Professional Documents
Culture Documents
1 - Intro To BPD
1 - Intro To BPD
Introduction to BPD
Professor Stephen Lawrence
Leeds School of Business
University of Colorado Boulder
Course Outline
Business Process Design
I. Business Process Design Principles
II. Queueing and Simulation Analysis
III. Application of Business Process Design
Inputs
Process
Outputs
Inputs
Process
Outputs
Process
Suppliers
Inputs
Outputs
Customers
Operations
Accounting
Buying a TV
commercial
Order Request
Individual process
Production planning
Vertical process
Order Fulfilled
Horizontal process
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Difficult to coordinate
Have not kept up with improvements in manufacturing
Difficult to detect waste and inefficiencies
Often as little as 5% of the time considered adding customer value
Customers more likely to abandon business because of poor
service than poor products
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Flow units
Information structure
Process
Architecture
Resources
The network of
activities and buffers
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Flow units
A flow unit is a transient entity or a job that proceeds through the network
of activities and buffers and exits the process as a finished output
Typically, the identity of a flow unit changes across the process
Examples of common flow units: materials, orders, files, documents,
customers, products, cash, transactions
Flow rate The number of jobs flowing through the process per time unit
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Process Complexity
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Information structure
Specifies the information required for making decisions and
performing activities in a process
Limited information availability is a common cause for process
inefficiencies
Information enables coordination!
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IBM Example
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Improvement
Incremental
Improvement
Radical
Improvement
Statistical
Process
Control
Time
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Under the existing process the client may have to wait 1-2
weeks before being able to replace the damaged auto glass
Goal A radical overhaul and improvement of the process
to shorten the client waiting time
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Example 1
Give instructions
File claim
Local
independent
agent
Forward
claim
Claims
processing
center
Request quote
Provide quote
Pay
Approved
glass
vendor
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Example 1
4.
5.
Client notifies a local agent that she wishes to file a claim. She is given a claims
form and is told to obtain a cost estimate from a local glass vendor.
When the claims form is completed the local agent verifies the information and
forwards the claim to a regional processing center.
The processing center logs the date and time of the claims arrival. The data is
entered into a computer-based system (for record keeping only) by a clerk. The
claim is then placed in a hard copy file and passed on to a claims representative.
a) If the claims representative is satisfied with the claim it is passed along to
several others in the processing chain and eventually a check is issued and sent
to the client.
b) If there are problems with the claim the representative mails it back to the
client for necessary corrections.
When the client receives the check she can go to the local glass vendor and
replace the glass.
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Example 1
Call in claim
Client
Claims
processing
center
Notify
Schedule repair
Pay
Approved
glass
vendor
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Example 1
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Example 1
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Example 1
As opposed to 10 days
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Non-profit organizations
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Strategic fit
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Activity Classification
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Non-Value Adding
Handof
Delay
Rework
Business Value Adding
Control
Policy compliance
Activity
Non-Value Adding
Handof
Delay
Rework
Control
Policy compliance
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