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What is Process Analysis?

Process analysis is creating an understanding of the activities of the process and
measures the success of those activities in meeting the goals.

Why do Process Analysis?

An analysis generates the information necessary for the organization to make informed decisions assessing the activities of the business. Without it, decisions are made based on opinion or intuition rather than documented, validated facts.

What kind of information that will be generated from the analysis?

• Strategy, culture, and environment of the organization that uses the process (why the process exists)
• Inputs and outputs of the process
• Stakeholders, both internal and external, including suppliers, customers and their needs and expectations
• Inefficiencies within the current process
• Scalability of the process to meet customer demands
• Business rules that control the process and why they must exist
• What performance metrics should monitor the process, who is interested in those metrics and what they mean
• What activities make up the process and their dependencies across departments and business functions
• Improved resource utilization
• Opportunities to reduce constraints and increase capacity

When to Perform Analysis?

The need to analyze a process can be the result of continuous monitoring of processes or can be triggered by specific events.

• Continuous Monitoring
  Managing the business is also routinely reviewed, and the steps are taken to ensure process performance meets the predetermined goals of the organization.

• Event-Triggered AnalysisThe following are just a few of the events that may trigger a process analysis:

–          Strategic Planning

–          Performance Issues

–          New Technologies

–          Start up Venture

–          Merger/Acquisition

–          Regulatory Requirements

Modeling Participants

Models can be created by individuals expressing their personal knowledge or models can be created by groups outlining the scope and depth of the business they are addressing.The participants are: Business strategists, business managers, financial analysts, auditors, and compliance analysts, process performance analysts, requirements analysts, systems analysts.

Modeling Techniques and Tools

•  White Boarding and Flip Charts

Using a white board with erasable markers to draw the process flows and flip charts to capture other information and then later transcribing the results into drawing or modeling and reporting tools is a common method used in workshops, interviews or structured/facilitated modeling sessions.

Smart Board

•  Butcher Paper and Sticky-notes

Another common workshop technique is to cover the walls of a room with taped up Butcher paper and have the workshop participants put removable sticky-notes on the paper until they have arranged the activities into the sequence on which they agree.

•  Drawing Tools and Reports

During or after interviews and workshops, participants capture the process flows and notes using inexpensive drawing tools, such as Visio, PowerPoint or any other electronic drawing tool.

•  Electronic Modeling and Projection

Utilizing electronic drawing or modeling tools and projecting the images to large screens to capture and view the developing models.

Process Simulation

Overview

Simulations require sufficient data which typically allows the process to be mathematically simulated under various scenarios, loads, etc. Simulation can be used to achieve the following:

• Validate a model by demonstrating that real transaction sets, when run through
• the model exhibit, produce the same performance characteristics as those in the
• actual process
• Predict the process design’s performance under differing scenarios (vary the
• number of transactions over time, the number of workers, etc.)
• Determine which variables have the greatest affect on process performance
• Compare performance of different process designs  under the same sets of
• Circumstances

Mock Trials

Mock trials can be similar to events run in a process laboratory. However, mock trials are typically one-off testing events versus the ongoing study and simulation often found in laboratories. Mock trials include running test transactions based on actual or sample data from real processes on an end-to-end basis.

Technical Simulation/Load analysis

Some process simulation tools provide the ability to perform load analysis. For example, simulating peak, average, and valley transaction loads predict impact on cycle time, resource requirements, bottlenecks, etc.

Process Modeling Quality

It is useful to have some standards and measures of quality as it relates to process modeling. The model created should have sufficient detail to explain these following attributes and workflow within and about the process:

•   The business environment including the customers, suppliers, external events or market pressures that effect or interact with the process.

• • The organizational structure which includes the hierarchical or functional view of the organization and how the people work together (this information helps understand who the key decision makers are within the process).

• • The functional or departmental structure of the organization which explains how the functions or departments work together in the process.

• • The business rules which control the decisions that are made during the process and workflow

•  • The activities or actions that take place within the process and who does those actions

Model Validation and Simulation

Perform validation and simulation may be required prior to completing the analysis , as well as to compare the actual output of the simulation results , it may be able to find out how accurate the model.

Modeling Perspectives

Processes can be modeled from many perspectives, this is  an example representation of the different perspectives which may need to be maintained.

• Enterprise Domain

The top perspective is for those who need to see how the enterprise operates overall and that the primary processes are arranged in some category that gives a sense of their interaction.

•  Business Domain

A business view supports each of the process owners who is accountable for and has the authority to address overall process performance.

• Operations Domain

Detail model support manager perspectives who responsible to continuously improve operational performance.

• Systems Domain

A perspective that identifies how work gets done and how the systems support that work is the systems perspective.

• Builder and Operator

The lowest level models support the individuals who have to build all of the support systems to enable work and to operate the systems that are required to continue to perform that work.

These are the benefits of using a standard:

• A common symbol, language, and technique which facilitate communication and understanding
• Standards-based models provide common and consistently defined processes definitions which eases the process of design, analysis and measurement and facilitates model reuse
• An ability to leverage modeling tools based on common standards and notations
• An ability to import and export models created in various tools for reuse in other tools
• Some tool vendors are leveraging standards and notations for developing the ability to be exported from a modeling notation to an execution language (for example BPMN to BPEL)

These are the most commonly encountered model notation:

• BPMN

Business Process Model Notation is a new standard created by the Business Process Management Initiative, a consortium oftool vendors in the BPM market, that is now merged with the Object Management Group (OMG), an information systems standards setting group.

The example of BPMN

•  Flow Charting

Flow charting is widely used and is based upon a simple set of symbol for tasks, decisions, and other primary process elements.

The example of flow chart

•  Swim Lanes

Swim lanes are an addition to the “boxes and arrows” process flow view of flow-charting that show how the work flows across organizational units or is handed-off from one role to another.

The example of swimlane

• Event Process Chain (EPC)

EPC is an ordered graph of events and functions. It provides various connectors that allow alternative and parallel execution of processes.

The example of EPC

• Value Chain

Value chain notation is used to demonstrate a single continuous flow from left to right of the sub-processes that directly contribute  to producing value for the organization’s customers (clients/constituents).

• Unified Modeling Language (UML)

UML provides a standard set of nine or more diagramming techniques and notations primarily for describing information systems requirements.

The example of UML

•  IDEF-0

IDEF-0 is a Federal Information Processing Standard (FIPS) that was developed by the US Air Force for documenting manufacturing processes.

The example of IDEF-0

•  LOVEM-E

LOVEM-E (Line of Visibility Engineering Method – Enhanced) is a notation set and a modeling technique that was developed as part of IBM’s Business Process Re-engineering Methodology.

• SIPOC

SIPOC stands for Supplier, Input, Process, Output, and Customer. It is a style of process documentation used in Six Sigma.

The example of SIPOC

• Systems Dynamics

Systems Dynamics models are “activity on arrow” diagrams rather than “activity on node” diagrams like most of the other notations listed, to describe the enterprise business “architecture” from a dynamic behavioral perspective rather than a static structural perspective.

The example of System Dynamic

•  Value Stream Mapping

Value Stream Mapping is a technique used in Lean Manufacturing, it expresses the physical environment and flow of materials and products in a manufacturing environment.

Process Modeling

Process modeling combines a set of processes and skills which provide insight and understanding of business process and enable analysis, design and performance measurements.

Business Process Modeling

It is the set of activities involved in creating representations of an existing or proposed business process.

• Diagram

A process diagram often depicts simple notation of the basic workflow of a process. The diagram depicts the major elements of a process flow, but omits the minor details which are not necessary for understanding the overall flow of work.

• Map

Mapping implies more precision than a diagram and will tend to add more detail about not only the process, but also some of the more important relationships to other things such as performers (actors), events, results, etc.

• Model

Modeling implies that the representation can be used to represent the performance of what is being modeled and therefore more precision, more data about the process, and more data about the factors that affect its performance. Modeling is often done using tools that provide simulation and reporting capability which is helpful to analyze and understand the process.

• Process Attributes and Characteristics

Processes have attributes and characteristics which describe the properties, behavior,purpose, or other elements of the process. Characteristics enable various analyses of the process performance.

Purpose of Modeling

The objective of process modeling is to create a representation of the process that describes it accurately and sufficiently for the task at hand.

Some of the most common reasons for creating process models are as follows:

• To document an existing process clearly

• To use as a training aide

• To use as an assessment against standards and compliance requirements

• To understand how a process will perform under varying loads or in response to some anticipated change

• As the basis for analysis in identifying opportunities for improvement

• To design a new process or new approach for an existing process

• To provide a basis for communication and discussion

• To describe requirements for a new business operation

Benefits of Modeling

These are some benefits of modeling:

• Models are relatively fast, easy and inexpensive to complete

• Models are easy to understand (when compared to other forms ofdocumentation)

• Models provide a baseline for measurement

• Models facilitate process simulation and impact analysis

• Models leverage various standards and a common set of techniques

BPM Life Cycle

The management practice of BPM may be characterized as a continuous lifecycle (process) of integrated BPM activities.

These are the Life Cycle of BPM:

• Planning and Strategy

This phase sets the plan and strategy for the BPM process to ensure a compelling value proposition for customers.

• Analysis

Analysis assimilates information from strategic plans, process models, performance measurements, changes in the environment, and other factors in order to fully understand the business processes in the context of the overall organization.

• Design

Design activities may look at standardizing or automating current ad hoc activities, while more mature design activities may look at redesign or radically reminding a process, or incremental improvements designed for optimization.

• Modeling

Understanding the process typically involves process modeling and an assessment of the environmental factors which enable and constrain the process.

• Measuring and Monitoring

They provide the information necessary for process managers to adjust resources in order to meet process objectives. And also provide the critical process performance information through key measurements related to goals and value to the organization.

• Transformation

Process transformation implements the output of the iterative analysis and design cycle. It also addresses organizational change management challenges to optimize the process.

Factors that effect to BPM Life Cycle :

• Culture

It includes the organization values, visions, norms, working language, systems, symbols, beliefs and habits that affects the way people and groups interact with each other, with clients, and with stakeholders.

• Leadership

A good leader must influence their staffs to finish their task then achieve the organizational goal.

• Value

Value is something quite real and concrete,to get the value you must think about being of service.

• Belief

Beliefs are nothing more than working assumptions. Belief may or may not be true or even rational. But belief is at the heart of making your leadership work.

BPM Critical Success Factors

•  Alignment of Strategy, Value Chain and Business Process

BPM relies on key business strategies that set the primary direction of the enterprise, usually in terms of value propositions for goods and services delivered to customers.

• Goals

It is an output of an organizations strategic planning efforts, and it is typically decomposed to include functional goals which align an organizations functional areas to overall strategy.

• Executive Sponsorship/Governance

Assign executive leadership responsibility to oversee the performance of key processes in order to optimize the impact on value chain performance.

• Process Ownership

A process owner is responsible for the entire end-to-end process across functional departments.

• Metrics, Measures, and Monitoring

They provide critical feedback on process design, performance, and compliance.

• Institution Practices

Create value for an enterprise and its customers with the organizational practices and mastery of concepts and skills by individuals.

Types of Processes

•  Primary Processes

Primary processes are end-to-end, cross-functional processes which directly deliver value to customers.

•  Support Processes

Support processes are managing resources and/or infrastructure required by primary processes. It does not directly deliver value to customers.Examples of support processes include information technology management, facilities or capacity management, and human resource management.

•  Management Processes

Management processes are used to measure, monitor, and control business activities. Management processes do not directly add value to customers, it ensures the organization operates effectively and efficiently.

Types of Activities

•  Value Added 

Contributing to the process output in a positive way.

• Handoff

Passing control of the process to another department or organization.

• Controls and Control Activities

Controls can assure that the processes behave within desired tolerances to ensure processes achieve goals and adhere to standards, legal, and/or regulatory requirements. Control activities can prevent, detect or correct undesirable conditions or change the flow of a process to ensure that process goals are met.

Description of Business Process Management

• What is Business?

Business is exchanging the goods or services into some valuable things.

• What is Business Process?

Business Process is a set of activities that relates to each other and it happens continuously to get the goal.

• What is Management?

Management is like Planning, Organizing, Actuating, and Controlling something to be more effective and efficient.

So, we can conclude that Business Process Management is a set activity like Planning, Organizing, Actuating, and Controlling the goods or services to reach the goal.

Core Concepts of Business Process Management

• BPM is a management discipline and a set of enabling technologies
• BPM addresses end-to-end work and distinguishes between sets of sub processes, 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