What Is Business Process Analysis?

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Business Process

Analysis (BPA)
The Key to Success in a Changing
Environment

© 1998 Knowledge Based Systems, Inc.

What is Business Process Analysis?

“. . . the fundamental rethinking and radical redesign of business


processes to achieve dramatic improvements in critical,
contemporary measures of performance such as cost, quality,
service, and speed.”

—Hammer and Champy,


Reengineering the Corporation,
Harper Business, 1993

© 1998 Knowledge Based Systems, Inc.

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Why is BPA Necessary?
Enterprises must constantly improve processes to thrive in a
changing environment.

‹ The Information Age has changed


the environment.
‹ Markets and customers require
cheaper, faster, and better—all the
time.
‹ Information management
technologies have enhanced
customer service.

© 1998 Knowledge Based Systems, Inc.

BPA = Structured Improvement


BPA and
ABC Principles
Current Improved
Processes Processes
& &
Systems Systems
Engineer World-Class
Processes and Systems

BPA Methods, Techniques, & Tools


© 1998 Knowledge Based Systems, Inc.

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Important Terms

‹ Business Process
‹ Customer
‹ Methodology
‹ Method
‹ Tool
‹ Process Management

© 1998 Knowledge Based Systems, Inc.

BPA’s Focus
While CPI and BPI focus on incremental change in sets of
processes, BPA’s focus spans several processes and ultimately
involves a paradigm shift in the way an enterprise does business.

BPA

CPI BPI
Continuous Process Improvement Business Process Improvement

Single Process Multiple Processes

© 1998 Knowledge Based Systems, Inc.

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Incremental Improvement with BPA

CPI: Improve productivity


BPA: Rebuild based on
incrementally in sub-processes
redefined vision and
3 to 6 months’ duration mission, creating
changes in products,
services, channels,
BPI: Redesign whole process across and markets
different functions 1 to 3 years’
6 to 12 months’ duration duration

© 1998 Knowledge Based Systems, Inc.

The Three Perspectives of BPA

Organization

Process

People

© 1998 Knowledge Based Systems, Inc.

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BPA’s External Focus
‹ Anticipate the need for
and implement change
‹ Respond quickly to
changing market
trends
‹ Provide a variety of
products without
incurring added costs
‹ Satisfy customers and
build a stable customer
base

© 1998 Knowledge Based Systems, Inc.

BPA’s Internal Focus


‹ Achieve breakthroughs in
performance
‹ Model processes to clarify
process intent
‹ Align process intent with
business strategy
‹ Use advanced methods for
process management
‹ Leverage technology to improve
workflow

© 1998 Knowledge Based Systems, Inc.

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The Four Phases of BPA
Phase 1: Project Definition
‹ Business Case Analysis
‹ Critical Issue/Critical Process Identification
Phase 2: As-Is Process Description/Analysis
‹ As-Is Disconnect/Root Cause Analysis
Phase 3: To-Be Process Design/Validation
‹ Cost/Time/Productivity/Quality
‹ System Requirements Definition
‹ To-Be Performance Validation/Simulation
Phase 4: Implementation Planning

© 1998 Knowledge Based Systems, Inc.

Key Questions and BPA Phases

What do we want to do? Project Definition


Where are we? As-Is Description/Analysis
Where do we want to go? To-Be Design/Validation
How do we get there? Implementation Planning

© 1998 Knowledge Based Systems, Inc.

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The Keys to Successful BPA
Strategic Planning to create roadmap for success

Input from process owners/domain experts

Ability to assume the process view

Clear goals and measurable results for each stage


of the process

Business metrics built into the redesigned processes to quantify


continuous improvement

Technology to adequately support change

© 1998 Knowledge Based Systems, Inc.

BPA Structure for Success

Implementation Monitoring

Team

Structured Automated
Techniques
Methods Tools Support

Methodology
Framework

© 1998 Knowledge Based Systems, Inc.

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BPA Methods & Techniques
‹ IDEF Family of Methods

‹ Knowledge Capture Techniques

‹ Activity Based Costing (ABC)

‹ Discrete Event Simulation

‹ Performance Benchmarking

© 1998 Knowledge Based Systems, Inc.

IDEF Supports BPA

IDEFØ: Capture activities and their relationships;


identify core activities; identify activities for
analysis.

IDEF3: Describe business processes; redesign processes


for improvement; use process descriptions for
simulation.

IDEF1/1X: Capture how data and information are used to


support business processes.

© 1998 Knowledge Based Systems, Inc.

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Software Tools Facilitate BPA
‹ Efficient Knowledge Capture
‹ Increased Informational Integrity
‹ Graphical Representations
‹ Common Data Repository
‹ Method Enforcement
‹ Cross-platform Capabilities

© 1998 Knowledge Based Systems, Inc.

Integrated Approach

Phase Best Tool(s)


Project Definition AIØ WIN
Hoshin Planning
Critical Issue Identification
As-Is Description and Analysis PROSIM / WITNESS
To-Be Design and Validation
Cost / Benefit / Productivity SMARTCOST, AIØ WIN
Metrics Definition SMARTCOST
Performance Validation PROSIM / WITNESS
Implementation Planning PROJECTLINK, AIØ WIN,
PROSIM

© 1998 Knowledge Based Systems, Inc.

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Automating the BPA Process
What do you do?

IExplorer®
EasyABC®

AIØ WIN®
What does it cost?

How do you do it?


WITNESS®
MS Excel™

SMARTCOST™

PROSIM®
Complete Data
Interchange

PROJECTLINK™
SMARTER™

Databases
ODBC — Access™ Project Management
SQL — ORACLE® & SQL Server™
What information do you need?
© 1998 Knowledge Based Systems, Inc.

Building the Business Case


Successful BPA ...
‹ Reduces Cycle Time
‹ Reduces Cost
‹ Improves Quality
‹ Improves Asset Utilization
‹ Enables Total Customer
Success

© 1998 Knowledge Based Systems, Inc.

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Emerging Business Trends
‹ Seamless networks between enterprises
‹ Disintegration of boundaries between commercial
and government enterprises
‹ Worldwide information infrastructure
‹ Emerging international standards
‹ Global markets

© 1998 Knowledge Based Systems, Inc.

Building the New Business with BPA


‹ Analyze and redesign
business processes
‹ Identify and insert appropriate
technology
‹ Evolve and reorganize the
enterprise to leverage new
processes
‹ Build performance measures
into new processes

© 1998 Knowledge Based Systems, Inc.

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BPA
‹ Review & Questions

© 1998 Knowledge Based Systems, Inc.

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