PowerPoint Presentation

Requirement Excellence FrameworkBusiness Process Analysis

www.enfocussolutions.comBusiness Process AnalysisBusiness process analysis helps an organization improve how it conducts its functions and activities in order to reduce overall costs, provide more efficient use of scarce resources, and better support customers. It introduces the notion of process orientation, of concentrating on and rethinking end-to-end activities that create value for customers, while removing unnecessary, non-value-added work. Generally technology is implemented to automate or streamline business processes, so it is important to conduct a business process analysis to understand how the process works and how it can be improved.1What are Outputs of a Business Process Analysis?As Is ModelTo Be ModelCustomer and Supplier DefinitionsProcess Ownership and GovernanceRoles and ResponsibilitiesProcess ImpactOrganization ImpactSystem ImpactRiskImpact TypeImpact LevelExpected Outcomes2RequirementPro Business Process Functionality3Process CategoryProcess GroupProcessActivityBusiness ProcessImpactProjectScopeStatementFunctionalRequirementSupplementalRequirementThe process structure is organized using APQCs Process Classification Structure (PCF). The PCF was developed by APQC and its member organizations as an open standard to facilitate improvement through process management and benchmarking, regardless of industry, size, or geography. The PCF organizes operating and management processes into 12 enterprise-level categories, including process groups and over 1,000 processes andassociated activities.During Process Analysis, impacts on existing business processes from are identified and documented . Depending on the size of the project, AS IS and TO BE business process models may need to be created or updated. The business process impacts are later used in the Project Scope Activity to define scope statements which are used to elicit needs from Stakeholders and specify requirements.Since software is used to provide automated support for a business process, it is essential to understand how the process is going to work before defining software requirements.FeatureImpactWhat is a Business Process?A business process is the the set of steps a business performs to create value for customers. A process consists of three components: inputs, activities, and outputs.4

Three Types of ProcessesOperating ProcessPrimary processes are end-to-end, cross-functional processes which directly deliver valueRepresent the essential activities an organization performs to fulfill its missionMake up the value chain where each step adds value to the preceding step as measured by its contribution to the creation or delivery of a product or service, ultimately delivering valuePrimary processes can move across functional organizations, across departments or even between enterprises and provide a complete end-to-end view of value creationSupport ProcessSupport primary processes, often by managing resources and/or infrastructure required by primary processesDifferentiator is that support processes do not directly deliver value- Does not mean that they are unimportant to an organizationExamples of support processes include information technology management, facilities or capacity management and human resource managementSupport processes are generally associated with functional areasManagement ProcessUsed to measure, monitor and control business activitiesEnsure that a primary or supporting process meets operational, financial, regulatory and legal goalsDo not directly add valueNecessary in order to ensure the organization operates effectively and efficiently5Examples of Processes UniversityTeaching StudentsPaying for Classes HospitalEmergency CarePayrollManufacturingPurchasing MaterialTraining WorkersFederal Government AgencyProcurementHiring New Employees Retail StoreSelling ProductsEmployee SchedulingBankOpening New AccountsStatement DistributionRestaurantPreparing MealsAdvertisingConstructionBudgetingManaging SubcontractorsNot for ProfitDistribution of FundsEmployee Recruitment

6Who are the Process Customers?Because a transformation process exists to satisfy customer requirements, process owners need to understand who their customers are, what they want, and how to provide what they want. The customers of a process are the people who require the products and services that are the result of the process or one phase of the process. They are classified as: External customers-people who ultimately use the products and/or services (process outputs or work results) of an organization; andInternal customersthe owners of the next phases in the process who must wait for the delivery of a product or service before completing work.7Complete View of ProcessA process consists of a mix of automated and manual activities in a structured or ad-hoc manner to deliver expected outcomes.Understanding the overall set of activities that comprise a process and their business rules is essential.The requirements analyst needs to understand the entire picture to understand how a solution should operate. Systems/applications generally only automate a part of the process.Activities that are to be automated define the scope of the development and implementation work which may span multiple applications.8ManualActivityAutomated ActivityBusiness RulesAutomated ActivityAutomated ActivityManualActivityApplicationApplicationBusiness ProcessProcess Improvement9Symptoms of Poor Business Process DesignNo standard process/method for addressing how to define business requirements and when to improve business processes.When automation of processes is commissioned, Business says that they do not always get what they think they have asked for.The processes used to document and communicate business processes and requirements are neither easy nor documented.Business programs frequently exist in a culture of reacting to cross-functional problems/emergencies.IT has responsibility for creating and maintaining business process flows, business requirements and business rules.10How do you Improve a Process?Use a structured and organized approach and methodology.Eliminate activities that do not add value for the customer. Ask yourself: "Would the customer want to pay for this activity?" If the answer is no, ask yourself: "Why are we doing this? Is it a federal law? A state law?" If the answer is no, ask yourself: "What benefit do we gain by doing this?" At this point, you are coming close to eliminating the activity.Eliminate constraintsthings that frustrate employees and slow processes.Streamline/simplify processes. It is difficult to document and teach people complex processes.Once processes are streamlined, automate the process if feasible.Provide leadership in a positive direction. Function as a strategist. Envision and invent the future with streamlined processes and relationships.Act empowered; be accountable. As individuals and members of teams, function as process owners and consider process management and improvement an integral part of daily work. Don't say, "They won't let us " Make decisions, not excuses.Document and publicize improvements. Success breeds success.Continue to monitor and evaluate processes to identify additional opportunities for improvement.Ask what, where, why, who, when, and how questions about each step in a process (or job).11Typical Benefits for Process ImprovementTypical results of a well-established process improvement program include:Productivity improvements of 10% - 50%Quality improvements: significantlydecreased error rates and fieldproblems, resulting in reduced reworkImproved ability to plan and controlprojects, reduced project delaysCycle time reductions of 20% -50%Cost savings average 5:1 ROI12Other BenefitsFewer overtime hours More stable work environmentImproved working conditionsImproved quality of work lifeImproved employee moraleReduced employee turnoverImproved management of project riskImproved customer satisfactionBetter company image13Desired OutcomesProcesses are documented, usable and consistentSchedules and budgets are based on historical performance and are realisticExpected results for cost, schedule, functionality and product quality are usually achievedDisciplined processes are followed consistently because all participants understand their valueBroad-scale, active involvement across the organization in improvement activitiesRoles and responsibilities are clear14Process Reengineering PrinciplesOrganize around outcomes not tasks - helps eliminate the need for handoffs and provides a single point of contact for the customerHave those who use the output of the process perform the process those who are closest to the work should do the workMerge information - processing work into the real work that produces the information - People collecting the work should be responsible for processing the work instead of handing over to some other individual or systemTreat geographically dispersed resources as though they were centralized - technology advancements make this a reality through combining dispersed systems and teams as though they were a single teamLink parallel activities instead of integration their results - helps reduce errors at the end of the processPut the decision point where the work is performed and build control into the process - empowers the performer of the work to get the resources he needs to get the job done most efficientlyCapture information once - at the source - eliminates costly mistakes of information not being passed effectively from one handoff to anotherConfidential - Not for External Distribution15Process Analysis16Process AnalysisAnalysis generates the information necessary for the organization to make informed decisions assessing the activities of the businessDue to business change the processes of an organization can quickly become inconsistent to their original design and no longer meet the needs of the businessProcess analysis is an essential tool to show how well the business is meeting its objectivesCreates an understanding of how work (the transformation of inputs to outputs) happens in the organizationInformation becomes a valuable resource to management and leadership to understand how the business is functioningConfidential - Not for External Distribution17Process AnalysisAnalyze the Current ProcessAt which point doe the process break down or experience delays?At which points do people typically experience frustration with the process?Which parts of the process seem to consume an inordinate amount of time?Which parts of the process lead to low quality outcomes?Which parts of the process incur unacceptable costs?Envision the New ProcessWhat are things we can do to exceed our customers expectations?Could the accuracy, speed, and quality of the process be improved?How might the process be improved to make it easier for customers to do business with us?How we can reduce costs?What can we do to reduce cycle times?How can we improve quality?

18Questions to Understand the ProcessWhat?is there to do?is being done?should be done?can be done?constraints keep us from doing what needs to be done?Who?does this job?should do this job?knows how to do it?should know how to do it?

Where?is this job done?should it be done?can it be done?When?is this job done?should it be done?can it be done?19Process Analysis MethodsInterviewsObservationsProcess BenchmarkingProcess Modeling and SimulationValue Chain AnalysisSWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats)Information Flow AnalysisDiscrete Event SimulationActivity Based CostingCycle-Time AnalysisDecision AnalysisSensitivity AnalysisConfidential - Not for External Distribution20Hand-OffsAny point in a process where work or information passes from one system, person or group to another is a handoff for that process.Handoffs are very vulnerable to process disconnections and should be analyzed closely.Typically, the fewer number of handoffs, the more successful the process.Which of the handoffs are most likely to break down the process?

Questions to ask of each handoff: Are there any bottlenecks of information or services as a result of handoffs happening too quickly?Can any handoff be eliminated? Where do streams of information come together and is the timing accurate?Confidential - Not for External Distribution21Process CultureA process culture is a concept in which the business processes are known, agreed on, communicated and visible to all employeesCharacteristics of a process culture includeGeneral agreement on what are the business processesUnderstanding how business processes interact and affect each otherClear definition of what value each process producesDocumentation of how each process produces its resultsUnderstanding of what skills are required for each processUnderstanding of how well each process performsOngoing measurement of process performanceManagement decisions based on process performance knowledgeOwners of each process having responsibility and accountability for process performance

To promote a process culture, we recommend that business processes be documented and maintained by business units using the Enfocus Requirement Suite.. The processes will be available to all stakeholders through the stakeholder portal.Confidential - Not for External Distribution22To Be Process Design ConsiderationsChange the process in ways that provide value that the customer wants for example more speed and efficiency, higher quality, more accuracy, less cost, or single point of contact between customers and your company.If input to the process naturally form a cluster, create a separate process for each clusterAddress the biggest time waster in the process first such as points where there is extensive waiting or rework.Consider creating several process that can operate in parallel for steps that can be done independently and not have to be done in a sequence.Look for opportunities to remove unnecessary reviews of completed workDecrease the number of steps in the process; identify opportunities to simplify steps that are unnecessarily complex.Involve as few people as possible in performing the process; reduce the number of hand-offs.Eliminate signoffs or approvals by individuals on activities they dont know much about.

Confidential - Not for External Distribution23Define the Process RequirementsPrepare To Be Process ModelDefine Process RequirementsIncrease customer value by ..Improve quality by .Decrease cost by ..Reduce cycle time by ..Reduce rework by .Improve efficiency.Review To Be Process Model and Process Requirements with StakeholdersPrepare functional and supplemental requirements for the To Be process modelPrepare training and organizational change requirements for implementation of the new To Be process modelConfidential - Not for External Distribution24Process BenchmarkingMany organizations do not spend enough time optimizing a business process before automating it; they simply automate what was done manually or what the previous system did. We call this paving the cow path.Benchmarking is a great technique that organizations can use to determine where a business process is performing well and other areas where is not performing not so well by comparing their data against their peers.Results from a benchmark study helps an organization decide where to focus their limited resources for long-term sustainable improvement. Combined with best practices information, benchmarking can help organizations quickly identify and solve common business process performance problems.Enterprise subscriptions receive one free benchmark per year. Additional benchmarks are available for a fee.25Define the Process RequirementsInputsOutputsWorkflowOwnershipPerformance MetricsBusiness Rules26Implementing the New ProcessPrepare requirement bundle for the new process requirementsDefine appropriate lifecycle events for the new process. Lifecycle events might include:ValidateCommunicate Distribute process requirement bundle to wide audience to get the message about the upcoming implementation of the new processEducate and Familiarize Build a more detailed understanding of how the new process works through role-play, practice, and simulation. Consider making a video.Pilot If you suspect that some difficulties in the new process need to be worked out, pilot it.Implement Put the new process into production by declaring the start of new operations.Break from the Past Remove the artifacts of the old process such as old forms paper stocks, equipment and so forth to reduce any temptation to shift back into previous habits.Optimize Measure process performance according metrics that were chosen. Identify problems and take needed action. Update performance metrics and targets as necessaryTrace the requirements

Confidential - Not for External Distribution27APQC Process Classification Framework28Process Classification FrameworksThere are a number of process reference models available, including: Accenture, APQCs Process Classification Framework (PCF), (SAP), Supply Chain Council, the Telecommunications Management Forum, and the Value Chain Group. The Process Classification Framework (PCF) developed by APQC in 1992, is a widely used business tool. This open source framework is commonly referenced in business books, incorporated into numerous consulting methodologies for process improvement and re-engineering,In business process design, frameworks and reference models help support process analysis, design, and modeling activities. Starting with a process framework or reference model can significantly accelerate these activities, providing analysis professionals with a sturdy foundation on which to build. 29Process Classification FrameworksA framework helps organizations in three key areas: benchmarking, content management, and business process definition. The cost of not using a process framework is the additional time it takes the process design team to develop their own process model and obtain process consensus from the project stakeholders.

30APQC Business Process Classification31

Enfocus Solutions Inc. organizes most of its content using APQC Process Classification Framework.This open source framework is available on our site as well as APQCPCF has been translated into many languages, including Japanese, Chinese, Spanish, Polish, and Portuguese. Industry specific versions of the framework are also available.The framework is organized into the 12 process areas as shown in the diagram on the left.

APQC Process Classification Framework (PCF)

Confidential - Not for External Distribution32Business Process Modeling33Business Process ModelingSet of activities involved in creating representations of an existing (as-is) or proposed (to-be) business processProvides an end-to-end perspective of an organizations operating, supporting and management processesModeling is a means to an end and not an end in itself

You model to get results and reach conclusionsConfidential - Not for External Distribution34What is a Business Process Model?Documentation of a business process using a combination of text and graphical notation.

Depicts the Process that People employ to provide value to their Customer with a strong emphasis on how the work is done.

Defines a process as a specific ordering of work activities across time and place with a beginning, an end, and clearly defined inputs and outputs.

A component of the overall Business Architecture that serves as a reference for Business Analysis activities.Not only a visual, but has text and detail to make the visual readableTells the viewer who, what, when, and how involved in producing a product/serviceIn the bigger picture and a more mature org, is part of the overall Biz Arch and analysis library rare, but ideal.Why Model a Business Process?BABOK: Describe the functions associated with the business activities... and the inputs, controls, outputs, and mechanisms/resources used of those activities. (v1.4 Sec 2.2.20.1)Understand how labor and resources are used to create products or services for a companys Customers. Identify areas that could be improved, made more efficient and re-engineeredCreate an understanding of where Systems/Applications can or do automate or streamline human or mechanized processes capture requirementsIntegrate activities between departments/companies especially necessary after a merger of different groups of People producing similar or dependent products/servicesAssist in implementation and acceptance of Six Sigma, ISO, CMM or other standardsWhat other uses can you see? The list is endlessThe key is to understand who, what, when, where, and usually why some set of steps is being doneUnderstand and identify how the individual workers and work products are helping the organization achieve its overall goalsAssists with integrating and improving inter-group activities whether it is to find cost savings, improve customer satisfaction, merge companies, integrate with suppliers, etc.If doing a 6Sig or other standards type of activity, helps really nail the big inefficiencies early and soundlyCommon Methods of ModelingBPML Business Process Modelling LanguageAn Extensible Mark-up Language (XM)-based meta-language developed by the Business Process Management Initiative (BPMI) as a means of modelling business processes BPEL Business Process Execution LanguageAn XML-based language designed to enable task-sharing for a distributed computing or grid computing environment - even across multiple organizations - using a combination of Web services. BPMN Business Process Modelling NotationA standard graphical notation used to facilitate the understanding of business transactions between organizations. UML Unified Modelling LanguageA notation that allows the modeller to specify, visualize, and construct the artefacts of software systems, as well as business models.

USE WHAT WORKS FOR YOUR PROJECT ENVIRONMENT!Do what you know. Learn to do more. But dont fake it.

Commonly Used Process Standards and NotationsBusiness Process Modeling Notation (BPMN)Flow Charting Swim LanesEvent Process Chain (EPC)Value ChainUnified Modeling Language (UML)IDEF-0LOVEM-ESIPOCSystems DynamicsValue Stream MappingConfidential - Not for External Distribution38Tailor Your Model to your Project & SelfBPML, BPEL, etc. are well and good if:You are trained and comfortable with their useYour target audience (Business and Tech Teams) understand and are comfortable with their use

Beware! Most organizations are not properly equipped or trained to produce documentation with these standards!Valid alternatives include using Visio, PowerPoint, Omni Graffle or other tools that can represent activities graphically or with text!Unless using advanced tools and workflow products, it is unlikely most people you interact with in your business or tech team even know how to understand, let alone implement using BPML, etc.

UML is likely a frequent option.There are times a simple flowchart work, too

Diagrams, Maps, and ModelsDiagramsProcess diagram often depicts simple notation of the basic workflow of a processDepicts the major elements of a process flow, but omits the minor details which are not necessary for understanding the overall flow of workMapsMore precision than a diagram More detail about process and important relationships to other elements such as performers (actors), events, resultsProvide a comprehensive view of all of the major components of the processModelsRepresents the performance of what is being modeledNeeds greater precision, data about the process and about the factors that affect its performanceOften done using tools that provide simulation and reporting capability toanalyze and understand the processConfidential - Not for External Distribution40