BPM and ERP
-
Upload
rachel-oommen -
Category
Documents
-
view
51 -
download
2
Transcript of BPM and ERP
BUSINESS PROCESS MODELING AND ITS IMPORTANCE IN ERP
IMPLEMENTATION
ENTERPRISE RESOURCE PLANING
• Software system that integrates core business
areas such as manufacturing, distribution,
financial and human resources.
• ERP is a software architecture that facilitates
the flow of information among the different
functions within an enterprise and also sharing
across organizational units and geographical
locations.
ERP SYSTEMS - EVOLUTION
ADVANTAGES OF ERP
• Personnel reduction
• Productivity improvements
• Order management improvements
• Improved planning
• Procurement cost reduction
• Cash management improvements
• Revenue profit increase
ERP IMPLEMENTATION
• Strategic planning
• Assign a project team.
• Examine current business processes and information
flow.
• Set objectives.
• Develop a project plan.
ERP IMPLEMENTATION
• Procedure review
• Review software capabilities.
• Identify manual processes.
• Develop standard operating procedures
ERP IMPLEMENTATION
• . Data collection & clean-up
• Convert data.
• Collect new data.
• Review all data input.
• Clean-up data.
ERP IMPLEMENTATION
• Training and testing
• Pre-test the database.
• Verify testing.
• Train the Trainer.
• Perform final testing.
ERP IMPLEMENTATION
• Go live and evaluation
• Develop a final Go-Live Checklist.
• Evaluate the solution.
CHALLENGES OF ERP IMPLEMENTATION
• The lack of alignment between the
organization strategy, structure, and
processes
• Improper project design
• Lack of support from top level management
• Unrealistic goals and targets
• Poor communication
CHALLENGES OF ERP IMPLEMENTATION
• Incompatibility of various application
• Inadequate training and support
• Lack of in house skills and the chosen ERP
application
BUSINESS PROCESS
• Collection of related, structured activities
or tasks that produce a specific service or for
a particular customer or customers.
Three main types of business processes:
• Management processes
• Operational processes.
• Supporting processes
PROCESS MODELING
• Process model: any abstract representation
of a process
• Process: modeling tools provide a way to
describe a business process so that all
participants can understand the process
PROCESS MODELING
• Advantages of process models
• Graphical representations are usually easier to
understand than written descriptions
• Provide a good starting point for analyzing a
process
• Participants can design and implement improvements
• Document the business process
• Easier to train employees to support the business process
BUSINESS PROCESS MODEL
• Diagram representing a sequence of
activities
• Shows events, actions and links or
connection points, in the sequence from end
to end
• Final output is improvement in the way that
the business process works
BUSINESS PROCESS MODEL
• Two different types of Business Process
Models:
• the 'as is' or baseline model (the current situation)
• the 'to be' model (the intended new situation) ,
BUSINESS PROCESS MODEL
• Developing the models follows the sequence:
• Identify the process and produce an 'as is' or baseline
model.
• Review, analyze and update the 'as is' process model.
• Design the 'to be' model.
• Test and implement the 'to be'.
• Continuously update and improve the new model.
BUSINESS PROCESS MODELING
• The aim of modeling is to illustrate a
complete process, enabling managers,
consultants and staff to improve the flow and
streamline the process.
BUSINESS PROCESS MODELING
• The outcomes of a business process modeling
project are:
• value for the customer
• reduced costs for the company, leading to increased
profits.
• increased competitive advantage,
• market growth
• better staff morale and retention.
BUSINESS PROCESS MODELING TOOLS
• Provide business users with the ability to model
their business processes, implement and
execute those models, and refine the models
based on as-executed data.
• Provide transparency into business processes,
as well as the centralization of corporate
business process models and execution
metrics
USE CASE DIAGRAMS
1. Use case diagrams created by Ivar
Jacobson, 1992.
• In software and systems engineering, a use
case is a list of steps, typically defining
interactions between a role and a system, to
achieve a goal
USE CASE DIAGRAMS
USE CASE DIAGRAMS
• Elements in an use case diagram
• Association
• Actor
• Use Case
• Include Relationships
ACTIVITY DIAGRAM
2. Activity diagrams
• Describe dynamic aspects of the system.
• Activity diagram is basically a flow chart to
represent the flow form one activity to
another activity.
• The activity can be described as an
operation of the system.
ACTIVITY DIAGRAM
ACTIVITY DIAGRAM
• The purposes can be described as:
• Draw the activity flow of a system.
• Describe the sequence from one activity to
another.
• Describe the parallel, branched and concurrent
flow of the system
ACTIVITY DIAGRAM
• Elements in an activity diagram:
• Activities
• Association
• Conditions
• Constraints
ACTIVITY DIAGRAM
• Uses of activity diagram:
• Modeling work flow by using activities.
• Modeling business requirements.
• High level understanding of the system's
functionalities.
• Investigate business requirements at a later
stage.
PROGRAMMING LANGUAGE TOOLS FOR BPM
1. Business Process Model and Notation
• Provides a graphical notation for specifying
business processes in a Business Process
Diagram (BPD), based on a flowcharting technique
• Provides a mapping between the graphics of the
notation and the underlying constructs of execution
languages
BUSINESS PROCESS MODEL AND NOTATION
PROGRAMMING LANGUAGE TOOLS FOR BPM
2. Business process execution language
• Standard executable language for specifying
actions within business processes with web
services
• Define business processes that interact with
external entities through web
service operations
PROGRAMMING LANGUAGE TOOLS FOR BPM
3. XML Process Definition Language
• Format standardized by the Workflow
Management Coalition to interchange
business process definitions between
different workflow products
XML PROCESS DEFINITION LANGUAGE
• Defines an XML schema for specifying the
declarative part of workflow / business
process.
• XPDL is designed to exchange the process
definition, both the graphics and the
semantics of a workflow business process
BUSINESS PROCESS MODELING AND ITS IMPORTANCE IN ERP IMPLEMENTATION
• Business process modeling (BPM) in systems
engineering and software engineering is the
activity of representing processes of an
enterprise, so that the current process may be
analyzed and improved in future
• Vehicle for analyzing and designing business
processes.
BUSINESS PROCESS MODELING AND ITS IMPORTANCE IN ERP IMPLEMENTATION
• Improve process efficiency and quality
• Reduces the risk of your technology, time
and resources investment decisions
REFERENCES•Gilbreth, Frank and Lillian (1924), The Quest of the One Best Way, Purdue University Frank and Lillian Gilbreth Papers.•Hammer, Michael and Champy, James (1993), Reengineering the Corporation: A Manifesto for Business Revolution, Harper Business.•Juran, J.M. (1988), Juran on Planning for Quality, Free Press, New York, NY.•Smith, Howard and Fingar, Peter (2003) Business Process Management, The Third Wave, MK Press.•Taylor, F.W. (1911) The Principles of Scientific Management. Harper & Brothers. New York and London.•Deming, W.E. (1982), Out of the Crisis, Cambridge University Press, Cambridge.M. Al-Mashari, “A Process Change-Oriented Model for ERP Application”, International Journal of Human–computer Interaction, 16, 1, pp. 39–55, 2003.•M. Arif, D. Kulonda D., J. Jones, and M. Proctor, “Enterprise information systems: technology first or process first?”, Business Process Management Journal, 11, 1, pp. 5-21, 2005.•R.F. Boykin, “Enterprise resource-planning software: a solution to the return material authorization problem”, Computers in Industry, 45, pp. 99-109, 2001.•I.J. Chen, “Planning for ERP systems: analysis and future trend”, Business Process Management Journal, 7, 5, pp. 374-86, 2001.•V.B. Gargeya B., and C. Brady, “Success and failure factors of adopting SAP in ERP system implementation”, Business Process Management Journal, 11, 5, pp. 501-516, 2005.•2005, Moscone Center West, San Francisco, California, 15-19 May 2005. •T. Gulledge, and G. Simon, “The evolution of SAP implementation environments: A case study from a complex public sector project”, Industrial Management & Data Systems, 105, 6, pp. 714-736, 2005.•J. Jaklič, V. Bosilj-Vukšić, and M. Indihar Štemberger, “Business process oriented tool selection model - a case study”. In: V. Hlupic (Ed.). Future challenges and current issues in business information, organisation and process management. Westminster: Business School, 2006, pp. 94-102. •Anonymous 2009 http://en.wikipedia.org/wiki/Business_process_modeling downloaded on 29.08.2010•Mojca Indihar Štemberger, Andrej Kovačič, University of Ljubljana, Faculty of Economics \[email protected], [email protected] downloaded on 28.03.2012•"ERP". http://www.erp.com/component/content/article/324-erp-archive/4407-erp.html. Downloaded on 29.03.2012 •Anderegg, Travis. "MRP/MRPII/ERP/ERM — Confusting Terms and Definitions for a Murkey Alphabet Soup". http://www.wlug.org.nz/EnterpriseSpeak. downloaded on 28.03.2012•Ramaswamy V K (2007-09-27). "Data Migration Strategy in ERP". http://research.ittoolbox.com/white-papers/backoffice/erp/data-migration-strategies-in-erp-4620/. Downloaded on30.03.2012 •Walsh, Katherine (January 2008). "The ERP Security Challenge". CSOonline. CXO Media Inc. http://www.csoonline.com/article/216940/The_ERP_Security_Challenge. downloaded on 30.03.2010•www.uhu.es/ijdar/10.4192/1577-8517-v1_3.pdf. Downloaded on31.03.2012
THANK YOU