Business process modeling: Difference between revisions

Revision as of 01:25, 1 April 2024

Revision as of 15:14, 6 April 2024

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* Process Analysis (understanding the as-is processes and their alignment with the company's objectives - analysis of business activities)

* Process Design (redesign - business process reengineering - or redesign of business processes - business process optimization)

* Process Performance Measurement (can focus on the factors of time, cost, capacity, and quality or on the overarching view [[Kaizen#The seven Muda|waste]])

* Process Transformation (planned, structured development, technical realization, and transfer to ongoing operations)

However, a completely separate consideration of the disciplines is not possible: ''Business process modeling'' always requires a ''business process analysis'' for modeling the as-is processes (see section [[#Analysis of business activities|Analysis of business activities]]) or specifications from ''process design'' for modeling the to-be processes (see sections [[#Business process re-engineering (BPR)|Business process reengineering]] and [[#Business process optimization|Business process optimization]]).

The focus of business process modeling is on the [[#Representation type and notation|representation]] of the flow of [[Action (philosophy)|actions (activities)]], according to Hermann J. Schmelzer and Wolfgang Sesselmann consisting «of the cross-functional identification of value-adding activities that generate specific services expected by the customer and whose results have strategic significance for the company. They can extend beyond company boundaries and involve activities of customers, suppliers, or even competitors.»<ref name="SCHMELZER">Hermann J. Schmelzer and Wolfgang Sesselmann: ''Geschäftsprozessmanagement in der Praxis'', 9th edition, Hanser, Munich 2020, ISBN 978-3-446-44625-0</ref> ^{(Chapter 2.1 Differences between processes and business processes) ← automatic translation from German}

But also other [[Quality (philosophy)|qualities]] (facts) such as [[data]] and [[business object]]s (as [[Input output|inputs]] / outputs), [[formal organization]]s and [[Actor (UML)|roles]] (responsible/accountable/consulted/informed persons, see [[Responsibility assignment matrix|RACI]]), [[resource]]s and [[application software|IT-systems]] as well as [[guideline]]s/instructions ([[Means of labor|work equipment]]), [[requirement]]s, [[Performance indicator|key figure]]s etc. can be modeled.

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These three process types can be identified in every company and are used in practice almost without exception as the top level for structuring business process models.<ref>Knowledge database: [https://der-prozessmanager.de/aktuell/wissensdatenbank/prozesslandkarte ''In 6 einfachen Schritten zur Prozesslandkarte''], DER PROZESSMANAGER GmbH (last accessed: January 25, 2024)</ref> Instead the term ''leadership processes'' the term ''[[management process]]es'' is typically used. Instead of the term ''execution processes'' the term ''[[Business processes|core process]]es'' has become widely accepted.<ref name="SCHMELZER"/> ^{(Chapter 6.2.1 Objectives and concept) ← automatic translation from German,} <ref name="BECKER-KAHN">Jörg Becker and Dieter Kahn: ''Der Prozess im Fokus'' in Jörg Becker, Martin Kugler and Michael Rosemamm (publisher): ''Prozessmanagement: Ein Leitfaden zur prozessorientierten Organisationsgestaltung'', 2nd corrected and expanded edition, Springer, Berlin/Heidelberg/New York 2002, ISBN 3-540-00107-7</ref> ^{(Chapter 1.3 The concept of process) ← automatic translation from German,} <ref name="BECKER-MEISE">Jörg Becker and Volker Meise: ''Strategie und Organisationsrahmen'' in Jörg Becker, Martin Kugler and Michael Rosemamm (publisher): ''Prozessmanagement: Ein Leitfaden zur prozessorientierten Organisationsgestaltung'', 2nd corrected and expanded edition, Springer, Berlin/Heidelberg/New York 2002, ISBN 3-540-00107-7</ref> ^{(Chapter 4.12.2 Differentiation between core and support objectives) ← automatic translation from German,} <ref name="SPECK-SCHNETT">Mario Speck and Norbert Schnetgöke: ''Sollmodellierung und Prozessoptimierung'' in Jörg Becker, Martin Kugler and Michael Rosemamm (publisher): ''Prozessmanagement: Ein Leitfaden zur prozessorientierten Organisationsgestaltung'', 2nd corrected and expanded edition, Springer, Berlin/Heidelberg/New York 2002, ISBN 3-540-00107-7</ref> ^{(Chapter 6.2.2 Identification and rough draft) ← automatic translation from German}

If the ''core processes'' are then organized/decomposed at the next level in [[supply chain management]] (SCM), [[Customer Relationship Management]] (CRM), and [[product lifecycle management]] (PLM), standard models of large organizations and industry associations such as the ''[[Supply chain operations reference|SCOR model]]'' can also be integrated into business process modeling.

== History ==

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** to increase quality

** to reduce costs, such as labor, materials, scrap, or capital costs

* preparation / implementation of a ''business process optimization'' (which usually begins with an analysis of the current situation)

** to support the analysis of the current situation

** to develop alternative processes

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Consequently, business process modeling for TCT must support adequate documentation of barriers, barrier handling and measurement.

When examining Kaizen tools, initially, there is no direct connection to business processes or business process modeling. However, Kaizen and business process management can mutually enhance each other. In the realm of business process management, Kaizen's objectives are directly derived from the objectives for business processes and sub-processes. This linkage ensures that Kaizen measures effectively support the overarching business objectives..»<ref name="SCHMELZER" /> ^{(Chapter 6.3.3 KAIZEN) ← automatic translation from German}

Six Sigma is designed to prevent errors and improve the [[Process capability index|process capability]] so that the proportion of process outcomes that meet the requirements is 6σ - or in other words, for every million process outcomes, only 3.4 errors occur. Hermann J. Schmelzer and Wolfgang Sesselmann explain: «Companies often encounter considerable resistance at a level of 4σ, which makes it necessary to redesign business processes in the sense of business process re-engineering (design for Six Sigma).»<ref name="SCHMELZER" /> ^{(Chapter 6.3.4 Six Sigma) ← automatic translation from German} For a reproducible measurement of process capability, precise knowledge of the business processes is required and business process modeling is a suitable tool for design for Six Sigma. Six Sigma therefore uses business process modeling according to [[SIPOC]] as an essential part of the methodology and business process modeling using SIPOC has established itself as a standard tool for Six Sigma.

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* "Products" describes the business processes that are product-specific (e.g. current account, securities account, loan, issue)

* "Sales channels" describes the business processes that are typical for the type of customer acquisition and support (e.g. direct sales, partner sales, online).

The result of structuring a company's business processes is the ''process map'' (shown, for example, as a [[value chain diagram]]). ''Hermann J. Schmelzer and Wolfgang Sesselmann'' add: «There are connections and dependencies between the business processes. They are based on the transfer of services and information. It is important to know these interrelationships in order to understand, manage, and control the business processes.»<ref name="SCHMELZER" /> ^{(Chapter 2.4.3 Process map) ← automatic translation from German}

=== Definition of business processes ===

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[[File:VAC Process sales pipeline.png|thumb|Breakdown of the business process ''Process sales pipeline'' into sub-processes based on phases]]

August W. Scheer is said to have said in his lectures: ''A process is a process is a process.'' This is intended to express the [[recursion|recursiveness]] of the term, because almost every process can be broken down into smaller processes (sub-processes). In this respect, terms such as ''business process'', ''main process'', ''sub-process'' or ''elementary process'' are only a desperate attempt to name the level of process decomposition. As there is no universally valid agreement on the granularity of a ''business process'', ''main process'', ''sub-process'' or ''elementary process'', the terms are not universally defined, but can only be understood in the context of the respective business process model.

In addition, some German-speaking schools of business informatics do not use the terms ''process'' (in the sense of representing the sequence of [[Action (Philosophy)|actions (activities)]]) and ''function'' (in the sense of a delimited ''corporate function''/action (activity) area that is clearly assigned to a ''corporate function owner'').