1 business process management. 2 relationship an organization with customers

1

BUSINESS PROCESS BUSINESS PROCESS MANAGEMENTMANAGEMENT

2

RELATIONSHIP AN ORGANIZATION RELATIONSHIP AN ORGANIZATION WITH CUSTOMERSWITH CUSTOMERS

https://patriciagay.files.wordpress.com

3

THE QUALITY MANAGEMENT THE QUALITY MANAGEMENT SYSTEMSYSTEM

ISO 9001:2008ISO 9001:2008&&

ISO 9004:2009ISO 9004:2009

REQUIREMENTSREQUIREMENTShttps://blogs.akamai.com/https://blogs.akamai.com/

4

ISO 9001 and ISO 9004 are quality management system ISO 9001 and ISO 9004 are quality management system standards which have been designed to complement each other, standards which have been designed to complement each other, but can also be used independently.but can also be used independently.

ISO 9001ISO 9001 specifies requirements for a quality management specifies requirements for a quality management system that can be used for internal application by organizations, system that can be used for internal application by organizations, or for certification, or for contractual purposes. It focuses on the or for certification, or for contractual purposes. It focuses on the effectiveness of the quality management system in meeting effectiveness of the quality management system in meeting customer requirements.customer requirements.

ISO 9001 & ISO 9004ISO 9001 & ISO 9004

5

The revised edition of The revised edition of ISO 9004ISO 9004 will provide guidance to will provide guidance to management for achieving sustained success for any organization management for achieving sustained success for any organization in a complex, demanding, and ever changing, environment.in a complex, demanding, and ever changing, environment.

ISO 9004 provides a wider focus on quality management.ISO 9004 provides a wider focus on quality management.It addresses the needs and expectations of all interested parties It addresses the needs and expectations of all interested parties and their satisfaction, by the systematic and continual and their satisfaction, by the systematic and continual improvement of the organization's performance.improvement of the organization's performance. However, it is not However, it is not intended for certification, regulatory or contractual use.intended for certification, regulatory or contractual use.

RELATIONSHIP BETWEENRELATIONSHIP BETWEENISO 9001 & ISO 9004ISO 9001 & ISO 9004

6

MANAGING FOR THE SUSTAINED MANAGING FOR THE SUSTAINED SUCCESS OF AN ORGANIZATIONSUCCESS OF AN ORGANIZATION

To achieve To achieve sustained success sustained success of the organization,of the organization,top management should implement a quality management top management should implement a quality management approach.approach.

The organization's The organization's quality management system should be based quality management system should be based on the eight principleson the eight principles. These principles describe concepts that . These principles describe concepts that are the foundation of an effective quality management system.are the foundation of an effective quality management system.

To achieve sustained success, top management should apply To achieve sustained success, top management should apply these principles to the organization's quality management system.these principles to the organization's quality management system.

7

PRINCIPLE 1 PRINCIPLE 1 – – CUSTOMER FOCUSCUSTOMER FOCUS

Organizations depend on their customersOrganizations depend on their customers and therefore should and therefore should understand current and future customer needs, should meet understand current and future customer needs, should meet customer requirements and strive to exceed customer customer requirements and strive to exceed customer expectations.expectations.

Key benefitsKey benefits:: Increased revenue and market share obtained through flexible Increased revenue and market share obtained through flexible

and fast responses to market opportunitiesand fast responses to market opportunities Increased effectiveness in the useIncreased effectiveness in the use of the organization's of the organization's

resources to enhance customer satisfactionresources to enhance customer satisfaction Improved customer loyalty leading to repeat businessImproved customer loyalty leading to repeat business

8

PRINCIPLE 1 PRINCIPLE 1 – – CUSTOMER FOCUSCUSTOMER FOCUS

Results of the applyingResults of the applying:: Researching and understanding customer needs and Researching and understanding customer needs and

expectationsexpectations Ensuring that the objectives of the organization are linked to Ensuring that the objectives of the organization are linked to

customer needs and expectationscustomer needs and expectations Communicating customer needs and expectations throughout Communicating customer needs and expectations throughout

the organizationthe organization Measuring customer satisfaction and acting on the resultsMeasuring customer satisfaction and acting on the results Systematically managing customer relationshipsSystematically managing customer relationships Ensuring a balanced approach between satisfying customers Ensuring a balanced approach between satisfying customers

and other interested parties (such as owners, employees, and other interested parties (such as owners, employees, suppliers, financiers, local communities and society as a suppliers, financiers, local communities and society as a whole)whole)

9

PRINCIPLE 2 PRINCIPLE 2 – – LEADERSHIPLEADERSHIPLeaders establish unity of purpose and direction of the Leaders establish unity of purpose and direction of the organization. They should create and maintain the internal organization. They should create and maintain the internal environment in which people can become fully involved in environment in which people can become fully involved in achieving the organization's objectives.achieving the organization's objectives.

Key benefitsKey benefits:: People will understand and be motivated towards the People will understand and be motivated towards the

organization's goals and objectivesorganization's goals and objectives Activities are evaluated, aligned and implemented in a unified Activities are evaluated, aligned and implemented in a unified

wayway Miscommunication between levels of an organization will be Miscommunication between levels of an organization will be

minimizedminimized

10

Results of the applyingResults of the applying:: Considering the needs of all interested parties including Considering the needs of all interested parties including

customers, owners, employees, suppliers, financiers, local customers, owners, employees, suppliers, financiers, local communities and society as a wholecommunities and society as a whole

Establishing a clear vision of the organization's futureEstablishing a clear vision of the organization's future Setting challenging goals and targetsSetting challenging goals and targets Creating and sustaining shared values, fairness and ethical Creating and sustaining shared values, fairness and ethical

role models at all levels of the organizationrole models at all levels of the organization Establishing trust and eliminating fearEstablishing trust and eliminating fear Providing people with the required resources, training and Providing people with the required resources, training and

freedom to act with responsibility and accountabilityfreedom to act with responsibility and accountability Inspiring, encouraging and recognizing people's contributionsInspiring, encouraging and recognizing people's contributions

PRINCIPLE 2 PRINCIPLE 2 – – LEADERSHIPLEADERSHIP

11

PRINCIPLE 3 PRINCIPLE 3 ––INVOLVEMENT OF PEOPLEINVOLVEMENT OF PEOPLE

People at all levels are the essence of an organization and their People at all levels are the essence of an organization and their full involvement enables their abilities to be used for the full involvement enables their abilities to be used for the organization's benefit.organization's benefit.

Key benefitsKey benefits:: Motivated, committed and involved people within the Motivated, committed and involved people within the

organizationorganization Innovation and creativity in furthering the organization's Innovation and creativity in furthering the organization's

objectivesobjectives People being accountable for their own performancePeople being accountable for their own performance People eager to participate in and contribute to continual People eager to participate in and contribute to continual

improvementimprovement

12

Results of the applyingResults of the applying:: People understanding the importancePeople understanding the importance of their contribution and of their contribution and

role in the organizationrole in the organization People identifying constraints to their performancePeople identifying constraints to their performance People accepting ownership of problems and their People accepting ownership of problems and their

responsibility for solving themresponsibility for solving them People evaluating their performance against their personal People evaluating their performance against their personal

goals and objectivesgoals and objectives People actively seeking opportunities to enhance their People actively seeking opportunities to enhance their

competence, knowledge and experiencecompetence, knowledge and experience People freely sharing knowledge and experiencePeople freely sharing knowledge and experience People openly discussing problems and issuesPeople openly discussing problems and issues

PRINCIPLE 3 PRINCIPLE 3 ––INVOLVEMENT OF PEOPLEINVOLVEMENT OF PEOPLE

13

PRINCIPLE 4 PRINCIPLE 4 ––PROCESS APPROACHPROCESS APPROACH

A desired result is achieved more efficiently when activities and A desired result is achieved more efficiently when activities and related resources are managed as a process.related resources are managed as a process.

Key benefitsKey benefits:: Lower costs and shorter cycle times through effective use of Lower costs and shorter cycle times through effective use of

resourcesresources Improved, consistent and predictable resultsImproved, consistent and predictable results Focused and prioritized improvement opportunitiesFocused and prioritized improvement opportunities

14

Results of the applyingResults of the applying:: Systematically defining the activities necessary to obtain a Systematically defining the activities necessary to obtain a

desired resultdesired result Establishing clear responsibility and accountability for Establishing clear responsibility and accountability for

managing key activitiesmanaging key activities Analysing and measuring of the capability of key activitiesAnalysing and measuring of the capability of key activities Identifying the interfaces of key activities within and between Identifying the interfaces of key activities within and between

the functions of the organizationthe functions of the organization Focusing on the factors Focusing on the factors – – such as resources, methods, and such as resources, methods, and

materials –materials – that will improve key activities of the organizationthat will improve key activities of the organization Evaluating risks, consequences and impacts of activities on Evaluating risks, consequences and impacts of activities on

customers, supplierscustomers, suppliers and other interested parties and other interested parties

PRINCIPLE 4 PRINCIPLE 4 ––PROCESS APPROACHPROCESS APPROACH

15

PRINCIPLE 5 PRINCIPLE 5 –– SYSTEM APPROACH SYSTEM APPROACH TO MANAGEMENTTO MANAGEMENT

Identifying, understanding and managing interrelated processes Identifying, understanding and managing interrelated processes as a system contributes to the organization's effectiveness and as a system contributes to the organization's effectiveness and efficiency in achieving its objectives.efficiency in achieving its objectives.

Key benefitsKey benefits:: Integration and alignment of the processes that will best Integration and alignment of the processes that will best

achieve the desired resultsachieve the desired results Ability to focus effort on the key processesAbility to focus effort on the key processes Providing confidence to interested parties as to the Providing confidence to interested parties as to the

consistency, effectiveness and efficiency of the organizationconsistency, effectiveness and efficiency of the organization

16

Results of the applyingResults of the applying:: Structuring a system to achieve the organization's objectives Structuring a system to achieve the organization's objectives

in the most effective and efficient wayin the most effective and efficient way Understanding the interdependencies between the processes Understanding the interdependencies between the processes

of the systemof the system Structured approaches that harmonize and integrate Structured approaches that harmonize and integrate

processesprocesses Providing a better understanding of the roles and Providing a better understanding of the roles and

responsibilities necessary for achieving common objectives responsibilities necessary for achieving common objectives and thereby reducing cross-functional barriersand thereby reducing cross-functional barriers

Understanding organizational capabilities and establishing Understanding organizational capabilities and establishing resource constraints prior to actionresource constraints prior to action

Targeting and defining how specific activities within a system Targeting and defining how specific activities within a system should operateshould operate


17

Results of the applyingResults of the applying:: Continually improving the system through measurement and Continually improving the system through measurement and

evaluationevaluation


18

PRINCIPLE 6 PRINCIPLE 6 ––CONTINUAL IMPROVEMENTCONTINUAL IMPROVEMENT

Continual improvement of the organization's overall performance Continual improvement of the organization's overall performance should be a permanent objective of the organization.should be a permanent objective of the organization.

Key benefitsKey benefits:: Performance advantage through improved organizational Performance advantage through improved organizational

capabilitiescapabilities Alignment of improvement activities at all levels to an Alignment of improvement activities at all levels to an

organization's strategic intentorganization's strategic intent Flexibility to react quickly to opportunitiesFlexibility to react quickly to opportunities

19

Results of the applyingResults of the applying:: Employing a consistent organization-wide approach to Employing a consistent organization-wide approach to

continual improvement of the organization's performancecontinual improvement of the organization's performance Providing people with training in the methods and tools of Providing people with training in the methods and tools of

continual improvementcontinual improvement Making continual improvement of products, processes and Making continual improvement of products, processes and

systems an objective for every individual in the organizationsystems an objective for every individual in the organization Establishing goals to guide, and measures to track, continual Establishing goals to guide, and measures to track, continual

improvementimprovement Recognizing and acknowledging improvementsRecognizing and acknowledging improvements

PRINCIPLE 6 PRINCIPLE 6 ––CONTINUAL IMPROVEMENTCONTINUAL IMPROVEMENT

20

PRINCIPLE 7 PRINCIPLE 7 –– FACTUAL APPROACH FACTUAL APPROACH TO DECISION MAKINGTO DECISION MAKING

Effective decisions are based on the analysis of data and Effective decisions are based on the analysis of data and information.information.

Key benefitsKey benefits:: Informed decisionsInformed decisions An increased ability to demonstrate the effectiveness of past An increased ability to demonstrate the effectiveness of past

decisions through reference to factual recordsdecisions through reference to factual records Increased ability to review, challenge and change opinions Increased ability to review, challenge and change opinions

and decisionsand decisions

21

Results of the applyingResults of the applying:: Ensuring that data and information are sufficiently accurate Ensuring that data and information are sufficiently accurate

and reliableand reliable Making data accessible to those who need itMaking data accessible to those who need it Analysing data and information using valid methodsAnalysing data and information using valid methods Making decisions and taking action based on factual analysis, Making decisions and taking action based on factual analysis,

balanced with experience and intuitionbalanced with experience and intuition

PRINCIPLE 7 PRINCIPLE 7 –– FACTUAL APPROACH FACTUAL APPROACH TO DECISION MAKINGTO DECISION MAKING

22

PRINCIPLE 8 PRINCIPLE 8 –– MUTUALLY BENEFICIAL MUTUALLY BENEFICIAL SUPPLIER RELATIONSHIPSSUPPLIER RELATIONSHIPS

An organization and its suppliers are interdependent and a An organization and its suppliers are interdependent and a mutually beneficial relationship enhances the ability of both to mutually beneficial relationship enhances the ability of both to create value.create value.

Key benefitsKey benefits:: Increased ability to create value for both partiesIncreased ability to create value for both parties Flexibility and speed of joint responses to changing market or Flexibility and speed of joint responses to changing market or

customer needs and expectationscustomer needs and expectations Optimization of costs and resourcesOptimization of costs and resources

23

Results of the applyingResults of the applying:: Establishing relationships that balance short-term gains with Establishing relationships that balance short-term gains with

long-term considerationslong-term considerations Pooling of expertise and resources with partnersPooling of expertise and resources with partners Identifying and selecting key suppliersIdentifying and selecting key suppliers Clear and open communicationClear and open communication Sharing information and future plansSharing information and future plans Establishing joint development and improvement activitiesEstablishing joint development and improvement activities Inspiring, encouraging and recognizing improvements and Inspiring, encouraging and recognizing improvements and

achievements by suppliersachievements by suppliers

PRINCIPLE 8 PRINCIPLE 8 –– MUTUALLY BENEFICIAL MUTUALLY BENEFICIAL SUPPLIER RELATIONSHIPSSUPPLIER RELATIONSHIPS

24

ThThee International Standard promotes the adoption of a process International Standard promotes the adoption of a process approach when developing, implementing and improving the approach when developing, implementing and improving the effectiveness of a quality management system, to enhance effectiveness of a quality management system, to enhance customer satisfaction by meeting customer requirements.customer satisfaction by meeting customer requirements.

For an organization to function effectively, it has to determine and For an organization to function effectively, it has to determine and manage numerous linked activities. An activity or set of activities manage numerous linked activities. An activity or set of activities using resources, and managed in order to enable the using resources, and managed in order to enable the transformation of inputs into outputs, can be considered as a transformation of inputs into outputs, can be considered as a process. Often the output from one process directly forms the process. Often the output from one process directly forms the input to the next.input to the next.

PROCESS APPROACHPROCESS APPROACH

25

ISO 9000:2008 defines a "ISO 9000:2008 defines a "ProcessProcess" as set of interrelated or " as set of interrelated or interacting activities which transforms inputs into outputs.interacting activities which transforms inputs into outputs.Inputs to a process are generally outputs of other processes.Inputs to a process are generally outputs of other processes.Processes in an organization are generally planned and carried Processes in an organization are generally planned and carried out under controlled conditions to add value.out under controlled conditions to add value.Inputs and outputs are generally products that may be tangible Inputs and outputs are generally products that may be tangible and/or intangible.and/or intangible.Examples of inputs and outputs may include equipment, materials, Examples of inputs and outputs may include equipment, materials, components, energy, information and financial resources, among components, energy, information and financial resources, among others.others.To perform activities within the process appropriate resources To perform activities within the process appropriate resources have to be allocated.have to be allocated.A measurement system can be used to gather information and A measurement system can be used to gather information and data to analyse process performance and/or input and output data to analyse process performance and/or input and output characteristics.characteristics.

A PROCESSA PROCESS

26

SCHEMATIC REPRESENTATION SCHEMATIC REPRESENTATION OF A PROCESSOF A PROCESS

27

CHAIN OF INTERRELATED CHAIN OF INTERRELATED PROCESSESPROCESSES

28

The application of a system of processes within an organization, The application of a system of processes within an organization, together with the identification and interactions of these together with the identification and interactions of these processes, and their management to produce the desired processes, and their management to produce the desired outcome, can be referred to as the outcome, can be referred to as the ““process approachprocess approach””..

An advantage of the process approach is the ongoing control that An advantage of the process approach is the ongoing control that it provides over the linkage between the individual processes it provides over the linkage between the individual processes within the system of processes, as well as over their combination within the system of processes, as well as over their combination and interaction.and interaction.

PROCESS APPROACHPROCESS APPROACH

29

THE DEFENITIONSTHE DEFENITIONSA A business process (BP) business process (BP) consists of a set of activities that are consists of a set of activities that are performed in coordination in an organizational and technical performed in coordination in an organizational and technical environment. These activities jointly realize a business goal.environment. These activities jointly realize a business goal.

Each business process is enacted by a single organization, but it Each business process is enacted by a single organization, but it may interact with business processes performed by other may interact with business processes performed by other organizations.organizations.

Business process management Business process management (BPM) (BPM) includes concepts, includes concepts, methods, and techniques to support the design, administration, methods, and techniques to support the design, administration, configuration, enactment, and analysis of business processes.configuration, enactment, and analysis of business processes.

The basis of business process management is the explicit The basis of business process management is the explicit representation of business processes with their activities and the representation of business processes with their activities and the execution constraints between them. Once business processes execution constraints between them. Once business processes are defined, they can be subject to analysis, improvement, and are defined, they can be subject to analysis, improvement, and enactment.enactment.

30

THE DEFENITIONSTHE DEFENITIONSA A business process management system (BPMS) business process management system (BPMS) is a is a generic software system that is driven by explicit process generic software system that is driven by explicit process representations to coordinate the enactment of business representations to coordinate the enactment of business processes.processes.

A A business process model business process model consists of a set of activity models and consists of a set of activity models and execution constraints between them. A business process instance execution constraints between them. A business process instance represents a concrete case in the operational business of a represents a concrete case in the operational business of a company, consisting of activity instances. Each business process company, consisting of activity instances. Each business process model acts as a blueprint for a set of business process instances, model acts as a blueprint for a set of business process instances, and each activity model acts as a blueprint for a set of activity and each activity model acts as a blueprint for a set of activity instances.instances.

Business process models are the main artefacts for implementing Business process models are the main artefacts for implementing business processes. This implementation can be done by business processes. This implementation can be done by organizational rules and policies, but it can also be done by a organizational rules and policies, but it can also be done by a software system, using a business process management system.software system, using a business process management system.

31

MAIN CONECEPT OF BUSINESS MAIN CONECEPT OF BUSINESS PROCESS MANAGEMENTPROCESS MANAGEMENT

Business process management Business process management is based on the observation that is based on the observation that eacheach product that a company provides to the market is the product that a company provides to the market is the outcome of a number of activities performed.outcome of a number of activities performed.

Business processes are the key instrument Business processes are the key instrument to organizingto organizing these these activitiesactivities and and to improving the understanding of their to improving the understanding of their interrelationshipsinterrelationships because because each business process each business process is enacted is enacted by one organization, and that business processes by one organization, and that business processes cancan interact with each otherinteract with each other. .

32

Information technology in general and information systems in Information technology in general and information systems in particular deserve an important role in business process particular deserve an important role in business process management, because more and more activities that a company management, because more and more activities that a company performs are supported by information systems.performs are supported by information systems.

Business process activities can be performed by the company’s Business process activities can be performed by the company’s employees employees manuallymanually or by the or by the help of information systems help of information systems or can or can be enacted be enacted automatically by information systemsautomatically by information systems, without any , without any human involvement.human involvement.

A company can reach its business goals A company can reach its business goals in an efficient in an efficient and effective manner only and effective manner only if people and other enterprise if people and other enterprise resourcesresources, such as information systems, , such as information systems, play together play together wellwell. Business processes are an important concept to . Business processes are an important concept to facilitating this effective collaboration.facilitating this effective collaboration.

MAIN CONECEPT OF BUSINESS MAIN CONECEPT OF BUSINESS PROCESS MANAGEMENTPROCESS MANAGEMENT

33

Processes are specific to an organization and vary depending on Processes are specific to an organization and vary depending on the type, size and level of maturity of the organization. The the type, size and level of maturity of the organization. The activities within each process should be determined and adapted activities within each process should be determined and adapted to the size and distinctive features of the organization.to the size and distinctive features of the organization.

The organization should ensure the proactive management of all The organization should ensure the proactive management of all processes, including outsourced processes, to ensure that they processes, including outsourced processes, to ensure that they are effective and efficient, in order to achieve its objectives. This are effective and efficient, in order to achieve its objectives. This can be facilitated by adopting a “process approach” that includes can be facilitated by adopting a “process approach” that includes establishing processes, interdependencies, constraints and establishing processes, interdependencies, constraints and shared resources.shared resources.

Processes and their interrelationships should be reviewed on a Processes and their interrelationships should be reviewed on a regular basis regular basis and suitable actions should be taken for their and suitable actions should be taken for their improvement.improvement.

PROCESS MANAGEMENTPROCESS MANAGEMENT

34

The processes should be managed as a system The processes should be managed as a system by creating and by creating and understanding the networks of processes, their sequences and understanding the networks of processes, their sequences and interactions. The consistent operation of this system is often interactions. The consistent operation of this system is often referred to as the "systems approach to management". The referred to as the "systems approach to management". The network can be described in a map of the processes and their network can be described in a map of the processes and their interfaces.interfaces.

PROCESS MANAGEMENTPROCESS MANAGEMENT

35

The organization should determine and plan its processes and The organization should determine and plan its processes and define the functions that are necessary for providing products that define the functions that are necessary for providing products that can continue to meet the needs and expectations of customers can continue to meet the needs and expectations of customers and other interested parties, on an ongoing basis.and other interested parties, on an ongoing basis.Processes should be planned and controlled to be in accordance Processes should be planned and controlled to be in accordance with the organization's strategy and should address management with the organization's strategy and should address management activities, provision of resources, product realization, monitoring, activities, provision of resources, product realization, monitoring, measurement and reviewing activities.measurement and reviewing activities.

PROCESSPROCESSPLANNING & CONTROLPLANNING & CONTROL

36

In the planning and control of processes, consideration should be In the planning and control of processes, consideration should be given togiven to:: analyses of the organization's environmentanalyses of the organization's environment short-short- and long-term forecasts of market developmentsand long-term forecasts of market developments the needs and expectations of the interested partiesthe needs and expectations of the interested parties objectives to be achievedobjectives to be achieved statutory and regulatory requirementsstatutory and regulatory requirements potential financial and other riskspotential financial and other risks process inputs and outputsprocess inputs and outputs interactions with other processesinteractions with other processes resources and informationresources and information activities and methodsactivities and methods

PROCESS PLANNING & PROCESS PLANNING & CONTROLCONTROL

37

records that are required or desiredrecords that are required or desired measurement, monitoring and analysismeasurement, monitoring and analysis corrective and preventive actionscorrective and preventive actions improvement and/or innovation activitiesimprovement and/or innovation activities

Process planning should include consideration of the determined Process planning should include consideration of the determined needs for the organization to develop or acquire new needs for the organization to develop or acquire new technologies, or develop new products or product features, for technologies, or develop new products or product features, for added value.added value.

PROCESS PLANNING & PROCESS PLANNING & CONTROLCONTROL

38

For each process, the organization should appoint a process For each process, the organization should appoint a process manager manager (often referred to as the “(often referred to as the “process ownerprocess owner") with defined ") with defined responsibilities and authorities to establish, maintain, control and responsibilities and authorities to establish, maintain, control and improve the process and its interaction with other processes.improve the process and its interaction with other processes.The process manager could be a person or a team, depending on The process manager could be a person or a team, depending on the nature of the process and the organization's culture.the nature of the process and the organization's culture.

The organization should ensure that the responsibilities, The organization should ensure that the responsibilities, authorities and roles of process managers are recognized authorities and roles of process managers are recognized throughout the organization, and that the people associated with throughout the organization, and that the people associated with the individual processes have the competences needed for the the individual processes have the competences needed for the tasks and activities involved.tasks and activities involved.

PROCESS RESPONSIBILITY AND PROCESS RESPONSIBILITY AND AUTHORITYAUTHORITY

39

The adoption of a quality management system should beThe adoption of a quality management system should bea a strategic decisionstrategic decision of an organization. of an organization.

The design and implementation of an organization's quality The design and implementation of an organization's quality management system is influenced bymanagement system is influenced by:: its organizational environment, changes in that environment, its organizational environment, changes in that environment,

and the risks associated with that environmentand the risks associated with that environment its varying needsits varying needs its particular objectivesits particular objectives the products it providesthe products it provides the processes it employsthe processes it employs its size and organizational structureits size and organizational structure

THE PROCESS-BASED QUALITY THE PROCESS-BASED QUALITY MANAGEMENT SYSTEMMANAGEMENT SYSTEM

40

The organization shall establish, document, implement and The organization shall establish, document, implement and maintain a quality management system and continually improve its maintain a quality management system and continually improve its effectiveness in accordance with the requirements of the effectiveness in accordance with the requirements of the International Standard:International Standard: determine the processes needed for the quality management determine the processes needed for the quality management

system and their application throughout the organizationsystem and their application throughout the organization determine the sequence and interaction of these processesdetermine the sequence and interaction of these processes determine criteria and methods needed to ensure that both determine criteria and methods needed to ensure that both

the operation and control of these processes are effectivethe operation and control of these processes are effective ensure the availability of resources and information necessary ensure the availability of resources and information necessary

to support the operation and monitoring of these processesto support the operation and monitoring of these processes monitor, measure where applicable, and analyse these monitor, measure where applicable, and analyse these

processesprocesses


41

implement actions necessary to achieve planned results and implement actions necessary to achieve planned results and continual improvement of these processescontinual improvement of these processes..

These processes shall be managed by the organization in These processes shall be managed by the organization in accordance with the requirements of thaccordance with the requirements of thee International Standard. International Standard.

Where an organization chooses to outsource any process that Where an organization chooses to outsource any process that affects product conformity to requirements, the organization shall affects product conformity to requirements, the organization shall ensure control over such processes. The type and extent of ensure control over such processes. The type and extent of control to be applied to these outsourced processes shall be control to be applied to these outsourced processes shall be defined within the quality management system.defined within the quality management system.


42

CUSTOMER RELATIONSHIP CUSTOMER RELATIONSHIP MANAGEMENT (CRM)MANAGEMENT (CRM)

43

THE MODEL OF A PROCESS-BASED THE MODEL OF A PROCESS-BASED QUALITY MANAGEMENT SYSTEMQUALITY MANAGEMENT SYSTEM

http://i1.wp.com/http://i1.wp.com/

44

THE “PLAN-DO-CHECK-ACT” CYCLETHE “PLAN-DO-CHECK-ACT” CYCLE(THE DEMING WHEEL)(THE DEMING WHEEL)

http://ehs.unc.edu/http://ehs.unc.edu/

45

THE P-D-C-A METHODOLOGY ANDTHE P-D-C-A METHODOLOGY ANDTHE PROCESS APPROACHTHE PROCESS APPROACH

http://hci-itil.com/http://hci-itil.com/

46

EXTENDED MODEL OF A PROCESS-BASED EXTENDED MODEL OF A PROCESS-BASED QUALITY MANAGEMENT SYSTEMQUALITY MANAGEMENT SYSTEM

47

SCHEMATIC REPRESENTATIONSCHEMATIC REPRESENTATIONOF TYPICAL QUALITY MANAGEMENT OF TYPICAL QUALITY MANAGEMENT

SYSTEM PROCESSESSYSTEM PROCESSES

48

TYPICAL NETWORK OF TYPICAL NETWORK OF INTERACTING PROCESSESINTERACTING PROCESSES

49

A BUSINESS PROCESS A BUSINESS PROCESS LIFECYCLELIFECYCLE

50

DESIGN AND ANALYSISDESIGN AND ANALYSISThe business process lifecycle is entered in the The business process lifecycle is entered in the Design and Design and Analysis Analysis phase, in which surveys on the business processes and phase, in which surveys on the business processes and their organizational and technical environment are conducted. their organizational and technical environment are conducted. Based on these surveys, business processes are identified, Based on these surveys, business processes are identified, reviewed, validated, and represented by business process reviewed, validated, and represented by business process models.models.

51

CONFIGURATIONCONFIGURATIONOnce the business process model is designed and verified,Once the business process model is designed and verified, it it needs to be implementedneeds to be implemented::

by a set of policies and procedures that the employees of the by a set of policies and procedures that the employees of the enterprise need to comply withenterprise need to comply with without any support by a without any support by a dedicated business process management systemdedicated business process management system

by using by using a dedicated software systema dedicated software system

52

CONFIGURATIONCONFIGURATIONAAn implementation platform is chosen during the n implementation platform is chosen during the configurationconfiguration phase. The business process model is enhanced with technical phase. The business process model is enhanced with technical information that facilitates the enactment of the process by theinformation that facilitates the enactment of the process by the BPMSBPMS..The system needs to be configured according to the The system needs to be configured according to the organizational environment of the enterprise and the business organizational environment of the enterprise and the business processes whose enactment it should control. This configuration processes whose enactment it should control. This configuration includes the interactions of the employees with the system as well includes the interactions of the employees with the system as well as the integration of the existing software systems with the as the integration of the existing software systems with the BPMSBPMS..

53

CONFIGURATIONCONFIGURATIONOnce the system is configured, Once the system is configured, the implementation the implementation of the of the business process business process needs to be testedneeds to be tested. Traditional testing . Traditional testing techniques from the software engineering area are used at the techniques from the software engineering area are used at the level of process activities to check, for instance, whether a level of process activities to check, for instance, whether a software system exposes the expected behaviour.software system exposes the expected behaviour.At the process level, integration and performance tests are At the process level, integration and performance tests are important for detecting potential run time problems during the important for detecting potential run time problems during the configuration phase. After the test subphase is complete, the configuration phase. After the test subphase is complete, the system is deployed in its target environment.system is deployed in its target environment.Depending on the particular setting, Depending on the particular setting, additional activities might be additional activities might be required required (training of personnel and migration of application data to (training of personnel and migration of application data to the new realization platform).the new realization platform).

54

ENACTMENTENACTMENTAfterAfter the system configuration phase is completed, business the system configuration phase is completed, business process instances can be enacted. The process instances can be enacted. The process enactment process enactment phase phase encompasses the actual run time of the business process.encompasses the actual run time of the business process.The The BPMS BPMS actively controls the execution of business process actively controls the execution of business process instances as defined in the business process model. Process instances as defined in the business process model. Process enactment needs to cater to a correct process orchestration, enactment needs to cater to a correct process orchestration, guaranteeing that the process activities are performed according guaranteeing that the process activities are performed according to the execution constraints specified in the process model.to the execution constraints specified in the process model.Process monitoring Process monitoring by the BPMS by the BPMS is an important mechanism for is an important mechanism for providing accurate information on the status of business process providing accurate information on the status of business process instances.instances. Detailed information on the current state of process Detailed information on the current state of process instances are available in a BPMS.instances are available in a BPMS.

55

ENACTMENTENACTMENTDuring business process enactment, valuable execution data is During business process enactment, valuable execution data is gathered, typically in some form of log filegathered, typically in some form of log file or data base.or data base.These log information consists of ordered sets of log entries, These log information consists of ordered sets of log entries, indicating events that have occurred during business processes.indicating events that have occurred during business processes.Log information is the basis for evaluation of processes in the next Log information is the basis for evaluation of processes in the next phase of the business process lifecycle.phase of the business process lifecycle.

56

EVALUATIONEVALUATIONThe The evaluation evaluation phase uses information available to evaluate and phase uses information available to evaluate and improve business process models and their implementations. improve business process models and their implementations. Execution logs are evaluated using business activity monitoring Execution logs are evaluated using business activity monitoring and process mining techniques. These techniques aim at and process mining techniques. These techniques aim at identifying the quality of business process models and the identifying the quality of business process models and the adequacy of the execution environment.adequacy of the execution environment.

57

STAKEHOLDERSSTAKEHOLDERSThe The chief process officer chief process officer (at the top level management)(at the top level management) is is responsibleresponsible forfor:: standardizing and harmonizing business processes in the standardizing and harmonizing business processes in the

enterpriseenterprise evolution of business processes in the presence of changing evolution of business processes in the presence of changing

market requirements.market requirements.Business engineersBusiness engineers are business domain experts responsible for are business domain experts responsible for defining strategic goals of the company and organizational defining strategic goals of the company and organizational business processes.business processes.Process designers Process designers are responsible for modelling business are responsible for modelling business processes by communicating with business domain experts and processes by communicating with business domain experts and other stakeholders.other stakeholders.Process participants Process participants conduct the actual operational work during conduct the actual operational work during the enactment of business process instances.the enactment of business process instances.

58

STAKEHOLDERSSTAKEHOLDERSKnowledge workersKnowledge workers are process participants who use software are process participants who use software systems to perform activities in a business process. systems to perform activities in a business process. Each business process model is assigned an individual who is Each business process model is assigned an individual who is responsible for the correct and efficient execution of all business responsible for the correct and efficient execution of all business processes using this model – processes using this model – Process Process rresponsibleesponsible, , whowho detect detectss inefficiencies in the process and improvinefficiencies in the process and improveses it in close collaboration it in close collaboration with the process participants and the process designers.with the process participants and the process designers.System architects System architects are responsible for developing and configuring are responsible for developing and configuring BPMS BPMS so that the configured business process management so that the configured business process management system enacts the business processes in the context of the system enacts the business processes in the context of the information systems infrastructure at hand.information systems infrastructure at hand.Developers Developers are information technology professionals who create are information technology professionals who create software artefacts required to implement business processes.software artefacts required to implement business processes.

59

WORKFLOW MANAGEMENTWORKFLOW MANAGEMENTWorkflowWorkflow is the automation of a business process, in whole or in is the automation of a business process, in whole or in part, during which documents, information, or tasks are passed part, during which documents, information, or tasks are passed from one participant to another for action, according to a set of from one participant to another for action, according to a set of procedural rules.procedural rules.A A workflow management systemworkflow management system is a software system that is a software system that defines, creates, and manages the execution of workflows through defines, creates, and manages the execution of workflows through the use of software, running on one or more workflow engines, the use of software, running on one or more workflow engines, which is able to interpret the process definition, interact with which is able to interpret the process definition, interact with workflow participants, and, where required, invoke the use of IT workflow participants, and, where required, invoke the use of IT tools and applications.tools and applications. Workflow technology is capable of Workflow technology is capable of supporting business processes within a given application system supporting business processes within a given application system or between a set of application systems, effectively integrating or between a set of application systems, effectively integrating these systems. But workflow technology can also be used to enact these systems. But workflow technology can also be used to enact business processes in which humans are actively involved, thus business processes in which humans are actively involved, thus improving the collaboration between knowledge workers.improving the collaboration between knowledge workers.

60

BUSINESS WORKFLOW DIAGRAMBUSINESS WORKFLOW DIAGRAM

http://www.conceptdraw.com/http://www.conceptdraw.com/

61

WORKFLOW MANAGEMENTWORKFLOW MANAGEMENTA A system workflowsystem workflow consists of activities that are implemented by consists of activities that are implemented by software systems without any user involvement.software systems without any user involvement. Workflows in which humans are actively involved and interact with Workflows in which humans are actively involved and interact with information systems are called information systems are called human interaction workflowshuman interaction workflows..

62

CIRCULAR FLOWCIRCULAR FLOW(ECONIMIC THEORY)(ECONIMIC THEORY)

63

SUPPLY CHAIN MANAGEMENT (SCM)SUPPLY CHAIN MANAGEMENT (SCM)FROM RAW MATERIALS TO CONSUMERFROM RAW MATERIALS TO CONSUMER

http://image.slidesharecdn.com/http://image.slidesharecdn.com/

64

SCHEME OF VALUE CREATIONSCHEME OF VALUE CREATIONBY A BUSINESS PROCESSBY A BUSINESS PROCESS

65

SCHEME OF VALUE CREATIONSCHEME OF VALUE CREATIONBY A NET OF BUSINESS PROCESSESBY A NET OF BUSINESS PROCESSES

66

BUSINESS PROCESS MODELLINGBUSINESS PROCESS MODELLING

http://www.sigmagroup.ca/http://www.sigmagroup.ca/

67

REENGINEERING OF BUSINESS REENGINEERING OF BUSINESS PROCESSESPROCESSES

1 business process management. 2 relationship an organization with customers

Documents