22
Business Process Simulation: How to get value out of it Denis Gagné, www.BusinessProcessIncubator.com Chair BPMN MIWG at OMG BPMN 2.0 FTF Member at OMG BPMN 2.1 RTF Member at OMG CMMN Submission at OMG Chair BPSWG at WfMC XPDL Co-Editor at WfMC

BPM Conference Portugal 2013 - Denis Gagné "Business Process Simulation: How to get value out of it"

Embed Size (px)

DESCRIPTION

Denis GagnéHead of Business Process Incubator Denis Gagné is a member of the Workflow Management Coalition (WfMC) Steering Committee, chair of the Business Process Simulation Working Group (BPSWG), and the co-Editor of the XPDL 2.2 process definition standard. M. Gagné was the team lead for the BPMN Diagram Interchange (BPMN DI) portion of the BPMN 2.0 standard and is currently a member of the BPMN 2.1 Revision Task Force and the Case Management Model and Notation (CMMN) submission team. M. Gagné holds both the Business and Technical Professional Advanced OMG Certified Expert in BPM (OCEB) certifications and was one of the 25 Subject Matter Experts (SME) behind the creation of this certification program. M. Gagné is the driving force behind www.BusinessProcessIncubator.com, an online resource sparking to life the promises of Business Process Management (BPM). Free registration provides access to a wealth of BPM related resources such as free BPMN modelers, best practice presentations, verification and conversion web-services to-and-from various BPM standards, and a complete BPM eLearning curriculum. "Business Process Simulation: How to get value out of it" Business Process Simulation can be an effective tool when looking for optimal performance from a Business Process Model. Although considered quite relevant and applicable in the context of Business Process Management (BPM), Business Process Simulation is not current practice for -and even seldom used by- Business Analyst in the course of process analysis. In this presentation we will explore why this may be the case and will discuss how to use Business Process Simulation efficiently while identifying some of the pitfalls along the way. Various Business Process Simulation approaches, their benefits and applicability will be introduced. The session will conclude with a quick overview of a new Business Process Simulation standard that is emerging within the industry.

Citation preview

Page 1: BPM Conference Portugal 2013 - Denis Gagné "Business Process Simulation: How to get value out of it"

Business Process Simulation: How to get value out of it

Denis Gagné,

www.BusinessProcessIncubator.com Chair BPMN MIWG at OMG

BPMN 2.0 FTF Member at OMG

BPMN 2.1 RTF Member at OMG

CMMN Submission at OMG

Chair BPSWG at WfMC

XPDL Co-Editor at WfMC

Page 2: BPM Conference Portugal 2013 - Denis Gagné "Business Process Simulation: How to get value out of it"

Marketing Poster of BPM

• “Doing things right” Do more with less

Business Efficiency

• Quickly adapt to changing Business Conditions

Business Agility

• Current status, outcome, compliance

Business Insight

Page 3: BPM Conference Portugal 2013 - Denis Gagné "Business Process Simulation: How to get value out of it"

Improvement vs. Management

Process Improvement Is project based

Is discontinuous improvement

Addresses particular process problems

Process Management Is not project based but a management philosophy

Is a continuous improvement culture

Is about process-based management

Will require some culture change

Page 4: BPM Conference Portugal 2013 - Denis Gagné "Business Process Simulation: How to get value out of it"

Poor Performing Processes

May lead to:

Delays

Back log

Refund Claims

Angry customers

Lost of goodwill (Mission Critical)

Lost of lives (Life Critical)

Gain Insight: Thoroughly analyse business

process in a safe isolated environment prior to

Deploying

Page 5: BPM Conference Portugal 2013 - Denis Gagné "Business Process Simulation: How to get value out of it"

BPMN Process Diagram

www.BPMNVisioModeler.com www.BPMNWebModeler.com

Page 6: BPM Conference Portugal 2013 - Denis Gagné "Business Process Simulation: How to get value out of it"

Simulation for Process Analysis

Provides a priori Insight

Can be Effective Process Analysis tool for:

Alternative Evaluation

Decision Support

Performance Prediction

Optimization

Page 7: BPM Conference Portugal 2013 - Denis Gagné "Business Process Simulation: How to get value out of it"

Benefits of Simulation

Advantages of simulation over testing on the

real world include:

Lower relative cost of business

transformation explorations

Speed of validation of potential scenarios

No disturbance to current operations

Page 8: BPM Conference Portugal 2013 - Denis Gagné "Business Process Simulation: How to get value out of it"

Types of Process Analysis

using Simulation

Structural Analysis

The structural aspects (configuration) of a process model

Usually Statistical Analysis (using static methods)

Capacity Analysis

The capacity aspects of a process model

Usually Dynamic Analysis (using discreet simulation

methods)

Page 9: BPM Conference Portugal 2013 - Denis Gagné "Business Process Simulation: How to get value out of it"

When is Numeric Simulation

most Appropriate

Capacity analysis of processes that potentially are

Highly Variable

Variability makes outcomes difficult if not impossible to predict

Interdependent

Changes in one process affect other processes

Complex

Complex structure or complex behavior

Capacity Constraints

Hard resources constraints (as independent variables)

Page 10: BPM Conference Portugal 2013 - Denis Gagné "Business Process Simulation: How to get value out of it"

Process Improvement Project

using Simulation

Get the Goal Right

Clearly define the goal or problem to be investigated using

simulation

Clearly state the objectives of the simulation investigation

Match Expertise to Desired Experimentation

Different levels of Investigation Complexity

Get the Model Right

Model Granularity

Model Parameterization

Page 11: BPM Conference Portugal 2013 - Denis Gagné "Business Process Simulation: How to get value out of it"

Clearly Define the Goal

Intentions Examples

Reduce headcounts or expenses

Improve process predictability or reliability

Increase throughput

Increase output

Ensure SLA

Design the Experiment Accordingly

Independent vs dependent variables Same process model under different parameterisations

Different process models under same parameterization

Number of distinct model settings to be run

The experiment should provide insight

The experiment should help inform a decision

The experiment should be in response to clearly defined objectives

that are relevant to a decision

Page 12: BPM Conference Portugal 2013 - Denis Gagné "Business Process Simulation: How to get value out of it"

Expertise vs Experimentation

Verify Process Structure and logic

Optimization

Learning via Experimentations

Quantitative

Analysis

Novice

Expert

Expert

Novice

Process Modeling

Simulation

Page 13: BPM Conference Portugal 2013 - Denis Gagné "Business Process Simulation: How to get value out of it"

Model Granularity

Pick the right level of process model abstraction e.g. What is an atomic task

For example a certain level of details may suitable to

compare relative throughput of alternative process designs

while not be detailed enough to provide reliable prediction

of actual throughput

Page 14: BPM Conference Portugal 2013 - Denis Gagné "Business Process Simulation: How to get value out of it"

Model Input Parameterization

Setting Input parameters for process model elements to reflect external

stimulation e.g. Arrival Patterns

When randomness is introduced replications should be used

Replication = same scenario but with different sequences of random

variables e.g. repeated coin toss

Warm up periods may be required

Reflect the notion of work in progress (WIP)

Time during which results are either not collected, or which can be

separated off from the main results collection period e.g. A bank (opens empty and idle each day) model does not require warm-up (and indeed should not have warm-

up). Common examples of situations requiring warm-up are manufacturing in general, hospital emergency rooms,

24-hour telephone exchanges, etc

Page 16: BPM Conference Portugal 2013 - Denis Gagné "Business Process Simulation: How to get value out of it"

When Examining Results

Unexpected result are not necessarily a problem

Primary reason for your simulation experimentation

Need to find an explanation

Will provide enlightenment of actual process behavior

vs assumed process behavior

Unexplainable results are a problem

Simulation is often a process of discovery

Page 17: BPM Conference Portugal 2013 - Denis Gagné "Business Process Simulation: How to get value out of it"

BPSim Scope

Complements existing process modeling standards

“Not Reinvent the Wheel”

Page 18: BPM Conference Portugal 2013 - Denis Gagné "Business Process Simulation: How to get value out of it"

Why BPSim

Encourage wider adoption of simulation within BPM

community through a standards led approach

Process simulation is a valuable technique to support process

design, reduce risk of change and improve efficiency in the

organisation

Provide a framework for the specification of simulation

scenario data and results as a firm foundation for

implementation

Open interchange of simulation scenario data between

modeling tool, simulator, results analysis/presentation tool

Page 19: BPM Conference Portugal 2013 - Denis Gagné "Business Process Simulation: How to get value out of it"

BPSim Element Parameters

Each element parameter of a scenario references a specific element of

a process within the business process model

Each element of the business process model may be parameterized

with zero or multiple element parameters

P

Perspectives TimeParameters

ControlParameters

ResourceParameters

CostParameters

InstanceParameters

PriorityParameters

Page 21: BPM Conference Portugal 2013 - Denis Gagné "Business Process Simulation: How to get value out of it"

Business Process Simulation

Best Practices

The Right Model for the Right Goal Align Modeling Objectives with Simulation Objectives

Abstraction

Fidelity

Validity (soundness and completeness)

The Right Answer to the Right Question Make sure to instrument your business process model with parameters that

are actual indicators (influencers) of what you wish to explore

The Right Expert for the Right Task Although conceptually simple to grasp, successfully (meaningfully) using

numerical simulation for business modeling still requires some expertise

(Advanced Mathematical Skills)