BUSINESS PROCESS MODELING AND ITS IMPORTANCE IN ERP

IMPLEMENTATION

ENTERPRISE RESOURCE PLANING

• Software system that integrates core business

areas such as manufacturing, distribution,

financial and human resources.

• ERP is a software architecture that facilitates

the flow of information among the different

functions within an enterprise and also sharing

across organizational units and geographical

locations.

ERP SYSTEMS - EVOLUTION

ADVANTAGES OF ERP

• Personnel reduction

• Productivity improvements

• Order management improvements

• Improved planning

• Procurement cost reduction

• Cash management improvements

• Revenue profit increase

ERP IMPLEMENTATION

• Strategic planning

• Assign a project team.

• Examine current business processes and information

flow.

• Set objectives.

• Develop a project plan.

ERP IMPLEMENTATION

• Procedure review

• Review software capabilities.

• Identify manual processes.

• Develop standard operating procedures

ERP IMPLEMENTATION

• . Data collection & clean-up

• Convert data.

• Collect new data.

• Review all data input.

• Clean-up data.

ERP IMPLEMENTATION

• Training and testing

• Pre-test the database.

• Verify testing.

• Train the Trainer.

• Perform final testing.

ERP IMPLEMENTATION

• Go live and evaluation

• Develop a final Go-Live Checklist.

• Evaluate the solution.

CHALLENGES OF ERP IMPLEMENTATION

• The lack of alignment between the

organization strategy, structure, and

processes

• Improper project design

• Lack of support from top level management

• Unrealistic goals and targets

• Poor communication

CHALLENGES OF ERP IMPLEMENTATION

• Incompatibility of various application

• Inadequate training and support

• Lack of in house skills and the chosen ERP

application

BUSINESS PROCESS

• Collection of related, structured activities

or tasks that produce a specific service or for

a particular customer or customers.

Three main types of business processes:

• Management processes

• Operational processes.

• Supporting processes

PROCESS MODELING

• Process model: any abstract representation

of a process

• Process: modeling tools provide a way to

describe a business process so that all

participants can understand the process

PROCESS MODELING

• Advantages of process models

• Graphical representations are usually easier to

understand than written descriptions

• Provide a good starting point for analyzing a

process

• Participants can design and implement improvements

• Document the business process

• Easier to train employees to support the business process

BUSINESS PROCESS MODEL

• Diagram representing a sequence of

activities

• Shows events, actions and links or

connection points, in the sequence from end

to end

• Final output is improvement in the way that

the business process works

BUSINESS PROCESS MODEL

• Two different types of Business Process

Models:

• the 'as is' or baseline model (the current situation)

• the 'to be' model (the intended new situation) ,

BUSINESS PROCESS MODEL

• Developing the models follows the sequence:

• Identify the process and produce an 'as is' or baseline

model.

• Review, analyze and update the 'as is' process model.

• Design the 'to be' model.

• Test and implement the 'to be'.

• Continuously update and improve the new model.

BUSINESS PROCESS MODELING

• The aim of modeling is to illustrate a

complete process, enabling managers,

consultants and staff to improve the flow and

streamline the process.

BUSINESS PROCESS MODELING

• The outcomes of a business process modeling

project are:

• value for the customer

• reduced costs for the company, leading to increased

profits.

•  increased competitive advantage,

• market growth

• better staff morale and retention.

BUSINESS PROCESS MODELING TOOLS

• Provide business users with the ability to model

their business processes, implement and

execute those models, and refine the models

based on as-executed data.

• Provide transparency into business processes,

as well as the centralization of corporate

business process models and execution

metrics

USE CASE DIAGRAMS

1. Use case diagrams created by Ivar

Jacobson, 1992.

• In software and systems engineering, a use

case is a list of steps, typically defining

interactions between a role and a system, to

achieve a goal

USE CASE DIAGRAMS

USE CASE DIAGRAMS

• Elements in an use case diagram

• Association

• Actor

• Use Case

• Include Relationships

ACTIVITY DIAGRAM

2. Activity diagrams

• Describe dynamic aspects of the system.

• Activity diagram is basically a flow chart to

represent the flow form one activity to

another activity.

• The activity can be described as an

operation of the system.

ACTIVITY DIAGRAM

ACTIVITY DIAGRAM

• The purposes can be described as:

• Draw the activity flow of a system.

• Describe the sequence from one activity to

another.

• Describe the parallel, branched and concurrent

flow of the system

ACTIVITY DIAGRAM

• Elements in an activity diagram:

• Activities

• Association

• Conditions

• Constraints

ACTIVITY DIAGRAM

• Uses of activity diagram:

• Modeling work flow by using activities.

• Modeling business requirements.

• High level understanding of the system's

functionalities.

• Investigate business requirements at a later

stage.

PROGRAMMING LANGUAGE TOOLS FOR BPM

1. Business Process Model and Notation

• Provides a graphical notation for specifying

business processes in a Business Process

Diagram (BPD), based on a flowcharting technique

• Provides a mapping between the graphics of the

notation and the underlying constructs of execution

languages

BUSINESS PROCESS MODEL AND NOTATION

PROGRAMMING LANGUAGE TOOLS FOR BPM

2. Business process execution language

• Standard executable language for specifying

actions within business processes with web

services

• Define business processes that interact with

external entities through web

service operations

PROGRAMMING LANGUAGE TOOLS FOR BPM

3. XML Process Definition Language

• Format standardized by the Workflow

Management Coalition to interchange

business process definitions between

different workflow products

XML PROCESS DEFINITION LANGUAGE

• Defines an XML schema for specifying the

declarative part of workflow / business

process.

• XPDL is designed to exchange the process

definition, both the graphics and the

semantics of a workflow business process

BUSINESS PROCESS MODELING AND ITS IMPORTANCE IN ERP IMPLEMENTATION

• Business process modeling (BPM) in systems

engineering and software engineering is the

activity of representing processes of an

enterprise, so that the current process may be

analyzed and improved in future

• Vehicle for analyzing and designing business

processes.

BUSINESS PROCESS MODELING AND ITS IMPORTANCE IN ERP IMPLEMENTATION

• Improve process efficiency and quality

• Reduces the risk of your technology, time

and resources investment decisions

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