Transcript Web Services Choreography Description Language (WS-CDL)

MTAT.03.231
Business Process Management (BPM)
(for Masters of ETM)
Lecture 3
Process Implementation & Monitoring
Marlon Dumas
marlon.dumas ät ut . ee
Agenda for Today
Time
Contents
10.00-11.30
Project Presentations (teams 1-6b)
11.45-13.15
Project presentations (teams 7-12)
13.15-14.15
Lunch break
14.15-15.45
Process Implementation and Monitoring
16.00-17.30
Exam Preparation
2
Business Process Lifecycle Management
• Process identification
•
•
•
•
•
Process modelling (as-is)
Process analysis
Process improvement (to-be)
Process implementation
Process monitoring/controlling
3
3
Process Implementation
Harmon’s Process-centric Enterprise
Architecture
5
Harmon (2004)
Process Implementation
• Organisational Change and Enablement
– User Participation
– User Training
– Change Planning and Management
• IT Implementation
– Custom Software Application
• In-house development
• Outsourced
– Packaged Enterprise System
– Workflow Management System (WfMS / BPMS)
6
IT Implementation – Packaged
Enterprise Systems
Typically classified into:
• ERP: Enterprise Resource Planning, including
– Manufacturing, inventory control, procurement, financials, human
resources
• SCM: Supply Chain Management, including
– Material acquisition (forecasting, planning), logistics/transportation
– Supplier relationship management
• CRM: Customer Relationship Management
– Marketing, lead management, sales
• These functions may come together, or acquired separately
– E.g. Salesforce (mainly CRM), SAP Business Suite, Oracle E-Business
Suite, Microsoft Dynamics AX.
7
What is an ERP System?
• Multi-module application that helps a company manage
key parts of its business in an integrated fashion.
• Key features include:
– standardized environment with shared database independent of
applications and integrated applications
– enables information flow across organizational boundaries to
support common transactions and business processes
– intended to be customized for specific companies
• database configuration
• bolt-on software
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ERP System
Legacy
Systems
Data Warehouse
ERP System
On-Line Analytical Processing
(OLAP)
Bolt-On Applications
(Industry Specific Functions)
Suppliers
Customers
Core Functions [On-Line Transaction Processing (OLTP)]
Sales
&
Distribution
Business
Planning
Shop Floor
Control
Logistics
Operational Database
Customers, Production,
Vendor, Inventory, etc.
© Sumit Lodhia
9
Business Process Execution Engines
Big Vendors
• Oracle SOA Suite
• IBM Websphere Process
Server
• MS BizTalk
• MS Windows Workflow
Foundation
• SAP NetWeaver BPM
Other closed-source
• BizAgi
• Savvion
(Progress)
• Metastorm BPM
• TIBCO
ActiveMatrix BPM
Commercial
Open-Source
• Intalio|BPM
• Activiti
• BonitaSoft
Community
Open-Source
• YAWL
• Enhydra
Shark
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Danske Bank: Customer Package
Process
Create Card
Customer
Create Account
Advisor
Juni 2003
August 2003
Create Credit
October 2003
December 2003
Marts 2007
Introduction of Customer packages.
Word template to collect info
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© Steen Brahe, Danske Bank
Danske Bank: Customer Package
Process
Create Card
Customer
Create Account
Email
Advisor
Juni 2003
Backoffice workers
August 2003
October 2003
December 2003
Create Credit
Marts 2007
Backoffice group created
Handles the creation process
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© Steen Brahe, 2007
Danske Bank: Customer Package
Process
Create Card
Customer
Not valid
Create Account
Advisor
Juni 2003
August 2003
Case Transfer System
October 2003
Backoffice workers
December 2003
Create Credit
Marts 2007
Case Transfer System
Automatic validation and transfering
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© Steen Brahe, 2007
Danske Bank: Customer Package
Process
Create Card
Create Account
Backoffice workers
Customer
Not valid
XML
Advisor
Case Transfer System
Create Credit
Backoffice workers
Juni 2003
August 2003
October 2003
December 2003
Marts 2007
Workflow enabled creation process v. 1
Automatic process control, 0% automated activities
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© Steen Brahe, 2007
Danske Bank: Customer Package
Process
Service
A
Service
B
Service
C
Customer
Not valid
XML
Advisor
Case Transfer System
Create Credit
Backoffice workers
Juni 2003
August 2003
October 2003
December 2003
Marts 2007
Workflow v. 6
80% automated activities
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© Steen Brahe, 2007
Danske Bank – System Architecture
Executable Business Process
A2
A1
A4
A3
WSDL A1
WSDL A2
WSDL A3
WSDL A4
Service Bus / Container
App1: COBOL
App2: PL1
App3: Java
App4: C#
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© Steen Brahe, 2007
Process Monitoring & Controlling
Process Monitoring and Controlling
Process
design
Strengths/
weaknesses
Process
design
Implementation
Process
execution
(Re-)
implementiation
Process
Monitoring &
Controlling
Analysis
Process
execution
© Michael zur Muehlen
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Types of Process Monitoring
• Runtime Monitoring (Business Activity Monitoring)
– Viewing the load of the process
– Identifying problematic cases
– Identifying late cases (risk of missing deadlines), etc.
• Post-mortem Monitoring (aka Business Process Analytics)
– Performance KPIs: cycle times, resource utilization, error rates, …
– Identification of bottlenecks
• See for example:
– BizAgi BAM: http://wiki.bizagi.com/en/index.php?title=Analysis_Reports_BAM
– Analytics: http://wiki.bizagi.com/en/index.php?title=Analysis_Reports_Analytics
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Process Monitoring: Dashboards
Process Cycle
Time
of Order
Processing
Process
Frequency
of Order
Processing
Process Cycle Time
of Order Processing
split up to different
Plants
IDS (2003)
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Process Mining Tools
•
•
•
•
ARIS Process Performance Manager
Percetive Software Reflect
Fujitsu Interstage (BPM Analytics)
ProM (open-source)
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Process Mining – The ProM Framework
supports/
controls
information
system
operational
process
records
refers to
models
configures
process
discovery
(un)desired
properties
process
models
conformance
testing
event
logs
log-based verification
www.workflowcourse.com
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ProM Demo
http://www.processmining.org/
www.workflowcourse.com
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Process Controlling
• Collation and analysis of runtime data
• Comparison of actual- and target data
• Active impact on current process execution as well as
future process modeling (target)
Goal:
Improvement of an enterprise‘s adaptability
to changes in the environment and in the
enterprise itself
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Process Controlling
 Objective:
 Establish a system for controlling the process and providing
feedback to the people involved
Establish Control Points
• Control points are activities such as
– Inspection, verification, auditing, measuring, counting…
– Usually considered business value adding
• Without control points and a control system the only way
of assessing process performance is customer feedback
 The process ends up in a reactive mode
 Poor quality is discovered too late
• Location of control points is determined by
– Criticality – impact on customer satisfaction
– Feasibility – physically and economically possible
Laguna & Marklund
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Process Controlling (cont.)
Develop and Implement Measurements
• Involves answering the questions
1.What is to be measured and controlled?
2.What is currently measured (available data)?
3.Can a business case be made for a new measurement system?
4.What is an adequate sampling method, sampling size & frequency?
• Five measurement categories: Measures of…
–
–
–
–
–
Response time (lead-time, cycle time)
Cost (Quality, PAF, internal and external failure costs)
Conformance (to given specifications)
Service levels (degree of availability, service reliability)
Repetition (frequency of recurring events such as rework)
Laguna & Marklund
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What to Measure?
The Balance Scorecard Framework
After Kaplan & Norton (1992)
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(Investments)
Financial
Learning
& Growth
Internal Process
Stakeholder
Strategy Map: Capture a Cause Effect
Relationship from the Bottom Up
Improved Returns
on Investments
Economic
Model Process
Expand Global
Facility Reach
Facilities and
Fixed Assets
http://www.exinfm.com/
More rapid and
accessible services
Reduce Re-Activities
thru ABC
Leadership
Development
Human Capital
Establish WebBased Self Services
Knowledge
Management
IT Infrastructure
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Examples of Measurements by Perspective
Stakeholder / Customer
•
•
•
•
Current customer satisfaction level
Improvement in customer satisfaction
Customer retention rate
Frequency of customer contact by
customer service
• Average time to resolve a customer
inquiry
• Number of customer complaints
Learning and Growth
•
•
•
•
•
•
Percentage employee absenteeism
Hours of absenteeism
Job posting response rate
Personnel turnover rate
Ratio of acceptances to offers
Time to fill vacancy
http://www.exinfm.com/
Internal Processes
• Number of unscheduled maintenance calls
• Production time lost because of maintenance
problems
• Percentage of equipment maintained on
schedule
• Average number of monthly unscheduled
outages
• Mean time between failures
Financial / Investments
• % of facility assets fully funded for
upgrading
• % of IT infrastructure investments
approved
• # of new hire positions authorized for
filling
• % of required contracts awarded and in
place
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Internal Process
Stakeholder
Extend the Strategy Map with Measures,
Targets and Initiatives
Strategy Map
Faster Service Access
Self Service
Applications
Lean Processes
L&G
Objective
Description
Eliminate waste,
reworks, and
other errors in
our processes
Process and Value
Map Analysis
Investments
Detailed
statement of
what is critical to
successfully
achieving the
strategy
How success in
achieving the
strategy will be
measured and
tracked
Measure
Number of
Reworks
The level of
performance
or rate of
improvement
needed
Target
2 per setup per
month each
Outlet Office
Key action
programs
required to
achieve
objectives
Initiative
Lean / Six
Sigma
Web Enable
Technologies
Invest in IT
http://www.exinfm.com/
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Alignment of Scorecard Components
Make sure the components of your scorecard fit together. We want to
create a tight model for driving execution of your strategy.
Goal
Achieve
Agency
operational
efficiencies
with best
practices in
the private
sector
Objective
Measurement
Reduce
Operational
Service Costs by
50% over the
next 5 years
Cost per Outlet
Office, Cost per
Region, Cost
per FTE
5% - Year 1
10% - Year 2
15% - Year 3
Activity
Based
Costing /
Management
Reduce identified
re-activities
within primary
processes by
80% over the
next 3 years
Waste Volume
Charts, Rework
Tracking, Cycle
Time End to End
in S-LX (5 of 7
Regions)
Waste stream
reductions of
5% each year,
Reworks cut in
half for next 3
years, cycle
time cut by 75%
Lean / Six
Sigma
http://www.exinfm.com/
Target
Initiative
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Exercise
• CVS Case Study
– Which performance measures is your to-be process
intended to improve?
– How would you monitor these performance measures?
– How would you ensure that pharmacies are indeed
applying the principles of the to-be process?
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Reference Models
Performance Measures in SCM
Overall Inventory Turns
Annual cost of goods sold (company info)  average total inventory
Raw Materials Inventory Turns
(manufacturing companies only)
Annual cost of raw materials purchased (3)  average raw material
inventory
Work-in-Process Inventory Turns
(manufacturing companies only)
(Annual cost of raw materials purchased (3) + Annual cost of conversion
(4))  average work in process inventory
Finished Goods Inventory Turns
Annual cost of goods sold (company info)  average finished goods
inventory
Average safety stock  total inventory
Percentage of safety stock
Purchase order cycle time (in days for
purchasing department and excludes
supplier lead time)
Average amount of time (in days) elapsed from point of intention to
place order to receipt of order by vendor
Supplier lead time
Average amount of time (in days) elapsed from point of order to delivery
Supplier on-time delivery
Percentage of orders supplier delivers on scheduled due date
Find more at:
http://www.exinfm.com/workshop.html
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Benchmarking: SCORcards
T. Gulledge & T. Chavusholu: “Automating the construction of supply chain
key performance indicators”, Industrial Management & Data Systems, 2008.
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Recap: The Layers of BPM Activities
BPM Setup
Strategic
Alignment
BPM
Governance
BPM
Methodology
Process-aware
Infom. Systems
Culture &
People
Process
Measurement
Process
Analysis
Process
Improvement
Process
Training
Process
Testing
Change
Management
Process
Perform. Mgt.
Process
Controlling
Process Analysis
Process
Identification
Process
Modelling
Process Implementation
Lean/
Six
Sigma
Process
Configuration
Process
Development
Process Execution and Controlling
Process
Execution
Process
Monitoring
Process
Mining
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BPM’2012 in Tallinn
3-6 September 2012
•
•
•
•
200+ delegates from 40+ countries
12 specialized workshops (3 September)
3 keynotes, 25+ talks, 10+ demos (4-6 Sept.)
BPM Practitioners Day (6 September):
– Case studies & experience reports
– Tutorials (Social BPM, Predictive Analytics for BPM)
http://bpm2012.ut.ee
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Readings
• P. Harmon. Business Process Architecture and
the Process-Centric Company, BPTrends
Newsletter, March 2003.
http://tinyurl.com/c88rlp
• P. Harmon. Business Processes at a New
Company: What Do You Do First?. BPTrends
Newsletter, October 2004.
http://tinyurl.com/cfckrf
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