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Introduction to BPM Sarbashrestha Panda August 2008
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Coverage Detailed Slide 2 What is BPM Process Reference Models Process Modeling Notations Modeling Essentials (What to capture) KPIs Process Analysis Non Value Adding Activities (NVAs) FMEA/Root Cause Simulation (Bottlenecks, Costs, Resources fine- tuning) Process Design Inputs to Design Process Design best practices Tools : BPA Vs BPMS Components and structure of a BPMS Overview of a BPA/BPM tool
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What is BPM?
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What is BPM Slide 4 BPM is a set of processes that help organizations optimize their business performance. It is a framework for organizing, automating and analyzing business methodologies, metrics, processes and systems that drive business performance. Wikipedia The ABPMP definition of Business Process Management is: “Business Process Management (BPM) is a disciplined approach to identify, design, execute, document, monitor, control, and measure both automated and non-automated business processes to achieve consistent, targeted results consistent with an organization's strategic goals. BPM involves the deliberate, collaborative and increasingly technology-aided definition, improvement, innovation, and management of end-to-end business processes that drive business results, create value, and enable an organization to meet its business objectives with more agility.” https://www.bpminstitute.org/articles/article/article/what-is-bpm-anyway.html https://www.bpminstitute.org/articles/article/article/what-is-bpm-anyway.html
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“What exactly is BPM? Is it a process, technology, or management discipline?” Slide 5 So, what really is Business Process Management (BPM)? A process of managing your business processes A management discipline. A technology or set of technologies A rapid application development framework
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What is BPM? The evolution Slide 6 Ravesteyn, 2007
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Process Reference Models
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Slide 8
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Process Reference Models –SCOR Slide 9
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Process Reference Models - eTOM Slide 10
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Process Modeling
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Process Mapping Basics Slide 12 Mapping Techniques/ Notations Flowcharting Activity Diagrams IDEF EPC (Event driven process charts) BPMN http://www.diveintobpm.org/ http://www.diveintobpm.org/
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Diagram Construction Slide 13 Boxes represent functions Arrows represent real objects or data FUNCTION CONTROL OUTPUTINPUT MECHANISM
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Example IDEFØ Diagram Slide 14 Build System A3 Design System A2 Establish Reqmnts. A1 Needs Alternative Technologies Knowledge of Previous Design Customer Expectations Understanding of Customer Requirements Requirements Contract for Tradeoff Decisions Design Product Raw Material Analysis MethodsDesign MethodsFabrication Methods
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What to capture? Slide 15
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What to capture? Slide 16 Org view Roles Responsibilities Locations Data View Input objects Output objects Transformations System View Rules Flow dependencies Others Simulation Parameters
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Key Performance Indicators Slide 17 Measures Vs KPIs Types Financial / Operational / Transactional Department Level, Process Level, Organizational Level driven by the strategy > what gets measured gets done
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Process Analysis
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Slide 19 NVA – Non Value Added Activities Lean concepts Muda - Waste Muri - Overburden Mura – Unevenness FMEA Root Cause Analysis Simulation
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Process Design
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Slide 21 Inputs from SMEs FMEAs Gap Analysis Benchmarking Best Practices
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Process Analysis / Re-designing Workflows Slide 22 Weed out the NVA Check necessity of each activity Parallelism Optimize communication Resource allocation Order task according to cost / effects
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Tools
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BPA Vs BPMS Slide 24
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When to use BPMS Slide 25 low high Frequency of change Complexity of coordination BPMS EAI Application server Krafzig et al. 2005
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BPMS: Under the hoods Slide 26
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Advanced Topics Slide 27 Process Maturity Models BPM Implementation Methodology Process Governance SOA and BPM
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contact: sarbashrestha@gmail.com Thank you
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