PROCESS: elementaryPROCESS: elementaryA paper on process and business process modeling… A paper on process and business process modeling…

… … “If you can't explain it simply, you don't understand it well enough.”“If you can't explain it simply, you don't understand it well enough.”Albert EinsteinAlbert Einstein

Michael A. Evens – Creative ConsultingMichael A. Evens – Creative Consultingmichael_evens@unforgettable.commichael_evens@unforgettable.com

August 2015 – UpdatedAugust 2015 – UpdatedPROCESS elementary.docxPROCESS elementary.docx

Table of Contents

PROCESS… WHAT?.......................................................................................................................................5

WIKIPEDIA (2013) says…..........................................................................................................................5

RUMMLER & BRACHE (1995) says…........................................................................................................5

DAVENPORT (1993) defines a (business) process as….............................................................................5

JOHANSSON et al. (1993) says…..............................................................................................................5

WE (CREATIVE CONSULTING… and Business Services) say…....................................................................5

PROCESS… 3 Types of Processes..............................................................................................................6

Management Processes.......................................................................................................................6

Operational Processes.........................................................................................................................6

Supporting Processes (Sub-Processes)................................................................................................6

PROCESS… Components and Characteristics...........................................................................................6

Input / Output.....................................................................................................................................6

Customer.............................................................................................................................................6

Beginning/End… Scope........................................................................................................................6

Activities (or Steps)..............................................................................................................................6

Decisions..............................................................................................................................................6

Organization / Cookbook.....................................................................................................................7

PROCESS MODELING… WHY?......................................................................................................................7

PROCESS… Business Process Modeling....................................................................................................7

PROCESS MODELING TECHNIQUES… HOW?................................................................................................8

Process Modeling Notation (BPMN)........................................................................................................8

Modeling Elements (Notation)................................................................................................................8

Flow Elements......................................................................................................................................8

Connections.......................................................................................................................................10

Swimlanes (Partitions).......................................................................................................................11

Artifacts.............................................................................................................................................12

Creating a Business Process Model (BPM).............................................................................................12

What do we need to know?...............................................................................................................13

Simple Steps......................................................................................................................................13

'As Is' or Baseline Model....................................................................................................................14

PROCESS… EXAMPLES...............................................................................................................................14

Example w/Narratives...........................................................................................................................14

Create Major Release (Diagram)........................................................................................................14

Create Major Release (Legend and Narrative)...................................................................................15

Example w/Swimlanes...........................................................................................................................18

Software Configuration Management Process Recommendation.....................................................18

PROCESS… METHODOLOGIES....................................................................................................................19

Six Sigma (DFSS, DMAIC and DMADV)...................................................................................................19

DFSS...................................................................................................................................................19

DMAIC...............................................................................................................................................20

DMADV..............................................................................................................................................20

SIPOC METHOD.....................................................................................................................................21

CMMI.....................................................................................................................................................22

CMMI for Development.....................................................................................................................23

CMMI for Services.............................................................................................................................23

CMMI for Acquisition.........................................................................................................................23

PROCESS… CONCLUSION...........................................................................................................................24

GLOSSARY… a few selected terms and acronyms......................................................................................25

'As is' and 'To be' models...................................................................................................................25

Brainstorming....................................................................................................................................25

Business Architecture........................................................................................................................25

Business Model..................................................................................................................................25

Business Process................................................................................................................................25

Business Process Model.....................................................................................................................26

Business Process Modeling................................................................................................................26

Business Process Change Cycle..........................................................................................................26

Business Reference Mode.................................................................................................................26

BPR - Business Process Re-engineering (also known as BPI - Business Process Innovation)..............26

BPI - Business Process Improvement.................................................................................................26

BPM - Business Process Management...............................................................................................26

BPM - Business Process Mapping......................................................................................................27

BPMN - Business Process Modeling Notation....................................................................................27

BPR - Business Process Redesign.......................................................................................................27

Enterprise Architecture.....................................................................................................................27

Gateway.............................................................................................................................................27

Notation.............................................................................................................................................27

OBASHI..............................................................................................................................................27

UML - Unified Modeling Language....................................................................................................27

What if? (scenario)............................................................................................................................27

Value-added/Added-value.................................................................................................................28

ACKNOWLEDGEMENTS..............................................................................................................................29

Disclaimer..................................................................................................................................................29

PROCESS… WHAT?

WIKIPEDIA (2013) says…… “a process, business process or business method is a collection of related, structured activities or tasks that produce a specific service or product (serve a particular goal) for a particular customer or customers.

It often can be visualized with a flowchart as a sequence of activities with interleaving decision points or with a Process Matrix as a sequence of activities with relevance rules based on the data in the process.”

RUMMLER & BRACHE (1995) says…… “a definition clearly encompasses a focus on the organization’s external customers, when stating that… a business process is a series of steps designed to produce a product or service.

Most processes (...) are cross-functional, spanning the ‘white space’ between the boxes on the organization chart. Some processes result in a product or service that is received by an organization's external customer. We call these primary processes. Other processes produce products that are invisible to the external customer but essential to the effective management of the business. We call these support processes.”

DAVENPORT (1993) defines a (business) process as…… ”a structured, measured set of activities designed to produce a specific output for a particular customer or market.

It implies a strong emphasis on how work is done within an organization, in contrast to a product focus’s emphasis on what. A process is thus a specific ordering of work activities across time and space, with a beginning and an end, and clearly defined inputs and outputs: a structure for action. ... Taking a process approach implies adopting the customer’s point of view. Processes are the structure by which an organization does what is necessary to produce value for its customers.”

JOHANSSON et al. (1993) says…… “a process is a set of linked activities that take an input and transform it to create an output.

Ideally, the transformation that occurs in the process should add value to the input and create an output that is more useful and effective to the recipient either upstream or downstream.”

WE (CREATIVE CONSULTING… and Business Services) say……In the context of this paper, we will expand on this definition to include the word “repeatable.” Our definition – Creative Consulting et al. (2013) further defines a process… “a repeatable set of activities documented to achieve a consistent result, output, product, or service …preferably successful. ”

For example, a recipe for baking a cake is a process that is simple, repeatable and consistent. It has a beginning and an end. It has input and output and a given set of steps or activities (sometimes including a decision) to create that output.

PROCESS… 3 Types of ProcessesThere are three basic types of processes. Exceptions to this elementary, wide and general statement exist, but for purposes of a 10,000 foot overview and nature of this paper, we are making this claim.

1. Management ProcessesA Management Process is a process of planning, controlling, organizing and leading execution of any type of activity, such as a project (e.g. project management process), other process or group of processes.

Typically, the senior or executive management in the organization is responsible for defining and executing its management process. But, in the case of “Project Management,” the project manager is typically responsible for executing the process.

2. Operational ProcessesOperational processes are those that encapsulate the core of the business and create the primary value stream. Examples of operational processes are budgeting, purchasing, manufacturing, advertising, marketing, and sales. Departmental kinda stuff vs. Corporate level stuff.

3. Supporting Processes (Sub-Processes)Supporting processes support the core processes. Examples include; technical support, accounting, call center, recruitment, etc.

PROCESS… Components and CharacteristicsProcesses have many components and characteristics outside of what we have listed. But, notice the word “must” in each of the items described. A process would not be a process without the following mustsS:

Input / OutputA process must have clearly defined boundaries, input and output. Similar to following the recipe for baking a cake, if you follow a defined process, over-and-over, you will achieve a constant result. If the recipe contains input that is erroneous or wrong, the output will be wrong… consistently. A cake with no milk would be a little on the dry side.

CustomerA process must have a recipient of the process' outcome, a customer.

Beginning/End… ScopeIn this process for baking a cake, the hypothetical recipe asked us to start the process with preheating the oven. However, the process or recipe does not ask us to turn the oven off. The process for baking a cake is complete when the cake is taken out of the oven. So, defining the scope of the process is necessary. A process must define a specific beginning and end.

Activities (or Steps)A process must consist of activities that are ordered according to their position in time and space.Furthermore, if the steps in the process or recipe are skipped or repeated, the process will fail to provide the desired result. If you neglect to cook the cake, it won’t become cake.

DecisionsThere are points in many processes that require a judgment or decision to be made. Using the cake recipe analogy, when the time comes where most cakes have achieved the desired degree of doneness, you are asked to make a decision. There is a test. A yes or no decision must be made. Bake the cake longer or take it out of the oven.

Organization / Cookbook A process cannot exist in itself; it must be embedded in an organizational structure. Or, back to the simple cake example, a cookbook.

PROCESS MODELING… WHY?Why do process modeling? This is a question that can only be answered by you and your organization. Processes don’t need to be modeled. However, there are many benefits in knowing what a process model has done and what it can do for your organization.

PROCESS… Business Process Modeling Process Modeling or ‘Business Process Modeling’ (BPM) is a modern term and methodology which has evolved through different stages and names, beginning during the 'division of labor' of the late 1700s, when manufacturing first moved into factories from cottage industry.

The term 'business' in Business Process Modeling is interchangeable with 'Organization'. Business Process Modeling is not only carried out in conventional businesses; the methodology is increasingly applicable to all sorts of other organizations, for example government agencies and departments, charities and cooperatives, etc.

Business Process Modeling is a method for improving organizational efficiency and quality. Its beginnings were in capital/profit-led business, but the methodology is applicable to any organized activity. That is …any BUSINESS …any ORGANIZATION …any ORGANIZED ACTIVITY.

A process mapping/modeling methodology for software application development would be the same as it would be for manufacturing widgets. The methodology is a focus on the business logic of the process …how work is done, instead of taking a product perspective …what is done.

Business Processes are designed and developed to add value for the customer and should not include unnecessary activities. The outcome of a well designed business process is increased effectiveness (value for the customer) and increased efficiency (less costs for the company).

Process Modeling also helps with… Communication and Comprehension Understanding / Visual Depiction Accountability Reliability Problem Solving Breaks Down the Barriers Avoiding Functional Silos Circumventing Departmental Autonomy

Avoiding Waste Operational Ambiguity Effectiveness… Satisfaction Efficiency… Cost Reduction… Productivity Continuous Process improvement Quality / Consistency / Compliance Reporting of Performance Transparency Aligning Operations with Strategy Control and Competitive Advantage

PROCESS MODELING TECHNIQUES… HOW?There are many kinds of tools and techniques available to help in defining a business process or Business Process Model (BPM), such as computer software applications, but the basics can also be achieved by using a pen and paper or a bunch of sticky notes. In some cases, pen, paper and sticky notes are more effective ways of creating and communicating fundamental ideas than computers. Computers can get in the way and can exclude people. Defining process requires people to work.

Process Modeling Notation (BPMN)Unified Markup Language (UML) has been associated more with software development and systems design than with analysis and modeling of business processes. However, UML provides a plethora of behavioral models which are useful in modeling the processes and it has become a familiar and useful tool to many in all areas of business. UML diagrams, however, are a notation without a methodology. (See the section ‘Process… Methodology’ later in this document).

NOTE: Recently, process modeling vendors joined together to create a new Business Process Management Notation (BPMN). This notation, which is now administrated by the OMG (Object Management Group), is another example of a process notation that does not have an associated methodology. On the other hand, most of today’s methodologies – like the BPM vendors – use the BPMN notations.

Modeling Elements (Notation)Models consist of simple diagrams constructed from a limited set of graphical elements for consistency in communication. For business owners, users and developers, they simplify understanding business activities' flow and process.

These four categories enable creation of simple business process diagrams (BPDs). BPDs also permit making new types of flow objects or artifacts, to make the diagram more understandable.

Flow Elements

Activities (Steps) An activity is work that is performed within a business process and is represented by a rounded rectangle.

Events An event is something that happens during the course of a business process which affects the sequence or timing of activities of a process. Events are represented as small circles with different boundaries to distinguish start events (thin black line), intermediate events (double line) and end events (thick black line). Events can show icons within their shape to identify the trigger or result of the event.

Gateways Gateways are used to control how sequence flows converge and diverge within a process. Gateways can represent decisions, where one or more paths are disallowed, or they can represent concurrent forks.

Inclusive / Exclusive GatewaysAn Inclusive Gateway (Inclusive Decision) can be used to create alternative but also parallel paths within a Process flow. Unlike the Exclusive Gateway, all conditions are evaluated.

Parallel GatewayA Parallel Gateway is used to synchronize (or combine) parallel flows and to create parallel flows. A Parallel Gateway creates parallel paths without checking any conditions.

Complex GatewayThe Complex Gateway can be used to model complex synchronization behavior. An Expression “Activation Condition” is used to describe the precise behavior.

Generate

Request

Get MYInforma

tion

Change MY

Information

Start Intermediate End

Inclusive Exclusive

Parallel

Event Based / Exclusive Event BasedThe Event-Based Gateway represents a branching point in the Process where the alternative paths that follow the Gateway are based on Events that occur. An Exclusive Event Based Gateway is based on data that is not visible to Process, thus, requiring the use of the Event-Based Gateway.

Parallel Event GatewayThe Parallel Event Gateway will wait for all an event to occur before triggering the flow through its outgoing Sequence Flows.

Exclusive Event GatewayAn Exclusive Gateway (Decision) is used to create alternative paths within a Process flow. Only one of the paths can be taken, this means the gateway is exclusive.

Complex

Event BasedExclusive

Event Based

Parallel Event

Exclusive Event

ConnectionsDifferent connecting objects are necessary to represent different types of flows.

Sequence FlowA sequence flow is used to show the order in which activities are performed within a process. A sequence flow is represented by a line with an arrowhead.

Message Flow A message flow is used to show the flow of messages between two entities, where pools are used to represent entities. A message flow is represented by a dashed line with a light-colored circle at the source and an arrowhead at the target.

AssociationAn association is used to associate information and artifacts with flow objects. An association is represented by a dashed line which may or may not have a line arrowhead at the target end if there is a reason to show directionality.

Data AssociationA Data Association is used to show the flow of information (data) between activities in a business process. A data association is represented by a dashed line which may or may not have a line arrowhead at the target end if there is a reason to show directionality.

Swimlanes (Partitions)A swim lane (or swimlane) is a visual element used in process flow diagrams, or flowcharts, that visually distinguishes responsibilities for sub-processes of a business process. Swim lanes may be arranged either horizontally or vertically.

Sequence Flow

Message Flow

Association

Data Association

When used to diagram a business process that involves more than one department, swimlanes often serve to clarify not only the steps and who is responsible for each one, but also how delays, mistakes or cheating are most likely to occur.

Many process modeling methodologies utilize the concept of swimlanes, as a mechanism to organize activities into separate visual categories in order to illustrate different functional capabilities or responsibilities (organizational roles).

Swimlanes in BPMN consist of two types:

PoolRepresents major participants in a process, typically separating different organizations. A pool contains one or more lanes (like a real swimming pool). A pool can be open (i.e., showing internal detail) when it is depicted as a large rectangle showing one or more lanes, or collapsed (i.e., hiding internal detail) when it is depicted as an empty rectangle stretching the width or height of the diagram.

LaneUsed to organize and categorize activities within a pool according to function or role, and depicted as a rectangle stretching the width or height of the pool. A lane contains the flow objects, connecting objects and artifacts.

Artifacts

Data Objects A data object does not have a direct affect on a process but does provide information relevant to the process. It is represented as a rectangle with the top corner folded over.

Pool ………………………………………...Lane 1…….Lane 2…..Lane 3…..Lane 4……Lane 5...Lane 6…….

Pool ………………………………………...Lane 1…….Lane 2…..Lane 3…..Lane 4……Lane 5...Lane 6…….

Groups A group is an informal means for grouping elements of a process. It is represented as a rectangle with a dashed line border (RED).

AnnotationsAn annotation is a mechanism for the BPMN modeler to provide additional information to the audience of a BPMN diagram.

CREATING A PROCESS MODEL (Business Process Model - BPM) This section provides a guide to creating an initial, 'as is' or baseline model … in other words - the current situation.

A process model is essentially a breakdown of a process to determine how it flows and, ultimately, how effective it is. The focus is on the business logic of the process …how work is done, instead of taking a product perspective …what is done.

A) DEFINE BASELINE (‘As Is’)

1. Define the Boundaries (start and end points or scope) What begins the process? How does the process end?

A process boundary is the beginning point and the end point of a process.

2. Define the GoalsWhat is the main objective? What is desired outcome of the process? What is the customer need and how is that customer need fulfilled?

Card Stored DataDocument Etc…

Pool ………………………………………...Lane 1…….Lane 2…..Lane 3…..Lane 4……Lane 5... Lane 6…….

It is typically represented byan open rectangle containingthe annotation text.

Most senior managers will take the time to develop and articulate appropriate strategic goals for their business. Such goals should be achievable and should reflect a realistic assessment of the current and projected business environment.

3. Define the People/Role and Process Team People (roles) are essential to process modeling.

PeopleThese are the people who are involved in the process or execution of the process. They are the ones that know what activities are performed or should be performed and are responsible in the process for an activity or group of activities.

How do they (people/roles) complete their activities and what is the order of those activities? What activities are performed and who performs them?

Process Manager / SponsorThe Process Manager / Sponsor is a person responsible for the initiation and implementation of a project.

They ensure that there are sufficient resources available to improve a process. This person usually sits in senior management within an organization. They have the final say in any resolution of issues that may occur.

Process Owner Person who has the ultimate responsibility for the performance of a process in realizing its objectives measured by key process indicators, and has the authority and ability to make necessary changes.

Process Owners are very familiar with all of the characteristics of a process and usually have control over a BPM project’s direction. They are responsible for the design and implementation of process improvement within an organization.

Project ManagerThis role refers to someone who is responsible for the planning, organizing, management and leadership within a BPM project.

Their role relates to an endeavor which is undertaken to meet specific goals and objectives which are defined by the Process Owner. Depending on the size of a particular project, they may (along with other Project Managers) report to a Program Manager. They take ownership for the performance of their individual project and aim to achieve all defined goals and objectives while keeping within any constraints as set out by the Process Owner and Process Manager.

Program ManagerA role that sometimes exists within a BPM project – depending on the size of an operation – and identifies someone who is responsible for managing a program and the relevant Project Managers.

They are also responsible for defining and managing program plans to hand down to their Project Managers, as well as creating program tasks, schedules and program improvement timelines. They work

with the Process Owner to manage the program budget and provide updates compiled from data received from Project Managers.

Enterprise ArchitectThis role refers to someone who practices enterprise architecture, an information technology (IT) management discipline that operates within organizations.

They work with subject matter experts, stakeholders and leaders within an organization to build a holistic picture of an organization’s strategy, processes and IT assets. They work with this knowledge and link the business mission and strategy to its IT strategy – ensuring that they are in alignment. The Enterprise Architect documents this information using models that demonstrate how the current and future needs of an organization can and will be met in an efficient, sustainable and adaptive manner.

Business Process AnalystThis is a role associated with the modeling and visual representation of business processes.

A person in this role will work closely with Project Managers and process users to identify core business processes and workflows. They will analyze these, document them using process modeling software and identify associated issues and risks. Their role involves the development of clear and concise process maps and the identification of associated business requirements.

Other common titles for the role can include Process Modeler, Business Process Engineer, Workflow Engineer, Business Process Modeler or Business Analyst.

4. Define what is Exchanged? What is exchanged between (in and out) the activities.

Budget ProcessResources specified in a budget (capital, materials, people), or whatever is required to complete a program, project, or task.

Management ProcessThe management process through which goods and services move from concept to the customer. It includes the coordination of four elements called the 4 P's of marketing:(1) identification, selection and development of a product,(2) determination of its price,(3) selection of a distribution channel to reach the customer's place, and(4) development and implementation of a promotional strategy.

DataData exchange is the process of taking data structured under a source schema and actually transforming it into data structured under a target schema, so that the target data is an accurate representation of the a goal.

MessagesIn a business process model, processes(sub-processes), activities or objects can send and receive messages to other processes(sub-processes), activities or objects. By waiting for messages, processes can also synchronize, trigger or exclude activities.

B) POSITION ACTIVITIES ('As Is') The first draft of the model will involve a lot of positioning and repositioning of events and activities. Make sure you use a method that is flexible and easily changed. As discussed earlier, this may be a good time to use the sticky notes. If you're working with a group of people, everyone needs to be able to see it.

Positioning or Sequencing Activities… Suggestions identify the tools identify the roles identify the outputs sequence the activities that make up time, tools, roles, output identify types of information required to perform activities identify the process group to which each time process belongs recognize how the information from input affects activity identify the role that a schedule plays identify a diagram that shows the appropriate dependency relationships for a given set of

activities recognize examples of project situations as creating either lead or lag in a project schedule

C) GENERATE MODELOnce you have established an agreed sequence of events, you can create it as a flowchart using a more sophisticated tool, such as a generic software application … for example, Microsoft’s Visio. Or, you may choose a specialized proprietary software package … for example, Enterprise Architect.

This is a visual demonstration of the necessary process you need to do in order to achieve the task you are giving. Flow charts consist of numerous symbols beginning the business process, representing decisions that need to be made, and showing the end result of the business process. Flow charts can also be used to clearly explain steps for said task in a visual as well as descriptive manner to train new employees along with being able to refresh seasoned employees effectively.

1. Begin the process by writing the first step to your task inside of an oval shape.

2. Write the next step as an activity performed in the process using a rectangle shape. Use arrows to point the viewers in the correct directional flow of the task's process.

3. Write yes or no questions in diamond shapes for steps that require decisions. You must have 2 arrows coming out of this diamond shaped step to signify what the person does next based on the answer to the step's question. This will make your flow chart fork into 2 separate sections of steps to follow when based on the user's answer.

4. Create more rectangle boxes after your decision diamond in order to show what active tasks are necessary to continue the task's process.

5. Finish the flow chart just as you started it, by using an oval shape to signify it's completion.

D) VALIDATE PROCESSGo over your flow chart numerous times with both employees who know the process as well as employees who have never done the process in order to ensure it is complete and successfully accuracy.

Also at this stage, you may want to check your model with the users by doing ‘live observations’ of the process in action. People in meetings invariably forget the exact steps or actions or say what should be happening, rather than what really happens. …a live observation or validation of the process would be a ‘REALITY CHECK.’

PROCESS… EXAMPLES

Example w/Sequence Numbering and Narratives

Create Major Release (Diagram)In this process diagram (Visio), roles, responsibilities and activities are described in narratives (corresponding to sequence number). NOTE: In the example that follows, Sequence Numbers 1, 2, and 3 are grouped for further description.

Create Major Release (Legend and Narrative)The sequecnce numbers 1, 2, and 3 are described in the following:

Connecting Lines (Flow)Green Line: Development ProcessBlue Line: Protected Process (CMS)Red Line: Unprotected Process

Sequence Numbers (Flow)The narratives below describe the activities for the sequence numbers on the previous graphic.

1. Developers use “ORACLE Designer” to generate the Data Definition Language (DDL) files.

2. Developers populate the DBCHGS$D directory with DDL files. These files are *.VEW, *.TAB, *.CON, *.IND, etc. These files can next be inserted directly into their respective TDD directories because they don’t require additional processing at this stage.

3. Developers also populate the REFDATA$D directory with DDL files. These files are *.SQL files that will require processing before they can be inserted into their respective directories in the TDD library.

4. Developers insert the Data Manipulation Language (DML) files directly into the CMS library. These are the files that control the database objects.

5. Developers also ………

NOTE: These are examples only and are used to illustrate how sequence numbering may be narrated.

Example w/Swimlanes and Annotations

Software Configuration Management Process RecommendationIn this information technology related process diagram (Visio), roles and responsibilities are illustrated within swimlanes w/annotations.

NOTE: This is an example only and is used to illustrate how an annotation is used.

PROCESS… METHODOLOGIESIn defining a successful process, it would seem only logical to follow a successful process modeling methodology. The following are selected methodologies based on their popularity, success, adaptability and other valuable attributes.

Six Sigma (DFSS, DMAIC and DMADV)Six Sigma is all about improving efficiencies and reducing costs of existing products. Many companies like General Electric, Honeywell, Raytheon and IBM have realized billions of dollars in cost savings, and process and quality improvement.

The goal of Six Sigma is to fix problems and produce products with extremely low defects (3.4 defects in 1 million opportunities equivalent to 99.9997% good product) based on those requirements that are critical to the customer. Rigorous root-cause analysis and statistical techniques identify the source of the defects, and corrective actions are taken to implement a solution, and ensure that the defect never occurs again.

The Six Sigma process is a standardized problem solving methodology that can be incorporated into any business. This turn-key five step process is used universally around the world. Benefits of Six Sigma initiatives are realized within a matter of four to six months and directly hit the bottom line.

DFSSDesign for Six Sigma (DFSS) is a business process that is incorporated into a company’s existing product development process. It takes products from concept to commercialization using data-driven decision making processes, delivering high quality, consistent, capable, defect-free products by focusing on critical design and process parameters based on the customer and market needs. It uses quality and financial metrics, data and statistics, team dynamics, risk management, resource management and project management. Design for Six Sigma uses a systematic approach to drill down from the customer’s requirements, to detailed product properties and specifications, to product architecture and design

Team Lead

RTC RTC

RTCTeam Lead initiatesWORK ITEM andassigns to Developer

(based on product requirements), and finally to detailed process control. All identified product and process critical parameters are controlled in production to ensure that the product is of high quality, is consistent every time, and meets the customer’s requirements.

Design for Six Sigma (DFSS) — The Basic ProcessDeveloping the Business Case — Determining market/ customer unmet needs. Understanding and quantifying the customer and market requirements. Evaluating the return on investment, growth, revenue and profitability. Evaluating the commercial risks.

Formulating the Technical Requirements — Translating the customer requirements to quantifiable product specifications and performance standards. Conducting feasibility analysis and technical risk assessment. Developing the project plan.

Designing and Developing — Product design and development. Determining the critical parameters in design and process that affect the product performance and critical customer requirements. Assessing viability, costs and profitability of prototype.

Verifying and Validating — Ensuring manufacturability of the product. Effective transfer from bench to production. Validating product with the customer and market.

Manufacturing and Commercializing — Full scale production and product launch. Tracking product manufacturability and capability. Implementing the right sales and commercial strategy. Obtaining customer and market feedback.

Controlling and Sustaining — Ensuring the systems, procedures and processes are in place to continue to produce high quality, consistent, profitable products. Using continuous improvement to improve the process.

DMAICThe DMAIC process of Six Sigma is a proven successful model used in many industrial sectors. DMAIC is used for projects aimed at improving an existing business process.

The DMAIC project methodology has five (and sometimes six) phases …DEFINE — Define the system, the voice of the customer and their requirements, and the project goals, specifically.

MEASURE — Measure key aspects of the current process and collect relevant data.

ANALYZE — Analyze the data to investigate and verify cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered. Seek out root cause of the defect under investigation.

IMPROVE — Improve or optimize the current process based upon analysis, using techniques such as design of experiments, mistake proofing, and standard work to create a new, future state process. Set up pilot runs to establish process capability.

CONTROL— Control the future state process to ensure that any deviations from target are corrected before they result in defects. Implement control systems such as statistical process controls, production boards, visual workplaces, and continuously monitor the process.

… And sometimes, organizations add a RECOGNIZE step at the beginning, which is to recognize the right problem to work on, thus yielding an RDMAIC methodology.

DMADV DMADV is used for projects aimed at creating new product or process designs. The DMADV project methodology features five phases:DEFINE — Define design goals that are consistent with customer demands and the enterprise strategy.

MEASURE — Measure and identify CTQs (characteristics that are Critical To Quality), product capabilities, production process capability, and risks.

ANALYZE — Analyze to develop and design alternatives

DESIGN — Design an improved alternative, best suited per analysis in the previous step

VERIFY — Verify the design, set up pilot runs, implement the production process and hand it over to the process owner(s).

Rules for Implementing the DMADVDefine Customer Needs — The DMADV begins by helping define the customer needs better. The difference is not trivial. While methodologies like DMAIC begin by defining the process requirements, DMADV is customer focused. The orientation is towards studying the implicit and explicit needs of a customer. Customer need not be a person or even an organization. The process that uses your output as its input can also be your customer. Hence the emphasis is on backward induction. One starts be thinking how they want things to be and work backwards.

Measure Specifications — At this stage, consumer needs are translated into metrics that can be measured. This is because unless something is measurable, it is difficult to objectively state whether any improvement has taken place. Specifications of the way needs are being met and they way they ought to be met give the BPM analysts an objective measure.

Analyze the Problem — At this stage the problem is analyzed on a deeper level. The behavior of each activity in the process as well as the value it adds is observed. Finally the problem point is found out and/or better ways of organizing the process are looked at.

Design to Meet Customer Needs Better — At this stage, many alternative processes are designed. These processes are then looked upon as alternative solutions and the one that meets the customer requirements best are chosen.

Simulate to Verify — The DMADV methodology uses objective statements to verify whether consumer needs are being met better. Simulations are run after the new process is deployed. The measurements are then compared with the previous measurements to ensure that improvement has taken place and in the right direction.

SIPOC METHODSIPOC (sometimes COPIS) is a tool that summarizes the inputs and outputs of one or more processes in table form. The acronym SIPOC stands for suppliers, inputs, process, outputs, and customers which form the columns of the table. It was in use at least as early as the Total Quality Management programs of the late 1980s and continues to be used today in Six Sigma and Lean manufacturing.

The SIPOC methodology is one of the most useful concepts in the hand of a BPM expert. The idea behind the SIPOC methodology is to view each process as a different organization in itself. Each process therefore has its own suppliers, inputs and corresponding customers and outputs. The aggregation of all these processes is the system. This helps define each process with clarity. It also helps find what exactly is going wrong where. For instance, if there is a system outage, then the process is not to blame. Corrective action must be taken to ensure that the infrastructure suppliers perform better. Here are some of the salient features of the SIPOC methodology.

High Level Process Map — A SIPOC methodology is in-effect a high level process map. It does not have details regarding who is supposed to be doing what. Rather it defines the working relationships between the various stakeholders. Some steps are required to effectively implement the SIPOC methodology.

Rules for implementing SIPOCAcquaint Suppliers — A large number of issues arise in the process because the suppliers are not well versed with the requirements. The suppliers could be internal or external to the organization but that is not the point of contention. The idea is orient the suppliers and make them aware of the rules, policies and procedures set for them. The Service Level Agreements must be explicitly stated to ensure that the suppliers know exactly what is expected of them.

Scheduling Inputs —Based on the negotiations and inputs from suppliers, one must carefully schedule inputs. Inputs can be in the form of men, money, material, machinery or information. The inputs must be provided to the process in the most optimum manner. There are many operations research techniques which can b e used in this regard to lower the cost levels and increase the service levels.

Process:The SIPOC provided an effective methodology to get an in detail look at the process. Some things that are usually defined as the part of SIPOC are as follows:BOUNDRIES — The process boundaries must be explicitly stated. Blurred boundaries lead to ambiguity which further leads to non performance of tasks.

SUB-PROCESSES — The intermediate processes and inputs and outputs must be clearly defined as a part of the process definition.

PROCESS OWNER — One person must be made accountable to see end to end execution of the process. This person will take care of any intermediate challenges that come in the way.

OUTPUTS — Outputs must be expresses in terms of deliverables which can be verified. Therefore having outputs such as customer satisfaction is not correct. This can be the purpose of the process, however the output will be something like the best possible service (define using SLA) provided in the least

possible time (Specify time in minutes). It is important to keep the outputs quantifiable because what cannot be measured cannot be managed.

CUSTOMER — The customer’s job is to consume the outputs of the process as well as provide feedback. The feedback could be related to the current performance of the process. It could also be regarding the future changes expected in the outputs of the process. For instance, the sales department is the customer of operations. They should communicate to operations if they see a period of slow sales so that production can be adjusted accordingly.

CMMICapability Maturity Model Integration (CMMI) was developed by a group of experts from industry, government, and the Software Engineering Institute (SEI) at Carnegie Mellon University. CMMI models provide guidance for developing or improving processes that meet the business goals of an organization. A CMMI model may also be used as a framework for appraising the process maturity of the organization. By January of 2013, the entire CMMI product suite was transferred from the SEI to the CMMI Institute, a newly created organization at Carnegie Mellon.

CMMI originated in software engineering but has been highly generalized over the years to embrace other areas of interest, such as the development of hardware products, the delivery of all kinds of services, and the acquisition of products and services. The word "software" does not appear in definitions of CMMI. This generalization of improvement concepts makes CMMI extremely abstract. It is not as specific to software engineering as its predecessor, the Software CMM.

CMMI for DevelopmentRepeatable - Maturity Level 2Defined - Maturity Level 3Quantitatively Managed - Maturity Level 4Optimizing - Maturity Level 5

CMMI for ServicesManaged - Maturity Level 2Defined - Maturity Level 3Quantitatively Managed - Maturity Level 4Optimizing - Maturity Level 5

CMMI for AcquisitionManaged - Maturity Level 2Defined - Maturity Level 3Quantitatively Managed - Maturity Level 4Optimizing - Maturity Level 5

NOTE: The Standard CMMI Appraisal Method for Process Improvement (SCAMPI) is an appraisal method that meets all of the ARC (Appraisal Requirements for CMMI) requirements. Results of an SCAMPI appraisal may be published (if the appraised organization approves) on the CMMI Web site of the SEI: Published SCAMPI Appraisal Results. SCAMPI also supports the conduct of ISO/IEC 15504 (not mentioned in this paper), also known as SPICE (Software Process Improvement and Capability Determination), assessments etc.

Process… CONCLUSIONDifferent methodologies are better for some organizations and less effective when used for other organized activities or organizations.

Given the ferocious rate of change in business, business processes and business process approaches, leading methodologies will continue to change in the time ahead.

There are analysis, redesign approaches and methodologies designed to help business managers, others designed for people improving quality control, and others designed to help business analysts or software developers, yet all these are developed for the purpose defining a process that is …a repeatable set of activities documented to achieve a consistent result, output, product, or service …preferably successful.

CREATIVE CONSULTING… and Business Services will endeavor to keep pace with approaches and methodologies in Process Modeling to provide the best service possible to the business community.

… “Make everything as simple as possible, but not simpler.”Albert Einstein

GLOSSARY… a few selected terms and acronymsDifferent organizations refer to the elements related to Business Process Modeling in different ways. This is complicated by the fact that acronyms can stand for more than one thing, and are often used interchangeably.

For example… BPR stands for Business Process Re-engineering as well as Business Process Redesign. BPM itself stands for Business Process Modeling, Business Process Model, and Business Process Management. In the healthcare sector incidentally BPM would more readily be interpreted to mean Beats Per Minute, relating to pulse rate, which emphasizes the need to explain acronyms when used.

Organizations develop their own ways of referring to the different elements. They know what they mean, but someone from another organization could become very confused! This glossary may help anyone feeling lost.

'As is' and 'To be' modelsThe common two perspectives of a modeling exercise - Where are we now?, and Where do we want to be? -

The 'as is' or baseline model is an accurate depiction of what actually happens now. Once the model is developed, it is used to analyze and improve the process.

The 'to be' model is a proposed diagram of how the future process could look, incorporating improvements. This is used to demonstrate, model and test the new process and then to implement it.

Brainstorming Not usually part of BPM technical language, but actually a very useful initial stage in mapping or attempting to represent/understand/agree/scope a BPM project given little or no information to begin with. Also a useful way to achieve essential involvement, input, support, etc., from people affected by the modeling exercise.

Business ArchitectureA vague and widely used term basically referring to the structure of a business.

Business Model A vague term used to refer to how a business aims to operate and make money in a given market. This term is not directly related to Business Process Modeling. A detailed business model might typically contain descriptions of basic business processes implied or necessary for the model to operate, but a business model is mainly concerned with strategy and external market relationships, rather than the internal processes which feature in BPM.

Business ProcessA structured series of work activities, IT interventions and events that generate one complete service or product for an organization’s customers.

Business Process ModelA representation - usually computer-generated and diagrammatic, but can be a low-tech whiteboard or flipchart and marker pens and sticky notes - of a process within a business. Two models are usually produced: an 'as is' and a 'to be'.

The process(es) featured in a Business Process Model can be very simple or highly complex, and will typically involve different departments working (hopefully) together while the provision or creation of a product or service flows through different stages and decision-points in an organization on its way to the customer. A Business Process Model for a large process can be comprised of other smaller modeled processes which contribute to the whole. In theory an entire huge business can be modeled, although for the modeling to be useful and meaningful to people it is normally built in sections, each representing a self-contained process alongside potentially scores, hundreds or even thousands of others, all inter-relating, hopefully smoothly, efficiently and enjoyably. (The 'enjoyable' part is not a technical necessity, but is actually important for any model to translate from theory into sustainable practice.)

Business Process ModelingThe term which refers to the methodology and techniques of producing a Business Process Model, or several Business Process Models, in the course of business improvement/development or quality management or change management, etc. (Modelling is UK-English; Modeling is US-English.)

Business Process Change Cycle An overall term for the life cycle of business processes, including the external environment in which the organization operates. This external environment drives change in the business processes and the organization responds to it by adjusting its strategy and goals. As the external environment keeps changing, the cycle also changes, prompting continuous change and improvement to business processes.

Business Reference ModeA (usually computerized and diagrammatic) key to understanding and using a Business Architecture Model. It presents certain core structural elements as fixed, thereby encouraging and enabling others using or developing the model to understand and adhere to essential aspects of structural policy and foundation. In this respect a Business Reference model may be relevant to Business Process Modeling

BPR - Business Process Re-engineering (also known as BPI - Business Process Innovation)A radical approach to restructuring an organization in every area, starting with what the organization is trying to achieve, rethinking its core processes and redesigning every one. It is a way of reassessing and restructuring the whole organization, all at once, starting from scratch.

BPI - Business Process ImprovementThis refers to improving existing processes, continuously and incrementally, reducing waste and driving efficiency. Six Sigma is currently one of the most popular of many BPI approaches in use today.

BPM - Business Process Management Used in two different ways by two different groups within the business processing community: Firstly, it is used by the people and process management group to describe the overall management of business process improvement, aligning processes with an organization’s strategic goals: designing, implementing and measuring them and educating managers to use them effectively. Secondly, it is used by IT people to describe the systems, software and applications that provide the process framework.

BPM - Business Process MappingOften used interchangeably with Business Process Modeling, Business Process Mapping is also used to mean documenting all the processes in the business, showing the relationships between them. This provides a comprehensive visual overview of the processes in an organization.

BPMN - Business Process Modeling NotationA 'branded' Business Process Modeling notation system of the OMG Consortium, representing several hundred primarily US computer-related corporations.

BPR - Business Process RedesignRethinking, redesigning and implementing one complete process using Business Process Modeling tools.

Enterprise ArchitectureBasically the same as Business Architecture. Enterprise is a relatively modern term for a business organization or company than 'business', probably because business has quite specific associations with profit and shareholders, whereas the word enterprise can more loosely encompass all sorts of business-like activities which might be constituted according to mutual or cooperative rather than traditional capitalistic aims. Enterprise is also a popular way to refer to business development and entrepreneurial creativity. The relevance of all this to BPM is merely the use of the word enterprise in BPM terminology, where previously the word 'business' would have been used.

GatewayA stage in a Business Process Model diagram or notation at which decision or choice is made because more than one main option or outcome exists.

NotationThe technical term for a Business Process Model diagram or computer-generated map or flowchart.

OBASHIA methodology, and related aspect of BPM, for mapping and developing how IT systems relate to organisational operations (OBASHI stands for Ownership, Business Processes, Applications, Systems, Hardware, and Infrastructure).

UML - Unified Modeling Languagea visual representation/design system for software-led modeling, overseen by the OMG Consortium (as with BPMN).

What if? (scenario)A popular term given to discussion or modeling of possible shapes, structures, resourcing and any other options that are available to people considering change in businesses and organizations. The 'What if?' principle extends far beyond Business Processes, but is a useful technique in team-working and attempting to make BPM methods more consultative and involving. This is especially important given that the nature of BPM (the computer systems, terminology, highly detailed aspects) often tend to position the methods as a lone job away from people and groups affected by its implications and opportunities. BPM works best when people are involved - considering questions like 'What if?' - and often fails when it guarded and developed secretively by technocrat minority.

Value-added/Added-valueThe principle of increasing the usefulness, attractiveness and benefits of a product or service, which in the context of BPM, ideally improves progressively with each modeling exercise. Added-value is commonly represented as benefiting customers and shareholders (via reduced costs, and increased efficiencies and profits) but should also benefit staff/employees too.

ACKNOWLEDGEMENTS

“The secret to creativity is knowing how to hide your sources.”Albert Einstein

BPMN (OMG) - http://www.bpmn.org/

CMMI - http://www.sei.cmu.edu/cmmi/

Deming, W.E. (1982), Out of the Crisis, Cambridge University Press, Cambridge.

Hammer, Michael and Champy, James (1993), Reengineering the Corporation: A Manifesto for Business Revolution, Harper Business.

Johansson et al (1993) - Developing Lean and Agile Supply Chains in the UK - Civil and ...

Paul Harmon on Oct 20, 2012 BPTrends (2007)

Rummler & Brache (1995) - http://www.rummler-brache.com/home

SIPOC (COPIS) - How to Develop a SIPOC for a Six Sigma Initiative

Six Sigma - http://en.wikipedia.org/wiki/Six_Sigma

Smith, Howard and Fingar, Peter (2003) Business Process Management, The Third Wave, MK Press.

TH Davenport (1993) - Process Innovation

Wikipedia - www. wikipedia .org/

DisclaimerUse of any example in this paper is for the purpose of example only and not meant to represent any process that is real, proprietary, current, confidential, etc . or property of any other source.

…if I omitted anyone, I’m sorry. It was not intentional. Email me and I will give credit where credit is due.