- 1 -© Minder Chen, 1993-2003

Methods and Tools for BPR

• An Integrated Framework for Methods and Tools for BPR

• Process Modeling Methods and Tools– IDEF0: Notation, Technique, Tools, & Analysis

– Functional Flowchart

• Activity-Based Costing

• Supporting Technologies for BPR Activities– Groupware

– Process Simulation

– Organization Modeling Tools

- 2 -© Minder Chen, 1993-2003

A Framework of Integrating Methods & Tools for BPR

Elicit semi-formal

process and data models

Construct/revise

static business process models

Analyze the dynamics of the process

Analyze the activity costs of

the process

information of a process

semi-formalprocess model

cost and performance data compared to the baseline

performance data

activity cost data

Target information system generated

finalized process model

Model Elicitation Tools(GroupSystems V)

ABC Tool(IDEFCost, Easy ABC)

Simulation Tool(SIMPROCESS, iThink)

CASE & Workflow Mgmt. Tools(IEF, ADW)

Construct/revise

business data models

Data Modeling Tools(ERWin, BDF)

Construct formal IS models & generate

information systems

semi-formaldata model

Pro. Modeling Tools(IDEFine, BDF, Design/IDEF)

- 3 -© Minder Chen, 1993-2003

Standard Flowchart Symbols

Activity

Movement/Transportation

Decision Point

Paper document

Delay

Storage

Connector

Begin/End

Annotation

Direction of process flow

Transmission

- 4 -© Minder Chen, 1993-2003

Functional Flowchart (Process Mapping)

CustomerService

CreditChecking

Inventory Shipping

Begin EnterOrder

CheckCredit

Yes

Order Processing Update

Inventory

Ship orderEnd

PROCESS

CYCLE

1 2

1 1 12 0.1 43 0.2 14 ... ......

ACTIVITY

Wait for

shipping

No

Customer

- 5 -© Minder Chen, 1993-2003

TeamFlow from CMF at www.teamflow.com

- 6 -© Minder Chen, 1993-2003

IDEF0 Notations

FunctionInputs Outputs

Controls

Mechanism

Legends

Process OrderCustomer order

Processed order

Order processingpolicy

Orderprocessingsystem

Orderprocessingclerks

Work schedule

- 7 -© Minder Chen, 1993-2003

Process Modeling for BPR

Process1. Entry Conditions2. Exit Conditions3. Decomposition

• Inputs: Materials Information

• Suppliers• Requirements

• Outputs: MaterialsInformation

• Customers• Satisfiers

• Controls • Constraints• Specifications• Schedules

• Mechanism• Systems • Personnel • Resources• Infrastructures• Costs

- 8 -© Minder Chen, 1993-2003

ICOM in IDEF0

The ICOM of a function represents certain system principles: Inputs are transformed into outputs, controls constrain or dictate under what conditions transformations occur, and mechanisms describe how the function is accomplished.

"Inputs are transformed by the function

into outputs according to controls, using mechanisms."

An IDEF0 box and its ICOM can be described as:

I

C

O

M

- 9 -© Minder Chen, 1993-2003

Definition of ICOM

• Input: Describe resources or data that are needed to perform the function and are transformed by the function into outputs.

• Control: Describe the conditions, rules, procedures, or circumstances that govern the execution of the function. An arrow is a control unless it obviously serves only as input. Each function should have at least one control arrow. Most of controls are in the form of data.

• Output: The data or objects produced when the function is performed.

• Mechanism: Define the supporting mechanisms that carry out the function. A mechanism may be a person, an organizational unit, a physical device, or a computer program.

- 10 -© Minder Chen, 1993-2003

An Example of an IDEF0 Diagram

NODE: TITLE: NUMBER:

AØF Maintain Repairable Spares (FEO) pg. 4-5

Asset (after repair)

Remove & Replace

1

Schedule into Shop

2

Inspect or Repair

3

Monitor & Route

4

In-service asset

Detected or suspected malfunction, or Item is scheduled for bench-check

Replaced asset

Man-hour standards and personnel availability

Spare asset

Asset (before repair)

Repairable asset

Assets awaiting parts

Replacement or original (repaired)

Status records

Completed asset

Spare or NRTS

Source: Integrated Computer-Aided Manufacturing (ICAM): Functional Modeling Manual (IDEF0), June 1981, p. 4-5.

- 11 -© Minder Chen, 1993-2003

IDEF0 Diagrams as Constraint Diagrams

Function A

B

C Function

Function

- 12 -© Minder Chen, 1993-2003

IDEF0 Model Structure

A0

A4

A-0

A42

1

2

3

4

1

2

3

1

2

3

GENERAL

DETAILED

The diagram A0 is the "parent" of the diagram A4.

I1I2

C1

O1

Abstraction

Refinement

I1

I2

O1

C1

- 13 -© Minder Chen, 1993-2003

Node Tree

Manufacture Product

A1

Plan for Manufacture

A11

Assume a Structure and

Method of Manufacturing

A12

Estimate Requirements, Cost, Time to

Produce

A13

Develop Production Plans

A14

Develop Support Activities Plan

- 14 -© Minder Chen, 1993-2003

Node Index

A0 Manufacture Product

A1 Plan for Manufacture

A11 Assume a Structure and Method of Manufacture

A12 Estimate Requirements, Cost, Time to Produce

A13 Develop Production Plans

A14 Develop Support Activities Plan

A2 .......

- 15 -© Minder Chen, 1993-2003

ICOM Balancing: The Match Must Be Complete and Consistent

Parent Diagram

Detail Diagram

1

Parent Box 2

3

1

2

3

This arrow is a controlfrom the parent

This arrow continue on the parent

This arrow is an input from the parent

- 16 -© Minder Chen, 1993-2003

ICOM Codes Are Written on the Detail Diagram

This is C2 below

This is C1 below This is C3 below

This is I1 below

This is I2 below

Box of Parent to be Detailed

This is O1 below

This is O2 below

C1

C2

1

2

I1

I2

C3

O1

O2

ICOM code must be written at the unconnected ends of all boundary arrows except for A-0 diagram and on tunneled arrows.

3

- 17 -© Minder Chen, 1993-2003

Tunneled Arrows

Tunneling an arrow at the unconnected end indicates that the data conveyed is not relevant to or supplied by the parent diagram.

Tunneled Arrows at Unconnected Ends

Tunneled Arrows at Connected Ends

( )

( )

( )

( )

( )

( )

Tunneling an arrow where it connects to a box indicates that the data conveyed is not necessary at the next level of decomposition.

( )

( )

- 18 -© Minder Chen, 1993-2003

Tunneled Arrows and ICOM Codes

A0 PARENT DIAGRAM

A2 DETAIL DIAGRAM

corporatepolicy

Control will not be shown on detail diagram

This arrow is still labeled as C3

status report tocontroller's office Output not shown on

parent diagram

( )

( )

I1

C1

C3

O1

- 19 -© Minder Chen, 1993-2003

Attributes of Processes

• Basic – Name

– Description

– Author

– Audit trails

• Performance data– Importance: Core, Critical, Strategic

– Value Added: Business, Customer, None

– Cycle time: Mean, Variance, and Distribution

– Cost/Unit

- 20 -© Minder Chen, 1993-2003

Process Evaluation

• Eliminate

• Simplify

• Combine

• Make them concurrent

• Automate

• Create value-adding processes

- 21 -© Minder Chen, 1993-2003

Adding Value, Not Cost and Time

Value Added

Checking

Preparating

Searching

Accumulating

Moving

Collating

Inspecting

Counting

Copying

Editing

Reviewing

Approving

- 22 -© Minder Chen, 1993-2003

Inputs Evaluation

• Type: Data, Material

• Performance: – Quality

– Cost/Unit: include cost of processing purchase order, shipping cost, cost of the inputs, and inventory cost.

– Delivery timeliness

– Volume: Average and peak

• Reduce the cost of inputs.

• Alternative sources of inputs.

• Ensure timeliness of inputs delivery.

- 23 -© Minder Chen, 1993-2003

Controls Evaluation

• Relocate or retime controls

• Reduce unnecessary controls

• Embed controls as part of the process

• Let the workers who perform the process conduct the checking.

• Improve the procedures and guidelines of the process.

• Empower workers to learn and think and give them authority to make decision to make changes and improvements

- 24 -© Minder Chen, 1993-2003

Mechanism Evaluation

• Who should perform the process?

• Are tools used for performing the process adequate?

• What are emerging and matured techniques, tools, and information technologies that may help the improvement of process productivity or effectiveness?

• What is the cost of the resources in employing the mechanism? Are there alternatives?

• Are there adequate training programs for employees in using tools and methods?