UNSW Business School Information Systems and Technology Management INFS3604 Business Process Management PDF

UNSW Business School Information Systems and Technology Management INFS3604 Business Process Management Week 2 - Process Discovery: Essential Process Modelling The slides in this presentation have been adapted from supporting materials provided with the text: Dumas M. et al., 2018, Fundamentals of...

UNSW Business School Information Systems and Technology Management INFS3604 Business Process Management Week 2 - Process Discovery: Essential Process Modelling The slides in this presentation have been adapted from supporting materials provided with the text: Dumas M. et al., 2018, Fundamentals of Business Process Management, Springer Verlag Berlin Heidelberg George Joukhadar (LiC) Copyright Notice Copyright • There are some file-sharing websites that specialise in buying and selling academic work to and from university students. • If you upload your original work to these websites, and if another student downloads and presents it as their own either wholly or partially, you might be found guilty of collusion — even years after graduation. • These file-sharing websites may also accept purchase of course materials, such as copies of lecture slides and tutorial handouts. By law, the copyright on course materials, developed by UNSW staff in the course of their employment, belongs to UNSW. It constitutes copyright infringement, if not academic misconduct, to trade these materials. Country Acknowledgement of Country UNSW Business School acknowledges the Bidjigal (Kensington campus) and Gadigal (City campus) the traditional custodians of the lands where each campus is located. We acknowledge all Aboriginal and Torres Strait Islander Elders, past and present and their communities who have shared and practiced their teachings over thousands of years including business practices. We recognise Aboriginal and Torres Strait Islander people’s ongoing leadership and contributions, including to business, education and industry. UNSW Business School. (2021, July 24). Acknowledgement of Country [online video]. Retrieved from https://vimeo.com/369229957/d995d8087f Prescribed readings ❑ Dumas at al. 2018 Chapter 3 Week 2: Essential Process Modeling Agenda 1. First Steps with BPMN 2. Branching and Merging 3. Business Objects 4. Resources 5. Recap 7 Course structure Process identification Process discovery Week 9 Week 1 Weeks 2-3 Process monitoring and controlling Week 8 Process implementation Process analysis Process redesign Weeks 4-5 Week 7 8 Process Modeling in the BPM Lifecycle Examples for BPM lifecycle and process mining 35h B 30h 3m 10m 5m D 30m 2h A 1.5h B Procure Materials C D Procure Products Implement Strategy Manage Risk Market Products Deliver Products Manage Customer Service Support Processes 10m Conformance and performance insights 10min Develop Strategy Core Processes E C 15m Define Vision Process architecture 15h A 5m Management Processes Process identification Process discovery Manage Information Manage Personnel As-is process model E Process monitoring Process analysis Insights on weaknesses and their impact Executable process model Process implementation To-be process model Process redesign 9 Manage Assets Week 2: Essential Process Modeling Agenda 1. First Steps with BPMN 2. Branching and Merging 3. Business Objects 4. Resources 5. Recap 10 Business Process Model and Notation (BPMN) ▪Object Management Group (OMG) standard (BPMN 2.0) ▪Supported by numerous tools: bpmn.org lists over 70 tools ▪Both for conceptual and executable models ▪ ▪ ▪ ▪ ▪ ▪ Signavio (we’ll use the academic edition in this course – academic.signavio.com) Bizagi Process Modeler (free) Cameo Business Analyst Oracle BPA ARIS Ms Visio 11 BPMN from 10,000 miles… Based on popular graphical flowcharts: -Core set of notation elements -Each core element has various subtypes A BPMN process model is a graph consisting of four types of core elements: start activity end event gateway sequence flow 12 BPMN core elements Activities capture work performed in a process • Different types of activities activity Events represent the process’ triggers (start event) and outcomes (end event). start event end event • Different types of events 13 BPMN core elements Gateways capture forking and joining paths in the control flow. gateway sequence flow • Different types of gateways Sequence flows represent the order in which activities and events will be performed. They can be assigned a condition to distinguish between alternative branches. • Different types of flows 14 Let’s start modelling Order-to-cash A typical order-to-cash process is triggered by the receipt of a purchase order from a customer. The purchase order has to be checked against the stock regarding the availability of the item(s) requested. Depending on stock availability the purchase order may be confirmed or rejected. If the purchase order is confirmed, an invoice is emitted and the goods requested are shipped. The process completes by archiving the order or if the order is rejected. 15 Let’s start modelling – break it down Order-to-cash ▪ A typical order-to-cash process is triggered by the receipt of a purchase order from a customer. ▪ Upon receipt, the purchase order has to be checked against the stock regarding the availability of the item(s) requested. ▪ Depending on stock availability the purchase order may be confirmed or rejected. ▪ If the purchase order is confirmed, an invoice is emitted and the goods requested are shipped. The process completes by archiving the order or if the order is rejected. 16 Let’s start modelling – break it down Order-to-cash ▪ A typical order-to-cash process is triggered by the receipt of a purchase order from a customer. ▪ Upon receipt, the purchase order has to be checked against the stock regarding the availability of the item(s) requested. 17 BPMN Model Order-to-cash Check stock availability Purchase order received 18 Let’s start modelling – break it down Order-to-cash ▪ A typical order-to-cash process is triggered by the receipt of a purchase order from a customer. ▪ Upon receipt, the purchase order has to be checked against the stock regarding the availability of the item(s) requested. ▪ Depending on stock availability the purchase order may be confirmed or rejected. ▪ If the purchase order is confirmed, an invoice is emitted and the goods requested are shipped. The process completes by archiving the order or if the order is rejected. 19 Solution in BPMN: Order-to-cash activity Reject order Items not in stock start event Order rejected split gateway Check stock availability Purchase order received end event Items in stock Confirm order end event Emit invoice Ship goods Archive order Order fulfilled Naming conventions • Event: noun + past-participle verb (e.g. insurance claim lodged) • Activity: imperative verb + noun (e.g. assess credit risk) 20 Process model vs process instances: The tokens game Order #1 Order #2 Order #3 Reject order Items not in stock Order rejected Check stock availability Purchase order received Items in stock Confirm order Emit invoice Ship goods Archive order Order fulfilled 21 A little bit more on events… start event A start event triggers a new process instance by generating a token that traverses the sequence flow (“tokens source”) end event An end event signals that a process instance has completed with a given outcome by consuming a token (“tokens sink”) 22 Week 2: Essential Process Modeling Agenda 1. First Steps with BPMN 2. Branching and Merging 3. Business Objects 4. Resources 5. Recap 23 Let’s reconsider our order-to-cash example […] If the purchase order is confirmed, an invoice is emitted and the goods requested are shipped (in any order). The process completes by archiving the order. […] Reject order Items not in stock Order rejected Check stock availability Purchase order received Items in stock Confirm order Emit invoice Ship goods Archive order Order fulfilled 24 First try Order-to-cash Reject order Items not in stock Check stock availability Purchase order received Order rejected split Items in stock Emit invoice Confirm order Emit invoice Ship goods split Archive order join Order fulfilled Ship goods 25 A little more on gateways: XOR Gateway An XOR Gateway captures decision points (XORsplit) and points where alternative flows are merged (XOR-join) condition XOR-split ➔ takes one outgoing branch ¬ condition XOR-join ➔ proceeds when one incoming branch has completed 26 Example: XOR Gateway Invoice checking process 27 A little more on gateways: AND Gateway An AND Gateway provides a mechanism to create and synchronize “parallel” flows. AND-split ➔ takes all outgoing branches AND-join ➔ proceeds when all incoming branches have completed 28 Example: AND Gateway Airport security check 29 XOR / AND are not always what we need... Order distribution process A company has two warehouses, one in Amsterdam, the other in Hamburg, that store different products. When an order is received, it is distributed across these warehouses: if some of the relevant products are maintained in Amsterdam, a sub-order is sent there; likewise, if some relevant products are maintained in Hamburg, a sub-order is sent there. Afterwards, the order is registered and the process completes. 30 Solution 1 Order distribution process XOR-split AND-split XOR-join AND-join 31 Solution 2 Order distribution process AND-split XOR-split AND-join XOR-join 32 OR Gateway An OR Gateway provides a mechanism to create and synchronize n out of m parallel flows. cond1 condn OR-split ➔ takes one or more branches depending on conditions OR-join ➔ proceeds when all active incoming branches have completed 33 Solution 3 using OR Gateway Order distribution process 34 Exercise: What join type do we need here? 35 Solution: What join type do we need here? 36 Beware: Beginner’s Mistake… 37 Guidelines: Naming Conventions 1. Give a name to every event and task 2. For tasks: verb followed by business object name and possibly complement • Issue Driver Licence, Renew Licence via Agency 3. For message events: object + past participle • Invoice received, Claim settled 4. Avoid generic verbs such as Handle, Record… 5. Label each XOR-split with a condition • Policy is invalid, Claim is inadmissible 38 Poll: Which model do you prefer? 39 One more guideline… Model in blocks • Pair up each AND-split with an AND-join and each XOR-split with a XORjoin, whenever possible • Exception: sometimes a XOR-split leads to two end events – different outcomes (cf. order management example) 40 Rework and repetition XOR-join: entry point XOR-split: exit point 41 Quick Note: Implicit vs. explicit gateways A A C = B C B B B = A C Allowed but not recommended A C How this process starts? How it ends? Collect mail Sort mail New mail arrived Register mail New email arrived Check mail for compliance Not acceptable Document requisition compiled Compile document requisition Acceptable Capture matter details Prepare document response Document response prepared Physical file printed Pay fee Capture party details Print physical file What’s wrong with this model? How to fix it? X 44 Week 2: Essential Process Modeling Agenda 1. First Steps with BPMN 2. Branching and Merging 3. Business Objects 4. Resources 5. Recap 45 Process Modelling Viewpoints Organization Who? Lanes & Pools What? Tasks Events When? Flows Gateways Which? Data / Materials Data Objects, Stores 46 Business/Data Objects (aka artifacts) Can be: ▪Physical or digital information artifacts (e.g. an order on paper, an invoice on PDF) ▪Physical material (e.g. a box containing the ordered goods) 47 Business Objects in BPMN Invoice Purchase order Emit invoice Oracle CRM Client info Retrieve client information A Data Object captures an artifact required (input) or produced (output) by an activity. • Can be physical or electronic A Data Store is a place containing data objects that must be persisted beyond the duration of a process instance. It is used by an activity to store (as output) or retrieve (as input) data objects. 48 Our Order-to-cash process, again Send invoice Items in stock Confirm order Order fulfilled Check stock availability Purchase order received Archive order Ship goods Items not in stock Reject order Order rejected The purchase order document serves as an input to the stock availability check against the Warehouse DB. Based on the outcome of this check, the status of the document is updated, either to “approved” or “rejected”. If the order is approved, an invoice and a shipment notice are produced. The order is then archived on the Orders DB. 49 Solution Invoice Purchase Order [approved] Purchase Order [checked] Purchase Order Items in stock Send invoice Confirm order Archive order Order fulfilled Check stock availability Purchase order received Purchase Order [approved] Ship goods Items not in stock Reject order Order rejected Shipment notice Orders DB Warehouse DB Purchase Order [rejected] The purchase order document serves as an input to the stock availability check against the Warehouse DB. Based on the outcome of this check, the status of the document is updated, either to “approved” or “rejected”. If the order is approved, an invoice and a shipment notice are produced. The order is then archived on the Orders DB. 50 Model with information artifacts Purchase Order Purchase Order [checked] Purchase Order Purchase Order Send invoice Confirm order Items in stock Archive order Order fulfilled Check stock availability Purchase order received Invoice Ship goods Items not in stock Reject order Order rejected Purchase Order Shipment notice Orders DB Warehouse DB Purchase Order [rejected] Purchase Order [approved] Beware: This diagram is a too detailed. It is for illustration purposes. In practice, try to only model the most important data objects and associations. Keep the model readable!! Do we always need to model data objects? In the Team Assignment – Yes! Only few - the most important data objects. In the exam – only if you are asked to use them. 52 BPMN Text Annotations A Text Annotation is a mechanism to provide additional text information to the model reader • Doesn’t affect the flow of tokens through the process Includes packaging Ship goods For blocked invoices Clear vendor line items 53 Week 2: Essential Process Modeling Agenda 1. First Steps with BPMN 2. Branching and Merging 3. Business Objects 4. Resources 5. Recap 54 Resources Active resources: • Process participant • Software system • Equipment Resource class: A group of (active) resources that are interchangeable, e.g. a role, an organizational unit or the whole organization. 55 Process Modelling Viewpoints Organization Who? Lanes & Pools What? Tasks Events When? Flows Gateways Which? Data / Materials Data Objects, Stores 56 BPMN Elements – Pools & Lanes Pool Pool Captures a resource class. Generally used to model a business party (e.g. a whole company) Lane Captures a resource sub-class within a resource class by partitioning a pool. Generally used to model departments (e.g. shipping, finance), internal roles (e.g. Manager, Associate), software systems (e.g. DBMS, CRM) or equipment (e.g. Manufacturing plant) Pool Lane Lane Lane Lane 57 Resources in the order-to-cash example The order-to-cash process is carried out by a seller’s organization which includes two departments: the Sales department and the Warehouse & Distribution department. The purchase order received by the Seller has to be checked against the stock. This is done via an ERP module within the Warehouse & Distribution department. If the purchase order is confirmed, the Warehouse & Distribution department ships the goods. Meantime, the Sales department emits the invoice. The process concludes with the order being archived by the Sales department. 58 Solution: Order-to-cash 59 BPMN Elements – Message Flow A Message Flow represents a flow of information or materials between two process parties (Pools) Message A Message Flow can connect: Send Receive Pool 2 Pool 1 Pool 2 Receive Pool 1 • directly to the boundary of a Pool ➔ captures a message to/from that party • to a specific activity or event within that Pool ➔ captures a message that triggers a specific activity/event within that party Send 60 BPMN Elements – Start Message Event The start message event triggers a process by the receipt of a message when an incoming message flow is connected to the event Message Message received 61 Order-to-cash process with a black-box customer pool 63 Pools, Lanes and Message Flows: syntax 1. The Sequence Flow cannot cross the boundaries of a Pool 2. Both Sequence Flow and Message Flow can cross the boundaries of Lanes 3. A Message Flow cannot connect two flow elements within the same pool 64 Black box or white box? 65 One more guideline… Start modeling with one single “white-box” pool • Initially, put the events and tasks in only one pool – the pool of the party who is running the process • Leave all other pools “black-boxed” • Once you have modeled this way, and once the process diagram inside the white-box pool is complete, you can model the details (events and tasks) in the other pools if that is useful. • In this course we will only model processes with one single white-box pool – all other pools are black-box 66 Collaboration Diagram Models a global business process between at least two business parties (each modelled by a Pool) Seller Send delivery notification Send auction creation request Auctioning Service Auction creation request Send payment details Auction completion notification Auction creation confirmation Payment details Conduct auction Send auction creation confirmation Private process Send payment ack. Send auction creation confirmation Auction begins Bid acknowledgement Delivery acknowledgement Auction completion notification Bidder Bid Send auction completion notification Payment acknowledgement Goods sent notification Public process 67 BPMN Poster Week 2: Essential Process Modeling Agenda 1. First Steps with BPMN 2. Branching and Merging 3. Business Objects 4. Resources 5. Recap 69 Recap 1. BPMN activities capture units of work in a process 2. Events define the start and end of a process, and signal something that happens during the execution of it 3. Gateways model exclusive and inclusive decisions, merges, parallelism and synchronization, and repetition 4. A process model depicts all the possible ways a given business process can be executed, while a process instance captures one specific process execution out of all possible ones 5. Data objects capture a physical or digital business object required to execute an activity or trigger an event, or that results from the execution of an activity or an event occurrence 6. Pools generally model resource classes while lanes are used to partition pools 70 Week 3 Outlook ❑ Advanced Process modelling