Training Workshop on Business Process Analysis in International Trade Joint Workshop on Trade Facilitation and the Single Window 23-25 September 2015,

Training Workshop on Business Process Analysis in International Trade

Joint Workshop on Trade Facilitation and the Single Window23-25 September 2015, Moscow

Module 1: Preliminary stage. Preparation for the BPA.

1.1. Organization and Management of the BPA

Somnuk Keretho, PhDDirector, Institute of IT Innovation

Kasetsart University, Bangkok

Training Workshop on Business Process Analysis in International Trade, 23-25 September 2015, Moscow @Somnuk Keretho, PhD

Objectives of this session

To understand the basic concept about “what is a project?” and “how to manage a project?” e.g. basic project management

To understand the overall 3 main phaseson how to conduct a BPA project.

To understand basic roles & responsibilities of those who should involve in the BPA project.

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What is a Project?

Definition of a “Project” (* ISO/DIS 21500:2011 Standard)

A project is a unique set of processes consisting of coordinated and controlled activities with start and finish dates, undertaken to achieve an objective.

Achievement of the project objective requires deliverables conforming to specific requirements, including multiple constrains such as time, cost and resources.

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What do we need to manage in a project?[Basic Project Management]

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Time

Cost Resources

Requirements StartDate

FinishDate

Deliverables

Tasks

Managing Risks & Issues

Team & StakeholdersCollaboration


Project Management in general: 4 phases

1. Preliminary (Initiation)

2. Planning (Detailed Design)

3. Implementation 4. Closing

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Project Management Example: Electronic Single Window for Swiss Border Control*

* EA PM Course in Cybernetic Approach to Project Management Bangkok 2015. Prof. Dr. Bogdan Lent (2015)

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BPAis conducted

here.

BPAis needed here.

BPAis needed here.

BPAis needed here.

BPAis needed here.


What is a BPA Project?

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A Business Process Analysis (BPA) is a project to understand, then capture and analyze business processes and their attributes such that improvement recommendations can be provided.

BPA is an important and necessary analysis normally conducted before and during Single Window initiation, planning/design & implementation.

Who involved

Proceduresand Documents

required

Related Rulesand Regulations

Some quantitative

indicators


Why conducting a BPA Project?(Benefits of BPA)

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Three (3) main phases to conduct a BPA Project

1. Defining Scope of and Planning a BPA Project

2. Capturing and Modelling the As-Is Process

3. Analyzing Findings of the BPA andProposing Recommendations for Improvement(Proposing the To-Be Process)

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Ref: Business Process Analysis Guide to Simplify Trade Procedures, Updated 2012, UNESCAP/UNECE. http://unnext.unescap.org


3 Phases (6 steps) & Deliverables of a BPA Project

Step Deliverable

Step 1: Define project scope

Use case diagram illustrating business domain, process areas, process participants, and key business processes

Step 2: Develop a detailed plan and secure resources

Detailed project plan including an estimation of human resources required, schedules, and software supported tools A list of potential interviewees and their contact information

Step 3: Acquire background information

A folder of background information about the business processes under the investigation A list of guiding questions for the interview

Step4: Conduct interview and document captured data

A set of activity diagrams illustrating activities that come in a specific order and decision points, actors who perform those activities, defined inputs and outputs of each activity, criteria for entering and exiting the business process, relationships among actors, and information flow A set of business process descriptions that describes activity diagram and lists all related rules and regulations Activity diagram illustrating integrated processes in the business domain Time-Procedure chart displaying time required to complete each business process

Step 5: Analyze the “as-is” processes and identify bottlenecks

A set of observations of the as-is business processes that have the potential for improvement

Step 6: Develop and propose recommendations

Final report with recommendations which may include diagrams of “to-be” business processes

Phas

e I

Phas

e II

Phas

e III

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Several roles & responsibilities are neededfor conducting a BPA project plan.

Project Sponsor (PS): an authorized person(s)/organizations (who has the authority) who can

grant the necessary resources and takes the ownership of the deliverables

of the BPA project, e.g. by escalating it for actual implementation. Project Manager (PM):

A person who is assigned to manage the BPA project, e.g. planning, staffing and controlling this BPA project.

Process Analysts (PA): A person(s) who collects data related to the processes, documents/models

those processes, identify bottlenecks, and propose improvement recommendations.

Domain Experts (DE) - Stakeholder Organizations: Those who are knowledgeable about some specific processes,

documentation requirements, practices and laws/regulations related to the scope of the BPA project – providing information, verify and validate the findings as captured and proposed by PA.

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BPA

core

team

Sta

keh

old

ers

Training Workshop on Business Process Analysis in International Trade, 23-25 September 2015, Moscow @Somnuk Keretho, PhD 12

Activities for Planning a BPA Project

Project Sponsor

Process Analysts

1.2) Develop a detailedplan and secure

resourcesProject Manager/Project Leader

Objective – To develop a detailed work plan that helps guide and manage the implementation of a BPA project

(WBS – Work Breakdown Structure Approach for planning by breaking the works down into several tasks, and several work products (deliverables).

Project Manager/ Project Leader Project Sponsor

Identify tasks and their sequence

Estimate efforts

ProjectDetailed Plan

Process Analysts

Develop projectschedule

Assign processanalysts

Derive thedetailed plan

Review and provide feedback

Review and provide feedback

Unacceptable

Approve

Acceptable

Unacceptable

Use Case Diagram

Acceptable


WBS 5 – Administrative/Project Tracking Work-Monthly progress report

WBS 1 – Refine the scope of the project- Develop the detailed plan

Project Start Date

Project End Date

WBS 2– Collect information- Capture & Document

the process

An example: a BPA Project Plan

Month 1 Month 2 Month 4Month 3

WBS 3– Analyze and identify bottlenecks- Provide recommendation for improvement

WBS 4– Wrap-up &

submit the final report

Several iterations of verification & validation

(refinement)


Identifying BPA Project Tasks Develop a work breakdown

structure for a BPA project A work breakdown structure is

an output-oriented description of project tasks. It typically starts with outputs.

The work components of outputs are then broken down into tasks necessary to achieve them.

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Ref: Business Process Analysis Guide to Simplify Trade Procedures, Updated 2012, UNESCAP/UNECE. http://unnext.unescap.org


Identifying BPA Project Tasks

Use the Business Process Analysis Guide to Capture and Simplify Trade Procedures, as an input for identifying BPA tasks for each output Activity 3.1 – 3.3 and Activity 4.1 – 4.7 for the

modeling of activity diagrams describing core business processes represented by use cases in the use case diagram

Activity 4.8 – 4.10 for the development of process description for all activity diagrams

Activity 4.11 – 4.14 for the development of an integrated activity diagram

Activity 4.12 – 4.14 for the development of time-procedure chart

Activity 4.15 – 4.16 for the consolidation and submission of output no. 1 – 4 to project sponsor for perusal

Activity 5.1 – 5.4 for the identification of bottlenecks

Activity 6.1 – 6.4 for the development of recommendations and/or new business processes

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Small activities may be grouped into one prior to the estimation of efforts for a BPA project.

The number of key business processes and stakeholders involved in each business process must be taken into account when estimate time required for elaborating them into activity diagrams.


Use Case Diagram as an Input for Estimating Time Required to Complete Tasks to Product Output 1 and 2

Source: Case Study – Thailand’s Export of Frozen Shrimp


Estimating Efforts for a BPA Project

* Project Evaluation and Review Technique

Task/Activity(Shrimp Case)

Predecessor Optimistic Time (day)

Most-Likely Time (day)

Pessimistic Time (day)

Estimated Time (day)

A 3.1-3.3 None 5 8 10 7.83

A 4.1-4.2 A 3.1-3.3 2 4 5 3.83

A 4.3 A 3.1-3.3 2 3 5 3.16

A 4.4 A 4.1-4.2, A 4.3 3 5 10 5.5

A 4.5 A 4.4 3 4 10 4.83

A 4.6 A 4.5 5 8 10 7.83

A 4.7 A 4.6 1 1 2 1.16

A 4.8 A 4.7 3 4 10 4.83

A 4.9 A 4.8 5 8 10 7.83

A 4.10 A 4.9 1 1 2 1.16

A 4.11 A 4.10 2 4 5 3.83

A 4.12 A 4.10 1 1 2 1.16

A 4.13 A 4.11, A 4.12 5 8 10 7.83

A 4.14 A 4.11, A 4.12 1 1 2 1.16

A 4.15 A 4.7, A 4.10, A 4.14 1 1 2 1.16

A 4.16 A 4.15 1 1 5 1.66

Task Estimate = Optimistic Time + (4 * Most Likely Time) + Pessimistic Time 6(PERT*)


Developing Project ScheduleTask/Activity

(Shrimp Case)Predecessor Estimated

Time (day)Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7

M T W T F M T W T F M T W T F M T W T F M T W T F M T W T F M T W T F

A 3.1-3.3 None 7.83

A 4.1-4.2 A 3.1-3.3 3.83

A 4.3 A 3.1-3.3 3.16

A 4.4 A 4.1-4.2, A 4.3

5.5

A 4.5 A 4.4 4.83

A 4.6 A 4.5 7.83

A 4.7 A 4.6 1.16

A 4.8 A 4.7 4.83

A 4.9 A 4.8 7.83

A 4.10 A 4.9 1.16

A 4.11 A 4.10 3.83

A 4.12 A 4.10 1.16

A 4.13 A 4.11, A 4.12 7.83

A 4.14 A 4.11, A 4.12 1.16

A 4.15 A 4.7, A 4.10, A 4.14

1.16

A 4.16 A 4.15 1.66


Managing risks

Identifying risks that could make some delay or some damages to the project (anything affecting badly on quality, time, and cost of the project).

Analyzing the possible likelihood of occurrence (1-5) and its negative impact (1-10) for each risk (if that risk occurs).

Mitigating those risks with the high value of likelihood multiplying with its impacts (say, more than 20) --> mitigation actions and plans for those risks should be developed.

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Skills needed for Process Analysts Technology skills: The basic knowledge of UML notations, especially in

use case diagrams and activity diagrams is desirable. Related work experience is complementary.

Business/ organization skills: It is important that the selected process analysts know or have an access to the individuals of the business domain under investigation. It is also very useful if they have knowledge of a particular organization or industry associated with the targeted business domain.

Interpersonal/ communication skills: Process analysts’ ability to effectively communicate and interact with other project members is mostly crucial to project success. They should have the ability to create and sustain reasonably good relationships with project stakeholders and especially Process Participants/Business Domain Experts.

Analytical skills: Process analysts should be able to capture relevant information from verbal expression and written documents, and then formalize them in various types of BPA output.


Practical Exercise 1 – Preparation for the BPA Project

Breaking out into small groups by countries, and in each group – please perform the following tasks:

[Suppose that each group is an initial core team to initiate and will actively involve in conducting a BPA project, as part of the Single Window initiative for international trade improvement in the country)

1. Discuss and propose the stakeholders/institutions who should be the authorized sponsor to officially create/endorse the BPA project, and take the ownership of the deliverables/outputs of the BPA project to escalate/push them further for actual implementation/realization.

2. Discuss and propose names/candidates of the BPA core team: Project Sponsor (SM):__________________________________ Project Manager (PM):__________________________________ Process Analysis (PA):__________________________________

3. Identify organizations both governments and business entities which should involve as the stakeholders (and provide/identify domain experts)

4. Identify main stages (phases/steps) for implementing the BPA project.

5. Discuss role of each participant on each stage of the project.

6. (if time permitted) Identify one significant risk in this project and how to mitigate its impact and/or its likelihood of occurrence.

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