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Transcript of Ibm Bpm for Dynamic Business Process
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IBM Business Process Management solutions
White paper
IBM Business Process Management suite for dynamic
business processes: a foundation for Lean Six Sigma.
Arthur Lampert
Jon Mc Namara
March 2009
http://www.ibm.com/ushttp://www.ibm.com/websphere -
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IBM Business Process Management suite for dynamic business processes: a foundation for Lean Six Sigma.
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Introduction
The concept of process improvement is not new history is littered with
visionaries who were driven to change established business practices by
extending the boundaries of conventional thinking. Lean Six Sigma is based
on the practical learning of organizations improving their processes for over
50 years.
Henry Ford: process pioneer
Henry Ford revolutionized the auto manufacturing industry, transforming the
construction of automobiles from predominantly small-scale, custom-made
production to large-scale, standardized production using production lines.
Such radical changes facilitated dramatic cost reductions, while at the same
time delivering great improvements in productivity.
Contents
2 Introduction
2 Henry Ford: process pioneer
3 Why business process re-engineering
failed
4 Lean Six Sigma: striving for
continuous process improvement
8 The three engines of Lean Six Sigma
8 Process improvement and waste
elimination
9 Process design and redesign
10 Process management
11 Five levels of process maturity
12 IBM BPM suite vision
13 Business events
14 Analytics
15 Rules
15 Service selection
16 Active content
16 Policies17 BPM from IBM delivers value across
your organization today
18 Supporting the DMAIC process with
the IBM BPM suite
19 Define
23 Measure
24 Analyze
25 Improve
26 Identify a solution
27 Control
28 Document the improvement
28 Keeping score29 Continuous improvement
30 Summary
31 For more information
Foundation for Lean Six Sigma
Just in Time (80s)(Kanbans, pull systems,
visual management)
Deming/Juran(80s)(14points,statisticalquality)
Ohno(60s/70s)
(ToyotaProductionSystem)
Lean Manufacturing (90s)(Machine that changed the world,
Lean Thinking, Value Stream Mapping)
Total Quality Management (80s)(SPC, Quality
Circles, Kaizen)
Motorola Six Sigma (80s)(Allied Signal)
GE (80s 90s)Six Sigma (applied method for growth and productivity)
Customer Partnering (GE Toolkit, QMI, Customer CAP)
Change Acceleration Process CAP (Change method and tools)
Process Improvement (NPI, supply chain, suppliers)
Best Practices (benchmarking, across and outside of GE, ending NIH)Work-out (Kaizen type, cross-functional teams, boundarylessness, values)
Strategy (No. 1 or No. 2 in each business, fix, close or sell)
(culture change/benchmarking,
Baldridge/EFQM, ISO 9000)
Kotter etc.Transforma-tion and
leadership
Intensit
y
ofchange
BPR (90s)(downsizing, to be
processes, process owners)
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However, it took much longer for such radical thinking to find its way
from the world of manufacturing to office-bound, paper-based processes.
Even then, the initial impact of information technology was focused on
eliminating many of the physical aspects of the process itself. For example,
some of the most common uses of computer technology are the retrieval
and presentation of information to support decision making. The use of
databases, document imaging and, later, enterprise content management
(ECM) helped to improve the overall efficiency of process workers by
freeing them from the physical constraints associated with storing bothstructured and unstructured information.
These benefits were achieved by minimizing the time taken to retrieve,
analyze and assimilate the information pertinent to a specific task while
increasing the accessibility of the information allowing more tasks to be done
in parallel. The ability to track what stage of completion tasks have reached
and to audit who did what effort when on a task is of significant value.
Why business process re-engineering failed
The 1990s saw the rise of business process re-engineering (BPR), which triedto take badly designed processes and replace them with better ones. The
problem with this premise was the assumption that there were fundamental
flaws inherent in the process design and that once these were addressed, the
full potential associated with this re-engineered process would be realized. A
re-engineered process could be deployed and essentially forgotten with little
or no thought given to the ongoing maintenance of process performance.
Another flaw of BPR is the fanatical focus on step change, ignoring the
process of continuous improvement, thus forgoing its benefits, lesser orga-
nizational impact and relative ease of implementation. Toyota Motor has
demonstrated the transformational qualities of continuous improvement
through the creation of a learning organization that constantly experiments
with the current operational model.
The ability to track what stage of completion
tasks have reached and to audit who did what
effort when on a task is of significant value
Highlights
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Other reasons and issues include:
Inability to break down functional silos
Limited end-to-end process view and business process architecture
Limited or no process ownership
Process baseline performance not understood, re-engineering often working on symptoms
vs. root cause
Process metrics and targets not established, typically only results metrics/targets
Limited alignment to the organizations strategy
With the dramatic acceleration of the business marketplace, it is no longer
sufficient to view process improvement as one finite event in the lifespan
of a business process. Practitioners now understand process improvement is
essentially a continuous activity.
Lean Six Sigma: striving for continuous process improvement
Six Sigma Methods
Lean Methods
Increase effectiveness
Reduce variation
Eliminate defects
The customer isthe driving force
behindimprovement
efforts
Increaseefficiency
Simplify workflow
Eliminate waste
Process efficiency is thedriving force behindimprovement efforts
Product or service outputs
A BCritical customerrequirement
Product or service output
As-is flow To-be flow
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Lean Six Sigma fuses the key elements so that the combined method is actu-
ally complementary. Lean Six Sigma drives out waste and nonvalue-add
activities. Lean doesnt focus as much on what the customer wants, which
changes for each customer and over time; instead, its good at getting rid
of what nearly all customers do not want. Six Sigma is focused on what the
customers want and eliminates the variability in operations that dissatisfy
customers.
The increasing need for continual improvement of businesses, in response toa variety of pressures such as the rapidly changing business landscape and the
desire to reduce operational expenses, has resulted in an upsurge of interest
in a variety of quality initiatives such as ISO 9000, Total Quality Management
(TQM) and Lean Six Sigma.
Six Sigma originated in the late 1970s from efforts to improve the processes at
Motorolas Government Electronics Group (GEG). The application of already
well-established statistical analysis techniques to minimize procedural errors
proved extremely successful, eventually being adopted by organizations such
as GE, Honeywell and Fleet Boston.
The term Six Sigma comes from a statistical term (Sigma or ) used to
describe the variation that occurs in all processes and the products they
create; this spread of a certain quality characteristic (length, duration) is
known as standard deviation. Sigma measures how much a process varies
from
customer requirements. Sigma values can also be expressed as the number
of defects per million opportunities for a defect to occur.
Sigma Value Defects Per Million Opportunities (DPMO)
1 690,000
2 308,000
3 66,800
4 6,210
5 230
6 3.4
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It is important to note that a Six Sigma process does not mean that
99.99966% of all units produced are perfect this figure refers to the
frequency with which defects will occur per million opportunities,
remembering that any given unit may have multiple defects.
Lean is another process improvement methodology often used in conjunction
with Six Sigma. Lean tools are designed to identify where wasteful activities
occur in existing processes. By modeling the as-is (current state) process,
analysts can visualize and identify pain points and take corrective action.Complete understanding of the current process is fundamental to creating
a to be (future state) process that reduces cycle time by eliminating
wasteful activities.
Lean methods originated with the Toyota Production System (TPS), which
enabled the automaker to achieve just-in-time deliveries from its suppliers.
By reducing waste and cycle time throughout the value stream, inventories
were significantly reduced and production was aligned to customer demand.
Six Sigma and Lean methodologies have strengths that have been combined
by many process improvement practitioners into Lean Six Sigma.
Business Process Management (BPM) is a discipline to build, manage and
govern an organizations cross-functional, core business processes which can
include integration of processes across different applications. IBM extended
BPM capabilities with tooling to address broader enterprise BPM require-
ments enabled by service oriented architecture (SOA), including modeling,
simulation, business activity monitoring and human interaction.
This white paper presents the IBM BPM suite which consists of two foun-
dational offerings one targeted for dynamic processes emphasizing process
flexibility and integration, and the other for active content emphasizing content
interaction with processes and compliance. In this paper, we focus on the
IBM BPM suite foundational offering for dynamic processes and the associ-
ated tooling that can support the three engines of Lean Six Sigma.
BPM is a discipline to build, manage and
govern an organizations cross-functional,
core business processes which can include
integration of processes across different
applications
Highlights
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The three engines of Lean Six Sigma
There are three basic parts to a successful Lean Six Sigma program:
Process improvement (DMAIC) and waste elimination (Lean)
Process design (DMEDI)
Process management
Process improvement and waste elimination
Process improvement and waste elimination are all about identifying andremoving the root causes of variation from the execution of a process. In the
context of Lean Six Sigma, this requires the identification (and subsequent
elimination) of the causes of unwanted defects or errors produced by the
process. This elimination of unwanted variation improves consistency of
delivery and service to the customer with fewer defects.
At the heart of Lean Six Sigma is the requirement that process improvement
is a continuous process defined by the multiphase DMAIC cycle (see below),
where DMAIC stands for Define, Measure, Analyze, Improve and Control.
1. Define
3. Analyze
2. Measure
4. Improve
5. Control
The DMAIC Process Improvement Cycle
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Process design and redesign
The DMAIC cycle can be implemented in a variety of business scenarios.
However, there are circumstances when a different approach is needed:
When it is determined that the required level of performance is not attainable by improving the
current process
When an entirely new process is required to address a newly identified opportunity, product
or service
As the focus of designing entirely new processes is more on innovation and
less bound by the current process, the DMAIC principle is often adapted to
emphasize ways to identify innovative, effective ways to get work done. This
is sometimes referred to as the DMEDI cycle:
Define customer requirements and goals for the process/product/service
Measure and match performance to customer requirements
Explore and assess process/product/service design
Develop new processes/products/services
Implement the improvementsand maintain performanceSome organizations still use DMAIC and merely adjust the activities in each
phase of the cycle accordingly.
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Process management
The concepts of Lean Six Sigma apply not only to specific process improve-
ment initiatives but also to the management of processes across large
organizations and government agencies. This application of Lean and Six
Sigma principles is the most radical as it often requires shifts in both culture
and management throughout the organization in parallel with the Lean Six
Sigma initiative in order for the benefits to be fully realized.
Business process management is the continuous improvement managementsystem that enables an enterprise to sustain and accelerate the gains achieved
through implementation of strategic Lean Six Sigma. Process management
begins with process owners and process teams.
The BPM method provides a structured process for developing an organiza-
tions cross-functional, customer-focused, end-to-end core business processes
that achieves strategic business objectives, integrates verticals, optimizes core
work and creates a framework for continuous improvement.
BPM implementation can be broken down into the following key steps:
Identify top-priority, critical processes
Validate customer requirements
Model the process
Develop process measures
Monitor the process for:
Stability (consistent performance)
Capability (meeting customer needs)
Flexibility (for new requirements)
Manage and improve the process
Business process management is the
continuous improvement management
system that enables an enterprise to sustain
and accelerate the gains achieved through
implementation of strategic Lean Six Sigma
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Five levels of process maturity
An organization that is at a higher level of process maturity is able to realize
higher process efficiencies, fewer defects, increased consistency of product or
service delivery and, ultimately, higher levels of customer satisfaction.
BPM ensures that end-to-end business processes are aligned with strategic busi-
ness objectives and metrics, that organizations supporting end-to-end business
processes are aligned with process performance objectives and that end-to-end
business processes are supported by the right technologies and data.
BPM also ensures that business processes are governed by a governance
framework focused on strategically aligning business processes throughout the
process life cycle:
Change management
Execution and performance management
Resource management
Level Focus Process Areas
5Optimizing
Continuous process
improvement,
Realize Six Sigma
DPMO (defects per
million opportunities)
Technology innovation and causal analysis and
resolution
4Quantitativelymanaged
Quantitative manage-
ment data
Process performance and quantitative project
management
3Defined
Process standardiza-
tion organization
Process focus, process definition, training, integrated
project management, risk management, decision
analysis, requirements development, technical solu-
tions, product integration, verification, validation
2Repeatable
Basic project
management
Requirements management, project planning, project
monitoring and control, supplier agreement manage-
ment, measurement and analysis, process/product
quality assurance, configuration management
1Initial
Unpredictable
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An example of a business process management system. A business process management approach
ensures ongoing process ownership and improvement.
IBM BPM suite vision
IBM WebSphere Dynamic Process Edition is a comprehensive software
offering designed to allow customers requiring enterprise-wide integration
capabilities and SOA to optimize their business processes with dynamic BPM
capabilities. IBM BPM empowers customers to know when to effect a changeand when to see a variation as a normal occurrence; this profound knowl-
edge of their own operations allows them to embrace change when it is truly
needed, collaborate to make it happen and continuously optimize their busi-
ness in a continual cycle of organizational learning. This delivers significant
value by aligning an organization to their business process objectives and
their changing business needs.
The IBM vision for BPM is to provide tooling that enables customers to
create more agile and dynamic processes today, which serve as the foundation
for greater innovation in the future. BPM is a catalyst for alignment between
business architecture and IT infrastructure, and this alignment is sufficiently
flexible to adapt to changing business needs. Automated tooling eliminates
the tedium of making repetitive process model changes, freeing time for
analysis and testing of what if scenarios to meet the organizations goals.
Enterprise-wideprocess management
Process andcustomer
scorecards
Process andcustomer
scorecards
Process andcustomer
scorecards
Process andcustomer
scorecards
Process andcustomer
scorecards
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The IBM BPM suite is a comprehensive set of role-based, SOA-enabled
product capabilities that provide customers with the ability to continuously
optimize processes and adapt them rapidly to changing needs. The IBM BPM
suite contains key functionality to control and manage business processes
across their life cycle, and it emphasizes business user involvement and
collaboration across multiple roles within your organization. The IBM BPM
suite combines product capabilities from across IBM Software Group into
an integrated offering that matches the way customers purchase, implement
and upgrade BPM software while protecting and reusing their existingIT investments.
The IBM BPM suite is unique in its ability to support the demanding needs
of agile businesses today. Key enablers that make an organizations processes
more flexible and dynamic are called points of agility. When unmet
business needs trigger the launching of projects of improvement, the Lean
Six Sigma methodology responds appropriately to implement these points of
agility. Organizations have these points of agility today, but unfortunately, they
are not so agile. Their points of agility may be manual processes, inefficient
human tasks, or may be ad hoc and undocumented. The IBM BPM suiteis unique in its ability to make each of these points more agile, responsive,
reliable, and scalable through application of the suites product capabilities
combined with professional services and related BPM best practices.
The IBM BPM suites six agility enablers are business events, analytics, rules,
service selection, active content and policies.
Business events
DEFINITION: Business events occurring from multiple sources (internal
or external to the organization) which are correlated into actionable event
patterns which may initially appear random and nonsequenced. As we will
see, this functionality is integral to the Measure phase of the Lean Six
Sigma process.
The IBM BPM suite is a comprehensive set of
role-based, SOA-enabled product capabilities
that provide customers with the ability to
continuously optimize processes and adapt
them rapidly to changing needs
Highlights
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Important business events occur all the time. Often, the speed with which you
respond to that event can make a big difference in capitalizing on an opportu-
nity, or minimizing your risk exposure.
Take the example of a consumers credit card being used to make purchases
in two parts of the world simultaneously after it has been stolen. Triggering
an immediate fraud alert when this event occurs can save time and money,
and prevent customer service nightmares. Events are the moments of truth
when customers interact with a business process and obtain satisfaction or are
the victims of operations that do not meet their requirements. This is studied
in the Define phase of Lean Six Sigma.
Analytics
DEFINITION: The analysis of information from processes, applications,
events, historical data and other sources to support decision making and
improve business performance.
Processes respond faster to changing
needs when supported by agility enablers.
Serviceselection
The IBM BPM Suite is unique in enablingall six agility enablers.
Active
content
Business
eventsPolicies
Analytics Rules
Business ProcessManagement
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Analytics are important to optimize your processes and improve your business
performance. For example, mortgage lenders are very focused on preventing
future mortgage defaults. In addition to simple metrics like consumer credit
score, deeper analysis of mortgage delinquencies and default trends and
patterns can help lenders change origination processes to prevent bad lending
practices and loans in the first place. These are used to support the Analyze
phase of the Lean Six Sigma process.
RulesDEFINITION: Combinations of procedural logic (if A, then B until Z) typi-
cally applied to general-purpose decisions, assignments or routing needs.
We rely on business rules behind the scenes to make decisions all the time.
One example occurs when a patient visits a doctors office at the point of care.
Rules determine the patients benefits and eligibility for a given treatment,
determines the amount owed and any settlement calculations. Rules can be
simple, or deep and complex, but they serve an important role in making
our processes more efficient and reliable. These rules are the implementation
of business processes defined during the Improve or Develop phases ofLean Six Sigma.
Service selection
DEFINITION: Selection of the most appropriate service asset in an SOA for a
given service request.
Service selection means picking the optimal service available from your IT
environment for a given need. Consider a natural disaster, and a P&C insurer
faced with thousands of policyholder claims submitted at the same time. The
insurer needs to allocate its resources wisely, and may send some auto policy
calls to an outsourced company to handle surplus claims traffic, and give
priority treatment for higher-value home policies to their internal call centers.
These detailed procedures are a refinement of business processes defined
during the Improve or Develop stages of Lean Six Sigma.
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Active content
DEFINITION: Content that is logically filed, automatically changed or
personalized, initiates corresponding processes, and requests additional
content as needed.
Active content refers to linking documents and content dynamically to a
process, such that changes in a document can trigger something to happen
automatically in the process, and executing a process can automatically find
and attach supporting documents as needed.
An example in the shipping and logistics business includes shipping mani-
fests, which are constantly updated as pickups and deliveries are made,
in turn triggering invoices, receipts and other processes as the manifest is
changed. Active content makes human interaction with processes more
efficient, and allows the processes to be more flexible and responsive.
The performance of processes that continuously update operational data
is governed by the rules set forth in the Control or Implement phases of
Lean Six Sigma.
Policies
DEFINITION: Combinations of business-level, declarative statements used to
dynamically assemble business functionality into business processes.
Policies manage the way products or services are assembled, personalized and
delivered. For example, telecom services providers frequently create service
bundles or promotions consisting of call minutes, text messaging, multimedia
content and other items, which are personalized and targeted for a specific
demographic group like teens and families. Policies allow business users to
rapidly and easily modify core processes like service ordering and billing,
so that they can be rapidly personalized in a way that is less disruptive, and
doesnt require significant lead times and IT resources. Policies are used to
effect the Define phase of the Lean Six Sigma process.
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BPM from IBM delivers value across your organization today
Across the organization there are many people and many different roles
some with a business perspective, others with an IT perspective. The IBM
approach is to bring them together through BPM.
BPM from IBM provides role-based capabilities that deliver value acrossthe organization, and help align each roles focus around business process
objectives and the changing needs of your business. This includes providing
compelling value to both line of business (LOB) and IT leaders, with a range
of benefits specific to both. For example:
Business leader wants full process visibility, compliance and governance
Process owner needs to be empowered to make their own process changes
Business analyst wants to simulate process results without deploying
Business user wants to become more productive and responsive to customer needs
IT architect needs to leverage and extend existing assets IT leader has to deliver faster time to value and reduce costs
IT developer wants to collaborate more easily with process stakeholders
Comprehensive, role-based capabilities that deliver value across the organization
Business ITBusiness user
Businessleader
Processowner
ITdeveloper
ITleader
Businessanalyst
ITarchitect
IBM BPM Suite
BPM from IBM provides role-based capabilities
that deliver value across the organization, and
help align each roles focus around business
process objectives and the changing needs of
your business
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In addition to receiving value from BPM, IBM believes that all types of
process participants, from business leaders to IT architects, can collaborate in
managing and optimizing their processes. The goal of BPM is not restricted
to simply building and running a good process, but also to create processes
designed for continuous optimization, supported by a continuous feedback
loop, and the tools and capabilities to collaborate across multiple stakeholders
within your organization. With BPM from IBM, each role contributes and
gives back to the process so that it can be continuously improved and opti-
mized further.
We will now explore each phase of the Six Sigma process and demonstrate
how the IBM BPM suite supports its implementation.
Supporting the DMAIC process with the IBM BPM suite
The IBM BPM suite of tools is instrumental in progressing the BPM initiative
through the DMAIC phases of Lean Six Sigma.
IBM BPM suite is marketed as the WebSphere Dynamic Process Edition,
which includes three products:
IBM WebSphere Business Modeler to define, model and simulate
Delivers the IBM BPM tooling for business analysts
Integrates with IBM Rational Asset Manager as an asset repository to manage BPM assets at
design time
Includes additional capabilities for business analysts to create human workflows
IBM WebSphere Business Services Fabric to rapidly deploy and change
More functionality for business users with simplified tools, faster return on investment
(ROI) metrics
Enhanced integration with WebSphere Business Monitor and WebSphere Business Modeler
Platform enhancements for business partners (ISV/Sis) including Global Business Services to
deliver asset-based solutions, software stack upgrades for WebSphere products, databases and
operating systems
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IBM WebSphere Business Monitor to monitor, predict and act
Increased access to information from wherever you are dashboards on mobile devices, such
as a BlackBerry, help business users stay abreast of real-time data for actionable insights from
wherever they are located
Extended reach view information from a broader range of process data sources on business
dashboards
Improved support for business users and business analysts ability to collaborate on dashboard
design to simplify development and deployment of monitoring solutions
Accelerated time to value ability to graphically debug and manage monitoring models tospeed development of monitoring solutions
Define
As part of the Define phase we can use WebSphere Business Modeler
to define the business process, business requirements and the business
performance criteria for the process. WebSphere Business Modeler provides
a comprehensive process definition environment, which allows the author
to initiate a high-level process map and steadily include deeper levels of
complexity as the definition phase progresses.
Processpayments
check returns
Processpayments
Is itwithGRN?
50% Yes
50% No
50% No
Is itutilities?
Receive andpost utilities_elect_ water
Other invoiceswithout
GRN
50% Yes
50% No
Is itwet
stock?
Receive andpost wet
stock invoice
Receive andpost dry
stock invoice
Hascheck beenreturned?
50% Yes
50% No
50% Yes
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WebSphere Business Modeler serves as a repository for business processes
and subprocesses, activities, services, resources and key performance indica-
tors (KPIs). The WebSphere Business Modeler repository facilitates reuse,
consistency and saves time across improvement and design teams. WebSphere
Business Modeler provides sophisticated analysis and reporting facilities,
which supports goal setting around process capabilities, cycle times, cost,
throughput and revenue.
The business model can be quickly constructed showing a high-level view ofyour business process. This high-level view can be made up of subprocesses
representing specific functions of your business.
Each of these subprocesses can be drilled down to show the individual
activities that make up the specific function, where resources required to
execute the activity are defined and added.
As part of the Define phase, it is important to document the KPI, which
demonstrate the health of the process when matched against business
performance criteria. WebSphere Business Modeler provides the functionalityto document these KPIs and, in doing so, supports the business user with a
function to determine how well the process performs against business service
level agreements (SLAs).
The KPI functionality of WebSphere Business Modeler is comprehensive and
intuitive. For example, WebSphere Business Modeler can support the business
user in specifying acceptable time ranges for key business activities. The busi-
ness user can quickly define an alert which can be used to perform an action
such as sending an e-mail, should the duration approach or exceed the SLA.
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On the screenshot below, we can see an example of a KPI defined within
WebSphere Business Modeler. Shown is the KPI description field, which
allows the user to document how the KPI relates to the SLA. Also, we can
clearly see the specifics of the KPI, including the optimal target duration for
the business activity.
The KPI description allows the user to document
how the KPI relates to the SLA.
Here the target value is set for the process. The
expected duration is 3 days.
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In the following screen capture we see how the business user enriches the
KPI with further business-relevant information on the health of the process.
We see how the user can also specify a range of durations, showing the overall
health of the business process. As well as specifying the business as usual
expected processing time of three days, we can also set ranges of performance.
For example, if the business process completed in two days rather than three,
we might consider this an excellent processing time; between two and four
days would be considered the norm and rated as acceptable; and over four
days would be considered exceptionally long and possibly dangerous to theeffectiveness of the process.
The business user can specify a range of
durations, showing the overall health of the
business process.
Ranges can show the business process
exceeding, meeting and falling short of
performance targets.
The user can also specify alerts which are
actions automatically triggered on the condition
that an event has occurred, in this case when a
duration has been exceeded.
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Measure
When implementing a WebSphere-focused BPM solution, the measurement of
process performance is provided in real time by WebSphere Business Monitor.
Measurement of the business process is critical to the success of any process
improvement initiative. Six Sigmabased processes measure performance
continuously and in many cases, in real time. By providing this continuous,
real-time measurement, WebSphere Business Monitor is able to support
Six Sigmafocused BPM.
While WebSphere Business Monitor provides detailed real-time information
on the performance of the business process, it also provides the functionality
to allow the WebSphere Business Modeler process model to be updated with
the process performance data it has monitored. This is an extremely useful
function as it allows further analysis to be undertaken in WebSphere Business
Modeler, based on real-life data rather than best-guess assumptions.
WebSphere Business Modeler provides the business process model artifacts which include the
business KPIs. These are imported into WebSphere Business Monitor.
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Analyze
In this phase, we utilize the capabilities of WebSphere Business Modeler to
analyze the business process in order to identify salient points as cycle time,
rework, downtime and other activities that potentially decrease the process
effectiveness. The simulation function of WebSphere Business Modeler
supports the business user in creating and running alternative scenarios to
determine how the business process will perform in a variety of conditions.
More than this, the business user can also modify the probability distribution
to determine if the process can be made more effective by favoring someprocess paths over others. These scenarios can be stored for later use in
preparing for the Improvement phase of the Six Sigma methodology.
As part of the Six Sigma analysis it is likely that a number of different
scenarios will be run in order to both test the scenarios under various
conditions and also ensure all business-relevant permutations of the process
have been covered and analyzed.
As part of the Analyze phase, classifiers provide an important function by
enabling the process of decision making. This is achieved by allowing the
business process to be broken down into business-pertinent categories.
WebSphere Business Modeler provides the
functionality to compare simulations, where we
need to see the benefit of the to be changes to
the process.
By examining these real-time costs in the model,
the user can perform analysis based on real
information in order to formulate progression
toward the to be model.
Using WebSphere Business Modelers analytic
capabilities, some paths are shown to be more
effective than others.
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Classifiers can also be used to provide clarity when using simulations in the
Analyze phase. This functionality can be incorporated into the simulation
analysis, to segment results into the categories most relevant to the businessprocess. For example, in the diagram on the next page we can see that the
simulation result has been broken down into classifiers such as exception
path processing, labor type and quality control. This shows quite clearly how
each section has performed in relation to the others.
Improve
Once these scenarios have been established and analyzed, WebSphere
Business Modeler can then be used to compare separate scenarios to deter-
mine the most effective solution.
These classifiers are set up for Lean or Lean Sigma and are used to highlight the sources of waste in
a process. These are the seven sources of waste used by Toyota.
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Identify a solution
The selection of a solution should be based upon quantitative and qualitative
measurement of all relevant alternate scenarios. WebSphere Business Modeler
provides the functionality to compare the simulation results of all analyzed
alternative solutions. This means that not only can the competing solutions be
quantitatively assessed for their relative effectiveness, but also as the simula-
tions in the Analyze phase have been run on live data, the chosen solution
will be sure to improve performance rather than degrade it.
In the screenshot below we can see how WebSphere Business Modeler can
compare two separate alternatives to determine which is the most effective.
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Once the most effective solution has been selected, the business user can
then proceed to firming up the to be solution. At this point, using the
WebSphere Business Modeler simulation capability, the user should be in
a position to be able to redistribute resources to ensure they are not being
under or overutilized.
A major part of the Improvement phase is the ability to effectively collate
and utilize the experience of the subject matter experts. WebSphere software
provides the functionality to do this, by providing an effective meansof disseminating the process performance information.
Control
Once the process has been deployed into the production environment, it is
important to maintain control of the process, in order to facilitate incremental
and continuous improvement. In order to do this it is necessary to consider
the following salient points.
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Document the improvement
One aspect of Control, the importance of which is often underestimated, is
the documentation of the improved process. This helps us to quickly identify
process changes and the reasons behind the changes. WebSphere Business
Modeler provides ample scope for clearly documenting the process. This can
be done in a clear, visual manner by attaching post-it notetype comments
directly on the process face itself, or by attaching documentation to at either
the activity or the process level. Simulation results can also be stored, as to
provide the factual reasons behind the selection of a particular solution.
Keeping score
Using the functionality of WebSphere Business Monitor, the business user
has access to an array of real-time, operational visibility for the performance
of the business process. Dashboards provide a clear and concise view of
the process running in production. Also, based upon the KPIs generated in
WebSphere Business Modeler, the user can also see how the process performs
in relation to any SLAs the process is expected to fulfill. Should the process
performance appear to be dipping to a level where SLAs are in danger of not
being met, WebSphere Business Monitor provides the ability to automaticallygenerate an alert, which can be sent via e-mail to all interested parties.
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Continuous improvement
While the business process is running in production, executing real-life
requests and fulfilling SLAs, WebSphere Business Monitor is tracking the
information on how the process is being executed. In this way, the busi-
ness user is able to continually gather data not only on how well the process
is performing, but is able to detect changes in the environment in which
the process operates. Shifts in trends may well lead to the business process
being executed differently, resulting in resources being under or overutilized.
As WebSphere Business Monitor is able to pass this information back toWebSphere Business Modeler which can then manipulate this business-
driven data in the form of simulations the business process will always be
able to adapt in a timely manner to changes in its environment and the
market in which it operates.
The ability to understand process baseline performance with real-time
measures is a critical element to a robust business process management
system (BPMS) and represents a fundamental shift in how most business
processes are managed today.
With the ability to gather real-time data on critical process performance, a
logical next step is to establish multiyear stretch performance targets for the
critical business processes. The BPMS now provides the ability to conduct an
effective gap analysis between current-state and future-state process perfor-
mance. The gap analyses are used to create an effective project pipeline
targeting continuous process improvements to close the gap in perfor-
mance. It also ensures that you are maintaining the gains from the process
improvements.
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Finally, achieving process ownership with performance accountability of
the end-to-end critical business process, tracking the improvement projects
and value realization of the process improvements themselves enables both
culture change and leadership commitment to the organizations continuous
process improvement journey.
Summary
IBM WebSphere software provides a closed-loop environment for process
improvement, accelerating the speed with which processes can be analyzedand continuously improved. We have seen how at every stage of the DMAIC
Six Sigma analysis, IBM BPM tools can be used to progress the effective-
ness of the business process, ensuring that it is always able to adapt to the
changing circumstances of the market in which it operates.
The IBM BPM suites WebSphere Dynamic Process Edition foundational
offering supports process optimization across heterogeneous, dynamic,
transaction-rich environments, from departmental projects to enterprise-
wide, integration-intensive, value-chain processes. Powered by SOA, this
foundational offering delivers visibility and choreography across multipledivisions, departments or applications, including those that may involve
higher frequencies of change. Products for this foundational offering include
IBM WebSphere Business Modeler, IBM WebSphere Business Services
Fabric (which includes IBM WebSphere Process Server and IBM WebSphere
Integration Developer) and IBM WebSphere Business Monitor.
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The IBM BPM suites FileNet Active Content Edition foundational offering
supports process optimization where content is core to processes or inte-
grated compliance requirements exist. This foundational offering is the best
for processes that require the content object to be managed as the item of
work utilizing content repository services (document management, versioning,
imaging and more) expected in a world-class enterprise content management
system. Products for this foundational offering include IBM FileNet Business
Process Manager, IBM FileNet Business Activity Monitor, IBM FileNet eForms
and IBM FileNet Business Process Framework.
For more information
To learn more about the WebSphere Dynamic Process Edition, contact
your IBM representative or IBM Business Partner, or visit ibm.com/
software/innovate
http://www.ibm.com/software/innovatehttp://www.ibm.com/software/innovatehttp://www.ibm.com/software/innovatehttp://www.ibm.com/software/innovatehttp://www.ibm.com/software/innovate -
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Copyright IBM Corporation 2009
IBM Corporation
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Produced in the United States of America
March 2009
All Rights Reserved
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