Sunday, November 8, 2009

Business process optimization - ultimate goal of automation


Business process optimization is the ultimate goal of automation of business processes, which ensures efficient utilization of resources in converting input into desired quality of output time and again.
Manufacturing process optimization is more popular and successful. As with manufacturing processes, the optimization of business processes depends on how well the process can be controlled in response to the changes in the operating environment, which in turn depends on whether the right parameters get measured, which again depends upon how well a process is understood. Many computer based business process modelling techniques have been developed, which along with advances in networking and communication facilitate capturing of sufficient data and thorough analysis to respond dynamically to the fluctuations in the process environment. But analysis and results thereof are only as good as the data that is fed into the system. It all boils down to process measures.
Good measurement means reliable and valid data. Reliability is error free data or in other words quality data. Validity means right data – measuring the right thing, which has a definite correlation with the output being targeted.
Ability to control a process comes from the knowledge of interdependencies and how measured variables influence the output. Control is all about making adjustments in the process flow to ensure cost efficient utilization of resources.
Optimizing a business process takes much more than controlling a process, due to complex relationship between various parameters being measured and their impact on the output, which requires many quality parameters to be optimised simultaneously. This calls for creating complex mathematical and logical modelling of the business processes to better understand the interdependencies. Such models are designed to work on real time data from the process and make necessary adjustments in various process parameters in real time to ensure that available resources are optimally aligned with the current workload and desired output.
Business process optimization results in optimised costs through elimination of waiting times and reducing cycle times, improving throughput and balancing peak load – efficient utilization of resources.
Most popular way of optimizing business processes is through adopting an iterative process, also called experimental optimization. Inputs from the process experts contribute in a major way in and challenge is to incorporate their experience in the model. Mathematically this amounts to adjusting coefficients in an equation representing the process.
Initially BPM implementations typically implemented workflow automation with in departments, but today as part of BPM implementation, organizations implement process optimization for processes crossing the functional boundaries to ensure maximum efficiency. Process optimization can best be described as a five step cycle – Analyse, Identify, Simulate, Validate and Deploy.
Analyse: analysis provides insights to how a process is running.
Identify: analysis provides clues on aligning resources in a cost efficient manner by monitoring performance trends.
Simulate: enables an off-line “what if” analysis of various potential changes to achieve intended optimization levels.
Validate: check the simulated results with intended results before actually enforcing the changes in real time business process.
Deploy: affect the changes in the business process and the cycle starts afresh.
This allows process modifications to be made without interruptions and by minimizing the risk of generating abnormalities in the process. Typical benefits of business process optimization are:
  • Achieve higher level of throughput
  • Consistent quality of the output
  • Optimal utilization of resources

2 comments:

  1. This sounds to be an interesting way of doing process simulation, will definitely try this next time I map processes for simulation.

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  2. Yes giving a very nice idea thanks for sharing this post.Business Process Optimization

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