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