Business Process Management Life Cycle For School of Pharmacy

Business Process Management Life Cycle

• Business Process Management requires a clear understanding of the processes

that would be automated.

• The steps in a BPM Life Cycle are:

1. Model

2. Implement

3. Execute

4. Monitor

5. Optimize

http://www.pnmsoft.com/wp-content/uploads/2012/08/bpm-lifecycle.png

Modeling

• The first phase of BPM is to create a model. A model is an object created to represent something else. For example, a globe is a model of the planet Earth.

• During the Model Phase, we begin by creating a high-level diagram of the process. Initially, the goal is to gather just enough detail to understand conceptually how the process works and the main steps involved without being distracted by the fine detail of how it will be implemented.

• Process Modeling encompasses both the identification of existing processes and the design of "to-be" processes.

• Areas of focus include representation of the process flow, the factors within it, alerts & notifications, escalations, Standard Operating Procedures, Service Level Agreements, and task hand-over mechanisms.

• Good modeling reduces the number of problems over the lifetime of the process. Whether or not existing processes are considered, the aim of this step is to ensure that a correct and efficient theoretical design is prepared.

• The proposed improvement could be in human-to-human, human-to-system, and system-to-system workflows, and might target regulatory, market, or competitive challenges faced by the businesses.

• Capture the business processes at a high level.• Gather just enough detail to understand conceptually how the process works.• Concentrate on ensuring the high level detail is correct without being distracted

by the detail of how it’s going to be implemented.

Implement

• Extend the model to capture more detail required to execute the process e.g.

– Recipients

– Form controls and layout

– Email message content

– System integrations

• It is at this point where decisions about how to specifically implement the processes are made.

• To continue our example, while a globe is a model of the Earth, a map provides the detailed directions between two cities and helps you decide which route to travel.

Execution• Instances of the process are launched and interacted with by the end users

• One of the ways to automate processes is to develop or purchase an application that executes the required steps of the process; however, in practice, these applications rarely execute all the steps of the process accurately or completely. Another approach is to use a combination of software and human intervention; however this approach is more complex, making the documentation process difficult.

• Business rules have been used by systems to provide definitions for governing behaviour, and a business rule engine can be used to drive process execution and resolution.

Execution• The Execute Phase of BPM consists of interpreting the instructions

created during the Automate Phase to manage the flow of work from the beginning of the process until its completion.

• Within BPM software, the workflow engine is responsible for creating tasks and automatically directing them to the right people or systems based on the process rules much like the way a GPS system provides you with step-by-step driving instructions to your destination.

• And, while the driver could read directions manually from a map to accomplish the same goal, GPS systems are much more efficient and allow the driver to concentrate on driving rather than worry about navigation.

Monitoring• Monitoring encompasses the tracking of individual processes, so that

information on their state can be easily seen, and statistics on the performance of one or more processes can be provided.

• An example of the tracking is being able to determine the state of a customer order (e.g. order arrived, awaiting delivery, invoice paid) so that problems in its operation can be identified and corrected.

• In addition, this information can be used to work with customers and suppliers to improve their connected processes. Examples of the statistics are the generation of measures on how quickly a customer order is processed or how many orders were processed in the last month.

• From our example, identifying that travel time has increased by 30% might cause you to test an alternate route to avoid the new traffic signals

Optimization• Improve the business process and performance against SLAs by reducing the

bottlenecks/inefficiencies identified during monitoring.

• Simulate these changes using “what-if” simulation. (e.g., changes in rent or materials costs, which determine how the process might operate under different circumstances). It also involves running "what-if analysis" on the processes: "What if I have 75% of resources to do the same task?" "What if I want to do the same job for 80% of the current cost?".

• Determine which changes will deliver the maximum benefit. During the Optimize Phase, managers use data and lessons learned from Manage Phase as a foundation to change the process.

• Optimization may include such things as enhancing the data collection forms, adding or removing tasks, automating steps that were previously completed manually, or modifying the reports generated. The goal of the Optimize Phase is to identify changes that will improve the process.

Continuous Business Process Improvement- The Cycle Continues

• Perhaps the most important aspect of BPM is the one most often overlooked – continuous improvement. As the saying goes, the only constant in life is change. Your firm changes, your environment changes, and your technology changes. Your processes also need to change and evolve to meet your needs.

• It is best to consider the 5 steps of business process management as part of a continuous cycle. Once potential process changes are identified, the cycle begins again and the best suggestions are eventually implemented. In this way, you are able to make continual and incremental improvements to the process

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