Introduction of Business Process Modelling

Business Information Systems

Management

(BUS5BIM) Business process

modelling tutorial

Note:

Introduction of Business Process Modelling

Business Process Modelling (BPM) is a modern term and methodology which has evolved through different stages and names, beginning during the 'division of labour' of the late 1700s, when manufacturing first moved into factories from cottage industry. More explanation is in the historical development of Business Process Modelling below. Broadly the term 'business' in Business Process Model/Modelling/modeling is interchangeable with 'organisation'. Business Process Modelling is not only carried out in conventional businesses; the methodology is increasingly applicable to all sorts of other organisations, for example government agencies and departments, charities, mutuals and cooperatives, etc.

Confusingly, the acronym BPM can mean different things, some closely related to Business Process Modelling; others less so. 'Business Process Management' is an example of a different and related meaning. More details are in the glossary below. Business Process Modelling is a method for improving organisational efficiency and quality. Its beginnings were in capital/profit-led business, but the methodology is applicable to any organised activity.

What is Business process

A business process is a collection of linked tasks which find their end in the delivery of a service or product to a client. A business process has also been defined as a set of activities and tasks that, once completed, will accomplish an organizational goal. The process must involve clearly defined inputs and a single output. These inputs are made up of all of the factors which contribute (either directly or indirectly) to the added value of a service or product. These factors can be categorized into management processes, operational processes and supporting business processes. What is business goal

A goal is a desired result or outcome that a person or a system envisions, plans and commits to achieve: a personal or organizational desired end-point in some sort of assumed development. Many people endeavour to reach goals within a finite time by

than following are the business goals that belong to this process: Insert card, verify card, check balance, check account etc.

Business task

One business goal could be the combination of different business tasks, see figure three below. In this subject we consider tasks are the activities of the business gaols.

Case study – Automotive (Artesis)

Artesis is a manufacturer of automotive parts to Toyota, Honda, and Daimler Chrysler. Such customers demand that its complex sound insulation products combine exceptionally high quality with competitive costs. Lean manufacturing methods have been effectively combined with advanced technology to build on their position as a major global partner.

Figure 1: Artesis

Company facing two main challenges: First: Productivity at this company is critically reliant on the reliability of its manufacturing machinery. Although the maintenance team had implemented a rigorous planned maintenance program on critical pumps, presses, compressors and waterjet cutters, the failure rate continued at an unacceptable level that required emergency repairs on a daily basis. As well as impacting availability, this also meant that the maintenance technicians were forced to focus on constant breakdowns rather than process improvements. Second, the primary goal of the automobile company is to make possible the supply of auto parts to different cities around the country. However, due to lack of IT support and non-alignment between business and IT company not able to accomplish this goal. Therefore, company required to model their process namely “process of order management”. Note: In this tutorial, we only provide a solution for the second

challenge of the company.

One way of achieving IT support and establishing strong alignment is the development of an IT system which meets business expectations. This is only possible if IT analysts take the organizational environment into account prior to implementing the system. This case study presents an organizational goal-oriented requirements elicitation approach which will allow the IT department to better understand the business goals of the organization to enable them to develop an IT system which will meet business expectations.

Solution using MS Visio

Step 1: Identify the business stakeholders and model the business process, see figure 2 below

C om p an y sy ste m Q u ick fe ed b ac k Ord er rec eiv ed P la ce d o rd e r A cc o u n ts o ffi ce H ea d o ffi ce C an ce l o rd e r C an ce l No C he ck p ay m en t ye s P ay m en t M a nu fa ct u r er St or e ma n ag er ac ce pt R eje ct No A v ail ab le St oc k em p ty No O rd er n ew it em R eq u es t n e w st o ck St or e m a n C om p le te p ac k et P ac k et sh ip p ed P ac k et sh ip m en t Ite m sh ip e d P la ce o rd er Ta sk G ate w ay o r d ec isio n St ar t En d Le ge n d o r sy mb ols Figure 2

Step 2: Extract business goals and tasks that need to in the proposed company process, see figure 3.

Order new stock Automobile company Company System Admin Manage system Proceed order Create order list Shipment V V Accept order Forward order Create new list Final list Modify list Prepare shipping list Recipient info V Stock availability Place invoice Delivery address V Stock available Stock empty V Place item Check invoice V V Valid packet Complete packet V V V Wait for new stock V

Legend

Business goal Business task V

V

Part of (and) OR(operator)

Figure 3

Step 3: Highlight the gaols and tasks that are not possible to implement, see figure 3

Order new stock Automobile company Company System Admin Manage system Proceed order Create order list Shipment V V Accept order Forward order Create new list Final list Modify list Prepare shipping list Recipient info V Stock availability Place invoice Delivery address V Stock available Stock empty V Place item Check invoice V V Valid packet Complete packet V V V Wait for new stock V

Legend

Step 4: convert the information at figure 3 into system requirements (state chart), see figure 4

Initial State End State _State Customer Company system Place order Store manager Proceed order Store helper P r o c e e d o r d e r

Order new stock

Complete packet Create packet Shipping company Shipped packet

Accept order New stock

Check item Check invoice Item shipped

Legend

Note: state chart diagram in figure 4 clearly depicts the business goals; and exactly what the system has to do and how it should do it, which positively influences the development of a successful IT system and influences the process of implementing a strong IT-Business alignment.

Task

We all know how ATM machine works. Consider the following ATM scenario, Model the ATM process (see example in figure 2), analyse the model (see example in figure 2 and 3) and generate the system requirements (see example in figure 4). Discuss you result with tutor ATM Scenario

1. Verify the slot for ATM Card insertion is as per the specification

2. Verify that user is presented with options when card is inserted from proper side 3. Verify that no option to continue and enter credentials is displayed to user when card

is inserted correctly

4. Verify that font of the text displayed in ATM screen is as per the specifications 5. Verify that touch of the ATM screen is smooth and operational

6. Verify that user is presented with option to choose language for further operations 7. Verify that user asked to enter pin number before displaying any card/bank account

8. Verify that there are limited number of attempts upto which user is allowed to enter pin code

9. Verify that if total number of incorrect pin attempts gets surpassed then user is not allowed to continue further- operations like blocking of card etc gets initiated 10. Verify that pin is encrypted and when entered

11. Verify that user is presented with different account type options like- saving, current etc

12. Verify that user is allowed to get account details like available balance

13. Verify that user same amount of money gets dispatched as entered by user for cash withdrawal

14. Verify that user is only allowed to enter amount in multiples of denominations as per the specifications

15. Verify that user is prompted to enter the amount again in case amount entered is not as per the specification and proper message should be displayed for the same 16. Verify that user cannot fetch more amount than the total available balance 17. Verify that user is provided the option to print the transaction/enquiry

18. Verify that user user's session timeout is maintained and is as per the specifications 19. Verify that user is not allowed to exceed one transaction limit amount

20. Verify that user is not allowed to exceed one day transaction limit amount 21. Verify that user is allowed to do only one transaction per pin request 22. Verify that user is not allowed to proceed with expired ATM card

23. Verify that in case ATM machine runs out of money, proper message is displayed to user

24. Verify that in case sudden electricity loss in between the operation, the transaction is marked as null and amount is not withdrawn from user's account