Business Process Modeling, Simulation and Design

Business Process Modeling, Simulation and Design

by Manuel Laguna, Johan Marklund
Released August 2011
Publisher(s): Pearson
ISBN: 9789353067052

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Book description

This book covers the design of business processes from a broad quantitative modeling perspective. The text presents a multitude of analytical tools that can be used to model, analyze, understand and ultimately, to design business processes. The range of topics in this text include graphical flowcharting tools, deterministic models for cycle time analysis and capacity decisions, analytical queuing methods, as well as the use of Data Envelopment Analysis (DEA) for benchmarking purposes. And a major portion of the book is devoted to simulation modeling using a state of the art discrete-event simulation package.

Table of contents

  1. Cover
  2. Title Page
  3. Contents
  4. Preface
  5. chapter 1 Introduction to Business Process Design
    1. 1.1 What Is a Business Process?
      1. 1.1.1 Process Types and Hierarchies
      2. 1.1.2 Determinants of the Process Architecture
      3. 1.1.3 Workflow Management Systems
    2. 1.2 The Essence of Business Process Design
      1. 1.2.1 Incremental Process Improvement and Process Design
      2. 1.2.2 An Illustrative Example
    3. 1.3 Business Process Design, Overall Business Performance, and Strategy
    4. 1.4 Why Do Inefficient and Ineffective Business Processes Exist?
    5. 1.5 Summary
    6. 1.6 References
    7. 1.7 Discussion Questions and Exercises
  6. chapter 2 Process Management and Process-Oriented Improvement Programs
    1. 2.1 Process Management and the Power of Adopting a Process View
      1. 2.1.1 Phase I: Initialization
      2. 2.1.2 Phase II: Definition
      3. 2.1.3 Phase III: Control
      4. 2.1.4 An Illustrative Example: Managing a Document Distribution Process
    2. 2.2 Six Sigma Quality Programs
      1. 2.2.1 Six Sigma Definitions
      2. 2.2.2 The Six Sigma Cost and Revenue Rationale
      3. 2.2.3 Six Sigma in Product and Process Design
      4. 2.2.4 The Six Sigma Framework
      5. 2.2.5 Concluding Remarks: Key Reasons for the Success of Six Sigma
    3. 2.3 Business Process Reengineering
      1. 2.3.1 Reengineering and Its Relationship with Other Earlier Programs
      2. 2.3.2 A Brief History of Reengineering
      3. 2.3.3 When Should a Process Be Reengineered?
      4. 2.3.4 What Should Be Reengineered?
      5. 2.3.5 Suggested Reengineering Frameworks
    4. 2.4 Revolutionary Versus Evolutionary Change
    5. 2.5 Summary
    6. 2.6 References
    7. 2.7 Discussion Questions and Exercises
  7. chapter 3 A Simulation-Based Framework for Business Processes Design Projects
    1. 3.1 Step 1: Case for Action and Vision Statements
    2. 3.2 Step 2: Process Identification and Selection
    3. 3.3 Step 3: Obtaining Management Commitment
    4. 3.4 Step 4: Evaluation of Design Enablers
      1. 3.4.1 Example: The Internet-Enabling Change at Chase Manhattan Bank
      2. 3.4.2 Example: New Technology as a Change Enabler in the Grocery Industry
    5. 3.5 Step 5: Acquiring Process Understanding
      1. 3.5.1 Understanding the Existing Process
      2. 3.5.2 Understanding the Customer
    6. 3.6 Step 6: Creative Process Design
      1. 3.6.1 Benchmarking
      2. 3.6.2 Design Principles
    7. 3.7 Step 7: Process Modeling and Simulation
    8. 3.8 Step 8: Implementation of the New Process Design
    9. 3.9 Summary
    10. 3.10 References
    11. 3.11 Discussion Questions and Exercises
  8. chapter 4 Basic Tools for Process Design
    1. 4.1 Process Flow Analysis
      1. 4.1.1 General Process Charts
      2. 4.1.2 Process Flow Diagrams
      3. 4.1.3 Process Activity Charts
      4. 4.1.4 Flowcharts
      5. 4.1.5 Service System Mapping
    2. 4.2 Workflow Design Principles and Tools
      1. 4.2.1 Establish a Product Orientation in the Process
      2. 4.2.2 Eliminate Buffers
      3. 4.2.3 Establish One-at-a-Time Processing
      4. 4.2.4 Balance the Flow to the Bottleneck
      5. 4.2.5 Minimize Sequential Processing and Handoffs
      6. 4.2.6 Establish an Efficient System for Processing Work
      7. 4.2.7 Minimize Multiple Paths Through Operations
    3. 4.3 Additional Diagramming Tools
    4. 4.4 From Theory to Practice: Designing an Order-Picking Process
    5. 4.5 Summary
    6. 4.6 References
    7. 4.7 Discussion Questions and Exercises
  9. chapter 5 Managing Process Flows
    1. 5.1 Business Processes and Flows
      1. 5.1.1 Throughput Rate
      2. 5.1.2 Work-in-Process
      3. 5.1.3 Cycle Time
      4. 5.1.4 Little’s Law
    2. 5.2 Cycle Time and Capacity Analysis
      1. 5.2.1 Cycle Time Analysis
      2. 5.2.2 Capacity Analysis
    3. 5.3 Managing Cycle Time and Capacity
      1. 5.3.1 Cycle Time Reduction
      2. 5.3.2 Increasing Process Capacity
    4. 5.4 Theory of Constraints
    5. 5.5 Summary
    6. 5.6 References
    7. 5.7 Discussion Questions and Exercises
  10. chapter 6 Introduction to Queuing and Simulation
    1. 6.1 Queuing Systems, the Basic Queuing Process, and Queuing Strategies
      1. 6.1.1 The Basic Queuing Process
      2. 6.1.2 Strategies for Mitigating the Effects of Long Queues
    2. 6.2 Analytical Queuing Models
      1. 6.2.1 The Exponential Distribution and Its Role in Queuing Theory
      2. 6.2.2 Terminology, Notation, and Little’s Law Revisited
      3. 6.2.3 Birth and Death Processes
      4. 6.2.4 The M/M/l Model
      5. 6.2.5 The M/M/c Model
      6. 6.2.6 The M/M/c/K Model
      7. 6.2.7 The M/M/c/8/N Model
      8. 6.2.8 Queuing Theory and Process Design
    3. 6.3 Introduction to Simulation
      1. 6.3.1 Simulation Models
      2. 6.3.2 Discrete Event Simulation
      3. 6.3.3 Spreadsheet Simulation of a Single-Server Process
    4. 6.4 Summary
    5. 6.5 References
    6. 6.6 Discussion Questions and Exercises
  11. chapter 7 Introduction to Extend
    1. 7.1 Extend Elements
    2. 7.2 Extend Tutorial: Basic Queuing Model
    3. 7.3 Basic Data Collection and Statistical Analysis
    4. 7.4 Adding Randomness to Processing Times
    5. 7.5 Adding a Second Underwriting Team
    6. 7.6 Adding a Labor Pool
    7. 7.7 Customizing the Animation
    8. 7.8 Calculating Costs and Using the Flowchart View
    9. 7.9 Summary
    10. 7.10 References
    11. 7.11 Discussion Questions and Exercises
  12. chapter 8 Modeling and Simulating Business Processes
    1. 8.1 General Modeling Concepts
    2. 8.2 Items and Values
      1. 8.2.1 Generating Items
      2. 8.2.2 Assigning Attributes to Items
      3. 8.2.3 Prioritizing Items
    3. 8.3 Queuing
      1. 8.3.1 Blocking
      2. 8.3.2 Balking
      3. 8.3.3 Reneging
      4. 8.3.4 Priority Queues
    4. 8.4 Routing
      1. 8.4.1 Multiple Paths
      2. 8.4.2 Parallel Paths
    5. 8.5 Processing Time
    6. 8.6 Batching
    7. 8.7 Resources
    8. 8.8 Activity-Based Costing
    9. 8.9 Cycle Time Analysis
    10. 8.10 Model Documentation and Enhancements
    11. 8.11 Process Design Case: Software Support
      1. 8.11.1 Modeling, Analysis, and Recommendations
    12. 8.12 Process Design Case: Hospital Admissions
    13. 8.13 Summary
    14. 8.14 References
    15. 8.15 Discussion Questions and Exercises
    16. 8.16 Modeling, Simulation, and Design Projects
  13. chapter 9 Input and Output Data Analysis
    1. 9.1 Dealing with Randomness
    2. 9.2 Characterizing the Probability Distribution of Field Data
      1. 9.2.1 Goodness-of-Fit Tests
      2. 9.2.2 Using Stat::Fit to Fit a Distribution
      3. 9.2.3 Choosing a Distribution in the Absence of Sample Data
    3. 9.3 Random Number Generators
      1. 9.3.1 The Runs Test
    4. 9.4 Generation of Random Variates
    5. 9.5 Analysis of Simulation Output Data
      1. 9.5.1 Nonterminating Processes
      2. 9.5.2 Terminating Processes
      3. 9.5.3 Confidence Intervals
      4. 9.5.4 Sample Size Calculation
      5. 9.5.5 Hypothesis Testing
    6. 9.6 Summary
    7. 9.7 References
    8. 9.8 Exercises
  14. chapter 10 Optimizing Business Process Performance
    1. 10.1 Introduction to Optimization by Evolutionary Computation
    2. 10.2 Optimizing Processes
    3. 10.3 Process Optimization Tutorial
    4. 10.4 Alternative Optimization Models
    5. 10.5 Summary
    6. 10.6 References
    7. 10.7 Process Modeling and Simulation Projects
      1. 10.7.1 Staffing a Process with Multiple Job Types
      2. 10.7.2 Loan Applications
  15. chapter 11 Process Benchmarking with Data Envelopment Analysis
    1. 11.1 Graphical Analysis of the Ratio Model
      1. 11.1.1 Efficiency Calculation
    2. 11.2 Linear Programming Formulation of the Ratio Model
    3. 11.3 Excel Add-in for Data Envelopment Analysis
    4. 11.4 DEA in Practice
    5. 11.5 Summary
    6. 11.6 References
    7. 11.7 Discussion Questions and Exercises
  16. Appendix
  17. Index
  18. Copyright

Product information

  • Title: Business Process Modeling, Simulation and Design
  • Author(s): Manuel Laguna, Johan Marklund
  • Release date: August 2011
  • Publisher(s): Pearson
  • ISBN: 9789353067052