Business Process Modeling, Simulation and Design

ISBN-10: 1439885257

ISBN-13: 9781439885253

Edition: 2nd 2013 (Revised)

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Description:

The second edition of this popular text looks at business process design from a broad quantitative modeling perspective and addresses various managerial issues. It gives students a thorough understanding of the wide range of tools available for modeling, analyzing, and designing business processes. This edition includes new material on change management, project management, task analysis, and performance optimization. It also adds details on the theory of constraints and completely revises coverage of business process modeling and simulation as well as using the software tool ExtendSim LT, which is available for download.
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Book details

Edition: 2nd
Copyright year: 2013
Publisher: Taylor & Francis Group
Publication date: 4/25/2013
Binding: Hardcover
Pages: 523
Size: 7.00" wide x 10.00" long x 1.00" tall
Weight: 2.596
Language: English

Preface
Introduction to Business Process Design
What Is a Business Process?
Process Types and Hierarchies
Determinants of the Process Architecture
Inputs and Outputs
Flow Units
Network of Activities and Buffers
Resources
Information Structure
Workflow Management Systems
Essence of Business Process Design
Incremental Process Improvement and Process Design
Illustrative Example
Business Process Design, Overall Business Performance, and Strategy
Business Process Design and Overall Business Performance
Business Process Design and Strategy
Why Do Inefficient and Ineffective Business Processes Exist?
Summary
Discussion Questions and Exercises
References
Process Management and Process-Oriented Improvement Programs
Process Management and the Power of Adopting a Process View
Phase I: Initialization
Process Ownership
Analyzing Process Boundaries and Interfaces
Phase II: Definition
Phase III: Control
Establishing Control Points
Developing and Implementing Measurements
Feedback and Control
Illustrative Example: Managing a Document Distribution Process
Assign Process Ownership
Analyze Boundaries and Interfaces
Define the Process
Establish Control Points
Develop and Implement Measures
Perform Feedback and Control
Summary and Final Remarks
Six Sigma Quality Programs
Six Sigma Definitions
Six Sigma Cost and Revenue Rationale
Cost or Efficiency Rationale
Revenue or Effectiveness Rationale
Six Sigma in Product and Process Design
Six Sigma Framework
Top-Management Commitment
Stakeholder Involvement
Training
Measurement System
Improvement Methodology
Concluding Remarks: Key Reasons for the Success of Six Sigma
Business Process Reengineering
Reengineering and Its Relationship with Other Earlier Programs
Brief History of Reengineering
When Should a Process Be Reengineered?
What Should Be Reengineered?
Dysfunction
Importance
Feasibility
Suggested Reengineering Frameworks
Revolutionary versus Evolutionary Change
Summary
Discussion Questions and Exercises
References
Framework for Business Process-Design Projects
Step 1: Case for Action and Vision Statements
Step 2: Process Identification and Selection
Step 3: Obtaining Management Commitment
Step 4: Evaluation of Design Enablers
Example: Internet-Enabling Change at Chase Manhattan Bank
Example: New Technology as a Change Enabler in the Grocery Industry
Step 5: Acquiring Process Understanding
Understanding the Existing Process
Understanding the Customer
Step 6: Creative Process Design
Benchmarking
Design Principles
Step 7: Process Modeling and Simulation
Step 8: Implementation of the New Process Design
Summary
Discussion Questions and Exercises
References
Basic Tools for Process Design
Process Flow Analysis
General Process Charts
Process Flow Diagrams
Process Activity Charts
Flowcharts
Service System Maps
Workflow Design Principles and Tools
Establish a Product Orientation in the Process
Eliminate Buffers
Establish One-at-a-Time Processing
Balance the Flow to the Bottleneck
Minimize Sequential Processing and Handoffs
Establish an Efficient System for Processing of Work
Minimize Multiple Paths through Operations
Additional Diagramming Tools
From Theory to Practice: Designing an Order-Picking Process
Summary
Discussion Questions and Exercises
References
Managing Process Flows
Business Processes and Flows
Throughput Rate
Work-in-Process
Cycle Time
Little's Law
Cycle Time and Capacity Analysis
Cycle Time Analysis
Rework
Multiple Paths
Parallel Activities
Capacity Analysis
Rework
Multiple Paths
Parallel Activities
Managing Cycle Time and Capacity
Cycle Time Reduction
Increasing Process Capacity
Theory of Constraints
Drum-Buffer-Rope Systems
Summary
Discussion Questions and Exercises
References
Introduction to Queuing Modeling
The Basic Queuing Process, Queuing Systems, and Queuing Strategies
The Basic Queuing Process
Calling Population
Arrival Process
Queue Configuration
Queue Discipline
Service Mechanism
Strategies for Mitigating the Effects of Long Queues
Analytical Queuing Models
The Exponential Distribution and Its Role in Queuing Theory
The Exponential Distribution, The Poisson Distribution, and The Poisson Process
Terminology, Notation, and Little's Law Revisited
Birth-and-Death Processes
The M/M/1 Model
The M/M/c Model
The M/M/c/K Model
The M/M/∞/N Model
Queuing Theory and Process Design
Determining WC
Determining SC
Decision Model for Designing Queuing Systems
Summary
Mathematical Derivations and Models with Generally Distributed Service Times
Discussion Questions and Exercises
References
Introduction to Simulation
Simulation Models
Discrete-Event Simulation
Getting Started in Simulation Modeling
Illustrative Example
Spreadsheet Simulation of a Process
Successful Simulation in Practice
When Not to Simulate
Summary
Discussion Questions and Exercises
References
Modeling and Simulating Business Processes with ExtendSim
Developing a Simulation Model: Principles and Concepts
Model Verification
Model Validation
ExtendSim Elements
ExtendSim Tutorial: A Basic Queuing Model
Basic Data Collection and Statistical Analysis
Adding Randomness to Processing Times and the Use of Attributes
Adding a Second Underwriting Team
Modeling Resources and Resource Pools
Customizing the Animation
Calculating Activity-Based Costs
Cycle Time Analysis
Modeling Advanced Queuing Features
Blocking
Balking
Reneging
Priorities and Priority Queues
Modeling Routing in Multiple Paths and Parallel Paths
Multiple Paths
Parallel Paths
Model Documentation and Enhancements
Summary
Discussion Questions and Exercises
References
Input and Output Data Analysis
Dealing with Randomness
Characterizing Probability Distributions of Field Data
Goodness-of-Fit Tests
Using Stat::Fit for Distribution Fitting
Choosing a Distribution in the Absence of Sample Data
Random Number Generators
Runs Test
Generation of Random Variates
Analysis of Simulation Output Data
Nonterminating Processes
Terminating Processes
Confidence Intervals
Confidence Interval for a Population Mean
Sample Size Calculation
Comparing Output Variables for Different Process Designs
Modeling and Analysis of Process-Design Cases
Process Design of a Call Center for Software Support
Modeling, Analysis, and Recommendations
Design of a Hospital Admissions Process
Summary
Training Cases
Case 1: Improving the X-Ray Process at County Hospital
Case 2: Process Modeling and Analysis in an Assembly Factory
Case 3: Redesign of a Credit Applications Process
Case 4: Redesigning the Adoption Process in a Humane Society
Case 5: Performance Analysis and Improvement of an Internet Ordering Process
Hypothesis Testing, Confidence Intervals, and Statistical Tables
Exercises
References
Optimizing Business Process Performance
Business Process Optimization
Role of Simulation-Optimization in Business Process Management
Simulation-Optimization with ExtendSim
Tutorial: Process Optimization with ExtendSim
Alternative Optimization Models
Optimization of Process Simulation Models
Configuring a Hospital Emergency Room Process
Staffing Levels for a Personal Insurance Claims Process
Summary
Evolutionary Computation
References
Business Process Analytics
Competing on Analytics
Business Process Management Systems
Business Rules
Data Mining
Monitor and Control
Process Mining
Process Benchmarking
Graphical Analysis of the Ratio Model
Efficiency Calculation
Linear Programming Formulation of the Ratio Model
Learning from Best-Practice Organizations
Final Thoughts
Excel� Add-In for Data Envelopment Analysis
Discussion Questions and Exercises
References
Appendix: Instructions for Downloading ExtendSim Demo or LT
Index
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