope and Milestones Build business case based on as-is Whether you start top down or bottoms up depends on the culture of an organization. It is usually an iterative approach. Many organizations choose to do “process workshops” where a team of people get together offsite to define a process and discuss improvement options. This can work, provided you have the right SMEs involved, which usually requires some meeting with managers at a higher level to determine scope and identify participants. Some risks with this approach include: if many different locations do things slightly different, teams can either get to be too large OR make assumptions that aren’t necessarily true; the participants might not know the details required – and discussion ensues for smaller groups, leaving out broader team – you can lose participant interest. Sometimes spending more time one-on-one from a bottoms up approach to draft a detailed big picture before having the group review can yield better discussion and input during the bigger group discusions. The trade-off is that this can take time upfront as process analyst / process specialit prepares the documents. A lot depends on the SME knowledge base and culture of the group as to what works.

“As Is” Approaches Start with “happy path”
9/17/2018 Start with “happy path” Include major decisions / check points as normal process What business rules / policies are used to direct process flow? Add exceptions and errors - At each task ask: What kinds of errors occur? What causes them to occur? What do you do when they occur? What happens if information isn’t available for a particular task? When are there exceptions to the rules? What else does a participant do in a given week? What causes these tasks to be done? The Rule applies to the end result of the process. Regularly recurring exceptions depends on the scope and timeline of a process. For example, if your process is the annual budgetary planning session, something that occurs once in ten years may be a “regular” occurrence. However, if you are processing 1000s of transactions on a weekly basis, something that occurred once last year might not be relevant. When people bring up errors and exceptions, consider the scope / cycle time / recurrence of the process, and when the issue occurred. Ask whether or not it was corrected, and how often it occurs. Regarding “what else a participant does in a week” can be relevant… be careful not to sound like you are implying they don’t get enough work done, make sure they understand you are asking to determine what might be related that may or may not be related or in scope. For example, the process might be around the processing of transactions, but every Friday, they go through their inbox to review s and enter into a spreadsheet summary to record and report on process metrics – it’s not directly related to the executional process, but is related to the managerial processes and gives insight into the process metrics and deficiencies that could be addressed through BPMS tools. Represent all “Regularly Recurring” instances Insert PowerPoint Presentation Name Here

“As Is” Interview Questions Link Between Process and Data Models
9/17/2018 Discuss business rules: How do you know? On what basis are decisions within executional process made? Consider metrics: What are customer expectations – what are they willing to pay for? What decisions do managers need to make? Staffing / resources / investment in new capacity New products / services to offer Pricing Etc. What metrics do managers use (or want to have) to manage the business? Is there an existing SLA? When should managers be notified of particular instances? How do participants know if they are successful at their job? What does the customer care about? Status updates, etc… Business rules are sometimes hard coded into systems, and it becomes uncertain why we do what we do. Questions need to be asked at gateways in the process – the question is whether task exists to “check business rule” or “update business rule” at some point in the process, or whether decisions are made automatically. Insert PowerPoint Presentation Name Here

Translating [English] into Process Models
9/17/2018 Translating [English] into Process Models Activities = verbs Inputs / Outputs = Direct objects “How do you know” = Business Rules Conjunctions = Dependencies Be wary of: “And” vs. “And Then” “If” “Else” “Sometimes” Numbers and Codes – usually equal business rules Reference to any IT system – what is the business verb?

Process Mapping Exercise
9/17/2018 Process Mapping Exercise A chef selects and reviews a recipe and then checks the pantry to confirm all ingredients are in-house. If any ingredients are missing the chef can either go back and select another recipe and repeat or go to the store to purchase missing ingredients. If / when all ingredients are in-house, the chef cooks the recipe for each customer, plates the dish and serves. Identify the process activities from chef’s perspective Document the order of activities HOW MANY ACTIVITIES ARE THERE? How many activities did you come up with? Why are there differences? We all saw the same English, the same verbs and conjunctions… Are the differences chalked up to level of detail? Tribal knowledge (some people add additional verbs based on their own experience with this process).

To What Level of Detail Map to the level of detail Appropriately matched to the business context At which you can see areas for improvement Where a new employee could understand how they do their job to contribute to corporate goals Levels of Detail: Process = series of actions towards an end goal – Has specific start / trigger and end result ~1-30 days, could be more, depends on process Sub-process = compound activity Modeler’s choice “art” Company guidelines for re-usability ~1-14 days, could be more, depends on process Task / Activity = piece of work to be done Specific verb – can’t be broken down further Is NOT a work instruction ~0-4 hours to complete, depends on process Expect to include between 8 and 50 elements on a diagram Insert PowerPoint Presentation Name Here

To What Level of Detail On One Page?
Strong Cohesion and Loose coupling Miller’s Law: 7 ± 2 So 8 to 30 elements on a page can be a lot. How you break your process model up again depends on an individual preference. Some people like to see everything on one page, while others are overwhelmed and tune out. There is both some science and art involved in the process. If you find yourself getting a lot of detail on one page that becomes difficult to follow, consider grouping tasks into sub-processes. For example, if you had ~35 elements on a page, that had some sequence flow or connector lines resembling this diagram, how many groups do you see? Some people see 2, some people see 6 or more. That is part art. The philosophy is that we have a tendency to “snip” some lines because they are less tightly connected between elements. This is the concept of strong cohesion and loose coupling. If you want to clean up your diagram – look for lines that have loose coupling, and consider putting the strongly cohesive elements. However, be aware of Miller’s Law, which means that we as humans tend to feel cheated or annoyed if we have too few or too many choices. For example, if you only had two subprocesses on a page, and made the user drill down 7 times to see some detail, then go back up to high level and drill down again, you would lose the continuity of the process. Insert PowerPoint Presentation Name Here

9/17/2018 To What Level of Detail? To What Degree of Accuracy? “When we don’t understand the details it’s easy to miss inefficiencies. we may be enabling subversive or counterproductive activity.” “Detail does not go away because it is ignored. If we intend to engineer our processes we need the detail” “Detail charts may be intimidating at first glance. However, a chart is a reflection of the process. If the chart is complicated, the process is complicated.” – Ben Graham, Detail Process Charting It is difficult to discuss the To-Be using a high level diagram. The objective of doing the as-is and to-be process map is to understand what is going to change, and how it impacts the users. For example: When looking at manufacturing, the processes might be “linesets jobs”. A sub-process might be “confirms job status” or while the individual activities or tasks within these sub-processes are as detailed as “Runs Access query” and “Runs lineset condition report”. How would the lineset process be impacted if a new scheduling system or new MRP system were introduced? How might it be improved? It is difficult to determine what the As-Is and To-Be implications are without getting into the task level. You can’t get to “what is changing” without getting into detail, but you don’t to get so specific the process model needs changed when new technology is introduced. The process maps therefore need to be task specific, but associated to an existing system. This is especially true when thinking about modeling for execution. Insert PowerPoint Presentation Name Here

Process Hierarchy Laura Grahams recommendations
Level 0 – Enterprise Process Model: Visual depiction of ALL value chains used throughout the enterprise and relationships Identifies core processes Used in corporate governance / funding approvals – prioritization of projects across value chains Otherwise known as: Enterprise Reference Model, Process Framework, Business Process Architecture Level 1 – Value Chain Provides value to end-customers Is a chain of processes: Activities within value chain have independent triggers that require coordination to provide value. Enables: strategic planning – prioritization of projects within value chains Otherwise known as : Value Stream, High Level Process; Core Processes Level 2 – Scenario: Is a value chain for a specific business unit, product/service, and geographical locations (of customers and producers) Used to define operating model: when to differentiate or standardize on process activities Level 3 – Process Sequence of repeatable activities, decisions, and events Enables: Process design and assessment Otherwise known as: business flow; “low level of process” in process framework” (VRM level 3, APQC level ¾) There is no industry standard definition for levels of detail. If you talk to the big consulting firms, they will all have different levels with different meanings. Some use 4 levels, others use as many as 12 or 13. Be careful to ask what level is needed… and be way of anyone who stays at “the high level” or level 1. This is usually too high level to mean much, and is used only to show relationships. Industry standard process frameworks generally do a good job defining the high level, and you shouldn’t need to pay for level 1 process models. Here is an example of how I might define the levels of detail. We’ll get into how these levels are used in subsequent slides.

Process Hierarchy Level 4 – Activity / Sub Process Level
Sequence of repeatable activities, decisions, and events Completed by single a department Finer grained than process – sub-processes completed within 2 weeks time period (usually less) Enables: Process design and improvement – discuss sequence of activities, decisions, causes / results of events Otherwise known as: Activity, Tasks, Function, Service, Sub Process Level 5 – Finite Tasks No further break down of activity Completed by a single user Finer grained – activities completed within 24 hours or less (usually minutes). User tasks all completed within a single “screen” or “session” of an IT application / system. Enables: Process design and improvement – identify where inputs / outputs / rules / etc. are created and used Otherwise known as: Activity, Tasks Level 6 – Finite Tasks for Execution Activities are associated to data objects with specific data fields identified Business rules are documented and conditions associated with gateways Systems are identified for services / integrations Level 7 – Executable Process Map in BPMS Level 8 – Work level instruction (not really a process) Activity detail changes with tools, system, or application Enables: User education of new tools used to improve process performance Otherwise known as: Training details, user guide; “how” things are done

Thoughts for defining tasks within an executable environment
9/17/2018 Thoughts for defining tasks within an executable environment Tasks are always completed by a single user Discuss with tool vendors what options exist for re-assignments Tasks should include all common exceptions paths that involve multiple roles – each role has a different task Tasks may include more than one user interface or “screen” # of screens based on amount of data required to complete a task, UI standards, BPMS UI toolkits SLAs and customer experience should be considered Discuss when information becomes available and consider whether additional tasks make sense

Process Framework Is a view of business process architecture
9/17/2018 Process Framework Is a view of business process architecture Processes Inputs and Outputs (Data) Key Process Indicators (Metrics) Provides common definition of processes Is a method for organizing and cataloging processes Enables benchmarking across companies Helps prioritize process improvement efforts and Capital Expenditures

9/17/2018 Process Frameworks APQC PCF: American Productivity and Quality Center Process Classification Framework e-TOM: Enhanced Telecommunications Operation Map SCOR: Supply Chain Operations Reference-Model Plan, Source, Make, Deliver, and Return VRM: Value Reference Model Eclipse Modeling Framework (EMF): Modeling framework and code generation facility based on structure data models. JAVA, UML, XML ITIL: Information Technology Infrastructure Library TOGAF: The Open Group Architectural Framework DODAF: The Department of Defense Architectural Framework

The Value Chain Group’s VRM
Plan Govern PV Identify Value Chain Requirements PV1 Assess Value Chain Resources PV2 GV Set Strategy & Vision GV1 Set Performance Expectations GV2 Set Information Policy GV3 Set Financial Policy GV4 Set Asset Policy GV5 Value Chain Functional Requirements Product Lifecycle Plan Corporate Performance Targets INPUTS Corporate Strategy Functional Capacity Market Dynamics External Factors Performance Feedback Solution Performance Feedback VRM ROI, Validated Strategy, Corporate IT Licensing Agreements Funding Request Performance Targets Requirements, Value OUTPUTS Resource Availability Vision & Mission Statement Business Context SWOT Analysis Benchmark Guidelines Improvement Methods ValueCard Template Rules, Information Technology IT Portfolio IT Change Guidelines Strategy, Information Technology Strategy, Finance Rules, Finance Budgets Resource Allocations Personnel Availability Asset Policy Align Value Chain Resources PV3 Communicate Value Chain Plan PV4 Set Personnel & Ethical Policies GV6 Set Extended Enterprise Policy GV7 Set Business Change Guidelines GV8 Set Compliance Policy GV9 Set Life Cycle Policies GV10 Performance Metrics Strategy, Financial Strategy, Value Chain Strategy, Organizational Strategy, IT Personnel Requirements Corporate Value Statement Social & Ethical Policy Training Material Internal Factors (Cultural) Change Prioritization Matrix Project Guidelines International Law Contract Precedence Governmental Regulations Strategy, Functional Lifecycle Financial Impact Doc Portfolio Objectives Functional Business Objectives Organizational Structure Guidelines, Partnership Guidelines, Due Diligence VRM Model Process Documentation Change Guidelines, Corporate Business Framework Legal Guidelines Corporate Policies Strategy, Organizational Lifecycle PP Gather PD Requirements PP1 Assess PD Resources PP2 GP Govern PD Rules GP1 Govern PD Process GP2 Govern PD Information GP3 Govern PD Treasury GP4 Govern PD Assets GP5 Product Develop-ment Plan Marketing Business Objectives, PD Resource Allocation, PD Regulatory Trends Patent Laws Research Regulations Plan, Information Technology External Standards Budget, Marketing Plan, Finance Patents Requirements, PD Rules, Product Development Performance Metrics, PD Capacity, Research Capabilities, Research Performance Targets, PD Current Market Strategy Funding Approval Test & Validation Equipment Resource Allocations, PD Align PD Resources PP3 Communicate PD Plan PP4 Govern PD Personnel GP6 Govern PD Network GP7 Govern PD Change GP8 Govern PD Compliance GP9 Govern PD Life Cycle GP10 Change Guidelines, PD Strategy, Develop Rules, PD Partnership Guidelines New Technology Impact Regulatory Requirements Technology Lifecycle Expectations Strategy, PD Plan, PD Job Postings PD Partner Policies Partnership, Research Gov Research Regulations Strategy, Product Lifecycle PS Gather Supply Chain Requirements PS1 Assess Supply Chain Resources PS2 GS Govern Supply Chain Rules GS1 Govern Supply Chain Process GS2 Govern Supply Chain Information GS3 Govern Supply Chain Treasury GS4 Govern Supply Chain Assets GS5 Supply Process Requirements Customer Orders Business Objectives, SC Build Package Supply Chain Design Resource Allocations, SC Strategy, Information Tech Inventory Lookup Budget, Supply Chain Invoice Payment Requirements Supply Chain Rules, Supply Chain Performance Metrics, SC Capacity, Supply Chain Capabilities, Supply Chain Performance Targets, SC Inventory, Soft Allocation Inventory, Availability Maintenance Schedule Equip & Facility Disposition Equip & Facility History Align Supply Chain Resources PS3 Communicate Supply Chain Plan PS4 Govern Supply Chain Personnel GS6 Govern Supply Chain Network GS7 Govern Supply Chain Change GS8 Govern Supply Chain Compliance GS9 Govern Supply Chain Life Cycle GS10 Requirements, Supply Chain Performance Targets, Build Strategy, Supply Chain NPUTS Engineering Change Notice Strategy, Build Plan, Supply Chain Production Package Partnerships, Supply Chain Engineering Change Request Compliance Guidelines Strategy SC Lifecycle PC Gather Customer Requirements PC1 Assess Customer Resources PC2 GC Govern Customer Rules GC1 Govern Customer Process GC2 Govern Customer Information GC3 Govern Customer Treasury GC4 Govern Customer Assets GC5 Customer Relations Sell Package Plan, Market Business Objectives, CR Resource Allocations, CR Strategy, Sales Prior Sales Performance Channel Quality Assessment Brand Architecture Quantitative Market Research Budget, Customer Relations Requirements, Sell Rules, Customer Relations Go / No Go Criteria Performance Targets, CR Performance Metrics, CR Channel Constraints Corporate Identify System Align Customer Resources PC3 Communicate Customer Plan PC4 Govern Customer Personnel GC6 Govern Customer Network GC7 Govern Customer Change GC8 Govern Customer Compliance GC9 Govern Customer Life Cycle GC10 Requirements, Sales Change Guidelines, CR Strategy, Customer Relations Government Regulations Channel Strategy Sales Forecast Plan, Sale Sales Strategy Channel Alliances Pricing Changes Change Guideline, CR Contract Guidelines Strategy, Customer Lifecycle Execute Analyze Market M1 Analyze Performance M2 Define Customer Needs M3 Architect Solution M4 Develop Business Case M5 Validate Opportunity M6 Create Product Roadmap M7 Market Strategy, Marketing Plan, Marketing Customer Needs Competitive Offerings INPUTS Product Performance Analysis Market Survey Leads, Unqualified Customer Interviews Voice of the Customer Technology Trends Customer Trends Competitive Intelligence Supply Chain Design Product Design Concept Business Case Validated Opportunity Market Trial Funding Approval Market Dynamics Customer Segmentation Customer Goals Customer Density Map OUTPUTS Reverse Engineering Reports Benchmark Data, Product Unique “Must Haves” Customer Requirements Product Benefits Core Preliminary Brand Strategy Concept Clinic Value Proposition Preliminary Volume Target Preliminary Pricing Strategy Brand Concept Alignment Product Schedule Product Roadmap Product Life Expectations Plan, Plan Positioning Define Research Opportunity R1 Forecast Technology R2 Acquire Technology R3 Define New Technology R4 Validate Technology R5 Protect Technology R6 Transfer Technology R7 Introduce Technology R8 Research Product Usage Analysis New Technology Standards Industry Research Reports Technology Requirements Customer Survey Technology Viability Analysis Technology Impact Analysis Technology Life Expectancy Resource Availability Intellectual Property Acquired Technologies Test & Validation Equipment Integration Requirements Research Prototypes Patent Searches Patent Laws Research Regulations Field Intelligence Data Patents Develop Recommendations Tech Testing Requirements Tech Robustness Parameters Tech Integration Requirements Demo Prototypes Research Partnerships Impact Analysis Development Targets Validated Technology Tech Viability Analysis Tech Testing Procedures Tech Production Procedures Regulatory Requirements Develop Implementation Standards Development Kits Architectural Documentation Define Product Requirements D1 Select Technology D2 Design Product D3 Design Process D4 Validate Product & Process D5 Align Supply Chain D6 Define Product Life Cycle D7 Launch Product D8 Develop Project Schedule Project Budget Product Technology Plan Product Requirements Materials Library Design Standards Product Specification Product Configuration / BOM Prototype / Simulation Product Configuration / BOM Product Requirements Marketing Alliances Channel Alliances Capacity, Supply Chain Capabilities, Supply Chain Validated Product Req Validated Customer Req Plan, Market Launch Plan Validated Product Spec Product Lifecycle Plan Sourcing Criteria Service Manuals Packing Specification Material Cost Estimates Process Standards Process Manuals Process Requirements Validated Process Documents Test Results Engineering Change Request Strategy, Product Funding Request Support Package Source Package Sell Package Build Package Qualify Supplier A1 Issue Request A2 Evaluate Proposal A3 Negotiation Contract A4 Place Order A5 Receive Order A6 Verify Order A7 Transfer Inventory A8 Process Invoice A9 Acquire Supplier References Duns Reports Supplier Solicitations Targeted Suppliers Preferred Supplier List Qualified Supplier List Source Criteria Strategy, Corporate IT Licensing Agreements Terms & Conditions Contract Guidelines Accepted Proposal Schedule, Production Order Confirmation Completed Contract Shipping Documents Shipped Product Schedule Receiving Advanced Ship Notice Received Goods Received Goods, Verified Product Routing Instructions Receipt Confirmation Invoice Request for Quotation Request for Proposal Open RFP’s Load Tender Strategy, Information Technology Rules, Information Technology IT Portfolio IT Change Guidelines T&C Revision Request Licensing Requirements Scheduled, Receiving Purchase Order Spare Parts Inventory Location Payment Authorization AP Entry Request Resource B1 Issue Material B2 Build Product B3 Verify Product B4 Package Product B5 Stage Product B6 Release Product B7 Build Schedule, Receiving Production Package Maintenance Schedule Bill of Material Production Standards Inventory, WIP Engineering Change Notice Test Procedures Packaging Specification Inventory, Quality Verified Storage Instructions Inventory Packaged Goods Reg Compliance Guidelines Inventory, Packaged Goods Requirements, Capital Projects Routing Instructions Purchase Requisition Performance Feedback Inventory, Location Inventory, Unpacked Goods Lot Certification Inventory, Package Goods Schedule Delivery Inventory, Finished Goods Order Inquiry F1 Confirm Order F2 Plan Load F3 Receive at Warehouse F4 Fill Order F5 Ship Order F6 Deliver Order F7 Verify Receipt F8 Install & Test F9 F10 Fulfill Rules, Order Entry RFQ Response Soft Allocation Plan, Transportation Network Customer Order Rules Planned Loads Production Schedule Transportation Routing Consolidated Order Carrier Rate Tables Order Shipment Bill of Lading Shipping Manifest Advance Ship Notice Installation Instructions Proof of Delivery Inventory, Lookup Order Trigger Installation Records Define Brand Requirements N1 Differentiate Brand N2 Select Channel N3 Architect Brand N4 Validate Brand N5 Protect Brand N6 Assess Supply Network N7 Create Marketing Roadmap N8 Launch Brand N9 Brand Unique Buying State Marketing Dynamics Brand Requirements Brand Equity Pyramid Marketing Partnerships Creative Network Brand Collaboration Model Corporate Identity System Brand Network Model Brand Equity Assessment Differentiation Statement Testing Criteria Package Prototype Brand Prototype Brand Identity Product Portfolio Design Requirements Patent Drawings IP Opportunities Validated Package Design Validated Brand Design Advertising Concepts Communication Strategy Perceptual Map Unique Selling Proposition Competitive Focus Brand Differentiation Statement Brand Architecture Quantitative Research Trademark Registration Patent Application IP Strategy Freedom of Use Assessment Strategy, Sales Channel Plan, Brand Lifecycle Qualification Checklist Customer Profile Sales Process Template Sales Kit Price List Plan, Market Launch Target Customers S1 Qualify Target S2 Position Solution S3 Develop Relationship S4 Assess Customer Needs S5 Develop Proposal S6 Present Proposal S7 Finalize Contract S8 Win / Loss Review S9 Sell Current Customer List Budget, Sales Target List Tactical Sales Processes Leads Qualified Account Plan, General Customer Org Structure Agreement to Engage Account Plan, Detailed Sales Diagnostic Tools Relationship Management Plan Customer Expectations Customer Buying Process Proposed Solution Go / No Go Criteria Customer Value Proposition Tactical Sales Process Award Notification Won Sales Lost Sales Dead Pursuits Plan, Sales Coverage Plan, Channel Headcount Leads, Qualified Product Advertising Customer Contact Info Relationship Mgnt Plan Customer Needs Identified Consensus on Value Proposal Solution Signed Contract Won / Lost Report Register Customer U1 Manage Incident U2 Resolve Problem U3 Process Return U4 Educate Customer U5 Deliver Service U6 Monitor Experience U7 Support Customer Data Product Failure Report Routed Support Query Problem Description Request for Return Process Manual Product Manuals Support Agreements Guidelines, Service Bulletins Guidelines, Cust Notification Product Failure Data Field Performance Data Ergonomic Data Customer CRM Record Route Support Query Return Authorization Course Materials Course Descriptions Spare Part Kits Service Report Through chance and happen stance, found an organization that went through similar challenges with APQC and was adopting VRM. They were also using the same modeling tool as us. The VRM as a process framework really resonated – because it not only shows process activities and how they are related sequentially in a way that aligned to our company’s defined value chains, but also because they define inputs and outputs that show how each of the processes are related to each other. For example, the outputs from source to settle are used as inputs into order to cash.

9/17/2018

Process Scope Diagram: IGOE: Inputs, Guides, Outputs, Enablers
9/17/2018 Process Scope Diagram: IGOE: Inputs, Guides, Outputs, Enablers Process = Action Start / trigger End / result Inputs Come from other processes (internal or external) Types include: Physical materials to be transformed Information to be created, read / reviewed, updated, deleted (CRUD) Guides: Come from other processes (internal or external) – planning or managerial processes Formal or informal policies, rules, regulations, guidelines, best practices, tribal knowledge, etc. Outputs Go to other processes (internal or external) Information to be read / reviewed, updated, deleted (RUD) Enablers Managed, allocated, acquired, assigned in other processes People Technologies Facilities Machines

9/17/2018 Scoping a process Example: The latest reports shows that it takes us 25% longer to make our products then our competition, and it costs 10% more. Moreover, national accounts are twice as likely to complain about our quality. I want you to fix our manufacturing process, and I want the complaints to stop! Design tolerances Quality targets OSHA regulations Labor union contracts Processes: Design product Manage labor relations Monitor OSHA regulations Inputs Guides Outputs Processes: Invoice order Deliver order Verify receipt Process: Manufacture Vehicle Sub-processes: Assemble vehicle Test / Inspect Fix / Repair Orders, sequenced Materials, line side Work instructions Vehicles Invoice Title Certificate of Origin Here is an example IGOE model. In this example, we start with the manufacturing process, based on the executive comments, as the process in question. We identify the inputs, guides, outputs, and enablers, and the processes that are associated with creating each of these in return. Then we can take this map to the subject matter experts or project team, and ask in which of the processes they think the issue lie. We may decide to detail process map one of these areas, or maybe we need to stay at the high level and understand hand-offs occur between all of these processes. Enablers Processes: Receive orders Schedule orders Order materials Transfer inventory Design mfg process Employees Plants Machinery / Tooling Processes: Hire employees Pay employees Acquire assets

Approaches to Process Analysis and Process Improvement
9/17/2018 Approaches to Process Analysis and Process Improvement

9/17/2018 “As Is” Analysis: Using a Process Model For Analysis: What do you look for? Excessively sequential activities “Yo-Yo” effect: many handoffs Excessive rework Decisions late in the process Multiple loops back Similar sounding activities Spaghetti mess – complex process Delays Insert PowerPoint Presentation Name Here

“As Is” Analysis: Process Improvement Questions
Is focus on what is being DONE? Strong verbs in activities Tools / systems are extrapolated Business rules are extrapolated What information is needed for each step? How are decisions made? Formal or informal rule Tribal knowledge Experience vs. values based Because we’ve always done it that way How often do rules change? Will they be relevant tomorrow, next month, next year? Is the Law of Conservation Met? If there is an input, there must be an output and vice versa Where are the inputs coming from? Are they on-time? What metrics do we need to manage the process? Insert PowerPoint Presentation Name Here

Seven Principles of Process Design
9/17/2018 Seven Principles of Process Design Whether work should be done Under what circumstance How precisely should it be done What information is needed to make decisions When or in what order should it be performed Who should perform it Case work vs. Sequence / work-flow Where should it be performed Centralized vs. local What should be done What tools should we use to do it? - Hammer and Hershberger

Activities – What Type of Value?
9/17/2018 Activities – What Type of Value? Customer Value Add (Must meet ALL criteria): Customer recognizes value It moves the product / service towards something the customer expects It is done right the first time Operational Value Add Required to sustain workplace or perform customer value add activities Required by law Required for healthy, safety, environmental or personnel development reasons Done right the first time Non Value Add Insert PowerPoint Presentation Name Here

Examples of Non Value Added Activities
Confirm Validate Verify Check Record Ask: Is this step required by customers or by law? Could it be eliminated? There is nothing so useless as doing something efficiently that should not be done at all. - Peter Drucker Example: a few years ago there was a commercial by an automotive company. It started with visuals and voice-overs, showing “this is what a million books like, this is what a million people look like, etc.” Then the camera zooms into the door handle on the car and the voice says “that’s how many times we check the quality of just this part”… I think it was supposed to imply that a laser or something was used to check from a million angles, but as a process professional, my first thought was “if that’s why your product costs so much, I’m not buying it. If you’re processes are that bad that you need a million checks, your quality has got to be bad, and I’m not buying it.” Insert PowerPoint Presentation Name Here

Repeated Activities vs. Similar Activities When are processes re-usable? Different Processes: May sound similar but should have different names Utilize different data objects Perform different calculations Has different output Same Processes: All Users should agree on same name May be done in same or different systems May be done by same or different people Same inputs and same outputs Same set of rules are used Insert PowerPoint Presentation Name Here

Process Metrics Importance: Customer satisfaction Resource staffing Business decisions Prioritization of improvements Examples: Cycle times Number of instances at same time Number of errors / exception paths Percent of instances at different results Number of instances taking alternate paths Don’t just look at averages – consider histogram / range / std. deviation Exceptions should usually be brought to management attention Insert PowerPoint Presentation Name Here

Process Improvement Methodologies
9/17/2018 Process Improvement Methodologies What they are: Philosophical approach to management and improvement Toolbox for: analyzing, measuring, monitoring processes; brainstorming; problem solving Objectives: Provide cultural alignment (speak the same language) Improve bottom line Identify root causes Examples: Six Sigma: Focus on data, root cause Lean: Reduce waste, improve efficiency Global 8-D: Root cause analysis, problem solving Theory of Constraints: Improve throughput, identify bottlenecks Rummler Brache: Organizational white space, alignment of processes and metrics Process modeling is a tool used by many methodologies. Better process problem models are more comprehensive and more open ended. They are essentially formative in nature and are designed to help practitioners consider all of the many different causes that might tend to sub-optimize an organization's overall performance. They may begin by looking at a specific process but they incorporate methods that assure that they broaden their scope, as necessary, to optimize the overall performance of the project. SCOR: wikipedia SCOR is used to describe, measure, and evaluate supply chains in support of strategic planning and continuous improvement. By describing supply chains using process modeling building blocks, the model can be used to describe supply chains that are very simple or very complex using a common set of definitions. As a result, disparate industries can be linked to describe the depth and breadth of virtually any supply chain. SCOR(r) is based on five distinct management processes: Plan, Source, Make, Deliver, and Return. Plan - Processes that balance aggregate demand and supply to develop a course of action which best meets sourcing, production, and delivery requirements. Source - Processes that procure goods and services to meet planned or actual demand. Make - Processes that transform product to a finished state to meet planned or actual demand. Deliver - Processes that provide finished goods and services to meet planned or actual demand, typically including order management, transportation management, and distribution management. Return - Processes associated with returning or receiving returned products for any reason. These processes extend into post-delivery customer support. With all reference models, there is a specific scope that the model addresses. SCOR is no different and the model focuses on the following: All customer interactions, from order entry through paid invoice. All product (physical material and service) transactions, from your supplier’s supplier to your customer’s customer, including equipment, supplies, spare parts, bulk product, software, etc. All market interactions, from the understanding of aggregate demand to the fulfillment of each order. SCOR does not attempt to describe every business process or activity. Relationships between these processes can be made to the SCOR and some have been noted within the model. Other key assumptions addressed by SCOR include: training, quality, information technology, and administration (not supply chain management). These areas are not explicitly addressed in the model but rather assumed to be a fundamental supporting process throughout the model. SCOR provides three-levels of process detail. Each level of detail assists a company in defining scope (Level 1), configuration or type of supply chain (Level 2), process element details, including performance attributes (Level 3). Below level 3, companies decompose process elements and start implementing specific supply chain management practices. It is at this stage that companies define practices to achieve a competitive advantage, and adapt to changing business conditions. SCOR is a process reference model designed for effective communication among supply chain partners. Insert PowerPoint Presentation Name Here

BPMN Insert PowerPoint Presentation Name Here

Business Process Modeling Notation (BPMN)
Standard notation for business process mapping Understood by both business and IT Depict process for understanding Automate or Execute process in BPM software suites Open format supported by different tools and software Does not Define data flows Describe business rules Document organizational structure Developed by organization of business [process] users, software vendors, and academics Insert PowerPoint Presentation Name Here

BPMN: 4 Diagram Types Business Flow Diagrams (Orchestration) Shows flow of business activity Contains process / participants in a “pool” Choreography: Depicts communication between different pools Shows the order of messages / sequences of interactions Collaboration: Contains both orchestration and choreography Depicts interaction between business entities / business processes Includes two or more pools with message flows between them Pools may show detail (white box) or be “black box” Conversation Is similar to collaboration Depicts pools and communication between them Depicts high level view No detail of specific messages or order of messages Black box pools (no process flow) All pools involved in end to end process are shown Insert PowerPoint Presentation Name Here

BPMN Key Concepts Process Types Private: “Black Box” Public: “White Box” Participants are those involved with process Perform activities Initiate process Receive or send messages Each participant may have a different perspective as to what is internal / external to process Regardless of point of view, process diagram is the same Token: Is a theoretical concept used in BPMN Travels through the process [sequence] flow Helps define behavior of process elements Generated at beginning of process May generate additional tokens throughout process Consumed at end of process Insert PowerPoint Presentation Name Here

Process Instances Process = series of work activity that transforms an input into output Process can be performed many times Each time process / task is performed = “instance” Each time process is activated (instance of process), same activities are performed in same order Data or decisions can alter the path of the process – each instance does NOT have to take the same path Data evaluated / decisions made at same point in process Insert PowerPoint Presentation Name Here

Caveats BPMN allows same process to be modeled in multiple ways Technical aspects of BPMN will be shown BPMN says be consistent within a model “Best Practices” will evolve based on organizational maturity Recommendations will be presented Be consistent across models BPMN specifies elements Shapeset / Elements How to draw it How to use it Attributes – which include expressions, conditions, and other factors necessary to “execute” the process in a BPM suite BPMN 2.0 released January 2011 Tools vary in use of BPMN Insert PowerPoint Presentation Name Here

Basic Modeling Concepts
9/17/2018 Basic Modeling Concepts

BPMN Basic Elements BPMN Basic Elements Sub-process, Activity or Task: Action that performs work Events: Signal that something happened Status of process Describes how a process starts, pauses, waits, sends signals, redirects process flow, ends Gateway: Branches / controls flow of activity Decision / Split Merge / Join Sequence flow: Connects activities within a process Shows order of tasks Message flow: Shows flow of messages between participants Association: Associates information with objects Insert PowerPoint Presentation Name Here

BPMN Basic Elements (cont’d)
Pool: Graphical representation of a participant in a process Are not required Swimlane: Sub-partition of a process Used to organize activities Usually represents roles / users in process Can be nested Data Object: Information involved in process May be required to perform an activity May be generated as output from an activity Insert PowerPoint Presentation Name Here

BPMN Pools and Lanes Used to organize processes and activities Pools
Is not required Represents a “participant” “Container” for a process Sequence flow cannot cross boundary Message flows must always be between two pools Message flow can attaches to boundary (black box) {Message flow can also attach to BPMN element within a pool} Lanes Represents any “logical grouping” – usually for roles / responsibilities Roles Organization Title Specific Name Sequence flow crosses boundaries Can be nested Can be horizontal or vertical – tool or user preference

BPMN Activity Activity = work performed in process
Task = atomic: no further breakdown Sub-process = compound activity May be further broken down into any level of sub-processes or tasks and BPMN elements May be shown collapsed or expanded Enables high level overview of process Scopes activities that are impacted by events 9/17/2018

9/17/2018 Activity Types Icons in upper left of task box indicates task type Different types have different inherent behavior Service: Represents a service, such as a webservice Performed by system / application Requires (1) data input, may have 0-1 output [message / data object] Receive / Send: Task either receives / sends message Can be replaced with send / receive event User: Workflow type activity Performed by person Usually interfaces with a system Scheduled through a task list manager (workflow) Manual: Work performed without any aid of system Unmanaged by any system Not tracked / metrics not available from BPM engine Business rule: Provides input to rules engine Receives output / calculation results Script: Executed by BPM engine directly Insert PowerPoint Presentation Name Here

BPMN Task Activity Markers
9/17/2018 BPMN Task Activity Markers Task: Smallest piece of work; Activity Looping task: (Do while): Perform activity at least once Evaluate / test for condition If condition is true, repeat task again Condition may be a Boolean Expression or a Numeric Cap Condition may be evaluated at beginning or end of task Multiple instance task: (For each): Perform activity X times, where X is known at onset of task starting Task is complete when all X iterations are done Next task does NOT begin until all iterations are done Instances of activity can occur in sequence or in parallel with each other Each instance must complete the task before next task begins Compensation Undoes tasks that were already successfully completed Outside normal process flow Marker shows used for compensation only Markers may be used in conjunction with one another, except for looping and multi-instance i.e., a multiple instance compensation or a loop compensation are possible Insert PowerPoint Presentation Name Here

BPMN Sub-Processes Markers
Sub-Process (Collapsed): High level task Grouping of other tasks, gateways, etc. Expands to details on subsequent pages Used To define scope for exception handling or compensation OR For visibility purposes Markers include: Loop: Sub-process loops similar to loop task Multi-Instance: Sub-process does “for each” similar to multi-instance task Compensation: Sub-process is compensated similar to compensate task Ad-hocProcess not performed same every time Group of activities generally determined by performer Sequence and number of instances determined by performer May include sequence flow Shows constraint / relationship Does NOT automatically trigger subsequent tasks May have data dependencies with parent process Can NOT include choreography (messages from external participants) Ad-hoc compensation: Ad-hoc sub-process is compensated     Insert PowerPoint Presentation Name Here

BPMN Gateways Do NOT perform work Do not affect process time Control sequence flow: Directs flow of a single token (based on logical condition or event occurrence) OR Splits tokens apart (generates additional tokens) OR Merges tokens together Must have multiple inputs or multiple outputs of sequence flow Can’t have one input and one output Can have multiple inputs and multiple outputs Can have no input: decision will be made at start of process Should use a default flow: otherwise an exception error can occur Insert PowerPoint Presentation Name Here

BPMN Events Something that happens during a process Affect flow of process Have a cause and/or reaction Examples: Activity starts or ends Message arrives Change of state in document Placement in diagram Stand alone: Catch: wait for signal, then proceed Throw: send a signal, then proceed Boundary: Catch: wait for a signal Interrupt activity and redirect flow Insert PowerPoint Presentation Name Here

BPMN Events Start: Single circle: Starts the process Intermediate: Double circle: Occurs during process End: Single bold circle: Ends the process Throw / send events: Black icon Trigger is sent when token reaches event Token immediately moves along sequence flow Catch / receive events: White icon Token stops at event and waits for trigger Token moves along sequence flow after trigger is received Icon inside circle represents event or “trigger” type. Most common types are: Message Timer Error Insert PowerPoint Presentation Name Here

Most Commonly Used BPMN Elements

Exercise: Making Dinner
9/17/2018 Exercise: Making Dinner A chef selects and reviews a recipe and then checks the pantry to confirm all ingredients are in-house. If any ingredients are missing the chef can either go back and select another recipe and repeat or go to the store to purchase missing ingredients. If / when all ingredients are in-house, the chef cooks the recipe for each customer, plates the dish and serves. Exercise: Model the chef’s process of making dinner using BPMN Now that you know a bit about process frameworks and the BPMN notation, let’s go back to the Chef exercise…

Exercise 1: Possible solutions?
9/17/2018 Exercise 1: Possible solutions?

Exercise 1: Discussion How many processes are mentioned?
9/17/2018 Exercise 1: Discussion How many processes are mentioned? What would really trigger each of the processes? What roles might be involved in a retail / corporate restaurant environment? How are the processes related to each other? Would you consider a “work flow” tool to connect these processes together?

BPMN Gateways and Conditional Flows Controlling Path of Process
9/17/2018 BPMN Gateways and Conditional Flows Controlling Path of Process

BPMN Gateways Do NOT perform work Do not affect process time Control sequence flow Merges tokens together OR Splits tokens apart (generates additional tokens) OR Directs flow of a single token Must have multiple inputs or multiple outputs of sequence flow Can’t have one input and one output Can have multiple inputs and multiple outputs [not recommended] Can have no input: decision will be made at start of process Insert PowerPoint Presentation Name Here

BPMN Gateways: Decisions / Splits
BPMN Gateways – Splits Directs a token into different possible downstream paths Asks a question, associates outgoing paths with answers Generate a token for each answer / condition that is true Types: Exclusive Or: Only one path can be followed – based on data condition Only one answer / condition can be true Inclusive Or: One or more paths can be followed One or more answer / condition can be true Parallel (aka “and”): All paths are taken (no question is asked) All paths must reach end event for process to complete Complex: Condition evaluated to determine which flow is taken Event gateway: Exclusive – based on occurrence of an event Decision made by participant based on data not visible to process Usually a message (yes message vs. no message) or a timer Must have 2 or more outgoing flows followed by events or receive tasks First event to happen directs flow Must be followed by: message, timer, condition, or signal Insert PowerPoint Presentation Name Here

Exclusive Gateways: Decisions / Splits
Always ask: How do you know? Can have TWO OR MORE (no limit) outgoing sequence flows One and only one path will be followed for each token Which path the token takes depends on the gateway type [Data] Exclusive Or: Decision based on a variable or condition that is known Evaluation usually based on ONE data field or business policy Decision is evaluated when token reaches gateway NO DELAY Exception will be thrown if NO path evaluates to true Event gateway: Decision based on which event happens first All paths must have an event or receive task following the gateway Usually a message, timer, or condition Token will be DELAYED until event happens added to help explain and practice the use of BPMN gateways. English Words to Listen For: Either, Or, If, Sometimes, Wait for (event) Specific numbers / codes Insert PowerPoint Presentation Name Here

Data Gateways: Exclusive vs. Inclusive
9/17/2018 Data Gateways: Exclusive vs. Inclusive Decision based on a variable or condition that is known Variable may come from a data input into the process Condition is known by process performers Decision is evaluated at point token reaches gateway NO DELAY Exclusive Only one condition can be true Typically ONE variable or business rule is used Inclusive One or more conditions can be true Typically more than one variable or business rule is used Can usually be represented by series of exclusive gateways… but order in which they are evaluated doesn’t matter English Words to Listen For: Either, Or, If added to help explain and practice the use of BPMN gateways. English Words to Listen For: Sometimes, If, And, Also

Gateways and Rules No work is done at a gateway
9/17/2018 Gateways and Rules No work is done at a gateway Token does not wait Cycle time is not impacted “Evaluation” or “Refer to policy” activity typically done prior to a gateway Often omitted from narration Intuitive to subject matter experts Business rules may be: Personal decision Tribal knowledge / best practice / verbal / informal Based on experience Based on culture and clear, consistent values Formalized definition or documented rules Hard coded into IT logic and out of date

Gateways and Business Rules
9/17/2018 Gateways and Business Rules What happens during financial crisis? What happens when new regulation is introduced? What happens is too many people default on loans? What happens if no loans are approved? Best Practice: Extrapolate the Rules from the Process, just as you want them extrapolated from IT code so that business can take over management of rules

Flow Markers and Gateways
Default Path Used after gateways Indicates which path to take, even if condition is not evaluated as “true” prevents exception or “hung” process Conditional Path (Expression) Used in lieu of gateway, after an activity Includes a condition expression to be evaluated Directs flow Used in conjunction with other flow Recommendations: Use gateways – easier for business to catch on Only use Default if one actually exists in process that is being followed – recommend for to-be and when modeling in execution environment Insert PowerPoint Presentation Name Here

BPMN Gateways: Converges / Joins
Gateway Merges Converges / Merges: Joins previous paths / tasks back into one flow Types: Exclusive (Uncontrolled): When any previous task / path is completed, continue on (don’t wait for other tokens to arrive) Parallel (And): Wait for tokens from all paths to arrive All prior process tasks must be completed Parallel (And) Event: All events must occur before triggering token Inclusive (Conditional And): Wait for tokens from all active paths to arrive Some tasks are completed Complex: Condition evaluated to determine which inputs are needed to continue on English Words to Listen For: Either, or, regardless, “always do next” English Words to Listen For: Always, All, And, Wait for everything to finish Insert PowerPoint Presentation Name Here

BPMN Gateways Controlled vs. Uncontrolled Flow
What is the difference between the two diagrams? Controlled Flow Every time a loan is pre-approved AND a desirable home is located AND offer is prepared A house is bought if only it were that easy! Uncontrolled Flow Every time pre approved loan is obtained, house is bought AND Every time desirable home is located, house is bought AND Every time offer is prepared, house is bought Best Practice: Always use a Gateway – it will make you think whether the or or and symbol should be in it. Coming off of traditional process modeling, people may have meant either option using uncontrolled flow Insert PowerPoint Presentation Name Here

Gateways: To be or not to be?
Decisions Parallel / And gateway = Uncontrolled outgoing flow ALL subsequent activities will be enabled Merges Exclusive-Or merge = Uncontrolled incoming flow Completion of ANY of the previous activities will trigger the next task Recommendation: Use gateways to avoid accidental misuse or misinterpretation Be accurate with business context added to help explain and practice the use of BPMN gateways.

Gateway Exercise Which Gateway Type to Use….
When you submit your offer on the house, be prepared to get a counter offer. We are going in pretty low from list price. We should hear back within a day or two. I think the seller is currently out of town on business. But if we don’t hear back by the end of next week, I’ll send my cousin Vinny over to talk to the other agent, since the offer officially expires at the end of the month and I know your lease is up then.

When you are buying a new house, you receive a counter offer from the seller. You decide to negotiate if the counter offer is slightly higher than you are willing to pay, otherwise if the counter offer is reasonable you accept it.

9/17/2018 Gateway Exercise Which Gateway Type to Use…. After the offer is accepted, you should get a home inspection, submit for home insurance, and set-up an escrow account.

When your offer is accepted, you should get a home inspection. Based on the results of the home inspection, you may need to (or want to) submit for flood insurance since we’re near the neighborhood storm drains. Depending on what the home inspector finds, you may also want to apply for a home warranty, that covers your water heater, furnace, and other appliances. If they are old, you may want to cover yourself. And if anything is against codes, you can negotiate with the seller. Once all that’s done, we’re ready to head to the title office for the official signing.

Gateways: What’s Wrong With This Picture?
9/17/2018 Gateways: What’s Wrong With This Picture?

Gateways and Merges Best Practices
9/17/2018 Gateways and Merges Best Practices Always use a gateway instead of uncontrolled flows Separate gateways and mergers If multiple outgoing sequences flows, only one incoming sequence flow If multiple incoming sequence flows, only one outgoing sequence flow Avoid complex gateways Avoid hard coding business rules into your process logic Extrapolate the business rules – make your process flexible! Check for matching icons OK if a gateway does not merge again OK if gateway and merge have different symbols as long as business context is accurate

9/17/2018 Gateway Exercise A national account manager trying to steal a large customer from the competition submits a request to the pricing department for an especially large discount. When the pricing department receives the request, they review the customer profile and discount request. If the customer is certain industries, the pricing department can grant a pre-defined discount level without further questions. The pre-defined industries offer different discount levels based on industry, customer size, and geographical location. If the customer is not in one of the predefined industries, then the pricing team must do further analysis. If the customer is going to do $5 million or more in revenue, then they will consider the total annual revenue, number of cross selling opportunities, and what it costs to support the customer. A discount level will be calculated, and if it’s above 35%, then they must ask for vice president approval. If the customer does less than $5 million in revenue, the pricing team asks the monkey in the closet to throw a dart at a board to assign a discount. Diagram the “establish price level” process using appropriate BPMN icons in gateways.

Gateway Exercise [A Solution]
9/17/2018 Gateway Exercise [A Solution]

9/17/2018 BPMN Events

BPMN Events Something that happens during a process Affect flow of process Have a cause and/or reaction Examples: Activity starts or ends Message arrives Change of state in document Placement in diagram Stand alone: Catch: wait for signal, then proceed Throw: send a signal, then proceed Boundary: Catch: wait for a signal Interrupt activity and redirect flow Insert PowerPoint Presentation Name Here

Event Types BPMN Events Start: Single circle: Starts the process Intermediate: Double circle: Occurs during process End: Single bold circle: Ends the process Throw / send events: Black icon Trigger is sent when token reaches event Token immediately moves along sequence flow Catch / receive events: White icon Token stops at event and waits for trigger Token moves along sequence flow after trigger is received Icon inside circle represents event type or “trigger” or “result” Insert PowerPoint Presentation Name Here

BPMN Start Event Start Event begins the process, generates a ‘token’ that travels through the paths All start events are “catches” Start Event is NOT required but recommended If there is no start event: ALL tasks, sub-processes, gateways, etc. that do not have incoming sequence flow will act as the “start” Any element without an incoming sequence flow will start when the process starts Multiple start events may be used if applicable If a start event is used An end event must also be used All other objects must have incoming sequence flow If a start event is used in a sub-process, it must ALWAYS have NO trigger If a trigger is desired, use an intermediate event just before the sub process on the high level diagram Flows: Sequence flow only coming out May have message flow going in Often over looked in narration. Questions to ask: How do you know you need to do this process? What is the trigger to your activities? Words to listen for: Every day,/week/month; submit; send; receive; request; wait; Insert PowerPoint Presentation Name Here

BPMN Start Events Top Level Processes
None: No specific start Message: A message arrives (start events can only catch messages) Timer: Specific time / date or a specific duration Conditional: Condition is reached Signal: Signal broadcast elsewhere is received Multiple: Any multiple types above may trigger a process Parallel Multiple: Multiple triggers - ALL must occur to begin process Insert PowerPoint Presentation Name Here

Start Events Exercise Which type of event to use?
9/17/2018 Start Events Exercise Which type of event to use? Customer submits an order to the company.com, who fills the order. You arrive at work on Monday and begin to analyze data from a report that was generated last week. Five business days before the end of the month, a batch job starts preparing sales data for financial reports. When your balance on your corporate travel and expense credit card reaches $20,000, you and your manager receive notices and you are no longer to make any more purchases. A message is posted on the corporate internet site that sign-up for a new health program is now open. You click on the link and register to join a team.

BPMN End Events None: No specific result Message: A message is sent to a participant at end of process (End message events can only send) Error: An error is generated and thrown (some thing else must catch it); all active threads in process (sub-process) will be terminated Cancel: Use within a transaction sub-process ONLY. Ends the transaction process and send a notify message to participants involved in transaction Compensation: Activities identified will be compensated (reversed / undone). Signal: A signal is broadcast (any process that can receive the signal will hear it and be triggered). Propagates to all processes, all levels Terminate: All activities in the process end immediately without compensation or event handling. Does NOT propagate beyond [sub] process boundaries Multiple: Multiple consequences, all of which will occur Escalation: An escalation is thrown (something else must catch); all other active threads in process continue) Words to listen for: Notify, confirm, completes, done, end, send, submit Insert PowerPoint Presentation Name Here

BPMN End Event Exercises
9/17/2018 BPMN End Event Exercises Parts are delivered to a plant which are put into bins at line side or in warehouse. When Sales finalizes a quote, the quoting system sends an to the customer with the quote attached. A sales analyst receives a request for quote for a part from a dealer. The analyst looks up the part, but the part doesn’t have a price in the system. You complete an adventure course and fire a flare to notify the adventure company you are ready to be picked up. You place an order from the company.com if one of the items you order is out of stock and is not available within a week, you receive an notification with ETA.

BPMN Intermediate Events
Shows where messages are expected, required, or sent Shows expected delays Disrupt the normal flow through exception handling Show extra work required for compensation Can be drawn Within normal sequence flow of a process May be catch or throw Will always need to occur to move token Attached to an activity boundary Can only catch a trigger May or may not occur Can only trigger exception flow if event occurs while task it’s attached to is active Interrupts* activity to which it is attached and redirects flow *BPMN 2.0 does allow for some attached events to be non-interrupting Insert PowerPoint Presentation Name Here

Stand Alone Intermediate Event Types
None: no specific trigger Acts as a throw event (token immediately moves on) Indicates process change of state or milestone is reached Message: sends or receives a message from other process or participant Throw = Send Catch = Receive Timer: acts as delay Specific time / date (every April 15) Duration / cycle (every four hours) Escalation: throws an escalation Compensation: throws a compensation Token moves forward Activities prior to compensation are undone in reverse order Conditional: catch event Triggers if / when a condition becomes true Link: connects two sections of a process Creates a loop within a process Acts as “go to” directions Show process continued on next page May be Multiple source / throw events Single target / catch event Signal: used to communicate within or across pools Throw = send signal Catch = watch for signal Multiple: Throw = all events will get thrown Catch = any one of the events will be received and move token Multiple Parallel Catch = all of the events must be received before token moves ^ + Words to listen for: Milestone, status, Notify, confirm, Wait, Receives, escalates, until, reaches, except, sometimes, errors, Insert PowerPoint Presentation Name Here

Boundary Intermediate Events
Interrupts an activity* * Compensation and escalation do NOT interrupt the activity Activity does not fully complete When event occurs, a different path is taken Creates a race condition: Token arrives and activates both the activity and the event If activity completes first, the token moves on, and the event won’t be activated If the event is activated before the activity completes, the activity stops and flow is redirected

Boundary Intermediate Event Types
Message: catch event Redirects flow if message is received Timer Specific time / date (every April 15) Duration / cycle (every four hours) Escalation Catches the escalation Does NOT interrupt activity by default Error: catch event Error condition is thrown elsewhere in process Always interrupts activity Cancel: catch event Cancel trigger is thrown from end of a transaction sub-process Compensation: catches compensation event from elsewhere Does NOT interrupt activity Can only be triggered after activity to compensate has been completed Conditional Triggers if/when a condition becomes true Signal: Catch only = Signal is received More general, larger scope, non-error condition than error event Multiple Catch = any one of events will redirect flow Parallel Multiple Catch = all of the events must be received to redirect flow ^ + Insert PowerPoint Presentation Name Here

Timer Events in Practice
9/17/2018 Timer Events in Practice Timers represent A regularly recurring date (Every January 1) Duration (Every 6 hours) Clock starts when token arrives Token leaves when timer goes off A relative time (Every Monday) Timers are exact Gateways should be used if it’s a personal judgment call Are NOT delays due to bad process design Used primarily by systems / processes in execution

Message Events in Business Practice
9/17/2018 Message Events in Business Practice Modeling for Analysis Modeling for Execution Messages can represent: Phone call Fax Service request in IT systems Doorbell Sequence flow can still be used to indicate hand-offs Beware the issue of Lost in inbox Ignored – not true trigger Data not required Recommendation: Explicitly call out hand-offs (or any other type) if they are an issue Best practice: Distinguish between different message types – often different subsequent tasks Messages represent Service call Specific communication / signals within process Messages have a strict format and data elements included Only one message can be sent / received Distinguish between accept / deny Sequence flow will perform the hand-offs if process is executed in workflow / BPMS

Using events to identify delays

Error Handling Is almost the Same As
9/17/2018 Error Handling Is almost the Same As In BPMN: Activity A does not fully complete if the error occurs. Will the token ever reach the gateway? Scope of activity matters! Some thing in the process has to throw the error for it to be caught and interrupt activity A System errors may be implicit and the throwing omitted Generally, an error can be represented as a gateway. Reasons for using error event: “Clean up” the high level diagram, terminate parallel activities

Events in Diagrams Errors are Terminate
9/17/2018 Events in Diagrams Errors are used to end a sub-process with parallel activities and redirect flow on parent diagram can only be thrown by an end event can not be thrown from parent level process can only be caught by a boundary intermediate event – Terminate Only terminates active paths within the process level they are modeled Do not cross task / sub-process boundaries

Events: What’s Wrong With This Picture?
9/17/2018 Events: What’s Wrong With This Picture?

Exercise 3 - Events You submit an order to an on-line company for multiple items. If all items are in stock, your order will be shipped immediately and you will receive a confirmation notice with your tracking number. If all items are not in stock, the company will check with the suppliers to determine if the items will arrive within the next week. If all items will be available within the week, you will receive a notice with your estimated shipment date. If some of the items will not be available within the week, the company will split your order into multiple shipments and send the items in stock right away. You will receive an notice with your estimated shipment date. If you can’t wait until your estimated shipment date, you can cancel or change your order for those items not in stock without penalty. If want to change any portion of your order, prior to shipment, you will be charged a restocking fee if the items have already been confirmed in stock. Model the company’s order fulfillment process

9/17/2018 Exercise 3 [a solution]

Back to BPMN Tasks: Repeated Activities
9/17/2018 Back to BPMN Tasks: Repeated Activities

Hiring Example: What’s Wrong
9/17/2018 Hiring Example: What’s Wrong Only one resume received / evaluated Resumes only received after position posted All candidates interviewed How many processes are here? Remember that sequence flow shows when one activity completes successfully, it triggers or hand-offs to the next connected activity.

Separate Processes linked through Inputs and Outputs
Identify what really TRIGGERS activity to begin Identify what INPUTS are required to do activities Identify OUTPUTS of activities

Repeated Activities Processes are repeatable by definition
Instance occurs each time trigger occurs Activities can also be repeated Re-Usable or Callable SubProcess: Subprocess / Task repeated once in many different process / sequence flows Different activities before and after Sub-process that begins with a NON-NONE start event Message, Timer, Condition, etc. Loops Task repeated multiple times in same process

Loop Types: Loop Type Gateway Standard Loop (Do-While or Do-Until)
9/17/2018 Loop Type Gateway Standard Loop (Do-While or Do-Until) Multiple Instance (For Each) Use Repeat activities without preserving the previous results Activities always repeat sequentially (do once, then maybe do again) Loops cross multiple swim lanes Repeat one or more activities while preserving the data/results of the activities for future reference Number of occurrences is not known prior to first instance Exceptions regularly occur Activities will occur a fixed number of times, and this number of times is known before the loop begins (based on data object) Activities may repeat sequentially or in parallel Pros Readily understood Visual indication of repeated activity No need to specify a loop condition Cons Difficult to represent exceptions Open to misinterpretation Unintended “execution” consequences No way to determine what the loop condition is without annotations No way to tell how many parallel instance or serial iterations are currently being performed (during execution) Least intuitive Source:

Loop Examples Gateways Loops Multiple Instances Manager approvals Quality control check points Separation of duties / risk Batch job processing Conditional reporting Wait and see / watch for Order fulfillment of multiple line items Group bookings Interviewing candidates English words: Go back Update Confirm and reject Monitor Repeat Until For each Until [the last one is finished] Ask: How do you know when your done? How do you know how many times? Insert PowerPoint Presentation Name Here

Loops Implications One activity finishes before next activity begins
Packaging of parts will not begin until all parts are picked. This may or may not be the actual case.

Exercise 4 – Loop Types You submit an order to an on-line company for multiple items. If all items are in stock, your order will be shipped immediately and you will receive a confirmation notice with your tracking number. If all items are not in stock, the company will check with the suppliers to determine if the items will arrive within the next week. If all items will be available within the week, you will receive a notice with your estimated shipment date. If some of the items will not be available within the week, the company will split your order into multiple shipments and send the items in stock right away. You will receive an notice with your estimated shipment date. If you can’t wait until your estimated shipment date, you can cancel or change your order for those items not in stock without penalty. If want to change any portion of your order, prior to shipment, you will be charged a restocking fee if the items have already been confirmed in stock. Model the company’s order fulfillment process

9/17/2018 Exercise 4 [a solution]

9/17/2018 Other BPMN Elements Groups Data Objects Artifacts

Groups Visual representation only Aids process discussion
9/17/2018 Groups Visual representation only Aids process discussion Has NO impact on process flow or execution

BPMN: Data Objects Should be re-used throughout the process
9/17/2018 BPMN: Data Objects For Analysis For Execution Visual representation of artifacts used in a process Types: Input Output Single Data Object Multiple / collection of data Examples Sales order from customer [received] Sales order from customer [fulfilled] Purchase order to supplier Should be re-used throughout the process Use references to reflect different states Life of data object is tied to life of process (or sub-process) in which it’s referenced

9/17/2018 Artifacts “Modelers and tool vendors can extend BPMN concepts through the addition of new types of Artifacts” Should NOT impact process flow Use for additional detail Screen shots Standard operating procedures Secret decoder rings Current business policies

Modeling IT applications?
Model as a lane if system activities are being documented Rules hardcoded in system today Timing of batch jobs impact user activities Systems interactions need understood Model as a custom object / artifact associated with activities Associate user activities / business processes with applications

Top Modeling Mistakes

#4 Ignores multiple instance implications
INCORRECT CORRECT Assuming all activities happen at the same level leads to issues in system design AND resource planning 9/17/2018

#3 Ignores the strong verbs
INCORRECT CORRECT Using only nouns makes it difficult for the reader to determine WHAT is HAPPENING. Ignore the tools. Start with strong verbs. 9/17/2018

#2: Ignore or Hard codes business rules into process logic
INCORRECT CORRECT Attempt to have connectors out of gateways labeled as yes or no, rather than labeled after a condition or expression (may not always be possible). Hard coding business rules or policies into process maps is equivalent to burying them in IT code. Identify if decisions are based on a policy (formal or informal). As part of the to-be, make sure a process exists for managing, updating, and communicating policies or rules. 9/17/2018

#1 Connects independent processes via sequence flow
INCORRECT CORRECT Sequence flow indicates as soon as one activity finishes, the next one begins. Focus on what triggers an activity to start. Is the activity really a separate process that can be triggered by other events or activities? Are processes connected via shared data rather than a hand-off? 9/17/2018

Recommended Best Practices

Clean Up Diagrams Keep happy path along main horizontal path
9/17/2018 Clean Up Diagrams Keep happy path along main horizontal path Exceptions, errors, and non-happy path deviate vertically Move labels and descriptions Close to element So they aren’t covered by other elements or flow lines Wrap text to keep from overlapping with other elements Flow descriptions are close to gateway, so you don’t get lost or have to search for logic Utilize sub-process hierarchy Remember Miller’s Law Loose coupling / strong cohesion Use straight lines Connect to different points on source elements

9/17/2018 Find the Predecessors

Make Process Logic Visible
9/17/2018 Make Process Logic Visible Label events, gateways, and sequence flows out of gateways Avoid hard coding rules into process logic Reference business rules or policies – whether or not they are formalized Use text annotations to provide business context: Explain current business rules Estimated percent for each split gateway Distinguish between different end states with different events Utilize swim lanes to show “who” Depict known business objects Use choreography

Use of Color Why use color? Considerations
9/17/2018 Use of Color Why use color? Color swim lanes to clarify roles Note milestones / status changes Highlight areas of importance / priorities to improve Considerations Color blindness Grayscale print outs Contrast and amount of colors: blue-green vs. green-blue

Process Governance Insert PowerPoint Presentation Name Here

9/17/2018 What is Governance? When you hear governance, what do you think of? Governance is not red tape. To make an analogy: It is not a dictatorial edict telling you where you need to go and what roads you need to take to get there. Governance, refers to “rules of the road” – telling you when to stop and what the speed limits are on certain roads, so that we don’t have grid lock. It tells you how to drive, not where or when to drive. Insert PowerPoint Presentation Name Here

Considerations of a Tool:
9/17/2018 Considerations of a Tool: BPMN 2.0 Any BPMN 2.0 shapes / requirements are NOT supported? Any tool specific artifacts? Does tool perform any validation against spec? Can you copy tasks? What type of process organization is available out-of-the-box Hyperlinks between parent diagram and collapsed subprocesses Models for analysis and execution Data dictionary, data object identification, reuse? What type of collaboration is available? Enable multiple users Enforce process governance Sequence flows – custom bends placement of labels Any simulation capabilities?

Business ownership of process models IT helps validate and educate
9/17/2018 Business ownership of process models IT helps validate and educate What is the goal of the process? How do we differentiate, where are we best in class How are we doing at “table stakes” dimensions What is priority focus of improvement project What decisions do you make and what information do you need to make them? What are the attributes / boundaries of the process Where do you connect with other functional areas for other processes with same attributes? How do you leverage best practices and assets of processes with different attributes? At what level of [detail – in relation to the overall process trigger] are tasks performed? If tasks occur at a lower level [multi instance], what happens downstream of the split? If tasks / activities are NOT always performed What is the trigger to perform them when they are required (how do you know) How consistent have these triggers been over the past [year]

Business Process Management

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