Quantitative Analysis of Business Process

1. Quantitative Analysis of Business Process 2000. 9. 22. Yang, Young-Chul

2. Contents • Y. H. Cho, J. K. Kim and S. H. Kim, “Role-based approach to business process simulation modeling and analysis”, Computers & Industrial Engineering, Vol. 35, pp. 343-346, (1998) • K. T. Phalp, “The CAP framework for business process modelling”, Information and Software Technology, Vol. 40, pp. 731-744, (1998) • P. Volkner and B. Werners, “Theory and Methodology : A decision support system for business process planning”, European Journal of Operational Research, Vol. 125, pp. 633-647, (2000)

3. Role-based approach to business process simulation modeling and analysis Y. H. Cho*, J. K. Kim** and S. H. Kim* * Graduate School of Mgmt, KAIST ** Dept. of Mgmt Information Systems

4. Introduction • Simulation tools • Benefits • Analyze an as-is model of the existing process • Assess the potential value and feasibility of to-be models • Limitations • Restricted to analyzing and redesign of the workflow only • Little attention is paid to the organization of people and their roles

5. Introduction • This paper suggests • Roles • Combinations of roles • Set of people and their accountabilities, and the interactions among them • Customer-supplier chains • Series of customer-supplier relationship that produces specific results as specific points in time • Object-oriented queuing model

6. Role-based Simulation Modeling • Role is dealt as an active and independent modeling unit • Business process is represented as the interaction among roles

7. Role & Activity – Role-based Simulation Modeling • Role • Activities • Messages (I/O) • States • Must have a job queue • Activity • An individual task of the role • Performed by multiple instance of the role

8. States of Each Role Instance – Role-based Simulation Modeling

9. Role-based Simulation Analysis • Set up a TO-BE model • Identify bottlenecks • Determine whether that is appropriate place for the bottleneck • Elevate the capacity of the bottlenecks

10. Role-based Simulation Analysis

11. The CAP framework for business process modelling K. T. Phalp Empirical S/W Eng. Research Group, Dept. of Computing, Bournemouth Univ. UK

12. CAP Framework

13. Capture - Example  : action  : action for cooperation  : concurrency  : alternate path — : interaction

14. Analysis • Requires a degree of rigour • Expert judgment and heuristics • Measurement • Ex ) Coupling factor CpF = (Total interactions in role X) (Total actions + Total interactions in X) • Formality • Enaction

15. CAP Applied to Industrial Process PWBS : ProcessWise WorkBench Standard

16. Process Oriented System Description (POSD) • POSD • Helps to alleviate a phenomenon known as “wire syndrome” • “wire syndrome” • Processing units could be decomposed into other processing units but where the number of connections would remain high

17. Theory and Methodology : A decision support system for business process planning P. Volkner and B. Werners Faculty of Economics and Business Administration, Ruhr-Univ. Bochum, Germany

18. Introduction • Business process • Process • A succession of changing states of a system • Business process • A sequence of states which result from the execution of activities in organizations to reach a certain objective • Organization – underlying system • System of activities – the basis for the design of a business process

19. Introduction • Flow • The basis of a business process • Considering a certain state of a business process, possible subsequent state of the business process can be determined. • Business operation • Sequence of states • Business transaction

20. Literature Review • Hess and Brecht (1996) • Modeling and graphical documentation • Existing and alternative sequences of tasks can be analyzed systematically and comprehensively • The basis for the analysis and evaluation of business process • Soliman (1998) • Process mapping on a cost-effective level • Only give a static view of the process

21. Literature Review • Davies (1997), Witte (1997), Wood (1993) • Advantage applying simulation • The possibilities for the quantitative analysis of alternative organizational measures with consideration of dynamic characteristics • The possibilities of a systematic generation of alternatives by modifications in identified weak points • The high flexibility in modeling as well as in adequate consideration of stochastic influences

22. Literature Review • Davies (1997), Witte (1997), Wood (1993) • Disadvantages • Often needs high expenditure for the creation of a simulation model • Depends on the simulation S/W used and its suitability for the considered range of application

23. Production vs. Business Process • Characteristics of production process • Not so much different sequences of activities • Less variations of the operating times of activities • A better measurability of handling duration • A smaller number of allocations of resources to different flows • A more constant performance of resources

24. Requirements • Structuring of the problem & Modeling of alternatives • Complex dependencies b/w the activities (Scheer, 1994) • “and”, “inclusive or”, and “exclusive or”, and combinations • Petri-net and event-driven process chains • Hierarchical modeling • Small number of types of elements • For understandability and comprehensibility • Methods • Simultaneous treatment of common resources • Should support “uncertain data” • Easy modification

25. Requirements • Execution of simulation & Following analysis • Without further interventions of users • Graphical animation • The validating and the understandability • Statistical data • The presentation of the results in tabular or graphic form

26. Literature Review • Claus (1997), Witte (1997) • Object-oriented approach • The activities executable by the unit • Priority rules • Used for the process control • Weak point • A detailed knowledge of the individual objects is required

27. Literature Review • Cho et al. (1998) • Role-based concept • Delfmann (1997), Reuter (1997), Grund and Jaehnig (1994) • Emphasize the possibility of a hierarchical model design when using petri-nets • Phalp (1998) • The system should assist in the three phases : • Capturing, Analyzing, and Presenting

28. Object-oriented Approach

29. Object-oriented Approach • Activity • The smallest unit of an element of the underlying flow • Execution of an activity is attached to qualifications • Working, checking, deciding, transporting • Can process at most one handling object at a time • “occupied” or “free”

30. Object-oriented Approach • Presumption • All requirements with respect to type, status and # of information and materials are regarded as fulfilled • Availability of free resources with sufficient qualification • Processing time is influenced by the qualification of the resources • If no resources are available, a handling object remains waiting in the buffer assigned to the activity • “rule” : the scheduling of the handling objects in the buffer

31. Object-oriented Approach Handling Object

32. Object-oriented Approach • Fuzzy sets theory • Not only stochastic but also linguistic uncertainty of the data which describe the objects is considered. • Business process의 특성에서 기인하는 문제점을 해결하기 위함.

33. Procedure for the Process Control – Object-oriented Approach • Procedure • To allocate free resources to handling objects and to activities that are to be executed • Necessary for the determination of transitions of states – by “rule”

34. Procedure for the Process Control – Object-oriented Approach • Premises • One resource per one handling object • The processing time of an activity is known • One activity executes one handling object at a time • Each resource can execute one activity at each point • The performance of each resource is constant outside from down-times • A resource down-time only occurs after the execution of an activity is completed • No limitation of capacity exists for the buffers • Unnecessary waiting periods do not exist • There are no cancellations • Handling objects of different business operations are independent • The processing sequence is variable

35. Procedure for the Process Control – Object-oriented Approach • Priority rules • Relates to one of the types of the objects resource, handling object and activity

36. Realization of the Modeling Concepts

37. My Questions • Strategic level 에서 가지는 Quantitative Analysis의 의미? • Common resource 에 대한 처리 or Role exchange에 대한 처리. • Domain Knowledge • I think it’s the core of duties of IE man. • ….

38. References • A. W. Sheer, “Business Process Engineering 2nd Edition”, Springer-Verlag, 1994 • F. Azadivar and G. Tompkins, “Simulation optimization with qualitative variables and structural model changes : A genetic algorithm approach”, European Journal of Operational Research, Vol. 113, pp. 169-182, 1999