PMIS Course Part 4 – Business Process Management

University of Tehran, Project Management Information System (PMIS), Dr. Sasan Hosseyni, xwir@yahoo.com, 2018 1
University of Tehran
College of Engineering
School of Industrial Engineering
“Master of Science in Engineering” Program
Project Management Information System
PART 4 – Business Process Management
2018 Fall Semester
Dr. Sasan Hosseyni
XWIR@yahoo.com

Outlines:
• PART 1 Definitions (IS, PMBOK, PMIS)
• PART 2 PMIS in Practice
• PART 3 Earned Value Management
• PART 4 Business Process Management
• PART 5 Enterprise Resource Planning
• PART 6 Enterprise Architecture (for a Project Based Org.)
• PART 7 Implementation Methodologies
• PART 8 Organizational Change Management
• PART 9 Implementation Critical Success Factors
• PART 10 Academic Researches

Eras in the history of business and management concepts

1769, James Watt
Steam Engine
1776, Adam Smith
Division of Labor
1790, Whitney
Interchangeable Parts

1913, Ford
Moving Assembly Line
1911, Taylor
Scientific Management
1911, Gilbert
Time & Motion Studies
1912, Gantt
Scheduling Chart

1970s, Taiichi Ohno
JIT
1980s, Deming
TQM
1990s, Hammer
BPR
1990s, GE, Motorola
Six Sigma

1776
Adam Smith
Division of Labor
1990s
Hammer
BPR
1913
Ford
Moving Assembly Line
Division
1
Division
2
Division
3
Process 1
Process 2
Department
1
Department
2
Department
3
1
1.2 1.3 1.4
1.1

Input Throughput
Operations
Output of
Goods and
Services
Standards for
Goods and
Services
M
A
T
C
H
Efficiency
Effectiveness
Productivity
BPM

Business Process?
o Raw Material
o HR, Hardware, Software
o Q&Q Constraints
o EEF, OPA
o Tools and Techniques
o VOC
o Product
o Service
o Result
o Performance
o Lesson Learned
• Process: A series of actions or steps taken in order to produce a result
• Business process: Is a series of repeatable steps performed by stakeholders with a
definite goal
Business
Process
BPM

Process 1
Process
2
Activity 1 Activity 2
Output of
Process 1
------------
Input for
Process2
Input
S E
Has a:
 Goal
 Value
 Owner
Limit
Resource 1 Resource 2 Resource 3
Step
Step
Tools & Techniques
Trigger
Role 1
Role 2
Step
Step
BPM

Process Hierarchy
A hierarchical decomposition from core business processes to the task level. The number
of levels in a hierarchy is determined by the breadth and size of the organization.
• Process Area
• Process Group
• Main Process
• Process
• Sub-Process
o Activity
o Task
BPM

.
Each department is an empire!
Gap between the decision-making level and
the operation level
Unclear responsibilities and accountabilities
Data is isolated in separated information
systems
Department
1
Department
2
Department
3
Functionally Structured Organization
Focus on:
Doing the works within processes
Doing the tasks timely
Removing overlaps between responsibilities
Creating value for customer
Customer satisfaction
Using Integrated information systems
Process 1
Process 2
Process-focused Organization
BPM

Business Process Management
BPM Is a discipline in operations
management in which people use
various methods to discover, model,
analyze, measure, improve, optimize,
and automate business processes.
BPM focuses on improving corporate
performance by managing business
processes. Any combination of methods
used to manage a company's business
processes is BPM.
Design
Design
Modeling
Modeling
Execution
Execution
Monitoring
Monitoring
Optimization
Optimization
BPM Life-Cycle
BPM

Example: Michael Porter's value chain
Strategy Analysis, Business Analysis, Michael Porter's VC, PMBOK, BABOK,
ISO 9001, IATF, APQC, BSC, …
How we can extract the list of processes?
BPM

Business Process Modeling
Sample: BPMN, Flowchart, Swim Lane, EPC, Value chain, UML, IDEF, LOVEM-E,
SIPOC, System Dynamics, Value Stream Mapping, …
BPM is the activity of representing processes of an enterprise and typically will be
performed by business analysts.
BPM

Business Process Management Maturity Models
BPM

Documentation Pyramid Concept
Policy, WHY (stated once):
What will be done?
Procedures, Who, When, Where
How project will be executed and controlled? who will be responsible?
Work instructions or Practices, How
Steps of work, how project works will be executed and controlled?
Records of Proofs, Evidence
Data, checklists, supporting documents (to accept deliverable)
Control
History
Control
Documents
PROCESSES
BPM

Business Process Management System/Suite
Is a software tool used to improve an organization's business processes through the
definition, automation, and analysis of business processes.
integrify.com
BPM

BPM
EAI
CASE
ERP
UML
Workflow
management
Rules
engines
Java
B2Bi
webservices Act. Based costing
ISO9001
Balanced Scorecards
Cont. process
improvement
TQM
Value
Chain
Kaizen
Six Sigma
A new software category that supports the entire lifecycle of modeling,
executing, and monitoring business processes
Business Process Management System/Suite
SYSTEM BUSINESS

TQM
BPR
Monitoring
& Control
Information
Technology
Strategy
& Policy
People &
Culture
BI / BAM
Ravesteyn, 2006
BPM

WFM
Monitoring
& Control
Information
Technology
Strategy
& Policy
People &
Culture
BP
Modeling EAI
Ravesteyn, 2006
BPM

BPMS
WFM
TQM
BPR
Monitoring
& Control
Information
Technology
Strategy
& Policy
People &
Culture
BP
Modeling
BI / BAM
EAI
Ravesteyn, 2006
BPM

BPM
Ravesteyn, 2006
Databases
Back
end

Systems
Layer
Self -Generating Integration
SAP using
java
API
Web
Service
API
Excel using
com
API
MSMQ using
com or java
API
Databases using
jdbc
API
Business
Rules
Layer
Production
Business Level
Objects
Business Level Objects
Invoices
Business Level
Objects
AFE’s
Business Level
Objects
Anything
Business Level
Objects
Process
Layer
Any Process
General Workflow System and User Interactions
Calculation
Interface
Layer
Web
Service
Presentation Presentation
XML
API
Back
end

Systems
Layer
SAP using
java
API
SAP using
java
API
Web
Service
API
Web
Service
API
Excel using
com
API
Excel using
com
API
MSMQ using
com or java
API
MSMQ using
com or java
API
Databases using
jdbc
API
Databases using
jdbc
API
Business
Rules
Layer
Production
Business Level
Objects
Invoices
Business Level
Objects
AFE’s
Business Level
Objects
Anything
Business Level
Objects
Process
Layer
Any Process
Calculation
Interface
Layer
Web
Service
Presentation
Presentation
XML
API
XML
API
BPMS
TQM
General Workflow
BPR
BPM
time
ERP
WFM
EAI
‘85 ‘90 ‘95 ‘05
‘00
‘98
Databases
Databases
Back
end

Systems
Layer
SAP using
java
API
Web
Service
API
Excel using
com
API
MSMQ using
com or java
API
Databases using
jdbc
API
Business
Rules
Layer
Production
Business Level
Objects
Invoices
Business Level
Objects
AFE’s
Business Level
Objects
Anything
Business Level
Objects
Process
Layer
Any Process
Calculation
Interface
Layer
Web
Service
XML
API
Back
end

Systems
Layer
SAP using
java
API
SAP using
java
API
Web
Service
API
Web
Service
API
Excel using
com
API
Excel using
com
API
MSMQ using
com or java
API
MSMQ using
com or java
API
Databases using
jdbc
API
Databases using
jdbc
API
Business
Rules
Layer
Production
Business Level
Objects
Invoices
Business Level
Objects
AFE’s
Business Level
Objects
Anything
Business Level
Objects
Process
Layer
Any Process
Calculation
Interface
Layer
Web
Service
Presentation
Presentation
XML
API
XML
API
BPMS
Back
end

Systems
Layer
SAP using
java
API
Web
Service
API
Excel using
com
API
MSMQ using
com or java
API
Databases using
jdbc
API
Business
Rules
Layer
Production
Business Level
Objects
Invoices
Business Level
Objects
AFE’s
Business Level
Objects
Anything
Business Level
Objects
Process
Layer
Any Process
Calculation
Interface
Layer
Web
Service
XML
API
Back
end

Systems
Layer
SAP using
java
API
SAP using
java
API
Web
Service
API
Web
Service
API
Excel using
com
API
Excel using
com
API
MSMQ using
com or java
API
MSMQ using
com or java
API
Databases using
jdbc
API
Databases using
jdbc
API
Business
Rules
Layer
Production
Business Level
Objects
Invoices
Business Level
Objects
AFE’s
Business Level
Objects
Anything
Business Level
Objects
Process
Layer
Any Process
Calculation
Interface
Layer
Web
Service
Presentation
Presentation
XML
API
XML
API
BPMS
TQM
TQM
General Workflow
BPR General Workflow
BPR
BPM
BPM
BPM
time
ERP
ERP
EAI
EAI
‘85 ‘90 ‘95 ‘05
‘00
‘98

BPM INT

Initiator
Document
Library
Workflow
Task List
. . . . . .
. . . . . .
. . . . . .
1. Add Doc 2. Add Task
Work Flow: Automation of BP, which Doc, Info., or task are passes from one participate to
another for action according to a set of procedural rules
BPM INT
Human Workflow

Initiator
Participants
Document
Library
Workflow
Task List
. . . . . .
. . . . . .
. . . . . .
3. Check Task
(Browser or Email)
BPM INT
Human Workflow

Initiator
Participants
Document
Library
Workflow
Task List
. . . . . .
. . . . . .
. . . . . .
3. Check Task
(Browser or Email)
4. Review
documents
5. Approve
OR Reject
BPM INT
Human Workflow

Initiator
Participants
Document
Library
Workflow
Task List
. . . . . .
. . . . . .
. . . . . .
3. Check Task
(Browser or Email)
4. Review
documents
5. Approve
OR Reject
Interact with WF directly from Office apps Define Forms Using InfoPath
Customizable pre-defined WFs Search Capabilities, …
Microsoft SharePoint Server (Separately Licensed)
Microsoft SharePoint Foundation
SharePoint Designer (Rule-based Approach)
Visual Studio
• Parallel OR Sequentially?
• Change a particular WF
• Adding another Person
SharePoint Sites
SharePoint as a core: for Team collaboration, Portal, Integration, BI, Content Management
BPM INT Microsoft

Initiator
Participants
Document
Library
Workflow
Task List
. . . . . .
. . . . . .
. . . . . .
3. Check Task
(Browser or Email)
4. Review
documents
5. Approve
OR Reject
Unifier UDesigner, OBPM
Development: J2EE, WSDL
Oracle
BPM INT
Human Workflow

Initiator
Participants
Document
Library
Workflow
Task List
. . . . . .
. . . . . .
. . . . . .
3. Check Task
(Browser or Email)
4. Review
documents
5. Approve
OR Reject
SAP Business workplace
Development: SAP ABAP, J2EE
SAP Object
(e.g. Docs in DMS)
SAP workflow
BPM INT SAP
Human Workflow

Adapters
Initiator
Participants
Document
Library
Workflow
Task List
. . . . . .
. . . . . .
. . . . . .
6. Check Task
(Browser or Email)
7. Review
documents
8. Approve
OR Reject
Sites
Visual Studio-hosted tools AND
Orchestration Designer for BA
BizTalk Server
Orchestration
Planning
Application
Procurement
Application
1. Material
Requisition
2. Request
PO
3. Return
PO
PNMsoft
RuleBurst
BizTalk Server BRE
If … Then ….
If … Then ….
If … Then ….
4. Add Doc
BPM INT Microsoft
System + Human Workflow

Initiator
Participants
Document
Library
Workflow
Task List
. . . . . .
. . . . . .
. . . . . .
6. Check Task
(Browser or Email)
7. Review
documents
8. Approve
OR Reject
Planning
Application
Procurement
Application
1. Material
Requisition
2. Request
PO
3. Return
PO
If … Then ….
If … Then ….
If … Then ….
4. Add Doc
Gateway for P6 EPPM
XML Web Services for Unifier
Primavera
Products + …
Unifier UDesigner
Unifier (Business Process)
Oracle
BPM INT

Initiator
Participants
Document
Library
Workflow
Task List
. . . . . .
. . . . . .
. . . . . .
6. Check Task
(Browser or Email)
7. Review
documents
8. Approve
OR Reject
Planning
Application
Procurement
Application
1. Material
Requisition
2. Request
PO
3. Return
PO
If … Then ….
If … Then ….
If … Then ….
4. Add Doc
SAP
Modules
e.g. PS & MM
BPM INT SAP
Solution Manager 7.2
SAP Workflow
SAP Net Weaver, PI

INT
Postmodernism!
Either approach (Microsoft OR Oracle OR SAP OR, ….) IS WRONG!
thebusinesstherapist.com

Enterprise
Application
Integration
(EAI)
Enterprise
Resource
Planning
(ERP)
Vs
INT

Enterprise Application Integration (EAI)
EAI is the framework that's often used to allow different types of software
to communicate. For example, if you had two separate pieces of software,
one for accounting and the other for order processing, you can allow the
two to communicate using an EAI configuration.
Enterprise Resource Planning (ERP)
This is software that is used to automate your business processes with a
view to becoming more efficient and more profitable. Common ERPs include
Microsoft DynamicsNAV/AX, Epicor, SAP, Netsuite etc.
In short, EAI automates the communication between different types of
software, ERP automates key business processes.
INT

Comparison of ERP and EAI (Edin, 2009)
INT

Different Perspective on Comparison of ERP and EAI (Lee, Siau and Hong, 2003)
INT

Oracle
P6
SAP Process
Integration (PI)
Oracle Gateway
(Inspire)
SAP
PS
Oracle
Microsoft
SAP
Standard Files (e.g. CSV)
Software, Enhancement
Database (Triggers), SDK
XML Web Services, API, …
Example
INT

Remember this advice!
CA
Schedule
Cost
Quality
Team
Communication
Risk
Procurement
etc.
If you want to integrate different systems in a project-based company,
make sure that the project WBS (at least to the control accounts (CA) level)
is already addressed in all of them!
INT
Updated

PMIS Course Part 4 – Business Process Management

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