10672334 Business Management and Automation

Lecture 1
Introduction

Raya Shunnar
INDUSTRIAL ENGINEER

MSC. OPERATIONS, PROJECTS AND SUPPLY

CHAIN MANAGEMENT
Source: Fundamentals of Business Process Management. Marlon Dumas et al
About this course

Objective
•To introduce the discipline of
modeling, analyzing, automating and
monitoring business processes.
Source: Fundamentals of Business Process Management. Marlon Dumas et al

Structure of the course

8 weeks including practice sessions covering:

• Process Identification & Architecture
• Process Modeling
• Process Analysis
• Process Redesign
• Process Automation
• Process Monitoring & Mining
Team project
Source: Fundamentals of Business Process Management. Marlon Dumas et al

Readings and resources

• Slides: Available on Moodle

• Textbook
• Dumas, La Rosa, Mendling & Reijers: Fundamentals of Business
Process Management (second edition), Springer 2018
• Available on Moodle

• Facebook Group
• Link: https://www.facebook.com/groups/817753140221760/
What is a Business
Process?

Source: Fundamentals of Business

Process Management. Marlon Dumas
Source: Fundamentals of Business Process Management. Marlon Dumas et al
Issue
delivery Package
receipt Load products Issue
truck invoice

Prepare Check &

shipment Schedule confirm
Schedule Purchase
payment delivery Order (PO)
Unload
truck

Notify Obtain
shipment PO
confirm.
Match
Check Request incoming
Invoice PO change payment
Source: Fundamentals of Business Process Management. Marlon Dumas et al

Business processes
Functional Decomposition of the organisation

Assets & Organisation

Partners
Inputs Function A Function B Function C
(Sales) (Manufacturing) (Finance)
Financial

Business Process
Human
Resources

Business Process Customers

Technology
Business Process

Materials
Source: Fundamentals of Business Process Management. Marlon Dumas et al

Check &
PO Package Load Notify Issue Match Payment Order to
confirm
received products truck shipment invoice payment made cash
PO

Obtain Issue
PO Schedule Unload Check Schedule Goods Purchase
PO delivery
issued delivery truck invoice payment arrived to pay
confirm. receipt
Source: Fundamentals of Business Process Management. Marlon Dumas et al

Your turn…
Load Take Serve
Bring dish- order meal
menu washer

Collect
payment
Collect
Collect Unload
Brush laundry
laundry dish-
grills
washer

Clean
Sweep kitchen
Present Greet &
& mop surfaces
bill seat
Source: Fundamentals of Business Process Management. Marlon Dumas et al

Customer Greet & Take Bring Serve Present Collect Customer

arrived seat order menu meal bill payment paid

Load Clean Unload

Kitchen Brush Collect Sweep Kitchen
dish- kitchen dish-
is dirty grills laundry & mop is clean
washer surfaces washer
Source: Fundamentals of Business Process Management. Marlon Dumas et al

A business process is…

a chain of events, activities and decisions
...involving several actors and objects,
….triggered by a need
and leading to an outcome that is of value to a customer.

Examples:
• Order-to-Cash
• Procure-to-Pay (aka Purchase-to-Pay)
• Application-to-Approval
• Issue-to-Resolution
Source: Fundamentals of Business Process Management. Marlon Dumas et al

“My washing machine doesn’t work…”

Negative outcomes (value-reducing): Positive outcomes (value-adding):
• Fault not repaired in a timely manner • Fault repaired immediately with minor
• Fault repaired but customer pays more intervention
than expected • Fault repaired, covered by warranty

Insurance
Call Centre Company
Technician

Customer Customer
Customer
Parts
Service Store
Dispatch
Centre

VALUE
issue-to-resolution process (field service)
What is Business
Process
Management?

And why should I

care about it?

Source: Fundamentals of Business

Process Management. Marlon Dumas
Source: Fundamentals of Business Process Management. Marlon Dumas et al
Improving Performance (Rummler’s Framework)
Business Environment
Economy Regulatory Culture

Assets & Organisation

Resources
Performance Planning Performance Management Stakeholders
Financial

Value
Human Function A Function B Function C
Resources
Business Process
Technology
Business Process Customers
Materials
Business Process

Competitors
Source: Fundamentals of Business Process Management. Marlon Dumas et al

Process performance

If you had to choose between two services, you would typically choose the
one that is:

• F…
• C…
• B…
Source: Fundamentals of Business Process Management. Marlon Dumas et al

Process performance

If you had to choose between two services, you would typically choose the
one that is:

• Faster
• Cheaper
• Better
Source: Fundamentals of Business Process Management. Marlon Dumas et al

Process performance

Three dimensions of process performance

• Time
• Cost
• Quality
Source: Fundamentals of Business Process Management. Marlon Dumas et al
Improving process performance

Customer Greet & Take Bring Serve Present Issue Customer

arrived seat order menu meal bill invoice paid
Source: Fundamentals of Business Process Management. Marlon Dumas et al

How would you improve this process?

Outsource to Customer Standardize

Eliminate Cooking

Automate

Invest and Build

Re-sequence

Eliminate Waiters
Source: Fundamentals of Business Process Management. Marlon Dumas et al

Business Process Management (BPM)

Body of principles, methods and tools to design, analyze, execute and

monitor business processes, with the aim of improving their performance.

IT systems
Customers Employees

Business
Processes
Data Trading
Partners

IT infrastructure Suppliers
Source: Fundamentals of Business Process Management. Marlon Dumas et al

Why BPM?

“The first rule of any technology

used in a business is that
automation applied to an efficient
operation will magnify the
efficiency.

The second is that automation

applied to an inefficient operation
will magnify the inefficiency.”
Bill Gates
Source: Fundamentals of Business Process Management. Marlon Dumas et al

In other words…

Information Yields
Technology Business
Value

Enables
Yields
Process
Change

Index Group (1982)

Source: Fundamentals of Business Process Management. Marlon Dumas et al

Your turn

• Think of an organization and a process in an organization:

• Is it order-to-cash, procure-to-pay, application-to-approval, issue-to-resolution…
• Who is/are the customer(s)?
• What value does this process deliver to its customer?
• Who are the key actors of the process?
• List at least 3 outcomes of the process.
Source: Fundamentals of Business Process Management. Marlon Dumas et al

Process Actors

In a process-oriented organization, who is directly accountable for

poor performance of a process?
❑ The Process Participants
❑ The Executive management team

X❑ The Process owner

❑ The process analyst
❑ The BPM group
Source: Fundamentals of Business Process Management. Marlon Dumas et al

Why BPM
How to do BPM?

Source: Fundamentals of Business

Process Management. Marlon Dumas
Source: Fundamentals of Business Process Management. Marlon Dumas et al

The BPM lifecycle

Process
identification

Process
Process architecture
architecture

Conformance
Conformance and
and Process As-is
As-is process
process
performance
performance insights
insights discovery model
model

Process
monitoring and Process
controlling analysis

Executable
Executable Insights
Insights on
on
process
process weaknesses
weaknesses and
and
model
model their
their impact
impact

Process Process
implementation To-be
To-be process
process redesign
model
model