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ABPMPFEBRUARY 20139:00 a.m. Arrival and networking 9:15 a.m. General Announcements –
Chapter Officers Updates9:30 a.m. Feature Presentation & Facilitated Discussion
"Best Practices in Process Modeling" -Laura Graham
11:30 a.m. Networking12:00 p.m. Adjourn
05/09/2023
PROCESS MODELING AND ANALYSISBEST PRACTICES
• TYPES OF PROCESS MODELS • MODELING NOTATIONS FOR BUSINESS PROCESS DIAGRAMS• APPROACHES TO PROCESS MODELING• USING THE SCIENCE OF BPMN FOR
BETTER BUSINESS PROCESS MODELING AND ANALYSIS • ESTABLISHING CORPORATE BEST PRACTICES AND PROCESS MODELING STANDARDS
PROCESS MODELING AND ANALYSIS BEST PRACTICESLAURA GRAHAM
VICE PRESIDENT, ENTERPRISE PRODUCT GROUPBPM PRODUCT DEVELOPER
INTRODUCTIONSName, title, company
What do you enjoy doing on weekends
What is your favorite sound, word, or phrase
What process modeling tools, BPMS, or workflow applications does your organization use
THE EVOLUTION OF LAURA GRAHAMIndustrial Engineering Six SigmaOperations ManagementProcess ManagementBusiness Process Management
Source: BPM Common Body of Knowledge – Association of BPM Professionals
Software
WHAT IS BPMIs a management discipline enabled by technology
• Continuously monitor and improve business process
• Performance• Visibility• Agility
• Facilitate business innovation• Addresses end to end work
• Delivers value to customer • Distinguishes between
processes, sub-processes, activities, and functions
Requires organizational commitment
PROCESS INNOVATION: LED BY BUSINESS OR IT?
BUSINESS PROCESS MANAGEMENTSUPPORTING TECHNOLOGIES
Business Process Analysis• Modeling: Graphically represent process for analysis• Simulation: Plays what-if scenarios
Business Intelligence (BI)Metrics, information from historical viewpoint
Business Activity Monitoring (BAM)Metrics, information on what’s happening now
Workflow: Automates hand-offs in a manual process
Business Rules Management systems: Makes business rules accessible to business rather than buried in IT code within applications
Business Process Management Suites (BPMS): Supports all aspects of process improvement: includes all of the above plus IT service oriented architecture (SOA)
ONE JOURNEY TOWARDS A BUSINESS PROCESS COMPETENCY CENTER1. Define modeling standards2. Communicate and train3. Establish repository4. Adopt standard improvement
methods5. Formalize competency center6. Add to the tool kit7. Manage re-usable process
service
PROCESS MAPPINGWHY PROCESS MAP
TYPES OF PROCESS MAPSWHY STANDARD NOTATIONAPPROACHES TO MODELING
WHY PROCESS MAPExternal Requirements:
• ISO: Process exists and management for ensuring it is followed and for improving process metrics
• SOX: “Management understands the process, including the IT hand-offs, well enough to understand the point at which a mis-statement could arise” [and works to reduce those risks]
• Other external auditors
Internal Benefits:• Training of new employees• Prioritization and alignment of improvement initiatives – help build the business case• Scope improvement projects – develop project milestones vs. capital appropriate needs
Just because a process isn’t formalized or mappeddoesn’t mean one doesn’t exist
If there is not a clear process, there are usually un-intended consequences
WHAT IS A PROCESS?Process:
• Series of activities that transform something (an input) into something else (output)
• Means of delivering customer value• Living entity that changes over time
Three types:• Operational (or executional)
• Primary / Core • Support
• Managerial (governance)• Planning (strategy)
PROCESS DOCUMENTATIONDiagram (Hand drawn directions)
• Major activities• Overall flow
Map (Google maps)• Provides relationship to other process elements:
• Performers, events, resourcesModel (DoT program for traffic / new light analysis)
• Enables simulation• Requires data gathering and precise details• May consist of multiple documentation types
• Process flows• Process metrics• Data models
TYPES OF PROCESS MAPS – BUSINESS ANALYSIS
Diagram When to UseSIPOC(Supplier, Inputs, Process, Outputs Customer)
High level – identify scope of process, identify sub-processesShow customer / supplier perspectiveCycle time is not important
Value Stream Mapping Typically used for logistics, supply chain, service oriented processesSingle flow processesIdentify waste (non-value add)Data on process metrics available
Business Process (Flow Diagram or Activity Diagram)
Improving business processes: reduce non-value add
Business Process Flow Diagram with Swim Lanes
Improving business processes: reduce non-value addWhen more than one group is responsible for different parts of processWhen responsibilities change / organization alignment needed
Choreography / Collaboration High level, end to end process analysisManaging white space between processesDepicts how processes relate to each other – through messages, or data
TYPES OF ‘PROCESS MAPS’ – SYSTEMS ANALYSISDiagram When to Use
Systems DiagramsData Flow
Systems analysis or data managementDepicts flow of data within systems, where data inputs and outputs occurOrder, sequence of flow, cycle time is not important
State Diagrams Used in systems analysisDepicts behavior of a system, particularly in response to external events
Class Diagram Used in object oriented system designDepicts relationship of objects within a systemRepresents main business objects and/or interactions in a system
Use Case When a system is being designedDepicts who can do what with a system, how system responds Testing of systems is needed
Entity Relationship Diagram When a system or database is being designedDepicts database schema
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Software should be a tool to help users do their job better. This requires that we work hard to understand their job. We need to gain understanding beyond the tasks they must complete and instead strive to understand their goals… Replacing a file cabinet with a computerized file cabinet is not application development, it's called shifting the burden. – Joseph Reddy
“If business processes don’t change when new technology is installed, the investment has less value.” - Ross, Weill, Roberston
WHAT IS ON A PROCESS MAP?ActivitiesDecisionsDependenciesMilestonesErrorsPerformersSystems / ToolsInputs / outputsMetrics
05/09/2023
The modeler makes decisions about the purpose of the model
The interpretation of the model is always up to the reader
All models need to contain a certain amount of rigor to be meaningful
APPROACHES TO PROCESS MODELING When do you model as-is vs. go straight to the to be?
CAPTURING THE “AS IS”Approach Description When to Use
Top Down Start at high level overview of processesDrill down into detail
Scoping a processStrong management understandingClear process ownership
Bottom Up Begin describing at detail levelGroup tasks into sub-processes
One group performs many unrelated tasksMany groups participate in processManagement doesn’t understand process
Event Partitioning
Identify events or triggers to begin workFollow the event, or follow the work
Many groups are involvedHighly manual process, limited databases / systems hand-offs
HOW MUCH TIME DOES IT TAKE TO MODEL/ANALYZE A PROCESS?Enterprise Process Framework
• APQC• Value Reference Model• Architectural Frameworks• SCOR• ITIL
SIPOC: Suppliers Inputs Process Outputs CustomersIGOE: Inputs Guides Outputs Enablers
PROCESS SCOPE DIAGRAM: IGOE: INPUTS, GUIDES, OUTPUTS, ENABLERSProcess =
• Action• Start / trigger• End / result
Inputs• Come from other processes (internal or external)• Types include:
• Physical materials to be transformed• Information to be created, read / reviewed, updated, deleted (CRUD)
Guides: • Come from other processes (internal or external) – planning or managerial processes• Formal or informal policies, rules, regulations, guidelines, best practices, tribal knowledge, etc.
Outputs• Go to other processes (internal or external)• Types include:
• Physical materials to be transformed• Information to be read / reviewed, updated, deleted (RUD)
Enablers• Managed, allocated, acquired, assigned in other processes• Types include:
• People• Technologies• Facilities• Machines
05/09/2023
IGOE EXAMPLEExample: The latest reports shows that it takes us 25% longer to manufacture a product than our competition, and it costs 10% more. Our largest customers are twice as likely to complain about our quality then are smaller ones I want you to make our manufacturing process more efficient, and I want the complaints to stop!
Enablers
Process:Manufacture Product
Sub-processes:Assembly
Test / InspectFix / Repair
Guides
Inputs OutputsOrders,
sequencedMaterials, line
sideWork instructions
EmployeesPlants
Machinery / Tooling
Processes:Receive orders
Schedule ordersOrder materials
Transfer inventoryDesign mfg process
Processes:Hire employeesPay employeesAcquire assets
Final productPaperwork
(certificate of mfg)
Invoice
Processes:Invoice orderDeliver orderVerify receipt
Design tolerancesQuality targets
OSHA regulationsLabor union contracts
Processes:Design product
Manage labor relationsMonitor [OSHA]
regulations
THE VALUE CHAIN GROUP’S VRMExecute
M1Analyze Market
M2Analyze Performance
M3Define Customer Needs
M4Architect Solution
M5Develop Business Case
M6Validate Opportunity
M7Create Product Roadmap
MarketINPUTSCompetitive OfferingsCustomer NeedsPlan, MarketingStrategy, Marketing
INPUTSCompetitive OfferingsProduct Performance Analysis
INPUTSCustomer InterviewsLeads, UnqualifiedMarket Survey
INPUTSCompetitive IntelligenceCustomer TrendsTechnology TrendsVoice of the Customer
INPUTSProduct Design ConceptSupply Chain Design
INPUTSBusiness Case
INPUTSFunding ApprovalMarket TrialValidated Opportunity
OUTPUTSCustomer Density MapCustomer GoalsCustomer SegmentationMarket Dynamics
OUTPUTSBenchmark Data, ProductCompetitive IntelligenceReverse Engineering Reports
OUTPUTSCustomer NeedsCustomer RequirementsCustomer TrendsUnique “Must Haves”
OUTPUTSConcept ClinicPreliminary Brand StrategyProduct Benefits CoreProduct Design Concept
OUTPUTSBusiness CasePreliminary Pricing StrategyPreliminary Volume TargetValue Proposition
OUTPUTSBrand Concept AlignmentMarket TrialValidated Opportunity
OUTPUTSPlan, Plan PositioningProduct Life ExpectationsProduct RoadmapProduct Schedule
R1Define Research Opportunity
R2Forecast Technology
R3Acquire Technology
R4Define New Technology
R5Validate Technology
R6Protect Technology
R7Transfer Technology
R8Introduce Technology
ResearchINPUTSCompetitive IntelligenceIndustry Research ReportsNew Technology StandardsProduct Usage Analysis
INPUTSBenchmark Data, ProductCompetitive IntelligenceCustomer SurveyTechnology Requirements
INPUTSCompetitive IntelligenceTechnology Life ExpectancyTechnology Impact AnalysisTechnology Viability Analysis
INPUTSAcquired TechnologiesIntellectual PropertyResource AvailabilityTechnology Requirements
INPUTSAcquired TechnologiesResearch PrototypesIntegration RequirementsTest & Validation Equipment
INPUTSField Intelligence DataResearch RegulationsPatent LawsPatent Searches
INPUTSDevelop RecommendationsPatentsResearch PrototypesIntegration Requirements
INPUTSDemo PrototypesTech Integration RequirementsTech Robustness ParametersTech Testing Requirements
OUTPUTSTechnology Requirements
OUTPUTSTechnology Life ExpectancyTechnology Impact Analysis
OUTPUTSAcquired TechnologiesIntellectual PropertyResearch Partnerships
OUTPUTSDevelopment TargetsResearch PrototypesIntegration RequirementsImpact Analysis
OUTPUTSTech Production ProceduresTech Testing ProceduresTech Viability AnalysisValidated Technology
OUTPUTSPatentsRegulatory Requirements Develop
OUTPUTSDemo PrototypesIntegration RequirementsTech Robustness ParametersTech Testing Requirements
OUTPUTSArchitectural DocumentationDevelopment KitsImplementation Standards
D1Define Product Requirements
D2Select Technology
D3Design Product
D4Design Process
D5Validate Product & Process
D6Align Supply Chain
D7Define Product Life Cycle
D8Launch Product
DevelopINPUTSCustomer RequirementsProduct Design ConceptProject BudgetProject Schedule
INPUTSAcquired TechnologiesArchitectural DocumentationImplementation StandardsTechnology Viability Analysis
INPUTSDesign StandardsMaterials LibraryProduct RequirementsProduct Technology Plan
INPUTSProduct Configuration / BOMProduct Specif ication
INPUTSCustomer RequirementsProduct Configuration / BOMProduct RequirementsPrototype / Simulation
INPUTSCapabilit ies, Supply ChainCapacity, Supply ChainChannel AlliancesMarketing Alliances
INPUTSPlan, Market Launch PlanProduct RoadmapValidated Customer ReqValidated Product Req
INPUTSFunding ApprovalProduct Lifecycle PlanValidated Customer ReqValidated Product Spec
OUTPUTSProduct RequirementsSourcing Criteria
OUTPUTSProduct Technology PlanSourcing Criteria
OUTPUTSMaterial Cost EstimatesPacking SpecificationProduct Configuration / BOMService Manuals
OUTPUTSProcess RequirementsProcess ManualsProcess Standards
OUTPUTSEngineering Change RequestTest ResultsValidated Product SpecValidated Process Documents
OUTPUTSSupply Chain Design
OUTPUTSFunding RequestProduct Lifecycle PlanStrategy, Product
OUTPUTSBuild PackageSell PackageSource PackageSupport Package
A1Qualify Supplier
A2Issue Request
A3Evaluate Proposal
A4Negotiation Contract
A5Place Order
A6Receive Order
A7Verify Order
A8Transfer Inventory
A9Process Invoice
AcquireINPUTSTargeted SuppliersSupplier SolicitationsDuns ReportsSupplier References
INPUTSMaterial Cost EstimatesSource CriteriaQualified Supplier ListPreferred Supplier List
INPUTSIT Licensing AgreementsStrategy, Corporate
INPUTSAccepted ProposalContract GuidelinesTerms & Conditions
INPUTSCompleted ContractOrder ConfirmationSchedule, Production
INPUTSAdvanced Ship NoticeSchedule ReceivingShipped ProductShipping Documents
INPUTSReceived GoodsShipping Documents
INPUTSProduct Routing InstructionsReceived Goods, Verified
INPUTSInvoiceReceipt Confirmation
OUTPUTSQualified Supplier ListPreferred Supplier ListSource Criteria
OUTPUTSLoad TenderOpen RFP’sRequest for ProposalRequest for Quotation
OUTPUTSIT Change GuidelinesIT PortfolioRules, Information TechnologyStrategy, Information Technology
OUTPUTSCompleted ContractLicensing RequirementsT&C Revision Request
OUTPUTSOrder ConfirmationPurchase OrderScheduled, Receiving
OUTPUTSReceipt ConfirmationReceived GoodsShipping Documents
OUTPUTSReceipt ConfirmationReceived Goods, Verified
OUTPUTSInventory LocationSpare Parts
OUTPUTSAP EntryPayment Authorization
B1Request Resource
B2Issue Material
B3Build Product
B4Verify Product
B5Package Product
B6Stage Product
B7Release Product
BuildINPUTSMaintenance ScheduleProduction PackageSchedule, Receiving
INPUTSBill of MaterialProduction PackageSchedule, Production
INPUTSEngineering Change NoticeInventory, WIPProduction PackageProduction Standards
INPUTSBuild PackageTest Procedures
INPUTSInventory, Quality VerifiedPackaging Specif icationSchedule, Production
INPUTSInventory Packaged GoodsStorage Instructions
INPUTSInventory, Packaged GoodsReg Compliance Guidelines
OUTPUTSBill of MaterialPurchase Requisit ionRouting InstructionsRequirements, Capital Projects
OUTPUTSInventory, LocationInventory, WIPPerformance Feedback
OUTPUTSEngineering Change RequestInventory, Unpacked GoodsPerformance Feedback
OUTPUTSPerformance FeedbackRouting Instructions
OUTPUTSInventory Packaged GoodsLot CertificationPerformance Feedback
OUTPUTSInventory, Package GoodsPerformance Feedback
OUTPUTSAdvanced Ship NoticeInventory, Finished GoodsPerformance FeedbackSchedule Delivery
F1Order Inquiry
F2Confirm Order
F3Plan Load
F4Receive at Warehouse
F5Fill Order
F6Ship Order
F7Deliver Order
F8Verify Receipt
F9Install & Test
F10Invoice
FulfillINPUTSLoad TenderRequest for Quotation
INPUTSPurchase OrderRFQ ResponseRules, Order Entry
INPUTSCustomer Order RulesPlan, Transportation NetworkSoft Allocation
INPUTSAdvanced Ship NoticeInventory, Finished Goods
INPUTSInventory, Finished GoodsProduction SchedulePlanned LoadsSoft Allocation
INPUTSCarrier Rate TablesConsolidated OrderReg Compliance GuidelinesTransportation Routing
INPUTSBill of LadingOrder ShipmentShipping Documents
INPUTSAdvance Ship NoticeBill of LadingReceipt ConfirmationShipping Manifest
INPUTSInstallation Instructions
INPUTSProof of Delivery
OUTPUTSInventory, LookupRFQ Response
OUTPUTSOrder ConfirmationSoft Allocation
OUTPUTSOrder TriggerPlanned LoadsSoft AllocationTransportation Routing
OUTPUTSInventory, Location
OUTPUTSConsolidated Order
OUTPUTSAdvance Ship NoticeBill of LadingShipped ProductShipping Documents
OUTPUTSBill of LadingShipping Manifest
OUTPUTSProof of DeliveryShipping Documents
OUTPUTSInstallation Records
OUTPUTSInvoice
N1Define Brand Requirements
N2Differentiate Brand
N3Select Channel
N4Architect Brand
N5Validate Brand
N6Protect Brand
N7Assess Supply Network
N8Create Marketing Roadmap
N9Launch Brand
BrandINPUTSCompetitive IntelligenceCustomer SegmentationStrategy, ProductValue Proposit ion
INPUTSBrand Equity PyramidBrand RequirementsMarketing DynamicsUnique Buying State
INPUTSBrand Collaboration ModelCreative NetworkMarketing Partnerships
INPUTSDifferentiation StatementBrand Equity AssessmentBrand Network ModelCorporate Identity System
INPUTSBrand IdentityBrand PrototypePackage PrototypeTesting Criteria
INPUTSIP OpportunitiesPatent DrawingsDesign RequirementsProduct Portfolio
INPUTSMarketing PartnershipsValidated Brand DesignValidated Package Design
INPUTSAdvertising ConceptsMarketing PartnershipsValidated Brand DesignValidated Package Design
INPUTSCommunication StrategyCorporate Identity SystemValidated Brand DesignValidated Package Design
OUTPUTSBrand Equity PyramidBrand RequirementsPerceptual Map
OUTPUTSBrand Differentiation StatementBrand Equity AssessmentCompetitive FocusUnique Selling Proposit ion
OUTPUTSBrand Network Model
OUTPUTSAdvertising ConceptsBrand ArchitectureBrand IdentityBrand Prototype
OUTPUTSQuantitative ResearchValidated Brand DesignValidated Package Design
OUTPUTSFreedom of Use AssessmentIP StrategyPatent ApplicationTrademark Registration
OUTPUTSStrategy, Sales Channel
OUTPUTSCommunication StrategyCustomer ProfileQualification ChecklistPlan, Brand Lifecycle
OUTPUTSPlan, Market LaunchPrice ListSales KitSales Process Template
S1Target Customers
S2Qualify Target
S3Position Solution
S4Develop Relationship
S5Assess Customer Needs
S6Develop Proposal
S7Present Proposal
S8Finalize Contract
S9Win / Loss Review
SellINPUTSBudget, SalesCurrent Customer ListCustomer Density MapCustomer Profile
INPUTSQualification ChecklistPlan, Market LaunchSales KitTarget List
INPUTSAccount Plan, GeneralLeads QualifiedSales KitTactical Sales Processes
INPUTSAccount Plan, DetailedAgreement to EngageCustomer Org StructureSales Kit
INPUTSAccount Plan, DetailedRelationship Management PlanSales Diagnostic ToolsTactical Sales Processes
INPUTSAccount Plan, DetailedCustomer Buying ProcessCustomer ExpectationsRequest for Proposal
INPUTSCustomer Value Proposit ionGo / No Go CriteriaProposed Solution
INPUTSAward Notif icationCompleted ContractT&C Revision RequestTactical Sales Process
INPUTSDead PursuitsLost SalesWon Sales
OUTPUTSPlan, Channel HeadcountPlan, Sales CoverageQualification ChecklistTactical Sales Processes
OUTPUTSAccount Plan, GeneralLeads, Qualif iedLeads, Unqualified
OUTPUTSAccount Plan, DetailedCustomer Contact InfoCustomer Org StructureProduct Advertising
OUTPUTSRelationship Mgnt Plan
OUTPUTSConsensus on ValueCustomer ExpectationsCustomer Needs IdentifiedCustomer Value Proposition
OUTPUTSProposal Solution
OUTPUTSDead PursuitsProposed SolutionLost SalesWon Sales
OUTPUTSTerms & Condit ionsSigned Contract
OUTPUTSWon / Lost Report
U1Register Customer
U2Manage Incident
U3Resolve Problem
U4Process Return
U5Educate Customer
U6Deliver Service
U7Monitor Experience
SupportINPUTSCustomer DataCustomer Profile
INPUTSProduct Failure ReportReg Compliance Guidelines
INPUTSProblem DescriptionReg Compliance GuidelinesRouted Support Query
INPUTSReg Compliance GuidelinesRequest for Return
INPUTSProduct ManualsProcess Manual
INPUTSGuidelines, Cust Notif icationGuidelines, Service BulletinsService ManualsSupport Agreements
INPUTSErgonomic DataField Performance DataProduct Failure Data
OUTPUTSCustomer CRM Record
OUTPUTSProblem DescriptionRoute Support Query
OUTPUTSProposed Solution
OUTPUTSReturn Authorization
OUTPUTSCourse DescriptionsCourse Materials
OUTPUTSService ReportSpare Part Kits
OUTPUTSCustomer SurveyProduct Performance AnalysisProduct Usage AnalysisVoice of the Customer
Plan Govern
PV PV1Identify Value Chain Requirements
PV2Assess Value Chain Resources
GV GV1Set Strategy & Vision
GV2Set Performance Expectations
GV3Set Information Policy
GV4Set Financial Policy
GV5Set Asset Policy
Plan ValueChain
INPUTSCorporate Performance TargetsProduct Lifecycle PlanFunctional Requirements
INPUTSFunctional CapacityCorporate Strategy
GovernValueChain
INPUTSExternal FactorsMarket Dynamics
INPUTSPerformance FeedbackSolution Performance FeedbackVRM ROI, Validated
INPUTSIT Licensing AgreementsStrategy, Corporate
INPUTSPerformance TargetsFunding RequestStrategy, Corporate
INPUTSStrategy, Corporate
OUTPUTSRequirements, Value
OUTPUTSResource Availability
OUTPUTSVision & Mission StatementBusiness ContextStrategy, CorporateSWOT Analysis
OUTPUTSBenchmark GuidelinesImprovement MethodsPerformance TargetsValueCard Template
OUTPUTSIT Change GuidelinesIT PortfolioRules, Information TechnologyStrategy, Information Technology
OUTPUTSBudgetsRules, FinanceStrategy, Finance
OUTPUTSAsset PolicyPersonnel AvailabilityResource Allocations
PV3Align Value Chain Resources
PV4Communicate Value Chain Plan
GV6Set Personnel & Ethical Policies
GV7Set Extended Enterprise Policy
GV8Set Business Change Guidelines
GV9Set Compliance Policy
GV10Set Life Cycle Policies
INPUTSPerformance MetricsResource AvailabilityStrategy, CorporateStrategy, Financial
INPUTSPerformance MetricsStrategy, ITStrategy, OrganizationalStrategy, Value Chain
INPUTSPersonnel RequirementsStrategy, Corporate
INPUTSCorporate Value StatementExternal FactorsSocial & Ethical PolicyStrategy, Corporate
INPUTSChange Prior itization MatrixInternal Factors (Cultural)Training MaterialProject Guidelines
INPUTSGovernmental RegulationsContract PrecedenceInternational Law
INPUTSStrategy, CorporateStrategy, Functional Lifecycle
OUTPUTSFinancial Impact DocPerformance TargetsStrategy, Value Chain
OUTPUTSFunctional Business ObjectivesPortfolio Objectives
OUTPUTSSocial & Ethical PolicyCorporate Value StatementOrganizational Structure
OUTPUTSGuidelines, Due DiligenceGuidelines, Partnership
OUTPUTSChange Guidelines, CorporateProcess DocumentationVRM ModelBusiness Framework
OUTPUTSCorporate PoliciesLegal Guidelines
OUTPUTSStrategy, Organizational Lifecycle
PP PP1Gather PD Requirements
PP2Assess PD Resources GP GP1
Govern PD RulesGP2Govern PD Process
GP3Govern PD Information
GP4Govern PD Treasury
GP5Govern PD Assets
PlanProductDevelop-
ment
INPUTSBusiness Objectives, PDPlan MarketingStrategy, Corporate
INPUTSPersonnel AvailabilityResource Allocation, PD
GovernProductDevelop-
ment
INPUTSCorporate PoliciesResearch RegulationsPatent LawsRegulatory Trends
INPUTSPerformance Feedback
INPUTSExternal StandardsPlan, Information Technology
INPUTSBudget, MarketingFunding RequestPlan, Finance
INPUTSAsset PolicyPatents
OUTPUTSRequirements, PD
OUTPUTSResource Availability
OUTPUTSRules, Product Development
OUTPUTSCapabilities, ResearchCapacity, ResearchPerformance Metrics, PDPerformance Targets, PD
OUTPUTSCurrent Market Strategy
OUTPUTSFunding Approval
OUTPUTSResource Allocations, PDTest & Validation Equipment
PP3Align PD Resources
PP4Communicate PD Plan
GP6Govern PD Personnel
GP7Govern PD Network
GP8Govern PD Change
GP9Govern PD Compliance
GP10Govern PD Life Cycle
INPUTSPerformance Targets, PDRequirements, PDResource Availability
INPUTSChange Guidelines, PDFunding ApprovalRules, PDStrategy, Develop
INPUTSPersonnel RequirementsSocial & Ethical Policy
INPUTSPartnership Guidelines
INPUTSChange Guidelines, CorporateExternal FactorsNew Technology Impact
INPUTSCorporate PoliciesRegulatory Requirements
INPUTSTechnology Lifecycle Expectations
OUTPUTSFunding RequestStrategy, PD
OUTPUTSPersonnel RequirementsPlan, PD
OUTPUTSJob PostingsPersonnel Availability
OUTPUTSPartnership, ResearchPD Partner Policies
OUTPUTSChange Guidelines, PD
OUTPUTSGov Research RegulationsPatent Laws
OUTPUTSStrategy, Product Lifecycle
PS PS1Gather Supply Chain Requirements
PS2Assess Supply Chain Resources
GS GS1Govern Supply Chain Rules
GS2Govern Supply Chain Process
GS3Govern Supply Chain Information
GS4Govern Supply Chain Treasury
GS5Govern Supply Chain Assets
PlanSupplyChain
INPUTSBuild PackageBusiness Objectives, SCCustomer OrdersProcess Requirements
INPUTSPersonnel AvailabilityResource Allocations, SCSupply Chain Design
GovernSupply Chain
INPUTSCorporate Policies
INPUTSPerformance Feedback
INPUTSExternal StandardsInventory LookupPlan, Information TechnologyStrategy, Information Tech
INPUTSBudget, Supply ChainFunding RequestInvoice PaymentPlan, Finance
INPUTSAsset Policy
OUTPUTSRequirements Supply Chain
OUTPUTSResource Availability
OUTPUTSRules, Supply Chain
OUTPUTSCapabilities, Supply ChainCapacity, Supply ChainPerformance Metrics, SCPerformance Targets, SC
OUTPUTSInventory, AvailabilityInventory, Soft Allocation
OUTPUTSFunding Approval
OUTPUTSEquip & Facility HistoryEquip & Facility DispositionMaintenance ScheduleResource Allocations, SC
PS3Align Supply Chain Resources
PS4Communicate Supply Chain Plan
GS6Govern Supply Chain Personnel
GS7Govern Supply Chain Network
GS8Govern Supply Chain Change
GS9Govern Supply Chain Compliance
GS10Govern Supply Chain Life Cycle
INPUTSPerformance Targets, BuildRequirements, Supply ChainResource Availability
Funding ApprovalRules, Supply ChainStrategy, Supply Chain
INPUTSPersonnel RequirementsSocial & Ethical Policy
INPUTSPartnership Guidelines
NPUTSChange Guidelines, CorporateEngineering Change Notice
INPUTSCorporate PoliciesGovernmental Regulations
INPUTSStrategy, BuildStrategy, Product Lifecycle
OUTPUTSFunding RequestStrategy, Supply Chain
OUTPUTSPersonnel RequirementsProduction PackagePlan, Supply Chain
OUTPUTSJob PostingsPersonnel Availability
OUTPUTSPartnerships, Supply Chain
OUTPUTSEngineering Change NoticeEngineering Change Request
OUTPUTSCompliance Guidelines
OUTPUTSStrategy SC Lifecycle
PC PC1Gather Customer Requirements
PC2Assess Customer Resources
GC GC1Govern Customer Rules
GC2Govern Customer Process
GC3Govern Customer Information
GC4Govern Customer Treasury
GC5Govern Customer Assets
PlanCustomerRelations
INPUTSBusiness Objectives, CRPlan, MarketSell Package
INPUTSPersonnel AvailabilityResource Allocations, CRSupply Chain Design
GovernCustomerRelations
INPUTSCorporate Policies
INPUTSChannel Quality AssessmentPrior Sales PerformanceStrategy, Sales
INPUTSBrand ArchitecturePlan, Information TechnologyQuantitative Market Research
INPUTSBudget, Customer RelationsFunding RequestPlan, Finance
INPUTSAsset Policy
OUTPUTSRequirements, Sell
OUTPUTSResource Availability
OUTPUTSGo / No Go CriteriaRules, Customer Relations
OUTPUTSChannel ConstraintsPerformance Metrics, CRPerformance Targets, CR
OUTPUTSCorporate Identify System
OUTPUTSFunding Approval
OUTPUTSResource Allocations, CR
PC3Align Customer Resources
PC4Communicate Customer Plan
GC6Govern Customer Personnel
GC7Govern Customer Network
GC8Govern Customer Change
GC9Govern Customer Compliance
GC10Govern Customer Life Cycle
INPUTSPerformance Targets, CRRequirements, SalesResource Availability
INPUTSChange Guidelines, CRFunding ApprovalRules, Customer Relations
INPUTSPersonnel RequirementsSocial & Ethical Policy
INPUTSPartnership GuidelinesStrategy, Customer Relations
INPUTSChange Guidelines, Corporate
INPUTSCorporate PoliciesGovernment RegulationsLegal Guidelines
INPUTSStrategy, Product Lifecycle
OUTPUTSChannel StrategyFunding RequestStrategy, Sales
OUTPUTSPersonnel RequirementsPlan, SaleSales Forecast
OUTPUTSJob PostingsPersonnel Availability
OUTPUTSChannel AlliancesSales Strategy
OUTPUTSChange Guideline, CRPricing Changes
OUTPUTSContract Guidelines
OUTPUTSStrategy, Customer Lifecycle
VALUE CHAIN RELATIONSHIPS
Product or Service
End Customer
Performing Locations
Order to CashSupply Chain to SettleIdea to Launch
Service Parts
Used Equipment
Direct Materials
Indirect Materials
Business Services and Consulting
Fixed Assets
Internal
OEM
US Govt
Kits
National Account
Distributor
JV
IT SW Licenses
Miami
Mexico
New Equipment
Financial Products
S outh America
IndiaChicago
New York
WHQ
Plants
PDC
JV
New Equipment
After market parts
Financial Services
Service offerings
USA Mexico
End Customer
National Account JV
Distribution Partners Internal
India
Priority Goals
Office Suppliers
Low CostReliability / Quality
Customer Focus
Asset UtilizationAdaptive Innovative Velocity
Every product & service And deliver
IT Technical Solutions
Internal
For a customer
That expects a particular value
IT Solutions
Brazil
OEM
Contract Manufacturing
We develop
Is done a particular way at a location
Variables create a complex hierarchy of processesBuild or assemble
HOW MUCH TIME DOES IT TAKE TO MODEL/ANALYZE A PROCESS?RULE of Thumb:2-4 weeks (depending on experience of process modeler)For EACH level 3 process scenario
Expected output:BPMN diagram that is not executableActivities and flow is accurate – manual, user, and automatedInputs / outputs / data requirements are definedSystems used are identifiedRoles / swimlanes are usedBusiness rules are identified if not completely documented
WHY STANDARD NOTATIONWhat notations of process modeling do you use?How did you select it?
WHY STANDARD NOTATION?
http://www.google.com/search?q=process+models&hl=en&tbo=u&tbm=isch&source=univ&sa=X&ei=hmkUUdyeKYXM9QTT1YGYBg&ved=0CD4QsAQ&biw=1132&bih=658
All models are wrong – some are useful.- Charles Box.
The modeler makes decisions about the purpose of the model
The interpretation of the model is always up to the reader
WHY STANDARD NOTATION?
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WHY STANDARD NOTATION? What is the difference between the diagrams?
Do Work
Do Other Work
Do Still More Work
Do Different
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Do Work
Do Other Work
Do Still More Work
Do Different
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Do Work
Do Other Work
Do Still More Work
Do Different
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Do Work
Do Other Work
Do Still More Work
Do Different
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BENEFITS OF A STANDARD NOTATIONQuickly and clearly communicate:
• Reduces ambiguity • Re-use or reference other process maps / subprocesses
It makes you think • Assists in process analysis• Question simple words like “and”
Enables faster automation• Link between process model and IT code• First step in utilizing BPMS tools
PROCESS MODELING NOTATIONS ACCORDING TO ABPMP CBOKBPMNFlow charting – ANSI standards – loosely definedSwim lanes – Rummler BracheEvent Process Chain (EPC) – activity diagram [UML] or ARIS - syntax
variesValue Chain – VRM notation, SCORUML – activity diagramsIDEF-0LOVEM-E (IBM process methodology)SIPOCSystems DynamicsValue Stream Mapping (TQM / Lean)
05/09/2023
NOTATION OPTIONSStandard Use Pros ConsNo standard Any Easy for creator to do
Adaptable to any toolReaders may have difficulty following what’s happeningNot readily automated
Internal Corporate Standard
Any Can be designed for tools already in-house
Time to develop and gain buy-inNot readily automatedLimited ability to model reality (exceptions, interruptions)
Graham Process Methodology
Business flow diagrams Swim lanesData flow
“Industry standard” Requires specific proprietary SWOutdated?Limited ability – Focused on artifactsNot readily automated
IDEF0 Data flow / Document Maps:Tracking information in/out of processProcesses with clearly defined “rules”
Industry standardSupported by wide variety of tools
Technically detailed – confusing to businessLimited to describe functioning aspects of systems, not business processesNot readily automated
UML Business flow diagramsDocument software systems / Data flow / Document Maps
Industry standardSupported by wide variety of tools
Not readily understood by businessNot readily automated
BPEL Process “Execution”Modeling computing environment with web services
Industry standardSupported by wide variety of toolsEnables process automation
Not readily understood by business
BPMN Business flow diagrams / Swim lanesExecutable processes
Industry standardBusiness and IT orientedSupported by wide variety of toolsEnables process automation
Still evolving
PROCESS MODELING“AS IS” APPROACHES
Start with “happy path”• Include major decisions / check points as normal
process• What business rules / policies are used to direct
process flow?
Add exceptions and errors - At each task ask: • What kinds of errors occur? • What happens if information isn’t available for a
particular task? • When are there exceptions to the rules?
What else does a participant do in a given week? • What causes these tasks to be done?
Represent all “Regularly Recurring” instances
The Problem with the 80-20 Rule:
How many of your process instances
follow the happy path at every decision?80% x 80% = 64%64% x 80% = 51%
TO WHAT LEVEL OF DETAIL?
“When we don’t understand the details• it’s easy to miss inefficiencies.• we may be enabling subversive or counterproductive activity.”
“Detail does not go away because it is ignored. If we intend to engineer our processes we need the detail”
“Detail charts may be intimidating at first glance. However, a chart is a reflection of the process. If the chart is complicated, the process is complicated.” – Ben Graham, Detail Process Charting
To What Degree of Accuracy?
PROCESS HIERARCHY DEFINITIONS AND LEVELS OF DETAIL
Level 0 – Enterprise Process Model:• Visual depiction of ALL value chains used throughout the enterprise and relationships• Identifies core processes • Used in corporate governance / funding approvals – prioritization of projects across value chains• Otherwise known as: Enterprise Reference Model, Process Framework, Business Process Architecture
Level 1 – Value Chain • Provides value to end-customers• Is a chain of processes: Activities within value chain have independent triggers that require coordination to
provide value. • Enables: strategic planning – prioritization of projects within value chains• Otherwise known as : Value Stream, High Level Process; Core Processes
Level 2 – Scenario:• Is a value chain for a specific business unit, product/service, and geographical locations (of customers and
producers)• Used to define operating model: when to differentiate or standardize on process activities
Level 3 – Process• Sequence of repeatable activities, decisions, and events• Enables: Process design and assessment• Otherwise known as: business flow; “low level of process” in process framework” (VRM level 3, APQC level
¾)
PROCESS HIERARCHY DEFINITIONS AND LEVELS OF DETAIL
Level 4 – Activity / Sub Process Level• Sequence of repeatable activities, decisions, and events • Finer grained than process – sub-processes completed within 2 weeks time period (usually less)• Enables: Process design and improvement – discuss sequence of activities, decisions, causes / results of events• Otherwise known as: Activity, Tasks, Function, Service, Sub Process
Level 5 – Finite Tasks• No further break down of activity • Finer grained – activities completed within 24 hours or less (usually minutes). User tasks all completed within a
single “screen” or “session” of an IT application / system.• Enables: Process design and improvement – identify where inputs / outputs / rules / etc. are created and used• Otherwise known as: Activity, Tasks
Level 6 – Finite Tasks for Execution• Activities are associated to data objects with specific data fields identified• Business rules are documented and conditions associated with gateways• Systems are identified for services / integrations
Level 7 – Work level instruction (not really a process)• Activity detail changes with tools, system, or application• Enables: User education of new tools used to improve process performance• Otherwise known as: Training details, user guide; “how” things are done
APPROACHES TO PROCESS ANALYSIS AND PROCESS IMPROVEMENT
“AS IS” ANALYSIS: WHAT DO YOU LOOK FOR?Excessively sequential activities“Yo-Yo” effect: many handoffsExcessive rework
• Decisions late in the process • Multiple loops back• Similar sounding activities
Delays• Lack of SLAs
Is the law of conservation met?• Where are the inputs coming from?
There is nothing so useless as doing something
efficiently that should not be done at all.
- Peter Drucker
SEVEN PRINCIPLES OF PROCESS DESIGN
1. Whether should work be done• Under what circumstance
2. How precisely should it be done3. What information is needed to make decisions4. When or in what order should it be performed5. Who should perform it
• Case work vs. Sequence / work-flow6. Where should it be performed
• Centralized vs. local7. What should be done8. What tools should we use to do it?
- Hammer and Hershberger(Better, Faster, Cheaper)
DOES PROCESS STIFLE INNOVATION?
Focus on redesigning a tool: I need a database
Focus on limited actionsI need a method to record XYZ
Focus on actions and resultsI need a method to communicate status to management to get help OR I need a method to meet records and retention policy
“The difference between the right word and the almost right word is the difference between lightning and the lightning bug”
- Mark Twain
LESSONS LEARNED FROM APPLYING BPMNWords matters
• And vs. And Then Process flow matters. The value of modeling events
• And vs. Or• What really triggers activities• What happens after you send something to a customer or
supplierDecisions are related to business rules The concept of “for each” and how this impacts process and organizational change managementThe importance of grouping tasks correctly into sub-processes
MOST COMMONLY USED BPMN ELEMENTS
BPMN Task Types
Task: verbfollowed by noun
Looping task:Do while
Multiple instancetask: For each
Sub-process:Details
collapsed
BPMN Event Placement
Boundary event:interrupts activity
If event occurs, redirect flow
Respond toevent
Continuenormally
In SequenceFlow: Do
somethingWait for or send an event
Continue onBPMN Gateways -Splits
Exclusive: Only one path taken - based on data
Activity A
Activity B
Activity C
Parallel: All paths are always taken
Activity A
Activity B
Activity C
Inclusive: One or more paths taken - based on multiple data fields
Activity A
Activity B
Activity C
Event (exclusive): Only one path taken - based on which event happens first
Activity A
Activity B
Activity C
yes
no
not in time
BPMN Gateways - Merges
Exclusive: No delay Anypath will continue on
Activity A
Activity B
Activity C
Parallel: Wait for all paths to complete
Activity A
Activity B
Activity C
Inclusive: Wait for all paths thatare active to complete
Activity A
Activity B
Activity C
BPMN Most Common Events
None
Catch (Receive) Message
Throw (Send) Message
Wait for Time Delay
Catch Error Condition (Interupt and divert)Condition is reached
Throw (sound) a signal
Throw (Notify) Error Condition
EXCLUSIVE GATEWAYS: DECISIONS / SPLITS
Can have TWO OR MORE (no limit) outgoing sequence flowsOne and only one path will be followed for each tokenWhich path the token takes depends on the gateway type
[Data] Exclusive Or: • Decision based on a variable or
condition that is known• Evaluation usually based on
ONE data field or business policy• Decision is evaluated when
token reaches gatewayNO DELAY
Event gateway: • Decision based on which event happens first
• All paths must have an event or receive task following the gateway
• Usually a message, timer, or condition• Token will be DELAYED until event happens
BPMN Gateway Exercises
Wait 1 week
Contactcustomer
Prepare quote Receive Purchase Order
Place Order
Receive Feedback - Price to High
Negotiate withNavistar
BPMN Gateway Exercises
Approve Loan
Get collateral
Reject loan
Check creditscore
high risk
medium risk
Low risk
Exclusive Gateways
English Words to Listen For:Either, Or, If, Sometimes, Wait for (event)
Specific numbers / codes
Always ask: How do you know which path to
chose?
GATEWAYS AND RULESNo work is done at a gateway
• Token does not wait• Cycle time is not impacted
“Evaluation” or “Refer to policy” activity typically done prior to a gateway
• Often omitted from narration• Intuitive to subject matter experts• Business rules may be:
• Personal decision• Tribal knowledge / best practice / verbal / informal• Formalized definition or documented rules• Hard coded into IT logic and out of date
GATEWAYS AND BUSINESS RULES
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BPMN Gateway Exercises
ApproveLoan
Getcollateral
Rejectloan
Checkcreditscore
Reviewbusiness
policy
Credit risk policy
Low risk
medium
high risk
BPMN Gateway Exercises
Approve Loan
Get collateral
Reject loan
Check creditscore
<600
600-699
> 700
What happens during financial crisis?What happens when new regulation is introduced?What happens is too many people default on loans?What happens if no loans are approved?
Best Practice:Extrapolate the Rules from the Process, just as you want them
extrapolated from IT code so that business can take over management of rules
DATA GATEWAYS: EXCLUSIVE VS. INCLUSIVEDecision based on a variable or condition that is known
• Variable may come from a data input into the process• Condition is known by process performers
Decision is evaluated at point token reaches gatewayNO DELAY
• Exclusive• Only one condition can be true• Typically ONE variable
or business rule is used
• Inclusive• One or more conditions can be true• Typically more than one variable or
business rule is usedCan usually be represented by seriesof exclusive gateways… but order in which they are evaluated doesn’t matter
BPMN Gateway Exercises
BPMN Gateway ExercisesBPMN Gateway Exercises
Approve Loan
Get collateral
Reject loan
Check creditscore
high risk
medium risk
Low risk
English Words to Listen For:Sometimes, If, And, Also
English Words to Listen For:Either, Or, If
BPMN GATEWAYSTO BE OR NOT TO BE?
Decisions• And gateway =
Uncontrolled outgoing flow• ALL subsequent activities will be enabled
Merges• Exclusive-Or merge =
Uncontrolled incoming flow• Completion of ANY of the previous activies will
trigger the next task
Recommendation:• Use gateways to avoid accidental misuse or
misinterpretation• Be accurate with business context
USING EVENTS TO IDENTIFY DELAYS
HIRING EXAMPLE:WHAT’S WRONG
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SEPARATE PROCESSES LINKED THROUGH INPUTS AND OUTPUTS
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BPMN Receive Resumes
Receive Resume
Determine whetherresume is for a
posted job
Resume [Received]
Job Postings
Review resume -search for basic
requirements
Resume for Posting?
Review resumefor potential
Forward resume to hiring manager
Basic requirements met?
Reply "sorry but no thanks" to candidate
Potential
Potential is not a formally defined policy, but is based on HR experience, current labor conditions, and general understanding of Navistar current and future hiring needs. This will vary by HR individual as well as time.
Resume has potential?
Store resume for furture use
Resume[In Review]
Resume [Rejected]
Resume[Filed]
yes
no
yes
no
no
BPMN Hiring Example
Hiring Manager
HR
Position [posted]
Post PositionPost Position
Evaluate ResumesEvaluate Resumes
Resume [Received]
Interview CandidateInterview Candidate
Receive ResumesReceive Resumes
Resume [Submitted]
Candidate
Identify what really TRIGGERS activity to beginIdentify what INPUTS are required to do activitiesIdentify OUTPUTS of activities
LOOP TYPES:Loop Type
Gateway Standard Loop(Do-While or Do-Until)
Multiple Instance
Use •Repeat activities without preserving the previous results•Activities always repeat sequentially (do once, then maybe do again)• Loops cross multiple swim lanes
•Repeat one or more activities while preserving the data/results of the activities for future reference•Number of occurrences is not known prior to first instance•Activities always repeat sequentially (do once, then maybe do again)•Exceptions regularly occur
•Activities will occur a fixed number of times, and this number of times is known before the loop begins (based on data object)•Activities may repeat sequentially or in parallel
Pros Readily understood Visual indication of repeated activity No need to specify a loop condition
Cons • Difficult to represent exceptions• Open to misinterpretation• Unintended “execution” consequences
•No way to determine what the loop condition is without annotations
•No way to tell how many parallel instance or serial iterations are currently being performed (during execution) •Least intuitive
Words to Listen For”
•Escalate•Go back and update•Approve / Reject•Verify / Confirm
• Monitor• Until [an alarm goes off/status is
reached]• Again
• For each• For all• Until [the last one is done]
LOOPS IMPLICATIONSOne activity finishes before next activity begins
• Packaging of parts will not begin until all parts are picked. This may or may not be the actual case.
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BPMN gateways
Pick Part (for each pickticket in order file)
Pick Ticket
Package PartsConfirm Order
Order
BPMN
52
BASIC MODELING CONCEPTS
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BPMN BPMN Concepts
«Pool» External Party
«Lane» Role ABC«Lane» Role XYZ
Activity A Activity B
Activity C
Text Annotation - Clarification
DataObject Z
BPMN BASIC ELEMENTSSub-process, Activity or Task: Action that performs work
Events: • Signal that something happened• Status of process• Describes how a process starts, pauses, waits, sends signals, redirects
process flow, ends
Gateway: Branches / controls flow of activity• Decision / Split• Merge / Join
Sequence flow: • Connects activities within a process• Shows order of tasks
Message flow:• Shows flow of messages between participants
Association: Associates information with objects
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BPMN BASIC ELEMENTS (CONT’D)
Pool: Graphical representation of a participant in a process• Are not required
Swimlane: Sub-partition of a process• Are not required• Used to organize activities• Usually represents roles / users in process• Can be nested
Data Object: Information involved in process• Are not required• May be required to perform an activity• May be generated as output from an activity
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BPMN A Play Area
«Lane»«Pool»
«Lane»«Lane»
«Lane»
BPMN POOLS AND LANES
Used to organize processes and activities
Pools• Is not required• Represents a “participant”• “Container” for a process• Sequence flow cannot cross boundary• Message flows must always be between two pools
• Message flow can attaches to boundary (black box){Message flow can also attach to BPMN element within a pool}
Lanes• Is not required• Represents any “logical grouping” – usually for roles / responsibilities
• Roles• Organization• Title• Specific Name
• Sequence flow crosses boundaries• Can be nested• Can be horizontal or vertical – tool or user preference
BPMN ACTIVITYActivity = work performed in processTask = atomic: no further breakdownSub-process = compound activity
• May be further broken down into any level of sub-processes or tasks and BPMN elements
• May be shown collapsed or expanded• Enables high level overview of process• Scopes activities that are impacted by events
BPMN ACTIVITY TYPESTYPES Icons in upper left of task box indicates task type
Different types have different inherent behavior Common types include:Service:
• Represents a service, such as a webservice• Performed by system / application• Requires input, may have output [message / data object]
Receive / Send: • Task either receives / sends message• Can be replaced with send / receive event
User: Workflow type activitity• Performed by person• Usually interfaces with a system • Managed and executed by BPM engine
Manual:• Work performed without any aid of system• Unmanaged by any system / BPM engine
Business rule:• Provides input to rules engine • Receives output / calculation results
Script:• Executed by BPM engine directly
BPMN TASKSMARKERS
Task: Smallest piece of work; Activity
Sub Process
Looping task: (Do while): • Perform activity at least once• Evaluate / test for condition• If condition is true, repeat task again• Condition may be a Boolean Expression or a Numeric Cap• Condition may be evaluated at beginning or end of task
Multiple instance task: (For each):• Perform activity X times, where X is known at onset of task starting• Task is complete when all X iterations are done
Next task does NOT begin until all iterations are done• Instances of activity can occur in sequence or in parallel with each other• Each instance must complete the task before next task begins
Ad Hoc• Process not performed same every time• Group of activities generally determined by performer
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59Markers may be used in conjunction with one another, except for looping and multi-instancei.e., a multiple instance compensation or a loop compensation are possible
Activity Markers
BPMN GATEWAYSDo NOT perform work
• Do not affect process time
Control sequence flow: • Directs flow of a single token
(based on logical condition or event occurrence) OR• Splits tokens apart (generates additional tokens) OR• Merges tokens together
Must have multiple inputs or multiple outputs of sequence flow• Can’t have one input and one output• Can have multiple inputs and multiple outputs• Can have no input: decision will be made at start of process• Should use a default flow: otherwise an exception error can occur
BPMN EVENTSSomething that happens during a process
• Affect flow of process• Have a cause and/or reaction
Examples:• Activity starts or ends• Message arrives• Change of state in document
Placement in diagram• Stand alone:
• Catch: wait for signal, then proceed• Throw: send a signal, then proceed
• Boundary: • Catch: wait for a signal• Interrupt activity and redirect flow
EVENT TYPESStart: Single circle: Starts the processIntermediate: Double circle: Occurs during processEnd: Single bold circle: Ends the process
• Throw / send events: Black icon• Trigger is sent when token reaches event• Token immediately moves along sequence flow
• Catch / receive events: White icon• Token stops at event and waits for trigger• Token moves along sequence flow after trigger is received
Icon inside circle represents event or “trigger” type. Most common types are:
• Message• Timer• Error
BPMN Dealer Quote
SendBPMN Dealer Quote
Receive
BPMN Events
BPMN GATEWAYS AND CONDITIONAL FLOWSCONTROLLING PATH OF PROCESS
BPMN GATEWAYSDo NOT perform work
• Do not affect process time
Control sequence flow• Merges tokens together OR• Splits tokens apart (generates additional tokens) OR• Directs flow of a single token
Must have multiple inputs or multiple outputs of sequence flow• Can’t have one input and one output• Can have multiple inputs and multiple outputs [not recommended]• Can have no input: decision will be made at start of process
BPMN GATEWAYS: DECISIONS / SPLITS
Directs a token into different possible pathsAsks a question, associates outgoing paths with answers Generate a token for each answer / condition that is true
Types:• Exclusive Or: Only one path can be followed – based on data condition
• Only one answer / condition can be true
• Inclusive Or: One or more paths can be followed• One or more answer / condition can be true
• Parallel (aka “and”): All paths are taken (no question is asked)• All paths must reach end event for process to complete
• Complex: Condition evaluated to determine which flow is taken
• Event gateway: Exclusive, but occurrence of an event determines the flow• Decision made by participant based on data not visible to process• Usually a message (yes message vs. no message) or a timer• Must have 2 or more outgoing flows followed by events or receive tasks• First event to happen directs flow
BPMN Gateways – Splits
BPMN GATEWAYS: CONVERGES / JOINSConverges / Merges: Joins previous paths / tasks back into one flow
Types:• Exclusive (Uncontrolled):
• When any previous task / path is completed, continue on • (don’t wait for other tokens to arrive)
• Inclusive (Conditional And): • Wait for tokens from all active paths to arrive • Some tasks are completed
• Parallel (And): • Wait for tokens from all paths to arrive • All process tasks are completed
• Complex: • Condition evaluated to determine which inputs are needed to
continue onInsert PowerPoint Presentation Name Here
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Gateway Merges
English Words to Listen For:Always, All, And, Wait for
everything to finish
GATEWAYS AND MERGESBEST PRACTICESAlways use a gateway instead of uncontrolled flowsSeparate gateways and mergers
• If multiple outgoing sequences flows, only one incoming sequence flow
• If multiple incoming sequence flows, only one outgoing sequence flow
Avoid complex gatewaysAvoid hard coding business rules into your process logic
• Extrapolate the business rules – make your process flexible!Check for matching icons
• OK if a gateway does not merge again• OK if gateway and merge have different symbols as long as business
context is accurate
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BPMN EVENTS
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BPMN EVENTSSomething that happens during a process
• Affect flow of process• Have a cause and/or reaction
Examples:• Activity starts or ends• Message arrives• Change of state in document
Placement in diagram• Stand alone:
• Catch: wait for signal, then proceed• Throw: send a signal, then proceed
• Boundary: • Catch: wait for a signal• Interrupt activity and redirect flow
EVENT TYPESStart: Single circle: Starts the processIntermediate: Double circle: Occurs during processEnd: Single bold circle: Ends the process
• Throw / send events: Black icon• Trigger is sent when token reaches event• Token immediately moves along sequence flow
• Catch / receive events: White icon• Token stops at event and waits for trigger• Token moves along sequence flow after trigger is received
Icon inside circle represents event type or “trigger” or “result”
BPMN Events
BPMN Dealer Quote
SendBPMN Dealer Quote
Receive
BPMN START EVENTStart Event begins the process, generates a ‘token’ that travels through the pathsAll start events are “catches”Start Event is NOT required but recommendedIf there is no start event:
• ALL tasks, sub-processes, gateways, etc. that do not have incoming sequence flow will act as the “start”
• Any element without an incoming sequence flow will start when the process startsMultiple start events may be used if applicable (be careful)If a start event is used
• An end event must also be used• All other objects must have incoming sequence flow
If a start event is used in a sub-process, it must ALWAYS have NO trigger• If a trigger is desired, use an intermediate event just before the sub process on the high level
diagramFlows:
• Sequence flow only coming out• May have message flow going in
Often over looked in narration. Questions to ask:
How do you know you need to do this process?What is the trigger to your activities?
Words to listen for:Every day,/week/month; I get an email; I access my
work queue; I wait until…
BPMN START EVENTSTOP LEVEL PROCESSES
None: No specific start
Message: A message arrives (start events can only catch messages)
Timer: Specific time / date or a specific duration
Conditional: Condition is reached
Signal: Signal broadcast elsewhere is received
Multiple: Any multiple types above may trigger a process
Parallel Multiple: Multiple triggers - ALL must occur to begin process+
START EVENTS EXERCISEWHICH TYPE OF EVENT TO USE?
1. Customer submit s an order to ABC corporation who fills the order. The process is “fulfill order” from ABC perspective.
2. You arrive at work and begin to analyze data from a report that was generated last week.
3. Five business days before the end of the month, a batch job starts preparing sales data for financial reports.
4. When your balance on your corporate travel and expense credit card reaches $20,000, you and your manager receive notices and you are no longer to make any more purchases. The process is “cut-off credit” from the Accounting Center’s perspective.
5. A message is posted on the corporate internet site that sign-up for a new sports program is now open. You click on the link and register to join a team.
BPMN END EVENTSNone: No specific result
Message: A message is sent to a participant at end of process (End message events can only send)
Error: An error is generated and thrown (some thing else must catch it); all active threads in process will be terminated
Cancel: Use within a transaction sub-process ONLY. Ends the transaction process and send a notify message to participants involved in transaction
Compensation: Activities identified will be compensated (reversed / undone).
Signal: A signal is broadcast (any process that can receive the signal will hear it and be triggered). Propagates to all processes, all levels
Terminate: All activities in the process end immediately without compensation or event handling. Does NOT propagate beyond [sub] process boundaries
Multiple: Multiple consequences, all of which will occur
Escalation: An escalation is thrown (something else must catch); all other active threads in process continue)
^
Words to listen for:Notify, confirm, completes, done,
end, send, submit
BPMN END EVENT EXERCISES
Parts are delivered to a plant which are put into bins at line side or in warehouse. When Sales finalizes a quote, the quoting system sends an email to the customer with the quote attached.A customer service representative receives a request for quote for a product. The analyst looks up the product, but the part doesn’t have a price in the system. You complete an adventure course and fire a flare to notify the adventure company you are ready to be picked up.
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BPMN INTERMEDIATE EVENT TYPESNORMAL FLOW (STAND ALONE)
None: no specific trigger
• Acts as a throw event (token immediately moves on)
• Indicates process change of state or milestone is reached
Message: sends or receives a message from other process or participant
• Throw = Send• Catch = Receive
Timer: acts as delay
• Specific time / date (every April 15)• Duration / cycle (every four hours)
Escalation: throws an escalation
Compensation: throws a compensation
• Token moves forward• Activities prior to compensation are
undone in reverse orderConditional: catch event
• Triggers if / when a condition becomes true
Link: connects two sections of a process
• Creates a loop within a process• Acts as “go to” directions • Show process continued on next page• May be
• Multiple source / throw events• Single target / catch event
Signal: used to communicate within or across pools
• Throw = send signal• Catch = watch for signal
Multiple:
• Throw = all events will get thrown• Catch = any one of the events will be
received and move tokenMultiple Parallel
• Catch = all of the events must be received before token moves
BPMN Submit SPA
^
+
Stand Alone Intermediate Events
Words to listen for:Milestone, status, Notify, confirm, Wait, Receives, escalates,
until, reaches, except, sometimes, errors,
BOUNDARY INTERMEDIATE EVENTS
Interrupts an activity*Activity does not fully completeWhen event occurs, a different path is takenCreates a race condition:
• Token arrives and activates both the activity and the event• If activity completes first, the token moves on, and the event won’t be activated• If the event is activated before the activity completes, the activity stops and flow is
redirected
* Compensation and escalation do NOT interrupt the activity
BPMN INTERMEDIATE EVENT TYPESATTACHED TO ACTIVITY BOUNDARY (EDGE MOUNTED)
Message: catch event• Redirects flow if message is
received
Timer• Specific time / date (every April 15)• Duration / cycle (every four hours)
Escalation• Catches the escalation • Does NOT interupt activity by default
Error: catch event• Error condition is thrown elsewhere
in process• Always interrupts activity
Cancel: catch event• Cancel trigger is thrown from end of
a transaction sub-process• Always interrupts activity
Compensation: • catches compensation event from
elsewhere• Does NOT interrupt activity• Can only be triggered after activity to
compensate has been completed
Conditional• Triggers if/when a condition becomes true
Signal: Catch only = Signal is received
• More general, larger scope, non-error condition than error event
Multiple• Catch = any one of events will redirect flow
Parallel Multiple• Catch = all of the events must be received
to redirect flow
^
+
Boundary Intermediate Events
TIMER EVENTS IN PRACTICETimers represent
• A specific date (Every January 1)• Duration (Every 6 hours)
• Clock starts when token arrives• Token leaves when timer goes off
• A relative time (Every Monday)
Timers are exact• Gateways should be used
if it’s a personal judgment call• Are NOT delays due to bad process design• Used primarily by systems / processes in execution
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MESSAGE EVENTS IN PRACTICEIn modeling for Analysis, Messages can represent:
• Phone call • Email • Fax• Service request in IT systems• Doorbell
Sequence flow should still be used to indicate hand-offs between roles within a process.
In modeling for execution• Messages can be used between activities to indicate status is complete
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BACK TO BPMN TASKS: REPEATED ACTIVITIES
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HIRING EXAMPLE:WHAT’S WRONG
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SEPARATE PROCESSES LINKED THROUGH INPUTS AND OUTPUTS
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BPMN Receive Resumes
Receive Resume
Determine whetherresume is for a
posted job
Resume [Received]
Job Postings
Review resume -search for basic
requirements
Resume for Posting?
Review resumefor potential
Forward resume to hiring manager
Basic requirements met?
Reply "sorry but no thanks" to candidate
Potential
Potential is not a formally defined policy, but is based on HR experience, current labor conditions, and general understanding of Navistar current and future hiring needs. This will vary by HR individual as well as time.
Resume has potential?
Store resume for furture use
Resume[In Review]
Resume [Rejected]
Resume[Filed]
yes
no
yes
no
no
BPMN Hiring Example
Hiring Manager
HR
Position [posted]
Post PositionPost Position
Evaluate ResumesEvaluate Resumes
Resume [Received]
Interview CandidateInterview Candidate
Receive ResumesReceive Resumes
Resume [Submitted]
Candidate
Identify what really TRIGGERS activity to beginIdentify what INPUTS are required to do activitiesIdentify OUTPUTS of activities
REPEATED ACTIVITIESProcesses are repeatable by definition
• Instance occurs each time trigger occurs
Activities can also be repeated• Re-Usable SubProcess:
• Subprocess / Task repeated once in many different process / sequence flows
• Different activities before and after• Sub-process that begins with a non-NONE start event
• Loops• Subprocess / Task repeated multiple times in same process
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LOOP TYPES:Loop Type
Gateway Standard Loop(Do-While or Do-Until)
Multiple Instance
Use •Repeat activities without preserving the previous results•Activities always repeat sequentially (do once, then maybe do again)• Loops cross multiple swim lanes
•Repeat one or more activities while preserving the data/results of the activities for future reference•Number of occurrences is not known prior to first instance•Activities always repeat sequentially (do once, then maybe do again)•Exceptions regularly occur
•Activities will occur a fixed number of times, and this number of times is known before the loop begins (based on data object)•Activities may repeat sequentially or in parallel
Pros Readily understood Visual indication of repeated activity No need to specify a loop condition
Cons • Difficult to represent exceptions• Open to misinterpretation• Unintended “execution” consequences
•No way to determine what the loop condition is without annotations
•No way to tell how many parallel instance or serial iterations are currently being performed (during execution) •Least intuitive
Words to Listen For”
•Escalate•Go back and update•Approve / Reject•Verify / Confirm
• Monitor• Until [an alarm goes off/status is
reached]• Again
• For each• For all• Until [the last one is done]
LOOPS IMPLICATIONSOne activity finishes before next activity begins
• Packaging of parts will not begin until all parts are picked. This may or may not be the actual case.
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BPMN gateways
Pick Part (for each pickticket in order file)
Pick Ticket
Package PartsConfirm Order
Order
OTHER BPMN ELEMENTSGroupsData ObjectsArtifacts
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GROUPSVisual representation onlyAids process discussionHas NO impact on process flow or execution
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BPMN Gateway Exercises
«Group»
Activity A
Activity A Complete OK?
Activity B
Activity C
BPMN: DATA OBJECTSData Objects: Visual representation of artifacts used in a process
• Types:• Data Input: Data that is required by activities and processes in
order to complete• Data Output: Data produced by an activity or process
• Examples• Piece of [e-] paper
• Order for vehicle• Purchase order
• File• Spreadsheet on shared drive
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BPMN Prepares Solicitation
Ouput
Activity A
Input
ARTIFACTS“Modelers and tool vendors can extend BPMN concepts through the addition of new types of Artifacts”Should NOT impact process flowUse for additional detail
• Screen shots• Standard operating procedures• Secret decoder rings• Current business policies
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USE OF SYSTEMSModel as a lane if system activities are being documented
• Rules hardcoded in system today• Timing of batch jobs impact user
activities• Systems interactions need
understood
Model as a custom object associated with activities
• Associate user activities / business processes with applications
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BPMN UTO Process Map
Configure vehicle
Sales Tools
Submit SPA
Request Finance
BPMN UTO Process Map
Truck Order Database
EOFF
Assigns jobnumber
Batch Job Times
Collects batch oforders
Batch Job Times
Check for batch job times
Receivesorder
updates job step
TOP MODELING MISTAKES
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#3 STARTS ACTIVITIES WITH A NOUN
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INCORRECT CORRECT
BPMN Nouns
Strategy andVision
BPMN Nouns
DevelopsStrategy
Strategic Plan and Goals
Using only nouns makes it difficult for the reader to determine WHAT is HAPPENING. Start with strong verbs.
#2: HARD CODES BUSINESS RULES INTO PROCESS LOGIC
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Attempt to have connectors out of gateways labeled as yes or no, rather than labeled after a condition or expression (may not always be possible).Hard coding business rules or policies into process maps is equivalent to burying them in IT code. Identify if decisions are based on a policy (formal or informal). As part of the to-be, make sure a process exists for managing, updating, and communicating policies or rules.
INCORRECT CORRECT
BPMN Hard Codes Business Rules
«Lane» CSA
Assign SPA
Reviews deal
Number of trucks? Use sales
program
10 or more
<10
BPMN Hard Codes Business Rules
«Lane» CSA
AssignSPA
Reviewsdeal
Deal meet SPA policy minimum?
Use salesprogram
Refers toSPA
policy
SPA Policy
yes
no
#1 CONNECTS INDEPENDENT PROCESSES VIA SEQUENCE FLOW
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INCORRECT CORRECT
BPMN Connects Processes
PurchasingEngineering
Designs Part
Sources Part
Sequence flow indicates as soon as one activity finishes, the next one begins.Focus on what triggers an activity to start. Is the activity really a separate process that can be triggered by other events or activities? Are processes connected via shared data rather than a hand-off?
BPMN Connects Processes
EngineerSources Part
Designs Part
Manager
Part Database
Designs Part
ApprovesPart
Preparesrequest forproposal
Checks fornew parts
PROCESS MODELING GOVERNANCE
Insert PowerPoint Presentation Name Here
96
WHAT IS GOVERNANCE?
PROCESS MODELING GOVERNANCE• What tools / file formats?• What notations?
• What are corporate best practices• How do you specify levels of detail?• What needs to be included?• Who needs to review and approve for business context?• Who needs to review and approve for process modeling
context?