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Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 1
Learning target of the lecture:
• Survey of process modelling and supporting tools
• Knowledge of available process depiction possibilities within ProPlan and overview of the ARIS-Toolset
• Overview of the procedure of MOTION
WZL©
Production Management I- Lecture 10 -
Process modeling
Strategic and operative
Process modeling with MOTION
Tutor of the lecture:Dipl.-Kfm. Dipl.-Ing. H.-P. Stoß[email protected] 54b R. 517Tel.: 80-27386
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 2
Table of content of lecture 10:
0. Structure of the lecture and overview of enterprise models V10 page 4
1. Management systems 1st Order (ProPlan, Aris-Toolset) V10 page 5
1.1 Introduction V10 page 5
1.2 ProPlan V10 page 8
1.3 ARIS-Toolset V10 page 21
2. Strategic und operative process management V10 page 30with MOTION
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 3
Bibliography of lecture 10:
Schuh, G. Change Management – Von der Strategie zur Umsetzung,Shaker Verlag, Aachen 1999
Müller, M. Prozessorientierte Veränderungsprojekte,Dissertation, St. Gallen 1999
Hammer, M./Champy, J. Business Reengineering,4. Auflage,Campus-Verlag, Frankfurt/New York 1994
Scheer, A. ARIS in der Praxis - Gestaltung, Implementierung und Optimierung von Geschäftsprozessen,Springer-Verlag, Berlin et. al. 2002
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 4
WZL©
Structure of the lecture and Survey of Enterprise modelsF
unda
men
tals
of m
odel
ing
Enterprise
model
0. Order
1st Order
PROPLANARIS-Tool Tools
Data Modeling
ERM, Petri-NetProduct Modeling
CIMOSAGERAMARIS
Methods
Man
agem
ent
syste
ms
MO
TION
Fun
dam
enta
ls o
f cor
pora
tem
odel
ing
2nd Order
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 5
WZL©
Chapter 1Management systems of 1st OrderModeling Tools(ProPlan, ARIS-Toolset)
1.1 Introduction
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 6
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Process Orientation – Precondition for Competitivenes
Formerly: Functional organisation of enterprise
Sales and Distribution
Today: Process-Orientation
Design Manufacturing AssemblingOperations planingand scheduling
Competitive advantage: 5-10 yearscp: A. de Meyer
Deployment ofRessources
Added Value
Flexibility
Transparency
Remarks:
While formerly novel products where the guarantor for a long-term, decisive competitive advantage, today competitors from low wage countries within shortest time are able todisassemble new products, copy them and put them, possibly in an even improved version, on the market.Thereby competitive advantages are increasingly determined by the optimization of company organization structure and process organization. Internal procedures and knowledge can not be easily copied and create a competitive edge of up to 10 years. For companies, process orientated enterprise models gain importance in multiple regards (e.g. Certification, Change Management Projects, etc.).There are diverse tools for the illustration and modelling of processes.In this lecture ProPlan and Aris are presented and compared.
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 7
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Problem: Lack of Transparency in the enterprise
Where are theweak points?
What are theorder costs?
Why doesn‘tit workfaster?
Why do we haveproblems withquality?
What can be„outsourced“?
Where do weperform better thanour competitors?
What do we have to focus on?
Where is the order?
Notes:
One of the central problems of many enterprises is lack of transparency within the own business. It prevents for example the identification of weak points resp. strengths or makes the order calculation more difficult, since not all cost informations are constantly registered.
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 8
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Chapter 1Management systems of 1st OrderModelling Tools(ProPlan, ARIS-Toolset)
1.2 ProPlan
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 9
WZL©
Implication of Process Analysis
workplan
transmitting ofdocuments
construction
20%
80%
4 Weeks 2 Days
1 Weekinformationprocurement
process oriented analysis
The problem:
90% waiting time50% avoidable
resourceconsumption
Not solvable
informationavailable?
solvable
function oriented analysis
Process-oriented order processing
drawing
part list
?
order clarification
Notes:
In process analysis the existing processes are identified and modelled. The analysis of a process takes place by interviews with the employees involved in the processes. Essential in this reconstruction of the processes is the visualization of the procedures, of the strengths and weak points, in order to establish an sustainable will of change within the enterprise as well as to identify measures of improvement. After the documentation of the processes the results of analysis are controlled and, where necessary, corrected by the involved employees within a review.
Result of the process analysis is an increased transparency over weak points and its causes as well as a broadly supported reconcilement process over these contents.
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 10
Notes:
This Picture shows various aspects which are supported by the application of process plans. Hereby, the most important points are:
• Application within the frame of a control of realization
• Use in operational business
• Development of a common „mental“ image of the company‘s organization structure and workflow management
• Application for the training of employees
• Basis for the continuous improvement of procedures
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Further Examples of Aplication of the Processplan
Utilization in Operational Business
Documentation ofprocedures fora Certification DIN IS 9001-3
Training of employees
Control of RealizationCommon mental
image
!
tomorrow Now! nextweekIst
Soll
Continuous Improvement
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 11
WZL©
Modeling Tools: PROPLAN – Process Plan Method
Notes:
In the process plan the examined business process is depicted symbolically with the help of concatenated subprocesses (process elements). Pro plan also offers different views.
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 12
WZL©
Symbolism of Process Elements
Konstruktions-element
Koppelelement
Entscheidungs-element
Transport-element
Registrierungs-element
Grobterminie-rungselement
Ressourcen-testelement
Kommunikations-element
Montage-element
Fertigungs-element
Beschaffungs-element
Besprechungs-element
Arbeitsplanungs-element
?!
Splittelement
Ind
irec
t pro
cess
ele
men
tsd
irec
t pro
cess
ele
men
ts
Linking element General Scheduling element
Decisionelement
Resource testing element
Split element Communicationelement
Transportation element
Registering element
Procurement element
Processplaningelement
Manufacturing element
Assembly element
Meetingelement
Design element
Notes:
The 14 process elements are subdivided into 8 direct and 6 indirect elements.
The direct process elements describe processes, which contribute directly to the value creation of an order, like e.g. the preparation of the drawing (design element), the manufacture or the assembly of a subassembly.
The indirect process elements are used to describe processes wich are necessary to the order processing, but contibute only indirectly to value creation, like communication, transport or order termination.
Even if the indirect process elements in contrary to the direct ones are “not value creating”, frequently in a process analysis more time delays can be observed within the indirect process elements.
Square edges represent direct process elements, rounded off edges indirect process elements.
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 13
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Part of a Process Plan
2We-3Mo
95% 3We
5%
60%40%
20%
1-4We
outsourcing-
Sub-assembliesavailable?
CAD
manual
transmit drawings,part lists
Identicalconstructions
New/similarconstruction 10%
4We
60%
6We
30%
3We
filing filing
80%
Inquiries at:-Sales-Electric design-pneumatic:
Where will the new drawings be edited
or prepared!Check drawing
necessary Informationcomplete
Correct drawing
Preparing of - drawings- part lists
-
??
Notes:
Here is an example of a process visualization is shown. In the single process plans the process elements are further specified by so called “Labels”. They describe business specific contents of the processes and thereby enable an easy reading and understanding of the procedures, also for an untrained viewer of the process plan.
It normally takes two steps to create a process plan:
1. Qualitative recording of the process steps: collection and coordination of the logic of the process elements
2. Quantitative specification of the process steps: Backing up the process elements with numbers
The recording takes place in co-operation with an experienced employee. During the evaluation of the process plan, mostly the emphasis lies on identifying the largest time losses, which can be found within a process plan asking the following questions:
- where does the process become “wider”
- where are (avoidable) back loops (and can those be avoided by standardisation/process transformation)?
- where do many couple/communication elements occur (and can those be avoided by standardisation/process simplification)?
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 14
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Uncovering Improvement Potentials by Process Analysis
5 6 7 8 9 10
80%
100%
60%
2%
: Striening, H.-D.
1 23
1
2
Assumption:
10 single processes with an error rate of 5% per process
12 3
90%
70%
Number persingle process
0% error rate
12
3
Yield(%)
Case : Decrease of yield = 77 %process interfaces
(5 instead of 10 Processes)
Case : Decrease of yield = 82 %error rate
(2% instead of 5%)
Case : Combination of yield = 90 %and
error rate
5% error rate
cf
Notes:
In the process analysis and optimization efficiency potentials are identified, which can result from a decreased number of process interfaces and a decreased process error rate.
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 15
WZL©
Structuring and Quantification of the Process elements
Process
interruption
Processdescription
P=50%
P=50%
PTT : 1h
Structure Quantification
Similaritysearch
input output
junction
e.g. Breakdown of the data processing system
e.g. Draft
queries to the sales department
e.g. similarstructural
component
PTT - Pass-through time P - Probability
Notes:
The used process elements can have up to 4 lines at their outside edge. Each of the four lines symbolizes a certain input or output:
- each process element has the process input on the lefthand side.
- likewise each process element has the normal output on the right side and above the interruption output.
- additionaly some process elements (decision -, communication -, transport -, resource test as well as all direct process elements) possesses a junction output on the lower edge.
In addition the process elements can be quantified with data to the pass through time and to cost consumption.
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 16
WZL©
Split element-performs a split of the order, if many processes may be executed parallel-generates copies of the order, if different tasks have to be accomplished simultaneously on the same order; respectively only parts of the order, if a copy of the complete order is not necessary
Short Description of Process Elements
!
Indirect process elements (value consumptive)
Linking element-Integrates an order into the follow up process by transmitting,terminating, and waiting respectively saving
-Synchronizes various part oders in order to parallelize processes (order splitting)-Coordinates orders being simultaneously proceded
Decision element-Takes over the process of decision making-Verifies the completeness of information and the decision making competence
Registering element-registers a procedure-Enciphers the order numerically-verifies if the order already exists in the system
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 17
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Short Description of Process Elements (2)
?
Indirect process elements (value consumptive)
Communication element-Identifies which source can provide the necessary information-Establishes contact with the communication partner and receives information
Resource testing element-examines resources, reserves existing and orders lacking resources
Transportation element-describes the transport of Information and material-takes into account the time needed for „mobile storage“ of orders
General scheduling element-Determines the necessary basic dates of the complete process chain of the order,taking into account the capacity load exercised by other orders
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 18
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Short Description of Process Elements (3)
-determines resources needed for the direct manufacturing process
-implies the direct work process
Direct process elements (value creating actions)
Procurement element Process planning element
Manufacturing element
Assembly elementDesign element
Meeting element
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 19
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Types of Connection
Type of connection Comment Example/Scheme
OR-Connection
Process A, Process B(if necessarysimultaneously)can be performed
EITHER-OR-Connection
Either proceeding according to process A or process B
AND-Connection
Combined executionof process A andprocess B
A or BA or B
either /oreither /or
AndAnd
A
B
A
B
A
B
Sum of probabilities: 100%
Probability of each branch: 100%
100%
100%
Notes:
The picture shows the different types of connection between the process elements. Three different conection possibilities can be differentiated:
• Or connection
• Either Or connection
• AND connection.
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 20
WZL©
Degree of Particularization of the Process Documentation
too
ro
ug
ho
pti
mal
too
det
aile
d
Sales Design Operations Planning manufacturing assembly
Filing Informationcomplete?
Preparation of technical drawing,Bill of material
Transmit toOperations Planning
Take pencil Take paper Write order Pass orderto internal mail systemResharpen
pencil
Informationprocurement
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 21
WZL©
Chapter 1Management systems 1st Order Modelling tools(ProPlan, ARIS-Toolset)
1.3 ARIS-Toolset
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 22
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Operational Area for the ARIS-Toolset
ARIS stands for Architecture of Integrated Infomation Systems
The ARIS-Toolset is an Analysis- and Modelling software for the realitstic
• Visualization• Analysis and• Optimization
of business processes.
Notes:
The ARIS-Toolset is an analysis- and modelling software for the realistic visualization, analysis and optimization of business processes of a company.
An essential characteristic of the ARIS-Toolset is, that it unites theory, methods, tools and experience (reference models).
ARIS stands for „Architecture of Integrated Information Systems“
Architecture normally refers to the art of building. Transferred to information systems this means that the components, of which an information system is made up with, have to be specified concerning their kind, functional properties and their cooperation.
ARIS provides a framework for the complete description (modelling) of computer-based information systems, from the technical concept to the implementation.
The main focus lies on the support of business processes through integrated information systems.
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 23
WZL©
Operational Area for the ARIS-Toolset
• Definition, analysis and optimization of Business Processes• Knowledge Management• Benchmarking• Simulation and planning of staffing requirements• Management of process costs• Definition of tender specifications• Software development and implementation• Workflow specification• Certifications (e.g. ISO 900X)• Training with focus on business processes
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 24
WZL©
Focus on Business processes (I/II)
Results-oriented process-chain of the raw proceeding model of ARIS
1st Step: Description of business processes
Start of the Project
specialised concept create control view
Specialised concept
control view finished
Specialised conceptcreate functional
view
Specialised conceptcreate
organizational view
Specialised conceptcreate data view
Specialised conceptcreate output view
Specialised concept finished
Data processing concept finished
ImplementationFunctional view
ImplementationFunctional view
ImplementationData view
ImplementationOutput view
Project finished
Create data processing concept
functional view
Create data processing concept
organisational view
Create data processingconcept data view
Create data processingconcept
output view
Create data processing concept
control view
ImplementationControl view
Remarks:
A fundamental condition for the execution of reorganizations of the business processes is the possibility of describing these consistently and completely. For this reason within ARIS architecture the result-oriented process chain was developed as descriptive language, which can be easily understood and is able to illustrate business processes close-to-reality.
The fundamental characteristic of a process is the representation of the process functions (tasks or activities) in their content wise and temporal dependence.
A business process is a coherent sequence of enterprise activities to the purpose of providing a service. The result is an output.
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 25
WZL©
Focus on Business Processes (II/II)
2nd Step: Analysis of Business Processes
• Development of a procedure model
• Definition of the project objectives
• Operationalisation of the project objectives
• Fixing of measures to achieve the objectives
• Definition of the relevant weak points
3rd Step: Implementation
Remarks:
In many enterprises projects with the objective of the reorganization and/or optimization of business process have been realized within the last years. A central condition for the successful realization of such projects is the definition of a procedural model, in which each project phase is determined and its content prepared. The objectives of the project (e.g. reduction of the throughput time) are to be defined.
In order to finally answer the question to what extent the initially defined objectives have been reached, those objectives must be operationalised, i.e. made measurable.
In the fourth step the measures for achieving the objectives are to be achieved have to be specified.
With the ARIS Toolset the weaknesses of the process organisation can be identified and differentiated following the aspect they regard:
• functional (e.g. inefficient order of their execution)
• organisational (e.g. frequent change of departments)
• data (e.g. redundant data)
• Data processing (e.g. insufficient integration)
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 26
WZL©
Modeling Support through Visual Description
Remarks:
The ARIS Toolset and the ARIS Easy Design offer simple graphic methods, which facilitate the modelling of processes by specialized departments. The objective is it that the specialized department, which has the knowledge of the processes can independently record and document their process knowledge in the form of Office Processes. The employee of the specialized department can fall back to pre-defined graphic objects or define and use his own symbols. In ARIS Toolset these graphic methods can be transferred and consolidated into more formal models like e.g. the EPK with the help of the generation of models.
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 27
WZL©
Comparison of ProPlan and Aris-Tool
= complied
= partially complied
= conditionally complied
= fully complied
Legend
Ø Calculation of key figures
Ø Consideration of stochastic influences(Probabilities of branching etc.)
Ø Easily understandable modelling
Ø Weak point oriented process analysis
Process modelling
Areas of Design
Ø company organisation structure
Ø Information system
Ø procedure
Ø Process control
Decision support
PROPLAN ARIS-Tool
Ø Suitability for participating modelling
Ø Visualization of various views (data, process control)
cf. Bach (1997) andHeeg et al. (1997)
Remarks:
This picture shows a comparison of the presented modelling methods. The comparison takes place according to the criteria
• Process modelling,
• Areas of Design
• Decision support
Therefore Pro plan is rather suitable for the process analysis, ARIS for the process documentation
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 28
WZL©
Chapter 2Strategic and Operative Process Management withMOTION
Remarks:
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 29
WZL©
Variety of different BPR Approaches and Methods
strategic
Effectiveness
Top-down
Focus on goals
Radicality
limited in time
Management
Oriented to the exteriorBR
BPR
PI
Hammer /Champy
Davenport
KAIZEN
KVP
BVW
LeanManagement
Ohno
REFA
Efficiency
Bottom-up
permanent
operational
Analysis
Continuity
Participation
Oriented to the interior
Remarks:
There are two basic kinds of business process design. The American, top down oriented approach of radical change and the Japanese, bottom-up oriented approach of continuous improvement. Business Process Reengineering (BPR) for example is a method for radical renewal and reorganization of enterprises and their strategic alignment, originating from the USA. Completely opposed to the top-down oriented approaches for radical enterprise revolution are the Japanese methods of continuous process improvement (KAIZEN, continuous improvement process, employee suggestion scheme). Starting point of the bottom-up oriented designing approaches is thus not a process vision, but the existing process, which is optimized according to efficiency criteria. These approaches institutionalize the permanent change process and improve the efficiency goals of the existing processes, carried by the acceptance of the employees.
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 30
WZL©
The Combination as a European Way of Change Management
Down-Up
Management level
Process level
low high
l Enterprise strategy l Mission statement
down
up
Act
ion
leve
l
Implementation strength
l Measures for Process optimization
strategic Level
Operational level
Concentrationon Core processes
Remarks:
The analysis of “foreign" approaches - revolutionary as well as evolutionary ones - primarily shows the barriers which let these approaches fail. Barriers due to implementation, will or culture revealed the necessity for a method which is sufficently appropiate to the characteristics of European enterprises. An appropriate integrated approach was developed in the ESPRIT project 8446 MOTION (Model for Transforming, Identifying and Optimizing core Processes). A continuous concept, which develops gradually from the strategy development to the practical implementation, avoids the methodical breaks, which were caused so far by the employment of single methods not co-ordinated among one another.
The down-up-principle of MOTION finds its realization in the linkage of fundamental strategic decisions to change with the operational organization measures for process orientated organization. On the leadership level therefore the enterprise strategy is to be analyzed, adapted and if necessary redeveloped regarding the change project.
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 31
WZL©
The MOTION Concept
MOTION
Projectorganisation
Projectorganisation
TrainingTraining
Trans-formation
Trans-formation
DesignDesignAnalysisAnalysis
Core processidentification
Core processidentificationStrategy
auditStrategy
audit
ProcessanalysisProcessanalysis Process
optimizationProcess
optimization
ProcessstrategiesProcess
strategies
How do I controll the key levers?
Guideline
Proc
ess
Core-Processes
BusinessProcesses
Operations
Operational Processes
Process model
What are the key levers and how are they related?
Remarks:
On the one hand the process model of MOTION points out the connections of the key variables of a change project, on the other hand a structured procedure is ensured by the MOTION guideline. The method defines the “How”, the model defines the “What” and the project organization defines the “Who” of the Change management.
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 32
WZL©
The Four Views of Process Analysis and Optimization
Proc
ess
Core-processes
Businessprocesses
Operations
Operational Processes
Remarks:
The process model is the backbone of the process orientated enterprise and is a simplified scheme of the enterprise reality. The view of the processes on different aggregation levels permits a problem- and object-oriented process organization. Different views on the processes make the organization of a suitable organizational structure possible as well as an optimal employment of information technology and resources.
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 33
WZL©
Concept of Process Design
Project-organisation
Project-organisation
TrainingTraining
Trans-formation
Trans-formation
DesignDesignAnalysisAnalysis
Core processidentificationCore processidentificationStrategy-
auditStrategy-
audit
Process-analysisProcess-analysis
Processoptimization
Processoptimization
Process strategiesProcess
strategies
MOTION-Guideline
Remarks:
A constant MOTION Guideline assures the way to a successful change management. The first phase serves to find a goal, with the two components strategy audit and process analysis. The second phase concerns the process design with the core process identification, the process strategies and the process optimization. The transformation begins already with the project start and ends with the conclusion of the single implementation projects.
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 34
WZL©
The Strategy Audit within the scope of MOTION
Project organisation
Project organisation
TrainingTraining
Trans-formation
Trans-formation
DesignDesignAnalysisAnalysisCore process identificationCore process identification
Strategy audit
Strategy audit
Process analysisProcess analysis
Process optimization
Process optimization
Process strategiesProcess
strategies
Proceeding Measures GoalsSEP
Which strategic alignment is the
right one?
Remarks:
In the strategy audit the management analyses the company objectives, the current market and enterprise situation and analyzes the possible development of the enterprise. Management profiles are generated in order to derive the company targets. At the same time strategic success potentials and strategic success positions are to be identified, which the enterprise wants to occupy in the future. To reach these strategic success positions, a strategic program with the definition of goals, means and procedures is defined, which fits into the aimed strategic profile of the enterprise.
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 35
WZL©
Objective of the lecture Produduct Planning/Construction
Projectorganisation
Projectorganisation
TrainingTraining
Trans-formation
Trans-formation
DesignDesignAnalysisAnalysisCore processidentificationCore processidentificationStrategy
auditStrategy
audit
ProcessanalysisProcessanalysis
Processoptimization
Processoptimization
Process strategiesProcess
strategies
Processobjective
Processobjective
Which are the key processes for competitive success?
Which influence do the enterprise
strategies have on our Processes?
Remarks:
In accordance with the strategic demands of the management the objective of the core process identification is to find out which are the key processes for the competitive success of the enterprise, and to reach a common understanding of the processes. Such a identification and thus prioritization of the processes is necessary in order to focus the reorganisation on the main points and thus reach a competitive advantage against competitors.
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 36
WZL©
Coreprocess Identification with the Process Portfolio
Legend: Significance of the process
largemediumsmall
Process effectiveness:Contribution of the processes to the perceived benefit for the customer, in relation to the competition
Process efficiency:Measure for the invested Resources (time, costs) in relation to the competition
Core Processes
Remarks:
A Core Process is a main process, which has a significant effect on the market success of the enterprise and a substantial influence on the achievement of strategic success positions.
The core process identification for the main processes is made through the Process portfolio. The Process portfolio permits a binary evaluation of the processes concerning effectiveness and efficiency. The process effectiveness describes the contribution to the perceived benefit for the customer in comparison to the one of the competition. The process efficiency describes the internal process control in the sense of productivity and profitability, in relation to the competition. The process significance describes the relevance of the main processes regarding turnover and cost volume. The process significance supports the prioritization in change projects (Change management and Business Process Reengineering).
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 37
WZL©
Derivation of Process strategies from the Process Portfolio
Process strategies
Describe the way from a
present to a
future situation,
give information about:
• Objectives(efficiency and effectivityobjectives)
• Means and
• Procedures
Process effectiveness
Process efficiency
Remarks:
The process strategies are formulated for the key and business processes in order to reach the future process portfolio situation. Through the formulation of process strategies, the strategic considerations are transferred into the operational business.
Clearly defined process goals, the allocation of the available means as well as the selection of certain procedures within the processes ensure the success. Each defined process goal contains a target dimension (e.g. customer satisfaction), a target value (e.g. +10%) and a target date (e.g. within in one year). It must be paid attention to the fact how the partial targets influence each other, i.e. whether the goals strengthen mutually, work in opposite directions or don’t influence each other.
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 38
WZL©
Efficient Process Analysis and Optimization
Projectorganisation
Training
Trans-formation
DesignAnalysisCore processidentification
Strategy audit
Processanalysis
Process optimization
Process strategies
Transmit documents
Construction
20%
80%
4 Weeks 2 Days
1 WeekInformation procurement
Information available?
?
What are the essential weak
points?
How do processes and structures have
to be changed?
Remarks:
In the process analysis the existing processes are taken up and modelled. The visualization of the procedures, strengths and weak points is essential, in order to initialize a lasting will to change in the enterprise, as well as to determine improvement potentials. The result of the process analysis is a increased transparency of process weaknesses and its causes as well as a broadly supported tuning process concerning these contents. Thereby a special meaning is to be attached to the identification of the causes of weaknesses, since a correction of symptoms is inefficient and will not lead to the goal in medium- or long-term.
Known analysis methods and instruments like cost structure, process and organization analyses thereby focus on the hard factors in the enterprise. However, resistances against changes frequently result from mechanisms, which cannot be explained with the official rules and proceedings of an enterprise. They rather derive from the "secret rules", for whose identification supplementing analysis techniques must be used. In the phase of the process optimization existing processes are transformed with a focus on weak points and new processes are designed, basing on the guidelines of the process strategies.
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 39
WZL©
Proceeding Method to Process Analysis
Work item
Realisation ofthe meetings
Realisation ofthe meetings
DocumentationDocumentation
ReviewReview
Author/Critic-Cycle
Author/Critic-Cycle
• Recording of all processes to be performed during order processing
• Recording of all processes to be performed during order processing
• Inserting the process elements• Description of the processes• Inserting the process elements• Description of the processes
• Control of the documentation• Interviews with employee• Correction of the documentation
• Control of the documentation• Interviews with employee• Correction of the documentation
InterviewProject Team
Employee
Remarks:
In the process analysis the actual processes of the enterprise are recorded by interviews with the employees taking part in the process. The resulting process and analysis plan offers following advantages to the change project:
• The inefficiencies of enterprise processes are directly and visually pointed on and are recognizable to everyone.
• Process weaknesses are uncovered systematically with the participation of all, and the potential of changes is evaluated together (acceptance-promoting).
• The “secret rules” are recognized and used in a way promoting the implementation.
Because the process elements are unambiguous and easy to learn, the structure of a common mental model of the enterprise and thus the integration of the employees into the Change management project is eased a lot.
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 40
WZL©
Generation of the Organisation View
Remarks:
The organization view supports the modelling of all relevant aspects concerning tasks, responsibility and competence for process activities, information objects and resources and converts these into a company organization structure.
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 41
WZL©
Generation of the Ressource View
Remarks:
Resources are business objects, which are necessary for the process execution.
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 42
WZL©
Generation of the Information View
Remarks:
In the information view the roles of the employees taking part in the processes are linked over the operations in the process with the EDP-technical resources.
Production management I (Prof. Schuh)
Process modelling, Process management with MOTION
Lecture 10
V10 Page 43
WZL©
Generation of the Process View
Remarks:
The view of the processes on different aggregation levels permits a problem and object-oriented process design. Other views of the enterprise model (organization, resources and information) are adjusted to the process view.