Business Process Management

Benefits BPMN

- More complex role display (swimming pool) and more complex modelling syntag

What are the drawbacks of having no process management?

- Redundancies in stored information - Information is attached to employees. (culture of heroes) - a lot of idle time and inconsistencies due to media breaks across functional departments - unefficient business activities

What is Business Process Reenginieering?

-Developed by Hammer and Champy 1993 - fundamental rethinking radical redesign, dramatic improvements, critical measures "If we could start this company again, what would we do differently?"

When is a model correct?

1. correct syntax: proper use of the modelling method 2. correct semantics: accurate representation of the real aspects

What four fundamental paradigms does Business Process Reenginieering follow?

1.BPR is focused on processes that matter 2.Processes must be consequently focused on the client 3.The corporation must be focused on its core competencies 4.All possibilities of modern information technology need to be used

What do you need to create value in a company?

A management of the company.

What is the difference between a workflow and a process?

A workflow describes how a process in a business will be executed. It is specific and is happening on the lowest level of process definition. A workflow is on the operational level.

What is Business Process Optimization?

BPO analyzes and measures existing processes and finds inefficiencies in the process. Process optimization projects need a clearly defined goal or set of goals •Without specified targets the optimization efforts lack direction •Some targets can contradict each other

What is Kaizen Process Improvement?

Continuous improvement of all business processes with the goal to decrease all kinds of waste. Waste can be in the form of time, material, money etc. Strong employee involvment, focus is process.

What can be areas of improvement in Business PRocess Optimization?

Cost, Time, Quality Reduced complexity and enhanced flexibility

Why is information important in a company?

Information is an important part of production/ Fourth part of production. It could be part of the input and output of a process. Therefore you need to plan it, acquire it and distribute it.

Describe the role of information systems throughout the layers.

Information systems are used to store all business information (product data, costumer data, material data, etc.) and help in the execution of business processes. IS are present throughout all layers of the the information management (strategical, functional, operational, project layer)

What does the KISS principle require?

KISS means Keep it short and simple Functions: Verb + Object Event: Object + Verb (past)

What is Lead Time?

Lead Time is the time inbetween the start and the end of a process? The analysis has the goal to inefficiencies in the process and

Ladder of Process Integration in Business

Level 1: no organized processes, level 2: some organized processes, lvl3: most processes organized, lvl4: process are manageed, lvl5: processes continuously improved

What are challenges of Business Process Optimization?

Loss of money (sunk costs for project) -Loss of process control (if the optimized process does not work as expected) -Employee dissatisfaction / confusion (if no adequate training provided) -Loss of reputation (if customers affected).

Three main management elements

Management of Organization Management of Processes Management of Information/Communication

What are indicators for ineffciencies?

Media breaks - data and information is transferred between systems without automated interface •Change of control - during process execution the employee responsible for a transaction changes unnecessary often •Double-work - some tasks are done more than once in different departments of the corporation •Slack - unproductive use of time

Benefits EPC

More detailed display and distinction between events and functions of a business process

What are 3 actions of Business Process Improvement

Parallelize, Eliminate, Move

What it process segregation?

Partition of into logically sensical subprocesses.

What are pros and cons of BPR

Pro -Completely cuts historically grown habits which are nowadays inefficient and of no further use -Incorporates the advantages of disruptive technologies -If successful - huge gains •Contra -BPR does not value the knowledge inherent in the existing business process - these are discarded -Tends to underestimate the learning effort of the employees to adapt to the new processes -Middle management is seen as obstacle to optimization effort

What can be elements of a process model?

Process Layer Organisational Layer Activity Layer Application Layer Information Layer

Name 3 alternative modelling methods and describe them

Scheer, Ferstl/Sinz, Gadatsch Scheer: Organisational, Functional, Data,Control view Ferstl/Sinz: Performance, Control, Sequence View Gadatsch: Process, Organizational, Activity, Application and Information View.

What is the corellation between Risk and Radicalness and Outreach of a Process Optimisation

The higher the radicalness and outreach of a process the higher the risk.

What is the main goal of business process management?

The main goal of BPM is to improve processes in a business/ optimize the business/ and eventually increase the value creation

What is the role of IT in the Business Process Reenginieering?

The role of IT in the BPR method is to provide 'disruptive technologies'. These are technologies that force companies to reconsider their processes and find new ways of operating. E.g: tracking technology, decision support tools, communication

Describe the role of business processes throughout the layer

The role of business process in the business process management in a corporation is the modelling, organisation, execution, evaluation of all business activities in a corporation. Functional layer of the information management

What are the 7 kinds of waste?

Transportation, Inveotry, Motion, Waiting, Over Processing, Over Production, Defects

What is the difference between a WF scheme and a WF instance? Give examples

Workflow Schema: - Definition of the detailed workflow Workflow Instance: A specific (concrete) execution

What makes a good model?

complete easy to read comparable consistent clear sustainable (KISS model: keep it short and simple)

Why can functional oriented businesses can lead to problems

functional oriented organisation (dedicated department for sales, accounting, manufacturing) can lead to problems -> different forms of waste: idle time, redundant work and media breaks. Therefore functional oriented/unintegrated applications produce redundant or inconsistent date. Enterprise Applications like SAP ERP use unique centralised databases and enable integrated cross functional processes.

Benefits of models:

gives fast overview of activity in company multilayered (contains organisational, process etc. layers) standardised simplified yet accurate depiction of reality

What is a Value Chain Diagram?

hierarchal representation of the business processes in a company. its items are logically sequenced tasks and the diagram is based upon Porter Value Chain concept VCD cannot be used for serious process modelling!

What is Business Process Improvement?

less radical, No radical re-invention of the whole corporation but stepwise optimization of the existing processes. Focus on the target (quality of product)

Limitations of models:

only Abstract, non-practical view on a business acticity undetailed risk of ambiguous message when modelled incorrectly

What is the difference between organisational and operational structures?

organisational structures: - static -hierarchical -show who is responsible - goal is best allocation of tasks operational structures: - dynamic - goal is the optimal execution of tasks - shows what is being done?

Give some process classification

process classification: business processes (sales order process) technical processes (Assembling an engine) business process classification: management process (strategy development) core process (sales order process, marketing etc.) support process (recruitment, compliance)

Whats a business process (5 characteristics)

stepwise execution, logically structured, repeatedly executed, may be dynamic (different routes), cross several organizational units, produces a specific input and outcome

What is business process management?

the modelling, organisation, evaluation and operation of business processes. It wants to shift attention to process-centric thinking.

What are the most important actions for optimizing business processes?

wheel: Process Design -> Process Implementation -> Process Evaluation (always influenced by business strategy and goals)

Give one process classification

y: complexity x: repeatability and structure Single Case for Experts, Periodic Case for Expers, Single Case for Operators, Periodic Case for Operators

Describe this weird blue chart. You know what I'm talking about?