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Business Process ManagementA BUSINESS ANALYST PERSPECTIVE
Business Process Management
What is Business Process Management (BPM) BABOK v3 Perspective
Frameworks & Techniques
Case Study
Tools & Work Products
Activity
Agenda & Objectives
About me…• Kyle Becker
• Business Analyst for 12 years
• Financial Services Technology Industry
• Currently a Senior Business Systems Analyst at
• Professional Development Committee – IIBA CFC
What is Business Process Management?Business Process Management (BPM) is a management discipline and a set of enabling technologies that:
•Focuses on how the organization performs work to deliver valueacross multiple functional areas to customers and stakeholders
•Aims for view of value delivery that spans the entire organization
•Views the organization through a process-centric lens
Goal of Business Process Management?• Improve operational performance, and to reduce costs and riskso Effectiveness
o Efficiency
o Adaptability
o Quality
• Eliminate process silos through process awareness
Process Silos – Baby Bedtime Routine
Daddy
Silo
Mommy
Silo
Pick up baby from day care
Play with baby
Rocks baby to sleep
Bath babyDress baby in
pajamasHand baby off to
MommyFinish
Swaddles babyLays sleeping baby in crib
BPM Delivery Approach• Substantial Discoveryo Baseline current state business processes, start from a blank
slate (link)
• Process Benchmarkingo Compare current state processes to others in the industry
• Evolutionary Forms of Changeo Individual and targeted changes to align with overall
objectives
• Business Process Re-Engineeringo Major process redesign across the enterprise
• Specialized BPMS Applicationso Workflow management, process automation, modelling
BPM Framework & TechniquesFrameworks
Business Process Re-engineering (BPR)
Continuous Improvement
Lean
Six Sigma
Theory of Constraints
Total Quality Management
Techniques
Critical To Quality (CTQ)
Cost Analysis
Define, Measure, Analyze, Design, Verify (DMADV)
Define, Measure, Analyze, Improve, Control (DMAIC)
Failure Mode and Effect Analysis
Suppliers, Inputs, Process, Outputs, Customers (SIPOC)
Value Stream Analysis
Value Added Analysis
5 Ws (Who, What, Where, When, Why)
Lean Process Improvement• Cost Reduction Principle
(aka waste reduction)
Cost
Profit
Price
Price
Cost
Profit
Price Price
Lean Process Improvement – 8 Wastes
Six Sigma Process Improvement
BPM Change Targets & Roles
Process Operators
Process Owner
Implementation Team
Project Manager
Customers
Regulators
Management
Process Architect
Process Analyst/Designer
Process Modeller
BPM Case StudyQuote to Cash Process
•Acquisition volume created disparate processesacross the sales and accounting teams•Multiple applications used to facilitate the process•Manual tasks•Physical paper/file handling•Error volume•Approval process•Pricing process•Commission process•Month end order volume•Billing and invoicing process•4 Process Owners reporting to 1 Process Sponsor
Process Operators
Process Owner
Implementation Team
Project Manager
Customers
Regulators
Management
Process Architect
Process Analyst/Designer
Process Modeller
BPM Case Study
BPM Process Flow
BPM Process FlowTips for Better Process Flowcharts
• Flow data from left to right, top to bottom
• Use consistent design elements
• Keep everything on one page
• Avoid crossing process lines
• Replicate shared business processes, don’t re-draw
• Specify the level and version of each process flowchart
BPM Process FlowTips for Better Process Flowcharts
• Don’t do this:
BPM Measures – Time TrackingContract Management Review Data
Hours Order Count1:00 3012:00 2273:00 1024:00 605:00 26
10:00 5515:00 120:00 14More 174Total 960
Summary StatisticsMean 15:41Standard Error 1:14Median 1:40Mode 0:00Standard Deviation 38:42Sample Variance 62:24Kurtosis 367:39Skewness 88:46Range 286:58Minimum 0:00Maximum 286:58Sum 15063:10Count 960
301
227
102
60
2655
114
174
0
50
100
150
200
250
300
350
1:00 2:00 3:00 4:00 5:00 10:00 15:00 20:00 More
Ord
er C
ou
nt
Hours
Contract Management Review - Hours to Complete
•Use Excel Data Analysis feature for Histogram, Descriptive Statistics, & Graphing data
BPM Measures – Defect Tracking
BPM Measures – Defect Causes
Fishbone Diagram
•Head is the defect or effect in question
•Main bones represent general causes
•Smaller bones represent detail to support eachmain cause
BPM Value Stream Map
BPM Value Stream MapActivity Types
• Value-added – something someone is willing to pay for
• Business Value-added – something the business requires to meet regulatory or audit demands
• Non Value-added – unwillingness to pay, can be avoided
Calculations
• Lead time – latency between the initiation and execution of a process
• Process time – how much time it takes for a process step to complete
• First Pass Yield – represents the percentage of work that was free of defects
• Rolled Throughput Yield – represents the percentage of work that was free of defects at the end of the process
BPM Improve & ControlImprove
•Reduce waste – reduce errors/defects by X% by TBD
• Improve flow – reduce lead time by X% by TBD
•Simplify and standardize
•Rolled Throughput Yield – from X% to Y% by TBD
Control & Monitor
• Critical to Customer (CCR) Metrics
• Visual End to End Process Metrics
BPM Systems
BPM Activity
Loan Process
Thank You! The EndQuestions?
Let’s
DiscussAnswered?
N
Y
Y
N