Introduction to BPMN (with examples)anna.lamek/ZAJECIA/BPM/BPMN_intro.pdf · Introduction to BPMN (with examples) Source of the presentation: Prof. Marlon Dumas materials (BPMN expert)

Introduction to BPMN (with

examples)

Source of the presentation: Prof. Marlon

Dumas materials (BPMN expert)

1

Dumas, La Rosa, Mendling & Reijers: Fundamentals of Business

Process Management, Springer 2013

What is a Business

Process?

3

ObtainPO

confirm.

Prepare shipment

Scheduledelivery

Issue invoice

Check Invoice

Loadtruck

Check &confirm

PO

Notify shipment

Unload truck

Package products

Issuedelivery receipt

Request PO change

Match incomingpayment

Schedulepayment

4

Financial

Human

Resource

s

Technolog

y

Organisation

Function

AFunction

B

Function C

Assets &

Partners

Customers

Materials

Business Process

Business Process

Business Process

Business processes

5

ObtainPO

confirm.

Scheduledelivery

Unloadtruck

Issuedeliveryreceipt

Checkinvoice

Schedulepayment

Check &confirm

PO

Packageproducts

Loadtruck

Notifyshipment

Issueinvoice

Matchpayment

Paymentmade

POreceived

POissued

Goodsarrived

6

a chain of events, activities and decisions

...involving a number of actors and objects,

….triggered by a need

and leading to an outcome that is of value to a customer.

Examples:

• Order-to-Cash

• Plan-to-Produce

• Purchase-to-Pay

A business process is…

7

Transformation

Process

Input

Resource:

-Capital

-Material

-Machines

-Installations

-Labour, HR, HCM

-etc.

-Product

-Services

-Trainings

-Consulting

-Sales revenues

Business process as a tranformation process

Output (End-product)

fault-to-resolution process

VA

LU

E

Customer

InsuranceCompany

Parts

StoreService

Dispatch

Centre

Technician

Customer

Call Centre

Customer

“My washing machine doesn’t

work…”

9

Negative outcomes (value-reducing):

• Fault not repaired in a timely manner

• Fault repaired but customer pays more than

expected

Positive outcomes (value-creating):

• Fault repaired with minor intervention

• Fault repaired, covered by warranty

What is Business

Process

Management?

And why should I

care about it?

10

Process performance

If you had to choose between two

services, you would typically choose the

one that is:

• F…

• C…

• B…

Process performance

If you had to choose between two

services, you would typically choose the

one that is:

• Faster

• Cheaper

• Better

Process performance

Three dimensions of process performance

• Time

• Cost

• Quality

Greet &

seat

Take

order

Bring

menu

Serve

meal

Present

bill

Issue

invoiceCustomer

paid

Customer

arrived

Improving process performance

14

How would you improve this

process?

15

Eliminate Cooking

Outsource to Customer Standardize

Eliminate Waiters

Invest and Build

Automate

Re-sequence

Business Process Management (BPM)

Body of principles, methods and tools to

design, analyze, execute and monitor

business processes, with the aim of

improving their performance.

16

Business

Processes

IT systems

Employees

Data Trading

Partners

SuppliersIT infrastructure

Customers

Why BPM?

“The first rule of any technology used in a business

is that automation applied to an efficient operation

will magnify the efficiency.

The second is that automation applied to an

inefficient operation will magnify the inefficiency.”Bill Gates17

In other words…

18

InformationTechnology

Process

Change

Yields

Yields

BusinessValue

Index Group (1982)

Enables

Why BPM

19

How to go about

BPM?

20

The BPM lifecycle

21

Process identification

Conformance and performance insights


Processmonitoring and

controlling

Executable processmodel


Processimplementation To-be process

model

To-be process model

Processanalysis

As-is processmodel

As-is processmodel

Process discovery

Process architectureProcess architecture

Processredesign

Insights onweaknesses and

their impact


their impact

Process identification steps1. Designation step

–Enumerate main processes

–Determine process scope

2. Prioritization step (aka Process selection)Prioritize processes based on:

– Importance

–Health

–Feasibility

After Davenport (1993)

Process

Architecture

Prioritized

Process

Portfolio

Process Enumeration

“Most businesses have just three core processes:

1. Sell stuff

2. Deliver stuff

3. Making sure you have stuff to sell and deliver”

Geary Rummler

Porter: Components of a

process architecture

Core Processes

Management

Processes

Supplie

rs / P

art

ners

Custo

mers

/ Sta

kehold

ers

Support Processes

After Michael Porter (1985)

Example: core, support and management

processes

Core processes

• Sales (lead-to-quote, quote-to-order, order-to-cash)

• Direct procurement (supplies replenishment)

• Production (planning and excution)

Support processes

• Indirect procurement (parts replenishment, operational resources replenishment…)

• HR (policies update, recruitment, induction, probation, performance appraisal and professional development…)

• …

Management processes

• Suppliers management (suppliers planning, suppliers acquisition…)

• Logistics management (logistics planning, logistics controlling…)

• …

Wholesaler

Strategic

Management

Logistics

Management

Warehouse

Management

Suppliers

Management


FinanceIndirect

procurementIT HR

Core processes

Support processes

WholesalerExample: process architecture

Demand

Management

SalesDirect

procurementDistribution

ServiceMarketing

Process

group

Strategic

Management

Corporate

Development

Investor

Relations

Risk Assessment & Management

Market

Development


Marketing & Sales

Underwriting

Management

Policy

Servicing

Claims

Management

Payments Collection and Disbursement

Assets Management

Finance/

Treasury

Legal/

AuditReinsurance IT HR

Core processes

Support processes

Insurance companyExample: process architecture

Prioritization (aka Process

Selection)1. Importance

Which processes have greatest impact on the organization‘s

strategic objectives?

2. Health (or Dysfunction)Which processes are in deepest trouble?

3. FeasibilityWhich processes are most susceptible to successful process

management?

Prioritized process portfolioHammer, Champy (1993)

The BPM lifecycle

29





controlling




model

To-be process model

Processanalysis

As-is processmodel

As-is processmodel

Process discovery


Processredesign


their impact


their impact

Business process model

30

ERP

Senior Finance Officer

Finance

Department

Check

Invoice

Mismatches

Enter

Invoice

Details

mismatch

exists

no

mismatches

Block

Invoice

Invoice

receivedInvoice

posted

Post Invoice

Invoice

blocked

Invoice InvoiceReport

InvoiceInvoice DB

Invoice handling example

The BPM lifecycle

31





controlling




model

To-be process model

Processanalysis

As-is processmodel

As-is processmodel

Process discovery


Processredesign


their impact


their impact

Qualitative process analysis

32

Root-cause analysis example

Quantitative process analysis

33

Process simulation example

The BPM lifecycle

34





controlling




model

To-be process model

Processanalysis

As-is processmodel

As-is processmodel

Process discovery


Processredesign


their impact


their impact

Process redesign

35

AS-IS process model TO-BE process model

Cost

Quality

Time

Flexibility

The BPM lifecycle

36





controlling




model

To-be process model

Processanalysis

As-is processmodel

As-is processmodel

Process discovery


Processredesign


their impact


their impact

Process implementationProcess

automation

Executable process design

Configuration & coding

Testing

...

Process change

management

Job redesign

Training

Performance

management plan

….37

The BPM lifecycle

38





controlling




model

To-be process model

Processanalysis

As-is processmodel

As-is processmodel

Process discovery


Processredesign


their impact


their impact

Process monitoring

39

Dashboards, alerts & reports

Model-based analytics (p. mining)Event

streamDB logs

Roles in the BPM lifecycle

40





controlling




model

To-be process model

Processanalysis

As-is processmodel

As-is processmodel

Process discovery


Processredesign


their impact


their impact

BPM group

Developer

Process

owner Analyst

Process

participants

System

admin/operati

ons team

Your turn• Think about key activities of your organization and a

processes in this organization:

– What kind of start-up enterprise you are?

– What is your proposition of new machine (value proposition)? How

you want to create your prototype (ideas, concepts, methods, tools)

– Try to identify groups of processes (create a HOUSE for your

company)

– Choose one core process

– Who is resposible for efficiency of this process? (MAIN ACTORS)

– Try to model it as a value chain (VALUE CHAIN only activities

without events/gateways)

– What value does this process deliver to your customer (OUTPUT

IDENTIFICATION)? List at least 3 outcomes of the process.

41

Documents

Introduction to BPMN (with examples)anna.lamek/ZAJECIA/BPM/BPMN_intro.pdf · Introduction to BPMN (with examples) Source of the presentation: Prof. Marlon Dumas materials (BPMN expert)