Introduction to BPM

Introduction to BPM

1. Art and science of how work is performed and take advantage of improvement opportunities

   • Managing entire chains of events, activities and decisions
     • Processes
       • Examples for most organizations
         • Order to cash
           • Start
             • Customer submits an order to purchase a product or service
           • End
             • Product or service is delivered to the customer, and this last one pays for it
         • Quote to order
           • Start
             • Supplier receives a RFQ from customer
           • End
             • Customer places a purchase order
         • Procure to pay
           • Start
             • Someone determines a product or service needs to be purchased in an organization
           • End
             • Product or service is delivered and paid
       • Involves
         • Decision points
           • Affects
             • Execution of the process
               • Outcome(s)
                 • Should deliver value
         • Number of actors
         • Physical objects
         • Immaterial objects

2. Examples of Improvement:

   • Reducing costs
   • Reducing execution times
   • Reducing error rates

3. Related disciplines

   • Total Quality Monagement
     • Continuously improving quality of products
   • Operations Management
     • Managing the physical and technical functions of an organization
       • Production
       • Manufacturing
   • Lean
     • Elimination of waste
   • Six Sigma
     • Minimization of defects

4. BPM Lifecyrcle

   • What business processes are we intending to improve
     • Operational problems?
   • Phases
     • Process identification
       • Business problem identify
         • Processes relevant
       • Outcome
         • New process architecture
     • Process discovery
       • as-is process modeling
       • Document relevant current state process
     • Process analysis
       • as-is process issue
         • Identify
         • Documented
         • Quantified by performance measures
       • Output
         • Structured collection of issues
     • Process redesign
       • Identify changes to address the issue
       • Multiple options are analized
       • Output
         • to-be process model
     • Process implementation
       • From as-is to to-be process model
       • Organizational change management
         • Activities to change the process works
       • Process automation
         • Development and deploy of IT systems
     • Process monitoring and controlling
       • Collect relevant data
         • Analyzed it
         • Performance measures