LSPU Self-Paced Learning Module (SLM) - BPM (Business Process Management) 2024-2025 PDF

Republic of the Philippines Laguna State Polytechnic University Province of Laguna ISO 9001:2015 Certified Level I Institutionally Accredited...

Republic of the Philippines Laguna State Polytechnic University Province of Laguna ISO 9001:2015 Certified Level I Institutionally Accredited LSPU Self-Paced Learning Module (SLM) Course BPM (Business Process Management) Sem/AY First Semester/2024-2025 Module No. 3 Lesson Title BUSINESS PROCESS MODEL Week 11-18 Duration Date October 28 – January 3 This module provides about business process model and discussing more about its key Description components. It also provides insight about Process Architecture component and of the implementation process. Lesson Learning Outcomes Intended Students should be able to meet the following intended learning outcomes: Learning Know about Business Process Model Outcomes Identify the key components Learn about Process Architecture Identify key component of Process Architecture Targets/ At the end of the lesson, students should be able to: Objectives Differentiate the model needed for specific process Create an example of process models Understand different process architecture Be able to implement Process Architecture Student Learning Strategies Online Activities A. Online Discussion via Google Meet (Synchronous/ Will be based on the discretion of the instructor depending on the Asynchronous) situation. This subject is best to be discussed in face to face meeting that will be held every Thursday from 1pm – 4pm at Room 100 of CCS Building. (For further instructions, refer to your Google Classroom and see the schedule of activities for this module) LSPU SELF-PACED LEARNING MODULE: BUSINESS COMMUNICATION (SERVICE MANAGEMENT PROGRAM)  Republic of the Philippines Laguna State Polytechnic University Province of Laguna ISO 9001:2015 Certified Level I Institutionally Accredited B. Learning Guide Questions: 1. What is Business Process Management? 2. What is Process Architecture? Note: The insight that you will post on online discussion forum using Learning Management System (LMS) will receive additional scores in class participation. Business Process Management In the ever-evolving landscape of modern business, organizations constantly strive for efficiency, productivity, and quality. A tool that has emerged as essential in achieving these goals is Business Process Management (BPM). At the core of BPM is the concept of process modeling, which helps businesses visualize, analyze, and improve their operations. This article outlines a comprehensive module that delves into the various components of a process model in BPM, offering insights into how businesses can leverage these components for optimal functionality. What is a Process Model? A process model is a visual representation of the steps, actions, and workflows involved in a specific business process. It captures the sequence of events and the interactions between different entities, providing a blueprint for understanding and analyzing business activities. Effective process models serve as a roadmap for organizations, guiding them in executing operations efficiently, identifying areas for improvement, and fostering communication among Offline Activities stakeholders. (e-Learning/Self- Elements of Business Process Model Paced) Here is the set of symbols that I have found helpful when modeling processes. Terminator Indicates the start or end of the process. If there is a particular event that triggers a process, you may find it helpful to note that event as you model the process. When using sticky notes and whiteboards to create a process model, draw the terminator directly on the whiteboard. Activity A single step of the overall process that represents a specific task in the overall process. An activity could also represent a subprocess that is described in a different, more detailed process model. LSPU SELF-PACED LEARNING MODULE: BUSINESS COMMUNICATION (SERVICE MANAGEMENT PROGRAM)  Republic of the Philippines Laguna State Polytechnic University Province of Laguna ISO 9001:2015 Certified Level I Institutionally Accredited Write a brief description of the activity, preferably in an active voice, and use commonly agreed to terms in the statement. If you are not using swimlanes in your process model, you may also find it helpful to note who or what performs the activity. When using sticky notes and whiteboards to create a process model, use 3×3 sticky it notes for activity steps. Decision A point where the process can follow one or more paths based on a decision or the application of a particular rule. Write the decision in the form of a question, where the answers to that question represent the various paths out of the decision. When using sticky notes and whiteboards to create a process model, turn a 3×3 sticky note 45o to represent the decision. Arrow Use arrows to indicate the order of activities and decisions in a process. When using sticky notes and whiteboards to create a process model, draw arrows on the whiteboard. You may find it helpful to create sticky notes with arrows if you have to revise your process model frequently as you build it. Connector A way to indicate a jump from one part of the process to another part to avoid having arrows stretching across the entire process model. Connectors are usually identified with letters. A connector with an arrow pointing into it represents where you jump from in a process, whereas a connector with an arrow pointing out of it represents where you jump to in that process. When using sticky notes and whiteboards to create a process model, draw the connectors on the whiteboard directly, usually as you are discussing the flow and you determine that a particular path takes you to a part of the process that already exists. LSPU SELF-PACED LEARNING MODULE: BUSINESS COMMUNICATION (SERVICE MANAGEMENT PROGRAM)  Republic of the Philippines Laguna State Polytechnic University Province of Laguna ISO 9001:2015 Certified Level I Institutionally Accredited Key Components of a Process Model 1. Activities and Tasks At the heart of any process model are the activities and tasks that represent the work being performed. Activities are the high-level functions that contribute to a process, while tasks are the granular steps required to complete these activities. Clearly defining activities and tasks is critical, as it helps stakeholders understand what needs to be done, by whom, and in what order. 2. Triggers and Events Triggers and events serve as catalysts for processes. Triggers can be internal or external factors that initiate a process, such as an order being placed or a customer inquiry. Events represent significant occurrences within a process, such as the completion of a task or a decision point (e.g., approval or rejection). Identifying triggers and events helps organizations understand the flow of the process and the conditions under which certain actions take place. 3. Roles and Responsibilities A clear outline of roles and responsibilities is essential for process models. This component defines who is accountable for each task or activity, ensuring that all team members are aware of their duties. Effective role designation can prevent LSPU SELF-PACED LEARNING MODULE: BUSINESS COMMUNICATION (SERVICE MANAGEMENT PROGRAM)  Republic of the Philippines Laguna State Polytechnic University Province of Laguna ISO 9001:2015 Certified Level I Institutionally Accredited overlaps, minimize confusion, and enhance accountability throughout the process. 4. Inputs and Outputs Every process has specific inputs (resources, information, or materials required to complete tasks) and outputs (the result of the process). By specifying the inputs and outputs, organizations can measure performance more effectively and ensure that they have the necessary resources for efficient operation. This component is critical for assessing process efficiency and effectiveness. 5. Decision Points In many business processes, decision points are crucial for determining the path the process will take. These points often involve evaluating specific criteria to decide the next step. Modeling decision points helps organizations anticipate and plan for potential variations in the process, allowing for greater flexibility and responsiveness. 6. Workflow and Sequence Workflow represents the sequence and interaction of activities within a process. It describes how tasks are interlinked and how work progresses from one step to the next. A well-defined workflow provides clarity on the order of operations and identifies dependencies between tasks. It is essential for ensuring that processes flow smoothly and for minimizing bottlenecks. 7. Performance Metrics To gauge the effectiveness of a process, organizations should incorporate performance metrics into their models. Metrics may include key performance indicators (KPIs), such as cycle time, cost per transaction, and error rates. By establishing performance metrics, businesses can analyze their processes quantitatively, facilitating data-driven decision-making and continuous improvement. 8. Stakeholders and Customers Understanding the stakeholders involved in a process is vital for its success. This component identifies internal and external parties affected by or engaged in the process, such as employees, management, suppliers, and customers. By considering stakeholder perspectives, organizations can ensure that their processes not only meet internal needs but also deliver value to customers. Creating a comprehensive process model is an essential step in Business Process Management, laying the groundwork for effective analysis and improvement. By understanding and properly documenting the components of a process model— activities and tasks, triggers and events, roles and responsibilities, inputs and outputs, decision points, workflow and sequence, performance metrics, and stakeholders—organizations can optimize their operations significantly. As businesses seek to enhance efficiency, reduce waste, and improve service quality, investing time and resources into robust process modeling will LSPU SELF-PACED LEARNING MODULE: BUSINESS COMMUNICATION (SERVICE MANAGEMENT PROGRAM)  Republic of the Philippines Laguna State Polytechnic University Province of Laguna ISO 9001:2015 Certified Level I Institutionally Accredited undoubtedly yield substantial returns. In today’s competitive market, being equipped with knowledge about process components is not just advantageous; it’s imperative for success. What is Process Architecture? Process Architecture refers to the structured approach to defining, organizing, and managing a company’s processes. It involves setting the framework within which processes operate and interact, thereby enabling organizations to achieve their strategic goals more effectively and efficiently. According to Hammer (1990), "Process architecture is the design of a business process, while simultaneously clarifying the structural relationships between various processes" (p. 111). Essentially, it serves as a navigation map for businesses, guiding them through their operational landscape. Key Components of Process Architecture Process Hierarchy: At the highest level, organizations must identify their core business capabilities, which are broken down into subprocesses. This hierarchical structure allows for better visibility into how various processes relate to overall operations. For instance, a manufacturing company may have a core process of "Product Development," which can be broken down into subprocesses like "R&D," "Design," and "Prototyping." Cross-Functional Processes: Many business processes span multiple departments, requiring collaboration to ensure that the overall workflow is efficient. A well-defined Process Architecture outlines these cross-functional interactions, thus fostering greater interdepartmental communication and synergy (Davenport, 1993). Process Flows: Process flows provide a step-by-step representation of how tasks are completed within each process. Utilizing tools such as flowcharts or Business Process Model and Notation (BPMN) can help visualize these flows, making it easier for stakeholders to understand and manage processes. Performance Metrics: A robust Process Architecture includes definitions of Key Performance Indicators (KPIs) for each process. These metrics enable organizations to monitor their processes, assess performance, and implement continuous improvement initiatives (Rummler & Brache, 2012). LSPU SELF-PACED LEARNING MODULE: BUSINESS COMMUNICATION (SERVICE MANAGEMENT PROGRAM)  Republic of the Philippines Laguna State Polytechnic University Province of Laguna ISO 9001:2015 Certified Level I Institutionally Accredited Benefits of Process architecture Making decisions A standard process architecture can aid a company's leaders during decision- making. Process architecture typically describes the goals, methods and values of a business. Being able to consult these ideas and their levels of importance can make it easier to evaluate possible decisions and how they fit into the structure. Placing potential solutions or changes into the flow of the structure can also show the effects it may have on other system elements. Predicting impacts Maintaining a process architecture helps predict and chart the impact of changes to the system. Process architecture is typically a flow chart that connects the factors and steps of business operations. This flow chart provides the ability to insert recent changes and track their effects through the rest of the procedures and outcomes. The visual representation of influences and system cycles can help predict potential solutions and decide where to implement changes. Maintaining consistency A process architecture creates and maintains consistency in both a system and a business. If every employee is clear about the procedure and hierarchy of their organization, it keeps them all focused on the same end goal. Likewise, if you program systems with the same process architecture, they may produce more consistent output. Once you've developed the architecture's structure, you can update it and view it as a database. Access to these process structures allows employees to reference them when necessary and ensures that everyone follows the same procedures to achieve their shared goals. Identifying improvements Creating a process architecture requires a thorough understanding of a people, departments, processes, systems and variables present in a business. Identifying and relating these elements can make it easier to see which factors are redundant or ineffective. You may be able to eliminate processes that occur in the chart but have little or no purpose or connection to the main objectives. There is also the possibility of combining similar processes or incorporating new and more efficient ones. Improving even minor procedures can help increase success and productivity. Clarity and Consistency Process Architecture offers a clear depiction of how processes fit together, which can lead to more consistent execution of business practices across the organization. Alignment with Strategic Goals By defining processes clearly, organizations are better positioned to ensure that their operations align with strategic objectives. As articulated by Rother and LSPU SELF-PACED LEARNING MODULE: BUSINESS COMMUNICATION (SERVICE MANAGEMENT PROGRAM)  Republic of the Philippines Laguna State Polytechnic University Province of Laguna ISO 9001:2015 Certified Level I Institutionally Accredited Shook (1999), "A clear process framework enables organizations to react swiftly to market changes and customer demands." Facilitation of Continuous Improvement With well-documented processes, organizations can more easily identify areas for improvement, implement changes, and measure results. This aligns with the continuous improvement philosophy central to Lean and Six Sigma methodologies. Enhanced Agility A sound Process Architecture allows businesses to adapt more readily to changes in the market or internal environment. By understanding their process structures, companies can reconfigure workflows and resources as needed. 5 Process Architecture Here are five common examples of process architecture approaches: 1. Goal-based A goal-based approach to process architecture begins with determining the core goals of the system and how those goals affect each other. Once you've defined the goals, creating the process architecture connects the steps necessary to reach those goals. This process also places the goals in a hierarchy by importance, showing which goals take precedence during challenging decisions. Tracking the processes that lead to achieving a company goal can show you what elements require greater focus and help you identify goals that may require adjustment to align with overall company objectives. 2. Action-based An action-based process architecture begins with defining the everyday actions of the business and how they relate to one another. Businesses usually represent this using a chart or flow that describes the steps individuals take when providing a client or customer with a service or product from start to finish. Having a documented procedure for your actions helps visualize the elements of a successful business process and allows for adding or subtracting steps to increase productivity. Developing a defined action plan also promotes consistency in business operations by ensuring that everyone follows the same basic guidelines. 3. Object-based When building an object-based process architecture, the first step is to list the existing objects within the organization. These objects typically include clients, orders, requests and services. After identifying these objects, the process architecture structures them according to their relation to and role in the business process. This chart tracks the flow of operations and which departments handle them. This architecture displays all the components that comprise the main objectives of a business or system and is useful for detecting potential gaps or errors. LSPU SELF-PACED LEARNING MODULE: BUSINESS COMMUNICATION (SERVICE MANAGEMENT PROGRAM)  Republic of the Philippines Laguna State Polytechnic University Province of Laguna ISO 9001:2015 Certified Level I Institutionally Accredited 4. Function-based Function-based process architecture is a visual hierarchy of a business's functions. The function-based architecture showcases the organization's major capabilities and separates each into the more detailed, smaller functions that it includes. This structure can help you understand how each function operates on a focused level and what elements are necessary for a successful process. 5. Reference model-based A reference model-based process architecture uses an existing architecture as a reference point for charting new systems and developments. For these architectures, reconfigure the original chart to display changes in your operations or structure. These changes may be new goals, objects, actions or functions, and the reference model approach may use one of the other mentioned approaches. To create the new process architecture, you can use an existing internal structure as a reference or review an external template from a similar organization. Implementing Process Architecture in BPM To implement an effective Process Architecture, organizations should follow a systematic approach: Identify and Map Existing Processes: Use interviews, workshops, and documentation reviews to gather information on current processes. Define Process Relationships: Look for interdependencies and interactions among processes, documenting how they connect to form the larger architecture. Establish Performance Metrics: Define key performance indicators for each key process to facilitate monitoring and performance assessment. Continuous Review and Optimization: Regularly revisit the Process Architecture to refine and adapt it based on changes in the environment or strategic goals. Process Architecture is a foundational element of Business Process Management that provides organizations with the structured approach needed to orchestrate their processes effectively. As businesses face increasing complexity and competition, a well-defined Process Architecture serves as a crucial tool for achieving operational excellence. By embracing this concept, organizations can enhance their agility, alignment with strategic goals, and overall efficiency, leading to sustained success in today's dynamic business landscape. LSPU SELF-PACED LEARNING MODULE: BUSINESS COMMUNICATION (SERVICE MANAGEMENT PROGRAM)  Republic of the Philippines Laguna State Polytechnic University Province of Laguna ISO 9001:2015 Certified Level I Institutionally Accredited Performance Tasks Understanding Directed Assess Learning Resources Dumas, M., La Rosa, M., Mendling, J., & Reijers, H. (2018). Fundamentals of Business Process Management. Springer. Davenport, T. H. (1993). Process innovation: reengineering work through information technology. Harvard Business Review Press. Hammer, M. (1990). Reengineering work: don't automate, obliterate. Harvard Business Review, 68(4), 104-112. Rother, M., & Shook, J. (1999). Learning to see: value stream mapping to create value and eliminate muda. Lean Enterprise Institute. Rummler, G. A., & Brache, A. P. (2012). Improving performance: how to manage the white space on the organization chart. Wiley. “Process Architecturr: Definition, benefits and examples.” Indeed Career Guide, 2024, https://www.indeed.com/career-advice/career-development/process-architecture LSPU SELF-PACED LEARNING MODULE: BUSINESS COMMUNICATION (SERVICE MANAGEMENT PROGRAM)