Week 9 - Process Redesign (2)

Source / Reference:

http://www.ibm.com/developerworks/ibm/library/i-holo/

http://www.redbooks.ibm.com/redbooks/pdfs/sg246590.pdf

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Response:

Last lecture, process redesign had been introduced - Scoping, Data Collecting, Analyzing, Modeling. And this week, BPR modeling and analysis with BPR software are outlined as the final part of the process redesign before the BPR launched. Five essential aspects with Holosofx Workbench, a tool for BPR modeling and analysis are introduced. And with these 5 aspects, a model of process can be illustrated by the software and help to analyze and modify the process that need to be changed.

In the following time, I would like to give the summary of the 5 aspects and a case study on BPR by using some other tools to model the process. And some other BPR software will be introduced for modeling and analyzing process for BPR.

1.     Summary of the 5 aspects

2.     Business Process Management with HOLOSOFX

3.     Case study on BPR (modeling)

4.     Conclusion

Summary of the 5 aspects

Block #1: Structural Elements of Business Process Flow

The structural elements of business process flow. Different symbols in the diagram are defined. And all the common objects in the diagram are shown in the following table.

Block #2: Organizational Resource Links to Business Process Flow

It is the linking resources to activities. First the user list all activities objects, the linking resources to activities shows the resources that needed from that activities such as how long for the task, the length of time.

Block #3: Rules of Graphical Connection

It is the rules of graphical connection. All the relationships between symbols are restricted by the rule, such as linking the nodes with time line arrow.

Block #4: Methods of Conditional Concatenation of Process Parts

The software allows us to select different decision & choice through different paths to set different cases for stimulation analysis.

Block #5: Process Performance Measurement

After drawing the diagram, the stimulation analysis can be conducted. Through the stimulation, time cost and resource can be derived in each decision, the weighted average can also be found out by assuming the probability for different case.

Business Process Management with HOLOSOFX

What is HOLOSOFX? It was founded in 1990. It launched Workflow BPR Version 1 in 1994. Version 2 of the same software was released in 1996, incorporating workflow integration interfaces for IBM MQSeries Workflow. Version 3 was released in 1998. In 2001 HOLOSOFX introduced BPM Suite 4.1. BPM Suite comprises BPM Workbench, BPM Monitor, and BPM Server. All of these products integrate with MQSeries Workflow.The IBM Holosofx Business Process Management Suite consists of three components that launch as separate modules; they are IBM Holosofx Workbench, IBM Holosofx Monitor and IBM Holosofx Workbench Server. IBM Holosofx Workbench is used for modeling and analysis. IBM Holosofx Monitor is used for monitoring real time processes and IBM Holosofx Workbench Server is used to share process information via internet.

 

The Holosofx suite takes a multi-pronged approach to achieve CBPM:

• Create
  The Holosofx Workbench models existing processes. Use the models to create, simulate, analyze, and select optimal new process designs.
• Collaborate
  The Holosofx Workbench Server is used to share process model information through the Web and to provide a secure repository for access and version control.
• Automate
  The Holosofx Workbench converts business process models to formats that can be exported directly to MQSeries Workflow.
• Manage
  BPM Monitor is used to monitor work-in-process items and perform corrective actions. Additionally, actual process metrics answer what-if questions in modeled scenarios and make process improvements.

Case study on BPR (modeling)

Company background

Elgin Framistat is a family-owned firm that was established in 1915 by G.W. Elgin to supply high-value sports bicycles to the retail industry and directly to consumers. Elgin has remained a niche supplier since then and also supplies parts of its products to other equipment manufacturers (OEMs). The firm has enjoyed long-term business associations based upon four generations of personal relationships between Elgin family members and retail industry leaders.

Process Overview

The order processing consists of one high-level process and three sub processes:

They are High level Sales Order process: Customer order, Obtain credit information and Review credit respectively.

The Sales Order process consists of the process of taking the customer’s order over the phone, and checking for credit being available for that customer. If credit is available, the order is fulfilled by issuing a work order. If credit is not available, then the process of obtaining the credit information is followed, where ratings are obtained from a credit rating agency.

Upon receiving the report with risk 30 Continuous Business Process Management with HOLOSOFX BPM Suite and MQSeries Workflow classifications of high, medium and low, a process of reviewing credit is followed. This has several possible routes. If the risk is low, then the order is processed. If the risk is high, then the order is rejected. When there is a medium level of risk, a manager does some more checking and decides whether to accept the order or reject it.

Finding

The Elgin BPR team interviewed the Elgin executives, managers and employees who are associated with the ordering process. The team visited companies that had automated order-fulfillment processes and talked with vendors, customers, and subject-matter experts about Elgin’s current order-processing system. Here is the team’s summary of its findings:

Management

– Company Culture: Elgin’s executives said that the current ordering system should have been replaced 10 years ago, but the Elgin family felt that an automated system would diminish the “personal touch” that had been the company’s distinguishing feature.

– Turnover Rate: Elgin executives pointed out that the turnover rate in the order-processing function was quite high due to the relatively low pay, lack of advancement opportunities, and low skill requirements. Under these circumstances, establishing a long-term, personal rapport with customers was unlikely.

Customers

– Accuracy: Elgin clerks sometimes called twice in as many days to verify an order’s details. Different clerks called each time to verify the same information.

– Visibility: After a customer placed an order, information about the order was limited to two communications: either the order was refused because of unspecified credit issues, or the order was completed. No one at Elgin could supply information to a customer about an order’s status. Several customers noted that they had to call Elgin’s VP of Manufacturing to find out why a promised delivery date had not been met.

– Timeliness: Customers are required to place orders on Elgin’s schedule. Placing an order after the order-processing function closed for the day or week is not possible. Some customers called Elgin to place an order only to be told that the customers were using an old catalog and the order could not be placed.

Employees

– Frustration: Employees feel that copying information from one form to another is a tedious activity that leads to many mistakes. At times, the order volume is such that individual-order information is transposed with 32 Continuous Business Process Management with HOLOSOFX BPM Suite and MQSeries Workflowother order data resulting in the need to call the customer to verify the order’s details. Order-processing employees are sometimes the targets of the customers’ frustrations with Elgin’s order-process system. Younger, computer-literate employees wonder why modern data-processing techniques are not used in the order-processing function to reduce paperwork, errors, and cycle time.

– Accuracy: Several employees showed how error-prone the order-processing system is. Errors result from similar catalog numbers, part numbers, and product-line names. The system probably worked well before data-processing solutions were available, Elgin’s product offerings were far fewer than today, and the order-processing clerks were technicians who were familiar with the entire product line and its uses.

– Communications: All order-processing employees feel that using paper forms and the inter-office mail cannot meet the demand for reducing cycle time. One employee told of how a group of 18 orders was lost in the inter-office mailing system and reappeared three days later after a frantic search. Even the fax machine has its limitations because a document must be prepared for the fax, and someone must be available on the receiver’s end to verify its receipt.

Goals

The main goal of the process is to allow for efficient and accurate order placements and their subsequent processing in a timely manner, complying with all the business rules in Elgin for activities related to this process

Sales Order process (To-Be)

The redesigned Sales Order process allows for most of the shortcomings of the current (As-Is) process to be removed. The new process essentially remains the same, but allows for electronic order placement and also allows for B2B communication to be possible, thus enabling businesses to place orders on Elgin using their own inventory management systems and data streams being sent to suppliers. The process after that remains the same as the earlier As-Is model, but with all delays due to inter-office mail being reduced, since transport of documents is all electronic.

After reviewing the case study on Elgin Framistat, we know that the “to-be” model is based on the “ as-is” model, and most process after BPR are still remains the same as the earlier “as-is” model. Therefore, a good modeling on existing process is essential for redesign the process.

Conclusion

To sum up, we have 5 essential aspects for Holosofx Workbench to model a business process. From the case study we know that most “to-be” model are based on the “as-is” model, and most of them remains the same as the earlier “as-is” model. Through the 5 essential aspects, a good modeling can be designed with the BPR software.