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Yves Caseau – Business Process Enterprise Model - 2012 1/13
Operations Research for Managing Business Operations Research for Managing Business Processes Communication and Performance Processes Communication and Performance
BPEM : Business Process Enterprise ModelBPEM : Business Process Enterprise Model
ICORESFebruary 2012
Yves CaseauBouygues Telecom – Bouygues’s eLab
National French Academy of Technologies
Yves Caseau – Business Process Enterprise Model - 2012 2/13
MotivationsMotivations
« Traditional » ICORES Crisp, well-defined models corresponding to a clear issue Sophisticated optimization techniques that bring value (compared to human judgment)
« Enterprise as a System » optimization Cumbersome and coarse models, multiple issues Simple optimization/simulation methods Part of management sciences, a tradition of models & simulation
Why ? Structural issues (in addition to cultural, political, human …)
How Enterprise modeling with operational semantics “As simple as possible but no simpler”
White box model Complex system approach (rich interaction of various concerns)
Cf. “Garbage-can model” of decisionIll-defined problemHuman > computer
Cf. Vehicle Routing problemsComputer > human
Not a « personal fiction » !
Not a toy !
Yves Caseau – Business Process Enterprise Model - 2012 3/13
OutlineOutline
Motivations Operations Research for Management Science
First PartEnterprise Models & Business Processes
Second PartBPEM: Business Process Enterprise ModelFour Dimensions of Enterprise Modeling
Third PartApplications – Two Examples
Conclusion
Yves Caseau – Business Process Enterprise Model - 2012 4/13
Enterprise ModelsEnterprise ModelsPar
t 1:
Mot
ivat
ions
Res
sourc
es
CEISAR BAPO (ESAPS) IDEAS
CPP (Club Pilotes Processus) Altime MODAF
Business Organization
Architecture
Process
Activity Activity Activityprocess
Manual/assisted/automated
value
Organization/ Actors
Informationobjectives Units/roles
Enterprise Entity
Capability Role
ServicesProcess
Strategy /goals
Information System
Business Process
Action Plan
Innove / adjust / optimize
Results:-Satisfaction- value- risk
Managing processes
Support process
Functions
Business processes
Business processes
Business processes
envi
ronm
ent
cust
omer
s
Logical Capability
project
delta
data function
Activity
Information
system
Organization resource
skills
Strategy/vision
TasksEnterprise
IT
Yves Caseau – Business Process Enterprise Model - 2012 5/13
BPEM at a glanceBPEM at a glancePar
t 1:
Mot
ivat
ions
Leadership Process KPI
people
Policy & Strategy
Partnership & resources
Leadership
Customer results
Societyresults
Innovation & Learning
enablers results
Left out (long term)
Perimeter of BPEM
Information Flows
activity activity
Envi
ronm
ent
Management
ControlCoordination
customerProduction Factors
Products / services
transfer
synchronization manage Enterprise macro-model (Mintzberg) Executable (operational semantics) Focus on Business Process & Communication
What BPEM is and isn’t, based on EFQM Focus on structure Short-term vision of enterprise operations
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BPEM : Enterprise ModelBPEM : Enterprise ModelPar
t 2:
BPEM
H
T
Communication Matrix
C1 C2 Cn…
Information System ITBus
ines
s Pro
cess
es
Market
Requests
delivery
Man
agem
ent
Capabilities
Functional mapping
Four dimensions: Business Processes, associated with customer requests, represent enterprise operations Processes require time and consume resources, value creation depends on SLA (quality is expressed as timeliness) Organization is the combination of hierarchy (top-down mapping of capabilities) and project/process management Information flows derive from processes (signal & content)
BPEM
Yves Caseau – Business Process Enterprise Model - 2012 7/13
BPEM Organization Model BPEM Organization Model Par
t 2:
BPEM
T
U1
…
Hie
rarc
hic
alM
anag
emen
t
U2
U3 …
U4
U Un
-1
Un
Pro
cess
(T
ransv
erse
)M
anag
emen
t
Functional mapping
C1C2 Cn …
Capabilities
R1(l1,l2, .. , lq)
Set of Ressources
Activity
R2(l1,l2, .. , lq)
Rp(l1,l2, .. , lq)
WBSΣ(skill, level, units)
Hierarchy : tree structure (organizational chart) Transverse : set of coordination resources Communication throughput is measured with man.hour
Functional units are described through capabilities
man.hours
skill levels
Supports specialization (one unit = one capability) as well as polyvalence
Yves Caseau – Business Process Enterprise Model - 2012 8/13
BPEM : Business Process ModelBPEM : Business Process Model
Business Process Patterns (sequence of activities with skill requirements) Business Process Instances (Actual load + value + SLA ) Stochastic Load Generation
Cover multiple scenarios (burst, overload, …) Events:
Re-priorization based on value change Activity duration changes
Par
t 2:
BPEM A1:C1
Σ(skill,level)
A2 An
Process pattern
StochasticRequestModel1
Process Instance
valu
e
time
WBSΣ(units)
WBSΣ(units)
WBSΣ(units)
Variation in rate & load
request
VVm
in
max
SLA (Service Level Agreement)
Time is the only dimension for quality =better skills means faster execution
Yves Caseau – Business Process Enterprise Model - 2012 9/13
BPEM : Communication ModelBPEM : Communication ModelPar
t 2:
BPEM
H
T
Man
agem
ent
Process
Monitoring & Management
Transfer & Synchronize
WBSΣ(units)
WBSΣ(units)
WBSΣ(units)
Environment
Event: Value
Variation
Event : production variation
Business processes operations entail 3 types of information flows:
Inter-activity (ignored)
Transfer & synchronization between consecutive activities
Monitoring & Management between units and T&H
BPEM information flows: valued in man.hour
generated from BP measures, using simple ratios
BPEM semantics = scheduling :Communication flows are broken into communication units
Precedence constraints represent: (a) BP orchestration (b) event management
Yves Caseau – Business Process Enterprise Model - 2012 10/13
Optimizing the use of communication channelsOptimizing the use of communication channels
Application of BPEM to study the impact of communication channels on performance
Four categories of communication channels “Communication Channel Model”
Characteristics Policies
Par
t 3:
App
lica
tion
s
CommunicationChannelModel
BPEMResults(value)
Learning(optimization)
Activities to be assigned to resources
Channel PoliciesCommunication flow
units to be scheduled
Scheduler
Receivers
Organization
Rules/ Culture
InformationFlows
Meetings
Face-to-Face
Electronic – Synchronous
Electronic – Asynchronous
• Randomization (Monte-Carlo)• Evolutionary algorithms (learning): local opt, genetic algorithm
Channel Performance Characteristics:Throughput, Latency, Loss, Scheduling constraints
Yves Caseau – Business Process Enterprise Model - 2012 11/13
Simulation of Information FlowsSimulation of Information Flows
Goals – How to ? Best use of multiple / new communication channels ? Study the resilience of organization w.r.t. load distribution and bursts Look at Organizational Architecture issues (e.g., flat hierarchies)
Organization shapes communication channels (e.g., meetings) Simulation – Preliminary results
BPEM simulation produces value, usage ratios, lead time statistics Effectiveness of email Importance of Affiliation Network
Structure (MSN 2012 paper) Organizational design impacts
information flows Next Steps
Full compliance with BPEM What-if scenarios New 2.0 communication tools
Par
t 3:
App
lica
tion
sLeverage their specificity• synchronous/ asynchronous• Face-to-face vs electronic• Ease of sharing (1-to-N)• immersive vs. multitasking• etc.
Yves Caseau – Business Process Enterprise Model - 2012 12/13
Understanding lean management of processesUnderstanding lean management of processes
Two scenarios
Par
t 3:
App
lica
tion
s
Experimental verification of Taiichi Ohno’s insight : a « tight system » is more robust
Lean systems are more flexible Economic rationalization (cost of lowering
utilization rate) depends on CoD (Cost of Delay)
Strict
SLA – 60% utili
zationBPEM « lean »
SchedulingPolicies
Scheduler
BPEM « reg »
Sam
e Bus
ines
s Pr
oces
ses
Loose SLA, 80% utilization
Yves Caseau – Business Process Enterprise Model - 2012 13/13
ConclusionsConclusions
We need Enterprise Models Use OR for Management science Other applications : Information System BPEM is compatible with most conceptual models
We need computational Enterprise Models Complex issues : simulation as an investigation tool Structural issues are only one of the dimensions, but it is critical and
amenable to analysis though simulation
Managing Information Flows is a key part of management science
An old idea (March & Simon) A modern idea (Enterprise 2.0 & information overload) Communication requires time:
scheduling & structure matters
Yves CASEAU