process: elementary

A presentation on process and business process modeling…

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

Michael A. Evens – Creative [email protected]

Fall 2013 – Work in Progress

PROCESS: elementary

WHAT? …what is a process and what it’s notWHY? …why we define, design and modelHOW? …process modeling techniquesEXAMPLES …seeing helps in understandingMETHODOLOGIES …Six Sigma, CMMI, ISO, etc.CONCLUSIONS …repeatable and successful

PROCESS: elementaryPRESENTATION TOPICS:

WIKIPEDIA (2013) says…

Process… WHAT?Miscellaneous Definitions

…“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.

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.

DAVENPORT (1993) defines a process as…


… ”a structured, measured set of activities designed to produce a specific output for a particular customer or market.

JOHANSSON et al. (1993) says…


… “a process is a set of linked activities that take an input and transform it to create an output.”

WE, CREATIVE CONSULTING (2013) say…


…in the context of this presentation, we will expand on this definition to include… “a repeatable set of activities documented to achieve a consistent result, output, product, or service …preferably successful.”

There are three basic types of processes:1. Management Processes2. Organizational Processes3.Support Processes (or Sub-Processes)

NOTE: Exceptions exist to these basic categorizations, but for the purpose of this presentation we are keeping definitions simple.

Process… WHAT?3 Types of Processes

1. MANAGEMENT PROCESSES


…a 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.

2. ORGANIZATIONAL PROCESSES


…Operational Processes are those that encapsulate the core of the business and create the primary value stream. Examples include budgeting, purchasing, manufacturing, advertising, marketing, and sales.

3. SUPPORTING PROCESS (or SUB-PROCESS)


…a Supporting process supports the core processes. Examples may include technical support, accounting, call center, and recruitment.

Process… WHAT?Components and Characteristics

Processes 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 musts:

INPUT / OUTPUT


…a 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.

CUSTOMER


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

ACTIVITIES (or STEPS)


…a process must consist of activities that are ordered according to their position in time and space. 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.

DECISIONS


… there 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… there is a test. A yes or no decision must be made. Bake the cake longer or take it out of the oven.

ORGANIZATION


…a process cannot exist in itself; it must be embedded in an organizational structure.

BUSINESS PROCESS MODELING

Process… WHY?

Why define processes or do modeling? Processes don’t need to be modeled.

However…

…there are many benefits in knowing what a process model is, what it can do for you and how it can benefit your organization.


Process… WHY?

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.


Process… WHY?

…Business Processes Modeling is designed and developed to add value for the customer and should not include unnecessary activities.


Process… WHY?

…the outcome of a well designed business process is increased effectiveness (value for the customer) and increased efficiency (less costs for the company).

BUSINESS PROCESS MODELING also helps with

Process… WHY?

• Communication and Comprehension• Understanding / Visual Depiction • Accountability• Reliability• Problem Solving• Breaking Downs Barriers


Process… WHY?

• Circumventing Departmental Autonomy• Avoiding Waste• Operational Ambiguity• Effectiveness…Satisfaction• Efficiency…Cost Reduction…Productivity• Process Improvement


Process… WHY?

• Quality / Consistency / Compliance• Reporting of Performance• Transparency• Aligning Operations with Strategy• Control• Competitive Advantage

BUSINESS PROCESS MODELING & NOTATION

Process… 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.

BUSINESS PROCESS MODELING & NOTATION

Process… HOW?

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.

UML and BPMN

Process… HOW?Process Modeling Notation (BPMN)

…Unified Markup Language (UML) provides a plethora of behavioral models which are useful in modeling and it has become a familiar and useful tool to many in all areas of business.

UML and BPMN


…Recently, process modeling vendors joined together to create a new Business Process Management Notation (BPMN) administered by the Object Management Group.

UML and BPMN


…today, most methodologies – like the BPM vendors – use the BPMN notations.

Process… HOW?Modeling Elements (Notation)

Understanding MODELING ELEMENTS for business owners, users and developers, simplifies the understanding of business, business flow and process…


Models consist of simple diagrams constructed from a limited set of graphical elements for consistency in communication…

The following will describe some of the most common elements:


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

GenerateRequest

Get MYInformation

Change MYInformation


EVENTSAn event is something that happens during the course of a business process which affects the sequence or timing of activities of a process.

Start Intermediate End


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.


GATEWAYS Inclusive / Exclusive:An 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…

Inclusive Exclusive


GATEWAYS Parallel:…used to synchronize (or combine) parallel flows and to create parallel flows without checking any conditions.

Parallel


GATEWAYS Complex:…used to model complex synchronization behavior (i.e. incoming and outgoing flows vary).

Complex


GATEWAYS Event Based / Exclusive Event Based:…a branching point in the Process where the alternative paths that follow the gateway are based on events that occur.

Event Based ExclusiveEvent Based


GATEWAYS Parallel Event Based:…will wait for an (one or more) incoming event before triggering the flow through its outgoing paths.

Parallel Event


GATEWAYS Exclusive Event:An 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…

Exclusive Event


CONNECTIONS Connections (connecting objects) are used to represent different types of flows. This paper defines four objects:

1. Sequence Flow2. Message Flow3. Association4. Data Association


CONNECTIONS Sequence Flow:A 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.

Sequence Flow


CONNECTIONS 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.

Message Flow


CONNECTIONS Association:An 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 an arrowhead at the target end if there is a reason to show directionality.

Association


CONNECTIONS Data Association:A 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.

Data Association

SWIMLANE


…A swimlane (or swim lane) is a visual element used in process flow diagrams that visually distinguishes responsibilities for sub-processes of a business process.

Swimlanes may be arranged either horizontally or vertically.

SWIMLANE


…Swimlanes in BPMN consist of two types:

POOLLANE

SWIMLANE


…POOLRepresents major participants in a process, typically separating different organizations. A pool contains one or more lanes (like a real swimming pool).

SWIMLANE


…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.

SWIMLANE


…ExamplePool ………………………………………...

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


DATA OBJECT: A data object does not have a direct affect on a process but does provide information relevant to the process. It is represented in many ways as shown below:

Card Stored Data Document Etc…

ARTIFACTS


GROUP: A group is an informal means for grouping elements of a process. It is represented as a rectangle with a dashed line border.

ARTIFACTS

Pool ………………………………………...

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


ANNOTATIONS: An annotation is a mechanism to provide additional information to the audience of a BPMN diagram.

ARTIFACTS

It is typically represented byan open rectangle containingthe annotation text.

BUSINESS PROCESS MODELING…process modeling is a focus on the business logic of the process (how work is done), instead of taking a product perspective (what is done).

Process… HOW?Creating a Model


1. Define the Boundaries (start and end points or scope)

What begins the process?

How does the process end?

DEFINE BASELINE (‘As Is’)


2. Define the Goals

What is the main objective?

What is desired outcome of the process (customer need and customer need fulfillment)?



3. Define the Roles How do they (people/roles) complete their activities and what is the order of those activities?

What activities are performed and who performs them?

People (roles) are essential to process modeling.



4. Define what is Exchanged?

What is exchanged between (in and out) the activities.



The first draft will involve positioning and repositioning of events (activities).

This may be a good time to use the sticky notes we mentioned earlier. If you're working with a group of people, everyone needs to be able to see it.

POSITION ACTIVITIES


Once you have established an agreed sequence of activities, you can create in a visual flow using a more sophisticated tool, such as a generic software application… for example, Microsoft’s Visio. Or, you may choose a specialized software package … for example, Enterprise Architect.

GENERATE FLOWCHART (‘As Is’)


You may want to check your model with the users by doing a ‘live observation’ of the process in action. People in meetings invariably forget the exact steps or say what should be happening, rather than what really happens.

…a live observation of the process would be a great validation or… ‘REALITY CHECK.’

VALIDATE PROCESS

Process… EXAMPLESSequence Numbering with Narratives

VISIO EXAMPLE:

BCC_CM SLIBREFDATA$D

ORACLEDesigner 2000

DMLDDL Source F iles

DBCHGS$D

BCCDM LCMS_NODEENV_NODE

TDD DIRECTORIES

TDD$INPUT

VOLUM ELIBRARY

NATIVELIBRARY

Pre-process DDL &DML

DDL & DML isprocessed

DATABASE

2

1

3

4 5

7

6

8

9

10

11

13

14

6

12

BCC ENVIRONM ENT

BUILD.DIRCOM PILE

15

COM PILE

16

Process… EXAMPLESSequence Numbering with Narratives

VISIO EXAMPLE:The narratives below describe the activity 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.

Process… EXAMPLESSwimlanes with Annotations

VISIO EXAMPLE:

Stakeholder / AnalystQA / TesterRelease ManagerDeveloper

RTCTeam Lead creates a Work Item (WI) and assigns to Developer

RTCDeveloper changes WI state to IN PROGRESS

Developer modifies artifact(s) under SCM

RTC

Developer checks -in files – Automatically associates files with WI

RTC

Unit Test

Developer changes state to IMPLEMENTED

RTC

Done – -----------Ready to Deploy

RTCTeam Lead creates “Deployment Request”

RTC

ReviewBuild

Deploy

Release Manager changes status to QA READY

RTC

Test

Changes “Deployment Request” to VALIDATED

RTC

Change status of “Deployment Request” to APPROVED

RTC

Release Manager deploys changes to PRODUCTION

Changes “Deployment Request” to CLOSED

RTC

Deploy

Release Manager changes state to PROD READY

RTC

Unit Test orCode Review

……… Manual Processes …....

BusinessPartners

(SR Development)IR&C Staff

Team Lead

………………….……………………… SCM Process ………………………………………….……..

Work Request

1. Service Request2. Incident3. Problem4. Change5. Configuration6. Service Levels

Documentation

Specifications

Requirements

END-TO-END PROCESS – High Level

Process… EXAMPLESSwimlanes with Annotations

VISIO EXAMPLE:Team Lead

RTC RTC

RTCTeam Lead initiatesWORK ITEM andassigns to Developer

In 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:

Process… METHODOLOGIES

Process… METHODOLOGYSix Sigma (DFSS, DMAIC, and DMADV)

SIX SIGMASix 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.


SIX SIGMAThe 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.


SIX SIGMA - 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.


SIX SIGMA - DFSSThe Basic Process: Design for Six Sigma (DFSS)1. Developing the Business Case2. Formulating the Technical Requirements3. Designing and Developing.4. Verifying and Validating5. Manufacturing and Commercializing6. Controlling and Sustaining


SIX SIGMA - 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 …


SIX SIGMA - DMAIC1. DEFINE - Define the system2. MEASURE - Measure and collect key data3. ANALYZE - Analyze the data4. IMPROVE - Improve or optimize process5. CONTROL - Control the ‘future state’6. …Sometimes, a RECOGNIZE step… recognize the right problem to work on, thus yielding an RDMAIC methodology.


SIX SIGMA – DMADVDMADV is used for projects aimed at creating new product or process designs.

The DMADV project methodology features five phases:


SIX SIGMA – DMADV1. DEFINE - Define design goals2. MEASURE - Measure and identify3. ANALYZE - Analyze, develop and design4. DESIGN - Design an improved5. VERIFY - Verify the design

Process… METHODOLOGYSix Sigma (SIPOC / COPIS)

SIX SIGMA – SIPOCSIPOC (sometimes COPIS) is a tool that summarizes the inputs and outputs of one or more processes in table form.

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, process, outputs and corresponding customers… thus the acronym SIPOC

Process… METHODOLOGYSix Sigma (SIPOC / COPIS)

SIX SIGMA – SIPOCThe SIPOC provided an effective methodology to get an in detail look at the process.

1. BOUNDRIES - Boundaries must be explicitly stated. 2. SUB-PROCESSES - Sub-processes must be defined3. PROCESS OWNER - One person must be accountable 4. OUTPUTS - Outputs must be verifiable deliverables5. CUSTOMER – Customers must consume outputs and provide feedback.

Process… METHODOLOGYCapability Maturity Model (CMMI)

CMMI (CARNEGIE MELLON)Capability 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.


CMMI (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 and the acquisition of products and services.

CMMI models provide guidance for developing or improving processes that meet the business goals of an organization.


CMMI (CARNEGIE MELLON)CMMI for Development

Repeatable - Maturity Level 2Defined - Maturity Level 3Quantitatively Managed - Maturity Level 4Optimizing - Maturity Level 5


CMMI (CARNEGIE MELLON)CMMI for Services

Managed - Maturity Level 2Defined - Maturity Level 3Quantitatively Managed - Maturity Level 4Optimizing - Maturity Level 5


CMMI (CARNEGIE MELLON)CMMI for Acquisition

Managed - Maturity Level 2Defined - Maturity Level 3Quantitatively Managed - Maturity Level 4Optimizing - Maturity Level 5


CMMI (SCAMPI)NOTE: The Standard CMMI Appraisal Method for Process Improvement is an appraisal method that meets all of the ARC (Appraisal Requirements for CMMI). Results of an SCAMPI appraisal may be published on the CMMI Web site: Published SCAMPI Appraisal Results.

SCAMPI also supports the conduct of ISO/IEC 15504, also known as SPICE (Software Process Improvement and Capability Determination).

CREATIVE CONSULTING et al. (2013):

Process… CONCLUSION

Different 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

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