Review Topics

1
Review Topics

• Process Discovery
• Process Optimization
• Process Analysis

2
Process Discovery

• Discovering the vision, mission, and strategy of
  the organization
• Discovering the major processes of an
  organization
• Discovering the sequence of activities in a
  process
• Discovering the structure of the organization
• Discovering the application of technology to
  automate the process

3
Process Discovery (Contd.)

• A process is work performed on, or in response
  to, incoming data or control flow or conditions.

A System is a Process
4
Process Discovery (Contd.)

• Decomposition is the act of breaking a system
  into its component subsystems, processes, and
  sub-processes
• A decomposition diagram shows the top-down
  functional decomposition of a system

• Each process in the diagram is either a child, a
  parent, or both
• A parent must have 2 or more children
• Generally, a child may have one parent
• A child may have its own children

5
Process Discovery (Contd.)

• Logical processes are work or actions that must
  be performed no matter how you implement the
  system
• There are three types of logical processes
• Function is set an ongoing activities of business
  with no start and end, e.g. quality management,
  inventory control. Functions are named with nouns
  that describe the entire function
• Events is a unit of work that must be completed
  as a whole. Is triggered by an input and is
  completed when the process has responded with
  appropriate outputs. Events are also called
  transactions..
• Elementary Processes are detailed activities or
  tasks that are required to complete the response
  to an event. They are the lowest level of detail
  in a process model. A common synonym is
  primitive process

6
Process Discovery (Contd.)

• Discovering the sequence of activities in a
  process can be carried out using conventional
  fact-finding or information gathering techniques,
  e.g. interviewing, JAD etc.
• Identifying activities
• Identifying dependencies (mandatory,
  discretionary, external)
• Sequencing activities using network diagramming
  tools such as PDM, AON, GERT
• Discovering the sequence of activities in a
  process can also be carried out using data mining
  techniques

7
Process Optimization (Step Optimization)
A7
Role 4
A3
A5
Role 3
A4
A2
A6
Role 2
Role 1
8
Process Optimization (Step Optimization)
9
Process Analysis

• Assign probabilities to control connectors
• Simulate the process using the probabilities
  assigned to activities and control connectors
• Process path probability
• Determine activity duration
• Determine resource
• Determine cost
• Optimize the process

10
Process Analysis - Instrumenting a Process
Assess Risk
Accept Credit
Collect Credit Information
30
50
80
70
50
20
Reject Credit
Request Approval
11
Process Analysis Path Probability
Assess Risk
Accept Credit
Collect Credit Information
30
50
80
70
50
20
56
Reject Cresit
Request Approval
12
Process Analysis Path Probability
Assess Risk
Accept Credit
Collect Credit Information
30
50
80
70
50
20
15
Reject Credit
Request Approval
13
Process Analysis Path Probability
Assess Risk
Accept Credit
Collect Credit Information
30
50
80
70
50
20
14
Reject Credit
Request Approval
14
Process Analysis Path Probability
Assess Risk
Accept Credit
Collect Credit Information
30
50
80
70
50
20
14
Reject Credit
Request Approval
15
Process Analysis Path Probability
Assess Risk
Accept Credit
Collect Credit Information
30
50
80
70
50
20
14
Reject Credit
Request Approval
16
Process Analysis Path Probability
17
Process Analysis Time Determination
18
Process Analysis Time Determination
19
Process Analysis Activity Frequency
20
Process Analysis Time Per Role
Using a 40 hour work week, we need seven loan
officers and seven financial officers to perform
1000 weekly processes
21
Process Analysis Activity Costs
_at_ 36/hr. rate for the loan officer, and 54 for a
financial officer, the cost of a single process
is 25.20 for personnel
22
Process Analysis Optimizing a Process

• More than half of the cost is associated with the
  approval done by the financial officer
• If cost reduction is one of he objective,
  reducing the approval activity could be a
  starting point
• We could reduce the traffic on the Approval route
  by increasing the traffic on the Assess Risk
  route
• We could do that by increasing the threshold on
  Risk Assessment activity.