Q 492. As per Business Process Management (BPM) literature, there are 5 stages in a process lifecycle - Design, Model, Execute, Monitor and Optimize. Elaborate the key characteristics of each phase. Which Lean Six Sigma tools can be used across these 5 stages? 

 

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1. Design Phase- Review As is condition , Discuss Desire outcome with Management- We can use VOC, SIPOC,COQ and COPQ analysis from define phase as Lean Six Sigma Tools.

2. Model- Identifying and defining future process(To be process) as representation to all stakeholders. We can use VSM,SWIM lane diagrams, PFDs can be uses

3. Execute- Pilot Execution and validation, open for all users, Engineering study plan,  

4. Monitor- Establish KPIs for performance check, Various statistical tools like Statistical process control, Control Chart  can be used as statistical tools

5. Optimize- Redesign the business processes and improve process efficiency.

 

Six Sigma can be used first to improve process and after that we can use Business process management to automate and improving cross functional colaboration. We can deploy statistical analysis and disciplined approach of six sigma to resolve issues and BPM measures can be used to monitor performance of business processes . We can apply BPM as the methodology to link improvement and process design directly with management strategy.

Business Process Management or BPM involves combining design, automation, execution, control, measurement & optimization of business activity flows which are in line with the business goals & it encompasses systems, employees, customers & partners within & beyond the enterprise boundaries.

 

BPM becomes rather more important as every organization follows a flow of business activities which are done in order to complete a business transaction. The effectiveness of these activities have a direct or indirect impact on the organizational goals.

 

BPM lifecycle consists of 5 important stages i.e. Design, Model, Execute, Monitor, Optimize through which an organization can standardize the process of implementing & managing its business processes. Let us now understand the key characteristics of each stage:-

 

Design :

 

This stage involves analyzing & understanding how the process is carried out in the present which is generally done by interviewing all relevant stakeholders, by examining the existing workflows so as to understand the underlying business rules & also by observing the process while it is being executed. This helps in answering key aspects from a high-level process perspective like:-

• What is the starting point of the process?
• What is the process sequence?
• What is the end result that a process is meant to achieve?
• What kind of tasks are there in the process? 
• Who are the owners of the various tasks in the process?
• How long does it takes to complete the process?
• How the integration of various systems exists?

 

From an Lean Six Sigma perspective, we can leverage tools like SIPOC to map out the high level process & also use Stakeholder mapping as well as ARMI  in order to map out the key stakeholders & also to understand the role of these stakeholders in the process.

 

Model :

 

This stage provides a visual representation of the various phases of the process. This involves understanding in detail how the process is working at present i.e. AS-IS process & how the process will look like in the future i.e. To-Be Process. Once the revised design is created it will be socialized with all the relevant stakeholders for their perusal & approval. Also adjustments are made in the future state design basis the feedback that is received from the stakeholders.

 

Here we can leverage Level-3 Process Maps (Swim-lane) in order to map out both the AS-IS & TO-BE states of the process.

 

Execute :

 

This stage involves testing the newly validated process model by carrying out the activities as per the newly designed process in order to see its behaviour. It is generally done by carrying out the new process multiple times within a closed group in order to ensure that the new process is effective & also to quickly act on issues if they appear before going for a full scale implementation.

 

We can leverage Hypothesis Testing in order to statistically validate whether there is a significant difference in the various performance parameters between the AS-IS & TO-BE process. This will give a clear picture in terms of the effectiveness of the new process.

 

Monitor :

 

Post implementation of the process, the business process is carried out in an operational environment & data pertaining to critical activities is collected in order to see how these critical activities are performing over time. Collecting data will help in developing the KPIs through which the effectiveness of the new process can be monitored.

 

We can use Data collection plan to collect the relevant data & then use Control Charts in order to assess whether the process is under statistical control or not & accordingly take corrective action in case of any deviation.

 

Optimize :

 

During this final phase, the final insights that have been gained during the monitor phase will be leveraged to further improve the process & make the process more efficient by removing bottlenecks. This will help the organization to identify potential improvement opportunities by identifying the bottlenecks in the process & thus focussing the improvement efforts towards optimizing that constraint.

 

TOC or Theory of Constraints will help in this case to identify the bottleneck or the constraint & then work on optimizing the same. 

 BPM stands for Business Process Management, which is a discipline deployed by organisations to establish, execute & optimise business processes.

 

The 5 stages within BPM lifecycle are given below, along with key characteristics and compatible LSS tools.

Business process management (BPM) is a discipline that encompasses all aspects of designing, automating, carrying out, controlling, measuring, and optimising business activity flows in support of organisational objectives, personnel, clients, and partners both inside and outside the enterprise.

 

Business process management (BPM) is a tool used by organisations to create, oversee, and improve business processes. It entails evaluating every process individually and taking into account its function across the entire organisation.

 

Deadlines are missed, customers are not satisfied, and so forth, when processes are ineffective and not optimised. One of the key elements of BPM is the routine optimization of processes with the intention of doing as much as is practical. A process step might be eliminated, or the entire thing could be rewritten from beginning to end.

 

The BPM lifecycle is useful in this situation.

 

BPM Life Cycle

 

A number of cyclical stages known as the BPM lifecycle are used to standardise how business processes are implemented and managed within a company. It is divided into five stages: design, modelling, execution, monitoring, and optimization.

 

The repeated series of staged actions that make up the BPM lifecycle set it apart. This suggests that the business process management life cycle can continue after the final step is finished rather than having to be stopped.

 

The five steps of the BPM lifecycle are design, model, execute, monitor, and optimise. It is fundamental to the field of business process management and gives us a plan for methodically and consistently enhancing business operations.

 

 

Each organization's business operations provide its foundation. Businesses must step back, assess, and analyse each of their processes individually in order to determine viability. To achieve optimal performance, it is necessary to pinpoint problem areas and put improvements or alterations into place.

 

i) Design

 

The first stage of the lifecycle is "design," where we start by thoroughly examining how the process is currently carried out. All parties can be interviewed for this, documents can be studied, the business rules can be understood, and, if practical, it can be observed in operation.

 

The following will be necessary to grasp the process's overall high-level picture:

 

How is the procedure started?

How does the process progress?

What is the outcome?

Understanding the accountability of each activity

More system Integration

How much time does it take to finish?

What other kinds of tasks are there?

 

In this circumstance, a mock-up form is also helpful because it makes data collection and presentation easier. Once the form has gathered and shown the necessary data, it may be routed via the review-and-approval workflow.

 

ii) Model

 

"Model" is the second stage of the lifecycle. The goal of process modelling is to provide the stages of the process a visual representation. You must first comprehend how things are right now (as-is) and how you want them to be in the future (to-be) with improvements in order to increase the process framework's efficiency.

 

All pertinent stakeholders should get the revised design for review and approval. Stakeholder buy-in and input are essential at this level in order to alter or improve.

 

At this point, you have the freedom to use your imagination and make significant changes to the way the process should be carried out.

 

iii) Execute

 

The "execute" stage, which is the third in the BPM lifecycle, is when the new model is tested in order to implement the new process and observe it in operation.

 

Even though the process can still be completed manually when numerous human interventions are necessary, it is strongly advised that you take advantage of the opportunity to start automating your business processes to run much more effectively.

 

You should take the process through several iterations with a smaller group before making it live to a bigger audience to make sure everything is running properly and that any issues have been fixed.

 

iv) Monitor

 

In the fourth step of the BPM lifecycle, "monitor," data is collected to look at how your important activities are changing over time when business processes are executed.

 

Data gathering will allow us to create key performance indicators (KPIs) that will show how the newly adopted process has helped the organisation and identify bottlenecks, delays, or potential errors.

 

v) Optimize

 

"Optimize" is the fifth and last stage of the lifecycle. You will work to streamline the process and eliminate bottlenecks in this phase of the process to increase efficiency based on the insights gathered during the monitoring phase.

 

With a robust monitoring system in place, you can push operations toward optimization and process improvement.

 

Stakeholder Selection

 

A stakeholder is a person who has a direct or indirect interest in the result of the process and has influence over it. Participants in the process, the management group, process owners, process analysts, and system engineers are examples of stakeholders.

 

Identification and support of all stakeholders at the early stages of the lifecycle are essential to maximising the overall efficacy of the business process life cycle.

 

Conclusion

 

Businesses must make sure that all of their business processes are functioning well and that the outcome is given quickly. Organizations could use the BPM methodology and have smoothly operating processes by understanding the BPM lifecycle. Business processes should be assessed and reviewed as the company expands so they can be changed or further optimised.

Rohit Chaudhary has given the best answer to this question. Highlighted the purpose of each phase along with the tools that can be utilized in the phase.