Instantiation of a Process Architecture to Enable Lean Six ... · processes through business...

Copyright © 2016 S.L. Furterer

Instantiation of a Process Architecture to Enable Lean Six Sigma

Improvements

Sandy L. Furterer

VP Process Transformation, Park National Bank

MSQA Program Faculty, Kennesaw State University

Jordan Green

Process Improvement Officer, Park National Bank

ASQ Columbus Conference 2016


Table of Contents

• Presentation Objectives

• Methodology

• Literature Review

• Process Architecture Elements

• Process Map Architecture

• Case Study Examples

• Workshop Activities

• Conclusions

• Future Research

2


Presentation Objectives

3


Presentation Objectives

• This presentation will provide a framework and templates for developing a process architecture that expands a traditional process map to encompass the information elements that build an organization’s process architecture.

• This framework enables understanding of the current state process, development of the future state vision, analysis of the process inefficiencies, and root cause identification.

• Case study examples of use of the process architecture will be illustrated.

4


Methodology

5


Methodology

• Performed literature review

• Developed process architecture elements

• Developed process map templates

• Applied templates

• Defined future research

6


Literature Review

7

Copyright © 2016 S.L. Furterer8

Reviewed the current literature to understand process modeling and process architecture and how it is treated in the literature.

• “A model is an abstraction of something for the purpose of understanding it before building it.” (Rumbaugh, et al, 1991).

• The goal of business modeling can help to develop information systems applications; develop a quality management system; perform optimization of processes using methods such as business process reengineering, and Lean Six Sigma; and to manage processes through business process management (Furterer, 2015)

• Many different conceptual modeling techniques have been used which include different levels of rigor and notation. Some of these are:

• Entity Relationship Models (Chen, 1976),

• Unified Modeling Language (Object Management Group, 2010),

• SysML (Object Management Group, 2010),

• Business Process Modeling Notation (bpmn.org),

• Fundamental Modeling Concepts (Fundamental Modeling Concepts, 2010),

• Archimate (The Open Group, 2010),

• Business Motivation Model (Business Rules Group, 2010),

• Service Oriented Modeling and Architecture (Arsanjani, 2004) and Service Oriented Modeling Framework (Bell, 2008),

• Other less formalized modeling techniques are:

• Porters Value Chain Analysis (Porter, 1985),

• Component Business Models (IBM, 2010),

• Variation Oriented Analysis (Arsanjani, 1999-2000),

• TOGAF (The Open Group, 2010),

• Zachman (Zachman, 2010),

• Information Architecture (Information Architecture, 2010).

Literature Review


Process Modeling Requirements 1

• Standardized notation convention• Icons are objectively defined and standardized• Icon relationships definite and explained in annotations, process

model glossary, and process narratives• Can depict appropriate complexity• Can grow, evolve, mature• May provide manual or automated process simulation• Showing relationships among processes and different levels of

processes• Uses a repository of related models within a BPM system• Can import into a BPMS (Business Process Management Systems)

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1 International Association of Business Process Management Professionals, BPM CBOK, Version 3.0, 1st Edition, www.abpmp.org

http://www.abpmp.org/


Typical Process Modeling Elements 1

• Inputs / Outputs

• Events/ Results

• Value Add vs. Non-value Add

• Roles/ Organizations

• Data / Information

• Probabilities

• Queueing, arrival patterns, servers, and distributions

• Process times

• Wait times

• Costs

• Business Rules

10

1 International Association of Business Process Management Professionals, BPM CBOK, Version 3.0, 1st Edition, www.abpmp.org



Process Modeling Benefits

• Common symbol set, language and technique through which to communicate

• Consistent process models in form and meaning which simplifies design, analysis, and measurement while enabling re-use

• Can import and export process models among various tools

• Can transform the modeling notation into an execution language

• Import into BPMS tools

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Common Process Modeling Tools

Several most common process modeling tools used with Lean Six Sigma and process improvement methodologies are:

• SIPOC

• Process maps with Swim Lanes

• Value Stream Maps

• Event-Process-Chain (EPC) maps

• BPMN (Business process management notation)

• UML (Unified Modeling Language)

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• Enterprise Architecture: View of the business operations from a technology point of view

• Business Architecture: Alignment of the strategy of the company with business capabilities, to business functions and process components. Ties strategy and capability to process and business units

• Process Management: End-to-end view and management of activity across the entire process, and at a workflow level (within business units)

13Sandra L. Furterer © 2013

Definitions of Enterprise Architecture, Business Architecture and Process Management


Business Architecture is the enterprise planning and modeling that describes the business processes and

relevant business information, their relationships and rules that govern their interaction to enable an

organization to progress towards its vision of a future state.

The fundamental organization of a [business] system, embodied in its components, their relationships to

each other and the environment, and the principles governing its design and evolution.

(Bieberstein, Laird, Jones and Mitra,2008)

Whittle and Myrick’s definition of Enterprise Business Architecture (2004) is: The EBA defines the enterprise value streams, their relationships to all external entities and other enterprise value streams, and the events that trigger instantiation. It is a definition of what the enterprise must produce to satisfy its customers, compete in a market, deal with its suppliers, sustain operations and care for its employees. It is composed of architectures, workflows and events.

Sandra L. Furterer © 201314

Business Architecture Definitions


Process Architecture Elements

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• Strategic Business Process Architecture 1

Provides repository of enterprise through defined conceptual meta models:o Strategieso Processeso Leadershipo Information

16

Pro

cess

Arc

hit

ect

ure Strategy

Process

Leadership

Information

1 Furterer, Sandra, Systems Engineering Focus to Business Architecture: Models, Methods and Applications, Kennesaw State University Graduate Seminar Course Material, 2015.

Strategic Business Process Architecture (SBPA) Elements


StrategiesMission Vision

Culture Goals Objectives

Tactics

Strategy Model

Policies InfluencersAssessment

(SWOT)

Process Architecture


Strategic Business Process Architecture (SBPA) Elements 1


InformationModel

Workforce

Organization

Leadership

LeadershipModel


Information Applications




Process Model

Activities

Value Systems Value Chains

Processes

Business Capabilities

Applications


Business Functions

Workflows

Roles

Metrics




Process Map Architecture

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The cover page is intended to give the “Why” for the process map. It states the purpose, the individuals involved in its creation, a legend of icons used throughout the map, and a value stream complete with process times for each high level task.

Value streams highlight the high level functions of

a process.

The purpose from the project charter can

be used here.

There may or may not be a

need for a steering team.

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Process Map Cover Page

When in the “draft” stages of mapping, always indicate it

with this icon


Process Map Icons


The process pages are designed to help the user consistently develop process maps. The white space is meant as a guide for icon placement, while the gridlines help to center icons and process tasks. The gridlines disappear when the maps are printed. Date and page number fill in automatically when pages are added.

Icon placement

Tasks and decisions are to be centered on this line an inch apart.Task numbers for

reference

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Process Map Page Layout


The Activity row is where the process tasks and sequence are displayed. The main process steps should align down the center line and one inch apart. Activities will be blue if they are designed for the future state process.

Tasks and decisions are to be centered on this line an inch apart.

Task boxes can be placed under decision boxes because they do

not have corresponding icons.

Decision boxes do not need a role icon.

Each decision box needs labels on the outbound arrows.

Best practice would be to leave at least

two spaces available for edits for the first

draft.

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Activities


In the case that a decision box leads to a process off of the current page, an off page connector is used to reference where the decision leads. The numbering should start with the number of the starting connector followed by a decimal (ex. 2.1, 2.2, etc.). A text box with the page it is going to or coming from should also be included.


If process is continued on another page, place

connector, labeled with page number

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Activities (continued)

Connects to next page in

sequence


In the Role row, define who is doing the task in the same column. The text box below the icon can be edited and if necessary expanded and centered. The group role icon should be used for groups of people and the auto icon should be used for actions that are automatically done by a system. Every task will have a role.


Group Icon

The text should always be

centered under the icon.

The Auto Icon does not need to be edited.

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Roles


When process mapping, decision boxes and task boxes can over lap, but task boxes and other task boxes should not overlap.

Make sure task boxes do not overlap each

other in the same column.

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Use of Symbols


Documents are divided into two types: electronic and hard copy. This is denoted by the small “e” in the top left hand corner of the document icon. One document icon is to be placed in the document space at a time. If multiple documents are used in a step either list them in the document icon or label it a “packet” and provide more detail in an information icon or text box.


“E” for electronic

Info icon to be discussed

later

There is extra space for additional notes

in a text box

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Documents


The systems icons provide detail on where the task is being done. If the system used is electronic the blue system icon is used, if the task requires a lot of manual manipulation needed in a software system (often Excel) the manual system icon is used, and if it is not electronic (possibly a handoff) the manual icon is used. This section can also show if the task was done by phone, mail, or multiple methods. Every task should have a system/method icon.


Used when the method of

communication can vary

Excel

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Information System or Method Icons

WWW is used for accessing the internet


This section is to add any additional notes, metrics, ideas, or reviews for each task box as necessary.


Identifies improvement

ideas

Identifies metrics

collected at that task step

Provides additional space for

notes or info

For when a QC step

is done

To call out delays and

provide reason

For detailing of

reviews

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Knowledge


This section is used to add risk and controls from Enterprise Risk Management (ERM) Risk and Control Documents applicable to the process being developed. The numbering of risks and controls is the same numbering system used by ERM.


Multiple risks and controls can

be listed

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Risks and Controls


Case Study Examples

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Process Map Examples

33



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Workshop Activities

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Workshop Activities

• Now it’s your turn!

• Create a process map for one of the following:• Planning a vacation

• Going grocery shopping

• Your own process

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Conclusions

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Conclusions

Process Map Architecture:

• Supports the key elements identified in the literature for a process architecture

• Provides the needed infrastructure for documenting, analyzing and improving processes

• Connects to information systems software application inventory

• Is easy to use and maintain

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Future Research

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Future Research

• Apply process architecture for different industries and organizational sizes

• Validate strategic alignment with core processes

• Incorporate process architecture governance model

• Alignment of the process architecture to process and quality management

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References• Archimate, The Open Group, http://www.archimate.org/en/about_archimate/, 2010.

• Arsanjani, Ali, "Service-Oriented Modeling & Architecture". IBM Online article, 09 Nov 2004.

• Arsanjani, Ali, "Principles of Advanced Software Engineering: Variation-oriented Analysis, Design and Implementation", 1999-2000.

• Bell, Donald, UML basics: An introduction to the Unified Modeling Language,

• Bell, Michael, Service-Oriented Modeling: Service Analysis, Design, and Architecture. Wiley, 2008.

• Bieberstein, Laird, Jones and Mitra,2008

• Business Process Management Notation, Object Management Group/Business Process Management Initiative http://www.bpmn.org/, 2010.

• Business Rules Group, http://www.businessrulesgroup.org/bmm.shtml, 2010.

• Business Rules Group, Semantics of Business Vocabulary and Business Rules (SBVR), http://www.businessrulesgroup.org/sbvr.shtml, 2004.

• Component Business Model, IBM, http://www-935.ibm.com/services/uk/igs/html/cbm-bizmodel.html, 2010

• Fundamental Modeling Concepts, http://fmc-modeling.org/, 2010

• Furterer, Sandra, Systems Engineering Focus to Business Architecture: Models, Methods and Applications, Kennesaw State University Graduate Seminar Course Material, 2015.

• Information Architecture, http://www.iainstitute.org/, 2010.

• International Association of Business Process Management Professionals, BPM CBOK, Version 3.0, 1st Edition, www.abpmp.org

• Object Management Group, UML, http://www.omg.org/technology/documents/modeling_spec_catalog.htm#UML, 2010.

• Object Management Group, Product Rule Representation, http://www.omg.org/spec/PRR/1.0/ 2010.

• Peter Chen, Peter Pin-Shan (March 1976). "The Entity-Relationship Model - Toward a Unified View of Data". ACM Transactions on Database Systems 1 (1): 9–36. doi:10.1145/320434.320440.© Copyright Sandra L. Furterer, PhD Page 9

• Porter, Michael, Competitive Advantage, The Free Press, A Division of Simon and Schuster, New York, NY, 1985.

• Rumbaugh, James, Blaha, Michael, Premerlani, William, Eddy, Frederick, Lorensen, William, Object-Oriented Modeling and Design, Prentice Hall, Englewood Cliffs, New Jersey, 1991.

• TOGAF, The Open Group, http://www.opengroup.org/togaf/, 2010.

• Watson, Andrew, Visual Modeling: past, present and future, Object Management Group, 2010, Vice-President and Technical Director Object Management GroupTM.

• Whittle, Ralph and Conrad Myrick, Enterprise Business Architecture: the Formal Link between Strategy and Results, 2004.

• Zachman, John, Zachman Framework, http://www.zachmaninternational.us/index.php/, 2010

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