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

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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

Yves Caseau – Business Process Enterprise Model - 2012 6/13

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

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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

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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

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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

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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.

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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